Dry CargoEurope

Safe Bulkers puts latest acquisition to work with new three-year charter

NYSE-listed dry bulk owner Safe Bulkers has found work for its latest acquisition, a 2012-built Japanese capesize bulker.

The bulker, which is scheduled for delivery in November, will be named Stelios Y and go out on a three-year charter at a rate of $24,400 per day.

Safe Bulkers says the charter, which also has extension options for an additional year, will generate around $26.7m of revenue. The company acquired the vessel for a total of $32.3m via a one-year bareboat charter with an option to acquire. The S&P deal included a down payment of $4.5m on signing, and requires a payment of $4.5m on delivery of the vessel, a payment of a daily charter rate of $14,500 for the first year, and includes a purchase option at the end of the charter of $18m.

Loukas Barmparis, president of Safe Bulkers, commented: “We have developed this attractive period time charter for our new cape which enhances visibility of our future cash flows. The revenue of the Company for the minimum charter period of 3 years compares well with the investment cost of the vessel, noting furthermore that the residual steel value of the vessel today is about $14.5 million.”

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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