Western Bulk Chartering As · OSL:WEST
Western Bulk Chartering As — H1 2024 Earnings Presentation
16 slides from Western Bulk Chartering As's earnings presentation, Aug 20, 2024
Slide 1: H1-24 Financial Update
H1-24 Financial Update August 20, 2024
Slide 2: Disclaimer
Disclaimer The information in this presentation does not constitute an offer to buy, subscribe or sell any of the securities described herein, and no securities are being offered or sold pursuant hereto. The contents of this presentation shall not be construed as legal, business or tax advice. Weste
Slide 3: Global dry bulk operator & derivatives trader
Global dry bulk operator & derivatives trader 60-70% basic 20-30% position taking 10% algo based without transportation & derivatives trading prop trading steel ownership • Providing value to • Short & longer term vessel contracting, • Active FFA trading in cargo customers and all dry bulk vessel ve
Slide 4: Solid financials with total profit of 125 MUSD and dividend of 114 MUSD since IPO
Solid financials with total profit of 125 MUSD and dividend of 114 MUSD since IPO in 2021 USD MILLION H1 2024 FY 2023 ACC SINCE IPO* • H1-24 profit of 2.5 MUSD and Net TC of 15 MUSD while investing in repositining of vessels into the Atlantic basin and growing the Panamax portfolio Gross revenues 64
Slide 5: Asset light, debt free and available liquidity of 48 MUSD
Asset ligth, debt free and available liquidity of 48 MUSD Balance Sheet and cash H1-24 • Free cash of 12.7 MUSD and debt free USD MILLION 30.06.24 31.12.23 30.06.23 Non-current assets 0.8 0.7 0.6 • Available liquidity of 47,7 MUSD including Bunker stocks 50.1 52.6 56.6 undrawn bank facilities totali
Slide 6: Working capital increased by about 18 MUSD since 31.12 due to higher volume
Working capital increased by about 18 MUSD since 31.12 due to higher volume and more physical working capital per vessel • Volume increase from 126 at the start of Physical working capital per vessel 450 000 the year to 141 in June 400 000 • Historically, physical working capital (WC) per vessel has
Slide 7: Summary 1H, 2024
Summary 1H, 2024 • Profitability restored at 2.5 MUSD • Panamax team fully in place, lead by Mohneesh Bhutani. Vessels increased from 6 to 16 • Total WB fleet growth from 126 to 141 vessels. Drives increase in working capital • New CEO, Torbjørn Gjervik, promoted from own organisation • Started as t
Slide 8: Diversified market exposure
Diversified market exposure Cargo Diversification H1 2024 • Limited exposure to specific customers, geographies or commodities Fertilizers 4% Other 2% Ferrous Ores Coal 30% • Operates within the smaller & medium size bulk vessels allowing for trade in a large number of 7% Steel Products commodities,
Slide 9: Global business presence provides market insight
Global business presence provides market insight Oslo South Atlantic & North Atlantic Seattle Providing competitive freight through local knowledge of the Pacific market, which combined with an efficient and flexible model allow for sharp pricing and arbitrage opportunities Dubai Indian Ocean Global
Slide 10: Typical trading positions
Typical trading positions Long exposure typically comes from taking ships on period time-charter. If Western Bulk for example hires a ship at a fixed rate of 10,000$/d the group will benefit from the freight market going up as the vessel will receive higher rate for employment than the cost of hire.
Slide 11: Position: As of now, long Atlantic to play seasonality
Position: As of now, long Atlantic to play seasonality • The group’s main position is a long Supra/Ultramax position in the Atlantic basin from August and throughout Q1’25 of above 4,000 days. • About 2,300 days of the group’s total position is optional length // 11
Slide 12: Key Supramax indexes (BSI)
Key Supramax indexes (BSI) The physical spot market The financial forward market (FFA) The regional markets The benchmark for the spot market The value of future freight rates, allowing The basin spread is a key indicator of the freight rate for dry bulk vessels, market participants to hedge against
Slide 13: Stress test for H2'24
Stress test for H2’24 • Western Bulk's stress test is a risk metric which quantifies the change in market value of the forward book given a 20/40% decrease/increase in overall market levels – i.e all indexes moving up/down. • As the group is net long, the market value will increase if the market rat
Slide 14: The Sale of Western Oslo
The Sale of Western Oslo • Call option strikable at the end of firm period (October 2022). Option expiry April 2025 • Terms and delivery agreed back-to-back with Buyers. • Net profits slightly more than USD 4.6m • Vessel sold for USD 31,6m gross of commissions to third parties. • Closing 14th August
Slide 15: Highlights
Highlights 01 1H profit of 2.5 MUSD 02 Increased fleet from 126 to 141 vessels through growth in the Panamax segment 03 Long position in the Atlantic basin from August and throughout Q1’25 of about 4,650 days, to take advantage of seasonal rate swings and basin spreads, as well as general rate uptic
Slide 16: Western Bulk
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