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Safe Bulkers, Inc. Reports Second Quarter and First Six Months 2014 Results and Declares Quarterly Dividend on Common Stock

ATHENS, GREECE -- (Marketwired) -- 07/29/14 -- Safe Bulkers, Inc. (the "Company") (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the three- and six- month period ended June 30, 2014. The Board of Directors of the Company also declared a quarterly dividend of $0.06 per share of common stock for the second quarter of 2014.

Summary of Second Quarter 2014 Results

  • Net revenues for the second quarter of 2014 decreased by 10% to $37.2 million from $41.4 million during the same period in 2013.
  • Net income for the second quarter of 2014 decreased by 91% to $2.1 million from $24.6 million, during the same period in 2013. Adjusted net income(1) for the second quarter of 2014 decreased by 79% to $3.2 million from $15.1million, during the same period in 2013.
  • EBITDA(2) for the second quarter of 2014 decreased by 58% to $15.1 million from $36.1 million during the same period in 2013. Adjusted EBITDA(1) for the second quarter of 2014 decreased by 39% to $16.3 million from $26.6 million during the same period in 2013.
  • Earnings per share ("EPS") and Adjusted EPS(1) for the second quarter of 2014 of $0.01 and $0.02 respectively, calculated on a weighted average number of shares of 83,444,365, compared to $0.32 and $0.19 in the second quarter 2013, calculated on a weighted average number of shares of 76,679,328.
  • The Board of Directors of the Company declared a dividend of $0.06 per common share for the second quarter of 2014.

Summary of Six Months Ended June 30, 2014 Results

  • Net revenues for the first six months of 2014 decreased by 8% to $78.5 million from $85.7 million during the same period in 2013.
  • Net income for the first six months of 2014 decreased by 67% to $13.3 million from $40.6 million. Adjusted net income(1) for the first six months of 2014 decreased by 62% to $11.8 million from $31.0 million, during the same period in 2013.
  • EBITDA(2) for the first six months of 2014 decreased by 39% to $38.9 million from $63.6 million during the same period in 2013. Adjusted EBITDA(1) for the first six months of 2014 decreased by 31% to $37.4 million from $54.0 million during the same period in 2013.
  • EPS and Adjusted EPS(1) for the first six months of 2014 of $0.13 and $0.11, respectively, calculated on a weighted average number of shares of 83,442,759, compared to $0.53 and $0.40 for the same period in 2013, calculated on a weighted average number of shares of 76,676,422.

Public Offering of Series C and Series D Preferred Shares

In May 2014, the Company concluded its previously announced public offering of 2,300,000 shares of its 8.00% Series C Cumulative Redeemable Perpetual Preferred Shares, par value $0.01 per share, liquidation preference $25.00 per share (the "Series C Preferred Shares") at a price of $25.00 per share, which included 300,000 shares sold pursuant to the full exercise of the underwriters' overallotment option. The aggregate gross proceeds from this public offering, before the underwriting discount and other offering expenses, were $57,500,000.

In June 2014, the Company concluded its previously announced public offering of 3,200,000 shares of its 8.00% Series D Cumulative Redeemable Perpetual Preferred Shares, par value $0.01 per share, liquidation preference $25.00 per share (the "Series D Preferred Shares") at a price of $25.00 per share, which included 400,000 shares sold pursuant to the partial exercise of the underwriters' overallotment option. The aggregate gross proceeds from this public offering, before the underwriting discount and other offering expenses, were $80,000,000.

The Series C and Series D Preferred Shares are traded on the New York Stock Exchange under the ticker symbol SB.PR.C and SB.PR.D, respectively.

In July 2014, the Company declared a cash dividend of $0.50 per share on its 8.00% Series B Preferred Shares for the period from April 30, 2014 to July 29, 2014 and a cash dividend of $0.46667 per share on its 8.00% Series C Preferred Shares for the period from May 7, 2014 to July 29, 2014. Each dividend will be paid on July 30, 2014 to all shareholders of record as of July 25, 2014 of the Series B Preferred Shares and Series C Preferred Shares, respectively. This is the fifth consecutive cash dividend declared on the Company's Series B Preferred Shares and the first cash dividend declared on its Series C Preferred Shares, since their respective commencement of trading on the New York Stock Exchange.

