2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — DNB Energy & Shipping Conference 2021
12 slides from 2020 Bulkers's conference presentation, Mar 11, 2021
Slide 1: 2020 Bulkers Ltd. – DNB Energy & Shipping Conference
2020 Bulkers Ltd. DNB Energy & Shipping Conference March 11, 2021 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made 11 March, 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. N
Slide 3: 2020 Bulkers summary
2020 Bulkers summary 8 Newcastlemax vessels on the water, average age 1 year => most modern fleet among peers Full alignment of interest as Fleet earning >35% premium to founders & management are standard capesize vessels + largest shareholders scrubber premium Low cost Only listed dry bulk company
Slide 4: 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 9.1 US$ mill 10 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 20
Slide 5: We are positioned for a strong spot market in 2021
We are positioned for a strong spot market in 2021 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 benefit Dec 21
Slide 6: Our market has had the strongest start to the year since 2010
Our market has had the strongest start to the year since 2010 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 sep sep sep sep okt okt okt okt okt mar mar mar mar des des des jan jan jan jan jan mai mai mai mai mai nov nov nov nov feb feb feb feb apr apr apr apr jun jun jun jun jul jul jul j
Slide 7: Freight costs are low relative to commodity prices
Freight costs are low relative to commodity prices Brazil-China freight cost as a % of spot iron ore prices 80% 70% 60% 50% 40% 30% 20% 10% 0% 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 Source: Arrow Shipbroking G
Slide 8: Our dividend potential is significant
Our dividend potential is significant Q2-Q4 2021 Indicative dividend capacity (annual run-rate) 50 48 45 42 40 37 35 32 30 NOK per share 27 25 21 20 16 15 11 10 6 5 0 0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 Standard Capesize rate Indicative calculation based on current
Slide 9: 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 10: Steel Production is recovering beyond pre Covid-19 levels
Steel Production is recovering beyond pre Covid-19 levels Global steel production is back above pre-Covid levels China leading the recovery, rest of the world is accellerating 40% 15% 10% 30% 5% 20% 0% 10% -5% -10% 0% -15% -10% -20% -20% -25% -30% -30% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Slide 11: 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 8 Million DWT Million DWT 50 60 40 6 40 30 4 20 20 2 10 0 0 01.01.1996 01.03.1997 01.05.1998 01.07.1999 01.09.2000 01.
Slide 12: 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