Safe Bulkers, Inc. Reports First Quarter 2012 Results and Declares Quarterly Dividend

ATHENS, GREECE--(Marketwire - May 8, 2012) - Safe Bulkers, Inc. (the "Company") (NYSE: SB), an international provider of marine drybulk transportation services, announced today its unaudited financial results for the quarter ended March 31, 2012. The Company's Board of Directors also declared a quarterly dividend of $0.15 per share for the first quarter of 2012.

Summary of First Quarter 2012 Results

• Net revenue for the first quarter of 2012 increased by 4% to $44.1 million from $42.3 million during the same period in 2011.
• Net income for the first quarter of 2012 decreased by 21% to $21.6 million from $27.3 million, during the same period in 2011. Adjusted net income¹ for the first quarter of 2012 decreased by 16% to $22.9 million from $27.4 million, during the same period in 2011.
• EBITDA² for the first quarter of 2012 decreased by 11% to $30.7 million from $34.4 million during the same period in 2011. Adjusted EBITDA¹ for the first quarter of 2012 decreased by 7% to $31.9 million from $34.5 million during the same period in 2011.
• Earnings per share ("EPS") and Adjusted EPS¹ for the first quarter of 2012 of $0.30 and $0.32 respectively, calculated on a weighted average number of shares of 71,868,950, compared to $0.41 and $0.42 in the first quarter 2011, calculated on a weighted average number of shares of 65,881,600.
• The Company's Board of Directors declared a dividend of $0.15 per share for the first quarter of 2012.

Fleet and Employment Profile

As of May 4, 2012, the Company's operational fleet was comprised of 20 drybulk vessels with an average age of 4.2 years and the Company had contracted to acquire nine newbuild drybulk vessels with deliveries scheduled at various times through 2014.

Set out below is a table showing our existing and newbuild vessels and their contracted employment:

Vessel Name		DWT		Year Built (1)		Country of construction		Charter Rate (2) USD/day		Charter Duration (3)
Current Fleet
Panamax
Maria		76,000		2003		Japan		20,250		Apr 2011 - Apr 2014
Vassos		76,000		2004		Japan		29,000		Nov 2008 - Oct 2013
Katerina		76,000		2004		Japan		20,000		Feb 2011 - Feb 2014
Maritsa		76,000		2005		Japan		28,069		Mar 2010 - Mar 2015
Efrossini		75,000		2012		Japan		15,200		May 2012 - Jul 2012
Kamsarmax
Pedhoulas Merchant		82,300		2006		Japan		18,350		Aug 2011 - Aug 2013
Pedhoulas Trader		82,300		2006		Japan		41,850 BPI + 6.5%		Aug 2008 - Jul 2013 Aug 2013 - Jul 2015
Pedhoulas Leader		82,300		2007		Japan		11,000		Mar 2012 - Jun 2012
Post-Panamax
Stalo		87,000		2006		Japan		34,160		Mar 2010 - Feb 2015
Marina		87,000		2006		Japan		41,557		Dec 2008 - Dec 2013
Sophia		87,000		2007		Japan		34,720		Oct 2008 - Sep 2013
Eleni		87,000		2008		Japan		41,738		Apr 2010 - Mar 2015
Martine		87,000		2009		Japan		40,500		Feb 2009 - Feb 2014
Andreas K		92,000		2009		South Korea		19,500		Apr 2012 - Jun 2012
Panayiota K		92,000		2010		South Korea		15,250		Nov 2011 - May 2012
Venus Heritage		95,800		2010		Japan		12,250		Mar 2012 - Sep 2012
Venus History		95,800		2011		Japan		13,500		Apr 2012 - May 2012
Venus Horizon		95,800		2012		Japan		15,000		Apr 2012 - Jun 2012
Capesize
Kanaris		178,100		2010		China		25,928		Sep 2011 - Jun 2031
Pelopidas		176,000		2011		China		38,000		Jan 2012 - Dec 2021
Subtotal		1,886,400
New builds
Panamax
Hull No. 814		75,000		2H 2013		Japan
Hull No. 1659		76,600		2H 2013		Japan
Hull No. 1660		76,600		1H 2014		Japan
Kamsarmax
Hull No. 616		82,000		1H 2012		China		13,250		Jun 2012 - May 2014
Hull No. 631		82,000		2H 2012		China		(BPI + 4%) - 1,000		Aug 2012 - Jul 2013
Hull No. 617		82,000		2H 2012		China
Post-Panamax
Hull No. 2396		84,000		2H 2014		Japan
Hull No. 2397		84,000		2H 2014		Japan
Capesize
Hull No. 131		180,000		2H 2012		China		24,810		Dec 2012 - Dec 2022
Subtotal		822,200
Total		2,708,600

(1)	For newbuilds, the dates shown reflect the expected delivery dates.
(2)	Charter rate represents recognized gross rate. For charter parties with variable rates among periods or consecutive charter parties with the same charterer, recognized gross charter rates is the weighted average gross charter rate over the total charter period.
(3)	The start dates listed reflect either actual start dates or, in the case of contracted charters that had not commenced as of May 4, 2012, 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.

