Baltic Trading LimitedQ4 2012 Earnings Presentation                                February 21, 2013
Forward Looking Statements                       "Safe Harbor" Statement Under the Private Securities Litigation Reform Ac...
Agenda       Fourth Quarter and Year to Date Highlights       Financial Overview       Industry Overview2 BALTIC TRADIN...
Fourth Quarter and Year to Date Highlights3 BALTIC TRADING LIMITED
Fourth Quarter 2012 Highlights   Net loss of $4.3 million for the fourth quarter of 2012           – Basic         and di...
Fleet Overview                                                                                                            ...
Financial Overview6 BALTIC TRADING LIMITED
Year to Date Earnings                                                                          Three Months Ended         ...
December 31, 2012 Balance Sheet                                                                                           ...
4th Quarter Highlights                                                                     Three Months Ended             ...
Dividend Declaration & Policy         Declared dividend of $0.01 per share payable on or about March 14, 2013 to all shar...
2013 Estimated Break-Even Levels (1)                    Daily Expenses by Category                                        ...
Industry Overview12 BALTIC TRADING LIMITED
Drybulk Index                                                    Baltic Dry Index                                         ...
Recent Drybulk Market Developments      Scrapping increased by 45% in 2012 compared to the prior year on a tonnage basis(...
Short and Long-Term Industry Catalysts                                                                   FY 2012 & Jan. 20...
Steel Demand Still Drives the Market         Chinese steel production increased by 3.1% in 2012 compared to 2011(1)      ...
Increasing Iron Ore and Coal Production are Major Factors                                                                 ...
Supply Side Fundamentals          Declining newbuilding activity and prices have put pressure on shipyard margins(1)    ...
Q&A19 BALTIC TRADING LIMITED
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Baltic Trading Q4 2012 results presentation

  1. 1. Baltic Trading LimitedQ4 2012 Earnings Presentation February 21, 2013
  2. 2. Forward Looking Statements "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. These forward looking statements are based on management’s current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this presentation are the following: (i) declines in demand or rates in the drybulk shipping industry; (ii) prolonged weakness in drybulk rates; (iii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iv) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (v) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (vi) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, lube, oil, bunkers, repairs, maintenance and general, administrative and management fee expenses; (vii) whether our insurance arrangements are adequate; (viii) changes in general domestic and international political conditions; (ix) acts of war, terrorism, or piracy; (x) changes in the condition of the Company’s vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (xi) the amount of offhire time needed to complete repairs on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims including offhire days; (xii) the Company’s acquisition or disposition of vessels; (xiii) our ability to leverage Genco’s relationships and reputation in the shipping industry; (xiv) the completion of definitive documentation with respect to charters; (xv) charterers’ compliance with the terms of their charters in the current market environment; and other factors listed from time to time in our public filings with the Securities and Exchange Commission including, without limitation, the Company’s Annual report on Form 10-K for the year ended December 31, 2011 and its reports on Form 10-Q and Form 8-K. Our ability to pay dividends in any period will depend upon various factors, including the limitations under any credit agreements to which we may be a party, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.1 BALTIC TRADING LIMITED
