Investor Presentation • May 26, 2021
Investor Presentation
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COMPANY PRESENTATION | Q1 2021 May 2021
| Q1 2021 |
Q1 2020 |
|---|---|
| Average TCE |
Average TCE |
| USD 12 162/day | USD 8 636/day |
| EBITDA | EBITDA |
| USD 14.7m | USD 4.9m |
| Net result | Net result |
| USD 16.5m | USD 0.2m |
| Financial position | |
| Assets | Equity and liabilities |
| Owned ships |
Equity |
| USD 206.6m | USD 182.9m (35%) |
| Leased ships |
Mortgage loans |
Mortgage loans USD 134.9m
Lease liabilities USD 161.8m
Other liabilities USD 50.1m
USD 182.2m
Cash and cash equivalents USD 51.6m
Other assets USD 89.3m
Market capitalisation increase
Lighthouse Navigation was established in 2009 and is the commercial arm of Belships ASA providing chartering and operations with a long track record and experience from the dry cargo market. The commercial trading activities have expanded and is now present in Bangkok, Oslo, Singapore and Melbourne. Lighthouse is also the commercial manager of seven handysize vessels owned by SFL Corporation Ltd.
Profitable every year since its inception in 2009
More than 70 vessels managed during the quarter
Present in 4 countries with over 80 employees
Hands-on approach with leading employees invested
Average age of vessels
Purchase options on 50% of current fleet No purchase obligations on any vessels
Ultramax: BSI58 plus 10% premium. BSI58 is BSI52 plus \$293 per day prior to 2015 Kamsarmax: BPI82 2018-2020, BPI74 plus \$1 300 day prior to 2018 Capesize: BCI 5TC 2014-2020, BCI 4TC prior to 2014
| Ultramax | Supramax | ||||||
|---|---|---|---|---|---|---|---|
| Vessel | Built | DWT | Yard | Ownership | |||
| max Ultra 21 x |
BELFORCE (NEWBUILD) | 2021 | 61,000 | Dacks | BB-in1 | ||
| BELKNIGHT (NEWBUILD) | 2021 | 61,000 | Dacks | BB-in2 | max | ||
| BELTRADER (NEWBUILD) | 2021 | 61,000 | Dacks | BB-in3 | pra | ||
| BELGUARDIAN (NEWBUILD) | 2021 | 61,000 | Dacks | BB-in3 | Su 5 x |
||
| BELMAR (NEWBUILD) |
2021 | 64,000 | Imabari | BB-in3 | |||
| BELFAST | 2021 | 64,000 | Imabari | BB-in4 | |||
| BELAJA | 2020 | 61,000 | Shin Kurushima |
BB-in5 | |||
| BELMOIRA | 2020 | 61,000 | Shin Kurushima | BB-in5 | |||
| BELFUJI | 2020 | 63,000 | Imabari | TC-in6 | |||
| BELRAY | 2019 | 61,000 | Shin Kurushima | BB-in7 | |||
| BELNIPPON | 2018 | 63,000 | Imabari | TC-in8 | |||
| BELHAVEN | 2017 | 63,000 | Imabari | Owned | |||
| BELTIGER (TO BE DELIVERED) | 2017 | 63,000 | New Times | Owned9 | |||
| BELISLAND | 2016 | 61,000 | Imabari | BB-in10 | |||
| BELFOREST | 2015 | 61,000 | Imabari | BB-in11 | |||
| BELINDA | 2016 | 63,000 | Hantong | Owned | |||
| BELMONT | 2016 | 63,000 | Hantong | Owned | |||
| BELATLANTIC | 2016 | 63,000 | Hantong | Owned | |||
| BELLIGHT | 2016 | 63,000 | New Times | Owned | |||
| BELPAREIL | 2015 | 63,000 | Hantong | Owned | |||
| BELSOUTH | 2015 | 63,000 | Hantong | Owned |
| Vessel | Built | DWT | Yard | Ownership | ||
|---|---|---|---|---|---|---|
| max pra Su 5 x |
BELOCEAN | 2011 | 58,000 | Dayang | Owned | |
| BELNOR | 2010 | 58,000 | Dayang | Owned | ||
| BELSTAR | 2009 | 58,000 | Dayang | Owned | ||
| BELCARGO | 2008 | 58,000 | Tsuneishi | Owned | ||
| BELFRI | 2007 | 55,000 | Kawasaki | Owned |
The group has no purchase obligations on any of the lease agreements
1) On delivery 2H 2021 10 years bareboat charter with purchase options after third year
2) On delivery 2H 2021 7 years bareboat charter with purchase options after third year
3) On delivery 2H 2021 10 years bareboat charter with purchase options after fourth year
4) Delivered Q1 2021 10 years bareboat charter with purchase options after fourth year
5) Delivered Q1 2020 7 years bareboat charter with purchase options after fourth year
6) Delivered Q1 2020 8 years time charter with purchase options after fourth year
7) 7 years bareboat with purchase options after fourth year
8) 8 years time charter with purchase options after fourth year
9) Expected delivery Q2/Q3 2021
10)15 years bareboat charter with purchase options after fifth year 11)12 years bareboat charter with purchase options after third year
2021
CORONA (COVID-19) – With vaccines being rolled out there are clear signs of the economy recovering and pent-up demand driving the market. The pandemic has put strains on our sailling officers and crew, however we have managed to maintain safe and continued vessel operations.
