Belships ASA: Fleet Expansion
22 April 2024 - 9:30AM
UK Regulatory
Belships ASA: Fleet Expansion
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
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
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