2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Q4 2020 Earnings Presentation
15 slides from 2020 Bulkers's earnings presentation, Jan 28, 2021
Slide 1: 2020 Bulkers Ltd. Presentation results Q4 2020
2020 Bulkers Ltd. Presentation results Q4 2020 28 January 2021 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made 28 January, 2021 solely for information purposes. The Presentation does not constitute any recommendation to buy, sell or otherwise transact with any securities issued by the Company.
Slide 3: Highlights
Highlights Key events during the fourth quarter of 2020: • Net profit of US$3.6 million, EPS of US$0.16 • Achieved average time charter equivalent earnings of approximately US$20,500 per day, gross • Declared total cash distributions of US$0.17 per share for the months of October - December • Transf
Slide 4: Key Financials Q4 2020
Key Financials Q4 2020 Income Statement Comments Net profit of US$3.6 million USD million, except per share data Q4 2020 Operating profit of US$6.2 million EBITDA of US$9.1 million Operating Revenues 14.6 Vessel operating expenses (4.0) Earnings per share of 16 cents Voyage expenses (0.2)
Slide 5: Key Financials Q4 2020
Key Financials Q4 2020 Balance Sheet Summary Comments Shareholders’ equity of US$142.1 million December 31, Interest bearing debt decreased from US$253.8 million to USD million 2020 US$250.0 million during the quarter reflecting scheduled repayments during the quarter Total assets 395.7 Equity 1
Slide 6: Profitable every quarter following delivery of our first vessel
Profitable every quarter following delivery of our first vessel 2020 Bulkers has been profitable every quarter since delivery of the first vessel in August 2019 18 15,7 16 14,6 14 12 10,8 10,6 10 9,1 7,8 7,2 8 6,9 6 4,4 4,8 3,5 3,6 4 2,2 2,4 2 0,9 0,8 1,2 0,3 0 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 202
Slide 7: The Capesize market is off to a strong start in 2021
The Capesize market is off to a strong start in 2021 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 jan feb mar apr mai jun jul aug sep okt nov des 2015-20 max-min range 2020 2021 2015-21 average - Year to date Capesize rates are the strongest seen since 2015, YTD rates 170% above 2020 lev
Slide 8: We are positioned to take advantage of a stronger spot market
We are positioned to take advantage of a stronger spot market Ship name Built Charterer Rate Charter expiry Bulk Sandefjord Aug 19 Koch Index linked + scrubber benefit Aug 22 Bulk Santiago Sep 19 Koch Index linked + scrubber benefit Nov 21 - Jan 22 Bulk Seoul Oct 19 Koch Index linked + scrubber bene
Slide 9: Our dividend potential is significant
Our dividend potential is significant Q1 2021 Indicative dividend capacity (annual run rate) Q2-Q4 2021 Indicative dividend capacity (annual run-rate) 30 40 28 36 35 25 23 30 29 20 17 25 NOK per share NOK per share 22 15 20 12 15 15 10 7 10 8 5 5 1 1 0 0 10 000 15 000 20 000 25 000 30 000 35 000 10
Slide 10: Chinese demand is strong, inventories are low
Chinese demand is strong, inventories are low China steel production China iron ore imports China Iron ore inventories 120 100 50 95 45 100 40 90 80 35 85 Days of consumption 30 Million tons Million tons 80 60 25 75 20 70 40 15 65 10 20 60 5 55 0 0 jan. 15 jan. 16 jan. 17 jan. 18 jan. 19 jan. 20 jul
Slide 11: Steel production is recovering to pre Covid-19 levels
Steel production is recovering to pre Covid-19 levels Global steel production is back above pre Covid-19 levels China leading the recovery, rest of world is accellerating 40% 15% 10% 30% 5% 20% 0% 10% -5% 0% -10% -15% -10% -20% -20% -25% -30% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 2
Slide 12: Limited supply growth on the horizon and high scrapping activity
Limited supply growth on the horizon and high scrapping activity Capesize orderbook as % of fleet Capesize bulk newbuild contracts Capesize scrapping 90 14 120 80 12 100 70 10 80 60 Million DWT 50 8 Million DWT 60 40 6 40 30 4 20 20 10 2 0 0 01.01.1996 01.03.1997 01.05.1998 01.07.1999 01.09.2000 01.
Slide 13: Fleet growth could turn negative during 2H 2021
Fleet growth could turn negative during 2H 2021 Capesize – 2021 expected monthly net fleet growth 2,0 Estimated net fleet growth - Mill DWT 1,5 1,0 0,5 0,0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec -0,5 Source: Clarksons Research Services. Scrapping assumed by at same levels as 2020 13 |
Slide 14: Less hidden supply with % of fleet in drydock down from 2020 levels
Less hidden supply with % of fleet in drydock down from 2020 levels Share of Capesize fleet (DWT) in drydock 7,00% 6,00% 5,00% 4,00% 3,00% 2,00% 1,00% 0,00% 2015 2016 2017 2018 2019 2020 2021 Source: Oceanbolt 14 |
Slide 15: EEXI – New IMO regulations to reduce CO2 emissions
EEXI – New IMO regulations to reduce CO2 emissions Summary Emission reduction through goal-based measure In 2018, the IMO adopted a target to reduce CO2 intensity from international shipping by 40% from 2008 levels by 2030 As a consequence, the EEXI (Energy Efficiency Existing Ship Index) is exp