CARGO – A rally in commodity markets after a cold winter season resulted in the strongest start to the year in a decade. Import figures for most regions are again showing growth, after a period in 2020 where China almost single handedly spurred a rebound in the dry bulk market. Global steel production is running high as evidenced by prices for iron ore has passed USD 200 per ton displaying very strong economics in steel production margins.
ORDERBOOK/SUPPLY - The publicly quoted order book for the Supra/Ultramax segment is below 5 per cent – historically very low. In relative terms, we are heading towards the lowest rate of supply growth in 30 years. The average sailing speed has increased, showing that the market has been able to absorb this inherent fleet supply during a sharp increase in spot rates. This is an important indicator of a stronger market sentiment.
STIMULUS AND ECONOMIC GROWTH – Continued credit growth and economic stimulus is expected to support the dry bulk market in 2021-23 as the effects of fiscal stimulus usually lags about 12-24 months. Seaborne iron ore is predominantly driven by Chinese demand whereas minor bulks tend to correlate closer with GDP. Forecasts for GDP growth in 2021 have been continuously revised upwards. General consensus points towards healthy levels of economic activity for 2022.
MARKET PROSPECTS – The market outlook has turned very bullish. With the rate of growth on the supply side diminishing and post-COVID-19 normalisation now occuring in tandem with a wider commodity rally it appears that the stars are aligning for the dry bulk market in 2021-22. Even though ship values have started to increase, there is significant potential for upside should the market for ships reflect rates and values according to historical correlations.
Surging commodity prices
31 per cent of available ship days in the next four quarters are booked at about USD 16 200 net per day
Cash flow from operations in 2021 given freight rates
Introducing quarterly dividends commencing Q2 2021, targeting 50% of net income
Proven track record – growth delivered
Simple structure, low costs and governance leader
More than 50% of the fleet with purchase options – no obligations
High operational leverage providing significant upside and dividend capacity
Infrastructure boom ahead of lowest orderbook in 30 years
This presentation has been prepared by Belships ASA (the "Company") exclusively for information purposes. This presentation is confidential and may not be copied, distributed, reproduced, published or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient, to any other person (whether within or outside such person's organisation or firm) or published in whole or in part, by any medium or in any form for any purpose or under any circumstances.
The information in this presentation speaks as of 25 May 2021 and the Company assumes no obligation to amend, correct or update the information in this presentation. None of the Company or any of their respective directors, officers, employees, agents, affiliates, advisors or any person acting on their behalf, shall have any liability whatsoever, (whether direct or indirect, in contract, tort or otherwise) for any loss whatsoever arising from any use of this presentation, or otherwise arising in connection with this presentation.
The contents of this presentation shall not be construed as legal, business or tax advice, and the furnishing of this presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisers. Prospective investors should consult its own legal, business or tax advisor as to legal, business or tax advice.
This presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or subsidiaries or any such person's directors, officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments.
This presentation has been prepared for information purposes only, and does not constitute or form part of, and should not be construed as, any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity.
