World News
Safe Bulkers: Losses Wider than Expected Despite Low Bunker Price Fuelled 32% Reduction in Voyage Costs
Safe Bulkers, Inc. (Safe Bulkers) [NYSE:SB] says lower bunker prices were a key factor in it slashing voyage costs for the three month period ending December 31, 2015, but the savings were not enough to prevent what was said to be wider-than-expected losses on the back of a severe downturn in the sector.
"Voyage expenses decreased by 32 percent to $3.0 million for the fourth quarter of 2015 compared to $4.4 million for the same period in 2014, mainly due to a decrease in vessel repositioning expenses due to lower fuel prices," stated Safe Bulkers in its 2014 Q4 financial report released February 10, 2016.
The company posted an adjusted loss of $0.13 per share during Q4, versus an original analyst estimate of $0.11 that was compiled by Capital IQ.
Overall, Safe Bulkers' net loss during 2015's Q4 is said to have been $29.9 million, which compares to $0.1 million during the same period in the previous year.
Safe Bulkers' sales declined to $29.9 million in Q4, compared to $39.1 million during 2014's Q4.
Despite the company's downward trending results and dire outlook for the sector, Safe Bulkers' stock was on the up last week, rising around 30 percent.
In January, Ship & Bunker reported that Safe Bulkers had entered into a new period time charter for one of its 87,000 DWT Post-Panamax-class vessels - on seemingly particularly good terms for the bulker owner.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
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