ANNUAL
REPORT
2022
2020 BULKERS LTD.
CONTENT
Board of Directors’ Report 3
Responsibility Statement 10
Corporate Governance Report 11
Consolidated Financial Statements 15
Reconciliaon of Alternave
Performance Measures 31
Auditors’ Report 32
Oces 37
2020 BULKERS LTD.
ANNUAL REPORT 2022
3
2020 Bulkers Ltd. (together with its sub-
sidiaries, the “Company” or the “Group”
or “2020 Bulkers”) is a limited liability
company incorporated in Bermuda on
September 26, 2017. The Company’s
shares are traded on the Oslo Børs under
the cker “2020”.
2020 Bulkers is an owner and operator of
large dry bulk vessels. The Company has
eight Newcastlemax dry bulk vessels in
operaon. All vessels are trading on charters
to reputable counterpares.
HEALTH, SAFETY AND ENVIRONMENT
2020 Bulkers is fully commied to health,
safety, quality and environmental protecon
and idenes these as being essenal to
long-term nancial and reputaonal success.
2020 Bulkers has outsourced ship man-
agement to third party contractors. A
structured due diligence and audit process
is in place to ensure the highest ship man-
agement standards are applied.
Safety is at the core of our acvies, both
in the oce and onboard our vessels,
and we have a commitment to safeguard
persons from harm or injury and prevent
damage to property. 2020 Bulkers´ employ-
ees are expected to idenfy operaonal
risks and implement safe work pracces.
2020 Bulkers experienced no Loss Time
Accidents (LTA) or other personell injuries
in 2022. This stasc includes seagoing
crew under employment contracts with
our technical managers.
The 2020 Bulkers eet consists of eight
modern, fuel ecient 208,000 DWT
Newcastlemax dry bulk vessels. The sister
vessels delivered by New Times Shipyard
from August 2019 through June 2020 are
ed with Exhaust Gas Cleaning Systems
and Ballast Water Treatment Systems in
compliance with internaonal regulaons.
The vessels are esmated to be 36% more
carbon emission eecve per ton mile
compared to a standard non-eco Capesize
vessel due to higher cargo carrying capac-
ity, energy opmized ship hull design, high
thermal and mechanical eciency of main
and auxiliary engines and other energy
consuming systems onboard.
The EEDI score for our vessels is 2.11
which is 16% beer than the IMO require-
ment for phase 1 vessels contracted during
the period 2015-19 and meets the phase
2 requirement of 2.23 for ships contracted
from 2020-24 with good margin.
We are commied to make use of proven
and economically viable means to reduce
our environmental footprint.
HUMAN RESOURCES AND DIVERSITY
The Company prohibits discriminaon
against any employee or prospecve
employee on the basis of sex, race, color,
age, religion, sexual preference, marital
status, naonal origin, disability, ancestry,
polical opinion, or any other basis prohib-
ited by the laws that govern its operaons.
This is embedded in the Company’s Code
of Conduct.
The Company will not engage in or
support discriminaon and has adopted
a non-discriminang pracce that strives
to ensure equal treatment in recruit-
ment, hiring, compensaon, access to
training, employee benets and services,
promoon, terminaon and rerement,
irrespecve of age, gender, race, color,
disability, religion or belief, language,
naonal or social origin, trade union mem-
bership, or any other status recognized by
internaonal law. This is embedded in the
Company’s Code of Conduct.
As of December 31, 2022, the Company
had ve full me employees of which
one was female and four were male
employees. All seagoing crew are under
employment contract with our technical
managers. The Board of Directors consists
of three members of which one is female
and two are male.
The absence due to sickness was approxi-
mately zero % in 2022.
GOING CONCERN
In accordance with secon 3-3a of the
Norwegian Accounng Act, the Board
conrms that the prerequisites for the
BOARD OF
DIRECTORS’
REPORT
KEY EVENTS DURING 2022
The Company reported net prot of US$31.9 million and EBITDA of US$53.2
million for 2022.
Achieved average me charter equivalent earnings of approximately US$26,900,
per day, gross.
In April 2022, the Company transferred the eight Newcastlemax dry bulk vessels
that it owns and/or operates from subsidiaries domiciled in Liberia to Norwegian
limited liability subsidiaries.
In August 2022, the Board of 2020 Bulkers Ltd. approved the transfer of tax domi-
cile of the Company from Bermuda to Norway.
The Company declared cash distribuons of US$1.35 per share for 2022.
2020 BULKERS LTD.
ANNUAL REPORT 2022
4
BOARD OF
DIRECTORS’
REPORT
going concern assumpon exist and that
the consolidated nancial statements have
been prepared based on a going concern
basis.
CORPORATE DEVELOPMENTS
AND FINANCING
The Board remains focused on returning
the majority of operaonal free cash ow
aer debt service to shareholders on a
monthly basis. The Company has as of
today declared dividends or cash distribu-
ons for 32 consecuve months. Following
the cash distribuon for February, the
Company will have returned 78% of the
paid-in equity to shareholders.
Cash breakeven for the eet, which
includes expected general and administra-
ve expenses, operang costs (including
esmated US$300 in Covid-19 related
costs) and debt service is esmated at
approximately US$16,300 per vessel per
day for 2023.
The Company currently has around
US$205 million of net debt, corresponding
to approximately US$26 million per vessel.
Based on the amorzaon prole of the
debt and sale leaseback nancing, debt
will be repaid by approximately US$15 mil-
lion per year, corresponding to an annual
average debt reducon of US$1.85 million
per vessel.
MANAGEMENT DISCUSSION
AND ANALYSIS
Consolidated Statements of Operaons
Operang revenues were US$77.3 million
for the twelve months ended December
31, 2022 (US$115.9 million for the twelve
months ended December 31, 2021). The
decrease compared to the twelve months
ended December 31, 2021 is due to lower
me charter equivalent earnings, reecng
the prevailing spot market as well as xed
me charter coverage.
Total operang expenses were US$35.8
million for the twelve months ended
December 31, 2022 (US$35.5 million for
the twelve months ended December 31,
2021).
Vessel operang expenses were US$18.6
million and US$17.7 million for the twelve
months ended December 31, 2022 and
2021, respecvely. The increase compared
to the twelve months ended December
31, 2021 is driven by cost increase in spare
parts, consumables, insurance and crew
wages. Vessel operang expenses include
an esmated US$0.5 million and US$1.4
million in Covid-19 related expenses for
the twelve months ended December 31,
2022 and December 31, 2021, respecvely.
Voyage expenses and commission were
US$1.1 million for the twelve months
ended December 31, 2022 (US$2.8 million
for the twelve months ended December
31, 2021). The decrease compared to
the twelve months ended December 31,
2021 is due to lower commission on lower
charter hire as well as the voyage expenses
for Bulk Shenzhen incurred from January
to April in 2021.
General and administrave expenses
were US$4.4 million for the twelve
months ended December 31, 2022
(US$3.3 million for the twelve months
ended December 31, 2021). The increase
compared to the twelve months ended
December 31, 2021, is primarily due to
approximately US$0.4 million in fees in
connecon with the transfer of the ves-
sels from subsidiaries domiciled in Liberia
to Norwegian limited liability subsidiaries
as well as US$0.7 million in share opon
expense.
Depreciaon and amorzaon were
US$11.7 million for the twelve months
ended December 31, 2022 and 2021.
Total nancial expenses, net, were US$9.5
million for the twelve months ended
December 31, 2022 (US$9.6 million for
the twelve months ended December 31,
2021). The decrease compared to the
twelve months ended December 31, 2021
is due to the reducon in margin of 40bps
on the Term Loan Facility substanally o-
set by higher LIBOR interest on the Ocean
Yield sale leaseback nancing.
Consolidated Balance Sheets
The Company had total assets of US$379.8
million as of December 31, 2022, (Decem-
ber 31, 2021: US$390.6 million).
Total shareholders’ equity was US$155.9
million and US$151.7 million as of Decem-
ber 31, 2022 and December 31, 2021,
respecvely.
Total liabilies as of December 31, 2022,
were US$223.9 million (December 31,
2021: US$238.9 million). The decrease is
primarily due to scheduled repayments on
the Company’s long term debt.
Consolidated Statements of Cash Flows
Net cash provided by operang acvies
was US$42.3 million for the twelve
months ended December 31, 2022
(US$83.5 million for the twelve months
ended December 31, 2021). The decrease
compared to the twelve months ended
December 31, 2021 is due to lower earn-
ings.
Net cash used in invesng acvies was
US$nil for the twelve months ended
December 31, 2022 and 2021.
Net cash used in nancing acvies was
US$50.7 million during the twelve months
ended December 31, 2022 (US$79.4
million used in nancing acvies during
the twelve months ended December 31,
2021). The Company repaid US$14.8 mil-
lion of long-term debt and paid US$35.9
million of cash distribuons during the
twelve months ended December 31, 2022.
The Company repaid US$14.0 million of
long-term debt and paid US$64.9 million of
2020 BULKERS LTD.
ANNUAL REPORT 2022
5
cash distribuons and dividends during the
twelve months ended December 31, 2021.
As of December 31, 2022, the Company’s
cash and cash equivalents and restricted
cash amounted to US$15.7 million
(December 31, 2020: US$24.1 million).
Outstanding shares
As of December 31, 2022 the Company
had a share capital of US$22,220,906
divided into 22,220,906 shares at par value
of US$1.00 each.
OUR FLEET
The current chartering status is summa-
rized in the table below:
- In January 2022, the Company con-
verted the index-linked charter for Bulk
Shanghai into a xed rate charter at
US$30,905 per day, gross, for the period
from February 1, 2022, unl December
31, 2022. In addion, the vessel earns a
premium related to the fuel cost savings
from the scrubbers.
- In January 2022, the Company con-
verted the index-linked charter for Bulk
Shenzhen into a xed rate charter at
US$32,378 per day, gross, for the period
from February 1, 2022, unl December
31, 2022. In addion, the vessel earns a
premium related to the fuel cost savings
from the scrubbers.
- In August 2022, the Company extended
the index-linked me charter contract
for Bulk Sandeord from August 2022 to
August 2023.
- In September 2022, the Company
converted the index-linked charter for
Bulk Sao Paulo into xed rate charter at
US$16,146 per day, gross, for the period
from October 1, 2022, unl March 31,
2023. In addion, the vessel will sll
earn a premium related to the fuel cost
savings from the scrubbers.
- In October 2022, the Company con-
verted the index-linked charter for Bulk
Sandeord into xed rate charter at
US$14,392 per day, gross, for the period
from October 19, 2022, unl March 31,
2023. In addion, the vessel will earn a
premium related to the fuel cost savings
from the scrubbers of US$4,500 per day,
net, for the same period.
- In December 2022, the Company con-
verted the index-linked me charters
for Bulk Sanago and Bulk Shenzhen to
xed rate charters for Q1 2023 at a rate
of US$16,500, gross, including scrubber
benet. Following the xed rate charter
BOARD OF
DIRECTORS’
REPORT
Charter
Ship name Delivery Charterer Rate US$ expiry
Bulk Sandeord Aug-19 Koch 14,392 + 4,500 scrubber benet to 31 Mar 2023, Aug 23
Index linked + premium + scrubber benet
Bulk Sanago Sep-19 Koch 16,500 to March 31, 2023, Index linked + premium + scrubber benet Aug 23 - Feb 24
Bulk Seoul Oct-19 Koch 22,850 from 10 Feb to 30 Sep 2023, Index linked
+ premium + scrubber benet Mar 24
Bulk Shanghai Nov-19 Koch 22,850 from 10 Feb to 30 Sep 2023, Index linked
+ premium + scrubber benet Mar 24
Bulk Shenzhen Jan-20 Koch 16,500 to March 31, 2023, Index linked + premium + scrubber benet Aug 23 - Feb 24
Bulk Sydney Jan-20 Koch 19,000 from 19 Feb - 30 May 2023, Feb 24 - Aug 24
Index linked + premium + scrubber benet
Bulk Sao Paulo Jun-20 Glencore 16,146 + scrubber benet to 31 Mar 2023, Index linked May 23 - Jul 23
+ premium + scrubber benet
European
charterer Index linked + premium + scrubber benet Apr 25 - Jun 25
Bulk Santos Jun-20 Glencore Index linked + premium + scrubber benet May 23 - Jul 23
European
charterer Index linked + premium + scrubber benet Apr 25 - Jun 25
2020 BULKERS LTD.
ANNUAL REPORT 2022
6
period, both me charters have been
extended with 8-13 months index-linked
charters reecng a signicant premium
to a standard Capesize vessel, as well
as an addional premium related to the
fuel cost saving from the scrubbers.
- In January 2023, the Company entered
into index-linked me charters for
Bulk Santos and Bulk Sao Paulo with a
European charterer. The index-linked
charters reect a signicant premium
to a standard Capesize vessel, as well
as an addional premium related to
the fuel cost saving from the scrubbers.
The new me charters will commence
immediately on redelivery from their
current employment, expected between
May and August 2023, with a duraon
up unl April 1, 2025 to June 31, 2025.
- In January 2023, the Company entered
into a new me charter for Bulk Sydney
with Koch Shipping. Under the new me
charter agreement, which commenced
on February 19, 2023, the vessel will
earn US$19,000 per day for the rst 100
days, thereaer, the charter will convert
to a 9-15 month index-linked charter,
reecng a signicant premium to a
standard Capesize vessel, as well as an
addional premium related to the fuel
