Western Bulk pockets $4.5m ultramax vessel sale profit

Western Bulk Chartering AS has sealed a deal to sell an ultramax vessel in a deal that will generate a net profit of $4.5m, following the exercise of the vessel purchase option.

The Oslo-listed Western Bulk said it has entered into an agreement to sell the 2019-built ultramax vessel 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 $4.5m in the third quarter 2024.

Ørjan Svanevik, interim chief executive and board member of Western Bulk, said: “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.”

Jørgen Veie-Rosvoll, head of period tonnage in Western Bulk, highlighted that the second-hand market for five-year-old eco ultramax vessels was approximately $3.5-4.5m 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,” noted Jørgen Veie-Rosvoll.

After the sale of the ultramax vessel Western Oslo the company will continue evaluating other purchase options in the trading book.