SOLID RESULT AND DIVIDEND AMIDST INCREASED MARKET UNCERTAINTY

HIGHLIGHTS

• EBITDA of USD 27.0m including USD 1.5m from Norwegian Bulk Carriers

• Net result of USD 19.3m

•Declared dividend of NOK 0.50 per share, in addition to the extraordinary dividend of NOK 1.00 per share paid in October

•Sold two debt-free Supramax vessels (2016-built) for a total of USD 56.6m with a book gain of USD 6.5m

•First newbuilding BELGRACE was delivered in September and entered a contract of about 18 months at USD 16 500 gross per day

•TCE of USD 16 724 gross per day for owned fleet

•80 per cent of ship days in Q4 2024 are fixed at USD 16 200 gross per day

•37 per cent of ship days in the next four quarters are fixed at USD 16 200 gross per day

•Cash breakeven for 2024 of about USD 10 900 per day per vessel

•Uniform fleet of 42x Ultramax vessels including 12x newbuildings

Subsequent events

Belships has expanded its newbuilding program with one new 64 000 dwt Ultramax bulk carrier which will be delivered during the second half of 2027. The vessel is leased on similar terms as other lease agreements previously announced, and Belships is not required to make any down payments for this vessel.

USD 8.3m of bank debt has been voluntarily repaid in November, reducing outstanding bank debt to USD 81.0m. After this, no instalments are due before 2026.

Financial results commentary

Belships reports a net result of USD 19.3m compared to USD 18.9m in the previous quarter. The result in both quarters included extraordinary book gains of about USD 6m, which relates to the sale of BELTIDE and BELFRIEND in this quarter and the reorganisation of the operating business in the previous quarter.

Time charter equivalent earnings (TCE) in the quarter were USD 16 724 gross per vessel per day. In comparison, the comparable Baltic Exchange index for Ultramax vessels (BSI-63) averaged USD 16 591 gross per day.

Ship operating expenses amounted to USD 5 514 per vessel per day compared to USD 5 391 per vessel per day year-to-date. The increase in operating expenses is primarily due to a higher number of crew changes in the quarter.

Transactions

BELFRIEND (2016) and BELTIDE (2016) were delivered to their new owners in July and August. A gain of USD 6.5m has been realised. After these sales Belships’ fleet consists solely of modern Ultramax bulk carriers.

Following the reorganisation of our operating business, USD 10m cash as part consideration was received in July. A further cash consideration of USD 4m will be received within Q2 2025.

Fleet status

One vessel was drydocked in the quarter. The remaining fleet sailed without significant off-hire with a total of 2 613 on-hire vessel days in the quarter.

Belships’ vessels are not transiting the Red Sea nor the Black Sea, and none of our vessels have been involved in any related incidents.

Belships currently has 10x vessels chartered out on, index-linked, contracts on varying durations, at an average premium of 103 per cent to the corresponding Baltic index for Ultramax vessels (BSI-63). Belships has the option to convert any portion of the remaining period to a fixed rate, based on the prevailing FFA curve at any given time.

Cash breakeven for 2024 is about USD 10 900 per vessel per day. This includes OPEX, interest and amortisation, G&A and drydocking expenditures.

Newbuildings

Japanese-design 64 000 dwt Ultramax bulk carriers

One further newbuilding agreement has been entered into, to be named BELCARGO.

Updated delivery schedule:

BELFORTUNE   expected delivery Q4 2025

BELFOX               expected delivery Q4 2025

BELFUTURE       expected delivery Q2 2026

BELAVANTI         expected delivery Q4 2026

BELTEMPO        expected delivery Q4 2026

BELROSSO         expected delivery Q1 2027

BELSTAR             expected delivery Q3 2027

BELCARGO         expected delivery Q3 2027 (new)

BELVICTORY     expected delivery Q3 2027

BELNOR             expected delivery Q1 2028

BELOCEAN         expected delivery Q3 2028

BELFRIEND       expected delivery Q3 2028

All vessels are leased on time charter for periods up to a maximum of 7 to 10 years from delivery, with purchase options around current market levels. There is no obligation to purchase any of the vessels. Cash breakeven for the vessels upon delivery is about USD 14 300 per day on average. Belships is not using any equity, therefore this newbuilding program will not have any impact on cash and dividend capacity during the construction period.

The Japanese-design bulk carriers entering the fleet represent the highest quality and lowest fuel consumption available in the market today and will contribute to further reduce Belships’ carbon emissions on an intensity-basis.

Operating business

Norwegian Bulk Carriers (NBC) recorded an EBITDA of USD 1.5m for the quarter. Despite the challenging market conditions NBC continues to contribute to Belships’ profitability and dividend capacity.

The average EBITDA per quarter in the last five years for Norwegian Bulk Carriers has been USD 2.5m.

Sustainability

Belships aims for high standards in corporate governance and is well placed to deliver emission cuts in line with industry ambitions for 2030. Belships publishes a sustainability report on an annual basis (ESG Report) reflecting our commitment to transparency and efforts to meet investor and stakeholder expectations.

Belships was ranked in the top quartile in the Webber Research Report: 2024 ESG Scorecard. The research report aims to identify where each company ranks against its listed peers within the shipping industry.

Financial and corporate matters

At the end of the quarter, cash and cash equivalents totalled USD 153.6m, whilst interest bearing bank debt amounted to USD 89.3m.

Leasing liabilities at the end of the quarter amounted to USD 475.0m, details on a per-vessel basis can be found in disclosure 4 of the financial statement.

All leased vessels are calculated with the assumption that purchase options to acquire the vessels will be exercised. However, Belships has no obligation to acquire any of the leased vessels.

All lease agreements have fixed interest rates for the entire duration of the contracts and all purchase options are denominated in USD.

At the end of the quarter, book value per share amounted to NOK 12.01 (USD 1.14), corresponding to a book equity ratio of 33 per cent. Value-adjusted equity is significantly higher.

Full report: Belships ASA