cost saving from the scrubbers.
- In February 2023, the Company con-
verted and extended the index-linked
me charters for Bulk Shanghai and Bulk
Seoul to xed rate charters from February
10, 2023, unl September 30, 2023, at a
rate of US$22,850, gross, including scrub-
ber benet. Following the xed rate char-
ter periods, both me charters have been
extended with 6 months index-linked
charters reecng a signicant premium
to a standard Capesize vessel, as well as
an addional premium related to the fuel
cost saving from the scrubbers.
COMMERCIAL UPDATE
2020 Bulkers has commercially outper-
formed the Balc 5TC index for 39 out of
43 months since delivery of its rst vessel.
As of March 1, 2023, 2020 Bulkers has
629 out of 2,448 available vessel days
covered at average xed rate of US$20,275
per day, gross. The majority of the xed
charter coverage is centered around the
seasonally weak period earlier in the year,
with increasing market exposure towards
the seasonally stronger third and fourth
quarter.
The remaining days are either open or
index linked-charters. The structure of our
index-linked contracts allows the Company
to convert these charters to xed rates on
the basis of the prevailing FFA market from
me to me, should we wish to increase
our level of xed charter coverage.
All the concluded charters represent a
signicant earnings premium to a standard
Capesize vessel driven by the addional
cargo intake and lower fuel consumpon.
Charterers are also paying a premium to
reect the economic benet of our vessels’
scrubbers.
MARKET COMMENTARY
The Balc 5TC Capesize index today stands
at US$17,453 having averaged US$7,801
year to date, down from US$14,115 during
the same period in 2022.
The Capesize market was unseasonally
week during the second half of 2022,
relave to the rst half of 2022, mainly as a
consequence of a sharp reducon in eet
ineciencies and port congeson. The
percentage of the Capesize eet sing in
port dropped to 25% during the third quar-
ter from a peak of 34% during the second
quarter of 2022. The current congeson
levels are in line with the average levels
seen between 2016 and 2020.
Overall ton-miles sailed on Capesize ves-
sels were up approximately 2.2%, in 2022,
relave to 2021. This was mainly driven
by a 30% increase in ton-miles for bauxite.
For iron ore, ton-miles were down 1.6%,
negavely impacted by a 2.8% drop in
Brazilian export volumes, while Australian
export volumes were up 1.8 % year over
year. For the coal trade, ton-miles were up
2% compared to 2021.
Global crude steel producon, ex China,
was down 7% in 2022, compared to 2021,
while Chinese steel producon fell 2%
compared to 2021.
Chinese iron ore imports were down 2% in
2022, compared to 2021. Imports picked
up towards the end of 2022, with imports
in the second half of 2022 increasing 1.3%
year over year. Chinese iron ore port inven-
tories currently stand at 125 million tons,
compared to 140 million tons a year ago.
Recent Economic data suggests Chinese
Economic acvity is rebounding following
the end of the zero-Covid policy, with Feb-
ruary PMI at the highest level since April
2012. The recovery is driven by China’s
implementaon of a number of measures
to support its economy, such as increasing
and bringing forward quotas for issuance
of local government special infrastructure
bonds. Real estate xed asset investments
declined year over year in 2022, leading
the Chinese government to implement
smulus measures such as signicantly
boosng PBOC pledged supplemental
lending and lowering rst me buyer
mortgage rates.
Growth in vessel supply appears to mod-
erate in the coming years with expected
Capesize deliveries of 12.4 million dwt
2023, dropping further to 7.2 million dwt
in 2024 and 3.1 million dwt in 2025. As a
consequence of the high ordering of con-
tainer vessels, Chinese yards are believed
to have very limited capacity for ordering
of large drybulk vessels before 2026, giving
good visibility for limited supply growth
in the coming years. New ordering is
expected to remain subdued due to lack of
BOARD OF
DIRECTORS’
REPORT
2020 BULKERS LTD.
ANNUAL REPORT 2022
7
nancing available from tradional lenders,
as well as technological uncertaines as it
relates to the opmal propulsion systems
to meet the shipping industry’s ambions
for de-carbonizaon. During 2022, 19
Capesize vessels, totaling 3.2 million dwt
were scrapped, down from 3.4 million dwt
in 2021.
Upside risks to the future development in
the Capesize market from current levels,
relate to an increase in steel producon in
China following the end of the zero-covid
policy, as well as a stabilizaon in the
Chinese real estate sector following China’s
recent smulus eorts.
Key downside risks to the Capesize market
include a connued economic slowdown,
which could be driven by rising interest
rates, ghter monetary condions due to
inaonary pressure, as well as heightened
geopolical tensions.
DRY BULK FLEET DEVELOPMENT
The global Capesize eet stands at 386
million dwt as of March 1, 2023, up from
379 million dwt in March, 2022.
The current orderbook for Capesize dry
bulk vessels stands at 5.8% of the exisng
eet, down from 7.1% in March 2022.
7.2 million dwt was ordered in 2022, com-
pared to 17.6 million dwt ordered in 2021.
3.2 million dwt was scrapped in 2022,
compared to 3.4 million dwt in 2021.
CORPORATE GOVERNANCE REPORT
AND ENVIRONMENTAL, SOCIAL AND
GOVERNANCE REPORT
The Company has prepared a Corporate
Governance Report which is included as
a separate secon of this annual report.
The Environmental Social and Governance
Report can be found on the Company’s
website. The Company has based its corpo-
rate governance principles on the Norwe-
gian Code of Pracce for Corporate Gov-
ernance published on October 14, 2021
(the “Code”). There are, however, some
areas where the Company’s governance
principles dier from those of the Code,
primarily due to dierences between the
Bermuda Companies Act and/or the Com-
pany’s Bye-laws and the Norwegian Public
Limited Companies Act.
RISK FACTORS
The Company is exposed to a variety of
risks, including market, operaonal and
nancial risks.
The most signicant risk to the Company is
the cyclicality of the dry bulk market with
aendant volality in freight rates, vessel
values and consequently, protability. Fluc-
tuaons in rates result from imbalances
between the supply and demand for vessel
capacity and changes in the supply and
demand for the commodies carried by
water internaonally. The supply of and
demand for shipping capacity determine
the freight rates. Because the factors
aecng the supply and demand dynamics
of the shipping segment the Group is
invested in are outside of the Group’s
control and are unpredictable, the nature,
ming, direcon and degree of changes
they inuence in business condions are
also unpredictable.
Other key risks are outlined below, which
are not meant to be exhausve:
The Company’s vessels will be subject to
perils parcular to marine operaons,
including capsizing, grounding, collision
and loss and damage from severe weather
or storms. The vessels may also be subject
to other unintended accidents. Such
circumstances may result in loss of or
damage to the relevant vessel, damage
to property (including other vessels) and
damage to the environment or persons or
for acons for damages connected with
exisng and future contracts which cannot
be fullled. Such events may lead to the
Group being held liable for substanal
amounts by contractual counterpares,
injured pares, their insurer and public
governments. In the event of polluon,
the Group may be subject to strict liability.
Environmental laws and regulaons appli-
cable in the countries in which the Group
operates have become more stringent in
recent years. Such laws and regulaons
may expose the Group to liability for the
conduct of or condions caused by others,
or for acts by the Group that were in com-
pliance with all applicable laws at the me
such acons were taken.
The occurrence of the aforemenoned
events may have a material adverse eect
on the Group’s business, nancial condi-
on, results of operaon and liquidity, and
there can be no assurance that the Group’s
insurance will fully compensate any such
potenal losses and/or expenses. Further,
the Company’s management will monitor
the performance of each investment,
however, the Company will rely upon third
party technical and day-to-day manage-
ment of the assets, and there can be no
assurance that such management will
operate successfully.
The operaon of dry bulk vessels has
certain unique operaonal risks and the
cargo itself and its interacon with the
vessel can be a risk factor. By their nature,
dry bulk cargoes are oen heavy and may
shi in a hold unless carefully distributed
and stowed causing loss of vessel stability.
High moisture bulk cargoes may cause free
water surface on-top with subsequent loss
of stability during a voyage, and certain
cargoes may react badly to water expo-
sure. In addion, dry bulk vessels are oen
subjected to baering treatment during
unloading operaons with grabs, and use
of bulldozers to maximize cargo ouurn.
This harsh handling may cause structural
weakness or damage to the vessels and
thus render them more suscepble to a
hull breach at sea. Hull breaches in dry
bulk vessels may lead to the ooding of
cargo holds. If a dry bulk vessel suers
BOARD OF
DIRECTORS’
REPORT
2020 BULKERS LTD.
ANNUAL REPORT 2022
8
ooding, the combinaon of cargo and
sea water may result in very high shear
force and bending moment and eventually
cause catastrophic buckling or collapse of
vessel’s bulkheads leading to the loss of
the vessel.
If the Group is unable to adequately
maintain or safeguard its vessels, it may
be unable to prevent such events. Any of
these circumstances or events could neg-
avely impact the Group’s business, nan-
cial condion or results of operaons. In
addion, the loss of any of its vessels could
harm the Group’s reputaon as a safe and
reliable vessel owner and operator.
The Group’s success depends, to a signi-
cant extent, upon the abilies and eorts of
a small number of key personnel, employed
in 2020 Bulkers Management AS and
providing services to the Group under the
terms of the Management Agreement, and
there can be no assurance that such indi-
viduals will connue to be employed by the
Group and involved in the management of
the Group in the future, or that their conn-
ued involvement will guarantee the future
success of the Group. If the Group does not
retain such key competence, and/or if it is
unable to aract new talent or competen-
cies relevant for the future development
of the Group, this may have a negave
eect on the success of the Group, and the
Group’s ability to expand its business and/
or to maintain and develop its compeve
skill set, which will correspondingly have an
adverse eect on the Group’s compeve
posion and nancial performance.
The Company generates revenues and
incurs operang expenses in U.S. dollars
and the majority of the general and
administrave expenses are denominated
in NOK. The Company has not hedged any
foreign currency exposure.
The interest rates on the term loan facility
and sale lease-back nancing are based
on LIBOR + a margin. In April 2020 the
Company entered into interest swap
arrangements for a noonal amount of
approximately US$177 million, eecvely
securing an all-in interest rate of 3% for
the outstanding loan amount under the
term loan unl August/September 2024.
The Company is exposed to uctuaons
in the interest rate on the sale lease-back
nancing.
The Company has chartered out six vessels
to Koch Shipping Pte. Ltd. and two vessels
to ST Shipping and Transport Pte. Ltd. The
two customers are large internaonal
companies and 2020 Bulkers assess the
companies as reputable counterpares
with low credit risk.
There is a concentraon of credit risk with
respect to cash and cash equivalents to
the extent that nearly all of the amounts
are carried with Danske Bank. However, we
believe this risk is remote, as Danske Bank
is an established nancial instuon.
The availability of nancing alternaves for
future investment opportunies may be
unavailable at suciently aracve terms.
The Company is also exposed to general
movements on the Oslo Stock Exchange,
which may limit the possibility of raising
new equity at aracve prices.
With the increased use of technologies
such as the internet to conduct business,
the Group, service providers to the Group
and Oslo Børs are suscepble to opera-
onal, informaon security and related
“cyber” risks both directly and indirectly,
which could result in material adverse con-
sequences for the Group and the share-
holders, such as causing disrupons and
impacng business operaons, potenally
resulng in nancial losses. Unlike many
other types of risks faced by the Group,
these risks are typically not covered by any
insurance. In general, cyber incidents can
result from deliberate aacks or uninten-
onal events. Cyber incidents include, but
are not limited to, gaining unauthorized
access to digital systems (e.g., through
“hacking” or malicious soware coding)
for purposes of misappropriang assets or
sensive informaon, corrupng data, or
causing operaonal disrupon. Cyberat-
tacks may also be carried out in a manner
that does not require gaining unauthorized
access, such as causing denial-of-service
aacks on websites (i.e., eorts to make
network services unavailable to intended
users).
2020 Bulkers maintains Directors & O-
cers liability insurance against liabilies
incurred in their capacity as Director or
Ocer. The insurance is capped at US$10
million.

