2020 Bulkers Ltd. · OSL:2020
2020 Bulkers — Q1 2020 Earnings Presentation
15 slides from 2020 Bulkers's earnings presentation, Apr 30, 2020
Slide 1: 2020 Bulkers Ltd. First Quarter 2020 Results
2020 Bulkers Ltd. First Quarter 2020 Results 30 April, 2020 |
Slide 2: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared by 2020 Bulkers Ltd. (the "Company") and is made 30 April, 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. N
Slide 3: Highlights
Highlights Key events during the first quarter of 2020: • Net profit of US$0.3 million • Paid dividends of US$0.04 per share in January and US$0.03 per share in February • Took delivery of two Newcastlemax from New Times Shipyard. Both vessels commenced their respective time charters with Koch Indus
Slide 4: Key Financials Q1 2020
Key Financials Q1 2020 Income Statement Comments Net profit of US$0.3 million USD million, except per share data Q1 2020 Operating profit of US$2.5 million EBITDA of US$4.4 million Operating Revenues 7.8 Vessel operating expenses (2.4) Earnings per share of 1 cent Voyage expenses (0.2) Ope
Slide 5: Key Financials Q1 2020
Key Financials Q1 2020 Balance Sheet Summary Comments Equity of US$137.1 million and equity ratio of 40.5% USD million March 31, 2020 Interest bearing debt increased from US$140.1 million to US$197.1 million, reflecting the draw down on the term loan Total assets 338.2 facility financing the del
Slide 6: Commercial update: outperforming the Baltic 5TC Capesize index
Commercial update 2020 Bulkers outperforming the Baltic 5TC Capesize index 45 000 14 000 • 2020 Bulkers has outperformed the Baltic 5TC USD per day 2020 Fleet and Capesize 5 TC 40 000 index every month since delivery of the first 12 000 vessel Outperformance USD per day 35 000 10 000 30 000 • Outper
Slide 7: Cash breakeven
Cash breakeven 2020 balance 2021 2022 • Operating cash breakeven for the balance of Available ship days 1 884 2920 2920 2020 estimated at US$13,436 per day Days on fixed timecharter 984 • 53% of remaining available ship days for 2020 Open/index linked days 900 2920 2920 fixed at average TCE of US$21
Slide 8: Dividends / Capital Allocation
Dividends / Capital Allocation - The Company remains committed to pay out the majority of operational free cash flow generated on a monthly basis. - Due to the uncertain macro environment caused by the Covid-19 virus outbreak, the Company does not expect to pay any dividends prior to the delivery of
Slide 9: Market update
SBULKERS Market update
Slide 10: China has announced significant stimulus, economic activity is normalizing
China has annouced significant stimulus, economic activity is normalizing China with significant stimulus Coal burn compared to 2019 Traffic congestion compared to 2019 30% 100% 120% 26.2 % 95% 25% 100% 90% 20% 85% 80% 80% 15% 12.5 % 60% 75% 10% 70% 40% 65% 5% 20% 60% 0% 0% 2008-09 stimulus as % 202
Slide 11: Chinese iron ore demand has held up well, but more Brazilian export volumes needed
Chinese iron ore demand has held up well, but more Brazilian export volumes are needed to balance Capesize market Chinese Iron Ore imports has held up well While Iron Ore inventories have continued to draw China iron ore imports, million tonnes, based on AIS data China Iron ore port inventories, mil
Slide 12: Brazil iron ore exports should be picking up with Vale guiding for increase
Brazil iron ore exports should be picking up with Vale guiding for significant increase in production in 2Q-4Q vs Q1 2020 Strong correlation between Vale production and Capesize rates Comments Volumes - Vale produced 59,6 million tons of iron ore in Q1 2020 105 estimated 35 000 based on lastest Vale
Slide 13: Potential increase in Chinese Iron Ore imports on the horizon
Potential increase in Chinese Iron Ore imports on the horizon China Iron and Steel Association (CISA) expectations Potential incremental capesize required Q2-Q4 vs Q1 2020 China Iron and Steel Association recently stated Chinese iron 300 ore imports in 2020 may increase 40 to 90 million tons versu
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(1) Capesize scrapping(2) 80% 25 120 70% 100 20 60% 80 50% Orderbook as % of fleet 15 DWT m Million DWT 40% 60 30% 10 40 20% 10% 20 5 0% 0 2005 2006 2007 2008 2009 2010 2
Slide 15: Questions?
SBULKERS Questions?