Belships

Capital/Financing Update • May 12, 2021

Belships ASA fleet expansion and time charter contract

Belships ASA fleet expansion and time charter contract

Belships ASA (OSE: BELCO) has agreed to acquire a newbuilding resale financed

through a bareboat agreement for 10 years. The 61,000 dwt Ultramax bulk carrier

of Japanese design is expected to be delivered upon completion of construction

at a Chinese yard during November 2021 and will be named BELFORCE. 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 3.0 mill upon

signing contract, expected to occur during the second quarter 2021, and which

will be financed from available cash. The agreement comes with purchase options

significantly 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 June 2021.

Belships is 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. Japanese-design Ultramax bulk carriers entering

the fleet represent the highest quality and lowest fuel consumption available in

the market today.

BELFOREST has been fixed for a time charter contract to a global agricultural

corporation for about 1 year at a daily rate of USD 21,250 per day gross. The

contract starts running within the end of May 2021.

"This is another step in expanding and developing Belships. We expect this

vessel acquisition to add to the company's increasingly compelling earnings

prospects. Together with the latest time charter contract we believe these

agreements will generate outsized returns and contribute to generate

distributable income," said Belships CEO, Lars Christian Skarsgård.

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

been delivered to its new owners.

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

capitalise on a strong dry bulk market. Five newbuildings are expected to be

delivered between August-November 2021, all of which have finance arranged.

Following completion of all announced transactions, the Belships fleet will

count 26 Supramax/Ultramax bulk carriers, with an average age of under 5 years

and average cash breakeven of about USD 10 500. Our strategy is to develop

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

operations and pursue accretive growth opportunities for the purpose of

maximising shareholder value.

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

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

This stock exchange announcement was published by Edwin Johansen,

Accounting Manager in Belships ASA on 12 May 2021 at 07:00 CET.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act