Immigraon restricons and quaranne
measures related to Covid-19, connue
to create challenges for crew changes
on regular intervals, also incurring some
addional cost.
From an operaonal perspecve, port
congeson and other ineciencies have
normalized, with the share of the Capesize
eet in port now back to pre-Covid levels.
The Company recorded approximately 16
days and 11 hours of o-hire in 2022 due
to vessels deviang from their opmal
route in conjuncon with crew changes.
We expect to connue to incur higher
than normal operang expenses as well as
some o-hire related to crew changes for
as long as Covid-19 connues to have an
impact.
We connue to work closely with our tech-
nical managers to protect the safety and
well-being of our crews while minimizing
potenal o-hire related to crew changes.
The Board connues to thank the dedi-
cated seafarers aboard our vessels, many
of whom connue to have their terms of
service onboard extended due to logiscal
dicules.
BOARD OF
DIRECTORS’
REPORT
2020 BULKERS LTD.
ANNUAL REPORT 2022

IMPACT OF THE WAR IN UKRAINE
2020 Bulkers ulizes a variety of naonali-
es in the crew mix, amongst others a lim-
ited number of highly valued Ukrainian top
ocers. The Russian invasion of Ukraine
has created challenges for the rotaon of
the aected naonals. The Company is
working hard to maintain rst class opera-
onal standards, whilst taking care of the
human perspecve involved.
The main commodity transported on New-
castlemax vessels is iron ore, of which, only
approximately 1.5% has historically been
exported as seaborne trade out of Ukraine
or Russia. As such, any direct impact on
iron ore trade ows are minor.
OUTLOOK
2020 Bulkers has a robust nancial struc-
ture with moderate nancial leverage and
a solid cash posion. Our operang cash
breakeven, which is esmated at approx-
imately US$16,300 per vessel per day for
the remainder of 2023, is lower than the
current FFA curve for the balance of 2023,
which implies earnings of approximately
US$30,000 per day for a scrubber ed
Newcastlemax.
The Company will connue its strong cap-
ital discipline, and will remain focused on
returning the majority of free cash ow to
shareholders as monthly cash distribuons.

