2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — SEB Nordic Seminar - Copenhagen 2020
12 slides from 2020 Bulkers's conference presentation, Jan 7, 2020
Slide 1: SEB Nordic Seminar - Copenhagen
2020 Bulkers Ltd. 2020- Copenhagen SEB Nordic Seminar Bulkers Ltd. 7 January, 2020 SEB Nordic Seminar - Copenhagen 7 January, 2020 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made 7 January, 2020 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: 2020 Bulkers - Overview
2020 Bulkers - Overview - Dry bulk shipping company listed in Oslo since July 2019 - Fleet of 8x «Eco-design» Newcastlemax dry bulk vessels - Low fuel consumption, large cargo intake vs standard Capesize - Exhaust gas cleaning systems installed - Robust capital structure with low cash break-even - F
Slide 4: Our fleet
Our fleet High Performing assets with favorable environmental footprint 2020 Bulkers fleet vs standard Capesize1) Benefits of 2020 Bulkers fleet vs Standard Capesize - 15 % larger cargo intake vs standard Capesize - 30% reduction in CO2 emissions per ton transported - 20 % lower fuel consumption vs
Slide 5: Where in the cycle is dry bulk shipping?
Where in the cycle is dry bulk shipping? Capesize Time charter Earnings1) since 2000 - Earnings are recovering from decade lows 100 000 - Still 110% upside to average rates since 2000 80 000 60 000 40 000 20 000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2
Slide 6: Why has drybulk shipping been through a recession?
Why has drybulk shipping been through a recession? Demand was not the problem… …but the industry ordered too many ships 2 750 90% - Trade of key commodities1) has - Excessive ordering during 2 550 80% last upcycle drove the expanded 27 out of the last 29 years orderbook to 80% of the - Average growt
Slide 7: Limited capacity growth expected in the years ahead
Limited capacity growth expected in the years ahead Dry bulk Newbuild contracts1) Number of active shipyards2) 120 600 551 100 500 484 455 80 400 Number of shipyards 370 USDbn 60 315 300 283 249 248 40 229 200 206 161 20 100 81 51 55 0 0 Bulk carriers No of yards taking orders (1) For vessels larger
Slide 8: New emission regulations for shipping from Jan 1st 2020
New emission regulations for shipping from Jan 1st 2020 New IMO regulations took effect on January 1st 2020 Maximum SOx (Sulphur Oxide) emissions from shipping to be reduced from 3.5% to 0.5% Three ways for a ship owner to comply: 1. Install exhaust gas scrubbers − Enables ship to keep running
Slide 9: A new business model is needed for listed dry bulk companies
Even if you get the cycle right - A new business model is needed for listed dry bulk companies Significant value destruction in shipping stocks historically… …however the underlying business was good 800 ~35% IRR buying a Capesize in 2002 holding until 2018 700 250 5.5x Money multiple 600 200 13 Reb
Slide 10: Downside protection and dividend potential
Downside protection and dividend potential Downside protection with index linked ships covering their 2020 CBE of 14,150/day with standard Capesize rates at USD 6,475 190 Standard Capesize rate 6 475 38% Newcastlemax Premium (last done in the market) 2 470 140 Capesize dayrate (USD'000/day) 80 75% o
Slide 11: Key reasons for investing in 2020 Bulkers
Key reasons for investing in 2020 Bulkers - Efficient assets with proven earnings power delivering at attractive point in the cycle. - Based on last done index fixtures – 2020 Bulkers earns its cash break-even when a standard Capesize earns ~USD 6,500 per day. - Solid Balance sheet - Significant div
Slide 12: Questions?
=BULKERS Questions?