Belships ASA

Report 4th quarter 2023 - Seite 2

Belships currently has nine vessels chartered out on floating index-linked contracts on varying durations, at an average premium of 116 per cent to the Baltic Supramax Index (BSI-58). Belships has the option to convert any part of the remaining period to a fixed rate based on the prevailing FFA curve from time to time.

Cash breakeven for 2024 is expected to be about USD 10 900 per vessel per day. This includes OPEX of USD 5 300, interest and amortisation of USD 4 850, G&A of USD 450 and drydocking expenses of USD 300 per vessel per day.

Newbuildings
8x Ultramax bulk carriers under construction at Japanese shipyards:

BELGRACE         expected delivery Q4 2024
BELFORTUNE    expected delivery Q4 2025
BELFOX               expected delivery Q4 2025-Q1 2026
BELFUTURE       expected delivery Q1 2026
BELAVANTI         expected delivery H2 2026
BELROSSO         expected delivery H2 2026
BELTEMPO         expected delivery H1 2027
BELVICTORY      expected delivery Q2-Q3 2027

The vessels are leased on time charter for a period of 7 to 10 years from date of delivery with purchase options around current market levels during the charter. Belships is not required to make any downpayment for these transactions. Therefore, this will not impact cash and dividend capacity during construction. Cash breakeven for the vessels upon delivery is about USD 14 200 per day on average.

Belships has no obligation to acquire any of the leased vessels.

The Japanese-designed bulk carriers entering the fleet represent the highest quality and lowest fuel consumption available in the market today and will contribute to further reduce Belships’ carbon emissions on an intensity-basis.

Lighthouse Navigation
Lighthouse Navigation recorded an EBITDA of USD 9.6m for the quarter and continues to contribute to Belships profitability and dividend capacity.  Lighthouse Navigation demonstrated good risk management with limited forward exposure and was able to take advantage of the improved market conditions observed in the quarter.

The average EBITDA per quarter in the last five years has been USD 8.2m.

Sustainability
Belships aims for high standards in corporate governance and is well placed to deliver emission cuts in line with industry ambitions for 2030. Belships publishes a sustainability report on an annual basis (ESG Report) reflecting our commitment to transparency and efforts to meet investor and stakeholder expectations.