This report includes forward looking state-
ments. Forward looking statements are,
typically, statements that do not reect
historical facts and may be idened by
words such as “ancipate”, “believe”,
“connue”, “esmate”, “expect”,
“intends”, “may”, “should”, “will” and
similar expressions. The forward-looking
statements in this announcement are
based upon various assumpons, many
of which are based, in turn, upon further
assumpons. Although 2020 Bulkers Ltd.
believes that these assumpons are rea-
sonable, they are, by their nature, uncer-
tain and subject to signicant known and
unknown risks, conngencies and other
factors which are dicult or impossible
to predict and which are beyond our
control. Such risks, uncertaines, con-
ngencies and other factors could cause
actual events to dier materially from
the expectaons expressed or implied by
the forward-looking statements included
herein.
The informaon, opinions and forward-l-
ooking statements contained in this report
speak only as of the date hereof and are
subject to change without noce.
ABOUT 2020 BULKERS LTD.
2020 Bulkers Ltd. is a limited liability
company incorporated in Bermuda on 26
September 2017. The Company’s shares
are traded on the Oslo Børs under the
cker “2020”.
2020 Bulkers is an owner and operator of
large dry bulk vessels. The Company has
eight Newcastlemax dry bulk vessels in
operaon.
BOARD OF
DIRECTORS’
REPORT
March 15, 2023
/s/ Kate Blankenship /s/ Viggo Bang-Hansen /s/ Magnus Halvorsen
Kate Blankenship Viggo Bang-Hansen Magnus Halvorsen
Director Director Chair
2020 BULKERS LTD.
ANNUAL REPORT 2022
10
We conrm that, to the best of our
knowledge, that the consolidated nancial
statements for 2022, which have been
prepared in accordance with US GAAP
gives a true and fair view of the Company’s
consolidated assets, liabilies, nancial
posion and result of operaons, and that
the 2022 report includes a fair review of
the informaon required under the Nor-
wegian Securies Trading Act secon 5-6
fourth paragraph.
RESPONSIBILITY
STATEMENT
March 15, 2023
/s/ Kate Blankenship /s/ Viggo Bang-Hansen /s/ Magnus Halvorsen
Kate Blankenship Viggo Bang-Hansen Magnus Halvorsen
Director Director Chair
2020 BULKERS LTD.
ANNUAL REPORT 2022
11
CORPORATE
GOVERNANCE
REPORT
2020 Bulkers Ltd. (“2020 Bulkers” or “the
Company”) is a company organized and
exisng under the laws of Bermuda. The
corporate governance principles applicable
to it are set out in the Bermuda Companies
Act 1981, its bye-laws (the “Bye-laws”) and
its memorandum of associaon.
As a consequence of the lisng of the
Company’s shares on the Oslo Børs (Oslo
Stock Exchange, the “OSE”), certain
aspects of Norwegian law, notably the
Norwegian Securies Trading Act and the
Norwegian Stock Exchange Regulaons are
also relevant for its corporate governance
policy.
1. 2020 BULKERS CORPORATE
GOVERNANCE POLICY
The overall corporate governance policy
of 2020 Bulkers is the responsibility of its
board of directors (the “Board”).
In dening this policy, the Board will
observe the requirements set out in
applicable laws, cf. above, relevant recom-
mendaons and the specic requirements
arising from the Company’s business
acvies.
The most important recommendaon of
relevance to the Company’s corporate gov-
ernance is the Norwegian Code of Pracse
for Corporate Governance of 14 October
2021 (the “Code”).
The Board recognizes that the Code rep-
resents an important standard for corporate
governance for companies whose shares
are listed on the OSE. Most of the principles
and recommendaons in the Code are
included in the Company’s corporate gov-
ernance policy. There are, however, some
areas where the Company’s governance
principles dier from those of the Code,
primarily due to dierences between the
Bermuda Companies Act and/or the Bye-
laws and the Norwegian Public Limited
Companies Act.
The Board has codied certain corporate
governance principles in a “Code of Con-
duct,” applicable to all employees in the
Company and its subsidiaries (the “2020
Bulkers Group”).
The Code of Conduct can be found on the
Company’s website (hps://2020bulkers.
com/company/).
The Board has formulated the Company’s
overall mission and the core values on
which all of the acvies of the 2020
Bulkers Group shall be based. These can be
found in the Company’s website.
The Board has, in line with the Code’s
recommendaons, prepared this report
in order to disclose those of its corporate
governance principles which do not
comply with the recommendaons of the
Code.
2. THE BUSINESS
The Company’s memorandum of associ-
aon describes the Company’s objecves
and purposes as unrestricted. This deviates
from the recommendaon in the Code
but is in line with the requirements of the
Bermuda Companies Act.
The Company has clear objecves and
strategies for its business. These are
described in the Company’s annual report
and on its website.
3. EQUITY AND DIVIDENDS
The Board strives to idenfy and pursue
clear business goals and strategies for the
Company, to assess and manage the risks
associated with these, and to maintain an
equity capital and liquidity posion which
are sucient to match the same.
Under the Bye-laws, the Board may declare
dividends and distribuons without the
approval of the shareholders in general
meengs. This diers from the recommen-
daon in the Code.
The Company’s aim is to provide its
shareholders with a compeve return
on their investment through a posive
development in the price of the Company’s
shares and, when the Company’s cash ow
so allows, dividends or cash distribuons
to its shareholders.
The Company’s shareholders may, by way
of a resoluon in a general meeng of
all shareholders (a “General Meeng”)
increase the Company’s authorized share
capital, reduce the authorized share
capital (by reducing the number of unis-
sued but authorized shares) and increase
or reduce the issued share capital. The
procedures for such corporate acons are
set out in the Bye-laws and the Bermuda
Companies Act.
The Board has, under Bermuda law, wide
powers to issue authorized but unissued
shares in the Company. The Board is also
authorized in the Bye-laws to purchase
the Company’s shares and hold these in
treasury. These powers are not restricted
to any specic purposes nor to a specic
period as the Code recommends.
4. EQUITABLE TREATMENT OF SHARE
HOLDERS AND TRANSACTIONS WITH
CLOSE ASSOCIATES
The Company has one class of shares only.
Each share carries one vote. All shares
have equal rights. All shares give a right to
parcipate in General Meengs.
Under the Bermuda Companies Act, no
shareholder has a pre-empve right to sub-
scribe for new shares in a limited company
unless (and only to the extent that) the
2020 BULKERS LTD.
ANNUAL REPORT 2022
12
right is expressly granted to the shareholder
under the bye-laws of such company or
under any contract between the share-
holder and such company. The Bye-laws do
not provide for pre-empve rights.
The Board will only transact in the Compa-
ny’s shares at their market value.
Members of the Board (each a “Director”)
and the Company’s senior management
shall nofy the Board if they have any
material interest, whether direct or indi-
rect, in any transacon which the 2020
Bulkers Group intends to conclude.
Following these guidelines, any Director
and/or member of the Company’s senior
management who have an interest in any
such transacon shall always refrain from
parcipang in the discussions on whether
to conclude such transacon or not in
the relevant corporate bodies in the 2020
Bulkers Group.
Further, the Board shall always consider
whether it is appropriate to obtain an inde-
pendent third-party valuaon of the object
of any material transacon between the
Company and any of its close associates.
5. FREELY NEGOTIABLE SHARES
The Company’s shares are freely tradable.
6. GENERAL MEETINGS
The Code requires that noce of General
Meengs, (including any supporng docu-
ments for the resoluons to be considered
therein) is made available on the Compa-
ny’s website no later than 21 days prior to
the date of the General Meeng.
The Bye-laws allows, in accordance with
Bermuda law, for noce to be given no
less than seven days (excluding the day
on which the noce is served and the day
on which the General Meeng to which
it relates is to be held) prior to a General
Meeng. This diers from the recommen-
daon of the Code.
The Board aspires to maintain good rela-
ons with its shareholders and possible
investors in its shares, and to have an
investor relaon policy which complies
with the OSE’s Code of Pracce for Investor
Relaons.
The Board shall ensure that as many share-
holders as possible are able to parcipate
in the General Meengs. To achieve a high
rate of shareholder aendance therein the
Company shall:
provide, on its website, the date of and,
if possible, further informaon on each
General Meeng as early as possible,
and at the latest seven days in advance
thereof;
provide, together with or before the
noce is given, sucient supporng
documentaon for any resoluon pro-
posed to be made therein in order for
the shareholders to prepare;
ensure that any registraon deadline is
set as close to the General Meeng as
possible; and
ensure that the shareholders may vote
for each and all of the candidates for
the Board.
7. NOMINATION COMMITTEE
The Code recommends that the Company
has a nominaon commiee.
The Company is not, under Bermuda
law, obliged to establish a nominaon
commiee. The Board is of the opinion
that there are, for the me being, not suf-
cient reasons to establish a nominaon
commiee.
The Board will consult with the Company’s
main shareholders prior to proposing
candidates for Directors and will ensure
that the Board consists of Directors with
the experse and competence as shall be
required by the Company from me to
me.
8. CORPORATE ASSEMBLY AND BOARD
OF DIRECTORS, COMPOSITION AND
INDEPENDENCE
The Company does not have a corporate
assembly.
According to the Bye-laws the Board shall
consist of not less than two Directors.
Currently the Board consists of three
Directors.
It is the view of the Board that at least
two of its Directors are independent
of the Company’s main shareholders.
Further, it is the view of the Board that
a majority of the Directors are indepen-
dent of the Company’s senior managers
and main business partners. Although
the Chair performs certain execuve
funcons, no Director is employed by the
2020 Bulkers Group.
The Board will, in accordance with normal
procedures for Bermuda companies, elect
its chair. This diers from the recommen-
daon in the Code that the General Meet-
ing shall elect the chair of the Board.
The Directors shall, subject to applicable
law and the Bye-laws, hold oce unl
the rst General Meeng following such
Director’s elecon. The Directors may be
re-elected.
A short descripon of the current Directors
is available on the Company’s website –
hps://2020bulkers.com/team/.
CORPORATE
GOVERNANCE
REPORT
2020 BULKERS LTD.
ANNUAL REPORT 2022
13

The Code recommends that the Board
develops and approves wrien guidelines
for its own work as well as the work of the
Company’s senior managers with parcular
emphasis on establishing clear internal
allocaon of responsibilies and dues.
The Bermuda Companies Act does not
require the Board to prepare such guide-
lines. The Board is of the opinion that
there are no reasons to issue such guide-
lines at present.
The Code recommends that the Board
establishes an audit commiee and a
remuneraon commiee.
Although the Bermuda Companies Act does
not require the Company to establish such
commiees, the Board has established an
Audit Commiee, but the Board is of the
opinion that there is no reason to establish
a remuneraon commiee at present.
10. RISK MANAGEMENT AND
INTERNAL CONTROL
The Board is focused on ensuring that
the 2020 Bulkers Group’s business
pracces are sound and that adequate
internal control rounes are in place.
The Board connuously assesses the
possible consequences of and the risks
related to the 2020 Bulkers Group’s
operaons.
The 2020 Bulkers Group is commied to
protecng the health and safety of its
employees and contractors in their acv-
ies for the 2020 Bulkers Group and is
commied to ensure generally accepted
QHSE principles are integrated in every-
thing the 2020 Bulkers Group does.
The Board supervises the Company’s
internal control systems. These cover both
the 2020 Bulkers Group’s operaons and
its guidelines for ethical conduct and social
responsibility.
11. REMUNERATION OF
THE DIRECTORS
The remuneraon of the Directors is set by
the General Meeng. The Company may,
on occasion, pay Directors their fee in the
Company’s shares and/or grant Directors
under the Company’s share opon scheme.
Secon 11 of the Code requires that
Directors should not take on specic
assignments for the Company in addion
to their appointment as Directors.
The 2020 Bulkers Group will not refrain
from engaging Directors for specic
assignments for the Company if such
engagement is considered benecial to the
Company. This diers from the recommen-
daon in the Code. However, such assign-
ments will be disclosed to the Board and
the Board shall approve the assignment, as
well as the remuneraon.
12. REMUNERATION OF
LEADING EMPLOYEES
The remuneraon of the 2020 Bulkers
Group’s senior managers is based on four
components. The rst component is each
individual’s xed salary. This is set based on
the individual’s posion and responsibility
and the internaonal salary level for com-
parable posions.
The second component is local compensa-
on such as mandatory pension payments.
The third component is a variable, discre-
onary bonus. Bonuses will be granted
based on the performance of the 2020
Bulkers Group as a whole and each individ-
ual in relaon to targets set annually.
The fourth component is a share opon
scheme established by the Company where
share opons can be issued to senior man-
agers in the 2020 Bulkers Group.
The Code recommends that guidelines for
the remuneraon of execuve personnel
are prepared and approved by the General
Meeng. Such guidelines should set forth
an absolute limit to performance related
remuneraon. The 2020 Bulkers Group’s
remuneraon policy does not require such
a procedure, nor does it contain any such
limit. This diers from the recommenda-
on in the Code.
The Bye-laws permits the Board to
issue share opons to the Company’s
employees, including members of the
2020 Bulkers Group’s senior management
team, without requiring that the General
Meeng approves the number of opons
granted or the terms and condions of
such. In addion, the share opon scheme
is an incenve program rather than remu-
neraon directly limited to the Company’s
results.
13. INFORMATION AND
COMMUNICATION
The Company is commied to provide
informaon on its nancial situaon,
ongoing projects and other circumstances
relevant for the valuaon of the Company’s
shares to the nancial markets on a regular
basis.
The Company is also commied to disclose
all informaon necessary to assess the
value of its shares on its website. Interested
pares will nd the Company’s latest news
releases, nancial calendar, company
presentaons, share and shareholder infor-
maon, informaon about analyst coverage
and other relevant informaon here.
Such informaon may also be found on
the website of the OSE – hps://www.
euronext.com/nb/markets/oslo.
CORPORATE
GOVERNANCE
REPORT
2020 BULKERS LTD.
ANNUAL REPORT 2022
14
Informaon to the 2020 Bulkers Group’s
shareholders shall be published on the
Company’s website at the same me as it
is sent to the shareholders.
14. TAKEOVER OFFER
The Board will seek to ensure that the
Company’s business acvies are not
disrupted unnecessarily in the event a
general oer is made for the Company’s
shares. The Board will, furthermore, strive
to ensure that shareholders are given su-
cient informaon and me to form a view
of the terms of such oer.
If a takeover oer is made, the Board will
issue a statement on its merits in accor-
dance with statutory requirements and the
recommendaons in the Code.
The Board will consider obtaining a valua-
on of the Company’s equity capital from
an independent expert if a takeover oer
is made in order to provide guidance to its
shareholders as to whether to accept such
oer or not.
15. AUDITOR
The Board will, each year, agree a plan
for the audit of the 2020 Bulkers Group’s
accounts with its auditor. The Board will
furthermore interact regularly with the
auditor within the scope of this plan.
CORPORATE
GOVERNANCE
REPORT
2020 BULKERS LTD.
For the years ended December 31, 2022
and 2021
CONSOLIDATED
FINANCIAL
STATEMENTS
2020 BULKERS LTD.
ANNUAL REPORT 2022
16
12 months to 12 months to
(In millions of US$ except per share data) December 31, 2022 December 31, 2021

Time charter revenues 76.1 110.3
Voyage charter revenues - 3.5
Other operang income 1.2 2.1
  

