Dividend and market update for third quarter

10 Oct 2024 18:02 CEST

Coming out of summer, the group held a significant long position, primarily in
tonnage positioned in the Atlantic basin. However, the anticipated seasonal
market push in Atlantic failed to materialize.

The Supramax dry bulk market experienced unusually low volatility, marking a
departure from the typical seasonal fluctuations seen during this period. The
Baltic Supramax index started the quarter at 15,237 USD/day and ended the
quarter down 892 USD to end at 14,345 USD/day. Due to weakening Atlantic
fundamentals, the front haul rates experienced a particularly challenging
quarter.

A key factor holding back the Supramax market was the softening Panamax rates,
as many cargoes that would typically be handled by Supramax vessels were instead
taken up by cheaper Panamax vessels, particularly in the Atlantic. Key
contributing factors to the weak Panamax rates were low congestion levels and
shorter distances traveled with weaker long haul Brazilian grain exports.

While overall freight rates remain relatively high, supported by geopolitical
factors that are maintaining ton-mile demand, the outlook is increasingly
uncertain. Weaker soybean demand from China and sluggish European industrial
activity has kept the Atlantic market from gaining its usual momentum where it
typically outperforms the Pacific significantly in Q4. Consequently, the group
has reduced its outright long exposure and is tactically managing its Atlantic
fleet to recover costs from earlier backhaul voyages, while maintaining exposure
to a potential late upturn in the Atlantic, which historically peaks
mid-December. The group´s overall position going into Q4 is thus flat to short,
reflecting the bearish sentiment.

Following the appointment of Torbjørn as CEO from 1st of September, an
initiative has been established to improve competitiveness. As part of this, the
organization has been fine-tuned to lower the Group´s cost base. This is
expected to lower the company´s general and administration costs (G&A) by about
3 mUSD to about 22 mUSD annually starting from 2025.

The Board of Directors has decided not to declare a dividend for Q3-24. Any
dividend for the fourth quarter of 2024 will be announced in February 2025
together with publication of the second half year report.


Contacts
For more information, please contact:
Torbjørn Gjervik, Chief Executive Officer
Tel: +47 940 28211
E-mail: torbjorn.gjervik@westernbulk.com

Kenneth Thu, Chief Financial Officer
Tel: +47 988 74302
E-mail: kenneth.thu@westernbulk.com

About Western Bulk Chartering:
Western Bulk is a global dry bulk operator and derivatives trader registered on
Euronext Growth in Oslo. Propelled by an entrepreneurial spirit, we combine
in-depth maritime knowledge with trading expertise. Through combining advanced
risk management, extensive use of market data, analytics to optimize fleet
deployment and vessel-cargo matching, we offer tailor-made solutions serving our
customers´ needs.
See westernbulk.com for more information.

Disclaimers
This press release contains forward-looking statements. Forward-looking
statements are statements that are not historical facts and may be identified by
words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “will,”
“may,” "continue," “should” and similar expressions. The forward-looking
statements in this release are based upon various assumptions, many of which are
based, in turn, upon further assumptions. Although Western Bulk Chartering
believes that these assumptions were reasonable when made, these assumptions are
inherently subject to significant known and unknown risks, uncertainties,
contingencies and other important factors which are difficult or impossible to
predict and are beyond its control. Such risks, uncertainties, contingencies and
other important factors could cause actual events to differ materially from the
expectations expressed or implied in this release by such forward-looking
statements.

The information, opinions and forward-looking statements contained in this
release speak only as at its date and are subject to change without notice
Western Bulk Chartering disclaims any obligation to update and revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

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