Belships ASA entered on 25 September 2015 into a sale and lease back agreement for M/S Belforest. The bareboat period is 12 years with purchase options from year 3 onwards.
M/S Belisland, a 61 000 dwt Ultramax bulk carrier, was constructed at Imabari Shipbuilding in Japan and delivered 15 March 2016. The ship was at time of delivery sold to a Japanese counterpart and leased back for a period of 15 years with purchase options from year 5 onwards.
Both leases are considered as financial leases.
In January 2018 Belships will take delivery of a newbuilding on time charter for 8 years incl. purchase option. The newbuilding is an 63 000 dwt eco‐design Ultramax bulk carrier from Imabari Shipbuilding in Japan.
Payment if options on financial leased ships is exercised
If the Company has an option to purchase a ship at a price, which at the inception of the lease is expected to be significant lower than the fair value at the date the option becomes exercisable, the lease payments comprise the payment required to exercise the option. Hence, the lease liabilities recorded in the balance sheet consist of one part which is deemed hire payments and one part which is the payment required if the option to purchase the ship should be exercised. The table below provides an overview of the split between hire payments and payments required if the option is exercised.
|Hire obligation under financial lease||2 435||14 788||27 424||44 647|
|Net present value of lease liability||< 1 YR||1-5 YR||> 5 YR||Total|
|Maturity of financial lease liability||2 435||14 788||11 174||28 397|
|Whereof payments of purchase option||0||0||16 250||16 250|
Contracted time charter revenue
M/S Belstar, M/S Belnor and M/S Belocean has been on 10-years time charters to Canpotex Shipping Services Ltd from time of delivery from yard in 2009, 2010 and 2011 respectively, at a net rate of USD 16 000 per day. There is no option to charter beyond this period.
On 25 February 2016, M/S Belocean ended her contract with Canpotex. The ship was replaced by the newbuilding M/S Belisland at a net rate of USD 17 300 per day with effect from time of delivery 15 March 2016 until the expiry of the remaining 5 year period. Cargill chartered from end of February 2016 M/S Belocean for 10-15 months at an average net rate of USD 3 750 per day.
M/S Belforest is chartered to Cargill unto May 2017 with charterers option for additional 4 months at a net rate of USD 5 775 per day.
|As at 31 December 2016||< 1 yr||1-5 yr||> 5 yr||total|
|Contracted timecharter revenue||19 446||43 316||0||62 762|
|Commitments related to long-term leased ships||4 909||19 650||37 210||100 486|
|As at 31 December 2015||< 1 yr||1-5 yr||> 5 yr||total|
|Contracted timecharter revenue||21 199||60 461||1 070||82 730|
|Commitments related to long-term leased ships||2 306||23 726||39 680||65 712|
Lease obligations are nominal amounts.