Belships

Capital/Financing Update • Jun 15, 2021

Belships fleet expansion, period charter contract, refinancing and delivery update for newbuildings

Belships fleet expansion, period charter contract, refinancing and delivery update for newbuildings

Belships ASA (OSE: BELCO) fleet expansion, period charter contract, refinancing

and delivery update for newbuildings

Belships has entered into an agreement for the acquisition of an Ultramax bulk

carrier built in 2015 by a Japanese shipyard in a cash transaction. Delivery of

the vessel is expected within October 2021. The agreed purchase price is JPY

2.52bn (about USD 22.9m). The vessel is intended to be financed with bank

financing for approximately 60 per cent of the purchase price. The estimated

cash breakeven for the vessel upon delivery is about USD 9 500 per day including

operational expenses. The agreement is conditional upon certain steps to be

completed by the parties involved. Conclusion is expected within June 2021.

Belships has entered into agreement for a period time charter contract for one

of our modern Ultramaxes of Japanese design for a period of between 22-24 months

at a gross rate of USD 23 000 per day. The contract is expected to commence by

the end of June 2021.

Belships has exercised an option to purchase the Ultramax vessel BELISLAND and

subsequently entered into agreement to sell and lease back the vessel on

bareboat charter for 11 years with options to purchase the vessel again after

the third year at below current market levels. The new daily rate will reduce

the vessels cash breakeven by about USD 1100 per day and have a positive cash

effect upon delivery of about USD 2.5 million. The agreement is conditional upon

certain steps to be completed by the parties involved. Delivery into the new

bareboat agreement is expected within September 2021.

Belships has previously announced transactions for 4 x Newbuilding resales of

61 000 dwt Japanese design and 1 x Newbuilding resale of 64 000 dwt Japanese

design financed through bareboat agreements with purchase options. Two of these

will be delivered earlier than expected - so all five vessels are now scheduled

to be delivered within August and September 2021.

"We expand our fleet with high quality tonnage, cut costs and secure contract

revenue at highly profitable levels which supports our recently announced

dividend policy. Newbuilding resales delivering ahead of time underpins the

quality of Japanese shipbuilding. Our goal remains focused on creating value for

our shareholders and increase the attractiveness of trading our shares," said

Belships CEO, Lars Christian Skarsgård.

Belships has a uniform and modern fleet well positioned to capitalise on a

strong dry bulk market. Five newbuildings are expected to be delivered within Q3

2021, all of which have finance arranged. Following completion of all announced

transactions, the Belships fleet will count 27 bulk carriers, with an average

age of 5 years and average cash breakeven of about USD 10 500 per day. Our

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

carriers, through quality of operations and with the purpose of creating and

maximising shareholder value.

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

phone +47 977 68 061 or e-mail LCS@belships.no (mailto:LCS@belships.no)

This stock exchange announcement was published by Edwin Johansen,

Accounting Manager in Belships ASA on 15 June 2021 at 10:04 CET.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.