  3. 3. Agenda  Fourth Quarter and Year to Date Highlights  Financial Overview  Industry Overview2 BALTIC TRADING LIMITED
  4. 4. Fourth Quarter and Year to Date Highlights3 BALTIC TRADING LIMITED
  5. 5. Fourth Quarter 2012 Highlights  Net loss of $4.3 million for the fourth quarter of 2012 – Basic and diluted loss per share of $0.19  Paid a $0.01 dividend per share for the third quarter of 2012  Declared a $0.01 dividend per share for the fourth quarter of 20124 BALTIC TRADING LIMITED
  6. 6. Fleet Overview Employment Vessel Type Vessel Name Year Built Charterer Charter Expiration (1) Structure Baltic Bear 2010 Swissmarine Services S.A. May 2013 101.5% of BCI (2) Capesize Baltic Wolf 2010 Cargill International S.A. May 2014 100% of BCI (3) Baltic Leopard 2009 Resource Marine PTE Ltd. (part February 2014 95% of BSI (4) of the Macquarie group of companies) Baltic Panther 2009 Klaveness Chartering April 2013 95% of BSI (5) Supramax Baltic Jaguar 2009 Resource Marine PTE Ltd. (part April 2014 95% of BSI (6) of the Macquarie group of companies) Baltic Cougar 2009 Pacific World Shipping PTE Ltd. March 2013 $7,500 (7) Baltic Wind 2009 Cargill International S.A. May 2013 115% of BHSI (8) Handysize Baltic Cove 2010 Cargill International S.A. February 2014 115% of BHSI (8) Baltic Breeze 2010 Cargill International S.A. July 2014 115% of BHSI (8) 1) The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Under the terms of each contract, the charterer is entitled to extend the time charters from two to four months in order to complete the vessels final voyage plus any time the vessel has been off-hire. 2) We have agreed to an extension with Swissmarine Services S.A. on a spot market-related time charter at a rate based on 101.5% of the average of the daily rates of the Baltic Capesize Index (BCI), published by the Baltic Exchange, as reflected in daily reports. Hire is paid in arrears net of a 6.25% brokerage commission which includes the 1.25% commission payable to Genco Shipping & Trading Limited. The duration of the extension is 10.5 to 13.5 months. 3) We have agreed to an extension with Cargill International S.A. on a spot market-related time charter based on 100% of the average of the daily rates of the BCI, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 5.00% brokerage commission, which includes the 1.25% commission payable to Genco Shipping & Trading Limited. The duration of the spot market-related time charter is 21.5 to 26.5 months. 4) We have reached an agreement with Resource Marine PTE Ltd. on a spot market-related time charter for a minimum of 18.5 months to a maximum end date of May 30, 2014 based on 95% of the average of the daily rates of the Baltic Supramax Index (BSI), published by the Baltic Exchange, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco Shipping & Trading Limited. 5) We have reached an agreement with Klaveness Chartering on a spot market-related time charter based on 95% of the average of the daily rates of the BSI, as reflected in daily reports. The duration is 22.5 to 25.5 months with hire paid every 15 days in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco Shipping & Trading Limited. 6) We have reached an agreement with Resource Marine PTE Ltd. on a spot market-related time charter for a minimum of 20.5 months to a maximum end date of July 11, 2014 based on 95% of the average of the daily rates of the BSI, as reflected in daily reports. Hire is paid every 15 days in arrears net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco Shipping & Trading Limited. 7) We have reached an agreement with Pacific World Shipping PTE Ltd. on a time charter for approximately 20 days at a rate of $7,500 per day. Hire is paid every 15 days in advance net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco Shipping & Trading Limited. The vessel delivered to charters on February 18, 2013 after repositioning. The vessel was previously fixed with Bulk Marine Ltd. on a time charter at a rate of $9,250 per day which ended on February 12, 2013. 8) The rate for each of these spot market-related time charters is based on 115% of the average of the daily rates of the Baltic Handysize Index (BHSI), published by the Baltic Exchange, as reflected in daily reports. Hire is paid every 15 days in advance net of a 6.25% brokerage commission, which includes the 1.25% commission payable to Genco Shipping & Trading Limited.5 BALTIC TRADING LIMITED
