Belships ASA exercises purchase options

Furthermore, Belships has agreed to acquire a 64 000 DWT Japanese 2024-built ultramax from an unrelated party. The purchase price was US$41.0 million and the vessel will be delivered within 1Q25. The intention is to utilise the company's available Accordian Tranche which implies financing for 60% of the purchase price and the remaining will be financed from the company’s available cash.

The sale of the two supramax vessels Belfriend and Beltide announced previously are expected to be handed over to their new owners within 3Q24. As the vessels are free of debt the sales proceeds of US$56.6 million will add to Belships’ strong cash position.

Lastly, Belships has expanded its newbuilding programme with two new 64 000 DWT ultramax bulk carriers which will be delivered in 2027 and 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. Belships has a total of 12 newbuildings under construction at Japanese shipyards with delivery between 2024 and 2028. All vessels are 100% financed through lease agreements for 7 - 10 years with purchase options. Belships is not using any equity, therefore this will not have any impact on cash and dividend capacity during the construction period.

“These acquisitions add to a pipeline of growth, increasing our company’s fleet and earnings potential by a third over the next few years. Access to the highest-quality vessels and shipyards combined with financing is our competitive advantage, and we firmly believe this will continue to create value for our company and shareholders,” said Lars Christian Skarsgård, CEO of Belships ASA.

Including the announced transactions, and newbuilding programme, the Belships fleet will total 41 vessels consisting entirely of ultramax bulk carriers with an average build year of 2021.

Read the article online at: https://www.drybulkmagazine.com/shipping/27062024/belships-asa-exercises-purchase-options/