Belships

Quarterly Report • May 12, 2022

QUARTERLY REPORT – Q1 2022

12 May 2022

Belships ASA

Lilleakerveien 6D, N-0283 Oslo, Norway www.belships.com Enterprise no: NO 930776793 MVA

RECORD QUARTER – EXTRAORDINARY DIVIDEND AND POSITIVE MARKET OUTLOOK

HIGHLIGHTS

• Operating income of USD 229.5m (USD 76.4m)
• EBITDA of USD 60.5m (USD 14.7m) including USD 22.6m from Lighthouse Navigation
• Net result of USD 59.5m (USD 16.5m)
• Declared ordinary dividend of USD 26.2m (NOK 1.00 per share)
• Declared extraordinary dividend of USD 32.7m (NOK 1.25 per share)
• TCE of USD 25 466 gross per day for owned fleet
• Secured long term lease agreements for four vessels at competitive terms
• 90 per cent of ship days in Q2 are booked at about USD 24 700 gross per day. 70 per cent of ship days in the next four quarters are booked at about USD 24 000 gross per day.
• Modern fleet of 29 vessels with an average age of 3.5 years and daily cash breakeven for 2022 of about USD 10 000 per vessel

Subsequent events

Belships has entered into agreements for the acquisition of two modern 64 000 dwt Ultramax bulk carriers built at Japanese shipyards in 2019 and 2020. The vessels are financed through time charter lease agreements for a fixed period of about 5 years with options to extend for a further 2 years. Cash breakeven for each vessel will be about USD 11 200 per day. Belships will pay a total of USD 12.0m as down payment upon delivery of the vessels. The agreements come with options to repurchase the vessels significantly below current market levels. There are no obligations to purchase the vessels at the end of the agreements. The agreements are conditional upon certain steps to be completed by the parties involved. Delivery of the vessels is expected within Q2 2022.

The vessels come with charter employment attached as follows:

About 2.5 years period time charter at a gross rate of USD 21 000 per day. The Charterer has an option for two additional years at USD 21 000 and USD 22 000 per day.

About 6 months remaining period of a legacy time charter contract at a gross rate of USD 13 600 per day.

Belships has declared an option to purchase the Ultramax bulk carrier BELNIPPON (2018). The strike price is significantly below current market levels. Conclusion is expected within Q3 2022.

Financial results commentary

Belships reports a net result of USD 59.5m for Q1 2022, compared to a net result of USD 16.5m for Q1 2021. The increase in net result is mainly caused by the improved freight market and Belships' increased fleet. EBITDA contribution from Lighthouse Navigation was USD 22.6m in Q1 2022 compared to USD 3.5m in Q1 2021. The increase in EBITDA from Lighthouse Navigation is due to the expansion of the companies and increased margins from freight trading. Net freight revenue for owned vessels was USD 54.3m in Q1 2022 compared to USD 23.2m in Q1 2021. The increase in

net freight revenue is driven by an increase in TCE on owned vessels from 12 802 in Q1 2021 to 25 466 in Q1 2022 and an increase in vessel days of about 20 per cent.

Ship operating expenses were USD 13.4m in Q1 2022 compared to USD 10.8m in Q1 2021. The increase is due to growth in active days of about 20 per cent, stemming from fleet expansion. Ship operating expenses include non-recurring takeover costs for vessels delivered in the quarter of USD 0.4m, and Covid-19 related crewing expenses of USD 1.4m.

Fleet status

Time charter equivalent (TCE) earnings per ship in the quarter was recorded at USD 25 466 gross per day versus BSI index of USD 25 155 gross per day for the same period. The inherent lag in our business means that when the spot markets fall, our outperformance will tend to be higher. Conversely, when the market rises, our performance will tend to lag on a short-term basis. It is also affected by a certain number of period time charter contracts which contribute to our contract coverage for 2022-2023.

	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023
Contract coverage	90%	75%	69%	52%	40%	29%
TCE rate (USD/day)	24 758	23 486	23 617	23 716	23 432	23 260

BELTIGER was drydocked in the quarter, the remaining fleet sailed without significant off-hire with a total of 2 243 on-hire vessel days.

Ultramax newbuildings BELYAMATO and BELMONDO are expected to be delivered from Imabari Shipbuilding, Japan in November 2022 and January 2023.

