2020 Bulkers Ltd. · OSL:2020

2020 Bulkers — Q1 2021 Earnings Presentation

13 slides from 2020 Bulkers's earnings presentation, Apr 28, 2021

  1. Slide 1: Q1 2021 Results presentation

    2020 Bulkers Ltd. Q1 2021 Results presentation April 28, 2021 |

  2. Slide 2: Disclaimer

    Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made April 28, 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. N

  3. Slide 3: Highlights

    Highlights Key events during the first quarter of 2021: • Net profit of US$5.8 million, EPS of US$0.26 • Achieved average time charter equivalent earnings of approximately US$23,900 per day, gross • Declared total cash distributions of US$0.26 per share for the months of January – March 2021 • Conve

  4. Slide 4: Key Financials Q1 2021

    Key Financials Q1 2021 Income Statement Comments  Net profit of US$5.8 million USD million, except per share data Q1 2021  Operating profit of US$8.2 million  EBITDA of US$11.1 million Operating Revenues 17.0 Vessel operating expenses (4.1)  Earnings per share of 26 cents Voyage expenses and com

  5. Slide 5: Key Financials Q1 2021

    Key Financials Q1 2021 Balance Sheet Summary Comments  Shareholders’ equity of US$144.5 million USD million March 31, 2021  Interest bearing debt decreased from US$250 million to US$246.4 million during the quarter reflecting scheduled Total assets 395.2 repayments during the quarter Equity 144.5

  6. Slide 6: Capesize rates have had the strongest start to the year since 2010

    Capesize rates have had the strongest start to the year since 2010 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 sep sep sep sep okt okt okt okt okt mar mar mar mar des des des jan jan jan jan jan mai mai mai mai mai nov nov nov nov feb feb feb feb apr apr apr apr jun jun jun jun jul jul

  7. Slide 7: Still, freight costs are low relative to commodity prices

    Still, freight costs are low relative to commodity prices Brazil-China freight cost as a % of Brasil origin iron ore prices 35% 30% 25% 20% 15% 10% 5% 0% 2013 2014 2015 2016 2017 2018 2019 2020 Historical average freight costs of 16% vs spot iron ore prices would imply standard capesize rates of US$

  8. Slide 8: Our dividend potential is significant

    Our dividend potential is significant May-December 2021 Indicative dividend capacity (annual run-rate)1) 60 58 53 50 48 42 40 37 NOK Per share 32 30 26 21 20 16 10 10 5 0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 55 000 60 000 Standard Capesize rate 2 vessels fixed at US$2

  9. Slide 9: Steel production is accelerating

    Million tons 60 65 70 75 80 85 90 95 100 mai. 16 okt. 16 mar. 17 aug. 17 jan. 18 jun. 18 nov. 18 apr. 19 sep. 19 feb. 20 Sources: Shipping intelligence network, Arrow shipbroking group jul. 20 China monthly steel production des. 20 Million tons Steel production is accelerating 1.6 1.7 1.8 1.9 2.0 2.

  10. Slide 10: Strong iron ore fundamentals

    Million tons 100 110 120 20 30 40 50 60 70 80 90 jan. 07 aug. 07 mar. 08 okt. 08 mai. 09 des. 09 jul. 10 feb. 11 sep. 11 apr. 12 nov. 12 jun. 13 jan. 14 Sources: Shipping intelligence network, Arrow shipbroking group aug. 14 mar. 15 okt. 15 China iron ore imports mai. 16 Strong iron ore fundamentals

  11. Slide 11: 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.

  12. Slide 12: 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

  13. Slide 13: 2020 Bulkers summary

    2020 Bulkers summary Fleet of 8 Newcastlemax vessels, average age 1 year, the most modern fleet among listed peers Our index vessels earn ~ US$50,000 per day at today’s spot rates 2021 CBE budget of US$14,500/ship/day FFA curve implies TCE for a scrubber fitted Newcastlemax of US$40,000 per day for

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