2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Pareto Securities Oil & Offshore Conference 2019
13 slides from 2020 Bulkers's conference presentation, Sep 12, 2019
Slide 1: 2020 Bulkers Ltd.
2020 Bulkers Ltd. Pareto Securities Oil & Offshore Conference 12 September, 2019 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made 12 September, 2019 solely for information purposes. The Presentation does not constitute any recommendation to buy, sell or otherwise transact with any securities issued by the Compan
Slide 3: A new business model is needed for listed drybulk companies
A new business model is needed for listed drybulk 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 Rebased share price 500 400 150 USDm 3
Slide 4: 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 5: 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 4 concluded fixtures with 1st class counterpart 20% Lower fuel consumption than stand
Slide 6: Robust Cash Breakeven
Robust Cash Breakeven Normalized cash break-even per vessel, per day Capesize historical rates(3) vs 2020 cash breakeven 165 Opex USD/d 4 750 160 155 G&A " 1 000 150 145 Capesize dayrate (USD'000/day) 140 80 Debt amortization " 4 566 70 Interest expense(1) " 3 822 60 2020 Bulkers Cash Breakeven (CBE
Slide 7: Potential free cash flow to equity per share
Potential free cash flow to equity per share NOK 80 70 FREE CASH FLOW TO EQUITY PER SHARE 60 50 40 30 20 10 2020 2021 - 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 STANDARD CAPESIZE RATE - Assumes open ships chartered at Baltic Capesize Index + 35% and 60% share of scrubber econom
Slide 8: 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 20 20 18 18 16 16 14 14 12 12 10 10 jan feb mar apr mai jun jul aug sep okt nov des jan jan feb mar mar apr ma
Slide 9: 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 10: 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 Average retrofit times estimated around 40 days, with reports 250 of some retrofits taking up to 60 days 200 150 Some repair yards have overb
Slide 11: 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 12: Key reasons for investing in 2020 Bulkers
Key reasons for investing in 2020 Bulkers - Assets with proven earnings power delivering at attractive point in the cycle - 2020 Bulkers´ vessels earn their cash breakeven when a standard Capesize earns ~USD 9,000 per day. - Solid Balance sheet - Significant dividend yield capacity driven by low cas
Slide 13: Questions?
=BULKERS Questions?
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