Ladies and gentlemen, thank you for standing by and welcome to the Safe Bulkers' Conference Call to discuss the First Quarter 2020 Financial Results. Today we have with us from Safe Bulkers, Chairman and Chief Executive Officer, Mr. Polys Hajioannou; President, Dr. Loukas Barmparis; Chief Financial Officer, Mr. Konstantinos Adamopoulos; and Chief Operating Officer, Mr. Ioannis Foteinos. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. [Operator Instructions] I must advise you that this conference is being recorded today. Before we begin, please note that this presentation contains forward-looking statements as defined in Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange 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, which 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 publicly 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. And now, I pass the floor to Konstantinos Adamopoulos. Please go ahead, sir.

Good morning to all. I am Konstantinos Adamopoulos, CFO of Safe Bulkers. Welcome to our conference call and webcast to discuss the financial results for the first quarter of 2020. I would like to start by thanking our seafarers for their commitment and dedication throughout this harsh period and collectively we will continue to save our charters. Moving to Slide 4, we have been active in all fronts operational, financial, and commercial, taking measures to ease the impact of COVID-19. In the operational forefront, and in relation to our seafarers onboard, the company's COVID-19 Management Plan has been disseminated to the vessels incorporating measures to protect seafarers and ensure employees health and well-being, and to keep all our vessels sailing continuously servicing our charterers. In our shore operations we have conducted remotely our businesses efficiently through 6th March 2020 and reopened our offices on May 4, 2020. So far zero COVID-19 incidents both onboard as well as on shore. We have secured the normal supply of bunkers provisions and potable water at the main ports under specific procedures to avoid contact with port personnel. All critical technical services are maintained and as all crew changes have been suspended we have developed a detailed plan of such exchanges in order to increase crew availability and meet replacement demand once the changes resume. We have been also active in our environmental investments as seen in Slide 5. From the beginning of the year and until May 29, 2020, even during the peak of the COVID-19 pandemic, our program of dry dockings, ballast water treatment systems and scrubber installations have continued. We have concluded six dry dockings, five ballast water installations, four scrubber installations and had one recent newbuild vessel delivered. In the financial program in Slide 6, following the refinancing concluded in…

[Operator Instructions] And your first question comes from Chris Wetherbee.

Hey guys, good morning. This is James on for Chris. I just wanted to start with balance sheet and touch on some of the refinancing. I just wanted to get a sense of where you were, are there additional refinancings that you'd like to pursue, are you comfortable with what you've done so far? Just kind of wanted to get a sense of what's sort of the – look at capital structure is right now or what goals you're sort of working towards and sort of to see where you are in that process?

Yes this is Loukas. Look we have quite happy. We have concluded very quickly this refinancing of certain facilities of course the major job was done early – late last year. And right now you can see the principal payment schedule for the following years and we feel quite comfortable because we sit on substantial liquidity which can cover the 2020 and 2021 principal payments. Having said that of course, we shouldn't forget that the debt to asset ratio is 63%, which is still quite comfortable. And so the company, we feel that the management feels that we are very fine at this position.

Yes and kind of wanted to get a sense of the preferred within that context. Is there anything that you think that you could opportunistically do there or is that actually something that you're also comfortable with?

Could you repeat the question?

Yes, just also wanted to touch on the preferreds, are you comfortable with them where you are or given the current environment is there something that you could do opportunistically they possibly repurchase at a discount or they are fairly high cost of capital? So just to get a sense of if there's anything you could do on that side of the capital structure as well?

Yes, we are quite comfortable with preferreds and I think the preferreds have a played a very good, let's say substantial part of the equity of the company. And I think we should continue to maintain – our balance sheet for let’s say next periods.

Got it, and then looking at OpEx, and I knows it’s up about 3% of year-over-year as you said, just wanted to get a sense if that is the right run rate to think of moving forward or if you have any opportunities to move it down or if there's anything sort of one-time-ish in there, essentially trying to get a outlook for OpEx per day?

Look the OpEx, I mean the OpEx that we always present is not comparable with several other companies that report differently the OpEx and the dry-docking expenses, we report everything together. And if you see that, we should see that we did a large number of dry-dockings and installations during the first quarter, despite the fact that we had this COVID-19 outbreak, we did it without our people in China. And while we are quite comfortable, in the next quarter something we're expect that this figure probably would go down because we have less dry-dockings. And the other thing is that we also we have a program of reducing OpEx during this period. So I think that we're quite happy and even in comparison with all our peers.

Got it. But – I think you had called out that OpEx per day, excluding dry-docking expenses was roughly $4,285.

Yes.

So if we look at that moving forward, what should we be thinking of that particular number being and then also your ability to reduce that through some of your initiatives? I'm just trying to get an ex dry-docking and ex delivery expenses, trying to get a sense of what that might do across the next couple of quarters?

