ANNUAL
REPORT
2023
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 32
Auditors’ Report 33
Oces 38
2020 BULKERS LTD.
ANNUAL REPORT 2023
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 char-
ters 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 2023. This stasc includes seagoing
crew under employment contracts with
our technical managers. The 2020 Bulk-
ers 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 vessels 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 gender, race,
color, age, religion, sexual preference,
marital status, naonal origin, disability,
ancestry, polical opinion, or any other
basis prohibited 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
BOARD OF
DIRECTORS’
REPORT
KEY EVENTS DURING 2023
The Company reported net prot of US$25.6 million and EBITDA of US$49.3
million for 2023.
Achieved average me charter equivalent earnings of approximately US$24,700
per day, gross.
The Company declared total cash distribuons and dividends of US$0.94 per
share for 2023.
SUBSEQUENT EVENTS
Achieved average me charter equivalent earnings for January and February
2024 of approximately US$27,100, and US$27,700, per day, gross, respecvely.
So far in 2024, the Company has declared a dividends of US$0.20 per share for
the months of January and February 2024.
In February 2024, the Company signed an agreement to sell the vessels Bulk
Shanghai and Bulk Seoul to an unaliated third party for a total consideraon
of US$127.5 million. The sale is subject to certain closing condions, in line
with industry standards. The two vessels are currently owned by Ocean Yield
under a sale leaseback arrangement, and the Company has exercised its opon
with Ocean Yield to eectuate the sale. The Company expects to recognize a
net book gain of approximately US$40 million upon compleon of the transac-
on which is expected to take place no later than May 1, 2024.
2020 BULKERS LTD.
ANNUAL REPORT 2023
4
BOARD OF
DIRECTORS’
REPORT
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, 2023, the Company
had six full me employees of which one
was female and ve 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 2023.
GOING CONCERN
In accordance with secon 3-3a of the
Norwegian Accounng Act, the Board
conrms that the prerequisites for the
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 back to shareholders on
a monthly basis. The Company has as of
today declared dividends or cash distribu-
ons for 44 consecuve months. Following
the dividend for February 2024, the Com-
pany will have returned approximately 94%
of the paid-in equity to shareholders.
The Company has a solid funding situaon
with a cash posion of approximately
US$24 million as of March 5, 2024.
Cash breakeven for the eet, which
includes expected general and admin-
istrave expenses, operang costs and
debt service is esmated at approximately
US$16,400 per vessel per day. Following
compleon of the sales of Bulk Shanghai
and Bulk Seoul, the Company’s cash
breakeven is esmated at US$14,500 per
vessel per day.
The Company has as of March 5, 2024,
around US$181 million of net debt, corre-
sponding to approximately US$22.7 million
per vessel.
MANAGEMENT DISCUSSION
AND ANALYSIS
Consolidated Statements of Operaons
Operang revenues were US$73.0 million
for the twelve months ended December
31, 2023 (US$77.3 million for the twelve
months ended December 31, 2022). The
Company achieved an average me char-
ter equivalent rate, gross, of US$24,700
for the twelve months ended December
31, 2023, compared to US$26,900 for
the twelve months ended December 31,
2022. During the twelve months ended
December 31, 2023, the Company charged
Himalaya Shipping US$1.1 million for man-
agement services as well as recognizing
US$2.2 million in insurance selement,
both included as Other operang income
in the Consolidated Statements of Opera-
ons.
Total operang expenses were US$35.3
million for the twelve months ended
December 31, 2023 (US$35.8 million for
the twelve months ended December 31,
2022).
Vessel operang expenses were US$19.4
million and US$18.6 million for the twelve
months ended December 31, 2023 and
2022, respecvely. The increase compared
to the twelve months ended December
31, 2022 is driven by cost increase in spare
parts, consumables, insurance and crew
wages.
Voyage expenses and commission were
US$0.9 million for the twelve months
ended December 31, 2023 (US$1.1 million
for the twelve months ended December
31, 2022). The decrease compared to the
twelve months ended December 31, 2022
is due to lower commission on the lower
charter hire earned.
General and administrave expenses were
US$3.4 million for the twelve months
ended December 31, 2023 (US$4.4 million
for the twelve months ended December
31, 2022). The decrease compared to the
twelve months ended December 31, 2022,
is primarily due to fees incurred in con-
necon with the corporate restructuring
as well as a higher share opon expense
during the twelve months ended Decem-
ber 31, 2022.
Depreciaon and amorzaon were
US$11.6 million and US$11.7 for the
twelve months ended December 31, 2023
and 2022, respecvely.
Total nancial expenses, net, were US$10.6
million for the twelve months ended
December 31, 2023 (US$9.5 million for
the twelve months ended December 31,
2022). The increase compared to the
twelve months ended December 31, 2022
is due to higher interest expense on the
Ocean Yield sale leaseback nancing partly
oset by higher interest income.
Consolidated Balance Sheets
The Company had total assets of US$376.1
million as of December 31, 2023, (Decem-
ber 31, 2022: US$379.8 million).
Total shareholders’ equity was US$161.0
million and US$155.9 million as of Decem-
ber 31, 2023 and December 31, 2022,
respecvely.
Total liabilies as of December 31, 2023,
were US$215.1 million (December 31,
2022: US$223.9 million). The decrease is
primarily due to scheduled repayments on
the Company’s long term debt.
2020 BULKERS LTD.
ANNUAL REPORT 2023
5
Consolidated Statements of Cash Flows
Net cash provided by operang acvies
was US$41.2 million for the twelve months
ended December 31, 2023 (US$42.3 mil-
lion for the twelve months ended Decem-
ber 31, 2022). The decrease compared to
the twelve months ended December 31,
2022, is primarily due to lower earnings.
Net cash used in invesng acvies was
US$nil for the twelve months periods
ended December 31, 2023 and 2022.
Net cash used in nancing acvies was
US$26.1 million during the twelve months
ended December 31, 2023 (US$50.7 million
used in nancing acvies during the
twelve months ended December 31, 2022).
The Company repaid US$14.8 million of
long-term debt, paid US$14.5 million of
cash distribuons and received US$3.2
million in proceeds from share issuances
in connecon with share opon exercises
during the twelve months ended December
31, 2023. The Company repaid US$14.8
million of long-term debt and paid US$35.9
million of cash distribuons during the
twelve months ended December 31, 2022.
As of December 31, 2023, the Company’s
cash and cash equivalents and restricted
cash amounted to US$30.8 million
(December 31, 2022: US$15.7 million).
Outstanding shares
As of December 31, 2023, the Company
had a share capital of US$22,870,906
divided into 22,870,906 shares at par value
of US$1.00 each.
OUR FLEET
The current chartering status is summa-
rized in the table below:
In January 2023, the Company entered into
index-linked me charters for Bulk Santos
and Bulk Sao Paulo with a European char-
terer. 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 me charters commenced
in July 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 agreement for Bulk
Sydney with Koch Shipping. Under the new
me charter, which commenced on Febru-
ary 19, 2023, the vessel earned US$19,000
per day for the rst 100 days, thereaer,
the charter converted 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 converted
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$22,850, gross, including scrubber
benet. Following the xed rate charter
periods, both me charters have been
extended with six months index-linked
charters reecng a signicant premium
to a standard Capesize vessel, as well as an
addional premium related to the fuel cost
saving from the scrubbers.
In July 2023, the Company extended and
amended the index-linked me charter
contract for Bulk Sandeord to September
2024 - January 2025.
BOARD OF
DIRECTORS’
REPORT
Charter
Ship name Delivery Charterer Rate US$ expiry
Bulk Sandeord Aug-19 Koch Index linked + premium + scrubber benet Dec 26 – Dec 27
Bulk Sanago Sep-19 Koch Index linked + premium + scrubber benet Dec 26 – Dec 27
Bulk Seoul Oct-19 Koch Index linked + premium + scrubber benet Mar 24
