Belships

Belships expands fleet with two new Ultramax bulk carriers

Belships ASA (OSE: BELCO) has entered into letters of intent for the acquisition

of two new vessels.

The 61,000 dwt Ultramax bulk carriers of Japanese design are expected to deliver

upon completion of construction at a Chinese yard during August-September 2021.

The vessels will be financed thru 10-year bareboat charters. The estimated cash

breakeven for the vessels upon delivery is about USD 10,700 per day including

operational expenses. Belships will pay a sum of USD 2.6 mill per vessel upon

signing contract, expected to occur by the end of the first quarter of 2021. The

agreements come with purchase options below current market values and can be

exercised after the fourth year until the end of the charters. There are no

obligations to purchase the vessels.

The agreements are conditional upon certain subjects being lifted by the parties

involved. Conclusion is expected within March 2021.

Belships are taking over existing contracts for two brand new vessels soon ready

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

years. With the supply at a historical low and spot rates not seen in a decade

the future earning prospects for these vessels are excellent. The vessel

transactions also signal the competitive advantage Belships has in sourcing ship

finance. Belships' fleet continues to increase and improve with only modest cash

investments.

Japanese-design Ultramax bulk carriers entering the fleet represent the highest

quality and lowest fuel consumption available in the market today. Following

completion of announced transactions, the Belships fleet will count 23

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] (mailto:[email protected])

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act

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