Belships (BELCO) Q2 2024 earnings summary

Executive summary

• Q2 2024 EBITDA was USD 29.3m and net result USD 18.9m, with a declared dividend of NOK 0.55 per share, representing 70% of net result.

• Two debt-free Supramax vessels sold for USD 56.6m; purchase option for BELMAR declared at USD 25.5m, below market value.

• Acquired a 2024-built Ultramax for USD 41m (delivery Q1 2025); expanded newbuilding program with two leased vessels for 2027 and 2028.

• Extended and amended bank financing with improved terms, new maturity in Q2 2029, and a new undrawn Accordion Tranche of USD 100m.

• Uniform fleet of 41 Ultramax vessels, including 12 newbuildings scheduled for delivery from 2024 to 2028.

Financial highlights

• Gross freight revenue for Q2 2024 was USD 84.6m; EBITDA USD 29.3m (including USD 2.9m from operating business); net result USD 18.9m.

• Cash and cash equivalents stood at USD 92.2m as of June 30, 2024; interest-bearing debt at USD 536.5m.

• TCE for owned fleet averaged USD 16,982 per day in Q2 2024, outperforming the Baltic Supramax Index.

• 83% of ship days in Q3 2024 fixed at USD 16,800 per day; 41% of next four quarters fixed at USD 16,650 per day.

• Ship operating expenses were USD 5,148 per vessel per day, down from the previous quarter.

Outlook and guidance

• Forward market expects Ultramax rates to average USD 17,500 per day for the rest of 2024; ship values continue to rise.

• Cash breakeven for 2024 is USD 10,900 per day per vessel.

• 41% of ship days over the next four quarters are fixed, providing significant contract coverage.

• Free cash flow generation and continued quarterly dividends expected based on contract coverage and market outlook.

• If current market levels persist, ship values may increase further.