2020 Bulkers Ltd. · OSL:2020

2020 Bulkers — Q2 2021 Earnings Presentation

15 slides from 2020 Bulkers's earnings presentation, Aug 11, 2021

  1. Slide 1: 2020 Bulkers Ltd. Q2 2021 Results presentation

    2020 Bulkers Ltd. Q2 2021 Results presentation August 11, 2021 |

  2. Slide 2: Disclaimer

    Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made August 11, 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.

  3. Slide 3: Highlights

    Highlights Key events during the second quarter of 2021: • Net profit of US$17.1 million, EPS of US$0.77 • Achieved average time charter equivalent earnings of approximately US$39,500 per day, gross • Declared total cash distributions and dividends of US$0.75 per share for the months of April – June

  4. Slide 4: Key Financials Q2 2021

    Key Financials Q2 2021 Income Statement Comments  Net profit of US$17.1 million USD million, except per share data Q2 2021  Operating profit of US$19.6 million  EBITDA of US$22.5 million Operating Revenues 28.4 Vessel operating expenses (4.3)  Earnings per share of 77 cents Voyage expenses and c

  5. Slide 5: Key Financials Q2 2021

    Key Financials Q2 2021 Balance Sheet Summary Comments  Shareholders’ equity of US$148.1 million USD million June 30, 2021  Interest bearing debt decreased from US$246.4 million to US$242.7 million during the quarter reflecting scheduled Total assets 394.4 repayments during the quarter Equity 148.1

  6. Slide 6: Dividends and cash distributions

    Dividends and cash distributions Monthly dividends and cash distributions 0.35 0.3 0.25 USD per share 0.2 0.15 0.1 0.05 0 jul.20 aug.20 sep.20 okt.20 nov.20 des.20 jan.21 feb.21 mar.21 apr.21 mai.21 jun.21 jul.21 - 2020 Bulkers has returned free cash flow to shareholders on a monthly basis for 13 co

  7. Slide 7: Capesize rates year to date are the strongest in a decade

    Capesize rates year to date are the strongest in a decade 50 000 45 000 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 02.01.2015 02.02.2015 02.03.2015 02.04.2015 02.05.2015 02.06.2015 02.07.2015 02.08.2015 02.09.2015 02.10.2015 02.11.2015 02.12.2015 2015-20 max-min range 2020 2021 2015-20

  8. Slide 8: 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% 2013 2014 2015 2016 2017 2018 2019 2020 2021 Historical average freight costs of 16% vs spot iron ore prices would imply standard capesize rates of U

  9. Slide 9: Our dividend potential is significant

    Our dividend potential is significant Balance of 2021 Indicative dividend capacity (annual run-rate)1) 70 63 60 57 51 50 45 40 40 NOK per share 34 30 28 22 20 17 11 10 5 0 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 -10 2 vessels fixed at US$27,255, gross + s

  10. Slide 10: Steel demand

    Steel demand China monthly steel production World ex-China steel output 2021 Expected growth in steel demand 105 80 10% 10% 9% 100 75 8% 95 7% 90 70 6% 5.80% Million tons Million tons 85 65 5% 80 4% 75 60 3% 3% 70 2% 55 65 1% 60 50 0% mar. 20 aug. 20 feb. 18 apr. 17 nov. 16 sep. 17 des. 18 mai. 19 j

  11. Slide 11: Iron ore exports and Chinese inventories

    Million tons 905 910 915 920 925 930 935 940 945 950 Iron ore Global iron ore exports 2020 Iron ore exports YTD Iron ore exports YTD Million Tons 100 110 120 20 30 40 50 60 70 80 90 jan. 09 des. 09 nov. 10 okt. 11 sep. 12 aug. 13 jul. 14 jun. 15 mai. 16 apr. 17 mar. 18 Chinese iron ore imports feb.

  12. Slide 12: Vale guides for increased production volumes in 2H 2021

    Vale guides for increased production volumes in 2H 2021 Increased Vale production in 2H to drive capesize demand Vale iron ore production 95  The correlation between quarterly Vale iron ore production and 90.8 Brazilian iron ore exports has been 96% over the last 12 90 months, suggesting that each

  13. Slide 13: 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 120% 80 10 9 70 100% 8 60 7 80% 50 6 Million DWT Million DWT 60% 40 5 4 30 40% 3 20 2 20% 10 1 0 0 0% 2017 2018 2019 2020 2021 ytd* 1996 1998 2000 200

  14. 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) and CI

  15. Slide 15: 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 USD 14,500/ship/day FFA curve implies TCE for a scrubber fitted Newcastlemax of US$50,000 per day fo

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