10-11-2022 Belships unrattled by falling freight market as profit holds steady, By Holly Birkett, TradeWinds
The rout in freight markets did not hold back results for bulker owner Belships during the third quarter. The Oslo-listed company, which has 31 supramax and ultramax vessels, saw improved bottom-line growth compared to the previous three months and is paying out another dividend to shareholders. Belships recorded $49.8m in net profit for the third quarter, up from $35.2m in the same period last year. The Norwegian firm said the positive net result was “mainly driven by fleet expansion and the book gain from the sale of Belpareil of $10m”. Operating expenses have also fallen significantly compared to last year, which Belships said was due to lower Covid-19-related crewing expenses and vessel takeover costs.
Belships has declared a dividend of NOK 0.75 per share for the three-month period, the same as for the second quarter. The net result came despite a 25% year-on-year fall in net freight revenue for the whole fleet, which was $151.1m during the third quarter. Belships vessels earned a gross time-charter equivalent (TCE) rate of $24,155 per day on average, much the same as they did during the second quarter. The Baltic Supramax Index (BSI) averaged $19,728 gross per day in the third quarter. Belships’ in-house commercial platform Lighthouse Navigation continued to deliver solid results, but weaker freight markets could have an impact. The operator generated Ebitda of $10.1m for the third quarter, but this figure includes provisions for potential loss-making contracts of $4.6m based on the forward freight market at the end of the quarter. Belships’ overall Ebitda for the period was $56.4m, including the contribution from Lighthouse.
Looking ahead, Belships has fixed 90% of its available ship days during the fourth quarter at an average gross rate of $22,900 per day. Its daily cash breakeven for 2023 is approximately $10,900 per vessel. It said that 64% of its ship days in the next four quarters are fixed at $22,300 per day.
Belships has been active in fixing vessels on period contracts and chartered out a further three ultramaxes in October. The China-built Belpareil (built 2015), which was one of the oldest in the Belships fleet, was sold in May for around $29.5m to a Norwegian KS company. The buyer has since been named as Atle Bergshaven’s Bergshav Management. Meanwhile, Belships’ fleet has grown to 31 vessels with the delivery of the 64,000-dwt Belyamato this month from Imabari Shipyard in Japan.
Shortly after Belships announced its third-quarter results on Thursday, CEO Lars Christian Skarsgard acquired 25,000 shares in the firm at a price of NOK 14.38 per share through his company AS Torinitamar. Skarsgard subsequently owns 19,900 shares in his own name; 775,000 shares through AS Torinitamar and 5m options.
Belships shares were trading at NOK 14.70 as of 10:30am in Oslo on Thursday, down by 2.65% since the market opened.