Belships has expanded its newbuilding program with two new 64 000 dwt Ultramax
bulk carriers which will be delivered in 2028. The vessels are leased on similar
terms as previously announced transactions, and Belships is not required to make
any down payments for these vessels. The agreements are conditional upon certain
steps to be completed by the parties involved.
Belships now has a total of 10x newbuildings under construction at Japanese
shipyards with delivery between 2024 and 2028. All vessels are leased on time
charter for a period 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 14 250 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.
Belships will be taking over new vessels whilst the orderbook and supply side in
the dry bulk market approaches the lowest levels in decades. New Japanese-design
Ultramax bulk carriers represent the highest quality and lowest fuel consumption
available in the market today.
"These newbuildings represent growth prospects for the company packaged with
financing which solves the predicament of very long lead times for new ships
without jeopardising return on capital in the meantime. The acquisitions will
also contribute to retaining a low and competitive cash break-even in the future
as the fixed-cost structure for the newbuildings will blend with existing
vessels with lower leverage or free of debt," said Lars Christian Skarsgård, CEO
of Belships ASA.
For further information, please contact: Lars Christian Skarsgård, CEO, phone
+47 977 68 061 or e-mail LCS@belships.no (mailto:LCS@belships.no)
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act