This presentation is subject to Norwegian law and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo district court as legal venue.
| Q1 | Q1 | |||
|---|---|---|---|---|
| USD 1 000 | 2021 | 2020 | 2020 | |
| Gross freight revenue | Note | 107 290 | 49 475 | 220 332 |
| Voyage expenses | -32 354 | -17 792 | -61 065 | |
| Net freight revenue | 2 | 74 936 | 31 683 | 159 267 |
| Management fees | 1 453 | 1 873 | 6 095 | |
| Operating income | 2 | 76 389 | 33 556 | 165 362 |
| Share of result from j/v and assoc. comp. | 760 | 573 | 3 052 | |
| T/C hire expenses | -46 672 | -15 583 | -90 401 | |
| Ship operating expenses | -10 815 | -9 901 | -38 675 | |
| Operating expenses ship management | -914 | -961 | -3 490 | |
| General and administrative expenses | -4 018 | -2 831 | -11 862 | |
| Operating expenses | -61 659 | -28 703 | -141 376 | |
| EBITDA | 14 730 | 4 853 | 23 986 | |
| Depreciation and amortisation | 3 | -7 540 | -6 728 | -27 286 |
| Impairment | 3 | 0 | 0 | -4 957 |
| Gain on sale of ships | 0 | 2 469 | 2 469 | |
| Other gains/(-losses) | 6 | -6 734 | 2 936 | 1 165 |
| Operating result (EBIT) | 456 | 3 530 | -4 623 | |
| Interest income | 219 | 250 | 985 | |
| Interest expenses | -3 516 | -3 639 | -13 668 | |
| Other financial items | -148 | -224 | -729 | |
| Currency gains/(-losses) | -247 | 272 | 875 | |
| Net financial items | -3 692 | -3 341 | -12 537 | |
| Result before taxes | -3 236 | 189 | -17 160 | |
| Taxes | 8 | 19 743 | -37 | -583 |
| Net result | 16 507 | 152 | -17 743 | |
| Hereof majority interests | 14 914 | 0 | -19 898 | |
| Hereof non-controlling interests | 1 593 | 152 | 2 155 | |
| Earnings per share | 0.07 | 0.00 | -0.08 | |
| Diluted earnings per share | 0.07 | 0.00 | -0.08 |
| 31 Mar | 31 Mar | 31 Dec | ||
|---|---|---|---|---|
| USD 1 000 | 2021 | 2020 | 2020 | |
| NON-CURRENT ASSETS | Note | |||
| Intangible assets | 8 | 19 752 | 3 910 | 1 770 |
| Ships, owned | 3 | 206 590 | 206 184 | 214 494 |
| Ships, right-of-use assets | 3 | 182 205 | 161 230 | 157 143 |
| Prepayment of lease obligations on ships | 0 | 0 | 3 000 | |
| Property, Plant, and Equipment | 5 002 | 4 438 | 4 878 | |
| Investments in j/v and assoc. companies | 3 492 | 2 803 | 2 123 | |
| Other non-current assets | 119 | 17 706 | 5 394 | |
| Total non-current assets | 417 160 | 396 271 | 388 802 | |
| CURRENT ASSETS | ||||
| Asset held for sale | 3 | 6 701 | 0 | 5 917 |
| Bunkers | 9 551 | 7 593 | 5 344 | |
| Current receivables | 44 701 | 11 014 | 30 431 | |
| Cash and cash equivalents | 51 570 | 34 809 | 33 985 | |
| Total current assets | 112 523 | 53 416 | 75 677 | |
| Total assets | 529 683 | 449 687 | 464 479 | |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Paid-in capital | 7 | 154 206 | 126 077 | 137 962 |
| Retained earnings | 20 980 | 25 717 | 5 956 | |
| Non-controlling interests | 7 692 | 4 623 | 6 099 | |
| Total equity | 182 878 | 156 417 | 150 017 | |
| Non-current liabilities | ||||
| Mortgage debt | 4 | 115 942 | 126 181 | 119 561 |
| Lease liability | 5 | 151 285 | 134 412 | 127 754 |
| Other non-current liabilities | 2 264 | 3 191 | 2 769 | |
| Total non-current liabilities | 269 491 | 263 784 | 250 084 | |
| Current liabilities | ||||
| Mortgage debt | 4 | 18 953 | 3 388 | 22 176 |
| Lease liability | 5 | 10 482 | 9 129 | 11 986 |
| Other current liabilities | 47 879 | 16 969 | 30 216 | |
| Total current liabilities | 77 314 | 29 486 | 64 378 | |
| Total equity and liabilities | 529 683 | 449 687 | 464 479 |
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