Transactions

Belships entered into agreements to sell and lease back BELLIGHT and BELFOREST on bareboat charters for 10 and 11.5 years, respectively. The lease agreements have fixed rates for the entire period with an average cost of capital of about 4.4 per cent. Delivery occurred in Q1 2022 and net cash effect was about USD 14.0m in total.

Belships agreed to a new USD 116m loan facility with drawdown in Q1 2022. Proceeds from the facility were used to repay all outstanding amounts under the existing credit facility with two vessels being left unencumbered. The new loan has a reduced margin of 225 basis points and a loan-to-value ratio of 55 per cent, with the first instalment in 2023 and final maturity in 2027. Lenders for the new loan facility are DNB Bank and Sparebank 1 SR-Bank.

Belships entered into agreement to sell and lease back BELYAMATO. The bareboat charter is for 10 years. The lease agreement has a fixed rate for the entire period with an average cost of capital of 4.6 per cent. Belships paid a sum of USD 4.0m as down payment upon signing the agreement.

Belships entered into agreement to sell and lease back BELMONDO, an Ultramax newbuilding which is scheduled for delivery in January 2023. The bareboat charter is for 10 years and comes with options to repurchase the vessel at below current market levels. There is no obligation to purchase the vessel at the end of the agreement. The rate is fixed for the entire period with an average cost of capital of 4.6 per cent. Belships has paid a sum of USD 4.5m as down payment upon

signing the agreement. The agreement is conditional upon certain steps to be completed by the parties involved. Conclusion is expected within Q2 2022.

Belships' fleet has increased and improved with only modest cash investments, signalling the competitive advantage Belships has in sourcing ship finance. The Japanese-designed bulk carriers entering the fleet represent the highest quality and lowest fuel consumption available in the market today.

Lighthouse Navigation

Lighthouse Navigation has delivered another strong result with EBITDA of USD 22.6m, continuing the performance from previous quarters. FFA gains of USD 3.5m bring the EBIT result to USD 25.6m.

Sustainability

Belships aims for the highest standards in corporate governance and is well placed to deliver emission cuts in line with industry ambitions for 2030. Belships recently published a comprehensive sustainability report for 2021 (ESG Report) reflecting our ongoing commitment to transparency and meeting investor and stakeholder expectations.

Belships is compliant with the upcoming emission regulations from IMO in 2023 (EEXI) without additional CAPEX signalling the competitive advantage of Belships modern eco-fleet.

Financial and corporate matters

At the end of the quarter, cash and cash equivalents totalled USD 161.2m, whilst interest bearing bank debt amounted to USD 114.5m.

Net leasing liability at the end of the quarter was USD 347.3m. Leasing liabilities have been calculated under the assumption that all purchase options to acquire Ultramax bulk carriers on bareboat charters will be exercised. All lease agreements have fixed interest rates for the entire duration of the charters. Belships have no contractual obligations to acquire any of its leased vessels.

At the end of the quarter, book value per share amounted to NOK 10.2 (USD 1.17), corresponding to a book equity ratio of 34 per cent. Value-adjusted equity is significantly higher.

Dividend policy

Belships ASA aims to distribute quarterly cash dividends targeting about 50 per cent of net result adjusted for non-recurring items. Other surplus cash flow may be used for accelerated amortisation of debt, share buy-backs or vessel acquisitions considered to be accretive to shareholders' value.

Dividend payment

Based on the financial result in the first quarter 2022 the Board declared an ordinary dividend payment of USD 26.2m (NOK 1.00 per share) equivalent to about 55 per cent of net result adjusted for non-controlling interests.

Furthermore, the Board declared an extraordinary dividend payment of USD 32.7m (NOK 1.25 per share) bringing the total dividend payments to USD 58.9m (NOK 2.25 per share).

Market highlights

In the first quarter, the Baltic Supramax Index (BSI-58) averaged USD 25 155 per day - the highest start to a year since 2008. The first quarter is usually the weakest period, due to factors like the Chinese New Year and seasonally lower grain and iron ore shipments. In January, Indonesia implemented a coal export ban which lowered export volumes for some weeks. However, as these temporary and seasonal characteristics passed, the market regained strength and the BSI-58 climbed to USD 30 000 per day.

