Belships

Belships ASA (OSE: BELCO) fleet expansion and time charter contract for newbuilding

Belships has entered into agreements for the acquisition of two bulk carriers of

about 58,000 dwt built in 2016 by a Japanese shipyard. Both vessels have passed

dry docking surveys during 2021. Delivery is expected within end of November

2021. The agreed purchase price is USD 28.0m for each vessel. The intention is

to utilise bank financing for up to 60 per cent of the purchase price. The

estimated cash breakeven for each vessel upon delivery is about USD 9,000 per

day including operational expenses. The agreement is conditional upon customary

closing steps to be completed by the parties involved.

BELMAR delivered from Imabari Shipbuilding in September and subsequently entered

into a time charter contract for about 5-7 months at a gross rate of USD 41,000

per day.

"The vessel acquisitions add to the company's increasingly compelling earnings

prospects and display Belships' ability to source accretive transactions with

short lead time and efficient use of capital," said Belships CEO, Lars Christian

Skarsgård.

Belships has a uniform and modern fleet of bulk carriers well positioned to

capitalise on a strong dry bulk market. Following completion of all announced

transactions, the Belships fleet will count 29 Supramax/Ultramax bulk carriers,

with an average age of 4 years and average cash breakeven of about USD 10 500.

Our strategy is to develop Belships as an owner and operator of geared bulk

carriers, through quality of operations and pursue accretive growth

opportunities for the purpose of maximising shareholder value. Based on current

market expectations, we expect to generate significant free cash flow and aim to

pay quarterly dividends as announced with our dividend policy.

For further information, please contact Lars Christian Skarsgård, Belships CEO,

phone +47 977 68 061 or e-mail [email protected]

This stock exchange announcement was published by Edwin Johansen, Accounting

Manager in Belships ASA on 4 October 2021 at 07:00 CET.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act

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