Belships ASA entered on 25 September 2015 into a sale and lease back agreement for M/S Belforest. The bareboat charter period is 12 years with purchase options from year 3 onwards.
M/S Belisland was delivered 15 March 2016 and leased on bareboat charter for a period of 15 years with purchase options from year 5 onwards.
Both leases are considered as financial leases.
In January 2018 the newbuilding M/S Belnippon was delivered and entered the 8-years time charter agreement to Belships. Belships has purchase options from year 4 onwards.
In June 2017 Belships signed an agreement to charter in an Ultramax bulk carrier of 63 000 dwt to be delivered from Imabari Shipbuilding first half 2020. The charter period will be for minimum 8 years plus two yearly options, with purchase option from end of fourth year.
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||2 594||15 754||24 503||42 851|
|Net present value of lease liability||< 1 YR||1-5 YR||> 5 YR||Total|
|Maturity of financial lease liability||2 594||15 754||7 653||26 001|
|Whereof payments of purchase option||0||0||16 850||16 850|
Contracted time charter revenue
M/S Belstar, M/S Belnor and M/S Belisland are fixed on long-time charters to Canpotex Shipping Services Ltd from time of delivery from yard in 2009, 2010 and 2016 respectively, at a net rate of USD 16 000 per day for Belstar and Belnor and USD 17 300 for Belisland. The charter agreements expire in 2019, 2020 and 2021, respectively. There is no option to extend the charter period.
M/S Belforest and M/S Belocean have been on time charter to Cargill in 2017 at net average rates of USD 7 375 per day for Belforest and USD 7 006 per day for Belocean.
M/S Belnippon was at time of delivery in January 2018 fixed on time charter to Cargill for 10-13 months at USD 11 500 per day.
|fixed income and commitments As at 31 December 2017||< 1 yr||1-5 yr||> 5 yr||total|
|Contracted timecharter revenue||26 431||25 371||0||51 802|
|Commitments related to long-term leased ships||9 746||50 563||78 313||138 621|
|fixed income and commitments 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|
Lease obligations are nominal amounts.