2020 Bulkers sells Newcastlemax pair for $127m

2020 Bulkers, the owner of Newcastlemax vessels, has divested two bulkers constructed in 2019 to an independent third party for a combined sum of $127.5 million.

The company confirmed the sale of Bulk Shanghai and Bulk Seoul, presently held by Ocean Yield under a sale and leaseback arrangement. It exercised its option with Ocean Yield to finalise the sale.

2020 Bulkers will retain the operational cash flow of the vessels until the transaction's conclusion, anticipated no later than May 1, 2024. Considering the expected completion of two additional China-Australia round voyages for each vessel, based on the present FFA curve, the estimated cash flow during this interim period stands at approximately $3.5 million.

Upon the transaction's fulfilment, the company anticipates recognizing a net book gain of around $40 million.

This transaction is projected to reduce 2020 Bulkers' estimated cash breakeven by $1,900 per day, bringing it down to $14,500 per day. Additionally, the average gross debt per vessel will decrease from roughly $25.7 million to approximately $23.7 million.

Upon the sale's completion, 2020 Bulkers will allocate the net proceeds from the transaction, which might involve further debt repayments or returning capital to shareholders.

Following the sale, the company's fleet will comprise two bulkers constructed in 2019 – the Bulk Sandefjord and the Bulk Santiago – along with four additional vessels built in 2020 – the Bulk Shenzhen, Bulk Sydney, Bulk Sao Paulo, and Bulk Santos.