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Belships ASA fleet expansion and time charter contract for newbuilding

Belships has entered into agreements for the acquisition of two bulk carriers of about 58,000 dwt built in 2016 by a Japanese shipyard. Both vessels have passed dry docking surveys during 2021. Delivery is expected within end of November 2021. The agreed purchase price is USD 28.0m for each vessel. The intention is to utilise bank financing for up to 60 per cent of the purchase price. The estimated cash breakeven for each vessel upon delivery is about USD 9,000 per day including operational expenses. The agreement is conditional upon customary closing steps to be completed by the parties involved.

BELMAR delivered from Imabari Shipbuilding in September and subsequently entered into a time charter contract for about 5-7 months at a gross rate of USD 41,000 per day.

“The vessel acquisitions add to the company’s increasingly compelling earnings prospects and display Belships’ ability to source accretive transactions with short lead time and efficient use of capital,” said Belships CEO, Lars Christian Skarsgård.

Belships has a uniform and modern fleet of bulk carriers well positioned to capitalise on a strong dry bulk market. Following completion of all announced transactions, the Belships fleet will count 29 Supramax/Ultramax bulk carriers, with an average age of 4 years and average cash breakeven of about USD 10 500. Our strategy is to develop Belships as an owner and operator of geared bulk carriers, through quality of operations and pursue accretive growth opportunities for the purpose of maximising shareholder value. Based on current market expectations, we expect to generate significant free cash flow and aim to pay quarterly dividends as announced with our dividend policy.
Source: Belships

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