2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Pareto Energy Conference 2023
9 slides from 2020 Bulkers's conference presentation, Sep 21, 2023
Slide 1: 2020 Bulkers Ltd - Pareto Energy Conference
2020 Bulkers Ltd Pareto Energy Conference September 21, 2023 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") with data as of September 21, 2023 solely for information purposes. The Presentation does not constitute any recommendation to buy, sell or otherwise transact with any securities issued by the Co
Slide 3: 2020 Bulkers Investment Case
2020 Bulkers Investment Case Fleet of 8 Scrubber-fitted Newcastlemax average age 3.5 years Capesize ton-mile growth of 4.25% Market cap ~$200 mln YTD 2023 Net debt $199 mln Record low orderbook of 4.5% with Broker values $467 mln limited yard capacity before 2H 2027 38 consecutive monthly distributi
Slide 4: Our dividend potential is significant
Our dividend potential is significant Indicative dividend capacity – All vessels operating on index linked charters1) 60 50 40 NOK per share 30 20 10 - 10 000 15 000 20 000 25 000 30 000 35 000 40 000 -10 Cape rate Average Capesize rate last 20 years is $33,500 per day2) Oct - Dec 2023 Capesize FFA
Slide 5: Market review
Market review 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 J F M A M J J A S O N D 2015-22 max-min range 2023 2015-22 average • Capesize ton-miles up 4.25% YTD • Demand growth offset by unwinding of congestion to historically low levels • Entering peak season for iron ore and bau
Slide 6: Capesize demand is up, but offset by congestion unwinding
Capesize demand is up, but offset by congestion unwinding Ton-miles up 4.25% YTD Driven by Iron ore and bauxite volumes Congestion down to historical lows 1250 34 Bauxite 1200 Iron ore 32 Grains 1150 Pet coke 30 % of capesize fleet in port, 7dma Cement/Clinker 1100 Billion ton-miles Aggregates 28 10
Slide 7: Steel market
Steel market World ex-China monthly steel output - YoY China monthly steel output – YoY 50% 25% 40% 20% 15% 30% 10% 20% 5% 10% 0% 0% -5% -10% -10% -20% -15% -30% -20% -40% Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 -25% jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 jan. 23 Source: Shipping I
Slide 8: Iron Ore
Iron Ore China Iron Ore Imports up 7% YTD Iron Ore inventories at seasonal lows 40% 160 150 30% 140 20% 130 Million Tonnes 120 YOY Change 10% 110 100 0% 90 -10% 80 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 Week -20% jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 jan. 23 5 Yr Range 2022 202
Slide 9: Favorable supply outlook
Favorable supply outlook Capesize % of fleet on order Limited yard capacity 140 120 Limited yard capacity before 2027 for Capesize / Newcastlemax 100 Pricing ~$70 mill for a Newcastlemax with scrubber % of fleet on order 80 Tightening payment terms 60 40 20 0 mar. 97 mar. 04 mar. 11 mar. 18 ma