Total Supramax shipment volumes ended at 237 million tons in Q1 2022, slightly down from 243 million tons in Q4 2021. However, considering the abovementioned seasonal factors, the decline was negligible. In April, shipment volumes rebounded, with 92 million tons shipped boding well for an upward trend into the second quarter.

There were considerable variations in the demand growth for each commodity group in Q1 2022. Breakbulk and other minor bulks grew by 7 and 9 per cent, year on year, whereas coal and iron ore dropped by 22 and 52 per cent, respectively. The strong growth in minor bulk commodities reflect high rates of global industrial production, whereas the drop in coal was due to Indonesia's export ban, and the drop in iron ore was due to lower demand from China as restrictive policies on steel output remained in place. The freight markets continue to underline the advantages of the versatile Supra/Ultramax segments compared to the rest of the dry bulk market.

Port congestion persisted throughout the quarter and the Chinese government's policy to fight the COVID-19 pandemic gives reason to expect that reduced vessel sailing efficiency will continue to support a tight market balance.

Changes in trade patterns stemming from sanctioned Russian commodities is likely to support tonmile growth in the Supra/Ultramax segment. Average sailing distances for European coal imports may see an increase as Russian coal will be replaced by US, Colombian, South African, Indonesian and Australian coal. The secondary effect of this is that Russian coal exported from Baltic, Black Sea and Murmansk will have to be shipped to Asia. Such changes will probably be seen for other commodities as well, like steel products and possibly also grains.

According to Fearnleys, 28 vessels were delivered in the first quarter, up from 21 vessels in the fourth quarter. 101 vessels remain on schedule for delivery this year. However, given the pace of deliveries year-to-date and considering that there are often order cancellations, slippage or even incorrectly reported orders, that number is likely too high.

Relatively low newbuilding activity continued as the lack of conviction and alternatives for fuel and propulsion systems appear to restrain demand for ordering. Also, available delivery positions with shipyards appear to remain distant, from the very end of 2024 or later. Year-to-date, 24 vessels have been placed for order according to Fearnleys. For comparison, there were 112 vessels placed for order last year.

Newbuilding prices steadily edge upwards as increased input costs as well as full orderbooks for container and gas vessels dictate the position with shipyards. Second-hand values have increased since the New Year, however current values still appear low in comparison with earnings.

Outlook

The Baltic Exchange Supramax index YTD 2022 has averaged about USD 26 000 per day with Ultramaxes earning an additional premium.

The sentiment in the Supra/Ultramax market remains strong and is expected to continue in the near term. Freight Forward Agreements (FFA) for Supramax currently indicate a market average of about USD 29 000 for the remaining part of the year, which is an increase of 10 per cent from our previous report.

The supply side as observed from the number of deliveries and the publicly quoted orderbook for our segment is historically low. On the back of stable demand, we remain optimistic in terms of market prospects.

The purpose of growth has been to increase profitability and the value and attractiveness of owning our shares. We are focused on capital discipline and returning capital to shareholders. A competitive return for our shareholders is to be obtained through increase in the value of the company's shares and the payment of dividends, as measured by the total return. Since we announced a new dividend policy in Q2 2021, we have returned a total of USD 111.9m (NOK 4.10 per share) to shareholders.

Belships is well positioned to capitalise on a strong dry bulk market with a modern fleet of 29 Supra/Ultramax bulk carriers with an average age of 3.5 years and daily cash breakeven for 2022 of about USD 10 000 per vessel.

Lighthouse Navigation continues to deliver strong results and has had a good start to the second quarter. Based on Belships' current contract coverage, we expect to generate significant free cash flow and continue to pay quarterly dividends as announced with our dividend policy.

