Western Bulk has released its H2 2024 financial report, revealing a net loss of USD 2.7 million for the full year. The results include a USD 4.2 million provision for future losses on contracts extending into 2025, reflecting continued market uncertainties and strategic miscalculations.
The company’s gross revenues climbed to USD 1.27 billion for the year, up from USD 1.12 billion in 2023. Despite this revenue increase, Western Bulk’s net TC result for 2024 stood at USD 24.4 million, significantly better than the USD 9.3 million recorded in 2023 but still far from the robust USD 116 million of 2022. Market conditions, redundancy costs, and underperforming trades contributed to a constrained bottom line.
The company navigated turbulent market conditions, particularly in H2 2024. While an early strategy to position vessels in the Atlantic Basin for expected seasonal market gains seemed promising, the anticipated demand uptick failed to materialize. A combination of lower-than-expected long-haul grain shipments from the Atlantic to the Pacific and increased vessel availability within the Atlantic squeezed margins. Additionally, a sharp drop in Panamax rates exerted downward pressure on Supramax earnings.
Western Bulk’s administrative expenses increased to USD 26.6 million for 2024, compared to USD 25.1 million in the previous year. This includes USD 1.1 million in costs related to workforce reductions, part of an effort to streamline operations. With these measures in place, the company expects general and administrative costs to drop to around USD 22 million in 2025.
The firm ended the year with a solid liquidity position, reporting USD 28.4 million in free cash, an improvement from USD 32.9 million in 2023. Western Bulk also confirmed it had no outstanding interest-bearing debt and access to USD 35 million in credit facilities, offering flexibility for future operations.
On the market front, H2 2024 proved difficult for the dry bulk sector. The Baltic Supramax Index (BSI) averaged USD 15,239 per day, down 6% from H1 2024, though 9% higher than H2 2023. The trans-Atlantic freight market underperformed expectations, with fronthaul rates averaging USD 21,193 per day, a 16% drop from the first half of the year. Weaker grain exports from South America and Europe, coupled with improved efficiency in the Panama Canal, further weighed on rates.
Financial Summary Table:
| Metric | 2024 (USD) | 2023 (USD) |
|---|---|---|
| Gross Revenues | 1.27B | 1.12B |
| Net TC Result | 24.4M | 9.3M |
| Net Profit (Loss) | (2.7M) | (15.6M) |
| Administrative Expenses | 26.6M | 25.1M |
| Free Cash | 28.4M | 32.9M |
| Baltic Supramax Index Avg | 15,239/day | 16,166/day |
Western Bulk also announced leadership changes during the period. Henrik Synnes was named Head of Pacific/US West Coast, while Haavard Haaland took over as Head of Panamax. The company’s board saw the appointment of two new independent members, Ulrika Laurin and Betina Nygaard, in November. The board also decided against declaring a dividend for Q4 2024.
Looking ahead, the company expects further headwinds in H1 2025, with a continued downturn in vessel earnings. An expected drop in grain exports from Europe due to poor harvests is likely to dampen Atlantic rates, while the geopolitical situation in the Red Sea remains an unpredictable factor. Nonetheless, strong Brazilian soybean exports in Q2 2025 could provide some relief, particularly for Panamax and Supramax vessels.
As Western Bulk heads into 2025, its strategic focus will be on cost discipline, cautious market positioning, and leveraging its liquidity buffer to weather ongoing market fluctuations. The coming months will be crucial in determining whether the company can regain profitability in an increasingly competitive and volatile dry bulk sector.