Vessel operang expenses (18.6) (17.7)
Voyage expenses and commission (1.1) (2.8)
General and administrave expenses (4.4) (3.3)
Depreciaon and amorzaon (11.7) (11.7)
  
  
Financial expenses, net
Interest expense (9.4) (9.5)
Other nancial income (expense) (0.1) (0.1)
  
Net income before income taxes 32.0 70.8
Income tax (0.1) -
  

Basic earnings per share 1.44 3.19
Diluted earnings per share 1.42 3.14
Consolidated Statements of Comprehensive Income
  
Unrealized gain on interest rate swaps 8.3 2.3
Other comprehensive income 8.3 2.3
Total comprehensive income 40.2 73.1
CONSOLIDATED
STATEMENTS OF
OPERATIONS
See accompanying notes that are an integral part of these Audited Consolidated Financial Statements.
2020 BULKERS LTD.
ANNUAL REPORT 2022
17
(In millions of US$) December 31, 2022 December 31, 2021
ASSETS

Cash and cash equivalents 15.5 24.0
Restricted cash 0.2 0.1
Trade receivables 2.2 0.9
Accrued revenues 0.2 -
Other current assets 9.3 3.2
  
  
Vessels and equipment, net 349.0 360.6
Other long-term assets 3.4 1.8
  
  
LIABILITIES AND EQUITY
 
Current poron of long-term debt 14.8 14.8
Accounts payable 1.0 0.7
Accrued expenses 2.9 3.2
Other current liabilies 1.9 2.6
  
 
Long-term debt 203.2 217.2
Other long-term liabilies 0.1 0.4
  
 
 
Common shares of par value US$1.0 per share: authorized 75,000,000
(2021:75,000,000). Issued and outstanding 22,220,906 (2021: 22,220,906) 22.2 22.2
Addional paid-in capital 0.5 31.1
Contributed surplus 28.2 33.6
Accumulated other comprehensive income 9.2 0.9
Retained earnings 95.8 63.9
  
  
CONSOLIDATED
BALANCE SHEETS
See accompanying notes that are an integral part of these Audited Consolidated Financial Statements.
March 15, 2023
/s/ Kate Blankenship /s/ Viggo Bang-Hansen /s/ Magnus Halvorsen
Kate Blankenship Viggo Bang-Hansen Magnus Halvorsen
Director Director Chair
2020 BULKERS LTD.
ANNUAL REPORT 2022
18
12 months to 12 months to
(In millions of US$) December 31, 2022 December 31, 2021
  
Share based compensaon 0.1 -
Depreciaon and amorzaon 11.7 11.7
Change in trade receivables (1.3) (0.3)
Change in accrued revenues (0.2) -
Change in accounts payable 0.3 -
Change in other current items related to operang acvies (0.2) 1.4
Change in other long-term items related to operang acvies - (0.1)
  
  
  

Proceeds, net of deferred loan costs, from issuance of long-term debt - (0.9)
Repayment of long-term debt (14.8) (14.0)
Net proceeds from share issuance - 0.4
Cash distribuons/dividends (35.9) (64.9)
  
Net increase (decrease) in cash and cash equivalents and restricted cash (8.4) 4.1
Cash and cash equivalents and restricted cash at beginning of period 24.1 20.0
  
Interest paid, net of capitalised interest (9.1) (9.0)
Income taxes paid - -
CONSOLIDATED
STATEMENTS OF
CASH FLOWS
See accompanying notes that are an integral part of these Audited Consolidated Financial Statements.
2020 BULKERS LTD.
ANNUAL REPORT 2022

Other

  
      
(In millions of US$, except number of shares)       
       
Issue of common shares 50 000 - 0.4 - - - 0.4
Transfer - - (75.0) 75.0 - - -
Cash distribuons - - - (52.6) - - (52.6)
Dividends (11.3) (11.3)
Total comprehensive income for the period - - - - 2.3 70.8 73.1
       
Transfer - - (30.6) 30.6 - - -
Cash distribuons - - - (36.0) - - (36.0)
Total comprehensive income for the period - - - - 8.3 31.9 40.2
       
