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

Comments to the results

For the full year of 2024, the result after tax was USD -2.7 million, including provisions of USD -4.2 million for contracts running into 2025. The provisions are related to the mark to market value of physical and financial contracts as per year end, with the majority maturing in Q1 2025. The Group has had some length for 2025 that was negatively impacted by the market decline for 2025 starting in 2024. Entering 2025, the overall position was short, and the company has benefited somewhat from the continued market decline at the start of 2025. The results also include USD 1.1 million in costs related to redundancies to streamline the organization. Adjusted for these one-offs the result after tax for 2024 was USD 2.6 million and Net TC USD 28.6 million.

In the second half of the year, 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. This was partly due to less long-haul grain cargoes from the Atlantic to the Pacific, as well as an unusually large share of grains being shipped to Atlantic destinations, causing vessel supply within the Atlantic to stay high. Also, tumbling Panamax rates put pressure on Supramax rates in the Atlantic. Overall, the second half of 2024 saw record low market volatility, limiting trading opportunities.

Net TC per ship day for the full year of 2024 was USD 517 compared to USD 202 for 2023, while the average number of vessels in 2024 was 129 compared to 126 in 2023. The average number of vessels in the second half of 2024 was 125 compared to 128 vessels for the same period in 2023.

Administration expenses increased to USD 26.6 million for the full year of 2024 from USD 25.1 million in 2023. The increase was mostly due to USD -1.1 million in costs related to the redundancy process in H2 2024. Following the downsizing, G&A costs are expected in the range of USD 22 million in 2025.

There were no significant related party transactions during the period.

Full report: Western Bulk