Earnings Release • Aug 13, 2025
Earnings Release
Open in ViewerOpens in native device viewer
2020 BULKERS LTD.
Results for the Second Quarter and First Half of 2025
2020 Bulkers Ltd. ("2020 Bulkers" or the "Company") today announced its unaudited financial and operating results for the three and six months ended June 30, 2025.
Consolidated Statements of Operations
Operating revenues and other income were US\$14.7 million for the three months ended June 30, 2025 (US\$38.9 million for the three months ended June 30, 2024). The decrease compared to the three months ended June 30, 2024, is due to reduced time charter rates achieved and 33 days off-hire in connection with drydocking (no off-hire during the three months ended June 30, 2024). The Company achieved an average time charter equivalent rate, gross, of US\$29,700 for the three months ended June 30, 2025, compared to US\$34,300 for the three months ended June 30, 2024. During the three months ended June 30, 2024, the Company recognized a gain of US\$20.4 million on the sale of Bulk Seoul. During the three months ended June 30, 2025, the Company charged approximately US\$0.4 million (US\$0.4 million during the three months ended June 30, 2024) for management services recognized as Other operating income. During the three months ended June 30, 2025, the Company recognized US\$1.0 million in gain on forward freight agreements as Other operating income.
Total operating expenses were US\$7.5 million for the three months ended June 30, 2025 (US\$6.8 million for the three months ended June 30, 2024).
Vessel operating expenses were US\$3.8 million and US\$3.4 million for the three months ended June 30, 2025 and 2024, respectively.
Voyage expenses and commission were US\$0.3 million for the three months ended June 30, 2025 (US\$0.2 million for the three months ended June 30, 2024).
General and administrative expenses were US\$1.0 million for the three months ended June 30, 2025 (US\$0.9 million for the three months ended June 30, 2024).
Depreciation and amortization were US\$2.4 million and US\$2.3 million for the three months ended June 30, 2025 and 2024, respectively.
Total financial expenses, net, were US\$1.5 million for the three months ended June 30, 2025 (US\$0.9 million for the three months ended June 30, 2024). The increase compared to the three months ended June 30, 2024 is primarily due to a US\$1.6 million amortization of realized interest rate swap gain reducing interest expense partly offset by higher SOFR during the three months ended June 30, 2024.
Operating revenues were US\$24.2 million for the six months ended June 30, 2025 (US\$79.4 million for the six months ended June 30, 2024). The Company achieved an average time charter equivalent rate, gross, of US\$24,500 for the six months ended June 30, 2025, compared to US\$32,000 for the six months ended June 30, 2024. During the six months ended June 30, 2025, the Company charged US\$0.7 million (US\$0.7 million during the three months ended June 30, 2024) for management services recognized as Other operating income in the Consolidated Statements of Operations. During the six months ended June 30, 2025, the Company recognized US\$1.4 million in gain on forward freight agreements as Other operating income. During the six months ended June 30, 2024, the Company recognized a gain of US\$40.9 million for the sale of Bulk Shanghai and Bulk Seoul.
Total operating expenses were US\$15.0 million for the six months ended June 30, 2025 (US\$15.6 million for the six months ended June 30, 2024).
Vessel operating expenses were US\$7.6 million and US\$8.2 million for the six months ended June 30, 2025 and 2024, respectively. The decrease compared to the six months ended June 30, 2024, is primarily due to the sale of Bulk Seoul and Bulk Shanghai during the first half of 2024.
Voyage expenses and commission were US\$0.8 million for the six months ended June 30, 2025 (US\$0.4 million for the six months ended June 30, 2024). The increase compared to the six months ended June 30, 2024, is due primariliy due to long sailing distances from discharge ports to yard in China in connection with drydocking of two vessels during the six months ended June 30, 2025.
General and administrative expenses were US\$1.9 million for the six months ended June 30, 2025 (US\$2.0 million for the six months ended June 30, 2024).
Depreciation and amortization were US\$4.7 million and US\$5.0 million for the six months ended June 30, 2025 and 2024, respectively. The decrease compared to the six months ended June 30, 2024, is primarily due to the sale of Bulk Shanghai and Bulk Seoul during the six months ended June 30, 2024.
Total financial expenses, net, were US\$3.3 million for the six months ended June 30, 2025 (US\$3.9 million for the six months ended June 30, 2024). The decrease compared to the six months ended June 30, 2024, is primarily due to the settlement of the sale leaseback financings for Bulk Shanghai and Bulk Seoul, higher SOFR and write down of deferred loan costs of US\$0.9 million partly offset by amortization of realized interest rate swap gain of US\$1.6 million reducing interest expense during the six months ended June 30, 2024.
