Belships ASA (OSE: BELCO) fleet expansion, period charter contract, refinancing and delivery update for newbuildings
Belships has entered into an agreement for the acquisition of an Ultramax bulk carrier built in 2015 by a Japanese shipyard in a cash transaction. Delivery of the vessel is expected within October 2021. The agreed purchase price is JPY 2.52bn (about USD 22.9m). The vessel is intended to be financed with bank financing for approximately 60 per cent of the purchase price. The estimated cash breakeven for the vessel upon delivery is about USD 9 500 per day including operational expenses. The agreement is conditional upon certain steps to be completed by the parties involved. Conclusion is expected within June 2021.
Belships has entered into agreement for a period time charter contract for one of our modern Ultramaxes of Japanese design for a period of between 22-24 months at a gross rate of USD 23 000 per day. The contract is expected to commence by the end of June 2021.
Belships has exercised an option to purchase the Ultramax vessel BELISLAND and subsequently entered into agreement to sell and lease back the vessel on bareboat charter for 11 years with options to purchase the vessel again after the third year at below current market levels. The new daily rate will reduce the vessels cash breakeven by about USD 1100 per day and have a positive cash effect upon delivery of about USD 2.5 million. The agreement is conditional upon certain steps to be completed by the parties involved. Delivery into the new bareboat agreement is expected within September 2021.
Belships has previously announced transactions for 4 x Newbuilding resales of 61 000 dwt Japanese design and 1 x Newbuilding resale of 64 000 dwt Japanese design financed through bareboat agreements with purchase options. Two of these will be delivered earlier than expected – so all five vessels are now scheduled to be delivered within August and September 2021.
"We expand our fleet with high quality tonnage, cut costs and secure contract revenue at highly profitable levels which supports our recently announced dividend policy. Newbuilding resales delivering ahead of time underpins the quality of Japanese shipbuilding. Our goal remains focused on creating value for our shareholders and increase the attractiveness of trading our shares," said Belships CEO, Lars Christian Skarsgård.
Belships has a uniform and modern fleet well positioned to capitalise on a strong dry bulk market. Five newbuildings are expected to be delivered within Q3 2021, all of which have finance arranged. Following completion of all announced transactions, the Belships fleet will count 27 bulk carriers, with an average age of 5 years and average cash breakeven of about USD 10 500 per day. Our strategy is to develop Belships as an owner and operator of Ultramax bulk carriers, through quality of operations and with the purpose of creating and maximising shareholder value.
Source: Belships