The Company has 1,600,000 Series B Preferred Shares, 2,300,000 Series C Preferred Shares and 3,200,000 Series D Preferred Shares outstanding as of today.

Fleet and Employment Profile

As of July 28, 2014, the Company's operational fleet comprised of 31 drybulk vessels with an average age of 5.6 years and an aggregate carrying capacity of 2.9 million dwt. The fleet consists of 10 Panamax class vessels, 7 Kamsarmax class vessels, 11 Post- Panamax class vessels and 3 Capesize class vessels, all built 2003 onwards. As of July 28, 2014, the Company had contracted to acquire 13 new eco-design newbuild vessels, comprised of 6 Japanese Panamax class vessels, 3 Japanese Post-Panamax class vessels, 2 Japanese Kamsarmax class vessels and 2 Chinese Kamsarmax class vessels. Upon delivery of all of our newbuilds, assuming we do not acquire any additional vessels or dispose of any of our vessels, our fleet will comprise of 44 vessels, 15 of which will be new eco-design vessels, having an aggregate carrying capacity of 3.9 million dwt and average age of 6.1 years.

Set out below is a table showing the Company's existing vessels and their contracted employment as of July 28, 2014:


----------------------------------------------------------------------------
                        Year   Country of   Charter Rate   Charter Duration
 Vessel Name    DWT     Built construction   (1)USD/day          (2)
----------------------------------------------------------------------------
Panamax
----------------------------------------------------------------------------
Maria          76,000   2003      Japan        9,100     Jul 2014 - Jan 2015
----------------------------------------------------------------------------
Koulitsa       76,900   2003      Japan        13,250    Jun 2014- Jun 2015
----------------------------------------------------------------------------
Paraskevi      74,300   2003      Japan        8,650     Aug 2013 - Jul 2014
----------------------------------------------------------------------------
Vassos         76,000   2004      Japan     BPI(4) + 6%  Apr 2014 - Nov 2014
----------------------------------------------------------------------------
Katerina       76,000   2004      Japan        12,450    Jul 2014 - Sep 2014
----------------------------------------------------------------------------
Maritsa        76,000   2005      Japan      27,649 (3)  Mar 2013 - Jan 2015
----------------------------------------------------------------------------
Efrossini      75,000   2012      Japan        10,400    Jul 2014 - May 2015
----------------------------------------------------------------------------
Zoe            75,000   2013      Japan        14,800    Apr 2014 - Aug 2014
----------------------------------------------------------------------------
Kypros Land    77,100   2014      Japan        7,000     Jun 2014 - Aug 2014
----------------------------------------------------------------------------
Kypros Sea     77,100   2014      Japan        7,750     Jul 2014 - Sep 2014
----------------------------------------------------------------------------
Kamsarmax
----------------------------------------------------------------------------
Pedhoulas      82,300   2006      Japan    BPI(4) + 9.5% Jul 2013 - Jul 2015
Merchant
----------------------------------------------------------------------------
Pedhoulas      82,300   2006      Japan    BPI(4) + 6.5% Aug 2013 - Aug 2015
Trader
----------------------------------------------------------------------------
Pedhoulas      82,300   2007      Japan        10,600    Jul 2014 - Apr 2015
Leader
----------------------------------------------------------------------------
Pedhoulas      83,700   2008      Japan        10,500    Jul 2014 - Apr 2015
Commander
----------------------------------------------------------------------------
Pedhoulas      81,600   2012      China        15,150    May 2014 - Aug 2014
Builder
----------------------------------------------------------------------------
Pedhoulas      81,600   2012      China        6,050     Jun 2014 - Aug 2014
Fighter
----------------------------------------------------------------------------
Pedhoulas      81,600   2012      China        13,150    May 2014 - Aug 2014
Farmer
----------------------------------------------------------------------------
Post-Panamax
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Stalo          87,000   2006      Japan        14,800    Jun 2014 - Aug 2014
----------------------------------------------------------------------------
Marina         87,000   2006      Japan
----------------------------------------------------------------------------
Xenia          87,000   2006      Japan        8,500     Jul 2014 - Oct 2014
----------------------------------------------------------------------------
Sophia         87,000   2007      Japan        6,700     Jul 2014 - Sep 2014
----------------------------------------------------------------------------
Eleni          87,000   2008      Japan        13,000    May 2014 - Aug 2014
----------------------------------------------------------------------------
Martine        87,000   2009      Japan        6,550     Jun 2014 - Aug 2014
----------------------------------------------------------------------------
Andreas K      92,000   2009   South Korea     13,150    Jun 2014 - Aug 2014
----------------------------------------------------------------------------
Panayiota K    92,000   2010   South Korea     7,500     Jun 2014 - Jul 2014
----------------------------------------------------------------------------
Venus          95,800   2010      Japan        13,900    Jul 2014 - Sep 2014
Heritage
----------------------------------------------------------------------------
Venus          95,800   2011      Japan        6,500     Jun 2014 - Aug 2014
History
----------------------------------------------------------------------------
Venus          95,800   2012      Japan        13,000    Oct 2013 - Mar 2015
Horizon
----------------------------------------------------------------------------
Capesize
----------------------------------------------------------------------------
Kanaris       178,100   2010      China        25,928    Sep 2011 - Jun 2031
----------------------------------------------------------------------------
Pelopidas     176,000   2011      China        38,000    Feb 2012 - Dec 2021
----------------------------------------------------------------------------
Lake Despina  181,400   2014      Japan      24,376 (5)  Jan 2014 - Jan 2024
============================================================================
Total        2,863,700
----------------------------------------------------------------------------