12 May 2022

THE BOARD OF BELSHIPS ASA

Peter Frølich Chairman

Frode Teigen Sten Stenersen Marianne Møgster

Carl Erik Steen Birthe Cecilie Lepsøe Jorunn Seglem

Lars Christian Skarsgård CEO

CONSOLIDATED STATEMENT OF INCOME

The quarterly figures are not audited

		Q1	Q1
USD 1 000		2022	2021	2021
Gross freight revenue	Note	258 287	107 290	808 237
Voyage expenses		-30 802	-32 354	-164 929
Net freight revenue	2	227 485	74 936	643 308
Management fees		2 003	1 453	7 366
Operating income	2	229 488	76 389	650 674
Share of result from j/v and assoc. comp.		12 366	760	14 323
T/C hire expenses		-156 818	-46 672	-400 710
Ship operating expenses		-13 362	-10 815	-50 457
Operating expenses management companies		-8 564	-3 963	-30 756
General and administrative expenses		-2 601	-969	-4 795
Operating expenses		-168 979	-61 659	-472 395
EBITDA		60 509	14 730	178 279
Depreciation and amortisation	3	-8 236	-7 540	-28 735
Gain on sale of ships	3	12 308	0	15 333
Other gains/(-losses)		3 494	-6 734	-4 048
Operating result (EBIT)		68 075	456	160 829
Interest income		4	219	815
Interest expenses		-5 079	-3 516	-15 881
Other financial items		-1 628	-148	-2 308
Currency gains/(-losses)		-641	-247	-1 325
Net financial items		-7 344	-3 692	-18 699
Result before taxes		60 731	-3 236	142 130
Taxes		-1 197	19 743	-8 708
Net result		59 534	16 507	133 422
Hereof majority interests		46 738	14 914	103 983
Hereof non-controlling interests		12 796	1 593	29 439
Earnings per share		0.24	0.07	0.54
Diluted earnings per share		0.23	0.07	0.53

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Q1	Q1
USD 1 000	2022	2021	2021
Net result	59 534	16 507	133 422
Other comprehensive income not to be reclassified
to profit or (loss) in subsequent periods:
Actuarial gain/(loss) on defined benefit plans	0	0	3
Items that may be subsequently reclassified to profit or (loss):
Exchange differences	-23	26	-74
Total comprehensive income	59 511	16 533	133 351
Hereof majority interests	46 715	14 940	103 912
Hereof non-controlling interests	12 796	1 593	29 439

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The quarterly figures are not audited

		31 Mar	31 Mar	31 Dec
USD 1 000		2022	2021	2021
NON-CURRENT ASSETS	Note
Intangible assets		0	19 752	0
Ships	3	574 108	388 795	580 628
Prepayment of ships		10 050	0	0
Property, Plant, and Equipment		4 090	5 002	4 227
Investments in j/v and assoc. companies		26 829	3 492	13 997
Other non-current assets		230	119	821
Total non-current assets		615 307	417 160	599 673
CURRENT ASSETS
Assets held for sale	3	0	6 701	23 933
Bunker inventory		27 155	9 551	16 492
Current receivables		71 333	44 701	52 332
Cash and cash equivalents		161 162	51 570	105 204
Total current assets		259 650	112 523	197 961
Total assets		874 957	529 683	797 634
EQUITY AND LIABILITIES
Equity
Paid-in capital		157 435	154 206	158 802
Retained earnings		97 383	20 980	82 739
Non-controlling interests		40 275	7 692	31 378
Total equity		295 093	182 878	272 919
Non-current liabilities
Long term interest bearing debt	4	437 127	267 227	412 881
Other non-current liabilities		1 733	2 264	1 757
Total non-current liabilities		438 860	269 491	414 638
Current liabilities
Current portion of interest bearing debt	4	24 640	29 435	24 467
Other current liabilities		116 364	47 879	85 610
Total current liabilities		141 004	77 314	110 077
Total equity and liabilities		874 957	529 683	797 634

CONSOLIDATED STATEMENT OF CASH FLOW

The quarterly figures are not audited

	31 Mar	31 Mar	31 Dec
USD 1 000	2022	2021	2021
Cash flow from operating activities Net result before taxes	60 731	-3 236	142 130
Adjustments to reconcile profit before tax to net cash flows:
Depreciations/impairment on fixed assets	8 236	7 540	28 735
Gain on sale of ships and other gains	-15 802	5 480	-15 333
Share-based compensation expense	-8 017	138	500
Difference between pension exps and paid pension premium	0	0	-19
Share of result from j/v and associated companies	-12 366	-760	-14 323
Net finance costs	7 344	3 692	18 699
Change in current items	881	-3 767	6 252
Interest received	4	219	815
Interest paid	-5 079	-3 516	-15 881
Financing costs	0	0	-1 276
Income tax paid	-264	-106	-852
Net cash flow from operating activities	35 668	5 684	149 447
Cash flow from investing activities
Proceeds from sale of ships	36 597	6 259	62 541
Payment of ships	-10 050	0	-90 454
Received instalments from sale of ships	0	468	12 661
Additions to ships	-1 560	0	0
Other investments	0	-1 225	-5 022
Net cash flow from investing activities	24 987	5 502	-20 274
Cash flow from financing activities
Proceeds from non-current debt	29 816	0	52 360
Paid-in capital (net)	0	16 068	15 952
Repayment of non-current debt	-5 193	-9 790	-95 015
Sold treasury shares	0	121	129
Dividend paid	-29 320	0	-31 380
Net cash flow from financing activities	-4 697	6 399	-57 954
Net change in cash and cash equivalents during the period	55 958	17 585	71 219
Cash and cash equivalents at 1 January	105 204	33 985	33 985
Cash and cash equivalents at end of period (incl. restricted cash)	161 162	51 570	105 204