The Company had total assets of US\$266.4 million as of June 30, 2025, (December 31, 2024: US\$266.6 million).
Total shareholders' equity was US\$149.7 million and US\$151.9 million as of June 30, 2025 and December 31, 2024, respectively.
Total liabilities as of June 30, 2025, were US\$116.7 million (December 31, 2024: US\$114.7 million).
Net cash provided by operating activities was US\$3.8 million for the three months ended June 30, 2025 (US\$10.5 million for the three months ended June 30, 2024). The decrease compared to the three months ended June 30, 2024, is primarily due to reduced time charter rates achieved. In addition the Company incurred US\$2.0 million in expenses relating to scheduled drydockings during the three months ended June 30, 2025 (nil for the three months ended June 30, 2024).
Net cash used in investing activities was nil for the three months ended June 30, 2025 (US\$62.1 million provided by investing activities for the three months ended June 30, 2024). The Company received net proceeds of US\$62.1 million from sale of vessel during the three months ended June 30, 2024.
Net cash used in financing activities was US\$6.2 million during the three months ended June 30, 2025 (US\$109.1 million used in financing activities during the three months ended June 30, 2024). The Company paid US\$6.2 million of dividends during the three months ended June 30, 2025. The Company repaid the outstanding balance of US\$31.4 million on the sale leaseback financing for Bulk Seoul, repaid US\$27.5 million of the outstanding balance in connection with refinancing of the term loan and paid US\$48.3 million of dividends during the three months ended June 30, 2024.
Net cash provided by operating activities was US\$6.8 million for the six months ended June 30, 2025 (US\$21.3 million for the six months ended June 30, 2024). The decrease compared to the three months ended June 30, 2024, is primarily due to reduced time charter rates achieved. In addition the Company incurred US\$4.5 million in expenses relating to scheduled drydockings during the six months ended June 30, 2025 (US\$2.2 million for the six months ended June 30, 2024).
Net cash received from investing activities was nil for the six months ended June 30, 2025 (US\$125.8 million for the six months ended June 30, 2024. The Company received US\$125.8 million in net proceeds from the sale of vessels.
Net cash used in financing activities was US\$8.3 million during the six months ended June 30, 2025 (US\$158.6 million used in financing activities during the six months ended June 30, 2024). The Company paid US\$8.3 million of dividends and cash distributions during the six months ended June 30, 2025. The Company repaid US\$27.5 million on the term loan in connection with the refinancing, repaid the outstanding balances of total US\$62.9 million on the sale leaseback financing for Bulk Shanghai and Bulk Seoul, paid scheduled debt amortization of US\$3.7 million and paid US\$61.8 million of dividends during the six months ended June 30, 2024.
The Board is pleased that the Company has remained profitable for each quarter following delivery of the first vessel in the third quarter of 2019.
The Board remains focused on returning the majority of operational free cash flow after debt service back to shareholders on a monthly basis. The Company has as of today declared dividends or cash distributions for 62 consecutive months. Following the dividend for July, the Company will have returned approximately 154% of the paid-in equity to shareholders.
The Company has a solid funding situation with a cash position of approximately US\$16 million as of August 11, 2025.
Cash breakeven for the fleet, which includes expected general and administrative expenses, operating costs and debt service is estimated at approximately US\$11,500 per vessel per day.
The Company had as of August 11, 2025, around US\$96 million of net debt, corresponding to approximately US\$16 million per vessel.
In the second quarter of 2025, the Company achieved average time charter equivalent earnings of approximately US\$29,700 per day, gross, on the Company's vessels trading on index linked time charter including average daily scrubber benefits of approximately US\$1,300 per day and realized gain of forward freight contracts of US\$2,700 per day.
The Baltic 5TC Capesize Index averaged US\$18,681 per day in Q2 2025.
The Company achieved average time charter equivalent earnings for July 2025 of approximately US\$31,700, per day, gross. The Baltic 5TC Capesize Index has averaged US\$22,008 per day in the same period.
2020 Bulkers has commercially outperformed the Baltic 5TC index for 68 out of 72 months since delivery of its first vessel.
All the concluded charters represent a significant earnings premium to a standard Capesize vessel driven by the additional cargo intake and lower fuel consumption. Charterers are also paying a premium to reflect the economic benefit of our vessels' scrubbers.
