2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Investor Presentation (September 2024)
14 slides from 2020 Bulkers's investor presentation, Sep 12, 2024
Slide 1: 2020 Bulkers Ltd. Company presentation
2020 Bulkers Ltd. Company presentation September 12, 2024 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") with data as of September 12, 2024 solely for information purposes. The Presentation does not constitute any recommendation to buy, sell or otherwise transact with any securities issued by the Co
Slide 3: 2020 Bulkers Investment Case
2020 Bulkers Investment Case Fleet of 6 Scrubber-fitted Newcastlemax average age ~4.5 years Capesize ton-mile growth of 6.5% YTD Market cap ~$285 mln Low orderbook at 7% with limited Net debt ~$93 mln yard capacity before 2028 51 consecutive monthly distributions Net profit positive every quarter si
Slide 4: Drybulk has the highest upside to historical highs and the lowest orderbook
Drybulk has the highest upside to historical highs and the lowest orderbook 5 yr old vessel value upside to historical peak 1 year TC rates upside to historical peak 60% 60% 142% 603% 140% 600% 53% 53% 50% 50% 120% 500% 106% 100% 40%40% 40% 40% 37% 400% 37% 80% 30% 30% 300% 60% 210% 43% 20% 20% 18%
Slide 5: Robust cash breakeven
Robust cash breakeven 250 000 200 000 150 000 100 000 50 000 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Historical capesize rates 2020 Bulkers Capesize equivalent CBE • Cash breakeven of US$11,800 per day, requires Capesize rates of US$
Slide 6: Our dividend potential is significant
Our dividend potential is significant Illustrative annualized FCF per share 45 40 39 35 32 30 NOK per share 25 25 20 18 15 11 10 4 5 0 10 000 15 000 20 000 25 000 30 000 35 000 Standard Cape rate Sept – December 2024 FFA curve is US$27,500 20 year average rates are US$32,500 1) Indicative calculatio
Slide 7: Market review
Market review 2024- Double the fun! 90 000 80 000 YTD RATES 100% above 2023 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 J J F F M M A M M J J J J A S S O O N N D 2015-23 max-min range 2024 2023 • Capesize ton-miles grew 6.5% YTD 2024 • Brazilian Iron Ore shipments up 7% YTD • Bauxite tonne-mi
Slide 8: Capesize trade growth and fleet productivity
Capesize trade growth and fleet productivity Capesize ton-miles grew 6.5% YoY Fleet congestion in low end of range 36.00 Iron ore 34.00 % of Capesize fleet in port, 7 dma 32.00 Bauxite 30.00 28.00 Other 26.00 24.00 Coal 22.00 -100 0 100 200 300 400 500 20.00 Billion ton-miles • Notably, the iron ore
Slide 9: Iron ore inventories in China
facilities for exports to other Asian countries and the physical DCE contracts requires iron ore stock Iron Ore Iron Ore inventories in China have risen.. However, the inventories in terms of days of consumption is on the long term average 150 140 130 Million Tonnes 120 110 100 90 80 1 3 5 7 9 11131
Slide 10: Tonne-mile demand to rocket on more iron ore from Atlantic
facilities for exports to other Asian countries and the physical DCE contracts requires iron ore stock Tonne-mile demand to rocket on more iron ore from Atlantic Atlantic volumes increasing Will require 50% of the orderbook* Simandou Guinea Start 2025- full capacity 2028 Vale capacity increase by 20
Slide 11: Bauxite
Bauxite Bauxite exports from Guinea 500 450 400 350 300 250 200 150 100 1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115 121 127 133 139 145 151 157 163 169 175 181 187 193 199 205 211 217 223 229 235 241 247 253 259 265 271 277 283 289 295 301 307 313 319 325 331 337 343 349 355 361 day
Slide 12: Steel market
Steel market World ex-China steel output - YoY China steel output – YoY • Y-o-y global steel output on the rise, estimated • Chinese steel output to remain flat for 2024 3.5% growth for 2024 • New rebar standard implemented in June • India still going strong with 8% increase y-o-y and 2024, requirin
Slide 13: Drydock rush in the coming years
Drydock rush in the coming years Average time/days spent at drydock shipyard by age: Average capesize fleet age: • As we move closer to 2030, the drydock impact will continue to boost cape/newc freight rates • 2010 was a big delivery year and over 10% of the fleet Drydock data shows 3,2 % further im
Slide 14: Favorable supply side dynamics
Favorable supply side dynamics % of Capesize fleet on order Nominal orderbook vs existing fleet Active shipyards down 50% from peak 120 450 Capesize 350 Bulkcarrier 400 Fleet 100 Capesize 350 Bulker 300 # Active shipyards >20,000 DWT Orderbook 80 300 Million DWT 250 250 60 200 200 40 150 100 150 20
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