Belships (BELCO) Q4 2023 earnings summary

Executive summary

• Q4 2023 EBITDA was USD 40.8m, including USD 9.6m from Lighthouse Navigation; net result was USD 22.6m, up from USD 15.3m in Q3.

• Owned-fleet TCE averaged USD 18,449/day, 30% above the BSI-58 average, supported by fixed-rate contracts above spot-market levels.

• Rising freight rates, firm demand and a historically low Supra/Ultramax orderbook supported an improved market outlook.

Financial highlights

• Q4 gross freight revenue was USD 145.1m, net freight revenue USD 108.9m, operating income USD 111.1m and EBIT USD 28.2m.

• Q4 EBITDA was USD 40.8m versus USD 56.2m; net result was USD 22.6m versus USD 34.2m in Q4 2022.

• FY 2023 net freight revenue was USD 424.4m and EBITDA USD 157.6m; net result was USD 86.2m versus USD 175.1m in FY 2022.

• At 31 December 2023, cash was USD 128.3m, book-value ships USD 731.6m, interest-bearing debt USD 563.4m and equity USD 305.6m.

Outlook and guidance

• Fixed coverage: 81% of Q1 2024 ship days at USD 17,000/day; 42% of the next four quarters at an average USD 16,700/day.

• Quarterly coverage and rates: Q1 81% at USD 17,000/day; Q2 42% at USD 16,300; Q3 28% at USD 16,500; Q4 21% at USD 16,000.

• 2024 cash breakeven was ~USD 10,900 per vessel/day, including OPEX, interest and amortisation, G&A and drydocking.

• FFA indications pointed to an average Ultramax market of ~USD 17,000/day for Q2–Q4 2024; current coverage and market expectations supported free cash flow and continued quarterly dividends.