Belships ASA - Report 4th quarter 2020

THE MARKET IS BACK – 2021 OUTLOOK IMPROVED        

HIGHLIGHTS

•  Operating income of USD 59.9 million (Q4 2019: USD 38.9m)
•  BITDA of USD 11.3m (USD 8.5m)
•  Net result of USD 0.9m (USD 2.1m)
•  Net TCE per ship of USD 10 502 per day versus BSI index of USD 10 211 net per day
•  33 per cent of available ship days in 2021 are booked at USD 11 716 net per day
•  Positioned to take advantage of improved market with 80 per cent open days in Q2-Q4 2021
•  BELFORT and BELORIENT sold with delivery in Q2 2021 as part of fleet modernising with two newbuildings delivering in 2021
•  Record EBITDA of USD 5.6m from management companies after rebound and expansion
•  Modern fleet of 23 vessels with an average age of 5 years 

Fleet status 
Time charter earnings per ship in the quarter were recorded at USD 10 502 net per day versus BSI index of USD 10 211 net per day for the same period. Average net TCE per ship in the last two years amounted to USD 9 992 versus BSI index of USD 8 612 net per day for the same period, representing an outperformance of the BSI index of 16 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. Conversely, when the markets rise rapidly our performance will tend to lag on a short-term basis. 

Approximately 30 per cent of available days in 2021 are booked at about USD 11 700 net per day. About 90 per cent of available days in Q1 2021 have been booked at about USD 12 200 net per day.

BELMONT and BELOCEAN were drydocked in the quarter. The remaining fleet sailed without significant off-hire in the quarter. 

BELFORT and BELORIENT have been sold and deliveries are expected within the second quarter of 2021. Net cash flow upon delivery will be approximately USD 1.0m after repayment of outstanding loans.

BELFAST, an Ultramax newbuilding of 64 000 dwt was delivered in January 2021 from Imabari Shipyard in Japan.

BELMAR, an Ultramax newbuilding of 64 000 dwt is expected to be delivered by the end of Q3 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 nine acquisitions and four divested vessels the net cash effect amounts to about USD 1.5m. The Japanese-designed Ultramax bulk carriers entering the fleet represent the highest quality and lowest fuel consumption available in the market today.