2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Q3 2019 Earnings Presentation
17 slides from 2020 Bulkers's earnings presentation, Nov 7, 2019
Slide 1: Third Quarter 2019 Results
2020 Bulkers Ltd. Third Quarter 2019 Results 7 November, 2019 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made 7 November, 2019 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 third quarter of 2019: • First quarterly net profit of US$0.8 million with 65 operational ship days • Delivery of two Newcastlemax from New Times Shipyard. Both vessels commenced their respective timecharters with Koch Industries upon departing the yard • Achieved av
Slide 4: Key Financials Q3 2019
Key Financials Q3 2019 Income Statement Comments First positive net profit of US$0.8 millon for Q3, 2019 USD million Q3 2019 Earnings per share US$0.03 Operating revenues of US$2.2 million Operating Revenues 2,2 “Bulk Sandefjord” and “Bulk Santiago” commencing their first Vessel operating ex
Slide 5: Key Financials Q3 2019
Key Financials Q3 2019 Balance Sheet Summary Comments Equity ratio of 68% September Interest bearing debt of US$64.3 million and reflects debt financing of the delivery instalments for Bulk Sandefjord and USD million 30, 2019 Bulk Santiago Total assets 204,9 Strong liquidity position with US$2
Slide 6: Dividends / Capital Allocation
Dividends / Capital Allocation - Declared first monthly dividend of US$0.055 per share payable in November. - Dividend capacity is expected to increase significantly as the remaining newbuildings deliver. Q3 2019 had only 65 operational days, fully delivered the Company will have 2,920 operational d
Slide 7: Company overview
=BULKERS Company overview
Slide 8: Our business model
Our business model Invest at attractive entry point Full alignment of interest as The right assets - 8 Scrubber founders & management are fitted Newcastlemax with largest shareholders proven premium vs Capesize Stop investing as asset values Low cost and risk increases corporate structure Free cash
Slide 9: Our ships earn a significant premium to a standard Capesize
Our ships earn a significant premium to a standard Capesize High Performing assets delivering into a strong market 15% Larger cargo intake vs. standard Capesize1) - Proven premium vs. standard Capesize1) based on 6 concluded fixtures with 1st class + counterparts 20% Lower fuel consumption than stan
Slide 10: Our low breakeven gives downside protection and dividend potential
Our low breakeven gives downside protection and dividend potential Our cash breakeven of $14,150/day is covered with standard Capesize rates at $7,145 - giving good downside protection 190 Standard Capesize rate “ 7 145 38% Newcastlemax Premium (last done in the market) “ 2 715 140 Capesize dayrate
Slide 11: Market summary
=BULKERS Market summary
Slide 12: Limited supply growth on the horizon
Limited supply growth on the horizon Dry bulk orderbook as % of fleet Dry bulk Newbuild contracts(1) Number of active shipyards(2) 120 80% 600 551 70% 100 500 484 60% 455 80 400 50% Number of shipyards 370 Orderbook as % of fleet USDbn 60 315 40% 300 283 249 248 30% 40 229 200 206 20% 161 20 100 10%
Slide 13: Trade growth for key commodities traded by Capesize and Newcastlemax has been strong
Trade growth for key commodities traded by Capesize and Newcastlemax has been strong and relatively stable historically World seaborne iron ore trade (28.2% of dry bulk trade in 2018) World seaborne coal trade (23.8% of dry bulk trade in 2018) 1,60 1,40 1,40 1,20 1,20 The iron ore trade has been The
Slide 14: Iron ore shipments are recovering after 1H disruptions
Iron ore shipments are recovering after 1H disruptions Brazilian iron ore shipments Australian iron ore shipments Million tonnes, 3-week moving average Million tonnes, 3-week moving average 10 20 9 18 8 7 16 6 5 14 4 12 3 2 10 jan feb mar apr mai jun jul aug sep okt nov des jan feb mar apr mai jun j
Slide 15: China will eventually need to restock iron ore inventories
China will eventually need to restock iron ore inventories Chinese steel production remains strong… While Chinese mills have been destocking iron ore inventories1) 100 0,8 90 0,7 80 0,6 70 0,5 Tons per month (million) 60 50 0,4 40 0,3 30 0,2 20 0,1 10 0 0 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Jan-15 Ja
Slide 16: Impact of IMO 2020 regulations is reducing effective supply
Impact of IMO 2020 regulations is reducing effective supply Capesize scrubber retrofitting timeline Increased reports of delays for scrubber retrofits 300 number of ships fitted with scrubbers Average retrofit times estimated around 40 days, with reports 250 of some retrofits taking up to 60 days
Slide 17: Questions?
=BULKERS Questions?