2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Q2 2023 Earnings Presentation
13 slides from 2020 Bulkers's earnings presentation, Aug 16, 2023
Slide 1: 2020 Bulkers Ltd. Q2 2023 Results presentation
2020 Bulkers Ltd. Q2 2023 Results presentation August 16, 2023 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made August 16, 2023 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 2023 Highlights: • Net profit of US$4.8 million, EPS of US$0.21 • Achieved time charter equivalent earnings of approximately US$23,800 per day, gross • Declared total cash distributions of US$0.19 per share for the months of April - June, 2023 Subsequent events: • Achieved time charter
Slide 4: Key Financials Q2 2023
Key Financials Q2 2023 Income Statement Comments Net profit of US$4.8 million USD million, except per share data Q2 2023 Operating profit of US$8.1 million EBITDA of US$11.1 million Operating Revenues 17.1 Vessel operating expenses (5.0) Earnings per share of US$0.21 Voyage expenses and comm
Slide 5: Key Financials Q2 2023
Key Financials Q2 2023 Balance Sheet Summary Comments Shareholders’ equity of US$155.5 million USD million June 30, 2023 Interest bearing debt decreased from US$217.6 million to US$213.9 million during the quarter reflecting scheduled Total assets 371.3 repayments Equity 155.5 Cash flow from o
Slide 6: Continued strong commercial performace
Continued strong commercial performace Peer group Net TCE Capesize / Newcastlemax 30 000 25 000 20 000 15 000 10 000 5 000 - Q3 22 Q4 22 Q1 23 Q2 23 2020 Bulkers Peer 1 Peer 2 Peer 3 Source: Company reports 6|
Slide 7: 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 2015-22 max-min range 2023 2015-22 average • Strong volume growth, with Capesize ton-miles up 5% compared to 2022 • Effective supply increase driven by Capesize congestion falling to historically l
Slide 8: Our dividend potential is significant
Our dividend potential is significant Aug – Dec 2023 Illustrative annualized FCF per share 60 50 40 NOK per share 30 20 10 - 10 000 15 000 20 000 25 000 30 000 35 000 40 000 -10 Capesize rate Current contract coverage Aug Sep Oct Nov Dec Average fixed rate rate, gross 22,850 22,850 - - - Fixed % 25%
Slide 9: Capesize trade growth and fleet productivity
Capesize trade growth and fleet productivity Capesize ton-miles grew 5 % year to date Fleet congestion at historically low levels Bauxite 36 Iron ore 34 Pet coke Grains 32 % of Capesize fleet in port, 7dma Coal Cement/Clinker 30 Steel products 28 Manganese ore Alumina 26 Aggregates Copper ore 24 Oth
Slide 10: Steel market
Steel market World ex-China monthly steel output - YoY China monthly steel output – YoY 50% 25% 40% 20% 15% 30% 10% 20% 5% 10% 0% 0% -5% -10% -10% -20% -15% -30% -20% -40% -25% Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 jan. 17 jan. 18 jan. 19 jan. 20 jan. 21 jan. 22 jan. 23 Source: Shipping I
Slide 11: Iron Ore
Iron Ore Chinese Iron Ore Imports Chinese Iron Ore Inventories IO Majors’ production guidance 40% 160 350 335 150 320 325 324 30% 320 140 300 308 310 130 20% 275 Million Tonnes 260 Million tonnes 120 YOY Change 250 253 10% 249 110 225 100 0% 200 192 90 189 187 175 -10% 80 1 5 9 13 17 21 25 29 33 37
Slide 12: 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 40 150 6 100 4 20 50 2 0 0 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 1996 1998 20
Slide 13: Meeting new regulations will be a challenge for the industry
Meeting new regulations will be a challenge for the industry 67% of large bulk vessels facing non-compliance by 2030 Vessels built between 2009 and Vessels built post-2016 Vessels built before 20093 20153 unaffected by 20303 313 ships – 15% 1,072 ships – 52% 680 ships – 33% 300 1,385 ships – 67% 12