| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 0.70 | -97 |
| Intrinsic value (DCF) | 7.79 | -62 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Belships ASA (LSE: 0DQB.L) is a leading Norwegian dry bulk shipping company with a century-long legacy since its founding in 1918. Headquartered in Oslo, the company operates a modern fleet of 34 Supra/Ultramax bulk carriers, specializing in the global transportation of commodities like grains, coal, and minerals. Belships operates through three core segments: Own Ships, Lighthouse Navigation, and Ship Management, offering end-to-end maritime solutions including commercial management, technical services, crewing, and port logistics. As a key player in the Marine Shipping industry under the Industrials sector, Belships leverages its operational expertise and strategic fleet positioning to capitalize on volatile dry bulk markets. With a market cap of NOK 5.14 billion, the company maintains a balanced approach between owned and managed vessels, ensuring flexibility in cyclical markets. Its commitment to efficiency and sustainability positions it competitively in an industry increasingly focused on emissions reduction and operational optimization.
Belships ASA presents a compelling investment case with its stable revenue (NOK 4.35 billion in FY2023) and robust net income (NOK 771 million), supported by a diversified fleet and strong cash position (NOK 1.3 billion). The company’s low beta (0.495) suggests lower volatility relative to the market, appealing to risk-averse investors. However, high total debt (NOK 5.72 billion) and exposure to cyclical dry bulk rates pose risks. The generous dividend (NOK 2.65 per share) underscores shareholder returns, but investors should monitor freight rate fluctuations and global trade dynamics. Belships’ operational efficiency and modern fleet provide a competitive edge, though industry-wide challenges like decarbonization costs could pressure margins.
Belships ASA competes in the fragmented dry bulk shipping market by focusing on Supra/Ultramax vessels (50,000–65,000 DWT), a niche with steady demand for mid-sized cargoes. Its competitive advantage lies in operational efficiency—younger fleet age (average ~5 years) reduces maintenance costs and enhances fuel efficiency, critical amid rising environmental regulations. The vertically integrated model (owning vessels while offering third-party management via Lighthouse Navigation) diversifies revenue streams. However, Belships’ scale is modest compared to global giants like Golden Ocean Group, limiting bargaining power with charterers. Its Norwegian governance ensures high ESG standards, appealing to sustainability-focused clients. The company’s debt-to-equity ratio (~1.1x) is higher than peers, but strong cash flow generation (NOK 1.23 billion operating cash flow in 2023) supports liquidity. Regional expertise in European and Asian trade routes differentiates it from competitors heavily reliant on Atlantic markets. Pricing power remains constrained by commoditized services, though long-term charters (20–30% of fleet) provide revenue stability.