Belships (BELCO) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 EBITDA of USD 27.0m and net result of USD 19.3m, including USD 1.5m from Norwegian Bulk Carriers.

• Declared NOK 0.50 per share dividend and paid NOK 1.00 extraordinary dividend in October.

• Sold two debt-free Supramax vessels for USD 56.6m, realizing a book gain of USD 6.5m.

• Delivered first newbuilding BELGRACE, securing an 18-month contract at USD 16,500/day.

• Expanded newbuilding program to 12 Ultramax vessels for delivery 2025–2028, all fully financed.

Financial highlights

• Q3 2024 gross freight revenue: USD 86.1m; net freight revenue: USD 67.3m.

• EBITDA for Q3 2024: USD 27.0m; net result: USD 19.3m.

• Cash and cash equivalents at quarter-end: USD 153.6m.

• Interest-bearing debt: USD 564.3m; bank debt: USD 89.3m; leasing liabilities: USD 475.0m.

• Earnings per share for Q3 2024: USD 0.08 (diluted); YTD Q3 2024: USD 0.21.

Outlook and guidance

• 80% of Q4 2024 ship days fixed at USD 16,200/day; 37% of next four quarters fixed at same rate.

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

• FFA market indicates average Ultramax rate of USD 14,000 for next twelve months.

• Expectation to generate free cash flow and continue quarterly dividends based on contract coverage and market expectations.

• 12 newbuildings scheduled for delivery between 2025 and 2028, all fully financed with no cash invested.