Western Bulk announces full year results and CEO step down

“I am grateful for the contributions made by Hans throughout his period as CEO of Western Bulk. He has led the company through an important phase and has been instrumental in building the company’s strong culture”, stated Bengt A. Rem, Chairman of Western Bulk.

For 2H23, Western Bulk generated a net loss after tax of US$10.8 million from a Net TC of US$2.3 million and Net TC Margin per ship day of US$100. For the full year the group had a net loss after tax of US$15.6 million from a Net TC of US$9.3 million and Net TC Margin per ship day of US$202. The number of vessels increased somewhat to an average of 128 vessels in 2H23 compared to 125 vessels in the first half, reaching an average of 126 vessels for 2023 in total.

For most of the year, the company held a negative market view and was careful in taking on long exposure. Vessel owners required a premium to the forward freight market (FFA), while cargo was priced at a discount to the paper market (FFA). This limited business opportunities and led to difficulties in securing physical tonnage without taking an outright long exposure at what was considered as inflated levels against the paper market (FFA). At times this led to short positions with an overweight of cargo commitments covered by more expensive vessels as the market increased more than expected. The company has also made investments in new trading areas. In addition, the situation in the Panama-canal with restrictions and increased fees had a negative impact on the second half year results.

The dry bulk market improved steadily throughout the second half of 2023. The Baltic Supramax Index 58’(BSI) averaged US$11 974/day in 2H23, 14% higher than the US$10 488/day achieved in 1H23. The average spread between Atlantic and Pacific markets increased from US$2999/day to US$6925/day in the second half of the year due to a much stronger Atlantic market.

Read the article online at: https://www.drybulkmagazine.com/shipping/19022024/western-bulk-announces-full-year-results-and-ceo-step-down/