2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Clarksons Platou Securities Drybulk Seminar 2019
14 slides from 2020 Bulkers's conference presentation, Oct 29, 2019
Slide 1: 2020 Bulkers Ltd. - Clarksons Platou Securities Drybulk Seminar
2020 Bulkers Ltd. Clarksons Platou Securities Drybulk Seminar 29 October, 2019 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made 29 October, 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: 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 6 concluded fixtures with 1st class + counterparts 20% Lower fuel consumption than stan
Slide 6: FY 2020 cash breakeven budget per day
FY 2020 Cash breakeven budget of USD 14 150 per day 1) Last done index fixture compared to a standard Capesize 2) Capesize historical rates(3) 165 160 155 Standard Capesize rate “ 7 145 150 145 Capesize dayrate (USD'000/day) 38% Newcastlemax Premium (last done in the market) “ 2 715 140 80 75% of sc
Slide 7: Potential free cash flow to equity per share
Potential free cash flow to equity per share NOK Potential Free Cash Flow to Equity Per Share 70 FREE CASH FLOW TO EQUITY PER SHARE 60 50 40 30 20 10 - 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 2020 2021 STANDARD CAPESIZE RATE - Assumes open ships chartered at Baltic Capesize In
Slide 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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. - Based on last done index fixtures – 2020 Bulkers earns its cash breakeven when a standard Capesize earns ~USD 7,000 per day. - Solid Balance sheet - Significant dividend yield
Slide 14: Questions?
=BULKERS Questions?
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