In slide 5 we provide a background information for the company. We think our [inaudible] in our long history predecessor since 1958, we have experienced many shipping cycles, management investing in shipping activities show you through Safe Bulkers, cash is fully aligned with our public shareholders. Management has adopted [inaudible] approach resulting in operational excellence. Company’s policies are consistent and well adapted to market conditions.

On slide six we present average 40C [ph] Baltic cape and Baltic Panamax index. Capital market was challenging during the first half of 2012, affecting financial performance of main companies and asset values. Middle sized vessels such as Panamax and Kamsarmaxes have been trading relatively better than Cape sized vessels which were traded in the region of 8000. This is mainly due to the wider range of trading areas and transportable cargos of this class.

For example Panamaxes have been benefited from the increased trading at [inaudible] during the portion of the past six months due to the seasonal grain activity from South America. However, the unprecedented growth in South America has been a barrier in further growth of grain trading. Overall, presently, Panamax vessels are trading in the region of 7000 lower than the past 12 months average trade which was 11000 and considerably lower than the 10 years average which is about 27,800.

On the other hand, certain issues dominating that on our market and temporary easing of construction activity have pushed the Capes market at lower level as well below the historical averages, but in many cases even lower than their operating expenses. At this point, we remind you that all our Capes chartered out, chartered at comfortable levels.

Main reason for the current outlook of the market is the excess supply of vessels which is expected to increase in few of the big order book going forward in 2012 and in lesser extent in 2013.

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