Norway’s Belships has boosted its value through an expanded newbuilding programme, according to Clarksons Securities.
The investment bank said the Oslo-listed owner/operator is in the money on 10 Japanese vessels due to join the fleet on time charters.
In April, Belships signed a deal to lease two more ultramax bulkers that will be delivered from an unnamed Japanese shipyard in 2028.
The additional 64,000-dwt newbuildings mean the Norwegian shipowner is awaiting delivery of 10 ultramaxes from shipbuilders in Japan by 2028.
The first new vessel is expected in the final quarter of this year.
Analysts led by Frode Morkedal said all 10 ships have the same financing structure through charters with fixed interest rates and operating expenses, in addition to carrying purchase options without any obligation to actually buy.
The cash breakeven rate for these vessels is slightly higher than the current market level at $14,250 per day, but Belships is not required to pay any equity instalments, the analysts noted.
“Effectively, the company has 10 fully debt-financed call options on the market,” they said.
Since the bulkers were first ordered, newbuilding values have steadily increased, and the breakeven rate today would be $15,250 per day, Clarksons calculated.
“Assuming the $1,000 per day difference discounted for 10 years at 11.5% gives a NAV [net asset value] contribution of circa $20m,” the investment bank said.
Clarksons has raised its NAV assessment for Belships to NOK 30 ($2.72) per share, against a trading price of NOK 25.40 in Oslo on Thursday.
The team has maintained a “buy” rating on the stock.
