2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Q3 2020 Earnings Presentation
14 slides from 2020 Bulkers's earnings presentation, Nov 12, 2020
Slide 1: 2020 Bulkers Ltd. Third Quarter 2020 Results
2020 Bulkers Ltd. Third Quarter 2020 Results 12 November, 2020 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made 12 November, 2020 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: Highlights
Highlights Key events during the third quarter of 2020: • Net profit of US$4.8 million, EPS of US$0.22 • Achieved average time charter equivalent earnings of approximately US$22,100 per day, gross • Declared total cash distributions of US$0.1 per share for the months of July - September • Extended t
Slide 4: Key Financials Q3 2020
Key Financials Q3 2020 Income Statement Comments Net profit of US$4.8 million USD million, except per share data Q3 2020 Operating profit of US$7.7 million EBITDA of US$10.6 million Operating Revenues 15.7 Vessel operating expenses (3.9) Earnings per share of 22 cents Voyage expenses (0.3)
Slide 5: Key Financials Q3 2020
Key Financials Q3 2020 Balance Sheet Summary Comments Equity of US$141.6 million September 30, Interest bearing debt decreased from US$257.6 million to USD million 2020 US$253.8 million during the quarter reflecting scheduled repayments during the quarter Total assets 397.9 Equity 141.6 Cash f
Slide 6: Key financials since delivery of first vessel in August 2019
Key financials since delivery of first vessel in August 2019 18 15.7 16 14 12 10.8 10.6 US$ Million 10 7.8 8 6.9 7.2 6 4.8 4.4 4 3.5 2.2 2.4 2 0.9 0.8 1.2 0.3 0 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Revenues EBITDA Net profit 2020 Bulkers has been profitable every quarter since delivery of the fir
Slide 7: Commercial update
Commercial update Commercial performance relative to Baltic 5TC index 45 000 14 000 40 000 12 000 Relative performance in USD per day 35 000 10 000 TCE in USD per day 30 000 8 000 25 000 6 000 20 000 4 000 15 000 2 000 10 000 0 5 000 -2 000 0 -4 000 aug. 19 sep. 19 okt. 19 nov. 19 des. 19 jan. 20 fe
Slide 8: 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 estimated at approximately 180 000 US$14,400 per day for 2021, including budget for Covid-19 related costs 160 000 140 000 - Based on achieved premium v
Slide 9: We are focused on returning cash to shareholders
We are focused on returning cash to shareholders Cash distributions Indicative free cash available for distribution in 2021 50 - Monthly cash distributions resumed following delivery of last 45 newbuilding in June 2020 40 - Cash distributions of US$0.1 per share declared for the months of July – Sep
Slide 10: Market update
=BULKERS Market update
Slide 11: China steel production and iron ore imports
Million tons 55 60 65 70 75 80 85 90 95 100 jan. 15 jul. 15 jan. 16 jul. 16 jan. 17 jul. 17 jan. 18 jul. 18 jan. 19 China steel production jul. 19 Sources: Shipping intelligence network, Arrow shipbroking group jan. 20 jul. 20 Million tons 100 120 0 20 40 60 80 2007 2008 2009 2010 2011 2012 2013 201
Slide 12: Steel production is recovering
Steel production is recovering Global steel production is back above pre-Covid levels China leading the recovery, rest of world is accellerating 15% 40% 10% 30% 5% 20% 0% -5% 10% -10% 0% -15% -20% -10% -25% -20% -30% -30% -35% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 jan feb mar
Slide 13: Brazilian exports ramping up
Brazilian exports ramping up Vale Production and Brazil exports ramping up Strong correlation between Vale exports and rates historically 120 35 000 110.0 Q4 Vale production 30 000 implied by 100 Vale 100.0 guidance * Vale production million tons 25 000 80 90.0 Million tons Capesize rate 20 000 * 60
Slide 14: 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% 90 14 70% 80 12 60% 70 10 50% 60 Orderbook as % of fleet 8 Million DWT Million DWT 50 40% 40 30% 6 30 20% 4 20 10% 2 10 0% 0 0 Bulkcarrier Orde