2020 Bulkers Ltd. · OSL:2020

2020 Bulkers — Q4 2019 Earnings Presentation

15 slides from 2020 Bulkers's earnings presentation, Feb 11, 2020

  1. Slide 1: Fourth Quarter 2019 Results

    2020 Bulkers Ltd. Fourth Quarter 2019 Results 11 February, 2020 |

  2. Slide 2: Disclaimer

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

  3. Slide 3: Highlights

    Highlights Key events during the fourth quarter of 2019: • Net profit of US$1.2 million with 298 on hire days • Paid dividends of US$0.055 per share in November and US$0.08 per share in December • Entered into two new index-linked timecharters with ST Shipping, a 100% owned subsidiary of Glencore •

  4. Slide 4: Key Financials Q4 2019

    Key Financials Q4 2019 Income Statement Comments  Net profit of US$1.2 million USD million Q4 2019  Earnings per share US$0.06  Operating revenues of US$6.9 million Operating Revenues 6.9 Vessel operating expenses (1.8)  Non-cash write off of US$0.8 million relating to the cancellation Voyage ex

  5. Slide 5: Key Financials Q4 2019

    Key Financials Q4 2019 Balance Sheet Summary Comments  Equity ratio of 48.8% USD million Q4 2019  Interest bearing debt increased from US$64.3 million to US$140.1 million, reflecting the sale lease back financing for Total assets 283.1 Bulk Seoul and Bulk Shanghai. Equity 138.1  The Company repai

  6. Slide 6: Dividends / Capital Allocation

    Dividends / Capital Allocation - Declared dividend of US$0.03 per share for the month of January 2019, to be paid in February. - The Company has since November 2019 declared total dividends of US$0.205 per share - The Company remains committed to pay out the majority of any operating free cash flow

  7. Slide 7: Company overview

    =BULKERS Company overview

  8. Slide 8: Efficient fleet chartered to strong counterparts

    Efficient fleet chartered to strong counterparts High Performing assets with favorable environmental footprint 2020 Bulkers fleet vs standard Capesize1) vessels Benefits of 2020 Bulkers fleet vs standard Capesize - 15 % larger cargo intake vs standard Capesize - Proven earnings premium versus standa

  9. Slide 9: Our low breakeven gives downside protection and dividend potential

    Our low breakeven gives downside protection and dividend potential Our operating cash breakeven of $14,500/day is covered with standard Capesize rates at $8,300 - giving downside protection 190 Standard Capesize1) rate “ 8 300 Capesize dayrate (USD'000/day) 38% Newcastlemax Premium (last done for Ec

  10. Slide 10: Market summary

    =BULKERS Market summary

  11. Slide 11: Abnormally low Brazilian shipments YTD, in line with Vale's guidance

    Abnormally low Brazilian shipments YTD, in line with Vale’s guidance Brazilian iron ore shipments Australian iron ore shipments Million tonnes, 3-week moving average Million tonnes, 3-week moving average 10 20 18 8 16 6 14 4 12 2 10 jan feb mar apr mai jun jul aug sep okt nov des jan feb mar apr mai

  12. Slide 12: Vale has guided for a significant sales increase later this year

    Vale has guided for a significant sales increase later this year Strong correlation Vale sales, Brazil exports and Cape rates Comments 110 Volumes estimated 35 000 - Vale has guided sales of 70 MT for Q1 2020 based on Vale´s sales 105 guidance - Their full year guidance of 345 MT implies that sales

  13. Slide 13: China will eventually need to restock iron ore inventories

    China will eventually need to restock iron ore inventories Chinese steel production remains strong1)… While Chinese iron ore inventories have dropped 100 Apparent iron ore inventories as months of forward consumption2) 2019 +7% vs 2018 90 3,50 Dec 2019 +11% vs Dec 2019 80 3,00 70 Tons per month (mil

  14. Slide 14: Limited supply growth on the horizon

    Limited supply growth on the horizon Dry bulk orderbook as % of fleet Capesize bulk Newbuild contracts(1) Capesize scrapping(2) 80% 120 20 70% 18 100 60% 16 80 14 50% Orderbook as % of fleet 12 DWT USDbn Million DWT 40% 60 10 30% 8 40 6 20% 4 20 10% 2 0% 0 0 2017 2018 2019 2020 2005 2006 2007 2008 2

  15. Slide 15: Questions?

    =BULKERS Questions?

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