https://newsweb.oslobors.no/message/568637
Godt utbytte dette kvartalet også.
https://newsweb.oslobors.no/message/576358
CFO kjøper seg opp, ikke stort, men det er vell et godt tegn på at pris per aksje er billig.
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Western Bulk is increasing volume and expecting a minor negative result for the first half of 2023. No dividend declared for Q1-23.
While Western Bulk had an extraordinarily good start last year, 2023 has been slower and more according to normal seasonality. The first quarter of the year is normally the weakest period. The lower market has been used to increase volume, currently up to about 130 vessel equivalents.
In addition, the company has made investments in repositioning of vessels and had a short position in a rising market for a limited time period. Although trading performance is expected to generate positive Net TC in the first half of the year, there is a risk that net earnings will be negative for the period.
“The forward value of existing contracts is positive and increased forward rates are likely to provide higher market volatility and more trading opportunities. Combined with repositioning of vessels and investments in volume, the outlook for the second half of the year is positive”, states Hans Aasnæs, CEO.
Based on the current results, the Board of Directors has decided that no dividend will be declared for Q1-23.
Kan være duket for oppgang her i morgen, om de viser til ett lite utbytte, bør kursen synliggjøres.
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WEST med dårlig halvår
Comments to the results
For the second half of 2023, Western Bulk generated a net loss after tax of USD -10.8 million, compared to a net profit after tax of USD 28.6 million for the second half of 2022. Net TC reached USD 2.3 million in the second half of 2023, down from USD 51.5 million in the same period in 2022. For the full year of 2023, the result after tax was USD -15.6 million, compared
to a net profit after tax of USD 66.0 million for 2022. Net TC for 2023 was USD 9.3 million, down from USD 116.0 million in 2022.
For most of the year, the company held a negative market view and was careful in taking on long exposure. Vessel owners required a premium to the forward freight market (FFA), while cargo was priced at a discount to the paper market (FFA).
This limited business opportunities and led to difficulties in securing physical tonnage without taking an outright long exposure at what was considered as inflated levels against the paper market (FFA). At times this led to short positions with an overweight of cargo commitments covered by more expensive vessels as the market increased more than expected. As
Western Bulk does not own vessels, financial results are not necessarily correlated with the overall market direction like for most vessel owners.
The company has also made investments in new trading areas to grow volume. The situation in the Panama-canal with restrictions and increased fees also had a negative impact on the second half year results.
The second half of 2023 saw two significant market spikes, the first in August and September, where the rates went from about 7,500 USD/day to peak at about 15,000 USD/day, and the second in November and December, with rates increasing from 12.000 USD/day to 17,000 USD/day. Both events had a negative impact on the Group given its a short position, and an overweight of cargo commitments had to be covered by more expensive vessels. The increased costs to pass through
the Panama Canal also had a somewhat negative impact on the results.
Net TC Margin per ship day for the second half of 2023 reached USD 100 compared to USD 2,576 for the same period in 2022, while Net TC per ship day for the full year of 2023 was USD 202 compared to USD 2,870 for 2022.
The average number of vessels in the second half of 2023 was 128 compared to 109 vessels for the same period in 2022. The average number of vessels for the full year of 2023 was 126 up from 111 vessels for the full year of 2022. Under the current market conditions the company has not been able to increase volume in line with its ambitions. The aim is still to grow organically within new segments and trading patterns, but it is expected to take time to limit the risk and required
investments.
Administration expenses decreased to USD 12.9 million in the second half of 2023, from USD 22.9 million for the second half of 2022, and decreased to USD 25.1 million for the full year of 2023 from USD 47.6 million in 2022. The decrease was mostly due to lower bonus accruals.
H2 2023 Financial Report.pdf (1,8 MB)