GoodBulk Ltd., a leading owner and operator of dry bulk vessels, today announcesits financial results for the second quarter 2021.
2nd Quarter Highlights
• Generated $20.6 million profit, resulting in EPS $0.69, after $10.3 million depreciation; generated $32.8 million EBITDA.
• On 26 April 2021 the Board of Directors authorized the payment to Shareholders of $10.2 million ($0.34 per share) as capital repatriation.
• Ended the period with a cash balance of $38.7 million and net working capital of $23.0 million, totaling $61.7 million.
• Earned an average gross Time Charter Equivalent (TCE) rate of $23,503 per vessel per day on its Capesize vessels and $21,521 per day on its Panamax vessel.
• Averaged direct vessel operating expenses for the period of $5,886 per vessel per day. Recent Developments
• On 27 July 2021 the Board of Directors authorized the payment to Shareholders of $30.0 million ($1.0 per share) as capital repatriation.
GoodBulk is a leading owner of dry bulk vessels executing a strategy combining low financial leverage with active portfolio management to optimize operational leverage to the dry bulk freight market. The Company’s strict financial discipline resulted in industry leading pure cash general and administrative expenses of $214 per vessel per day.
Market Commentary
For the quarter ending 30 June 2021, the Baltic Capesize Index averaged $31,120 per day, 213.3% above $9,932 per day for the same period 2020 and 81.7% above $17,126 per day for the quarter ending 31 March 2021. The Capesize market has improved from last quarter on the back of strengthening iron ore shipments from both Australia and Brazil, record high iron ore prices, a recovery in coal volumes, heightened port congestion as well as contained fleet growth.
In June 2021, iron ore exports from both Australia and Brazil reached year-to-date highs. Port Hedland, Australia, from where two thirds of Australia’s iron ore exports are shipped exported 50.4 million tonnes, up 4.9% or 2.4 million tonnes more compared to May and the highest volume since June 2020. Brazil’s iron ore export volumes in June 2021 amounted to 32.9 million tonnes – the highest since August 2020 – up 19.1% or 5.3 million tonnes more month-on-month. Brazilian iron ore exports to China have increased by 20.1 million tonnes in the January to June 2021 period making it the largest single bilateral trade growth in the dry cargo segment this year and contributing to the strength of the Capesize market. China’s growing iron ore imports which are up by 2.6% this year have been feeding the country’s steel output which has smashed records and grown by 11.5% in the first half of 2021. Strong demand for iron ore combined with 2 constrained supply from mining companies has propelled iron ore prices which have consistently remained above $180 per tonne in May and over $200 per tonne in June and July 2021- the highest levels in over a decade and an encouragement to miners to produce and export as much as possible
China’s controls on coal imports via a quota system as well as on coal mining on safety grounds have led to a shortage of coal availability. However, insufficient hydropower and a hot summer as well as a rebound in industrial activity has pushed up power demand and led to China having to open the door to more imports. In June 2021 coal imports reached a year-to-date high at 28.4 million tonnes which were up by 7.4 million tonnes month-on-month. Outside China, we also saw imports increasing significantly to the EU and Japan in the past couple of months which shows that demand is growing along with the global economic recovery. Fleet growth in the dry bulk segment is expected to be very limited this year and reaching over 20-year lows in 2022. The contained fleet growth combined with the positive global economic outlook and trade inefficiencies (port congestion) will mean that the robust rate environment will continue throughout this year and next, albeit with the typical fluctuations.
Source: Goodbulk Ltd.