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Tuesday, June 09, 2009

Safe Bulkers cancels one of two newbuildings

Rajesh Joshi, New York - Monday 8 June 2009


SAFE Bulkers has trimmed its capital expenditure by $12m by cancelling one of its two capesize newbuildings and making other adjustments to its newbuilding portfolio.
Polys Hajioannou’s New York Stock Exchange-listed dry bulk operator has delayed delivery on another capesize and a post-panamax, with Mr Hajioannou commenting: “We continue to closely manage our business through the current recession, reducing our capital expenditure requirements, maintaining our relationships with our customers and increasing our coverage.”
The cancelled 176,000 dwt capesize newbuilding, on order in China, is being replaced with another capesize newbuilding to be delivered in April 2010. The charterer of this ship has agreed in principle to the switch, subject to documentation.
The capital expenditure reduction of $12m would be gross of broker commission. 
Safe Bulkers simultaneously announced the postponement of delivery on a sistership capesize. The charterer of this ship has agreed to a postponed delivery in 2012, subject to the reduction in the timecharter rate from $40,000 a day to $38,000 a day. 
A 92,000 dwt post-panamax bulker due for delivery in 2010 has been pushed back to the summer of 2011. This ship is yet charter-free.
Safe Bulkers unveiled three timecharters on existing tonnage, at period rates in keeping with today’s market. A panamax has gone on hire for 23-27 months at a $15,500 per day, while another panamax has been taken for 14-17 months at $18,000 per day.
A kamsarmax has been chartered for either a year or two years at the charterer’s discretion, at $21,000 per day or $18,500 per day.
All renewals are to be consummated before July.