  7. 7. Financial Overview6 BALTIC TRADING LIMITED
  8. 8. Year to Date Earnings Three Months Ended Twelve Months Ended December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011 (Dollars in thousands, except share and per share data) (Dollars in thousands, except share and per share data) (unaudited) (unaudited) INCOME STATEMENT DATA: Revenues $ 7,116 $ 13,137 $ 27,304 $ 43,492 Operating expenses: Voyage expenses 456 185 1,142 61 Voyage expenses to parent 86 170 346 560 Vessel operating expenses 4,257 4,250 16,730 16,004 General, administrative and technical management fees 1,244 1,270 4,768 5,585 Management fees to parent 622 621 2,471 2,464 Depreciation 3,724 3,724 14,814 14,769 Total operating expenses 10,389 10,220 40,271 39,443 Operating (loss) income (3,273) 2,917 (12,967) 4,049 Other (expense) income: Other expense (6) (2) (28) (32) Interest income 1 5 5 9 Interest expense (1,051) (1,106) (4,252) (4,422) Other expense, net (1,056) (1,103) (4,275) (4,445) (Loss) income before income taxes (4,329) 1,814 (17,242) (396) Income tax expense (2) (3) (28) (34) Net (loss) income $ (4,331) $ 1,811 $ (17,270) $ (430) Net (loss) earnings per share - basic $ (0.19) $ 0.08 $ (0.78) $ (0.02) Net (loss) earnings per share - diluted $ (0.19) $ 0.08 $ (0.78) $ (0.02) Shares used in per share calculation - basic 22,310,159 22,141,498 22,261,846 22,105,668 Shares used in per share calculation - diluted 22,310,159 22,156,984 22,261,846 22,105,6687 BALTIC TRADING LIMITED
  9. 9. December 31, 2012 Balance Sheet December 31, 2012 December 31, 2011 (Dollars in thousands) (unaudited) BALANCE SHEET DATA: Cash $ 3,280 $ 8,300 Current assets 7,117 12,420 Total assets 364,370 384,955 Current liabilities 2,458 2,102 Total long-term debt 101,250 101,250 Shareholders equity 260,662 281,603 Three Months Ended Twelve Months Ended December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011 (Dollars in thousands) (Dollars in thousands) (unaudited) (unaudited) OTHER FINANCIAL DATA: Net cash provided by operating activities $ 433 $ 15,379 Net cash used in investing activities N/A (5) (2,570) Net cash used in financing activities (5,448) (10,306) Three Months Ended Twelve Months Ended December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011 (Dollars in thousands) (Dollars in thousands) (unaudited) (unaudited) EBITDA Reconciliation: Net (loss) income $ (4,331) $ 1,811 $ (17,270) $ (430) + Net interest expense 1,050 1,101 4,247 4,413 + Depreciation 3,724 3,724 14,814 14,769 + Income tax expense 2 3 28 34 (1) EBITDA $ 445 $ 6,639 $ 1,819 $ 18,786 (1) EBITDA represents net (loss) income plus net interest expense, taxes and depreciation and amortization. EBITDA is included because it is used by management and certain investors as a measure of operating performance. EBITDA is used by analysts in the shipping industry as a common performance measure to compare results across peers. Our management uses EBITDA as a performance measure in our consolidating internal financial statements, and it is presented for review at our board meetings. The Company believes that EBITDA is useful to investors as the shipping industry is capital intensive which often results in significant depreciation and cost of financing. EBITDA presents investors with a measure in addition to net income to evaluate the Company’s performance prior to these costs. EBITDA is not an item recognized by U.S. GAAP and should not be considered as an alternative to net income, operating income or any other indicator of a company’s operating performance required by U.S. GAAP. EBITDA is not a source of liquidity or cash flows as shown in our consolidated statement of cash flows. The definition of EBITDA used here may not be comparable to that used by other companies.8 BALTIC TRADING LIMITED