The charter coverage³ based on the Company's best estimates as of May 4, 2012 was:

	2012 (remaining)	73%
	2012 (full year)	81%
	2013	59%
	2014	33%

Capital Expenditure Requirements and Liquidity

As of May 4, 2012, the remaining capital expenditure requirements to shipyards or sellers, net of commissions for the delivery of the nine newbuilds, amounted to $236.8 million, of which $98.4 million is scheduled to be paid in 2012, $59.6 million in 2013 and $78.8 million in 2014.

As of May 4, 2012, the Company had $59.1 million in cash and short term time deposits, $5.4 million in long term restricted cash, and estimated aggregate borrowing capacity of $179.6 million, consisting of $38.0 million available in undrawn or committed loan facilities, $101.6 million available under existing revolving credit facilities and $40.0 million undrawn availability against our $50.0 million floating rate note.

Additionally, the Company has the operational cash flow supported by our contracted period time charters and the possibility to borrow additional amounts secured by one or more of the seven debt-free newbuild vessels, upon their delivery to us.

Dividend Declaration

The Company's Board of Directors declared a cash dividend on the Company's common stock of $0.15 per share payable on or about May 31, 2012 to shareholders of record at the close of trading of the Company's common stock on the New York Stock Exchange (the "NYSE") on May 23, 2012.

The Company has 76,651,416 shares of common stock issued and outstanding as of May 8, 2012.

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) our earnings, financial condition and cash requirements and available sources of liquidity, (ii) decisions in relation to our growth strategies, (iii) provisions of Marshall Islands and Liberian law governing the payment of dividends, (iv) restrictive covenants in our existing and future debt instruments and (v) global financial conditions. Dividends might not be paid in the future.

Additional Offering

During March 2012, the Company consummated an underwritten public equity offering of 5,750,000 shares of common stock, which was priced at $6.50 per share to the public.

The total net proceeds to the Company from the offering, after deducting the underwriting discount and estimated offering expenses, were $35.3 million.

The Company plans to use the net proceeds of this offering for vessel acquisitions, capital expenditures and other general corporate purposes, which may include repayment of indebtedness.

Management Commentary

Dr. Loukas Barmparis, President of the Company, said: "Our Board of Directors has declared our sixteenth consecutive dividend since our IPO, continuing our policy to pay out a portion of the Company's free cash flow, while we reserve remaining free cash flow to finance our future development. Our financial position is supported by our charter coverage. In addition to our existing newbuild program, we may continue to expand or renew our current fleet by taking advantage of attractive vessel acquisition opportunities. Our newbuild strategy focuses on vessels with new, energy-efficient designs by leading shipyards that will comply with upcoming regulations and incorporate the latest technological and environmental advancements."

Conference Call

On Wednesday, May 9, 2012 at 9:30 A.M. EDT, 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 May 16, 2012 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 are requested to register on the website approximately 10 minutes prior to the start of the webcast.

Management Discussion of First Quarter 2012 Results

Net income decreased by 21% to $21.6 million for the first quarter of 2012 from $27.3 million for the first quarter of 2011, mainly due to the following factors:

Net revenues: Net revenues increased by 4% to $44.1 million for the first quarter of 2012, compared to $42.3 million for the same period in 2011, mainly due to an increased number of operating days. The Company operated 18.88 vessels on average during the first quarter of 2012, earning a TCE rate of $24,890, compared to 16.00 vessels and a TCE rate of $29,322 during the same period in 2011.

Vessel operating expenses: Vessel operating expenses increased by 42% to $8.1 million for the first quarter of 2012, compared to $5.7 million for the same period in 2011. The increase in operating expenses is mainly attributable to an increase in ownership days by 19% to 1,718 days for the first quarter of 2012 from 1,440 days for the same period in 2011 and the initial cost of supplies of our two new newbuilds delivered in this period. Daily vessel operating expenses increased by 18% to $ 4,713 for the first quarter of 2012 compared to $3,989 for the same period in 2011, mainly due to increased supplies for the deliveries of our two newbuild vessels.

Depreciation: Depreciation increased to $7.3 million for the first quarter of 2012, compared to $5.6 million for the same period in 2011, as a result of the increase in the average number of vessels operated by the Company during the first quarter of 2012.

Voyage expenses: Voyage expenses increased to $1.3 million for the first quarter of 2012, compared to $0.1 million for the same period in 2011, as a result of expenses related to repositioning two vessels compared to none in the first quarter of 2011.

