Western Bulk Chartering AS (Western Bulk, OSE:WEST) announces the sale of the 2019-built ultramax vessel Western Oslo, realizing a net profit of approximately USD 4.5 million, following the exercise of the vessel purchase option.

“The transaction exemplifies the commercial acumen of Western Bulk’s globally renowned chartering team and underscores the exceptional flexibility of our business model. It stands as a testament to our team's expertise and strategic approach, enabling us to capitalize on market opportunities across business cycles. The transaction supports our asset-light business model and dividend distribution policy,” says Ørjan Svanevik, interim Chief Executive Officer and Board member of Western Bulk.

Western Bulk has entered into an agreement to sell the Western Oslo to an unnamed buyer by exercising a purchase option with a subsequent sale in the second-hand market. The details of the transaction are subject to confidentiality agreements, but Western Bulk expects book a net profit of approximately USD 4.5 million in the third quarter 2024.

“The second-hand market for 5-year-old eco ultramax vessels was approximately USD 3.5 – 4.5 million lower last year compared to this year. As an asset-light operator in the dry bulk market, we are pleased to profit from historical lease contracts with our close counterparts. With the Western Oslo, we successfully leveraged a strong spot market in 2021-2022 and capitalized on favorable asset market conditions in 2024,” says Jørgen Veie-Rosvoll, Head of Period Tonnage in Western Bulk.

Following the Western Oslo transaction, the company continuously evaluates the other purchase options in the trading book.

Western Bulk press release