Newcastlemax owner 2020 Bulkers’ second-quarter bottom line has been lifted by gains from a vessel sale earlier this year.
The Oslo-listed shipowner also revealed a new loan that will lower its daily operating costs.
It booked net profit of $31.1m during the quarter, up from $4.8m a year earlier.
The result includes a $20.4m gain from the sale of the 207,992-dwt Bulk Seoul (built 2019), which was delivered to the buyer in April.
2020 Bulkers’ first-quarter results also included a $20.5m gain from the sale of the 208,445-dwt Bulk Shanghai (built 2019), which was delivered to the buyer in March.
The shipowner, which is backed by investor Tor Olav Troim, said it has used these gains to repay $27.5m of its debt.
It has also entered into a new $112.5m non-amortising loan facility, which matures in April 2029 and bears interest at a rate of SOFR plus 195 basis points.
The loan will lower the company’s cash breakeven to an estimated $11,800 per day.
2020 Bulkers’ six newcastlemaxes earned gross time charter equivalent earnings of about $34,300 per day on average during the second quarter.
The fleet’s average daily earnings rose to $37,600 per day in July.
The July dividend of $0.20 per share was the same as for June.
Analyst reaction
Analysts said the results fell mostly within their expectations.
DNB Bank’s shipping equities team thinks the figures warrant “a slight positive share price reaction in a flat market” of between zero and 3%.
There was little reaction in 2020 Bulkers’ share price Oslo on Wednesday morning.
Shares were down by 0.6% at NOK 143.60 shortly after the market opened.
DNB said consensus estimates were “clouded by gains from sale of assets being included in estimates”.
But it said the owner’s July update “shows continued strong performance” and calculated an 18% run-rate dividend yield.
