2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Pareto Energy Conference 2021 / DNB's Energy & Shipping Conference 2021
14 slides from 2020 Bulkers's conference presentation, Jan 12, 2021
Slide 1: 2020 Bulkers Ltd. Company Presentation
2020 Bulkers Ltd. Company Presentation 12 January 2021 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made 12 January, 2021 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: Profitable every quarter following delivery of the first vessel
Profitable every quarter following delivery of the first vessel 2020 Bulkers has been profitable every quarter since delivery of the first vessel in August 2019 18 15,7 16 14 10,8 US$ Million 12 10,6 10 7,8 8 6,9 7,2 6 4,4 4,8 3,5 4 2,2 2,4 0,9 0,8 1,2 2 0,3 0 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
Slide 4: The Capesize market is off to a strong start in 2021
The Capesize market is off to a strong start in 2021 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 2. jan. 2. feb. 2. mar. 2. apr. 2. mai. 2. jun. 2. jul. 2. aug. 2. sep. 2. okt. 2. nov. 2. des. 2015-21 max-min range 2020 2021 2015-21 average - Year to date Capesize rates are the stronges
Slide 5: We are positioned to take advantage of a stronger spot market
We are positioned to take advantage of a stronger spot market Ship name Built Charterer Rate Charter expiry Bulk Sandefjord Aug 19 Koch Index linked + scrubber benefit Aug 22 Bulk Santiago Sep 19 Koch Index linked + scrubber benefit Nov 21 - Jan 22 Bulk Seoul Oct 19 Koch Index linked + scrubber bene
Slide 6: Our dividend potential is significant
Our dividend potential is significant Q1 2021 Indicative dividend capacity (annual run rate) Q2-Q4 2021 Indicative dividend capacity (annual run-rate) 30 40 28 36 35 25 23 30 29 20 17 25 NOK per share NOK per share 22 15 20 12 15 15 10 7 10 8 5 5 1 1 0 0 10 000 15 000 20 000 25 000 30 000 35 000 10
Slide 7: Chinese demand is strong, inventories are low
Million tons 55 60 65 70 75 80 85 90 95 100 jan. 15 jul. 15 jan. 16 jul. 16 jan. 17 jul. 17 jan. 18 jul. 18 jan. 19 China steel production jul. 19 Sources: Shipping intelligence network, Arrow shipbroking group jan. 20 jul. 20 Million tons 100 120 0 20 40 60 80 2007 2008 2009 2010 2011 2012 2013 201
Slide 8: Steel production is recovering to pre Covid-19 levels
Steel production is recovering to pre Covid-19 levels Global steel production is back above pre-Covid levels China leading the recovery, rest of world is accelerating 40% 15% 10% 30% 5% 20% 0% 10% -5% -10% 0% -15% -10% -20% -25% -20% -30% -30% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Slide 9: Limited supply growth on the horizon and high scrapping activity
Limited supply growth on the horizon and high scrapping activity Capesize orderbook as % of fleet Capesize bulk newbuild contracts Capesize scrapping 90 14 120 80 12 100 70 10 80 60 Million DWT 50 8 Million DWT 60 40 6 40 30 4 20 20 10 2 0 0 01.01.1996 01.03.1997 01.05.1998 01.07.1999 01.09.2000 01.
Slide 10: Fleet growth could turn negative during 2H 2021
Fleet growth could turn negative during 2H 2021 Capesize – 2021 expected monthly net fleet growth 2,0 Estimated net fleet growth - Mill DWT 1,5 1,0 0,5 0,0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec -0,5 Source: Clarksons Research Services. Scrapping assumed by at same levels as 2020 10 |
Slide 11: Current freight rates are low compared to commodity prices
10% 15% 20% 25% 30% 35% 40% 0% 5% jan. 14 mai. 14 sep. 14 jan. 15 mai. 15 sep. 15 jan. 16 mai. 16 sep. 16 jan. 17 mai. 17 sep. 17 Source: Clarksons Research Services, Arrow Shipbroking Group jan. 18 mai. 18 sep. 18 jan. 19 mai. 19 sep. 19 jan. 20 Freight costs Brazil-China as a % of cargo value mai.
Slide 12: Congestion is low
Congestion is low Share of global Capesize fleet (DWT) in congestion 17% 16% 15% 14% 13% 12% 11% 10% 9% jan.20 feb.20 mar.20 apr.20 mai.20 jun.20 jul.20 aug.20 sep.20 okt.20 nov.20 des.20 jan.21 Arrow Shipbroking Group 12 |
Slide 13: Share of Capesize fleet in drydock is down from early 2020 levels
Share of Capesize fleet in drydock is down from early 2020 levels Share of Capesize fleet (DWT) in drydock 7,00% 6,00% 5,00% 4,00% 3,00% 2,00% 1,00% 0,00% 2015 2016 2017 2018 2019 2020 2021 Source: Oceanbolt 13 |
Slide 14: EEXI – New IMO regulations to reduce CO2 emissions
EEXI – New IMO regulations to reduce CO2 emissions Summary Emission reduction through goal-based measure In 2018, the IMO adopted a target to reduce CO2 intensity from international shipping by 40% from 2008 levels by 2030 As a consequence, the EEXI (Energy Efficiency Existing Ship Index) is exp
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