The structure of our index-linked contracts allows the Company to convert these charters to fixed rates on the basis of the prevailing FFA market from time to time, should we wish to increase our level of fixed charter coverage. In addition the Company have established an arrangement with a financial institution to enter into forward freight agreements ("FFA"). The FFA can be used to hedge floating time charter rate to fixed time charter rate or unwind a hedge (conversion of index-linked time charter rate to fixed time charter rate) that we have entered into with our time charter counterpart.
The current chartering status is summarized in the table below:
| Ship name | Delivery | Charterer | Rate US\$ | Charter expiry |
|---|---|---|---|---|
| Bulk Sandefjord | Aug-19 | Koch | Index linked + premium + scrubber benefit, FFA fixed 33,800 Aug 1 – Dec 31, 2025 |
Dec 26 – Dec 27 |
| Bulk Santiago | Sep-19 | Koch | Index linked + premium + scrubber benefit, FFA fixed 33,600 Aug 1 – Dec 31, 2025 |
Dec 26 – Dec 27 |
| Bulk Shenzhen | Jan-20 | Koch | Index linked + premium + scrubber benefit |
Dec 26 – Dec 27 |
| Bulk Sydney | Jan-20 | Koch | Index linked + premium + scrubber benefit |
Dec 26 – Dec 27 |
| Bulk Sao Paulo | Jun-20 | Costamare | Index linked + premium + scrubber benefit |
Apr 26 – Jun 26 |
| Bulk Santos | Jun-20 | Costamare | Index linked + premium + scrubber benefit |
Apr 26 – Jun 26 |
Bulk Shenzhen and Bulk Sydney completed their five year special surveys in March 2025, while the five year special surveys for Bulk Sao Paulo and Bulk Santos was completed in April and June 2025, respectively. Total cost was approximately US\$5.0 million for the four vessels and the full fleet have now completed 5 year special surveys. The Company incurred 63 days and 33 days of off-hire in Q1 and Q2 2025, respectively. The extended off-hires are due to yard congestion and long sailing distances from discharge ports to yard in China.
The Baltic 5TC Capesize index (as of August 11, 2025) stands at US\$27,506 having averaged US\$17,216 year to date, down from US\$23,623 during the same period in 2024.
The Capesize and Newcastlemax market showed strength in Q2 bouncing back from a Q1 which experienced loadport weather inefficiencies, especially on the Australian iron ore export. The Baltic 5TC index averaged US\$18,681 in Q2.
Capesize demand registered a modest decline against last year's exceptionally robust market, with tonne-mile demand down by 1.2 % year over year.
The change in Capesize tonne-miles for Q2 year over year was driven by a 1% increase in iron ore and a 14% decrease in coal. Bauxite export volumes have continued to grow, showing a 27% increase year over year.
Chinese iron ore imports were up ~2%, from 301 million tonnes in Q2 2024 to 307 million tonnes in Q2 2025.
Chinese iron ore port inventories have decreased 15 million tonnes in Q2 2025 compared to same period in 2024, after decreasing from a top of 150 million tonnes in February 2025. The last five months shows that the iron ore stockpiles are decreasing, and imports have continued to rise.
Growth in vessel supply for large bulk carriers is still expected to be moderate in the coming years with expected Capesize deliveries of 3.6 million dwt (or 1 % of existing fleet) for the remainder of 2025, 11 million dwt in 2026 (or 2.7 % of existing fleet), 11 million dwt for 2027 (or 2.7% of existing fleet) and 12 million dwt (or 3% of existing fleet) after 2027. As a consequence of the high ordering in other shipping segments, Chinese yards are believed to have very limited capacity for ordering of large drybulk vessels before 2028. This gives good visibility for limited supply growth in the coming years. New ordering is expected to remain subdued in part driven by uncertainties as it relates to the optimal propulsion systems to meet the shipping industry's ambitions for de-carbonization. The fact that large bulk carriers are a relatively low margin product for the shipyards also means the yards favor building container ships, tankers and gas carriers. Current newbuilding costs for a scrubber fitted Newcastlemax in China is believed to be around US\$76-78 million.
We reiterate that the upside risks to the future development in the Capesize market from current levels, relate to continued strong exports of iron ore and bauxite from Brazil and West Africa. The Simandou project in Guinea is reportedly progressing well, with the first shipment expected in November 2025, followed by a 24-month ramp-up to 60 million tonnes per annum for Phase 1 and an additional 60 million tonnes per annum for Phase 2. Furthermore, Vale aims to increase capacity by 50 million tonnes per annum by 2026 from its Vargem Grande, Capanema, and S11D mines.
