Western Bulk achieved a record first half year with net profit after tax of USD 37.4 million and declares dividend for Q222 of USD 13 million

15.08.2022





For the first half or 2022, Western Bulk generated a net profit after tax of USD 37.4 million and achieved the best first half year result in the company's 40-year history. This represents an increase of USD 28.4 million from the USD 9.0 million generated in the same period last year. Dividend for the first half year totals USD 29 million.

The exceptionally good start to the year comes as a result of good craftmanship with an agile approach to market volatility in combination with implemented strategic and operational initiatives. Key initiatives include investments to allow for more data driven decision making, and a more systematic approach to business development and client relationship management. In addition, cooperation between regions has been strengthened to improve decision making, as well as to capture a larger arbitrage potential from higher dry bulk market volatility.

The high market volatility seen in 2021 continued into 2022. With focus on trading the short-term market, Western Bulk managed to utilize this both in respect of total market levels and relative levels between the basins.

Historically the market has been higher in the second half of the year, offering increased opportunities on the back of seasonality. This is not expected to happen this year due to lower economic growth with the risk of several countries going into recession. Uncertainty related to Chinese demand is increased, spurred by troubles in the housing sector, as well as increased tension between China and the US regarding Taiwan adding to the negative sentiment. The Baltic Supramax Index has been declining for all forward periods throughout the summer, and with muted market levels overall volatility is expected to be lower. The company therefore anticipates lower results in the second half of 2022 compared to the first half of the year.

Based on the strong results for the first half of 2022, Western Bulk hereby declares a quarterly dividend of USD 13 million for the second quarter. Dividend per share is NOK 3,85 at USDNOK 9,95. The ex dividend date is 17th of August, record date is 18th of August and payment date is 25th of August.

Please see the attached first half year report 2022 for more information.

About Western Bulk Chartering:
Western Bulk Chartering AS is a major dry bulk shipping operator. The company is privately owned by Kistefos Group (68,7 %), Ojada AS (8,3 %) and a group of about 1100 other shareholders. See www.westernbulk.com for more information. Western Bulk Chartering AS is listed on Euronext Growth Oslo.

Western Bulk, press release