Belships enters 2022 offloading another old bulk carrier

Norwegian shipowner Belships has entered into an agreement with an undisclosed client for the sale of its 58,000 dwt supramax bulk carrier.

The carrier named Belocean, which was built in 2011, is currently the oldest ship in the company’s fleet.

As disclosed, the delivery is expected to occur within February 2022 and Belships will realise a gain of approximately $5.6 million in the first quarter of 2022. The total net cash flow after delivery of the vessel will be approximately $13 million after repayment of outstanding loans.

At the beginning of the month, Belships also announced the sale of two 58,000 dwt bulk carriers, Belstar and Belnor, which were built in 2009 and 2010 respectively. With this sale, the company expects to gain approximately $5.1 million in Q4 2021 and $5.9 million in Q1 2022.

At the time, the shipping company also signed a period time charter contract with an undisclosed company. The deal, which includes one vessel, is signed for a period of about 11-13 months at a gross rate of $25,000 per day.

Following completion of all announced transactions, the Belships fleet will count 27 supramax/ultramax bulk carriers, with an average age below four years and average cash breakeven of $10,500 per day, according to Belships.

“The contract coverage for 2022 stands at 54% at an average rate of $23,000 net per day per vessel meaning that the cash breakeven for remaining open vessel days is below zero. Based on current market expectations, we expect to generate significant free cash flow and continue to pay quarterly dividends in accordance with our dividend policy“, the company states.

Back in July, Belships sold its supramax bulk carrier Belfri to Chinese bulker operator Jinhui Shipping and Transportation as part of its strategy to modernise the fleet.