Belships ASA (OSE: BELCO) has entered into letters of intent for the acquisition of two new vessels.

The 61,000 dwt Ultramax bulk carriers of Japanese design are expected to deliver upon completion of construction at a Chinese yard during August-September 2021.

The vessels will be financed thru 10-year bareboat charters. The estimated cash breakeven for the vessels upon delivery is about USD 10,700 per day including operational expenses. Belships will pay a sum of USD 2.6 mill per vessel upon signing contract, expected to occur by the end of the first quarter of 2021. The agreements come with purchase options below current market values and can be exercised after the fourth year until the end of the charters. There are no obligations to purchase the vessels.

The agreements are conditional upon certain subjects being lifted by the parties involved. Conclusion is expected within March 2021.

Belships are taking over existing contracts for two brand new vessels soon ready for delivery whilst the orderbook approaches the lowest levels seen in 30 years. With the supply at a historical low and spot rates not seen in a decade the future earning prospects for these vessels are excellent. The vessel transactions also signal the competitive advantage Belships has in sourcing ship finance. Belships’ fleet continues to increase and improve with only modest cash investments.

Japanese-design Ultramax bulk carriers entering the fleet represent the highest quality and lowest fuel consumption available in the market today. Following completion of announced transactions, the Belships fleet will count 23 Supramax/Ultramax bulk carriers, with an average age of 5 years.

Belships has a uniform and modern fleet of bulk carriers well positioned to capitalise on a recovery for vessel values. We are focused on maintaining a solid balance sheet and liquidity position. Our strategy is to continue developing Belships as an owner and operator of geared bulk carriers, through quality of operations and accretive growth opportunities.

For further information, please contact Lars Christian Skarsgård, Belships CEO, phone +47 977 68 061 or e-mail LCS@belships.no

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act