Analysts have hailed the latest round of results filed by bulker owner Belships and its decision to distribute 100% of its net income in dividends.
Belships beat consensus estimates for headline figures including net profit, operating revenue and earnings per share (see table below), but its reported Ebitda was lower than expected.
Belships’ costs were slightly lower than analysts expected, having pre-paid $13.5m in bank debt during the quarter and reduced the margin on its bank loan by 195 basis points going ahead.
Fearnleys called the first-quarter results a “sound update” from Belships. “Definitely no drama here,” said Norne Research.
Ebitda and operating income were the only weak spots, falling below what analysts expected due to a smaller contribution by Belships’ affiliate commercial platform, Lighthouse Navigation.
“The main segment of operated ships reported operating income of $42.8m versus our $44.7m predictions with similar differences between Ebitda estimates. Lower results [quarter on quarter] were also impacted by a lower contribution from the Lighthouse Navigation segment,” Norne Research analyst Mindaugas Cekanavicius said in a note on Wednesday.
“However, what surprised on the positive end was the 100% dividend payout ratio leading to [dividend per share] of NOK 0.60 [$0.05] due to solid cash position.”
Fearnleys said it had expected Lighthouse to make a bigger contribution — as much as $8.5m — to Belships’ Ebitda.
Lighthouse contributed $4.7m to Belships’ $31.3m Ebitda for the first quarter, which was slightly below the consensus estimate of $34m.
Shift in reporting
From the second quarter onwards, Belships will report only what the Oslo-based branch of Lighthouse Navigation contributes to its results, following a change in its ownership structure.
The shipowner bought an extra 33% of the Oslo company in April, which has boosted its shareholding to 67%.
In its quarterly report, Belships revealed that it will collect $14m for its 50.01% stake in the Asia branch of Lighthouse, which was sold as part of an employee buyout. The fee will be paid over the next 15 months.
Fearnleys said the consideration will be “accretive” to Belships’ cash breakeven rate, which is expected to be $10,900 per day this year.
Fearnleys has Belships’ stock rated as a “buy”.
