Belships ASA: Report 2nd Quarter 2024 Page 1

STABLE PRICE – SOLID RESULTS AND CONTINUED DIVIDEND

HIGHLIGHTS

• EBITDA of USD 29.3 million, including USD 2.9 million from operating activities
• Net income of USD 18.9 million
• Dividend set at NOK 0.55 per share
• Two debt-free Supramax vessels (built in 2016) sold for a total of USD 56.6 million
• Announced purchase option for BELMAR (built in 2021) for a price of USD 25.5 million
• Purchase of the 2024-built Ultramax bulk carrier for USD 41 million, to be delivered in the first quarter of 2025
• Extensive new construction program with two new leased vessels in 2027 and 2028
• Extended and amended bank financing on improved terms – new term Q2 2029
• TCE of USD 16,982 gross per day for own fleet
• 83 percent of ship days in Q3 2024 are set at USD 16,800 gross per day
• 41 percent of ship days in the next four quarters are set at USD 16,650 gross per day
• Cash breakeven for 2024 of approximately USD 10,900 per day per vessel
• Unified fleet of 41x Ultramax vessels, including 12x newbuildings, to be delivered between 2024 and 2028

Comment on the financial results
Belships reported net income of USD 18.9 million for the quarter, compared to USD 15.7 million in the previous quarter. The higher net income was primarily due to a realized book gain following the reorganization of the operating activities.

Time charter equivalent earnings (TCE) in the quarter were USD 16,982 gross per vessel per day. By comparison, the Baltic Supramax Index (BSI-58) averaged USD 15,005 gross per day.

The vessel operating expenses were USD 5,148 per vessel per day during the quarter, compared to USD 5,512 per vessel per day in the previous quarter. The lower operating expenses are primarily due to lower than normal maintenance expenditures during the quarter and timing differences.

Transactions
Belships entered into agreements for the sale of Supramax vessels BELFRIEND (2016) and BELTIDE (2016), for a price of USD 28.3 million per vessel. BELFRIEND and BELTIDE were delivered to their new owners in August and the company will realize a profit of approximately USD 6 million in Q3 2024. The vessels were debt free, so the total cash proceeds for the company amounted to USD 56.6 million.

The purchase option for BELMAR (2021) has been declared and the closing will take place in Q4 2024. The purchase price amounts to USD 25.5 million and is significantly below the current market value. The acquisition will be financed from the company’s available cash resources.

Belships has agreed to acquire a 64,000 dwt Japanese Ultramax (built 2024). The purchase price is USD 41.0 million and the vessel will be delivered in Q1 2025. The intention is to utilize our available Accordian Tranche, which entails financing 60 percent of the purchase price with the remainder financed from the Company’s available cash resources.