1) Charter rate represents recognized gross daily charter rate. For charter
   parties with variable rates among periods or consecutive charter parties
   with the same charterer, the recognized gross daily charter rates
   represents the weighted average gross charter rate over the duration of
   the applicable charter period or series of charter periods, as
   applicable. Charter agreements may provide for additional payments,
   namely ballast bonus, to compensate for vessel repositioning.
2) The start dates listed reflect either actual start dates or, in the case
   of contracted charters that had not commenced as of July 28, 2014,
   scheduled start dates. Actual start dates and redelivery dates may differ
   from the scheduled start and redelivery dates depending on the terms of
   the charter and market conditions.
3) Following the early redelivery of the Maritsa, in January 2013 the
   Company received a cash compensation payment of $13.1 million, which is
   being amortized over the period of the new period time charter with the
   same charterer. The agreed gross daily charter rate is $8,000 for the
   period until January 2015.
4) A period time charter at a gross daily charter rate linked to the Baltic
   Panamax Index ("BPI") plus a premium.
5) A period time charter of ten years at a gross daily charter rate of
   $23,100 for the first two and a half years and of $24,810 for the
   remaining period. The charter agreement grants the charterer an option to
   purchase the vessel at any time beginning at the end of the seventh year
   of the charter, at a price of $39 million less 1.00% commission,
   decreasing thereafter on a pro-rated basis by $1.5 million per year. The
   Company holds a right of first refusal to buy back the vessel in the
   event that the charterer exercises its option to purchase the vessel and
   subsequently offers to sell such vessel to a third party. The charter
   agreement also grants the charterer the option to extend the period time
   charter for an additional twelve months at a time, at a gross daily
   charter rate of $26,330, less 1.25% total commissions, which option may
   be exercised by the charterer a maximum of two times.

Set out below is a table showing the Company's newbuild vessels and their contracted employment as of July 28, 2014:


----------------------------------------------------------------------------
                        Expected  Country of  Charter Rate(1) Charter
 Vessel Name     DWT    delivery construction     USD/day     Duration (2)
----------------------------------------------------------------------------
Panamax
----------------------------------------------------------------------------
Hull No. 821    77,000   2H 2014     Japan
----------------------------------------------------------------------------
Hull No. 822    77,000   1H 2015     Japan
----------------------------------------------------------------------------
                                                              May 2015 - May
Hull No. 1689   76,500   1H 2015     Japan    15,400          2025
----------------------------------------------------------------------------
Hull No. 827    77,000   2H 2015     Japan
----------------------------------------------------------------------------
Hull No. 828    77,000   1H 2016     Japan
----------------------------------------------------------------------------
Hull No. 835    77,000   2H 2016     Japan
----------------------------------------------------------------------------
Kamsarmax
----------------------------------------------------------------------------
Hull No. 1148   82,000   1H 2015     China
----------------------------------------------------------------------------
Hull No. 1146   82,000   1H 2016     China
----------------------------------------------------------------------------
Hull No. 1551   81,600   1H 2016     Japan
----------------------------------------------------------------------------
Hull No. 1552   81,600   1H 2017     Japan
----------------------------------------------------------------------------
Post-Panamax
----------------------------------------------------------------------------
Hull No. 1685   84,000   2H 2015     Japan
----------------------------------------------------------------------------
Hull No. 1686   84,000   2H 2015     Japan
----------------------------------------------------------------------------
Hull No. 1718   84,000   1H 2016     Japan
============================================================================
Total         1,040,700
----------------------------------------------------------------------------

