Newcastlemax owner 2020 Bulkers had a profitable third quarter, but has cut its latest monthly dividend on the back of weaker freight rates in October.
The Oslo-listed shipowner booked net profit of $11.6m for the third quarter, up from $5.2m in the same period last year.
The company declared a smaller dividend of $0.15 per share for the month of October, down from $0.20 for September.
In October, 2020 Bulkers’ fleet of six newcastlemaxes earned a gross time-charter equivalent earnings of $31,400 per day as the capesize market weakened.
This is down from $36,600 per day on average during the third quarter, including average daily scrubber benefits of about $2,300 per day.
All six ships are on index-linked contracts and have a daily cash breakeven of $11,700 per vessel per day.
Average capesize spot rates fell by 37% during April. 2020 Bulkers’ larger newcastlemaxes typically earn a 42% premium over this level on index-linked contracts.
Four of 2020 Bulkers’ vessels are chartered to Koch, which is a shareholder in the company. The other two are fixed to an unnamed European charterer and will expire in April.
Operating revenues were $19.9m for the third quarter, up by 17% year on year.
It also received $300,000 from the sale of a 40% stake in 2020 Bulkers Management to fellow newcastlemax owner Himalaya Shipping during the quarter.
The management arm was responsible for overseeing technical management of Himalaya’s newbuilding programme.
Shipping investor Tor Olav Troim was a founding shareholder in both 2020 Bulkers and Himalaya.
2020 Bulkers has declared dividends or cash distributions for 53 consecutive months.