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

The quarterly figures are not audited

USD 1 000
	Majority interest
	Paid-in			Retained
As at 31 March 2022	Share capital	Treasury shares	Share premium reserves	Other paid-in equity b	Other equity	Non controlling interests	Total equity
Equity as at 31 December 2021	59 466	-128	62 228	37 236	82 739	31 378	272 919
Share-based payment expense	0	0	0	-1 367	-6 650	0	-8 017
Dividend paid	0	0	0	0	-25 421	-3 899	-29 320
Net result for the period	0	0	0	0	46 738	12 796	59 534
Other comprehensive income	0	0	0	0	-23	0	-23
Total comprehensive income	0	0	0	0	46 715	12 796	59 511
Equity as at 31 March 2022	59 466	-128	62 228	35 869	97 383	40 275	295 093
As at 31 March 2021
Equity as at 31 December 2020	53 617	-166	47 775	36 736	5 956	6 099	150 017
Share issue, net of transaction costs	4 715	0	11 787	-434	0	0	16 068
Sale of treasury shares	0	38	0	0	84	0	122
Share-based payment expense	0	0	0	138	0	0	138
Net result for the period	0	0	0	0	14 914	1 593	16 507
Other comprehensive income	0	0	0	0	26	0	26
Total comprehensive income	0	0	0	0	14 940	1 593	16 533
Equity as at 31 March 2021	58 332	-128	59 562	36 440	20 980	7 692	182 878

KEY FINANCIAL FIGURES

	31 Mar	31 Mar	31 Dec
	2022	2021	2021
USD 1000	60 509	14 730	178 279
	13.40	0.13	10.13
	1.84	1.46	1.80
	0.34	0.35	0.34
USD	0.24	0.07	0.53
NOK	2.06	0.61	4.65
USD	1.17	0.79	1.08
NOK	10.20	6.75	9.51
	253 136 666	231 096 752	253 136 666
	257 764 866	235 708 752	250 609 708

DEFINITION OF NON-IFRS FINANCIAL MEASURES

The Group's financial information is prepared in accordance with international financial reporting standards ("IFRS") as adopted by the European Union. In addition, it is the management's intention to provide alternative performance measures that are regularly reviewed by management to enhance the understanding of the Group's performance, but not instead of, the financial statements prepared in accordance with IFRS. The alternative performance measures presented may be determined or calculated differently by other companies. Due to the recent establishment of the enlarged Group, Management is in the initial phase of assessing its external financial reporting and performance measures are therefore subject to change.

The alternative performance measures are intended to enhance comparability of the results and to give supplemental information to the users of the Group's external reporting.

• § Time charter equivalent (TCE) is defined as freight revenues less voyage expenses divided by the number of available on-hire days
• § Current ratio - is defined as total current assets, divided by total current liabilities
• § EBITDA is the earnings before interest, taxes, depreciation and amortisation
• § EBIT is the earnings before interest and taxes. It can be calculated by the result before tax added by the interest
• § Equity ratio is equal to shareholders' equity including non-controlling interest, divided by total assets
• § Interest coverage ratio is equal to earnings before interest and taxes (EBIT), divided by interest expenses
• § Book equity per share is defined as total equity, divided by number of issued shares at end of period

NOTES TO THE CONSOLIDATED ACCOUNTS

The consolidated financial statements are presented in USD thousands unless otherwise indicated

Note 1 Accounting principles

These interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, "Interim Financial Reporting". They do not include all of the information required for full annual financial reporting and should be read in conjunction with the consolidated financial statements of Belships for the year ended 31 December 2021.

