2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Q2 2022 Earnings Presentation
17 slides from 2020 Bulkers's earnings presentation, Aug 17, 2022
Slide 1: 2020 Bulkers Ltd. Q2 2022 Results presentation
2020 Bulkers Ltd. Q2 2022 Results presentation August 17, 2022 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made August 17, 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 Q2 2022 Highlights: • Net profit of US$12.0 million, EPS of US$0.54 • Achieved time charter equivalent earnings of approximately US$32,300 per day, gross • Generated total cash distributions of US$0.52 per share for the months of April – June, 2022 • In April 2022, the Company transferred
Slide 4: Key Financials Q2 2022
Key Financials Q2 2022 Income Statement Comments Net profit of US$12.0 million USD million, except per share data Q2 2022 Operating profit of US$14.5 million EBITDA of US$17.4 million Operating Revenues 23.3 Vessel operating expenses (4.3) Earnings per share of US$0.54 Voyage expenses and co
Slide 5: Key Financials Q2 2022
Key Financials Q2 2022 Balance Sheet Summary Comments Shareholders’ equity of US$154.6 million USD million June 30, 2022 Interest bearing debt decreased from US$232.4 million to US$228.7 million during the quarter reflecting scheduled Total assets 385.0 repayments Equity 154.6 Cash flow from o
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 25 consecutive months - Q
Slide 7: 2020 Bulkers with strong commercial performance
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: Our dividend potential is significant
Our dividend potential is significant August-December 2022 dividend capacity (annual run-rate)1) 80 70 68 62 60 56 49 50 NOK per share 43 40 37 31 30 25 19 20 13 10 7 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 Standard Capesize rate 2 vessels fixed until 3
Slide 9: Market review
Market review Capesize spot Rates Capesize port congestion 90 000 34% 80 000 32% 70 000 % of fleet in port, 7dma 60 000 30% 50 000 28% 40 000 26% 30 000 20 000 24% 10 000 22% 0 J F M A M J J A S O N D 20% Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 2015-21 max-min range 2022 2021 2015-21 averag
Slide 10: Steel market
Steel market World ex-China monthly steel output China monthly steel output 80 100 95 75 90 70 85 Million tons 80 Million tons 65 75 70 60 65 55 60 55 50 jan. 16 jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 jan. 16 jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 10 |
Slide 11: China steel market
China steel market China rebar inventories China rebar prices 1400 1000 900 1200 800 1000 700 800 600 600 500 400 400 200 300 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 11 |
Slide 12: Signs of increased infrastructure investments in China
Signs of increased infrastructure investments in China China Local Government Special Bond Issuance China fixed asset investment 4000 50% 3 406 40% 3500 30% 3000 20% 2 570 YoY Change 2500 10% Billion CNY 0% 2000 -10% 1500 -20% 1 014 -30% 1000 -40% okt.20 jun.21 okt.21 jun.22 jun.19 okt.19 jun.20 feb
Slide 13: Iron ore
Iron ore Iron ore exports - YoY % Chinese iron ore imports Chinese iron ore inventories 2.0% 115 170 1.70% 110 160 1.0% 105 150 0.0% 100 140 95 -0.5% -1.0% 130 90 120 85 -2.0% 110 80 -3.0% 75 100 -3.60% 70 -4.0% 90 Jan-16 Jun-16 Jul-18 Jan-21 Jun-21 Feb-18 Mar-20 Nov-16 Dec-18 Nov-21 Sep-17 Aug-20 M
Slide 14: Vale still expects an increase in production for the balance of 2022
Vale still expects an increase in production for the balance of 2022 Vale production vs Capesize rates 45 000 105.0 Q3-Q4 TO 40 000 VOLUMES 100.0 NEEDED TO 95.0 Vale production million tons 35 000 MEET VALE GUIDANCE 90.0 30 000 Capesize rate 85.0 25 000 80.0 20 000 75.0 15 000 70.0 10 000 65.0 5 000
Slide 15: Most favorable supply side in decades
Most favorable supply side in decades Capesize orderbook as % of fleet Capesize newbuild contracts Capesize scrapping 120% 90 18 80 16 100% 70 14 80% 60 12 Million DWT 50 10 Million Dwt 60% 8 40 40% 6 30 4 20 20% 2 10 0 0% 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD 1996 1
Slide 16: 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
Slide 17: 2020 Bulkers Summary
2020 Bulkers Summary Fleet of 8 Newcastlemax vessels, average age 2 years 2 vessels on fixed rates until 31 Dec 2022 at US$31,640 per day + scrubber profit share 6 ships on index linked charters that can be converted to fixed rates on the basis of the FFA curve FFA curve implies TCE for scrubber fit