1) Charter rate represents recognized gross daily charter rate. For charter
   parties with variable rates among periods or consecutive charter parties
   with the same charterer, the recognized gross daily charter rates
   represents the weighted average gross charter rate over the duration of
   the applicable charter period or series of charter periods, as
   applicable.
2) The start dates listed reflect scheduled start dates as of July 28, 2014.
   Actual start dates and redelivery dates may differ from the scheduled
   start and redelivery dates depending on the terms of the charter and
   market conditions.

The contracted employment of fleet ownership days as of July 28, 2014 was:


     2014 (remaining)         51%
     2014 (full year)         78%
     2015                     19%
     2016                     10%

Capital expenditure requirements and liquidity

As of June 30, 2014, the Company had agreed to acquire 13 newbuild vessels to be delivered at various points of time until 2017. The remaining capital expenditure requirements to shipyards or sellers, for the delivery of these 13 newbuilds amounted to $351.9 million, of which $37.7 million was scheduled to be paid in 2014, $162.6 million in 2015, $130.7 million in 2016 and $20.9 million in 2017. The average price payable to shipyards stands at $31.2 million per newbuild vessel or an aggregate of $405.2 million of capital expenditure requirements net of commissions from sellers for the acquisition of our 13 newbuild vessels with deliveries; 1 in 2014; 6 in 2015; 5 in 2016; and 1 in 2017; as a result of investing during the lower part of the shipping cycle.

As of June 30, 2014, the Company had liquidity of $456.9 million consisting of $154.4 million in cash and short-term time deposits, $0.5 million in short-term restricted cash, $2.7 million in long-term restricted cash, a $50.0 million floating rate note which matures in October 2014, $103.3 million available under existing revolving credit facilities and $146.0 million under committed loan facilities for four existing and six newbuild vessels.

Additionally, as of July 28, 2014, the Company had secured additional borrowing capacity of $112.0 million for six newbuild vessels on order. As of July 28, 2014 the Company had one unencumbered newbuild vessel on order against which additional financing could be raised upon its delivery, providing the Company with further financial flexibility in funding its newbuild program and the opportunity to further expand and renew the fleet.

Dividend Declaration

The Board of Directors of the Company declared a cash dividend on the Company's common stock of $0.06 per share payable on or about August 29, 2014 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the "NYSE") on August 19, 2014. The Company has 83,445,974 shares of common stock issued and outstanding as of today's date.

The Board of Directors of the Company is continuing a policy of paying out a portion of the Company's free cash flow at a level it considers prudent in light of the current economic and financial environment. The declaration and payment of dividends, if any, will always be subject to the discretion of the Board of Directors of the Company. The timing and amount of any dividends declared will depend on, among other things: (i) the Company's earnings, financial condition and cash requirements and available sources of liquidity, (ii) decisions in relation to the Company's growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends, (iv) restrictive covenants in the Company's existing and future debt instruments and (v) global financial conditions. Accordingly, dividends might be reduced or not be paid in the future.

Management Commentary

Dr. Loukas Barmparis, President of the Company, said: "Carrying the experience over many shipping cycles, our company maintains lean operations and low cost structure resulting in a low break-even point. We have substantial liquidity and our newbuild program is fully financed. Our profits, currently influenced be the prevailing weak charter market conditions due to our exposure in the spot market, have substantial upside potential during a market turnaround. In this context our Board of Directors has declared a quarterly dividend of six cents per common share."

Conference Call

On Wednesday, July 30, 2014 at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Safe Bulkers" to the operator.