Bulk Shanghai Nov-19 Koch Index linked + premium + scrubber benet Mar 24
Bulk Shenzhen Jan-20 Koch US$20,060 + scrubber benet (1 Dec 2023 - 31 Mar 2024) Dec 26 – Dec 27
Index linked + premium + scrubber benet
Bulk Sydney Jan-20 Koch US$20,672 + scrubber benet (1 Dec 2023 - 31 Mar 2024) Dec 26 – Dec 27
Index linked + premium + scrubber benet
Bulk Sao Paulo Jun-20 European charterer Index linked + premium + scrubber benet Apr 25 – Jun 25
Bulk Santos Jun-20 European charterer US$16,800 + scrubber benet (1 Jan 2024 - 31 Mar 2024) Apr 25 – Jun 25
Index linked + premium + scrubber benet
2020 BULKERS LTD.
ANNUAL REPORT 2023
6
In November 2023, the Company amended
and extended the index-linked me char-
ters for Bulk Sandeord, Bulk Sanago,
Bulk Shenzhen and Bulk Sydney with Koch
Shipping unl the end of 2026 with opons
for further twelve months. The 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.
In November 2023, the Company con-
verted the index-linked me charters
for Bulk Sandeord, Bulk Shenzhen, Bulk
Sydney, Bulk Santos and Bulk Sanago
to xed rate me charters for certain
periods starng December 1, 2023 and
ending March 31, 2024 as summarized
below:
Four vessels xed for December 2023, at
average US$21,887 per day, gross.
Five vessels xed for January 2024, at
average US$20,869 per day, gross.
Five vessels xed for February 2024, at
average US$20,869 per day, gross.
Three vessels xed for March 2024, at
average US$19,177 per day, gross.
In addion, all the above vessels will con-
nue to earn a scrubber benet during the
xed rate me charter periods.
COMMERCIAL UPDATE
2020 Bulkers has commercially outper-
formed the Balc 5TC index for 51 out of
55 months since delivery of its rst vessel.
2020 Bulkers has three vessels trading on
xed me charters in March 2024 at an
average rate of US$19,177 per day, gross.
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.
From April 1, 2024, unl the end of 2024,
the Company has 1,650 operang days
linked to the development in the Capesize
spot market. 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.
DRY DOCKING
The Bulk Sandeord and Bulk Shanghai
have been scheduled for their ve year
special surveys in the beginning of March
2024. Total combined cost is esmated at
US$2.6 million for both vessels. The Com-
pany has decided to dock these vessels ve
and six months ahead of their respecve
ve year anniversaries in order to coincide
with the normally weakest part of the year
for Capesize rates. 14 days of o-hire per
vessel is expected in conjuncon with the
special surveys.
MARKET COMMENTARY
The Balc 5TC Capesize index averaged
US$16,389 in 2023, marginally up from
the 2022 average of US$16,177. The
index today stands at US$34,402 having
averaged US$21,900 year to date, up from
US$6,837 during the same period in 2023.
2023 as a whole, generally saw good trade
growth with Capesize ton-miles increas-
ing 4.8%, compared to 2022. The year
started our with rates during rst quarter
being seasonally weak as normal, before
strengthening in the second quarter as Bra-
zilian iron ore exports increased. Contrary
to normal seasonality, the rates dropped in
the third quarter as the market absorbed
an unwinding of vessel congeson. As con-
geson stabilized at historically low levels
towards the end of the third quarter, the
Balc 5 TC index increased from average of
US$13,407 in the third quarter to average
US$21,622 in the fourth quarter.
The strong market towards the end of the
year was driven by strong Brazilian iron ore
exports, as well as higher Bauxite exports
out of West Africa. The trend has conn-
ued into 2024, with rates for early March
at the highest seasonal levels since 2010.
The 4.8% increase in Capesize ton-miles
during 2023 was mainly driven by a 29%
growth in the Bauxite trade, while the iron
ore trade increased by 3.8% measured in
ton miles. The iron ore trade specically
was driven by a 7.9% increase in Brazilian
export volumes, while Australian export
volumes were up 1.2% compared to 2022.
For the coal trade, ton-miles were down
1.4% compared to 2022.
So far in 2024, Capesize ton-miles have
been supported by a 20.8% increase in
Brazilian iron ore exports, compared to
the same period last year, while Australian
iron-ore exports are down approximately
5% compared to the same period last year.
Global crude steel producon for 2023 was
up by 0.2% compared to 2022, with the
World, ex China, down 0.7%, while Chinese
steel producon increased 0.9%.
Chinese iron ore imports increased by
6% in 2023 compared to 2022. Chinese
iron ore port inventories currently stand
at 123.3 million tons, compared to 127.7
million tons a year ago.
China’s property sector remains challenged
in spite of the government’s smulous
eorts, although there has been a posive
development in construcon compleons
during the year.
Growth in vessel supply will be moderate
in the coming years with expected Cape-
size deliveries of 7.7 million dwt in 2024,
7.1 million dwt in 2025 and 4.7 million
dwt in 2026, down from 10.7 million dwt
delivered in 2023. As a consequence
of the high ordering in other shipping
segments, Chinese yards are believed to
BOARD OF
DIRECTORS’
REPORT
2020 BULKERS LTD.
ANNUAL REPORT 2023
7
have very limited capacity for ordering
of large drybulk vessels before 2027,
with orders recently having been placed
for delivery as late as the second half of
2028. This gives good visibility for limited
supply growth in the coming years.
New ordering is expected to remain
subdued in part driven by uncertaines
as it relates to the opmal propulsion
systems to meet the shipping industry’s
ambions for de-carbonizaon. Current
newbuilding costs for a scrubbered
Newcastlemax in China is believed to be
just under US$70 million.
Upside risks to the future development in
the Capesize market from current levels,
relate to restocking of China’s low iron
ore inventories, as well as increased coal
imports following new restricons being
put in place for domesc coal miners start-
ing May 1 this year.
Key downside risks to the Capesize market
include a connued economic slowdown
in China, as well as heightened geopolical
tensions. Connued weakness in the
Chinese property sector also represents an
ongoing risk to Chinese steel demand.
CAPESIZE FLEET DEVELOPMENT
The global Capesize eet stands at 396
million dwt as of March 1, 2024, up from
386 million dwt in March 2023.
The current orderbook for Capesize dry
bulk vessels currently stands at 5.85%
of the exisng eet, down from 6.1% in
February 2023.
0.84 million dwt have been ordered in
2024 so far, compared to zero new orders
during the same period in 2023.
0.18 million dwt have been scrapped so
far in 2024, compared to 0.53 million dwt
during the same period in 2023.
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
BOARD OF
DIRECTORS’
REPORT
2020 BULKERS LTD.
ANNUAL REPORT 2023
8
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
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 individuals will connue to be
employed by the Group and involved in the
management of the Group in the future,
or that their connued involvement will
guarantee the future success of the Group.
If the Group does not retain such key com-
petence, and/or if it is unable to aract
new talent or competencies 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
SOFR + 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 2.6% 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 an European charterer. The two custom-
ers are large internaonal companies and
2020 Bulkers assess the companies as rep-
utable 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 Børs, 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$20
million.
OUTLOOK
2020 Bulkers has a robust nancial struc-
ture with moderate nancial leverage and
a solid cash posion. Our operang cash
breakeven is esmated at approximately
US$14,500 per vessel per day when the
sales of Bulk Seoul and Bulk Shanghai
are completed. The current FFA curve for
the balance of 2024 implies earnings of
approximately US$45,000 per day for a
scrubber ed Newcastlemax.
The Company will connue its strong
capital discipline, and will remain focused
on returning the majority of free cash ow
to shareholders as monthly dividends.
Following the compleon of the sale of
Bulk Seoul and Bulk Shanghai, the Board of
Directors of the Company will determine
the allocaon of the net proceeds from the
transacon. This may include debt repay-
ments, which would lower the Company’s
cash breakeven further, as well as a return
of capital to shareholders.
BOARD OF
DIRECTORS’
REPORT
2020 BULKERS LTD.
ANNUAL REPORT 2023
9

