Dividend and market update for third quarter

Coming out of summer, the group held a significant long position, primarily in tonnage positioned in the Atlantic basin. However, the anticipated seasonal market push in Atlantic failed to materialize.

The Supramax dry bulk market experienced unusually low volatility, marking a departure from the typical seasonal fluctuations seen during this period. The Baltic Supramax index started the quarter at 15,237 USD/day and ended the quarter down 892 USD to end at 14,345 USD/day. Due to weakening Atlantic fundamentals, the front haul rates experienced a particularly challenging quarter.

A key factor holding back the Supramax market was the softening Panamax rates, as many cargoes that would typically be handled by Supramax vessels were instead taken up by cheaper Panamax vessels, particularly in the Atlantic. Key contributing factors to the weak Panamax rates were low congestion levels and shorter distances traveled with weaker long haul Brazilian grain exports.  

While overall freight rates remain relatively high, supported by geopolitical factors that are maintaining ton-mile demand, the outlook is increasingly uncertain. Weaker soybean demand from China and sluggish European industrial activity has kept the Atlantic market from gaining its usual momentum where it typically outperforms the Pacific significantly in Q4. Consequently, the group has reduced its outright long exposure and is tactically managing its Atlantic fleet to recover costs from earlier backhaul voyages, while maintaining exposure to a potential late upturn in the Atlantic, which historically peaks mid-December. The group´s overall position going into Q4 is thus flat to short, reflecting the bearish sentiment.

Following the appointment of Torbjørn as CEO from 1^st of September, an initiative has been established to improve competitiveness. As part of this, the organization has been fine-tuned to lower the Group´s cost base. This is expected to lower the company´s general and administration costs (G&A) by about 3 mUSD to about 22 mUSD annually starting from 2025.

The Board of Directors has decided not to declare a dividend for Q3-24. Any dividend for the fourth quarter of 2024 will be announced in February 2025 together with publication of the second half year report.

Contacts
For more information, please contact:

Torbjørn Gjervik, Chief Executive Officer
Tel: +47 940 28211
E-mail: torbjorn.gjervik@westernbulk.com

Kenneth Thu, Chief Financial Officer
Tel: +47 988 74302
E-mail: kenneth.thu@westernbulk.com

DISCLAIMERS

This press release contains forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “will,” “may,” "continue," “should” and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Western Bulk Chartering believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements.

The information, opinions and forward-looking statements contained in this release speak only as at its date and are subject to change without notice Western Bulk Chartering disclaims any obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.