A telephonic replay of the conference call will be available until August 8, 2014 by dialing 1 (866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 1859591#

Slides and Audio Webcast

There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.safebulkers.com). Participants in the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Management Discussion of Second Quarter 2014 Results

Net income decreased by 91% to $2.1 million for the second quarter of 2014 from $24.6 million for the second quarter of 2013, mainly due to the following factors:

Net revenues: Net revenues decreased by 10% to $37.2 million for the second quarter of 2014, compared to $41.4 million for the same period in 2013, mainly due to a decrease in time charter rates. The Company operated 31.00 vessels on average during the second quarter of 2014, earning a TCE(3) rate of $11,642, compared to 26.00 vessels and a TCE rate of $17,116 during the same period in 2013.

Vessel operating expenses: Vessel operating expenses increased by 21% to $12.6 million for the second quarter of 2014, compared to $10.4 million for the same period in 2013. The increase in operating expenses is mainly attributable to an increase in ownership days by 19% to 2,821 days for the second quarter of 2014 from 2,366 days for the same period in 2013.

Depreciation: Depreciation increased to $10.8 million for the second quarter of 2014, compared to $9.2 million for the same period in 2013, as a result of the increase in the average number of vessels operated by the Company.

Early redelivery income: During the second quarter of 2014, we recorded no early redelivery income, compared to $7.1 million of early redelivery income, for the same period in 2013.

Interest expense: Interest expense decreased to $2.2 million or 4% in the second quarter of 2014 from $2.3 million for the same period in 2013, as a result of the decrease in the average outstanding amount of loans and credit facilities and in the weighted average interest rate of such loans and credit facilities.

Gain/(loss) on derivatives: Loss on derivatives was $1.1 million in the second quarter of 2014, compared to a gain of $2.5 million for the same period in 2013, as a result of the mark-to-market valuation of the Company's interest rate swap transactions that are employed to manage the risk relating to interest rate exposure of our loan and credit facilities. These swaps economically hedge the interest rate exposure of the Company's aggregate loans outstanding. The average remaining period of our swap contracts is 2.4 years as of June 30, 2014. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.

Daily vessel operating expenses(4): Daily vessel operating expenses remained almost stable at $4,455 for the second quarter of 2014 compared to $4,414 for the same period in 2013.

Daily general and administrative expenses(4): Daily general and administrative expenses, which include daily fixed and variable management fees payable to our Manager and daily costs incurred in relation to our operation as a public company, remained almost stable at $1,236 for the second quarter of 2014 compared to $1,234 for the same period in 2013.

(1) Adjusted net income, Adjusted EPS and Adjusted EBITDA are non-GAAP measures and represent net income, EPS and EBITDA before gain on asset purchase cancellation, early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency respectively. See Table 1.

(2) EBITDA is a non-GAAP measure and represents net income plus interest expense, tax, depreciation and amortization. See Table 1.

(3) Time charter equivalent rates, or TCE rates, represent the Company's charter revenues less commissions and voyage expenses during a period divided by the number of our available days during the period.

(4) See Table 2.


           Unaudited Interim Financial Information and Other Data

                             SAFE BULKERS, INC.
          CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
     (In thousands of U.S. Dollars except for share and per share data)

                               Three-Months Period      Six-Months Period
                                      Ended                   Ended
                                    June 30,                June 30,
                             ---------------------- -----------------------
                                2013        2014        2013        2014
                             ----------  ----------  ----------  ----------
REVENUES:
  Revenues                       42,429      38,611      87,600      81,417
  Commissions                      (986)     (1,433)     (1,932)     (2,896)
  Net revenues                   41,443      37,178      85,668      78,521
EXPENSES:
  Voyage expenses                (1,255)     (4,638)     (5,290)     (8,993)
  Vessel operating expenses     (10,443)    (12,568)    (20,357)    (25,216)
  Depreciation                   (9,153)    (10,766)    (17,989)    (21,033)
  General and administrative
   expenses                      (2,919)     (3,487)     (5,560)     (6,491)
  Early redelivery income
   /(cost)                        7,050           -       7,050        (532)
  Gain on asset purchase
   cancellation                       -           -           -       3,633
  Operating income               24,723       5,719      43,522      19,889
OTHER (EXPENSE) / INCOME:
  Interest expense               (2,297)     (2,228)     (4,872)     (4,393)
  Other finance costs              (233)       (200)       (449)       (418)
  Interest income                   243         255         514         486
  Gain/(loss) on derivatives      2,473      (1,097)      2,536      (1,544)
  Foreign currency
   (loss)/gain                      (10)        (59)         26         (97)
  Amortization and write-off
   of deferred finance
   charges                         (325)       (318)       (634)       (619)
  Net income                     24,574       2,072      40,643      13,304
  Less preferred dividend           151       1,499         151       2,299
  Net income available to
   common shareholders           24,423         573      40,492      11,005
  Earnings per share               0.32        0.01        0.53        0.13
Weighted average number of
 shares                      76,679,328  83,444,365  76,676,422  83,442,759