This report includes forward looking state-
ments. Forward looking statements are,
typically, statements that do not reect his-
torical 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 report
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-look-
ing statements included herein.
The informaon, opinions and for-
ward-looking statements contained herein
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 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 6, 2024
/s/ Kate Blankenship /s/ Viggo Bang-Hansen /s/ Magnus Halvorsen
Kate Blankenship Viggo Bang-Hansen Magnus Halvorsen
Director Director Chairperson
2020 BULKERS LTD.
ANNUAL REPORT 2023
10
We conrm that, to the best of our knowl-
edge, the consolidated nancial statements
for 2023, which have been prepared in
accordance with US GAAP, give a fair
presentaon of the Company’s consoli-
dated assets, liabilies, nancial posion
and result of operaons, and that the
2023 report includes a fair review of the
informaon required under the Norwegian
Securies Trading Act secon 5-6 fourth
paragraph.
RESPONSIBILITY
STATEMENT
March 6, 2024
/s/ Kate Blankenship /s/ Viggo Bang-Hansen /s/ Magnus Halvorsen
Kate Blankenship Viggo Bang-Hansen Magnus Halvorsen
Director Director Chairperson
2020 BULKERS LTD.
ANNUAL REPORT 2023
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ce
for Corporate Governance of 14 October
2021 (the “Code”).
The Board recognizes that the Code
represents an important standard for cor-
porate 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 cor-
porate governance policy. There are, how-
ever, 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 on 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 associa-
on describes the Company’s objects 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
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
subscribe for new shares in a limited
company unless (and only to the extent
2020 BULKERS LTD.
ANNUAL REPORT 2023
12
that) the right is expressly granted to the
shareholder under the bye-laws of such
company or under any contract between
the shareholder 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 Directors
and/or members 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 commit-
tee. The Board is of the opinion that there
are, for the me being, not sucient rea-
sons 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 Direc-
tors.
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 chairman. This diers from the recom-
mendaon in the Code that the General
Meeng shall elect the chairman 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 2023
13
9. THE WORK OF THE BOARD
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 estab-
lished 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 con-
sequences 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vi-
es for the 2020 Bulkers Group and is com-
mied to ensure generally accepted QHSE
principles are integrated in everything 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 Direc-
tors 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 com-
pensa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 managers 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. Inter-
ested pares will nd the Company’s latest
news releases, nancial calendar, company
presentaons, share and shareholder
informaon, informaon about analyst
coverage and other relevant informaon
here.
CORPORATE
GOVERNANCE
REPORT
2020 BULKERS LTD.
ANNUAL REPORT 2023
14
Such informaon may also be found on
the website of the OSE – hps://www.
euronext.com/nb/markets/oslo.
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, 2023
and 2022
CONSOLIDATED
FINANCIAL
STATEMENTS
2020 BULKERS LTD.
ANNUAL REPORT 2023
16
12 months to 12 months to
(In millions of US$ except per share data) December 31, 2023 December 31, 2022

