Western Bulk Returns to the Black
- Business & Finance
Dry bulk operator Western Bulk has availed of the recovery of the dry bulk market to bounce back to profit in the first half of 2018.
The company posted a profit after tax of USD 3.6 million, a strong improvement from the USD 2.1 million loss from the same period in 2017 and close to the full year 2017 profit after tax of USD 4.3 million.
“I am very pleased with the continued good performance of the Group underlining our ability to extract a margin from our unique business model” says Jens Ismar, Chief Executive Officer of Western Bulk Chartering.
As disclosed, activity increased throughout the period from 130 ships in December 2017 to 164 ships in June 2018, and Western Bulk operated an average of 146 ships.
The dry bulk operator is optimistic on the market’s outlook moving forward, supported by marginal demand growth in excess of supply.
“So far this year coal has been the main driver for growth but going forward iron ore is likely to give support to the dry market. The impending trade dispute between the US and China may lead to increased infrastructure spending, driving demand for steel and iron ore.
“This will primarily support the larger vessels. For the smaller vessels more dependent on other commodities the outlook is positive but more uncertain. The trade dispute might negatively impact the US grain export but can also lead to increased demand pending how trade routes develop,” the company said in its business report.