Loss on derivatives: Loss on derivatives increased to $1.2 million in the first quarter of 2012, compared to almost zero for the same period in 2011, as a result of the mark-to-market valuation of the Company's interest rate swap transactions that we employ to manage the risk and 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 was 2.5 years as of March 31, 2012. The valuation of these interest rate swap transactions at the end of each quarter is affected by the prevailing interest rates at that time.

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 Ended March 31,
			2011			2012
REVENUES:
	Revenues		43,045			44,804
	Commissions		(771	)		(732	)
	Net revenues		42,274			44,072
EXPENSES:
	Voyage expenses		(51	)		(1,311	)
	Vessel operating expenses		(5,744	)		(8,097	)
	Depreciation		(5,583	)		(7,322	)
	General and administrative expenses		(1,938	)		(2,333	)
	Early redelivery income		101			-
	Operating income		29,059			25,009
OTHER (EXPENSE) / INCOME:
	Interest expense		(1,716	)		(1,825	)
	Other finance costs		(57	)		(390	)
	Interest income		286			282
	Loss on derivatives		(6	)		(1,241	)
	Foreign currency loss		(169	)		(10	)
	Amortization and write-off of deferred finance charges		(89	)		(211	)
	Net income		27,308			21,614
	Earnings per share		0.41			0.30
Weighted average number of shares			65,881,600			71,868,950

SAFE BULKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of U.S. Dollars)
			December 31, 2011		March 31, 2012
ASSETS
	Cash, time deposits		28,121		18,650
	Other current assets		9,838		11,142
	Vessels, net		655,356		738,320
	Advances for vessel acquisition and vessels under construction		122,307		79,464
	Restricted cash non-current		5,423		5,423
	Long-term investment		50,000		50,000
Other non-current assets			6,226		6,065
	Total assets		877,271		909,064
LIABILITIES AND EQUITY
	Current portion of long-term debt		18,486		16,453
	Other current liabilities		33,187		35,872
	Long-term debt, net of current portion		465,805		457,571
	Other non-current liabilities		27,951		21,054
	Shareholders' equity		331,842		378,114
	Total liabilities and equity		877,271		909,064

Fleet Data 2012
		Three-Months Period Ended March 31,
		2011				2012
FLEET DATA
Number of vessels at period's end			16.00				20.00
Average age of fleet (in years)			4.05				4.10
Ownership days (1)			1,440				1,718
Available days (2)			1,440				1,718
Operating days (3)			1,440				1,715
Fleet utilization (4)			100.0	%			99.8	%
Average number of vessels in the period (5)			16.00				18.88
AVERAGE DAILY RESULTS
Time charter equivalent rate (6)		$	29,322			$	24,890
Daily vessel operating expenses (7)		$	3,989			$	4,713

(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.

TABLE 1
RECONCILIATION OF ADJUSTED NET INCOME, EBITDA, ADJUSTED EBITDA AND ADJUSTED EPS
		Three-Months Period Ended March 31,
(In thousands of U.S. Dollars except for share and per share data)		2011			2012
Net Income - Adjusted Net Income
Net Income		27,308			21,614
Less Early Redelivery Income		(101	)		-
Plus Loss on Derivatives		6			1,241
Plus Foreign Currency Loss		169			10
Adjusted Net Income		27,382			22,865
EBITDA - Adjusted EBITDA
Net Income		27,308			21,614
Plus Net Interest Expense		1,430			1,543
Plus Depreciation		5,583			7,322
Plus Amortization		89			211
EBITDA		34,410			30,690
Less Early Redelivery Income		(101	)		-
Plus Loss on Derivatives		6			1,241
Plus Foreign Currency Loss		169			10
ADJUSTED EBITDA		34,484			31,941
EPS - Adjusted EPS
Net Income		27,308			21,614
Adjusted Net Income		27,382			22,865
Weighted average number of shares		65,881,600			71,868,950
EPS		0.41			0.30
Adjusted EPS		0.42			0.32

EBITDA represents net income before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before gain/(loss) on sale of assets, early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency. 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 sale of assets, 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 and adjusted EBITDA 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, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.

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 is listed on the NYSE, where it trades under the symbol "SB". The Company's current fleet consists of 20 drybulk vessels, all built post-2003, and the Company has contracted to acquire nine additional drybulk newbuild vessels to be delivered at various times through 2014.

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.

¹ Adjusted net income, Adjusted EPS and Adjusted EBITDA represent Net Income, EPS and EBITDA before gain/(loss) on sale of assets, early redelivery income/(cost) and gain/(loss) on derivatives and foreign currency respectively. See Table 1.

² EBITDA represents net income plus interest expense, tax, depreciation and amortization. See Table 1.

³ Charter coverage is defined as the ratio of total contracted days divided by the total ownership days for existing and newbuild vessels upon their delivery to us, for the referenced period.