Time charter revenues 69.7 76.1
Other operang income 3.3 1.2
  

Vessel operang expenses (19.4) (18.6)
Voyage expenses and commission (0.9) (1.1)
General and administrave expenses (3.4) (4.4)
Depreciaon and amorzaon (11.6) (11.7)
  
  
Financial expenses, net
Interest expense (11.2) (9.4)
Other nancial income (expense) 0.6 (0.1)
  
Net income before income taxes 27.1 32.0
Income tax (1.5) (0.1)
Net income 25.6 31.9

Basic earnings per share 1.13 1.44
Diluted earnings per share 1.13 1.42
Consolidated Statements of Comprehensive Income
Net income 25.6 31.9
Unrealized gain (loss) on interest rate swaps (5.2) 8.3
  
Total comprehensive income 20.4 40.2
CONSOLIDATED
STATEMENTS OF
OPERATIONS
See accompanying notes that are an integral part of these Audited Consolidated Financial Statements.
2020 BULKERS LTD.
ANNUAL REPORT 2023
17
(In millions of US$) December 31, 2023 December 31, 2022
ASSETS

Cash and cash equivalents 30.7 15.5
Restricted cash 0.1 0.2
Trade receivables 0.9 2.2
Accrued revenues 0.2 0.2
Other current assets 6.8 9.3
  

Vessels and equipment, net 337.4 349.0
Other long-term assets - 3.4
  
Total assets 376.1 379.8
LIABILITIES AND EQUITY
 
Current poron of long-term debt 14.8 14.8
Accounts payable 0.6 1.0
Accrued expenses 3.5 2.9
Declared cash distribuon 4.1 -
Other current liabilies 3.0 1.9
  

Long-term debt 189.1 203.2
Other long-term liabilies - 0.1
  


Common shares of par value US$1.0 per share: authorized 75,000,000
(2022:75,000,000). Issued and outstanding 22,870,906 (2022: 22,220,906) 22.9 22.2
Addional paid-in capital 1.5 0.5
Contributed surplus 11.2 28.2
Accumulated other comprehensive income 4.0 9.2
Retained earnings 121.4 95.8
  
  
CONSOLIDATED
BALANCE SHEETS
See accompanying notes that are an integral part of these Audited Consolidated Financial Statements.
March 6, 2024
/s/ Kate Blankenship /s/ Viggo Bang-Hansen /s/ Magnus Halvorsen
Kate Blankenship Viggo Bang-Hansen Magnus Halvorsen
Director Director Chairperson
2020 BULKERS LTD.
ANNUAL REPORT 2023
18
12 months to 12 months to
(In millions of US$) December 31, 2023 December 31, 2022
Net income 25.6 31.9
Share based compensaon 0.1 0.1
Depreciaon and amorzaon 11.6 11.7
Change in trade receivables 1.3 (1.3)
Change in accrued revenues - (0.2)
Change in accounts payable (0.4) 0.3
Change in other current assets and liabilies 3.1 (0.2)
Change in other long-term liabilies (0.1) -
  
  
  

