Belships

Capital/Financing Update • May 10, 2019

Belships hedges 2020 fuel costs

Belships hedges 2020 fuel costs

Belships ASA (OSE: BEL) has entered into an agreement to hedge the price

differential between compliant 0.5% sulphur fuel oil (VLSFO) and 3.5% sulphur

fuel oil (HSFO).

The secured exposure is for 24,000 tons of bunkers for the full calendar year

2020. The volume equals the annual fuel consumption of about four vessels. The

fixed price differential is USD 198 per ton, with monthly settlements in 2020.

The company's trading fleet will be physically ready by January 2020 to comply

with the IMO Sulphur Cap 2020, which prohibits marine bunkering fuels containing

more than 0.5 per cent sulphur in order to improve the shipping industry's

environmental footprint.

The bunker price differential hedge reduces downside risks and represents an

efficient alternative to costly installations of scrubbers, whilst retaining

full utilization of the fleet and the flexibility to adjust the position as the

market develops.

Following recent acquisitions, the Belships fleet counts 19 Supramax/Ultramax

bulk carriers, including one newbuilding from Imabari, Japan in the first half

of 2020.

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

phone +47 977 68 061 or e-mail LCS@belships.no.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.