EPS is calculated on the basis of average number of outstanding shares in the period in Belships ASA.

This report was approved by the Board of Directors on 12 May 2022.

Note 2 Segment information

USD 1 000	January - March 2022
	Own	Lighthouse	Ship		Group
Gross freight revenue	ships 58 606	Navigation 199 361	managm. 0	Admin. 0	transact. 320	Total 258 287
Voyage expenses	-4 343	-27 212	0	0	753	-30 802
Net freight revenue	54 263	172 149	0	0	1 073	227 485
Management fees	0	2 820	1 301	0	-2 118	2 003
Operating income	54 263	174 969	1 301	0	-1 045	229 488
Share of result from j/v and assoc. comp.	0	12 339	27	0	0	12 366
T/C hire expenses	0	-156 818	0	0	0	-156 818
Ship operating expenses	-13 993	-414	0	0	1 045	-13 362
Operating exps management companies	0	-7 514	-1 050	0	0	-8 564
General and administrative expenses	-167	0	0	-2 434	0	-2 601
Operating expenses	-14 160	-152 407	-1 023	-2 434	1 045	-168 979
EBITDA	40 103	22 562	278	-2 434	0	60 509
Depreciation and amortisation	-7 672	-470	-30	-64	0	-8 236
Gain on sale of ship	12 308	0	0	0	0	12 308
Other gains/-losses	0	3 494	0	0	0	3 494
Operating result (EBIT)	44 739	25 586	248	-2 498	0	68 075
Interest income	3	0	1	0	0	4
Interest expenses	-5 051	-17	-1	-10	0	-5 079
Other financial items	-1 620	1	-9	0	0	-1 628
Currency gains/(-losses)	4	125	21	-791	0	-641
Net financial items	-6 664	109	12	-801	0	-7 344
Result before taxes	38 075	25 695	260	-3 299	0	60 731
Taxes	0	-1 184	-13	0	0	-1 197
Net result	38 075	24 511	247	-3 299	0	59 534
Hereof majority interests	38 075	11 741	221	-3 299	0	46 738
Hereof non-controlling interests	0	12 770	26	0	0	12 796
Assets	633 514	179 970	4 569	56 904	0	874 957
Liabilities	476 648	100 879	1 576	761	0	579 864

Note 2 Segment information, continued

USD 1 000	January - March 2021
	Own	Lighthouse	Ship		Group
	ships	Navigation	managm.	Admin.	transact.	Total
Gross freight revenue	27 504	79 197	0	0	589	107 290
Voyage expenses	-4 354	-28 000	0	0	0	-32 354
Net freight revenue	23 150	51 197	0	0	589	74 936
Management fees	0	1 687	1 089	0	-1 323	1 453
Operating income	23 150	52 884	1 089	0	-734	76 389
Share of result from j/v and assoc. comp.	0	761	-1	0	0	760
T/C hire expenses	0	-46 672	0	0	0	-46 672
Ship operating expenses	-11 135	-414	0	0	734	-10 815
Operating exps management companies	0	-3 049	-914	0	0	-3 963
General and administrative expenses	-95	0	0	-874	0	-969
Operating expenses	-11 230	-49 374	-915	-874	734	-61 659
EBITDA	11 920	3 510	174	-874	0	14 730
Depreciation and amortisation	-6 982	-469	-42	-47	0	-7 540
Gain on sale of ship	0	0	0	0	0	0
Other gains	-6 734	0	0	0	0	-6 734
Operating result (EBIT)	-1 796	3 041	132	-921	0	456
Interest income	218	0	1	0	0	219
Interest expenses	-3 462	-39	-3	-12	0	-3 516
Other financial items	-145	0	-3	0	0	-148
Currency gains/(-losses)	-9	26	2	-266	0	-247
Net financial items	-3 398	-13	-3	-278	0	-3 692
Result before taxes	-5 194	3 028	129	-1 199	0	-3 236
Taxes	0	0	-9	0	19 752	19 743
Net result	-5 194	3 028	120	-1 199	19 752	16 507
Hereof majority interests	-5 194	1 468	87	-1 199	19 752	14 914
Hereof non-controlling interests	0	1 560	33	0	0	1 593
Assets	449 838	55 265	4 833	19 747	0	529 683
Liabilities	309 837	33 757	2 045	1 166	0	346 805

Note 3 Ships

At the end of each reporting period, the Company assesses whether there are any impairment indicators present. The Company has concluded that there are no impairment indicators pursuant to IAS 36.