Repayment of long-term debt (14.8) (14.8)
Net proceeds from share issuance 3.2 -
Cash distribuons (14.5) (35.9)
  
Net increase (decrease) in cash and cash equivalents and restricted cash 15.1 (8.4)
Cash and cash equivalents and restricted cash at beginning of period 15.7 24.1
  
Interest paid (10.8) (9.1)
Income taxes paid (0.1) -
CONSOLIDATED
STATEMENTS OF
CASH FLOWS
See accompanying notes that are an integral part of these Audited Consolidated Financial Statements.
2020 BULKERS LTD.
ANNUAL REPORT 2023
19
Other

   
      
(In millions of US$, except number of shares)       
Consolidated balance as of December 31, 2021 22 220 906 22.2 31.1 33.6 0.9 63.9 151.7
Transfer (1) - - (30.6) 30.6 - - -
Cash distribuons - - - (36.0) - - (36.0)
Total comprehensive income for the period - - - - 8.3 31.9 40.2
Consolidated balance as of December 31, 2022 22 220 906 22.2 0.5 28.2 9.2 95.8 155.9
Issue of common shares 650 000 0.7 2.5 - - - 3.2
Transfer (2) - - (1.6) 1.6 - - -
Share based compensaon - - 0.1 - - - 0.1
Cash distribuons - - - (18.6) - - (18.6)
Total comprehensive income for the period - - - - (5.2) 25.6 20.4
Consolidated balance as of December 31, 2023 22 870 906 22.9 1.5 11.2 4.0 121.4 161.0
(1) At the 2022 Annual General Meeng held March 31, 2022, it was approved to reduce the Share Premium Account (Recognized as Addional paid-in
capital in the Consolidated Statements of Changes in Shareholders’ Equity) of the Company by US$30,579,347 and to credit the same amount resulng
from the reducon to the Company’s Contributed Surplus account, with eect from March 31, 2022.
(2) At the 2023 Annual General Meeng held May 9, 2023, it was approved to reduce the Share Premium Account (Recognized as Addional paid-in capital
in the Consolidated Statements of Changes in Shareholders’ Equity) of the Company by US$1,594,000 and to credit the same amount resulng from the
reducon to the Company’s Contributed Surplus account, with eect from May 9, 2023.
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 2023
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 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 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 2023
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 2023 and 2022, the Company had revenues from me charter contracts.
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
recoverable. Among other indicators we look at the market capitalizaon of the Company against the net book value of equity and market
condions in the dry bulk freight market. 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 pres-
ent, 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 recog-
nize an impairment loss based on the excess of the carrying 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 31,2023, and December 31, 2022, the Company had no indicaons that the carrying amount of a parcular vessel may
not be fully recoverable.
ANNUAL REPORT 2023
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, 2023, 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
a deducon from the corresponding liability in the Consolidated Balance Sheet.
Vessels and equipment, net
Vessels and equipment are recorded at historical cost less accumulated depreciaon and, if appropriate, impairment charges. Depreciaon
is calculated on a straight-line basis over the useful life of the assets based on cost less esmated residual values. The esmated useful life
for our vessels is 25 years. The esmated residual values are based on ten year average steel price and lightweight ton of the vessels.
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 American Bureau of Shipping
(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 income 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
Cash compromises cash on hand and cash at bank. All demand and me deposits and highly liquid, low risk investments with original
maturies of three months or less at the date of purchase are considered equivalent to cash. Cash and cash equivalents that are
restricted as to their use are classied as Restricted cash in the Consolidated Balance Sheets.
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 2023
23
NOTES
Interest rate hedging
The interest rate swaps are recognized at fair value. All the interest rate swaps are designated for hedge accounng. Gains or losses on
the hedging instrument are recognized in other comprehensive income (loss), to the extent that the hedge is determined to be eecve.
All other gains or losses are recognized immediately in the consolidated statements of operaons.
The fair values of the interest rate swaps are disclosed in note 12. The fair value of the interest rate swaps is recognized and presented
as a current asset or liability for maturity equal to or less than twelve months and a non-current asset or liability for maturity exceeding
twelve months.
3. RECENTLY ISSUED ACCOUNTING STANDARDS
Adopon of new accounng standards
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
contracts, 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 reference rates was available unl June 30, 2023. 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. In April 2023, the Company agreed alternave reference rates with its counterpares, as
described in note 11.
4. INCOME TAXES
2020 Bulkers Ltd. is incorporated in Bermuda. 2020 Bulkers Ltd. transferred tax domicile from Bermuda to Norway eecve August 9,
2022. Our vessel owning subsidiaries are taxed under the Norwegian Tonnage Tax Regime. The esmated income tax expense for the
twelve months ended December 31, 2023, is US$1.5 million (included in Accrued expenses) and is related to taxable net nancial income
(under the Norwegian Tonnage Tax Regime) primarily due to realized gains on interest rate swaps. The Group does not have any 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, 2023, three customers accounted for 10 percent or more of our consolidated revenues in the amounts
of US$51.6 million, US$10.3 million and US$7.8 million, respecvely. For the year ended December 31, 2022, two customers accounted
for 10 percent or more of our consolidated revenues in the amounts of US$58.1 million and US$18.0 million, respecvely.
ANNUAL REPORT 2023
24
NOTES
7. EARNINGS PER SHARE
12 months to 12 months to
December 31, December 31,
(In US$, except share numbers) 2023 2022
Basic earnings per share 1.13 1.44
Diluted earnings per share 1.13 1.42
Issued ordinary shares at the end of the period 22 870 906 22 220 906
Weighted average number of shares outstanding - basic 22 574 933 22 220 906
Weighted average number of shares outstanding - diluted 22 574 933 22 519 940
The computaon of basic EPS is based on the weighted average number of outstanding shares during the period. Diluted EPS excludes
the potenal eect of conversion of 60,000 of share opons (2022: 60,000) outstanding issued to employees since the average share
price for the twelve months to December 31, 2023, was below the strike price.
8. LEASES
Lessor
The Company has the following vessels on operang lease contracts:
Vessel Charterer Charter expiry Gross rate/day, USD
21,790 + scrubber benet (1 Dec 2023 - 29 Feb 2024),
Bulk Sandeord Koch Shipping Dec 26 - Dec 27 index-linked + premium + scrubber benet
25,024 + scrubber benet (1 Dec 2023 - 29 Feb 2024),
Bulk Sanago Koch Shipping Dec 26 - Dec 27 index-linked + premium + scrubber benet
Bulk Seoul Koch Shipping Mar 24 Index linked + premium + scrubber benet
Bulk Shanghai Koch Shipping Mar 24 Index linked + premium + scrubber benet
20,060 + scrubber benet (1 Dec 2023 - 31 Mar 2024),
Bulk Shenzhen Koch Shipping Dec 26 - Dec 27 index-linked + premium + scrubber benet
20,672 + scrubber benet (1 Dec 2023 - 31 Mar 2024),
Bulk Sydney Koch Shipping Dec 26 - Dec 27 index-linked + premium + scrubber benet
Bulk Sao Paulo European charterer Apr - Jun 25 Index linked + premium + scrubber benet
16,800 + scrubber benet (1 Jan 2024 - 31 Mar 2024),
Bulk Santos European charterer Apr - Jun 25 index-linked + premium + scrubber benet
6. REVENUES
The Company recognized revenues from me charter contracts (described in note 8) during the twelve months ended December 31,
2023. The Company has recognized US$0.2 million (US$0.2 million as of December 31, 2022) of revenues which was not invoiced as of
December 31, 2023, and the amount is recognized as Accrued revenues. In addion, the Company has invoiced US$2.3 million (US$1.0
million as of December 31, 2022) to customers which was not earned as of December 31, 2023, and the amount is recognized as Other
current liabilies. During the twelve months ended December 31, 2023, the Company recognized US$2.2 million in insurance selement
and US$1.1 million in management fee as Other operang income.
ANNUAL REPORT 2023
25
NOTES
9. VESSELS AND EQUIPMENT, NET
Vessels and
(In millions of US$)  
Cost as of December 31, 2021 383.4 383.4
Capital expenditures - -
Cost as of December 31, 2022 383.4 383.4
Capital expenditures - -
Cost as of December 31, 2023 383.4 383.4
  
