Western Bulk Chartering (WEST) H2 2024 earnings summary

Executive summary

• Full year 2024 net loss after tax was USD -2.7 million, including USD -4.2 million in provisions for contracts into 2025 and USD 1.1 million in redundancy costs; adjusted net profit was USD 2.6 million.

• Net TC margin per ship day rose to USD 517 for 2024 from USD 202 in 2023, with an average fleet of 129 vessels.

• No dividend declared for Q4-24; two new independent board members appointed in November.

Financial highlights

• Gross revenues for 2024 were USD 1,269.7 million, up from USD 1,117.6 million in 2023.

• EBITDA for 2024 was USD -2.2 million, improved from USD -15.8 million in 2023.

• Net profit (loss) after tax for 2024 was USD -2.7 million, compared to USD -15.6 million in 2023.

• Administrative expenses increased to USD 26.6 million in 2024, mainly due to redundancy costs.

• Free cash at year-end was USD 28.4 million, with no outstanding interest-bearing debt.

Outlook and guidance

• G&A costs expected to decrease to around USD 22 million in 2025 following organizational downsizing.

• Dry bulk market outlook for 2025 is pessimistic due to high vessel deliveries and reduced inefficiencies, with rates expected to be significantly lower than 2024.

• Grain exports from Continent-Mediterranean expected to be lower in H1 2025, partially offset by strong Brazil soybean exports.