Tor Olav Troim-backed 2020 Bulkers has logged a big reduction in earnings for its newcastlemax fleet during August.
The Oslo-listed company has reduced its monthly investor payout as a result.
In August, the shipowner achieved average time charter equivalent (TCE) earnings of $21,800 per day.
This compares to $32,500 per day in July.
The six ships on index-linked time charters earned $16,700 per day, down from $30,600 the month before.
There were average daily scrubber benefits worth $4,000 per day as part of the August figure, compared to $4,100 a month earlier.
The company’s two vessels trading on fixed-rate time charters earned $37,000 per day, versus $38,100 in July, including average daily scrubber benefits of $5,300 per day, down from $6,400.
The Baltic 5TC Capesize Index averaged $9,339 per day during August, down from $20,173 during July.
The owner will pay a dividend of $0.06 per share for August, compared to $0.18 for the month before.
Fearnley Securities said August’s numbers represented “quite solid rates”.
Outlook gloomy
“Capesize rates have however tumbled as of late,” analysts Oystein Vaagen, Erik Gabriel Hovi and Ulrik Mannhart added.
Forward freight agreements (FFAs) are even more negative than the 5TC index, they pointed out.
“The September contract currently quotes at $7,600 per day,” the analysts said.
Six of the company’s bulkers are on charter to Koch Logistics and the other two are contracted to Glencore.
2020 Bulkers brought in a new revenue stream in October 2021, when it signed a contract to provide sister company Himalaya Shipping with technical management of its LNG-fuelled newcastlemaxes, which are being built in China.
