Belships

Belships ASA: Refinancing two vessels with long term lease agreements

Belships has entered into agreements to sell and lease back BELLIGHT and

BELFOREST on bareboat charters for 10 and 11.5 years, respectively. The

agreements come with options to repurchase the vessels at below current market

levels. There are no purchase obligations at the end of the agreements. The

lease agreements have fixed interest rates for the entire period with an average

cost of capital of about 4.4 per cent. Net cash effect upon delivery will be

about USD 14.0 million in total. Delivery into the new bareboat agreements is

expected within Q1 2022. These agreements signal the competitive advantage

Belships has in sourcing ship finance.

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

capitalise on a strong dry bulk market. The Belships fleet consists of 27

Supra/Ultramax bulk carriers, with an average age of below 4 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. Based on current market expectations, we expect to generate significant

free cash flow and aim to pay quarterly dividends as announced with our dividend

policy.

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

phone +47 977 68 061 or e-mail [email protected]

This stock exchange announcement was published by Edwin Johansen, Accounting

Manager in Belships ASA on 19 January 2022 at 11:10 CET.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act

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