Western Bulk publishes Annual Report 2018 and announces guaranteed equity increase and repayment of bond
Today Western Bulk has published its 2018 Annual Report without changes from the preliminary results published on January 24, 2019. The Group posted a profit after tax of USD 4.2 million in 2018, in line with 2017.
To ensure a strong financial platform and support further growth, the Company has secured new debt financing and will raise USD 15 million in equity guaranteed by the two main shareholders (Kistefos AS and Ojada AS). The NOK 300 million bond with NOK 271 million outstanding will be repaid in full, allowing for a more optimal financial structure.
Commenting on the transaction, Jens Ismar, CEO of Western Bulk said, "This is a very good solution for the Company. With the continued strong support from our main shareholders and a business model mostly focused on short term commitments we are well positioned to utilize the current market volatility to our advantage”.
During the first months of 2019 the Company has repositioned the tonnage portfolio in light of a lower market, combined with utilizing the market volatility to capture arbitrage opportunities. The first half of 2019 will be impacted by a delayed market recovery combined with contracts in Chile running into the first quarter of 2019, while preparations for the IMO 2020 sulphur cap is expected to provide opportunities in the second half of the year.
For more information, please contact:
Jens Ismar, Chief Executive Officer
Tel: +47 9009 0897