Newcastlemax owner 2020 Bulkers has secured new two-year time-charters for two of its vessels.

An unnamed “European charterer” has fixed the 208,000-dwt bulk carriers Bulk Santos and Bulk Sao Paulo (both built 2020) on index-linked contracts, but commercial terms were not disclosed publically.

The time-charters will begin between May and August this year when the ships redeliver from their existing employment, and will run until 1 April and 31 June 31, 2025, the Oslo-listed owner said on Friday.

The charters “reflect a significant premium to a standard capesize vessel, as well as an additional premium related to the fuel cost saving from the scrubbers,” 2020 Bulkers noted in its release.

The Bulk Sao Paulo is currently on charter to Glencore and earning a fixed daily rate of $16,146 plus scrubber benefits.

The Bulk Santos is also currently on charter to Glencore at an undisclosed index-linked rate.

Reacting to the news, Fearnleys Securities highlighted the premium in earnings that 2020 Bulkers has been able to generate with the help from scrubber benefits.

“Notably, 2020 has averaged a 53% premium to the 5TC capesize index throughout 2022 on its index-linked TCs [time-charters], which has included an average scrubber benefit of c. $3,000/day,” analysts Oystein Vaagen and Ulrik Mannhart said in a note on Friday.

This could imply average vessel earnings of $22,500 per day this year, based on the same scrubber premiums and current forward freight agreement pricing for the calendar year 2023, they added. 2020 Bulkers’ daily breakeven rate is $15,700.

“Notably, current bunker forwards suggest the scrubber benefit for [newcastlemaxes] remains strong over the coming years,” the Fearnleys analysts said.

Fearnleys currently has 2020 Bulkers’ stock rated as a ‘Hold’ with a target price of NOK 100.

Shares were trading at NOK 99 as of 10am in Oslo on Friday.