Fleet Financing

Belships: Annual Report 2021

Annual report 2021


  • 4 Belships ASA – Group Figures

  • 5 Operational structure

  • 6 Lighthouse Navigation – Commercial Operations

  • 7 Belships Management – Ship Management

  • 10 Sustainability at Belships

  • 16 Annual Report 2021

  • 20 Directors’ liability statement

  • 21 Fleet list


  • 24 Consolidated income statement

  • 25 Consolidated statement of financial position

  • 26 Consolidated cash flow statement

  • 27 Consolidated statement of changes in equity

  • 28 Notes to the financial statements


  • 52 Income statement

  • 53 Balance sheet

  • 54 Statement of cash flows

  • 55 Notes to the financial statements

  • 65 Independent auditor’s report

  • 72 Corporate Governance

  • 81 Corporate Social Responsibility


annual general meeting

May 6

1st quarter result

May 12

2nd quarter result

August 17

3rd quarter results

November 10


Letter to shareholders

Market growth and strength lead to record results

We are pleased to present Belships’ new annual report as well as our ESG report for 2021. It reflects an eventful year with continued growth and record financial results for our businesses.

As global economies rebounded from the previous year’s shutdown, dry bulk markets rebounded and we recorded the highest rates in a decade for dry bulk vessels. Despite the ongoing pandemic-related challenges, we were able to operate our vessels safely and without any material incidents. Seafarers continued to endure harsh conditions as travel restrictions remain an obstacle to efficient and timely crew changes. We stand in solidarity with a united industry calling for increased government awareness and action.

The need for food, energy, materials and produced goods drive the demand for raw materials. Dry bulk transport is at the heart of this global trade and the world economy is highly dependent on the efficient transport of these goods by sea.

Belships entered the year with a larger share of the fleet than usual in the spot market and was therefore able to capitalize on a rising market. We carried out an equity issue early on and quickly put the funds to use in a series of vessel acquisitions. In total, we acquired 11 new bulk carriers during the year while disposing of the seven oldest and non-green vessels. This led to rapid and efficient modernization and today we operate the most modern fleet of eco-ships in our segment.

In summary, these transactions had a marginal influence on our liquidity, as new shares issued and cash realized on divestitures financed growth. We also announced a new dividend policy in 2021 with the aim of distributing quarterly cash dividends targeting approximately 50% of net earnings. Capital discipline remains fundamental to our strategy and with strong contractual hedging we are prepared to withstand volatile market conditions.

Over the past two years we have expanded the Lighthouse Group and last year was the first full year of operations for all offices including Bangkok, Oslo, Singapore and Melbourne. Our operational activity rests on a solid platform and generated a record financial result.

The environmental impact of shipping is something we take seriously and we support initiatives to reduce the carbon footprint of the shipping industry. It is encouraging to see that we continue to make progress and achieve results through the modernization of our fleet. We have also initiated studies on new ship designs and alternative fuels which we hope can improve the sustainability of our shipping operations in the future.

With the beginning of a new year, a new crisis dawned upon us, and the invasion of Ukraine brought a war in Europe unprecedented for a generation. Although Belships is not directly affected by the conflict, we are deeply concerned about the developments and the potential consequences.

Maritime transport, and in particular dry bulk, is showing promising supply/demand prospects. Belships is well positioned as a fully integrated shipping company listed in Oslo. With our subsidiaries specializing in the operation and technical management of dry bulk, we are specialized in the segment of geared bulk carriers. Our own fleet today includes 27 Supramax and Ultramax vessels with an average age of 3.7 years.

We firmly believe that good corporate governance and transparency create a more rewarding business. Our goal is to create value from weaponry and return capital competitively over time.

We look forward to serving you and navigating to the next stage

President of the council

General director

Highlights 2021 – 2022

Proven ability to execute a growth strategy

11 x ship acquisitions

Conclusion of agreements for the acquisition of 11 modern bulk carriers

Refinanced loan facility

Secured financing until Q2 2027 at L+225 bps

Fleet renewal

Disposal of the seven oldest ships in the fleet

Equity issues

25 factory shares issued, including share swap transactions

Extended trading platform

Lighthouse Navigation now operates from Oslo, Bangkok, Singapore and Melbourne

Ship management

Continued growth in the number of vessels under technical management to 27 in total

Distribution of dividends

NOK 1.85 per share

BELSHIPS Annual report 2021

Financial key figures

As of December 31





OPERATING ACCOUNT Operating result




1 2



Net profit before tax Net profit for the year



BALANCE SHEET Non-current assets Current assets



Total assets

464 479



Non-current liabilities Current liabilities



Total equity and liabilities

464 479

FINANCIAL KEY FIGURES Cash and cash equivalents EBITDA




Interest expense Interest coverage ratio Current ratio


3 -0.34

4 1.18


Net profit rate

5 -0.11


Share capital as of December 31 Equity ratio


6 0.32

Return on total assets Return on equity

% %

7 -0.75

8 -11.83

KEY FIGURES ACTIONS Price as of December 31 Price as of December 31 Number of shares as of December 31USD NOK

1.60 0.74

Diluted average number of shares (excluding treasury shares) Equity per share

14.10 6:30 p.m. 253 136 666 228 175 404 250 609 708 227 490 765

Earnings per share EBITDA per share Price to earnings ratio Price to book ratio Price to EBITDA ratio



1.08 0.66

0.53 -0.08

0.71 0.11

10 11

3.00 -9.47

4.67 2.29

2.25 7.00


The Group’s financial information is prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union. In addition, management intends to provide alternative performance measures which are reviewed regularly by management to improve the understanding of the Group’s performance, but not in lieu of the financial statements prepared inin accordance with IFRS. The alternative measures of performance shown may be determined or calculated differently by other companies.

Alternative performance indicators aim to improve the comparability of results and provide additional information to users of the Group’s external reporting.

1)EBITDA – is earnings before interest, taxes, depreciation and amortization

  • 2) EBIT – is earnings before interest and taxes. It can be calculated by the pre-tax result plus interest

  • 3) Interest coverage ratio – is equal to earnings before interest and tax (EBIT), divided by interest expense

  • 4) Current ratio – is defined as total current assets divided by total current liabilities

  • 5) Net profit rate – is defined as profit after tax divided by operating profit

  • 6) Equity ratio – is equal to shareholders’ equity including non-controlling interests, divided by total assets

  • 7) Return on total assets – is defined as pre-tax income adjusted for interest expense, divided by total capital

  • 8) Return on equity – is defined as net income for the financial year, divided by shareholders’ equity

  • 9) Equity per share – is defined as total equity, divided by the number of shares issued at the end of the period

  • ten) Price/earnings ratio – is defined as the market price of the share, divided by earnings per share

  • 11) Price/book ratio – is defined as the market price of the share, divided by equity per share

Time Charter Equivalent (TCE) – is defined as freight revenue minus voyage costs divided by the number of charter days available.

650 674

178 279


142 130


599 673 197 961





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