Safe Bulkers (SB) saw its loss widen to $29.90 million, or $0.40 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.64 million, or $0.09 a share. On the other hand, adjusted net loss for the quarter widened to $7.68 million, or $0.13 a share from a loss of $4.15 million or $0.09 a share, a year ago.
Revenue during the quarter dropped 5.57 percent to $29.94 million from $31.71 million in the previous year period. Operating margin for the quarter stood at negative 86.14 percent as compared to a positive 2.68 percent for the previous year period.
Operating loss for the quarter was $25.79 million, compared with an operating income of $0.85 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.15 million compared with $13.63 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1244 basis points in the quarter to 30.55 percent from 43 percent in the last year period.
Dr. Loukas Barmparis, president of the Company, said: "Although the chartering market improved in the last quarter of 2016 from historical lows, it still remains at unprofitable levels. In 2016, we achieved positive operating cash flows supported by our low average daily operating expenses5 of $3,698 per vessel which were consistent with our cost reducing efforts throughout the year. We have also improved our liquidity position through an additional public offering of common stock with gross proceeds of $17.2 million in December 2016. At present, a significant part of our fleet is employed in the period time charter market at levels which provide visibility of our cash flows and support cash positive operations for 2017, while maintaining upside potential through 41% of open days for the remainder of 2017."
Operating cash flow improves significantly
Safe Bulkers has generated cash of $25.50 million from operating activities during the year, up 88.89 percent or $12 million, when compared with the last year.
The company has spent $182.20 million cash to meet investing activities during the year as against cash inflow of $21.30 million in the last year.
Cash flow from financing activities was $180.10 million for the year as against cash outgo of $83.90 million in the last year period.
Cash and cash equivalents stood at $196.75 million as on Dec. 31, 2016, up 107.51 percent or $101.93 million from $94.81 million on Dec. 31, 2015.
Debt moves up
Safe Bulkers has witnessed an increase in total debt over the last one year. It stood at $646.87 million as on Dec. 31, 2016, up 11.15 percent or $64.91 million from $581.96 million on Dec. 31, 2015.
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