Yes, I think that we should look for a figure between $4000 and $4200. This is a reasonable assumption on our efforts. And on that then you need to top up with the dry-docking expenses as we said.

Got it. And then if you're thinking about sort of the outlook at the moment, what is your expectation for rates? There is – do you think it will be slow and gradual and occur maybe mid next year or do you think it will be sort of sharp and pointed and you could actually see some level of recovery in this year, just trying to understand sort of the outlook for the sort of shape of recovery, if you will?

Yes, this is Polys. So what we expect is the second half of this year to move towards breakeven level. So, slightly above breakeven levels, but as this uncertainty is still there with the pandemic and nobody knows how it will develop, if there's a second round coming or if there's a vaccine that may be produced, a lot will depend on that. If things get normalized, we expect that we will have a very strong 2021 because the supply of new buildings will be much less than what is this year and demand will be back on track. So we believe that we should have a good next 18 months if we don't have new surprise from the pandemic.

Got it, okay, well that's it from me. Thank you.

Thank you.

Your next question comes from Reggie Gibion [ph].

Hi gentlemen, how's it going?

Yes, fine. Thank you.

Excellent, we have two questions from me. So looking at the kind of – the share issuances you repurchased I think it was like 3.3 million shares. What is the average price of that? And then are you looking to be more conservative now or are you still looking at share repurchases at these levels?

Look the management is very comfortable with the company and that's why from time-to-time we have repurchase programs. And I think that in the future according to our assessment, we may continue to do such repurchase programs either opportunistically or to support the stock price.

Sure and the average price for the shares of repurchase?

Could you please repeat?

The average price for the shares that are going to be repurchased?

We have not reported that, but it's quite close to what the levels, I mean it's below the levels of the stock today.

I think it’s around [indiscernible].

Around what, I think?

It’s around - no this is the price of 81 or 110 I think.

Okay, so similar to the price you've offered for the year on vessel. But okay, can you provide some color on the recent jump in the rates for Capesizes and kind of your expectations of this kind of going forward?

Capesizes rates are improving in the last two or three weeks. We expect very soon the market to get over $15,000 a day the spot market. Thereafter a lot depends on how also the trend of the pandemic is developing in Brazil. If there is no big surprises there and we can maintain the safety of the workers in the mines, we don't get any big surprises from that place, we think that there will be an increased volume of Brazilian iron ore moving to China. We see that the demand is there. You see that the price is going up of iron ore is more than $100 a ton. So we expect the volume of Brazilian iron ore to help the market substantially. I think the market is already improving. So basically the usual pickup in demand that was in the past starting after the Chinese New Year usually in April. This year because of the pandemic in the western hemisphere it’s delayed and we see now in June, so it’s a two months delay from other years. So I expect to see a very strong July to December period for the iron ore grade.

Sure. Okay and then I guess last question with all that in consideration now that we're in almost mid June, can you give some guidance on the second quarter compared to the first quarter in terms of that daily TCE? I know for the first quarter you had 9100, where do you kind of view the second quarter?

Yes, we don't give guides as such, but we expect that the second quarter will be better than the first quarter.

Okay, better than the first quarter sounds good. Well, thanks so much.

Yes thank you.

Your next question comes from Richard Diamond.

First, great job in a difficult environment. And you know when the market is hot, it's easy to look good, but this is a true demonstration of character. My question is – my impression is that mining involves, by its very nature, social distancing and the people are wearing masks and they're far apart. So, it looks like the mines should be able to reopen in Brazil. But I wondered if you could just give us some commentary what you see happening on the ground in Brazil? Thank you.

When you mean on the ground, you mean in the various spots around the world?

No, on the ground in Brazil, what's happening today? What is your position today?

I mean, I mean, we saw the reports over the weekend that there was some closure of mines in Brazil because of some increased COVID-19 hits by some workers there. But I don't think this will last very long. Already while they gave reassurances of their production will not be affected maybe there will be a little bit of shortage of pellets for the local market. So as far as exports are concerned, I don't think we will see any great deal of change of what was planned for export. So we are reasonably optimistic and with also the improvement of the far eastern market, Capes will not balance in volumes towards Brazil – some of them they are staying busy in the Pacific. This will give a chance the long-haul rate to help boost the market. So last year, the second half of last year, we enjoyed rates of $35,000 per day on the Capesizes. This year, we'll be happy this is even we average around $20,000 at the peak of Q3, we will be very happy with these numbers.

I share your sentiment. Thank you very much.

Thank you.

Gentlemen, there are no further questions. I will turn the call back over to you.

So, and this concludes our conference call for the Q1 earnings. Thank you very much for your participation and we look forward to seeing you. Thank you.

Thank you. Goodbye.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.