Western Bulk reports improved trading performance in 2024 and lower costs from 2025
Western Bulk improved its trading performance (Net TC) with USD 15 million to USD 24.4 million in 2024, while restructuring the business to lower the annual G&A costs by 15 % to USD 22 million going forward.
Excluding one offs from restructuring and provisions the net result was USD 2.6 million and Net TC USD 28.6 million. Net result for the full year of 2024 ended at USD -2.7 million.
“We have improved our business in 2024, and we will improve it further in 2025. Although we expect challenging market conditions in the first half of 2025, I am confident we will show good profitability this year”, states Torbjørn Gjervik, CEO of Western Bulk.
The second half of 2024 saw record low market volatility, limiting trading opportunities. The Group utilized the strong steel export out of China to position tonnage into the Atlantic basin at a relatively low cost. The risk-reward on this strategy was found to be good at the time of initiation. Regrettably, the anticipated seasonal market push in the Atlantic failed to materialize, limiting gains from the position.
“Our basic business of serving our customers in the spot market should always be profitable, however, in today’s competitive operator market you also need to take some positions to make the real gains. You take those positions when your data and market knowledge tell you that the risk-reward is in your favor. With our people, experience, data and systems we will over time win more than we lose on this strategy, in that we are confident”, explains Torbjørn Gjervik
The Group ended the year with USD 28 million in free cash and no outstanding interest-bearing debt.
“With a strong cash position and an ongoing focus on performance culture, we are ready to capitalize on opportunities as we expect to see increased market volatility in 2025”, states Torbjørn Gjervik.
In relation to the release of the results, a digital investor presentation will be held by the company’s CEO (Torbjørn Gjervik) and CFO (Kenneth Thu) on Monday 24th of February at 13:00 CET. To attend the presentation, please register via the link published on the Investor Relations section of our website.
Half Year H2 2024 Financial 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.