                             SAFE BULKERS, INC.
              CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                       (In thousands of U.S. Dollars)

                                         December 31, 2013   June 30, 2014
                                         ----------------- -----------------
ASSETS
  Cash, time deposits and restricted
   cash, short term                                 71,421           154,914
  Other current assets                              51,764            25,086
  Short-term investment                             50,000            50,000
  Vessels, net                                     855,200           953,715
  Advances for vessel acquisition and
   vessels under construction                       76,299            64,672
  Restricted cash non-current                        1,423             2,663
  Other non-current assets                           6,109             6,181
  Total assets                                   1,112,216         1,257,231


LIABILITIES AND EQUITY
  Current portion of long-term debt                 35,185            71,990
  Other current liabilities                         22,119            18,590
  Long-term debt, net of current portion           473,110           451,254
  Other non-current liabilities                      3,466             2,297
  Shareholders' equity                             578,336           713,100
  Total liabilities and equity                   1,112,216         1,257,231



                                  TABLE 1
RECONCILIATION OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA AND ADJUSTED
                                     EPS

                                   Three-Months            Six-Months
                               Period Ended June 30,  Period Ended June 30,
                              ---------------------- ----------------------
(In thousands of U.S. Dollars
 except for share and per
 share data)                     2013        2014       2013        2014
                              ----------  ---------- ----------  ----------
Net Income - Adjusted Net
 Income
Net Income                        24,574       2,072     40,643      13,304
Less Gain on asset purchase
 cancellation                          -           -          -      (3,633)
Less Early redelivery
 (income)/cost                    (7,050)          -     (7,050)        532
Less (Gain)/loss on
 derivatives                      (2,473)      1,097     (2,536)      1,544
Plus Foreign currency
 loss/(gain)                          10          59        (26)         97
Adjusted Net Income               15,061       3,228     31,031      11,844

EBITDA - Adjusted EBITDA
Net Income                        24,574       2,072     40,643      13,304
Plus Net interest expense          2,054       1,973      4,358       3,907
Plus Depreciation                  9,153      10,766     17,989      21,033
Plus Amortization                    325         318        634         619
EBITDA                            36,106      15,129     63,624      38,863
Less Gain on asset purchase
 cancellation                          -           -          -      (3,633)
Less Early redelivery
 (income)/cost                    (7,050)          -     (7,050)        532
Plus (Gain)/loss on
 derivatives                      (2,473)      1,097     (2,536)      1,544
Plus Foreign currency
 loss/(gain)                          10          59        (26)         97
ADJUSTED EBITDA                   26,593      16,285     54,012      37,403

EPS - Adjusted EPS
Net Income                        24,574       2,072     40,643      13,304
Less preferred dividend              151       1,499        151       2,299
Net income available to
 common shareholders              24,423         573     40,492      11,005
Weighted average number of
 shares                       76,679,328  83,444,365 76,676,422  83,442,759
EPS                                 0.32        0.01       0.53        0.13
Adjusted Net Income               15,061       3,228     31,031      11,844
Less preferred dividend              151       1,499        151       2,299
Adjusted Net Income available
 to common shareholders           14,910       1,729     30,880       9,545
Adjusted EPS                        0.19        0.02       0.40        0.11


EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income available to common shareholders and Adjusted EPS are not recognized measurements under US GAAP.

Adjusted Net Income represents net income before gain on asset purchase cancellation, early redelivery (income)/cost, gain/(loss) on derivatives and foreign currency, respectively.

Adjusted Net Income available to common shareholders represents Adjusted Net Income less Preferred dividend.

