Western Bulk eyes profitable 2026 despite $6.6 million first half loss

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Western Bulk Chartering AS expects to deliver a full year profit in 2026 after vessel positioning, weaker trading margins and Persian Gulf disruptions contributed to a net loss of $6.6 million during the first half.

The dry bulk operator reported a Net TC Result of $5.2 million for the six months ended June 30. Its Net TC margin fell to $247 per ship day across an average fleet of 116 vessels, compared with $383 per ship day across 110 vessels during the same period in 2025.

The lower trading contribution pushed the company deeper into the red. Western Bulk recorded a first half net loss of $6.6 million, widening from a loss of $2.1 million one year earlier.

Despite the weaker figures, management said commercial positions established during the first half should allow the company to benefit from stronger dry bulk market conditions during the remainder of the year.

Western Bulk used the opening six months of 2026 to build length, meaning it secured vessel capacity in anticipation of stronger demand and rates later in the year.

That strategy placed pressure on the first half result because the cost and exposure associated with those positions were carried before the expected market improvement. The company said dry bulk forward curves for the second half had already risen materially by the time it published its results on August 14.

The approach resembles positioning ships before the tide turns. The immediate cost appears in the current reporting period, while the commercial benefit depends on market conditions developing as expected.

Western Bulk said its cargo, tonnage and derivative commitments entering the second half were stronger than they had been a year earlier. These commitments form the basis of management’s expectation that the company will return to profitability over the full year.

The average number of vessels operated during the first half increased by six compared with the corresponding 2025 period. However, the lower margin per ship day shows that the larger operating base did not translate into a stronger immediate contribution.

Results were also affected by three Western Bulk vessels that were temporarily held up in the Persian Gulf.

The company did not disclose how long the vessels were delayed or quantify the financial effect. It confirmed that all three ships had since left the region safely.

Chief Executive Torbjørn Gjervik said the vessel positions were established deliberately and were expected to generate returns during the second half.

“Much of the first half shortfall reflects positions we built deliberately and expect to profit from in the second half, and on top of that we had three vessels held up in the Persian Gulf, all now safely out,” Gjervik said.

He added that the company’s portfolio entering the second half gave management confidence in the full year outlook.

“The book of cargo, tonnage and derivative commitments we are carrying into the second half is stronger than a year ago and gives me real confidence,” he said.

The result leaves Western Bulk dependent on the stronger market indicated by forward curves translating into profitable physical and financial trading outcomes. Its expanded vessel exposure can increase earnings when freight rates strengthen, but the same positioning contributed to the weaker performance reported for the first six months.

Western Bulk’s board decided not to declare a dividend for the second quarter of 2026. The decision follows the first half loss and comes as the company carries its commercial positions into the stronger market anticipated for the remainder of the year.

Management did not provide a specific full year profit target or guidance range. It said only that the length established during the first half, together with the improvement in dry bulk forward markets, supported its expectation of a profitable full year.

Gjervik and Chief Financial Officer Kenneth Thu will present the first half results to investors during a digital meeting scheduled for 14:00 CET on Monday, August 17. Registration is available through the investor relations section of the company’s website.