We also note that another longhaul trade has been established in 2025, where India has started to import vast volumes of iron ore from Brazil, where a large Brazilian miner announced last week that they expect to sell 10 million tonnes to India in 2025. With India becoming a net importer of iron ore, and the desired way of imports so far has been on Capesize/Newcastlemax vessels, we remain more optimisitic for the increased tonne-mile effect for the larger dry bulk vessels in the next few years.
Special surveys continue to have an effect on the highly utilized Capesize fleet. Around 23% of the fleet will have to drydock in 2025, and has already been absorbing vessels. This is a 52% increase compared to dry dockings completed in 2024. Historical drydock data from 2015 to date shows that a 5, 10 and 15 year Special Survey on average takes 13, 16 and 19 days to complete, respectively. Year to date indications shows increased docking duration and congestion at yards.
Key downside risks to the Capesize market include a continued economic slowdown in China, as well as heightened geopolitical tensions, now also with trade wars including higher tolls and tariffs.
The global Capesize fleet stands at 404 million dwt as of July 30, 2025, up from 399 million dwt in August 2024. The current orderbook for Capesize dry bulk vessels currently stands at 9.4% of the existing fleet, up from 8% in 2024.
7.2 million dwt has been ordered so far in 2025, compared to 12.6 million dwt during the same period in 2024. 0.65 million dwt has been scrapped so far in 2025, compared to 0.53 million dwt during the same period in 2024.
By the end of 2027, 141 Capesize vessels will have reached 22 years of age, which is the current average scrapping age.
2020 Bulkers has a robust financial structure with moderate financial leverage, comprised of non-amortizing debt, as well as a solid cash position. Our operating cash breakeven is estimated at approximately US\$11,500 per vessel per day. The current FFA curve for the balance of 2025 implies earnings of approximately US\$38,000 per day for a scrubber fitted Newcastlemax.
The Company will continue its strong capital discipline, and will remain focused on returning the majority of free cash flow to shareholders as monthly dividends.
2020 Bulkers Ltd. will release its financial results for the second quarter of 2025 on Wednesday, August 13, 2025. A conference call and webcast will be held at 3:00 PM CET. The earnings report and presentation will be available from the Investor Relations section on www.2020bulkers.com on the same day.
In order to listen to the presentation, you may do one of the following:
Listen-only webcast (including the slide presentation):
https://channel.royalcast.com/landingpage/hegnarmedia/20250813_3/
or you can click the "Webcast" link on www. 2020bulkers.com/investor-relations/financialinformation-reports/
Telephone conference:
PIN Code for all countries: 172292
DK: +45 7876 8490 SE: +46 8 1241 0952 NO: +47 2195 6342
UK: +44 203 769 6819 US: +1 646-787-0157
There will be a Q&A session after the presentation.
This report includes forward looking statements. Forward looking statements are, typically, statements that do not reflect historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions. The forward-looking statements in this report are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although 2020 Bulkers Ltd. believes that these assumptions are reasonable, they are, by their nature, uncertain and subject to significant known and unknown risks, contingencies and other factors which are difficult or impossible to predict and which are beyond our control. Such risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein.
The information, opinions and forward-looking statements contained in this reportspeak only as of the date hereof and are subject to change without notice.
We confirm, to the best of our knowledge, that the interim condensed consolidated financial statements for the first half year of 2025, which have been prepared in accordance with US GAAP, give a true and fair view of the Company's consolidated assets, liabilities, financial position and results of operations, and that the first half 2025 report includes a fair review of the information required under the Norwegian Securities Trading Act section 5-6 fourth paragraph.
2020 Bulkers Ltd. is a limited liability company incorporated in Bermuda on 26 September 2017. The Company's shares are traded on Oslo Børs under the ticker "2020". 2020 Bulkers is an owner of six large dry bulk vessels.
August 13, 2025
Lori Wheeler Naess Viggo Bang-Hansen
Director Director
Magnus Halvorsen
Chairperson
2020 BULKERS LTD.
2020 Bulkers Management AS Tjuvholmen allé 3, 9th floor, 0252 Oslo, Norway
+47 22 83 30 00
2020 Bulkers Ltd. S.E. Pearman Bldg., 2nd floor, 9 Par-la-Ville Road Hamilton HM 11, Bermuda
+1 441 542 9329
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.