CONSOLIDATED
STATEMENTS OF
CHANGESINSHARE
HOLDERS’ EQUITY
See accompanying notes that are an integral part of these Audited Consolidated Financial Statements.
2020 BULKERS LTD.
ANNUAL REPORT 2022
20
1. GENERAL INFORMATION
2020 Bulkers Ltd. (together with its subsidiaries, the “Company” or the “Group” or “2020 Bulkers”) is a limited liability company
incorporated in Bermuda on September 26, 2017. The Company’s shares are traded on the Oslo Børs under the cker “2020”.
2020 Bulkers is an owner and operator of large dry bulk vessels. The Group has eight Newcastlemax dry bulk vessels in operaon.
Basis of presentaon
Our consolidated nancial statements are prepared in accordance with accounng principles generally accepted in the United States of
America (U.S. GAAP).
2. ACCOUNTING POLICIES
Principle of Consolidaon
The consolidated nancial statements include the assets and liabilies of us and our wholly owned subsidiaries. All intercompany bal-
ances and transacons have been eliminated upon consolidaon.
Use of esmates
The preparaon of nancial statements in conformity with U.S. GAAP requires us to make esmates and assumpons that aect the
amounts reported in our nancial statements and accompanying notes. Actual results could dier from those esmates.
Fair value measurement
We have determined the esmated fair value amounts presented in these consolidated nancial statements using available market
informaon and appropriate methodologies. However, considerable judgment is required in interpreng market data to develop the
esmates of fair value. The esmates presented in these consolidated nancial statements are not necessarily indicave of the amounts
that we could realize in a current market exchange. The use of dierent market assumpons and/or esmaon methodologies may have
a material eect on the esmated fair value amounts.
We account for fair value measurement in accordance with the accounng standards guidance using fair value to measure assets and
liabilies. The guidance provides a single denion for fair value, together with a framework for measuring it, and requires addional
disclosure about the use of fair value to measure assets and liabilies.
Reporng and funconal currency
The Company and the majority of its subsidiaries have the US$ as their funconal currency because the majority of their revenues,
expenses and nancing are denominated in US$. Accordingly, the Company’s reporng currency is also U.S. dollars. Foreign currency
gains or losses on consolidaon are recorded as a separate component of other comprehensive income (loss) in shareholders’ equity for
subsidiaries that have funconal currencies other than US$.
Foreign currency
Transacons in foreign currencies during the year are recognized at the rates of exchange in eect at the date of the transacon. Foreign
currency monetary assets and liabilies are revalued using rates of exchange at the balance sheet date. Foreign currency transacon
gains or losses are included in the consolidated statements of operaons.
Revenue and expense recognion
Our shipping revenues are primarily generated from me charters. In a me charter, the vessel is hired by the charterer for a specied
period of me in exchange for consideraon which is based on a daily hire rate. The charterer has the full discreon over the ports
visited, shipping routes and vessel speed. In a me charter contract, we are responsible for all the costs incurred for running the vessel
such as crew costs, vessel insurance, repairs and maintenance and lubes. Costs incurred by the Company in connecon with me charters
NOTES TO THE
CONSOLIDATED
FINANCIAL
STATEMENTS
ANNUAL REPORT 2022
21
NOTES
2020 BULKERS LTD.
NOTES
are recognized on an accruals basis. The charterer bears the voyage related costs such as bunker expenses, port charges and canal tolls
during the hire period. The performance obligaons in a me charter contract are sased over the term of the contract beginning when
the vessel is delivered to the charterer unl it is redelivered back to the Group. The me charter contracts are considered operang
leases and therefore do not fall under the scope of ASC 606 Revenue from Contracts with Customers because (i) the vessel is an iden-
able asset (ii) we do not have substanve substuon rights and (iii) the charterer has the right to control the use of the vessel during the
term of the contract and derives the economic benets from such use. Time charter contracts are accounted for as operang leases in
accordance with ASC 842 Leases and related interpretaons. For arrangements where the Company is the lessor, we intend to elect the
praccal expedient which allows the Company to treat the lease and non-lease components as a single lease component for the leases
where the ming and paern of transfer for the non-lease component and the associated lease component to the lessees are the same
and the lease component, if accounted for separately, would be classied as an operang lease.
Income from me charters is recognized on a straight-line basis over the period of the me charter contract (or lease contract) and at the
prevailing rate for the relevant assessment period for variable or index-linked me charter contracts.
In a voyage charter contract, which we consider in scope of ASC 606, the charterer hires the vessel to transport a specic agreed upon
cargo for a single voyage. The consideraon in such a contract is determined on the basis of a freight rate per metric ton of cargo carried
or occasionally on a lump sum basis. Esmates and judgments are required in ascertaining the most likely outcome of a parcular voyage
and actual outcomes may dier from esmates. In a voyage charter contract, the performance obligaons begin to be sased once
the vessel begins loading the cargo. We have determined that our voyage charter contracts consist of a single performance obligaon of
transporng the cargo within a specied me period. Therefore, the performance obligaon is met evenly as the voyage progresses, and
the revenue is recognized on a straight-line basis over the voyage days from the commencement of loading to compleon of discharge.
During 2022 and 2021, the Company had revenues from me charters and one voyage charter contract.
The guidance also species treatment for certain contract related costs, being either incremental costs to obtain a contract, or costs to
fulll a contract. Under the guidance, an enty shall recognize as an asset the incremental costs of obtaining a contract with a customer
if the enty expects to recover those costs. The guidance also provides a praccal expedient whereby an enty may recognize the incre-
mental costs of obtaining a contract as an expense when incurred if the amorzaon period of the asset that the enty otherwise would
have recognized is one year or less. Costs to fulll a contract must be capitalized if they meet certain criteria. In a voyage contract, the
Company bears all voyage related costs such as fuel costs, port charges and canal tolls. These costs are considered contract fulllment
costs because the costs are direct costs related to the performance of the contract and are expected to be recovered. The costs incurred
during the period prior to commencement of loading the cargo, primarily bunkers, are deferred as they represent setup costs and are
recorded as a current asset and are subsequently amorzed on a straight-line basis as we sasfy the performance obligaons under the
contract.
Share-based compensaon
The cost of equity seled transacons is measured by reference to the fair value at the date on which the share opons are granted.
The fair value of the share opons issued under the Company’s employee share opon plans is determined at the grant date taking into
account the terms and condions upon which the opons are granted, and using a valuaon technique that is consistent with generally
accepted valuaon methodologies for pricing nancial instruments, and that incorporates all factors and assumpons that knowledge-
able, willing market parcipants would consider in determining fair value. The fair value of the share opons is recognized in General and
administrave expense in the Consolidated Statements of Operaons, with a corresponding increase in equity over the period during
which the employees become uncondionally entled to the opons. Compensaon cost is inially recognized based upon opons
expected to vest, excluding forfeitures, with appropriate adjustments to reect actual forfeitures.
Impairment of vessels
We connually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recov-
erable. Among other indicators we look at the market capitalizaon of the Company against the net book value of equity. In assessing the
recoverability of our vessels carrying amounts, we make assumpons regarding esmated future cash ows and esmates in respect of
residual or scrap value. When such events or changes in circumstances are present, we assess the recoverability of long-lived assets by
determining whether the carrying value of such assets will be recovered through undiscounted expected future cash ows. If the total of
the future cash ows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carry-
ing amount over the lower of the fair market value of the assets, less cost to sell, and the net present value (“NPV”) of esmated future
undiscounted cash ows from the employment of the asset (“value-in-use”).
As of December 31,2022, and December 31, 2021, the Company has no indicaons that the carrying amount of a parcular vessel may
not be fully recoverable.
ANNUAL REPORT 2022
22
NOTES
Sale lease-back transacons
When a sale and leaseback transacon does not qualify for sale accounng, the transacon is accounted for as a nancing transacon by
the seller-lessee. To account for a failed sale and leaseback transacon as a nancing arrangement, the seller-lessee does not derecognize
the underlying asset; the seller-lessee connues depreciang the asset as if it was the legal owner. The sales proceeds received from the
buyer-lessor are recognized as a nancial liability. A seller-lessee will make rental payments under the leaseback. These payments are allo-
cated between interest expense and principal repayment of the nancial liability. The amount allocated to interest expense is determined
by the incremental borrowing rate or imputed interest rate. Each sale and lease back transacon that the Company had entered into as of
December 31, 2022, involved a purchase obligaon and was therefore treated as a nancing arrangement. Please refer to note 11.
Deferred charges
Costs associated with long-term nancing, including debt arrangement fees, are deferred and amorzed over the term of the relevant
loan using the straight-line method as this approximates the eecve interest method. Amorzaon of loan costs will be included in
“Other nancial expenses” in the Consolidated Statements of Operaons. If a loan is repaid early, any unamorzed poron of the related
deferred charge is charged against “Other nancial expenses” in the period in which the loan is repaid. Deferred charges are presented as
either a gross asset or as a deducon from the corresponding liability in the Consolidated Balance Sheet.
Drydocking
Maintenance of class cercaon requires expenditure and can require taking a vessel out of service from me to me for survey, repairs
or modicaons to meet class requirements. When delivered, the Group’s vessels can generally be expected to have to undergo a class
survey once every ve years. The Group’s vessels are being built to the classicaon requirements of ABS and the Liberian Ship Register.
Normal vessel repair and maintenance costs will be expensed when incurred. We will recognize the cost of a drydocking at the me the
drydocking takes place. The Group will capitalize a substanal poron of the costs incurred during drydocking, including the survey costs
and depreciates those costs on a straight-line basis from the me of compleon of a drydocking or intermediate survey unl the next
scheduled drydocking or intermediate survey.
Earnings per share
Basic earnings per share (“EPS”) is computed based on the income available to common stockholders and the weighted average number
of shares outstanding. Diluted earnings per share includes the eect of the assumed conversion of potenally diluve instruments,
which for the Company includes share opons. The determinaon of diluve EPS may require us to make adjustments to net loss and the
weighted average shares outstanding used to compute basic EPS unless an-diluve.
Trade receivables
Trade receivables are presented net of allowances for doubul balances. At each balance sheet date, all potenally uncollecble accounts
are assessed individually for purposes of determining the appropriate provision for doubul accounts.
Cash and cash equivalents
All demand and me deposits and highly liquid, low risk investments with original maturies of three months or less at the date of pur-
chase are considered equivalent to cash.
Interest-bearing debt
Interest-bearing debt is recognized inially at fair value less directly aributable transacon costs. Subsequent to inial recognion, inter-
est-bearing borrowings are stated at amorzed cost. Transacon costs are amorzed over the term of the loan.
Current and long-term classicaon
Assets and liabilies are classied as current assets and liabilies respecvely, if their maturity is within one year of the balance sheet
date. Otherwise, they are classied as non-current assets and liabilies.
Related pares
Pares are related if one party has the ability, directly or indirectly, to control the other party or exercise signicant inuence over the
other party in making nancial and operang decisions. Pares are also related if they are subject to common control or common signi-
cant inuence.
ANNUAL REPORT 2022
23
NOTES
3. RECENTLY ISSUED ACCOUNTING STANDARDS
Adopon of new accounng standards
In May 2021, the FASB issued ASU 2021-04 Earnings Per Share (Topic 260), Debt— Modicaons and Exnguishments (Subtopic 470-50),
Compensaon—Stock Compensaon (Topic 718), and Derivaves and Hedging —Contracts in Enty’s Own Equity (Subtopic 815-40).
The amendments clarify the issuer’s recognion and measurement consideraons resulng from exchanges or modicaons to free-
standing instruments (wrien call opons) classied in equity. Such exchanges or modicaons are treated as adjustments to the cost
to raise debt, to the cost to raise equity or as share based payments (ASC 718) when issued to compensate for goods or services. If not
treated as costs of debt funding, equity funding or share-based payments, it results in an adjustment to EPS/net income (loss). These
amendments are eecve from January 1, 2022. The amendments did not have a material impact on the Company’s consolidated nan-
cial statements.
ASU 2020-04 (ASC 848 Reference Rate Reform)
In March 2020, the FASB issued ASU 2020-04 (ASC 848 Reference Rate Reform), which provides oponal expedients and excepons for
applying GAAP to contracts, hedging relaonships, and other transacons aected by reference rate reform if certain criteria are met.
In January 2021, the FASB issued ASU 2021-01, which claried the scope of Topic 848 in relaon to derivave instruments and contract
modicaons. The amendments in these updates are elecve and apply to all enes, subject to meeng certain criteria, that have con-
tracts, hedging relaonships, and other transacons that reference LIBOR or another reference rate expected to be disconnued because
of reference rate reform. The amendments in these updates are eecve for all enes as of March 12, 2020 through December 31,
2022. The Company has determined that reference rate reforms will potenally impact the outstanding amount under the term loan facil-
ity and the bareboat rate under the sale leaseback nancing to which it is a party. Based on the latest guidance from the applicable LIBOR
administrator, the reference rates currently in use are expected to be available unl June 30, 2023. The Company expects to agree alter-
nave reference rates with its counterpares before the applicable disconnuaon date. We expect to take advantage of the expedients
and excepons for applying GAAP provided by the updates to the extent reference rates currently in use are replaced with alternave
reference rates before December 31, 2022. In December 2022, the FASB issued ASU 2022-06 Reference Rate Reform (Topic 848) which
defer the sunset date of Topic 848 from December 31 2022 to December 31, 2024, aer which enes will no longer be permied to
apply the relief of Topic 848.
4. INCOME TAXES
Bermuda
2020 Bulkers Ltd. is incorporated in Bermuda. Under current Bermuda law, the Company is not required to pay taxes in Bermuda on
either income or capital gains. 2020 Bulkers Ltd. has received wrien assurance from the Minister of Finance in Bermuda that, in the
event of any such taxes being imposed, the Company will be exempted from taxaon unl March 31, 2035.
Other jurisdicons
2020 Bulkers Ltd. transferred tax domicile from Bermuda to Norway eecve August 9, 2022. Our subsidiaries in Norway are subject to
income tax. The esmated income tax expense for the twelve months ended December 31, 2022, is US$63k. The Group does not have
any unrecognized tax benets, accrued interest or penales relang to income taxes.
5. SEGMENT INFORMATION
Our chief operang decision maker, or the CODM, being our Board of Directors, measures performance based on our overall return to
shareholders based on consolidated net income. The CODM does not review a measure of operang result at a lower level than the con-
solidated group and we only have one reportable segment. Our vessels operate worldwide and therefore management will not evaluate
performance by geographical region as this informaon is not meaningful.
For the year ended December 31, 2022, two customers accounted for 10 percent or more of our consolidated revenues in the amounts
of US$18.0 million and US$58.1 million, respecvely. For the year ended December 31, 2021, two customers accounted for 10 percent or
more of our consolidated revenues in the amounts of US$21.6 million and US$92.3 million, respecvely..
ANNUAL REPORT 2022
24
NOTES
6. REVENUES
The Company recognized revenues from me charter contracts (described in note 8) during the twelve months ended December 31,
2022. The Company has recognized US$0.2 million of revenues which is not invoiced as of December 31, 2022 and the amount is recog-
nized as accrued revenues. In addion, the Company has invoiced US$1.0 million to customers which is not earned as of December 31,
2022, and the amount is recognized as other current liabilies.
7. EARNINGS PER SHARE
The computaon of basic EPS is based on the weighted average number of outstanding shares during the period. Diluted EPS includes the
potenal eect of conversion of 650,000 share opons outstanding issued to employees and directors since the average share price for
the twelve months to December 31, 2022, was above the strike price.
12 months to 12 months to
(In US$, except share numbers) December 31, 2022 December 31, 2021
Basic earnings (loss) per share 1.44 3.19
Diluted earnings (loss) per share 1.42 3.14
Issued ordinary shares at the end of the period 22 220 906 22 220 906
Weighted average number of shares outstanding - basic 22 220 906 22 184 605
Weighted average number of shares outstanding - diluted 22 519 940 22 556 917
8. LEASES
Lessor
The Company has the following vessels on operang lease contracts:
Vessel Charterer Charter expiry Gross rate/day, USD
Bulk Sandeord Koch Shipping Aug 23 US$18,892 to 31 March 2023, Index linked + premium + scrubber benet
Bulk Sanago Koch Shipping Dec 22 - Mar 23 US$16,500 to 31 March 2023, Index linked + premium + scrubber benet
Bulk Seoul Koch Shipping Dec 22 - Mar 23 Index linked + premium + scrubber benet
Bulk Shanghai Koch Shipping Sep 22 - Mar 23 Index linked + premium + scrubber benet
Bulk Shenzhen Koch Shipping Nov 22 - Mar 23 US$16,500 to 31 March 2023, Index linked + premium + scrubber benet
Bulk Sydney Koch Shipping Jan 23 Index linked + premium + scrubber benet
16,146 + scrubber benet to 31 March 2023,
Bulk Sao Paulo Glencore May 23 - Jul 23 index-linked + premium + scrubber benet
Bulk Santos Glencore May 23 - Jul 23 Index linked + premium + scrubber benet
Lessee
Eecve January 1, 2019, the Company entered into a long-term lease contract for an oce in Oslo. This contract was terminated May 1,
2020. Eecve January 1, 2020, the Company leased addional oce space in Oslo. The right-of-use asset as of December 31, 2022, was
US$0.1 million and the corresponding lease liability was US$0.1 million. The amorzaon of right of use assets relang to oce lease is
presented under Depreciaon and Amorzaon in the consolidated statements of operaons.
ANNUAL REPORT 2022
25
NOTES