  10. 10. 4th Quarter Highlights Three Months Ended Twelve Months Ended December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011 (unaudited) (unaudited) FLEET DATA: Total number of vessels at end of period 9 9 9 9 Average number of vessels (1) 9.0 9.0 9.0 9.0 Total ownership days for fleet (2) 828 828 3,294 3,285 Total available days for fleet (3) 827 828 3,283 3,285 Total operating days for fleet (4) 824 823 3,260 3,263 Fleet utilization (5) 99.7% 99.4% 99.3% 99.3% AVERAGE DAILY RESULTS: Time charter equivalent (6) $ 7,953 $ 15,437 $ 7,863 $ 13,050 Daily vessel operating expenses per vessel (7) 5,141 5,133 5,079 4,872 (1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as a measured by the sum of the number of days each vessel was part of our fleet during the period divided by the number of calendar days in that period. (2) We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period. (3) We define available days as the number of our ownership days less the aggregate number of days that our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels between time charters. Companies in the shipping industry generally use available days to measure the number of days in a period during which vessels should be capable of generating revenues. (4) We define operating days as the number of our available days in a period less the aggregate number of days that our vessels are off-hire due to unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues. (5) We calculate fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a companys efficiency in finding suitable employment for its vessels and minimizing the number of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning. (6) We define TCE rates as our net voyage revenue (voyage revenues less voyage expenses) divided by the number of our available days during the period, which is consistent with industry standards. TCE rate is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts. (7) We define daily vessel operating expenses to include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance (excluding drydocking), the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period.9 BALTIC TRADING LIMITED
  11. 11. Dividend Declaration & Policy  Declared dividend of $0.01 per share payable on or about March 14, 2013 to all shareholders of record on March 7, 2013  Dividend policy established as follows: − Net income less cash expenditures for capital items related to fleet, such as drydocking and special surveys, other than vessel acquisitions and related expenses − Plus non-cash compensation − Subject to reserves established by our board  Credit facility places no restrictions on amounts of dividends Dividend History Q2 2010 $0.16 Q3 2010 $0.16 Q4 2010 $0.17 Q1 2011 $0.06 Q2 2011 $0.10 Q3 2011 $0.12 Q4 2011 $0.13 Q1 2012 $0.05 Q2 2012 $0.05 Q3 2012 $0.01 Q4 2012 $0.01 Total $1.0210 BALTIC TRADING LIMITED
  12. 12. 2013 Estimated Break-Even Levels (1) Daily Expenses by Category Free Cash Flow(2) Net Income Direct Vessel Operating(3) $5,400 $5,400 G&A, Management Fees(4) 1,678 2,096 Interest Expense(5) 1,192 1,333 Depreciation(6) - 4,496 Daily Break-Even(7) $8,270 $13,325 (1) Breakeven levels are based on an average number of 9.00 vessels for 2013. (2) Free Cash Flow is defined as net income plus depreciation less capital expenditures, primarily vessel dry dockings, and other non-cash items, namely restricted stock compensation and deferred financing charges. (3) Direct Vessel Operating Expenses is based on management’s estimates and budgets submitted by our technical managers. We believe DVOE are best measured for comparative purposes over a 12-month period. (4) General & Administrative amounts are based on a budget which includes incentive compensation and may vary, including as a result of actual incentive compensation. Management Fees are based on the contracted monthly rate per vessel for the technical management of our fleet, including amount paid to Genco. (5) Interest Expense is based on our outstanding debt of $101.3 million, unused commitment fees of 1.25% under our amended $150 million credit facility, an assumed LIBOR rate of 0.50% plus 300 bps and amortization of deferred financing costs. As part of the commitment fee portion of interest expense, there are semi-annual commitment fee reductions of $5.0 million. Four reductions have taken place, with the first occurring on May 31, 2011 and the next scheduled for May 31, 2013. (6) Depreciation is based on the acquisition value of the current fleet, including the vessels to be acquired and amortization of dry docking costs. Depreciation expense utilizes a residual scrap rate of $245 per LWT. (7) The amounts shown will vary based on actual results.11 BALTIC TRADING LIMITED
