2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Pareto Securities' Energy Conference 2020
12 slides from 2020 Bulkers's conference presentation, Sep 17, 2020
Slide 1: 2020 Bulkers Ltd.
2020 Bulkers Ltd. Pareto Securities’ Energy Conference 17 September, 2020 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made 17 September, 2020 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: Our business plan
Our business plan 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 Low cost Stop investing as asset values corporate structure => G&A and risk increases budg
Slide 4: Business update
Business update - All vessels delivered and on contract with strong charterers - Strong commercial performance since delivery of first vessel in August 2019. Outperformed Capesize index 12 out of 13 months due to: Newcastlemax earnings premium vs standard Capesize and a balanced mix of fixed and ind
Slide 5: Track record of strong commercial performance
Track reccord of strong commercial performance Commercial performance relative to Baltic 5TC index 50 000 14 000 Relative performance in TCE in USD per day 12 000 40 000 10 000 8 000 USD per day 30 000 6 000 4 000 20 000 2 000 10 000 0 -2 000 0 -4 000 aug. 19 sep. 19 okt. 19 nov. 19 des. 19 jan. 20
Slide 6: Attractive cash breakeven gives downside resilience
Attractive cash breakeven gives downside resilience Cash breakeven 2020 Bulkers CBE vs historical Capesize rates 200 000 - Operating cash breakeven budget of ~USD 14,000 per day 180 000 for 2021. Includes Opex, G&A and debt service 160 000 - Based on achieved Newcastlemax premium versus standard Cap
Slide 7: Capex program concluded, dividend potential is significant
Capex program concluded, dividend potential is significant Cash breakeven Indicative free cash available for dividends in 2021 50 - Monthly dividends resumed following delivery of last 45 newbuilding in June 2020 40 - 2020 Bulkers has a strategy to pay out the majority of operating free cash flow as
Slide 8: Market update
=BULKERS Market update
Slide 9: High Chinese steel production requires more iron ore imports
High Chinese steel production requires more iron ore imports Chinese steel production are at record high levels While iron ore inventories are at low levels historically 50 95 000 45 85 000 40 Days of consumption Million tons 35 75 000 30 65 000 25 20 jan. 09 jul. 09 jan. 10 jul. 10 jan. 11 jul. 11
Slide 10: Australian and Brazilian iron ore exports
Million tons, 3 week moving avg 10 12 14 16 18 20 jan.16 mai.16 sep.16 jan.17 mai.17 sep.17 jan.18 mai.18 sep.18 jan.19 mai.19 sep.19 jan.20 Australian iron ore exports at record levels in 1H 2020 mai.20 3 Million tons, 3 week moving avg 4 5 6 7 8 9 jan.16 mai.16 sep.16 jan.17 mai.17 sep.17 Increase
Slide 11: Brazil iron ore exports should be picking up with Vale guiding for significant increase
Brazil iron ore exports should be picking up with Vale guiding for significant increase in production in 2H vs 1H 2020 Strong correlation between Vale production and Capesize rates Comments 110 Q3 volumes estimated based 35 000 on AIS data 105 Q4 volumes estimated based on Vale full year guidance -
Slide 12: Limited supply growth on the horizon and high scrapping activity
Limited supply growth on the horizon and high scrapping activity Dry bulk orderbook as % of fleet Capesize bulk newbuild contracts Capesize scrapping(1) 80% 16 90 70% 80 14 60% 70 12 50% 60 Orderbook as % of fleet 10 Million DWT 50 40% 8 40 30% 6 30 20% 20 4 10% 10 2 0% 0 2005 2006 2007 2008 2009 20
2020 Bulkers — Pareto Securities' Energy Conference 2020 on 6ix