Belships

Belships expands fleet with a new Ultramax bulk carrier

Belships ASA (OSE: BELCO) has entered into a letter of intent for the

acquisition of a new vessel.

The 61,000 dwt Ultramax bulk carrier of Japanese design is expected to be

delivered upon completion of construction at a Chinese yard during October-

November 2021.

The vessel will be financed thru a 7-year bareboat charter. The estimated cash

breakeven for the vessel upon delivery is about USD 10,900 per day including

operational expenses. Belships will pay a sum of USD 2.9 mill upon signing

contract, expected to occur during April 2021, and which will be financed from

available cash. The agreement comes with purchase options below current market

values and can be exercised after the third year until the end of the charter.

There are no obligations to purchase the vessel.

The agreement is conditional upon certain subjects being lifted by the parties

involved. Conclusion is expected within April 2021.

Belships is again taking over an existing contract for a brand new vessel soon

ready for delivery whilst the orderbook approaches the lowest levels seen in 30

years. This vessel transaction signals the competitive advantage Belships has in

sourcing ship finance. Belships' fleet continues to increase and improve with

only modest cash investments.

The previously announced sale of BELFORT has been completed and the vessel has

been delivered to its new owners. Following completion of announced

transactions, the Belships fleet will count 24 Supramax/Ultramax bulk carriers,

with an average age of 5 years.

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

capitalise on a recovery for vessel values. We are focused on maintaining a

solid balance sheet and liquidity position. Our strategy is to continue

developing Belships as an owner and operator of geared bulk carriers, through

quality of operations and accretive growth opportunities.

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 24 March 2021 at 08:55 CET.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act

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