Depreciaon 11.7 11.7
  
Depreciaon 11.6 11.6
  
Balance as of December 31, 2022 349.0 349.0
Balance as of December 31, 2023 337.4 337.4
10. RELATED PARTY TRANSACTIONS
In March 2023, Magnus Halvorsen, Chairperson of the Company, exercised 400,000 share opons at a strike price of US$4.985.
In November 2023, Kate Blankenship, Director of the Company, exercised 75,000 share opons at a strike price of US$4.445.
In December 2023, Vidar Hasund, Chief Financial Ocer of the Company, exercised 75,000 share opons at a strike price of US$4.445.
11. DEBT
(In millions of US$) December 31, 2023 December 31, 2022
Pledged
Term loan Tranche I (“Bulk Sandeord”), balloon payment March 2027 22.9 24.6
Term loan Tranche II (“Bulk Sanago”), balloon payment March 2027 23.3 25.0
Term loan Tranche V (“Bulk Shenzhen”), balloon payment March 2027 23.8 25.4
Term loan Tranche VI (“Bulk Sydney”), balloon payment March 2027 23.7 25.4
Term loan Tranche VII (“Bulk Sao Paulo”), balloon payment March 2027 24.2 25.9
Term loan Tranche VIII (“Bulk Santos”), balloon payment March 2027 24.6 26.2
Other long term debt
Vessel nancing (“Bulk Seoul”) 32.0 34.4
Vessel nancing (“Bulk Shanghai”) 32.0 34.4
  
Less current poron long term debt (14.8) (14.8)
Less deferred loan costs (2.6) (3.3)
  
ANNUAL REPORT 2023
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,
replacing the outstanding amount under the US$180 million term loan facility 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 con-
tains the following nancial covenants for the Group (i) value adjusted equity shall be equal to or greater than 30% of value adjusted total
assets, (ii) 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 (iii) 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, 2023, we were compliant with the
covenants and our obligaons under the 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.
In April 2023, the Company agreed with the lenders under the term loan facility the transion from LIBOR (London interbank oered rate)
to SOFR (secured overnight nancing rate) plus a credit adjustment of 0.26161% spread that was eecve from September 8, 2023. The
amendment to the Company’s term loan facility did not have a signicant eect on the carrying amount of the loan.
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 year 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$6,575 per
day plus an adjustment based on LIBOR plus a margin of 450 basis points. Since the Company has purchase obligaons at the end of the
charter periods, the Company has accounted for the transacon as a nancing arrangement. The Company has pledged the shares in the
subsidiaries chartering the vessels back from Ocean Yield and issued certain guarantees in line with standard terms contained in sale and
leaseback transacons.
In April 2023, the Company agreed with the lender under the Ocean Yield sale leaseback nancing that the transion from LIBOR to Term
SOFR is eecve from the rst interest adjustment aer June 30, 2023. The amendment to the bareboat charter agreement did not have
a signicant eect on the carrying amount of the loan.
The outstanding debt as of December 31, 2023, is repayable as follows:
(In millions of US$)
2024 14.8
2025 14.8
2026 14.8
2027 117.3
Thereaer 44.8
Total 206.5
ANNUAL REPORT 2023
27
NOTES
12. FINANCIAL ASSETS AND LIABILITIES
Foreign currency risk
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, 2023 December 31, 2022
   
