Western Bulk had a loss of USD -4.8 million in the first half of 2023 while increasing volume and positioning vessels for a profitable second half of 2023
For the first half of 2023, Western Bulk generated a net loss after tax of USD -4.8 million from a Net TC of USD 7.0 million and Net TC Margin per ship day of USD 310. The number of vessels increased continuously through the first half of 2023, reaching an average of 125 vessels.
While the Group had an extraordinarily good start 2022, the results for the first half of 2023 are significantly lower. The market has been more depressed and returning to normal seasonality, while the company has made investments in volume and repositioning of vessels between basins. During the first quarter, the market was in contango, with higher forward rates for the second quarter than the first quarter’s spot rates. The Group had clear expectations for the forward market to come down and took a short position for the second quarter (more cargo than vessels). For a short period, the market increased instead, and the position was reduced to limit losses. Consequently, the company did not benefit from the later market decline in the second quarter to the same extent as originally expected.
Following a short-lived market increase from mid-February, the dry bulk market declined from mid-March. The Baltic Supramax Index 58’(BSI) averaged at USD 10,457/day in the first half of 2023, 53% lower than the USD 22,152/day reached in the same period last year. Although the dry bulk market is expected to face continued headwinds in the near term, Western Bulk expects to generate a profit for the second half of the year.
In relation to the release of the first half-year results, a digital investor presentation will be held by the company’s CEO (Hans Aasnæs) and CFO (Kenneth Thu) on Monday 21st of August at 12:00 CET. If you would like to attend the presentation, please register your interest by sending an email to IR@westernbulk.com within August 18th at 16:00 CET and you will receive a digital meeting invite in return.
The board of directors calls for an extraordinary general meeting to be held on Tuesday, August 29th at 11.00 CET in the company's office in Henrik Ibsens Gate 100, Oslo. The board proposes that Ørjan Svanevik is elected as a new board member to replace Tord Meling, who is resigning from the board. Ørjan owns 18 000 shares in Western Bulk Chartering AS through the company Oavik Capital AS where he is the sole owner and director.
Please see the attached first half year report 2023 for more information.
Contacts
For more information, please contact:
Hans Aasnæs, Chief Executive Officer
Tel: +47 922 53957
E-mail: hans.aasnas@westernbulk.com
Kenneth Thu, Chief Financial Officer
Tel: +47 988 74302
E-mail: kenneth.thu@westernbulk.com
About Western Bulk Chartering:
Western Bulk Chartering AS is a major dry bulk shipping operator. The company is privately owned by Kistefos Group (68,7 %), Ojada AS (8,3 %) and a group of about 1300 other shareholders. See www.westernbulk.com for more information. Western Bulk Chartering AS is listed on Euronext Growth Oslo.
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.