Belships

Earnings Release • Feb 14, 2014

Belships ASA : Report 4th quarter 2013

Belships ASA : Report 4th quarter 2013

RESULTS

Belships revenue in 4th quarter of 2013 was USD 6,680,000 (Q4 2012 : USD

6,663,000), while EBITDA amounted to USD 2,344,000 (USD 2,110,000). The

company's operating profit amounted to USD 1,315,000 (USD 46,000), while total

comprehensive income for 4th quarter of 2013 was USD 693,000 (USD -715,000).

Total comprehensive income for 2013 was USD -157,000 (USD -1,689,000).

The Board proposes a dividend of NOK 0.05 per share for 2013.

Accounts for 4th quarter of 2013 have been prepared in accordance with IAS 34

Interim Financial Reporting and are consistent with the principles applied in

the annual accounts for 2012, taking into account the amendment to IAS 19

effective from 1st January 2013. The interim financial statements have been

prepared in accordance with International Financial Reporting Standards (IFRS),

as adopted by the EU.

MARKET

Capesize market improved during 4th quarter and ended the year at USD 39,000 per

day. Spot market has thereafter softened and is now around USD 8,000 per day.

Panamax and Supramax indices ended 4th quarter at USD 15,500-16,000 per day, but

have subsequently fallen to around USD 10,000 per day. The index for the total

bulk market is approximately 1,100 points. Baltic Exchange value of 5 years old

Supramax and Panamax is USD 24.7 million and USD 25.5 million respectively. Ship

values have risen steadily over the past 12 months.

BUSINESS

M/S Belnor, M/S Belstar and M/S Belocean sails on their long-term charters with

Canpotex in Canada. Canpotex is among the world's largest exporter of potash, a

fertilizer product that is imported in large quantities by countries like China,

India and Brazil. Net T/C rate is USD 16,000 per day, which is a good rate in

today's market.

All ships have sailed without significant off-hire, and operating costs for

2013 are close to budget. Technical management of owned tonnage is handled by

Belships Management (Singapore), which has full technical management of a total

of 20 ships.

In June Belships signed a contract with Imabari Shipbuilding in Japan for the

construction of 2 x 61,000 dwt eco-design Supramax bulk carriers for delivery

the second half of 2015 and first half of 2016 at a price of USD 28.25 million

each. One of the newbuildings will be swapped for the remaining charter period

for either M/S Belnor or M/S Belocean at a net rate of USD 17,300 per day.

M/T Belaia will at the end of this month be returned to the owners, which is

closely related to Imabari Shipbuilding. In return, the ship will be replaced

with an eco-design Supramax newbuilding from Imabari with delivery Q1 2017 for

long-term lease with purchase options. The terms of the new lease will be

closely related to the terms of the lease for M/T Belaia, except that the lease

term is for eight years with three annual renewal options. Purchase option may

be exercised at the end of year 4 at JPY 2.91 billion, with an annual decrease

of JPY 110 million. With this lease Belships ASA will get three identical

Supramax bulk carriers with eco-design from Imabari Shipbuilding for delivery

from 4th quarter of 2015 to 1st quarter of 2017.

FINANCIAL AND OTHER MATTERS

At 31 December, the Group's cash totaled USD 14.3 million compared to USD 13.3

million at 30 September 2013. The company's debt was USD 47.9 million per 30

September and is reduced by USD 1.3 million during Q4.

After yearend Belships has entered into a new term loan facility of USD 50

million for its three bulk carriers already in service. The new loan agreement

is secured for a period of 6 years from February 2014 and both margin and other

conditions will be an encouraging improvement compared to the terms of the

existing financing. The Company has also received offers for funding of its

newbuilding program, but has not yet accepted any offers.

Impairment tests for the company's assets are performed in accordance with IAS

36. The vessels and charter parties are valued based on observable market

values. Based on these internal valuations, no adjustment has been made in the

4th quarter.

At the end of the 4th quarter of 2013, book value per share amounted to NOK

8.70, while the equity ratio was 56.1%.

OUTLOOK

Going forward Belships ASA will concentrate 100% on the dry bulk market .

Newbuilding prices for bulk carriers have tightened up both in Japan and China,

and the earliest delivery in Japan is now 1st half of 2017. Supramax contracts

from Japan is today priced at USD 32-33 million. The total seaborne trade of

bulk commodities are expected to rise by 5.6 % p.a. in 2014-15, while growth in

bulk fleet adjusted for scrapping is estimated to be around 3-4% p.a., after

many years of double-digit fleet growth. The capacity utilization will

consequently improve, and a tightening of rates can be expected.

Belships' vessels are sailing on long-term charter parties to a reputable

counterpart, and short-term market fluctuations will not affect the company's

earnings and cash flow. Existing charter parties represent future nominal

revenues of USD 115 million.

The focus going forward will be to further develop Belships ASA as a long term

tonnage provider of modern bulk carriers to reputable charterers. We aim to

build up a portfolio of ships and charters that will provide a steady return

while minimizing the residual risk exposure through a duration spread.

Oslo, 13th February 2014

The Board of BELSHIPS ASA

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1762007]