2020 Bulkers recorded a profitable second quarter, but its results are softer than last year on the back of a weaker freight market for capesize and newcastlemax bulk carriers.
Six of its eight newcastlemaxes operated on index-linked contracts during the period.
The Oslo-listed company reported a net profit before tax of $4.8m for the period, equivalent to $0.21 in earnings per share.
This is lower than the second quarter of 2022, when the company recorded a net result of $12m and basic earnings per share of $0.54.
Total revenue shrank to $17.1m from $23.3m year on year.
Freight rates for capesizes and newcastlemaxes did not take off as had been hoped during the second quarter. 2020 Bulkers’ eight newcastlemaxes earned an average gross time-charter equivalent (TCE) rate of $23,800 per day during the period, compared to $32,300 per day in the same period of 2022.
During July, its vessels’ average gross TCE earnings were $21,200 per day.
The dividend was $0.19 per share for the months of April, May and June combined. For the month of July, the dividend was $0.04 per share.
The results mean that 2020 Bulkers had a weaker first six months of the year in 2023, when net income totalled $5.6m, compared with $17.9m in the first half of last year.
2020 Bulkers now has free cash resources of $15.2m available for future investment as of 30 June.
Last month, the company extended the index-linked time charter contract for 208,000-dwt Bulk Sandefjord to run until September 2024 to January 2025.
