2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Q4 2022 Earnings Presentation
16 slides from 2020 Bulkers's earnings presentation, Feb 8, 2023
Slide 1: Q4 2022 Results presentation
2020 Bulkers Ltd. Q4 2022 Results presentation February 8, 2023 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made February 8, 2023 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 Q4 2022 Highlights: • Net profit of US$6.7 million, EPS of US$0.30 • Achieved time charter equivalent earnings of approximately US$25,500 per day, gross • Generated total cash distributions of US$0.27 per share for the months of October – December, 2022 • Extended index-linked time charte
Slide 4: Key Financials Q4 2022
Key Financials Q4 2022 Income Statement Comments Net profit of US$6.7 million USD million, except per share data Q4 2022 Operating profit of US$9.2 million EBITDA of US$12.1 million Operating Revenues 18.5 Vessel operating expenses (5.0) Earnings per share of US$0.30 Voyage expenses and comm
Slide 5: Key Financials Q4 2022
Key Financials Q4 2022 Balance Sheet Summary Comments Shareholders’ equity of US$155.9 million December 31, Interest bearing debt decreased from US$225.0 million to USD million 2022 US$221.3 million during the quarter reflecting scheduled repayments Total assets 379.8 Equity 155.9 Cash flow fr
Slide 6: Cash distributions and Dividends
Cash distributions and Dividends 2020 Bulkers has returned capital to shareholders for 31 consecutive months 78% of paid in capital returned to shareholders so far 2022 Cash distribution of US$1,35 per share (~14% yield]* * Based on closing price of 101,4 on Feb 7th, 2023 6|
Slide 7: Continued strong commercial performance
Continued strong commercial performace Peer group Net TCE Capesize / Newcastlemax 60 000 50 000 40 000 30 000 20 000 10 000 - Q4 21 Q1 22 Q2 22 Q3 22 2020 Bulkers Peer 1 Peer 2 Peer 3 Source: Company reports 7|
Slide 8: 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 2022 2015-22 average • Unseasonally weak market during Q3 and Q4 2022 in spite of decent trade volumes as unwinding of congestion and reduction of fleet inefficiencies ad
Slide 9: Our dividend potential is significant
Our dividend potential is significant 2023 Indicative dividend capacity (annual run-rate)1) 60 Feb-Mar average Q2-Q4 average 52 50 44 40 35 NOk per share 30 27 24 20 20 18 16 13 10 9 10 6 2 2 0 -15 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 -10 -7 Standard Capesize Rate 4 vessels fixed at
Slide 10: Capesize trade growth and fleet productivity
Capesize trade growth and fleet productivity Capesize ton-miles grew by 2% in 2022 vs 2021 Increased fleet efficiencies increased effective supply 36 Bauxite Coal Pre-Covid average 34 Covid-Average Other Manganese ore 32 Minerals % of Capesize fleet in port, 7dma Grains 30 Copper ore Aggregates Ceme
Slide 11: Steel market
-40% -30% -20% -10% 10% 20% 30% 40% 50% 0% Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Steel market Jul-18 Source: Shipping Intelligence Network Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 World ex-China monthly steel output - YoY Jan-22 Apr-22 Jul-22 Oct
Slide 12: Iron Ore
Iron Ore Chinese Iron Ore Imports Chinese Iron Ore Inventories IO Majors’ production guidance 35% 5 Yr Range 2022 350 335 2023 Avg 160 320 325 25% 324 320 150 300 308 310 140 15% 275 260 Million tonnes YOY Change 130 Million Tonnes 250 5% 253 249 120 225 -5% 110 200 192 100 189 187 -15% 175 90 150 2
Slide 13: Chinese fixed asset investment, ex real estate is on the rise
Chinese fixed asset investment, ex real estate is on the rise China fixed asset investment YoY China Local Infrastructure Bond Issuance 4 100 50% 40% 4 000 30% 3 900 20% 10% 3 800 Billion RMB 0% 3 700 -10% -20% 3 600 -30% 3 500 -40% aug.16 aug.17 aug.18 aug.19 aug.20 aug.21 aug.22 feb.16 feb.17 feb.
Slide 14: Chinese property market seeing looser financial conditions
Chinese property market seeing looser financial conditions PBOC Pledged Supplemental Lending China First Time Buyer Mortgage Rate Change In Household Savings China 600 7.50 20 500 18 7.00 16 400 6.50 14 300 6.00 12 200 TRillion RMB Billion RMB % 10 100 5.50 8 0 5.00 6 -100 4 4.50 -200 2 4.00 -300 20
Slide 15: Most favorable supply side in decades
Most favorable supply side in decades Capesize orderbook as % of fleet Capesize newbuild contracts Capesize scrapping 120 500 18 450 16 100 400 14 350 80 12 300 Million DWT 10 60 250 8 200 40 150 6 100 4 20 50 2 0 0 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 1996 1998 20
Slide 16: Meeting new regulations will be a challenge for the industry
Meeting new regulations will be a challenge for the industry 67% of large bulk vessels facing non-compliance by 2030 Vessels built between 2009 and Vessels built post-2016 Vessels built before 20093 20153 unaffected by 20303 313 ships – 15% 1,072 ships – 52% 680 ships – 33% 300 1,385 ships – 67% 12