(In millions of US$)     
Assets
Cash and cash equivalents 1 30.7 30.7 15.5 15.5
Restricted cash 1 0.1 0.1 0.2 0.2
Other current assets (interest rate swaps) 2 4.0 4.0 5.8 5.8
Other long term assets (interest rate swaps) 2 - - 3.4 3.4

Current poron of long-term debt 2 14.8 14.8 14.8 14.8
Long-term debt 2 193.4 189.1 206.5 203.2
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 three customers that accounted for 100% of me charter revenues and 98.4% of total
revenues.
ANNUAL REPORT 2023
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 the twelve months period ended December 31, 2023, 400,000 share
opons, 100,000 share opons and 150,000 share opons were exercised at the price of US$4.985 per share, US$4.725 per share and
US$4.445 per share, respecvely. Following this, no share opons remain outstanding from the grant in January 2019.
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 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$321k and will be expensed over the requisite service
period. US$107k has been expensed in the twelve months ended December 31, 2023.
   
   
   
    
    
Granted 60 000 5.0 18.0 13.3
Exercised (20 000) 1.6 6.0 9.5
Exercisable - - - -
Forfeited - - - -
    
    
Granted - - - -
Exercised (650 000) 0.5 4.8 9.5
Exercisable 20 000 4.0 16.8 13.3
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$0.64, US$1.62, US$2.88, US$0.28 and US$0.135 per share for 2023, 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$0.82 and US$1.12
for 2023 and 2022, respecvely. The fair value of the share opons granted in April 2022 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:
2022
Grant date April 7
Risk-free rate 2.66%
Expected life 4 years
Expected future volality 61%
ANNUAL REPORT 2023
29
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, 2023, we paid our execuve ocers (CEO; CFO, CTO and COO) aggregate compensaon of US$1.3
million (2022: US$1.9 million). In addion to cash compensaon, we recognized US$89k during the year ended December 31, 2023
(2022: 80k), relang to share opons granted to execuve ocers. As of December 31, 2023, the members of Management and Directors
that hold shares and share opons of the Company are set out below:
   
Viggo Bang-Hansen Director -
Kate Blankenship Director 20 000
Magnus Halvorsen * Chairperson 2 032 118
Herman Billung CEO 10 000 50 000
Vidar Hasund CFO 90 000 -
Chrisan Dahll CTO 14 750 10 000
Peer Lalic COO - -
* 1,527,026 shares held through his controlled company MH Capital AS, and 505,092 shares held privately.

12 months to 12 Months to
(In millions of US$) December 31, 2023 December 31, 2022
Statutory audit fee 0.2 0.2
Other non-auding services - -
Total fees 0.2 0.2
ANNUAL REPORT 2023
30
NOTES

  
MH Capital AS 1 527 026 6.68
J.P. Morgan Securies LLC (nominee) 1 500 000 6.56
Brown Brothers Harriman & Co. (nominee) 1 403 480 6.14
Avanza Bank AB (nominee) 1 238 475 5.42
UBS Switzerland AG (nominee) 1 139 869 4.98
Clearstream Banking S.A. (nominee) 805 173 3.52
DNB Luxembourg S.A. (nominee) 678 882 2.97
The Bank of New York Mellon SA/NV (nominee) 607 627 2.66
Cibank, N.A. (nominee) 580 965 2.54
Skandinaviska Enskilda Banken AB (nominee) 548 407 2.40
Magnus Halvorsen 505 092 2.21
Danske Bank A/S (nominee) 497 542 2.18
Nordnet Livsforsikring AS 402 152 1.76
Bjørn Andreas Freng Isaksen 400 150 1.75
Nordnet Bank AB (nominee) 397 718 1.74
J.P. Morgan SE (nominee) 397 369 1.74
State Street Bank and Trust Comp (nominee) 378 760 1.66
Cibank Europe plc (nominee) 374 838 1.64
Verdipapirfondet DNB Smb 365 518 1.60
DZ Privatbank S.A. (nominee) 315 000 1.38
Total 14 064 043 61.49
Other shareholders 8 806 863 38.51
Total 22 870 906 100.00
16. SHAREHOLDERS’ EQUITY
At the 2022 Annual General Meeng held March 31, 2022, it was approved to reduce the Share Premium Account (Recognized as Addi-
onal paid-in capital in the Consolidated Statements of Changes in Shareholders’ Equity) of the Company by US$30,579,347 and to credit
the same amount resulng from the reducon to the Company’s Contributed Surplus account, with eect from March 31, 2022.
At the 2023 Annual General Meeng held May 9, 2023, it was approved to reduce the Share Premium Account (Recognized as Addional
paid-in capital in the Consolidated Statements of Changes in Shareholders’ Equity) of the Company by US$1,594,000 and to credit the
same amount resulng from the reducon to the Company’s Contributed Surplus account, with eect from May 9, 2023.

