Belships expands fleet with a new Ultramax bulk carrier
Belships ASA (OSE: BELCO) has entered into a letter of intent for the acquisition of a new vessel.
The 61,000 dwt Ultramax bulk carrier of Japanese design is expected to be delivered upon completion of construction at a Chinese yard during October-November 2021.
The vessel will be financed thru a 7-year bareboat charter. The estimated cash breakeven for the vessel upon delivery is about USD 10,900 per day including operational expenses. Belships will pay a sum of USD 2.9 mill upon signing contract, expected to occur during April 2021, and which will be financed from available cash. The agreement comes with purchase options below current market values and can be exercised after the third year until the end of the charter. There are no obligations to purchase the vessel.
The agreement is conditional upon certain subjects being lifted by the parties involved. Conclusion is expected within April 2021.
Belships is again taking over an existing contract for a brand new vessel soon ready for delivery whilst the orderbook approaches the lowest levels seen in 30 years. This vessel transaction signals the competitive advantage Belships has in sourcing ship finance. Belships’ fleet continues to increase and improve with only modest cash investments.
The previously announced sale of BELFORT has been completed and the vessel has been delivered to its new owners. Following completion of announced transactions, the Belships fleet will count 24 Supramax/Ultramax bulk carriers, with an average age of 5 years.
Belships has a uniform and modern fleet of bulk carriers well positioned to capitalise on a recovery for vessel values. We are focused on maintaining a solid balance sheet and liquidity position. Our strategy is to continue developing Belships as an owner and operator of geared bulk carriers, through quality of operations and accretive growth opportunities.