A total gain of USD 12.3m was recorded during the quarter after BELSTAR and BELOCEAN were delivered to its new owners.

Note 4 Interest bearing debt

Interest bearing bank debt at the end of the quarter amounted to USD 114.5m. Transaction costs related to the mortgage debt were initially recorded as a reduction of debt in the balance sheet and is subsequently amortised over the loan period in accordance with the amortised cost principle.

Leasing liabilities at the end of the quarter arising from bareboat obligations and long-term time charters were USD 326.4m. Corresponding right-of-use assets, including upfront payments relating to the purchase options, were recorded at USD 360.7m.

All lease agreements have fixed interest rates for the entire duration of the charters. Belships has no obligation to purchase any of the leased vessels.

Belships was in compliance with all covenants during the quarter.

Note 5 Subsequent events

Belships has entered into agreements for the acquisition of two modern 64 000 dwt Ultramax bulk carriers built at Japanese shipyards in 2019 and 2020. The vessels are financed through time charter lease agreements for a fixed period of about 5 years within options to extend for a further 2 years. Cash breakeven for each vessel will be about USD 11 200 per day. Belships will pay a total of USD 12.0m as down payment upon delivery of the vessels. The agreements come with options to repurchase the vessels significantly below current market levels. There are no obligations to purchase the vessels at the end of the agreements. The agreements are conditional upon certain steps to be completed by the parties involved. Delivery of the vessels is expected within Q2 2022.

The vessels come with charter employment attached as follows:

About 2.5 years period time charter at a gross rate of USD 21 000 per day. The Charterer has an option for two additional years at USD 21 000 and USD 22 000 per day.

About 6 months remaining period of a legacy time charter contract at a gross rate of USD 13 600 per day.

Belships has declared an option to purchase the Ultramax bulk carrier BELNIPPON (2018). The strike price is significantly below current market levels. Conclusion is expected within Q3 2022.

20 LARGEST SHAREHOLDERS

Updated 11 May 2022

	Number of
Shareholder	shares	%
KONTRARI AS	103 000 000	40.69%
KONTRAZI AS	32 500 000	12.84%
JAKOB HATTELAND HOLDING AS	11 000 000	4.35%
LGT BANK AG	10 453 658	4.13%
MEGLERKONTO INNLAND DNB NOR BANK ASA	10 050 670	3.97%
WENAASGRUPPEN AS	8 149 330	3.22%
SONATA AS	7 747 492	3.06%
JAHATT AS	5 000 000	1.98%
THE BANK OF NEW YORK MELLON SA/NV	3 782 512	1.49%
THE BANK OF NEW YORK MELLON SA/NV	3 107 337	1.23%
SAXO BANK A/S	2 685 795	1.06%
UBS SWITZERLAND AG	2 615 792	1.03%
STAVANGER FORVALTNING AS	2 100 000	0.83%
THE NORTHERN TRUST COMP, LONDON BR	2 078 900	0.82%
J.P. MORGAN SE	2 011 723	0.79%
THE BANK OF NEW YORK MELLON SA/NV	1 427 099	0.56%
STATE STREET BANK AND TRUST COMP	1 425 210	0.56%
SIX SIS AG	1 255 400	0.50%
STATE STREET BANK AND TRUST COMP	1 192 753	0.47%
THE BANK OF NEW YORK MELLON SA/NV	1 077 848	0.43%
OTHER SHAREHOLDERS	40 475 147	15.99%
TOTAL OUTSTANDING SHARES	253 136 666	100.00%

