2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Q3 2022 Earnings Presentation
17 slides from 2020 Bulkers's earnings presentation, Nov 9, 2022
Slide 1: 2020 Bulkers Ltd. Q3 2022 Results presentation
2020 Bulkers Ltd. Q3 2022 Results presentation November 9, 2022 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made November 9, 2022 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 Q3 2022 Highlights: • Net profit of US$7.3 million, EPS of US$0.33 • Achieved time charter equivalent earnings of approximately US$25,800 per day, gross • Generated total cash distributions of US$0.30 per share for the months of July – September, 2022 • Extended the index-linked time char
Slide 4: Key Financials Q3 2022
Key Financials Q3 2022 Income Statement Comments Net profit of US$7.3 million USD million, except per share data Q3 2022 Operating profit of US$9.7 million EBITDA of US$12.7 million Operating Revenues 18.7 Vessel operating expenses (4.8) Earnings per share of US$0.33 Voyage expenses and comm
Slide 5: Key Financials Q3 2022
Key Financials Q3 2022 Balance Sheet Summary Comments Shareholders’ equity of US$154.8 million September 30, Interest bearing debt decreased from US$228.7 million to USD million 2022 US$225.0 million during the quarter reflecting scheduled repayments Total assets 381.0 Equity 154.8 Cash flow f
Slide 6: Dividends and cash distributions
Dividends and cash distributions Monthly dividends and cash distributions 0.5 0.45 0.4 0.35 USD per share 0.3 0.25 0.2 0.15 0.1 0.05 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 2022 - 2020 Bulkers has returned free cash flow to shareholders on a monthly basis for 28 consecutive months - Q
Slide 7: 2020 Bulkers with strong commercial performace
2020 Bulkers with strong commercial performace Peer group Net TCE Capesize / Newcastlemax 60 000 50 000 40 000 30 000 20 000 10 000 - Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 2020 Bulkers Peer 1 Peer 2 Peer 3 Source: Company reports 7|
Slide 8: Market review
Market review 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 J F M A M J J A S O N D 2015-21 max-min range 2022 2021 2015-21 average • Unseasonally weak market so far during Q3 driven by: • Unwinding of congestion and reduction of fleet inefficiencies adding effective supply to the
Slide 9: Our dividend potential is significant
Our dividend potential is significant Nov - December 2022 Indicative dividend capacity (annual run-rate)1) 40 35 34 30 30 25 25 NOK per share 21 20 17 15 12 10 8 5 4 - 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 Standard Capesize rate 3 vessels fixed avg US$26,476, + scrubber benefit and
Slide 10: Our dividend potential is significant
Our dividend potential is significant 2023 Indicative dividend capacity (annual run-rate)1) 65 Q1 Q2-Q4 55 52 44 45 40 NOK per share 35 34 35 27 27 25 21 18 15 15 8 9 5 2 1 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 ( 5) ( 5) Standard Capesize rate 1 vessel fixed at US$16,146 + scrubber
Slide 11: Capesize demand is marginally up compared to 2021
Capesize demand is marginally up compared to 2021 Trading volumes up YoY… …but distances are down significantly Resulting in only 1% ton-mile growth YoY 6 450 1 200 190 6 350 1 150 DWT ton-miles, billion - 30 day sum 180 6 250 Mill DWT, 30 day moving sum 1 100 Distance, 30 day ma 6 150 170 1 050 6 0
Slide 12: Improved fleet efficiencies have increased effective supply
Improved fleet efficiencies have increased effective supply 34 32 30 28 % 26 24 22 20 jan. 16 jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 % of Capesize fleet in port, 7dma Pre-covid average Covid average Source: Shipping Intelligence Network 12 |
Slide 13: Steel market
Steel market World ex-China monthly steel output - YoY China monthly steel output – YoY 80% 25% 20% 60% 15% 40% 10% 5% 20% 0% jan. 16 jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 0% jan. 16 jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 -5% -10% -20% -15% -40% -20% -60% -25% Source: Shipping Int
Slide 14: Increased infrastructure investments in China
Increased infrastructure investments in China China Local Government Special Bond Issuance China fixed asset investment YoY 4 000 50% 3 543 40% 3 500 30% 3 000 20% 10% 2 500 2 366 0% 2 000 -10% 1 500 -20% -30% 1 000 -40% aug.16 aug.17 aug.18 aug.19 aug.20 aug.21 feb.16 feb.17 feb.18 feb.19 feb.20 fe
Slide 15: Iron Ore
Iron Ore Chinese iron ore imports - YOY Chinese iron ore inventories 40% 150 140 30% 130 20% 120 Million tons 10% 110 0% jan. 16 jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 100 -10% 90 80 -20% jan. 16 jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 Source: Shipping Intelligence Network, Bloomber
Slide 16: Most favorable supply side in decades
Most favorable supply side in decades Capesize orderbook as % of fleet Capesize newbuild contracts Capesize scrapping 120 500 18 450 16 100 400 14 350 80 12 300 Million DWT 10 60 250 8 200 6 40 150 4 100 20 2 50 0 0 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 YTD 1996 1998 2000 200
Slide 17: New IMO regulations to reduce CO2 emissions
New IMO regulations to reduce CO2 emissions Summary Emission reduction through goal-based measure The IMO targets reduction in CO2 intensity from international shipping by 40% from 2008 levels by 2030 and will implement EEXI (Energy Efficiency Existing Ship Index) and CII (Carbon Intensity Indicat