 
 
Share issue on exercise of opons March: US$4.985 per share 400 000
Share issue on exercise of opons September: US$4.725 per share 100 000
Share issue on exercise of opons November: US$4.445 per share 30 000
Share issue on exercise of opons December: US$4.445 per share 45 000
Share issue on exercise of opons December: US$4.445 per share 75 000
 
ANNUAL REPORT 2023
31
NOTES
17. SUBSEQUENT EVENTS
Cash distribuons
In January 2024, the Company declared a dividend of US$0.21 per share for December 2023.
In January 2024, the Company paid the cash distribuon for November 2023, which was recognized as a liability as of December 31, 2023.
In February 2024, the Company declared a dividend of US$0.1 per share for January 2024.
In March 2024, the Company declared a dividend of US$0.1 per share for February 2024.
Sale of Bulk Shanghai and Bulk Seoul
In February 2024, the Company signed an agreement to sell the vessels Bulk Shanghai and Bulk Seoul to an unaliated third party for a
total consideraon of US$127.5 million. The sale is subject to certain closing condions, in line with industry standards. The two vessels
are currently owned by Ocean Yield under a sale leaseback arrangement, and the Company has exercised its opon with Ocean Yield to
eectuate the sale. The Company expects to recognize a net book gain of approximately US$40 million upon compleon of the transac-
on which is expected to take place no later than May 1, 2024.
2020 BULKERS LTD.
ANNUAL REPORT 2023
32
RECONCILIATION OF
ALTERNATIVE PERFOR
MANCE MEASURES
12 months to 12 months to
(In millions of US$) December 31, 2023 December 31, 2022
  
Depreciaon and amorzaon (11.6) (11.7)
EBITDA 49.3 53.2
12 months to 12 months to
(In millions of US$, except per day data) December 31, 2023 December 31, 2022
  
Address commission (2.5) (2.6)
  
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 2023
33
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 balance sheets as at December 31, 2023, statements of operations,
comprehensive income, cash flows and changes in shareholders’ equity for the year then ended, and
notes to the financial statements, including a summary of material 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, 2023, 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 7 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 consolidated financial statements of the current period. This matter was addressed in
the context of our audit of the consolidated 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 has the same characteristics and risks this year
as the previous year and consequently have been an area of focus also for the 2023 audit.
ANNUAL REPORT 2023
34
2 / 5
Key Audit Matters
How our audit addressed the Key Audit
Matter
Impairment Assessment for Vessels and
E
quipment
Refer to note 2 (Accounting policies) and
note 9
(Vessels and equipment, net)
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
US
D 337.4 million. The Group has not
recognized an impairment on the Newcastlemax
vessels in 2023.
Indicators of impairment for the vessels were
assessed and not considered present during
2023.
As explained in the notes, management
considered, among ot
hers, the conditions in the
dry bulk freight market, estimated fair value of
the vessels, less cost of sell, and the market
capitalization of the Company against the net
book value of equity, which gave no indication of
impairment. As a result of the above
factors,
management has not performed an impairment
test.
In their assessment of impairment indicators,
management considers each vessel to be the
lowest level for which an entity can separately
identify cash flows that are largely independent
of the cas
h flows of other assets and liabilities,
and consequently we assessed indicators for
impairment 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
i
mpairment.
Impairment assessment for vessels and
equipment
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
requirements of the standards, in particular ASC
360, were met. We also assessed the
consistency year on year of the application of the
accounting policy.
To assess the estimates for fair value less co
sts
of disposal as an indicator of impairment,
management compiled broker valuation
certificates for the vessels
. We satisfied
ourselves that the external brokers had both the
objectivity and the competence to provide the
estimate.
To assess this, we corroborated that,
under the terms 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
broke
rs to understand how the estimates 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
found that
management sufficiently understood the
valuations from third party brokers, including the
methodology used in arriving at the valuations
,
performing sensitivity analysis
, and performing
comparisons
to other available market data
where possible.
Management has also used the
market intelligence obtained from the sale of two
vessels post year end to confirm the valuations
obtained.
In order to assess each of the assumptions in
the impairment indicator a
ssessment, we
interviewed management and challenged their
assumptions. For certain key assumptions we
specifically used current and historical external
AUDITORS’
REPORT
ANNUAL REPORT 2023
35
3 / 5
market data to corroborate the freight rates
assessed by management. We challenged
management on their a
ssessment of market
rates. We also corroborated management’s
assessment with external market 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 impairme
nt.
We
read note 2 (Accounting policies) and note 9
(Vessels and equipment, net)
and assessed
th
ese to be in line with the requirements.
No matters of consequence arose from the
procedures above.
Other Information
The Board of Directors (management) are responsible for the information in the Board of Directors’
report and the other information accompanying the consolidated 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 consolidated financial statements, our responsibility is to read the
Board of Directors’ report and the other information accompanying the consolidated financial
statements. The purpose is to consider if there is material inconsistency between the Board of
Directors’ report and the other information accompanying the consolidated financial statements and
the consolidated financial statements or our knowledge obtained in the audit, or whether the Board of
Directors’ report and the other information accompanying the consolidated financial statements
otherwise appears 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 consolidated
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 consolidated 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 consolidated 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 consolidated financial statements, management is responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
AUDITORS’
REPORT
ANNUAL REPORT 2023
36
4 / 5
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.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated 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 consolidated 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 consolidated 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
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
AUDITORS’
REPORT
ANNUAL REPORT 2023
37
AUDITORS’
REPORT
5 / 5
From the matters communicated with the Board of Directors, we determine those matters that were of
most significance in the audit of the consolidated 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 consolidated 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 2023.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 consolidated 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 consolidated 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 6, 2024
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