Vessels and
(In millions of US$)  
Cost as of December 31, 2020 383.4 383.4
Capital expenditures - -
Cost as of December 31, 2021 383.4 383.4
Capital expenditures - -
Cost as of December 31, 2022 383.4 383.4
   
Depreciaon 11.6 11.6
   
Balance as of December 31, 2021 360.6 360.6
  
10. RELATED PARTY TRANSACTIONS
In September 2021, Jens Marn Jensen, Director of the Company, exercised 50,000 share opons at a strike price of US$7.935. Mr. Jensen
resigned from the Board in December 2021.
In October 2021, 2020 Bulkers Management AS signed an agreement with Himalaya Shipping Ltd. and its subsidiaries to provide certain
management services (this agreement replaces the agreement signed in June 2021). Himalaya Shipping Ltd. was considered a related
party at the me of the transacon. As of December 31, 2022, Himalaya Shipping Ltd. is not considered a related party.
11. DEBT
(In millions of US$) December 31, 2022 December 31, 2021
Pledged
Term loan Tranche I (“Bulk Sandeord”), balloon payment March 2027 24.6 26.2
Term loan Tranche II (“Bulk Sanago”), balloon payment March 2027 25.0 26.7
Term loan Tranche V (“Bulk Shenzhen”), balloon payment March 2027 25.4 27.1
Term loan Tranche VI (“Bulk Sydney”), balloon payment March 2027 25.4 27.1
Term loan Tranche VII (“Bulk Sao Paulo”), balloon payment March 2027 25.9 27.5
Term loan Tranche VIII (“Bulk Santos”), balloon payment March 2027 26.2 27.9
Other long term debt
Vessel nancing (“Bulk Seoul”) 34.4 36.8
Vessel nancing (“Bulk Shanghai”) 34.4 36.8
  
Less current poron long term debt (14.8) (14.8)
Less deferred loan costs (3.3) (4.1)
  
ANNUAL REPORT 2022
26
NOTES
Term loan facility
In December 2021, the Company completed the renancing of the US$180 term loan facility agreement maturing in August 2024. At the
me of closing, the outstanding amount under the US$180 million Term Loan Facility was replaced with a new US$162.5 million Term
Loan Facility maturing in March 2027. The US$162.5 million term loan facility carries an interest rate of Libor+210 bps and ulises the
original 18-year repayment prole from the US$180 million Term Loan Facility with the balloon repayment now scheduled for March
2027. The term loan facility contains the following nancial covenants for the Group (i) value adjusted equity shall be equal to or greater
than 30% of value adjusted total assets, working capital (dened as consolidated current assets minus consolidated current liabilies
(excluding current poron of long term debt and subordinated shareholder loans)) shall at all mes be no less than US$0 and free and
available cash shall at all mes be the greater of (a) US$1.25 million per delivered vessel and (b) 5% of total debt. As of December 31,
2022, we were compliant with the covenants and our obligaons under our term loan facility agreement. The vessels are pledged upon
draw down of the loan facility, with cross collateral agreements in place for each vessel within the term loan facility.
In December 2021, the Company also amended its interest rate swap agreements to match the terms under the new US$162.5 million
term loan facility. The noonal amounts in the interest rate swaps have the same amorzaon prole as the term loan facility. The inter-
est rate swaps mature in August and September 2024. The Company will connue to designate all of the interest rate swaps for hedge
accounng as they sasfy the criteria applicable to cash ow hedges.
Sale and leaseback arrangement
In October 2019, the Company entered into a sale and leaseback arrangement with Ocean Yield for its two Newcastlemax vessels, Bulk
Seoul and Bulk Shanghai. The vessels were delivered from the yard on October 30, 2019, and November 6, 2019, respecvely, and were
at delivery sold to Ocean Yield for a price per vessel of US$42 million, net of a US$5 million sellers’ credit. The vessels have been char-
tered back to the Company on thirteen years bareboat charters which include a purchase obligaon at the end of the respecve charter
periods and certain opons to either sell or acquire the vessels during the charter periods. The bareboat charter hire is US$6,575 per
day plus an adjustment based on LIBOR plus a margin of 450 basis points. Since the Company has purchase obligaons at the end of the
charter periods, the Company has accounted for the transacon as a nancing arrangement. The Company has pledged the shares in the
subsidiaries chartering the vessels back from Ocean Yield and issued certain guarantees in line with standard terms contained in sale and
leaseback transacons.
The outstanding debt as of December 31, 2022, is repayable as follows:
(In millions of US$)
2023 14.8
2024 14.8
2025 14.8
2026 14.8
2027 117.3
Thereaer 44.8
Total 221.3
ANNUAL REPORT 2022
27
NOTES
12. FINANCIAL ASSETS AND LIABILITIES

The majority of our transacons, assets and liabilies are denominated in United States dollars. However, we incur expenditure in cur-
rencies other than United States dollars, mainly in Norwegian Kroner. There is a risk that currency uctuaons in transacons incurred in
currencies other than the funconal currency will have a negave eect of the value of our cash ows. We are then exposed to currency
uctuaons and we may enter into foreign currency swaps to migate such risk exposures.
Fair values
The guidance for fair value measurements applies to all assets and liabilies that are being measured and reported on a fair value basis.
This guidance enables the reader of the nancial statements to assess the inputs used to develop those measurements by establishing a
hierarchy for ranking the quality and reliability of the informaon used to determine fair values. The same guidance requires that assets
and liabilies carried at fair value should be classied and disclosed in one of the following three categories based on the inputs used to
determine its fair value:
Level 1: Quoted market prices in acve markets for idencal assets or liabilies;
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data;
Level 3: Unobservable inputs that are not corroborated by market data.
The carrying value and esmated fair value of our cash and nancial instruments are as follows:
December 31, 2022 December 31, 2021
   
(In millions of US$)     
Assets
Cash and cash equivalents 1 15.5 15.5 24.0 24.0
Restricted cash 1 0.2 0.2 0.1 0.1
Other current assets (interest rate swaps) 2 5.8 5.8 0.4 0.4
Other long term assets (interest rate swaps) 2 3.4 3.4 1.1 1.1

Current poron of long-term debt 2 14.8 14.8 14.8 14.8
Other current liabilies (interest rate swaps) 2 - - 0.2 0.2
Long-term debt 2 206.5 203.2 221.3 217.2
Other long-term liabilies (interest rate swaps) 2 - - 0.3 0.3
Financial instruments included in the consolidated nancial statements within ‘Level 1 and 2’ of the fair value hierarchy are valued using
quoted market prices, broker or dealer quotaons or alternave pricing sources with reasonable levels of price transparency.
There have been no transfers between dierent levels in the fair value hierarchy during the periods presented.
Concentraons of risk
There is a concentraon of credit risk with respect to cash and cash equivalents to the extent that nearly all of the amounts are carried
with Danske Bank. However, we believe this risk is remote, as Danske Bank is an established nancial instuon.
The Company’s revenues are generated from two customers that accounted for 100% of me charter revenues and 98.4% of total reve-
nues.
ANNUAL REPORT 2022
28
NOTES
13. SHARE BASED PAYMENT COMPENSATION
In January 2019, the Board of Directors established a long-term incenve plan and approved a grant of 740,000 share opons to
employees and directors. Further, 740,000 of the Company’s authorized but unissued share capital was allocated for this purpose. The
share opons will have a ve-year term and will vest equally one quarter every six months commencing on June 30, 2019, over a two year
vesng period. The exercise price is US$10.0 and will be reduced by any dividends and cash distribuons paid. During 2022, Georgina
Sousa, Director of the Company, received US$151k from the Company in cash selement for her 20,000 share opons. Ms. Sousa
resigned from the Board in March 2022.
In April 2022, the Board approved a grant of 60,000 share opons to employees. Each share opon gives the holder the right to purchase
one share in the Company at an exercise price of US$18 per share. The exercise price will be reduced by any dividends and cash
distribuons paid. The share opons will vest equally over a three year vesng period, commencing one year from date of grant and will
expire ve years aer the grant date. The total esmated cost is approximately US$366k and will be expensed over the requisite service
period. US$80k have been expensed in the twelve months ended December 31, 2022.
   
   
   
    
    
Granted - - - -
Exercised (50 000) 2.3 7.94 9.5
Exercisable - - - -
Forfeited - - - -
    
    
Granted 60 000 5.0 18.0 13.3
Exercised (20 000) 1.6 6.0 9.5
Exercisable - - - -
Forfeited - - - -
    
    
The exercise price of US$10 per share for the share opons granted in January, 2019 was reduced with total dividends and cash distribu-
ons of US$1.62, US$2.88, US$0.28 and US$0.135 per share for 2022, 2021, 2020 and 2019, respecvely. The exercise price of US$18
per share for the share opons granted in April, 2022 was reduced with total cash distribuons of US$1.12 for 2022. The fair value of the
share opons granted in April 2022 and January 2019 was calculated using the Black-Scholes method. The signicant assumpons used to
esmate the fair value of the share opons are set out below:
 
Grant date April 7 January 10
Risk-free rate 2.66% 2.74%
Expected life 4 years 2.8 years
Expected future volality 61% 45%
In 2019 the expected future volality was based on peer group volality due to the short lifeme of the Company.
ANNUAL REPORT 2022

NOTES
14. COMMITMENTS AND CONTINGENCIES
The Company insures the legal liability risks for its shipping acvies with Assuranceforeningen SKULD and Assuranceforeningen Gard
Gjensidig, both mutual protecon and indemnity associaons. As a member of these mutual associaons, the Company is subject to
calls payable to the associaons based on the Company’s claims record in addion to the claim records of all other members of the
associaons. A conngent liability exists to the extent that the claims records of the members of the associaons in the aggregate show
signicant deterioraon, which result in addional calls on the members.
To the best of our knowledge, there are no legal or arbitraon proceedings exisng or pending which have had or may have signicant
eects on our nancial posion or protability and no such proceedings are pending or known to be contemplated.
15. COMPENSATION
During the year ended December 31, 2022, we paid our execuve ocers aggregate compensaon of US$1.9 million (2021: US$1.8
million). In addion to cash compensaon, we recognized US$76k during the year ended December 31, 2022, relang to share opons
granted to execuve ocers.
As of December 31, 2022, the members of Management and Directors that hold shares and share opons of the Company are set out
below:
   
Viggo Bang-Hansen Director - -
Kate Blankenship Director - 75 000
Magnus Halvorsen * Chair 1 632 118 400 000
Herman Billung CEO 10 000 50 000
Olav Eikrem CTO 7 500 100 000
Vidar Hasund CFO 15 000 75 000
* 1,527,026 shares held through his controlled company MH Capital AS, and 105,092 shares held privately.

