Western Bulk generated a record net profit after tax of USD 28.6 million in the second half of 2022 and full year profit of USD 66 million from USD 1.6 billion in gross revenues.
For the second half of 2022, Western Bulk generated a net profit after tax of USD 28.6 million, reaching a full-year net profit after tax of USD 66.0 million. That is the second-best full year result in the company’s history, only outperformed by last year’s net profit after tax of USD 81.0 million for the full-year of 2021.
Entering the second half of 2022, Supramax market rates were at about 25.200 USD/day and declined more or less continuously over the six-month period, ending the year at about 10.600 USD/day. With focus on good craftsmanship, and by trading the short-term market, Western Bulk managed to utilize the market decline by covering cargo commitments with vessels at lower rates. In particular spot arbitrage trading did well, as decision-making has been improved through the use of data combined with good cooperation between regions.
The high market volatility measured in USD as seen in 2021 and 2022 has come down as rates have declined. Currrent Supramax spot rates are at about 7.500 USD/day, and the global dry bulk market is expected to face continued headwinds in the near term before starting another upward cycle towards the end of 2023. The company therefore anticipates lower results in the first half of 2023 compared to the second half of 2022.