  13. 13. Industry Overview12 BALTIC TRADING LIMITED
  14. 14. Drybulk Index Baltic Dry Index (BDI Points) 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 Source: Clarkson Research Services Limited 201313 BALTIC TRADING LIMITED
  15. 15. Recent Drybulk Market Developments  Scrapping increased by 45% in 2012 compared to the prior year on a tonnage basis(1) ― 33.7 Mt scrapped during all of 2012 which represents about one third of 2012 deliveries  Newbuilding orders in 2012 decreased 43% compared to the prior year(1)  Vessel deliveries slowed considerably from July 2012 to the end of the year after peaking in June(1) ― 2H-12 deliveries were the fewest in any half year period since 2H-09 ― Average net additions per month in 2H-12 slowed to 26 vessels from an average of 76 vessels in 1H-12 ― January 2013 deliveries were 21% lower than the prior year and the lowest January delivery total since 2010  Slippage was approximately 30% of the orderbook in 2012(1)  Chinese iron ore inventories have declined to 69.4 Mt, the lowest level since November 2010(2) ― Chinese iron ore imports increased by 8.5% in 2012 YOY(1) ― Brazilian iron ore exports reached a quarterly record of 97.5 Mt in Q4-12, 18% higher than Q3-12(1)  Iron ore prices have rebounded to over $150 per ton(3)  Chinese industrial production rose 10.3% in December from a year earlier, the fourth consecutive month of improvement(1)  Peak winter season electricity demand has led to robust thermal coal derived electricity production in China(2)  Indian thermal coal fixture volume remains robust as domestic supply lags behind demand(2) ― December Indian thermal coal imports reached a record high of 140 Mt on an annualized basis, becoming the second largest consumer of seaborne coal(4)  Activity for Panamax vessels is picking up due the onset of South American grain season(5) ― Brazilian grain exports in the second half of 2012 offset shortages from weak US grain season due to drought(1) 1) Source: Clarkson Research Services Limited 2013 4) Source: Macquarie Commodities Research 2) Source: Commodore Research 5) Source: Bloomberg 3) Source: ICAP Shipping14 BALTIC TRADING LIMITED
  16. 16. Short and Long-Term Industry Catalysts FY 2012 & Jan. 2013 Scheduled vs. Actual Deliveries(2)  Construction on new Chinese stimulus projects set to ramp up likely supporting steel production(1) FY 2012 January 2013  Low iron ore inventories along with increased steel (mdwt) (mdwt) production could lead to higher imports Actual Deliveries 98.4 9.7  Volume and port capacity expansion as iron ore and Scrapping 33.7 2.6 coal miners increase production over the next few Net Additions 64.7 7.1 years Scheduled Deliveries for Period 138.9 15.3  Increased demand of imported ore against Chinese Slippage Percentage 29% 37% domestic ore possible due to price arbitrage ― Also in order to offset lower grade domestic ore(1) Drybulk Vessel Deliveries vs. Scrapping(2)  Additional scrapping potential due to a combination 16 Deliveries Scrapping Net Additions of volatile charter rates and stable scrap steel prices 14  Slippage of newbuilding vessel deliveries as 12 financing concerns continue 10  Chinese banks issued $1.3 trillion in new loans 8 during 2012, a 9% increase YOY(1) 6  Pareto forecasts 2013 tonnage demand growth of 4 8% exceeding net supply growth of 7%(3) 2 0 1) Source: Commodore Research 2) Source: Clarkson Research Services Limited 2013 3) Source: Pareto Shipping Research15 BALTIC TRADING LIMITED