EBITDA represents net income before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before gain on asset purchase cancellation, early redelivery (income)/cost, gain/(loss) on derivatives and foreign currency, respectively. EBITDA and Adjusted EBITDA are not recognized measurements under US GAAP. EBITDA and Adjusted EBITDA assist the Company's management and investors by increasing the comparability of the Company's fundamental performance from period to period and against the fundamental performance of other companies in the Company's industry that provide EBITDA and Adjusted EBITDA information. The Company believes that EBITDA and Adjusted EBITDA are useful in evaluating the Company's operating performance compared to that of other companies in the Company's industry because the calculation of EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions and the calculation of Adjusted EBITDA generally further eliminates the effects from gain/(loss) on asset purchase cancellation, early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency, items which may vary for different companies for reasons unrelated to overall operating performance.

EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of the Company's results as reported under US GAAP. EBITDA and Adjusted EBITDA should not be considered as substitutes for net income and other operations data prepared in accordance with US GAAP or as a measure of profitability. While EBITDA and Adjusted EBITDA are frequently used as measures of operating results and performance, they are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.



              TABLE 2: FLEET DATA AND AVERAGE DAILY INDICATORS


                                        Three-Months         Six-Months
                                        Period Ended        Period Ended
                                          June 30,            June 30,
                                       2013      2014      2013      2014

FLEET DATA
Number of vessels at period's end          26        31        26        31
Average age of fleet (in years)          5.21      5.53      5.21      5.53
Ownership days (1)                      2,366     2,821     4,613     5,508
Available days (2)                      2,348     2,795     4,567     5,452
Operating days (3)                      2,344     2,775     4,558     5,431
Fleet utilization (4)                    99.1%     98.4%     98.8%     98.6%
Average number of vessels in the
 period (5)                             26.00     31.00     25.49     30.43

AVERAGE DAILY RESULTS
Time charter equivalent rate (6)     $ 17,116  $ 11,642  $ 17,600  $ 12,753
Daily vessel operating expenses (7)  $  4,414  $  4,455  $  4,413  $  4,578
Daily general and administrative
 expenses (8)                        $  1,234  $  1,236  $  1,205  $  1,178

(1) Ownership days represent the aggregate number of days in a period during
    which each vessel in our fleet has been owned by us.
(2) Available days represent the total number of days in a period during
    which each vessel in our fleet was in our possession net of off-hire
    days associated with scheduled maintenance, which includes major
    repairs, drydockings, vessel upgrades or special or intermediate
    surveys.
(3) Operating days represent the number of our available days in a period
    less the aggregate number of days that our vessels are off-hire due to
    any reason, excluding scheduled maintenance.
(4) Fleet utilization is calculated by dividing the number of our operating
    days during a period by the number of our ownership days during that
    period.
(5) Average number of vessels in the period is calculated by dividing
    ownership days in the period by the number of days in that period.
(6) Time charter equivalent rates, or TCE rates, represent our charter
    revenues less commissions and voyage expenses during a period divided by
    the number of our available days during the period.
(7) Daily vessel operating expenses include the costs for crewing,
    insurance, lubricants, spare parts, provisions, stores, repairs,
    maintenance, statutory and classification expense, drydocking,
    intermediate and special surveys and other miscellaneous items. Daily
    vessel operating expenses are calculated by dividing vessel operating
    expenses by ownership days for the relevant period.
(8) Daily general and administrative expenses include daily fixed and
    variable management fees payable to our Manager and daily costs in
    relation to our operation as a public company. Daily general and
    administrative expenses are calculated by dividing general and
    administrative expenses by ownership days for the relevant period.

About Safe Bulkers, Inc.

The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world's largest users of marine drybulk transportation services. The Company's common stock, series B, series C and series D preferred stock are listed on the NYSE, where they trade under the symbols "SB", "SB.PR.B", "SB.PR.C", and "SB.PR.D" respectively. The Company's current fleet consists of 31 drybulk vessels, all built 2003 onwards, and the Company has agreed to acquire 13 additional drybulk newbuild vessels to be delivered at various dates through 2017.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Exchange Act of 1933, as amended, and in Section 21E of the Securities Act of 1934, as amended) concerning future events, the Company's growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the demand for drybulk vessels, competitive factors in the market in which the Company operates, risks associated with operations outside the United States and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

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