PERIOD CHARTER COVERAGE

Updated 11 May 2022
Vessel	Start	TCE	Duration
BELTOKYO	Dec-21	Index-linked*	22 - 26 months
BELFORCE	Sep-21	\$ 24,000	22 - 25 months
BELKNIGHT	Mar-22	\$ 25,000	22 - 26 months
BELTRADER	Feb-22	\$ 21,400	21 - 24 months
BELGUARDIAN	Dec-21	\$ 24,700	10 - 12 months
BELMAR	Feb-22	\$ 21,600	24 - 29 months
BELFAST	Dec-21	\$ 25,000	11 - 13 months
BELAJA	Dec-21	\$ 22,250	12 - 14 months
BELMOIRA	Jun-21	\$ 23,000	22 - 24 months
BELFUJI	Jun-21	\$ 24,000	22 - 25 months
BELRAY	Jul-21	\$ 23,000	21 - 24 months
BELNIPPON	Jun-21	\$ 22,000	11 - 13 months
BELHAVEN	Oct-21	\$ 26,250	21 - 24 months
BELTIGER	Mar-22	\$ 23,500	22 - 25 months
BELISLAND	Sep-21	\$ 22,000	21 - 24 months
BELINDA	Sep-21	\$ 27,000	10 - 12 months
BELFRIEND	Apr-22	\$ 29,500	11 - 13 months
BELTIDE	Jan-22	\$ 24,500	11 - 13 months
BELHAWK	Apr-22	\$ 22,250	21 - 25 months
BELFOREST	Jun-21	\$ 21,250	11 - 13 months
BELSOUTH	Oct-21	\$ 25,250	23 - 25 months

*TCE linked to 115% of BSI-58 index

Table Includes all ongoing period charters above 180 days

FLEET LIST

Updated 11 May 2022

Ship	Ownership	Built year	Dwt	Yard
BELMONDO (NEWBUILD)	TBD1	2023	64 000	Imabari
BELYAMATO (NEWBUILD)	TBD2	2022	64 000	Imabari
BELTOKYO	BBC3	2021	64 000	Imabari
BELFORCE	BBC4	2021	61 000	Dacks
BELKNIGHT	BBC5	2021	61 000	Dacks
BELTRADER	BBC6	2021	61 000	Dacks
BELGUARDIAN	BBC6	2021	61 000	Dacks
BELMAR	BBC7	2021	64 000	Imabari
BELFAST	BBC8	2021	64 000	Imabari
BELMOIRA	BBC9	2020	61 000	Shin Kurushima
BELAJA	BBC9	2020	61 000	Shin Kurushima
BELFUJI	TC10	2020	63 000	Imabari
Acquisition I	TC11	2020	64 000	Japan
Acquisition II	TC12	2019	64 000	Japan
BELRAY	BBC9	2019	61 000	Shin Kurushima
BELNIPPON	TC10	2018	63 000	Imabari
BELHAVEN	100%	2017	63 000	Imabari
BELTIGER	100%	2017	63 000	New Times
BELISLAND	BBC13	2016	61 000	Imabari
BELINDA	100%	2016	63 000	Hantong
BELMONT	100%	2016	63 000	Hantong
BELATLANTIC	100%	2016	63 000	Hantong
BELLIGHT	BBC14	2016	63 000	New Times
BELFRIEND	100%	2016	58 000	Tsuneishi
BELTIDE	100%	2016	58 000	Tsuneishi
BELFOREST	BBC15	2015	61 000	Imabari
BELHAWK	BBC16	2015	61 000	Imabari
BELPAREIL	100%	2015	63 000	Hantong
BELSOUTH	100%	2015	63 000	Hantong

• 1) Expected to be delivered January 2023
• 2) Expected to be delivered November 2022, 10 yr bareboat charter with purchase options after fourth year
• 3) 12 yr bareboat charter with purchase options after fourth year
• 4) 10 yr bareboat charter with purchase options after third year
• 5) 7 yr bareboat charter with purchase options after third year
• 6) 10 yr bareboat charter with purchase options after fourth year
• 7) 10 yr bareboat charter with purchase options after fourth year
• 8) 10 yr bareboat charter with purchase options after fourth year
• 9) 7 yr bareboat charter with purchase options after fourth year
• 10) 8 yr time charter with purchase options after fourth year
• 11) 5 yr remaining time charter with purchase options from H2 2025
• 12) 4.5 yr remaining time charter with purchase options from H2 2022
• 13) 11 yr bareboat charter with purchase options after third year
• 14) 10 yr bareboat charter with purchase options after third year
• 15) 10.5 yr bareboat charter with purchase options after third year
• 16) 9.5 yr bareboat charter with purchase options after third year

There are no purchase obligations on any of the above lease agreements.