2020 Bulkers Ltd

Hello and welcome to the 2020 Bolgus Q1 report for 2024. For the first part of this call, all participants sign a listen-only mode. Afterwards, there'll be a question and answer session. To ask a question during the Q&A, please press five star on your telephone keypad. This call is being recorded. I'll now hand the call over to Magnus Halvorsen, chairman of the board. Please go ahead.

Thank you, operator. Welcome everyone to the first quarter 2024 Earnings Conference Call for 2020 Bulkers. As usual, I'm also joined here today by our Chief Financial Officer, Vidar Hasun. Before we start the presentation, we'd like to remind you that we will be discussing matters that are forward-looking in nature. These forward-looking assumptions are based on the company's current views with regards to future events and are subject to risk and assumptions subject to uncertainties. Actual results may differ materially. And with that, I'll move it over to the highlights for the quarter. It was an eventful quarter for us, and I'll start with some of the highlights. We reported a net profit of 28.5 million and EPS of $1.25. This includes $20.5 million in gain for the sale of bulk Shanghai, which was booked during the first quarter. Trading-wise, we achieved time-sharp equivalent earnings of approximately 30,000 per day gross. This compares to the Baltic 5TC index, which averaged 24,286. For the months of June through March, we declared total dividends of $1.99 per share. This includes a 168 special dividend from the sale of Bolk Sol and Bolk Shanghai, which were sold for a total consideration of $127.5 million, resulting in a net gain of approximately 40 million. During the quarter, we also terminated interest rate swaps that were set to mature in August and September for 2.9 million in cash. Lastly, we also took two of our vessels that are turning five years in August and September through a dry dock in March. We did this early in order to avoid off-fire at the time, which is usually the best season earnings-wise for Cape Size and Newcastle Mikes. The total cost for the dry dock was $2.2 million for the two ships. Then to some subsequent events. We delivered bulk of wool, which was sold, as mentioned, to the new owner on April 4th, and the company estimates it will recognize a book gain of $20.5 million in Q2 2024 for that vessel. Following the sale and delivery to new buyers of the two vessels, we repaid $27.5 million of debt, and we entered into a new $112.5 million non-amortizing bank facility at software plus 195 basis points. The new facility matures in April, 2029, and significantly reduces our cash break even, which is now lower to an estimated $11,800 per day. For April, we achieved time partner charter equipment earnings of approximately 31,300 gross. This compares to the Baltic 5T C average, which was around 20,000. And we also declared a dividend based on the earnings for April of 14 cents per share. And with that, I will leave it over to Vidar.

Thank you, Magnus. 2020 Bulkers reports a net profit of $28.5 million for the first quarter of 2024. Operating profit was $31.7 million and EBITDA was $34.4 million for the quarter. Earnings per share was $1.25. Revenues were $40.5 million for the first quarter and include a gain of $20.5 million for the sale of bulk Shanghai. The average time charter equivalent rate was approximately $30,000 per day gross. Vessel operating expenses were $4.8 million and the average operating expenses per ship per day was approximately $6,700 in the first quarter. G&A for the first quarter was $1.1 million. 2020 Bolkus charged Himalaya Shipping $0.3 million in management fee for the first quarter, which is recognized as other operating income in the financial statements. Net financial expenses were $3 million, including interest expense of $2.8 million in the first quarter. During the quarter, the company terminated the interest rate swaps and received approximately $2.9 million in cash settlement. Shareholders' equity was $178.9 million at the end of the quarter. Interest-bearing debt was $140 million at the end of the first quarter, down from $206.5 million at the end of the fourth quarter. reflecting scheduled debt repayments and the settlement of the sale leaseback financing for BULK Shanghai. In addition, the sale leaseback financing for BULK Seoul had been classified as held for sale in the balance sheet at the end of the quarter and was settled early in April in connection with the delivery of BULK Seoul to the new owner. Cash flow from operations was $13 million for the first quarter. In March, the company completed the dry docking for BULK Sandefjord and BULK Santiago for a total cost of $2.2 million. Cash and cash equivalents were $55.5 million at the end of the quarter. The company declared total dividends to shareholders of $1.99 per share for the months of January, February and March 2024. That completes the financial section and now back to you Magnus.