Western Bulk Chartering AS has had a profitable first half of the year with a net profit after tax of $2.5m, as the H1 2024 proved to be a strong first half for the dry bulk market.
For the first half of 2024, Western Bulk – which runs an average fleet of 133 vessels – generated a net profit after tax of $2.5m, compared to a net loss after tax of USD -4.8 m for the first half of 2023.
The dry bulk operator and charterer of panamax, supramax/ultramax and handysize dry bulk vessels says 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 repositioning of vessels (back haul) from the Pacific to a typically higher paying Atlantic market, and this is expected to yield substantial returns in the second half.”
Meanwhile the company’s 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.
In July 2024 the company also exercised a purchase option and sold the 2019-built ultramax vessel Western Oslo to an unnamed buyer, in a back-to-back deal, realizing $4.5m in profit to be recorded in the third quarter of 2024.
The Oslo-listed Western Bulk says the supply disruptions, driven by the geopolitical events in the Middle East, have played a big part in the strong rates seen in the first half of the year, which have increased the average days spent at sea by about 6% compared to the same period last year.
However, freight demand has also been healthy with overall global tonnes exported up by about 5%.
Now the company is optimistic for the second half of the year for the dry bulk markets as “continued supply inefficiencies combined with strong exports out of especially the Atlantic is expected to continue to support the market.”
“Despite the draft situation in the Panama Canal improving due to change from El Niño to La Niña climate pattern, disruptions from the geopolitical situation in the Red Sea are expected to remain in place. However, a large order book for especially the Supramax and Ultramax segment could cap the upside for the geared bulkers,” reports the dry bulk operator.
