Tor Olav Troim-backed 2020 Bulkers has pushed up earnings from fixed-rate charters as index-linked returns fall.
The Oslo-listed owner of eight newcastlemaxes said average time charter equivalent income was $15,800 per day in February, down from $16,500 in January.
The two vessels trading on index-linked time charters managed $9,500 per day in February, including average daily scrubber benefits of $3,500, compared with four ships on index-linked deals that earned $15,900 the month before.
But the six ships on fixed time charters earned $18,300 per day last month, with a scrubber premium of $600 on top.
In January, the figure from four bulkers on fixed rates was only $17,000 when the scrubber premium was $1,100 per day.
The Baltic Exchange’s 5TC capesize index averaged $3,749 per day during February, down from $9,065 in January.
The 2020 Bulkers board approved a cash distribution of $0.01 per share for the month, unchanged from January.
During February, the shipowner converted index-linked deals to fixed-rate contracts with Koch for the 208,000-dwt Bulk Shanghai and Bulk Seoul (both built 2019).
These will last until the end of September at $22,850 per day.
More index-linked cash coming
Following this period, the deals have been extended on index-linked terms for six months, “reflecting a significant premium to a standard capesize vessel”, the company said.
Until the end of March, 2020 Bulkers has seven vessels fixed at an average rate of $18,963.
Fearnley Securities said the company had made a “strong” move to focus on fixed-rate deals in the first quarter.
But in the second quarter, four ships will move back to index-linked arrangements, which the investment bank sees as opportune with the Baltic index climbing up to $12,200.
