Proceeds from the sale of two newcastlemaxes and much-improved freight earnings earlier this year have given 2020 Bulkers’ first-quarter result a shot in the arm.
The Oslo-listed company reported a net profit before tax of $28.5m for the quarter, up from $800,000 a year earlier.
The quarterly result includes 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 Bulk Shanghai and 207,992-dwt Bulk Seoul (built 2019) were sold in what chairman Magnus Halvorsen, at the time, called an “opportunistic” sale to Neda Maritime of Greece for $127.5m in total.
Another $20.6m gain will be recognised in 2020 Bulkers’ second-quarter results following the delivery of the Bulk Seoul to Neda in April.
First-quarter operating revenue grew to $40.5m from $12.6m year on year due to an unusually strong capesize market in early 2024.
2020 Bulkers’ six newcastlemaxes earned a gross average time-charter equivalent rate of $30,000 per day during the quarter, compared with $17,500 per day in the same period of 2023. In April, average earnings per vessel were $31,300 per day.
All six vessels were fixed on index-linked contracts during the quarter, allowing the company access to higher vessel income as the spot market improved.
2020 Bulkers will distribute $0.14 per share in dividends for April.
It declared total dividends of $1.99 per share for January, February and March.
The first quarter also saw the shipowner terminate interest rate swaps for $2.9m in cash.
It also spent $2.2m in drydocking two of its newcastlemaxes.
