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Western Bulk Nets USD 4.5 Million from Vessel Sale

Western Bulk Chartering AS (Western Bulk, OSE) has announced a significant milestone with the sale of their 2019-built ultramax vessel, the Western Oslo, realizing a net profit of approximately USD 4.5 million. This profit stems from the exercise of a purchase option, highlighting the company’s strategic foresight and adept market navigation.

“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,” remarked Ørjan Svanevik, interim Chief Executive Officer and Board member of Western Bulk.

Western Bulk’s strategic decision to sell the Western Oslo to an undisclosed buyer showcases their ability to seize market opportunities. The transaction is set to be finalized in the third quarter of 2024, with confidentiality agreements surrounding the finer details. Nevertheless, the anticipated profit of around USD 4.5 million will be a significant addition to the company’s financials.

Jørgen Veie-Rosvoll, Head of Period Tonnage in Western Bulk, emphasized the importance of market timing in this deal. “The second-hand market for 5-year-old eco ultramax vessels was approximately USD 3.5 – 4.5 million 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.”

This sale not only underscores Western Bulk’s strategic prowess but also their ability to adapt and thrive in fluctuating market conditions. Their asset-light business model, which focuses on leveraging market conditions and optimizing vessel purchases and sales, continues to be a cornerstone of their success. The company is actively reviewing other purchase options within their trading book, indicating a forward-looking approach to market engagement.

Western Bulk’s ability to generate significant profits from strategic sales like the Western Oslo reinforces their reputation in the maritime industry. The company’s keen market insights and flexible business model make them a formidable player, capable of navigating and capitalizing on market cycles effectively.

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