Western Bulk Reports Stronger 2024 Performance and Forecasts Lower Costs for 2025

Western Bulk improved its trading performance (Net TC) from $15 million to $24.4 million in 2024 while restructuring the business to lower the annual G&A costs by 15 % to $22 million going forward. 

Excluding one-offs from restructuring and provisions, the net result was $2.6 million and Net TC $28.6 million. The net result for the entire year of 2024 ended at $-2.7 million.  

“We have improved our business in 2024 and will improve it further in 2025. Although we expect challenging market conditions in the first half of 2025, I am confident we will show good profitability this year”, Torbjørn Gjervik, CEO of Western Bulk. 

The second half of 2024 saw record-low market volatility, limiting trading opportunities. The Group utilized the strong steel export out of China to position tonnage into the Atlantic basin at a relatively low cost. The risk-reward of this strategy was found to be good at the time of initiation. Regrettably, the anticipated seasonal market push in the Atlantic failed to materialize, limiting gains from the position. 

“Our basic business of serving our customers in the spot market should always be profitable; however, in today’s competitive operator market, you also need to take some positions to make real gains. You take those positions when your data and market knowledge tell you the risk-reward is in your favor. With our people, experience, data, and systems, we will over time win more than we lose on this strategy, in that we are confident”, explains Torbjørn Gjervik 

The Group ended the year with $28 million in free cash and no outstanding interest-bearing debt. 

“With a strong cash position and an ongoing focus on performance culture, we are ready to capitalize on opportunities as we expect to see increased market volatility in 2025”, states Torbjørn Gjervik.