In a year dominated by pandemic and lockdowns, Western Bulk is very satisfied to post significant improvements with second half year net profit of USD 6.1 million, and full year net profit of USD 3.2 million.
During the second half of 2020 we continued to implement our strategy to seek trading excellence, operational excellence and data driven decision making. Combined with an improved market, good choice of trade patterns and lower costs, this led to a Net TC of almost USD 19 million and net profit of USD 6.1 million for the second half of the year.
During the period, the dry bulk market started its recovery from lockdowns and disruptions, with the Baltic Supramax Index gaining 70% from the first half of the year to an average of USD 10,327/day in the second half. Full year 2020 averaged at USD 8,242/day, down 17% from USD 9,948/day in 2019, due to the impacts of COVID-19.
The start of the year has seen significant increases in rates, with January reaching a high of almost USD 13,000/day. There is a general market expectation that 2021 will be a year with a higher market than has been seen over the last few years. As the negative impacts and uncertainty related to COVID-19 is getting more under control, Western Bulk is gradually increasing the volume of vessels from a historically low level in 2020. With a new tonnage function in place, the company has increased period activity and is seeing positive impacts from our work to build relationships with core vessel owners and cargo customers. The new commercial teams are also settling in, and we are starting to see significant value from increased cooperation across teams. Combined with enhanced focus on operational excellence and data driven decisions, there is an expectation of positive development going forward.
The company has also delivered on its target of achieving USD 4 million in cost savings during 2020, with full year administrative expenses excluding bonus down by USD 4.5 million from the previous year. In addition to this, savings have also been achieved as planned for operational costs included in Net TC, as well as for financing costs.
In the context of the Covid-19 supply chain and market disruptions encountered throughout 2020, I am very pleased with the good results our dedicated employees have achieved," states Hans Aasnæs, CEO of Western Bulk.
For more information, please see the link below for the full second half report 2020.
For more information, please contact:
Hans Aasnæs, Chief Executive Officer
Tel: +47 922 53957