Belships ASA - Report 3rd quarter 2020

MARKET REBOUND – POSITIONING FOR 2021

HIGHLIGHTS

• Operating income of USD 43.3 million (Q3 2019: USD 31.7m)
• EBITDA of USD 5.9m (USD 8.1m)
• Net result of USD -4.2m (USD 0.3m)
• Net TCE per ship of USD 9 067 per day versus BSI index of USD 9 435 net per day
• 75 per cent of remaining ship days in 2020 are booked at USD 9 000 net per day
• All financing secured till May 2024 onwards after refinancing of SOFIE VICTORY
• Imabari newbuilding delivery amended from Q4 2020 to Q1 2021
• Belships regarded as leading within corporate governance by Danske Bank and on course for delivering emission cuts in line with industry ambitions for 2030
• Commercial platform expanded - Lighthouse Navigation
• Modern fleet of 23 vessels with an average age of 5 years including newbuildings

Fleet status
Time charter earnings per ship in the quarter were recorded at USD 9 067 net per day versus BSI index of USD 9 435 net per day for the same period. Average net TCE per ship in the last twelve months amounted to USD 9 263 versus BSI index of USD 7 783 net per day for the same period, representing an outperformance of the BSI index of 19 per cent.

Our long-term outperformance of the BSI index is due to the portfolio of period charter coverage and outsized spot earnings earned by our subsidiary Lighthouse Navigation. The inherent lag in our business means that when the spot markets fall, our outperformance will tend to be higher. Oppositely, when the markets rise rapidly our performance will tend to lag on a short-term basis.

Approximately 30 per cent of remaining ship days in the next four quarters are booked at about USD 10 000 net per day. About 75 per cent of available days in Q4 have been booked at about USD 9 000 net per day.

BELINDA and BELNIPPON (time-chartered vessel) were drydocked in the quarter. The remaining fleet sailed without significant off-hire in the quarter.

BELFAST, an Ultramax newbuilding of 64 000 dwt currently under construction has been amended to deliver January/February 2021 instead of December 2020.

Belships’ fleet modernisation is set to continue with the delivery of newbuildings BELFAST and BELMAR scheduled for delivery during 2021. Belships’ fleet continues to increase and improve with only modest cash investments, signalling the competitive advantage Belships has in sourcing ship finance. Taking into consideration the recent nine acquisitions and two divested vessels at a net cash effect of about USD 3m. The Japanese Ultramax bulk carriers entering the fleet represent the highest quality and lowest fuel consumption available in the market today.