Western Bulk reports US$2.5m H1 2024 profit

For the first half of 2024, Western Bulk Chartering AS generated a net profit after tax of US$2.5 million from a Net TC of US$15.1 million and a Net TC Margin per ship day of US$626.

The number of vessels increased to an average of 133, up from 125 in the same period last year, driven by growth within the Panamax segment.

“H1 2024 proved to be a strong first half for the dry bulk market,” Western Bulk explains in a statement. “The Baltic Supramax Index 58’(BSI) averaged USD 13,975/day in H1 2024, 17% higher than the USD 11,974/day achieved in H2 2023 and 33% higher than H1 2023. The spread between Atlantic and Pacific markets averaged USD 924/day, down from USD 2,151/day in the same period last year.”

Entering the year, the company held a long position with more vessel than cargo commitments and thus benefited from the strong market. To a large degree, the profit from this long position has been reinvested in the repositioning of vessels (backhaul) from the Pacific to a typically higher-paying Atlantic market, and this is expected to yield substantial returns in the second half.

The cost of repositioning vessels has been lower than historical levels due to higher-paying steel exports out of China.

As is typical with seasonal trends, Western Bulk anticipates the Atlantic market to outperform the Pacific market in H2 2024. “The upcoming US grain export season, along with sustained healthy volumes from the South Atlantic, would be key factors driving such outperformance,” the company comments.

The Board of Directors has decided not to declare a dividend for Q2 2024 as working capital headroom is needed for volume growth.