12 months to 12 Months to
(In millions of US$) December 31, 2022 December 31, 2021
Statutory audit fee 0.2 0.1
Other non-auding services - -
Total fees 0.2 0.1
16. SHAREHOLDERS’ EQUITY
At the 2022 Annual General meeng of the Company, it was approved to reduce the Company’s addional paid-in capital by
US$30,579,347 million and to increase the Company’s Contributed Surplus account by the same amount.

 
Share issue on exercise of opons September: US$7.935 per share 50 000
 
 
ANNUAL REPORT 2022
30
NOTES

  
Avanza Bank AB (nominee) 1 671 349 7.52
MH Capital AS 1 527 026 6.87
J.P. Morgan Securies LLC (nominee) 1 500 000 6.75
Clearstream Banking S.A. (nominee) 1 134 919 5.11
Brown Brothers Harriman & Co. (nominee) 1 128 200 5.08
DNB Luxembourg S.A. (nominee) 791 543 3.56
Wealins S.A. 784 084 3.53
Nordnet Livsforsikring AS 594 536 2.68
Nordnet Bank AB (nominee) 516 465 2.32
Skandinaviska Enskilda Banken AB (nominee) 438 143 1.97
Bjørn Andreas Freng Isaksen 400 150 1.80
Morgan Stanley & Co. Int. Plc. (nominee) 274 464 1.24
CACEIS Bank Spain SA (nominee) 243 435 1.10
State Street Bank and Trust Comp (nominee) 234 842 1.06
Drew Holdings Ltd 225 000 1.01
BNP Paribas (nominee) 187 733 0.84
Pershing Nominees Limited (nominee) 173 173 0.78
Union Bancaire Privee, UBP SA (nominee) 156 292 0.70
UBS Switzerland AG (nominee) 155 435 0.70
Anity and Beyond LLP 155 000 0.70
  
Other shareholders 9 929 117 44.68
  
17. SUBSEQUENT EVENTS

In January 2023, the Company declared a cash distribuon of US$0.09 per share for December 2022.
In February 2023, the Company declared a cash distribuon of US$0.01 per share for January 2023.
In March 2023, the Company declared a cash distribuon of US$0.01 per share for February 2023.

In March 2023, Magnus Halvorsen, chair of the Board, exercised 400,000 share opons at a strike price of US$4.985 per share.
2020 BULKERS LTD.
ANNUAL REPORT 2022
31
RECONCILIATION OF
ALTERNATIVE PERFOR
MANCE MEASURES
12 months to 12 months to
(In millions of US$) December 31, 2022 December 31, 2021
  
Depreciaon and amorzaon (11.7) (11.7)
  
12 months to 12 months to
(In millions of US$, except per day data) December 31, 2022 December 31, 2021
  
  
  
Address commission (2.6) (4.2)
  
Voyage charter expenses - (1.1)
Time charter equivalent revenues, gross 78.7 118.7
Fleet operaonal days 2 920 2 920
  
The European Securies and Markets Authority (“ESMA”) issued guidelines on Alternave Performance Measures (“APMs”) that came
into force on July 3, 2016. The Company has dened and explained the purpose of the following APMs:
EBITDA, when used by the Company, means operang prot (loss) excluding depreciaon and amorzaon. The Company has included
EBITDA as a supplemental disclosure because the Company believes that the measure provides useful informaon regarding the Compa-
ny’s ability to service debt and pay dividends and provides a helpful measure for comparing its operang performance with that of other
companies.
Average me charter equivalent rate, gross, when used by the Company, means me charter revenues and voyage charter revenues
excluding address commission, less voyage charter expenses and adjusted from “load to discharge” basis to “discharge to discharge” basis
and divided by operaonal days. The Company has included Average me charter equivalent rate, gross, as a supplemental disclosure
because the Company believes that the measure provides useful informaon regarding the eets’ daily income performance.
ANNUAL REPORT 2022
32
AUDITORS’
REPORT
PricewaterhouseCoopers AS, Kanalsletta 8, Postboks 8017, NO-4068 Stavanger
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
To the shareholders and Board of Directors of 2020 Bulkers Ltd.
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the consolidated financial statements of 2020 Bulkers Ltd. and its subsidiaries (“the
Group”), which comprise the consolidated balance sheets as at December 31, 2022, consolidated
statements of operations, consolidated statements of comprehensive income, consolidated statements
of cash flows and the consolidated statements of changes in shareholders’ equity for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion the accompanying consolidated financial statements give a fair presentation of the
financial position of the Group as at December 31, 2022, and its financial performance and its cash
flows for the year then ended in accordance with the accounting principles generally accepted in the
United States of America (USGAAP).
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Group as required
by relevant laws and regulations in Norway and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International
Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Group for 6 years from the incorporation of the Group on September
26, 2017, with our first audit being for the accounting year 2017.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. This matter was addressed in the context of
our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on this matter. The Group’s business activities are largely unchanged
compared to last year. We have not identified regulatory changes, transactions or other events that
qualified as new key audit matters. The impairment assessment for vessels and equipment have the
same characteristics and risks this year as the previous year and consequently have been an area of
focus also for the 2022 audit.
ANNUAL REPORT 2022
33
2 / 5
Key Audit Matters
How our audit addressed the Key Audit Matter
Impairment assessment for vessels and
equipment
Refer to note 2 (Accounting policies) and note
9
(Vessels and equipment, net and
Newbuildings) where management explains
how they assess the value of the vessels.
The Group
holds eight Newcastlemax vessels
on the balance sheet within Vessels and
equipment, net
, which transport dry cargoes
globally. The
vessels have a combined
carrying amount of USD
349 million. The
Group has not recognized an impairment on
the Newcastlemax vessels in 202
2.
Indicators of impairment for the Vessels were
assessed and not considered present during
202
2. As explained in the
notes, management
considered among others the conditions in dry
bulk freight market, estimated fair value less
cost of sale of the vessels, and market
capitalization versus net book value of the
Group, which gave no indication of
impairment. As a result of
the above factors,
management has not performed an
impairment test.
Management considers each vessel to be a
cash generating unit (“CGU” or “vessel”) in
their assessment of impairment indicators,
consequently we assessed for impairment
indicators on the
same basis.
We focused on this area due to the significant
carrying value of the vessels and the
judgement inherent in the assessment of
indicators of impairment.
We evaluated and challenged management’s
assessment of indicators of impairment and the
process by which this was performed. We assessed
management’s accounting policy against US GAAP
and obtained explanations from management as to
how the specific require
ments of the standards, in
particular ASC 360, were met. We also assessed
the consistency year on year of the application of the
accounting policy.
In order to assess the estimates for fair value less
costs of disposal as an indicator of impairment,
manag
ement compiled broker valuation certificates
for the vessels and newbuildings. We satisfied
ourselves that the external brokers had both the
objectivity and the competence to provide the
estimate. In order to assess this, we corroborated
that under the ter
ms of the bank lending facilities,
specific brokers are identified as being approved for
use, for purposes of minimum value clause covenant
reporting. Management used brokers from this
approved list. We interviewed selected brokers to
understand how the es
timates for fair value were
compiled. We also satisfied ourselves that the
brokers were provided with relevant facts in order to
determine such an estimate, by testing key inputs
such as build date, build location and certain key
specifications back to the
ships register. We
concluded that management sufficiently understood
the valuations from third party brokers, including
having obtained an understanding of the
methodology used in arriving at the valuations and
performing sensitivity analysis and performi
ng
comparisons to other available market data where
possible.
In order to assess each of the assumptions in the
impairment indicator assessment, we interviewed
management and challenged their assumptions. For
certain key assumptions we specifically used current
and historical external market data to corroborate
the freight rates assessed by management. We
challenged management on their assessment of
current market rates. We also corroborated
management’s assessment with external market
AUDITORS’
REPORT
ANNUAL REPORT 2022
34
3 / 5
reports where possible. We considered that freight
rates used by management were within an
appropriate range and changes did not lead to any
indication of impairment
We have read note
9 (Vessels and equipment, net
and Newbuildings
) and assessed this to be in line
with the re
quirements.
No matters of consequence arose from the
procedures above.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information
in the Board of Directors’ report and the other information accompanying the financial statements. The
other information comprises information in the annual report, but does not include the financial
statements and our auditor’s report thereon. Our opinion on the financial statements does not cover
the information in the Board of Directors’ report nor the other information accompanying the financial
statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of
Directors’ report and the other information accompanying the financial statements. The purpose is to
consider if there is material inconsistency between the Board of Directors’ report and the other
information accompanying the financial statements and the financial statements or our knowledge
obtained in the audit, or whether the Board of Directors’ report and the other information
accompanying the financial statements otherwise appear to be materially misstated. We are required
to report if there is a material misstatement in the Board of Directors’ report or the other information
accompanying the financial statements. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory requirements.
Our opinion on the Board of Director’s report applies correspondingly to the statements on Corporate
Governance and Corporate Social Responsibility.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements that give a fair presentation in
accordance with the accounting principles generally accepted in the United States of America, and for
such internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
AUDITORS’
REPORT
ANNUAL REPORT 2022
35
4 / 5
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error. We design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Group to cease to continue as a going concern.
• evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves a fair presentation.
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
AUDITORS’
REPORT
ANNUAL REPORT 2022
36
AUDITORS’
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matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of 2020 Bulkers Ltd., we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the
annual report, with the file name 2020 Bulkers Ltd. Annual Report 2022.xhtml, have been prepared, in
all material respects, in compliance with the requirements of the Commission Delegated Regulation
(EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant
to Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the
preparation of the annual report in XHTML format.
In our opinion, the financial statements, included in the annual report, have been prepared, in all
material respects, in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF
regulation. This responsibility comprises an adequate process and such internal control as
management determines is necessary.
Auditor’s Responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all
material respects, the financial statements included in the annual report have been prepared in
compliance with ESEF. We conduct our work in compliance with the International Standard for
Assurance Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of
historical financial information”. The standard requires us to plan and perform procedures to obtain
reasonable assurance about whether the financial statements included in the annual report have been
prepared in compliance with the ESEF Regulation.
As part of our work, we have performed procedures to obtain an understanding of the Group’s
processes for preparing the financial statements in compliance with the ESEF Regulation. We
examine whether the financial statements are presented in XHTML-format. We believe that the
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Stavanger, March 15, 2023
PricewaterhouseCoopers AS
Gunnar Slettebø
State Authorised Public Accountant
2020 BULKERS LTD.
OSLO OFFICE
2020 Bulkers Management AS
Tjuvholmen allé 3,
9th oor,
0252 Oslo,
Norway
+47 22 83 30 00
BERMUDA OFFICE
2020 Bulkers Ltd.
S.E. Pearman Bldg., 2nd oor,
9 Par-la-Ville Road
Hamilton HM 11,
Bermuda
+1 441 542 9329
2020bulkers@2020bulkers.com
OFFICES