  17. 17. Steel Demand Still Drives the Market  Chinese steel production increased by 3.1% in 2012 compared to 2011(1) ― China’s apparent steel use is expected to rise by an additional 3.1% in 2013  Total seaborne iron ore and coal trade are estimated to grow by 6% and 5% YOY in 2013, respectively(2)  China’s fixed-asset investment rose 20.6% in 2012 YOY(3) ― China’s urbanization rate is expected to grow to 60% by 2020 as compared to 51% today and 80% for most developed nations(4)  China’s Ministry of Transportation plans to more than double its network of high-speed railways by 2015(5)  China plans to start construction on 6 million social housing units and complete the construction of 4.6 million units in 2013(4)  Indian steel production grew 6.3% in 2012 YOY(1) ― India’s steel demand is projected to grow by 5.0% in 2013 Iron Ore Imports by Country(2) Chinese Iron Ore Imports vs. Steel Production(1)(2) (million tons) (million tons) China EU27 (External Trade) Steel Production Iron Ore Imports 80 Japan South Korea 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 1) Source: World Steel Association 3) Source: National Bureau of Statistics 5) Source: Commodore Research16 BALTIC TRADING LIMITED 2) Source: Clarkson Research Services Limited 2013 4) Source: J.P. Morgan, Hands-On China Report
  18. 18. Increasing Iron Ore and Coal Production are Major Factors  Key iron ore expansion plans equal increased capacity of 407 Mt by 2016(1) ― 407 Mt represents 36.5% of total 2012 seaborne iron ore trade Key Expansion Plans(1) ― 115 Mt represents 10.3% of total 2012 seaborne iron ore trade planned for 2013 (million tons)  While domestic Chinese iron ore production has increased, its Fe content has decreased to 18.6%(2) BHP Fortescue Rio Tinto Vale MMX ― 2012 nominal ore production of 1,378 Mt translates to 414 Mt of ore with Fe content comparable to imported ore 160  Australian iron ore exports are forecast to increase by 13% to 543 140 Mt in 2013(3) 120 ― Australian coal export volumes are anticipated to grow by 11% in 2013 YOY 100 80  Additional supply of iron ore could lead to a further decrease in iron ore prices and a potential displacement of Chinese domestic ore 60  Declining grades of Chinese domestic iron ore, limited Indian export 40 availability and marginal export growth from Brazil in 2013 will lead 20 to more of China’s iron ore imports sourced from Australia(4) 0 ― Australia exported a record amount of iron ore in 2013 2014 2015 2016 December(5) ― Fortescue and Rio Tinto expect robust iron ore output growth in 2013(4) 1) Source: Public statements by subject companies  India’s coal supply is expected to fall short of demand by 192 Mt in 2) Source: ICAP Shipping the FY ending March 2013, which could encourage additional 3) Source: Australia’s Bureau of Resources and Energy Economics imports(6) 4) Source: Clarkson Research Services Limited 2013 5) Source: Macquarie Commodities Research ― India’s coal imports were 17% higher in 2012 than the year 6) Source: Reuters before(4)17 BALTIC TRADING LIMITED
  19. 19. Supply Side Fundamentals  Declining newbuilding activity and prices have put pressure on shipyard margins(1)  Scarce capital continues  Slippage of newbuilding vessel deliveries as financing concerns continue  16% of the fleet is 20 years old or greater while 11% of the fleet is 25 years old or greater(2) ― Represents 1,533 vessels that could get scrapped going forward  2.6 mdwt was scrapped in January 2013 as compared to 2.1 mdwt scrapped in January of last year(2)  34 of 73 Capesize vessels scrapped in 2012 were built from 1990 to 1995, Capesize vessels built in 1995 or earlier total 15% of the Capesize fleet(2)  Capesize orderbook currently stands at 48.0 mdwt while Capesize vessels greater than 20 year old total 24.1 mdwt(2) Drybulk Vessel Deliveries by Type(2) Drybulk Vessel Scrapping by Type(2) (million dwt) (million dwt) Capesize Panamax Handymax Handysize Handysize & Handymax Panamax Capesize 100 35 80 Remains to be 30 seen what will 25 60 be delivered 20 40 15 10 20 5 0 0 2013 2014 2015+ 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD 1) Source: Commodore Research18 BALTIC TRADING LIMITED 2) Source: Clarkson Research Services Limited 2013
  20. 20. Q&A19 BALTIC TRADING LIMITED

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