Western Bulk Chartering AS has posted a net loss of USD 2.1 million for the first half of 2025, citing lower freight rates, subdued coal and grain demand, and geopolitical uncertainty as key pressures on performance.
The Oslo-based dry bulk operator generated a Net TC result of USD 7.6 million across an average fleet of 110 vessels, compared to USD 15.1 million in the same period of 2024. Net TC margin per ship day fell sharply to USD 383 from USD 626 a year earlier.
EBITDA for the period was negative at USD -2.2 million, while gross revenues declined 23% year-on-year to USD 499.8 million. The results contrast with the company’s net profit of USD 2.5 million in H1 2024.
Market downturn weighs on earnings
The dry bulk sector faced significant headwinds in the first half of 2025. The Baltic Supramax Index (BSI) averaged USD 11,243 per day, down 30% year-on-year, while the Baltic Panamax Index (BPI) dropped 33% to USD 10,701 per day.
Chinese coal imports fell by nearly 19% compared to 2024, driven by increased domestic production and government preference for internal supply. This cut into demand for Panamax and Supramax tonnage in the Pacific, further depressing freight rates.
Meanwhile, European grain exports remained weak following poor harvests and restrictive policies from Russia, reducing activity in the Atlantic basin. At the same time, fleet expansion continued, with Ultramax deliveries growing about 12%, expanding the geared bulker fleet by roughly 4.5%.
Cost savings provide partial relief
Despite weaker revenues, Western Bulk reduced administrative expenses to USD 9.8 million from USD 12.8 million in H1 2024, reflecting cost-saving measures introduced last year.
The company also benefitted from USD 3.1 million in Net TC from the sale of Western Fuji and Western Singapore, though this was not enough to offset market-driven losses.
Western Bulk ended the half-year with USD 29.3 million in free cash and no interest-bearing debt. Total cash stood at USD 36 million, up from USD 22.5 million a year earlier. The company’s total assets were valued at USD 104.7 million, with equity of USD 47.7 million.
Geopolitical uncertainty clouds outlook
The dry bulk market was further unsettled by the U.S. tariff package announced on “Liberation Day” in early 2025, which triggered uncertainty across global trade. While actual volumes remained steady, sentiment and forward freight agreement (FFA) curves weakened significantly.
The company noted that performance improved in the second quarter as it positioned net short through FFAs and physical cargoes, partly mitigating exposure from period vessels fixed at higher 2024 market levels.
Looking ahead, Western Bulk expects seasonal improvements in the second half of 2025. A rebound in EU grain harvests, stronger Black Sea exports, and continued South American corn and soybean shipments are forecast to support Supramax and Panamax earnings in Q3. However, Chinese import weakness and ongoing fleet growth remain downside risks.
The Board of Directors, chaired by Bengt A. Rem, confirmed that no dividend will be declared for Q2 2025. Espen Åbø joined the board in June, replacing former member Ørjan Svanevik.
