Western Bulk slides into the red

Western Bulk slumped to a loss in the third quarter of 2014 hit by mistimed chartered-in vessels.

Western Bulk reported a Q3 adjusted net loss of $12.5m, although for the first nine months of the year the company remained in the black with $3.7m profit.

The company’s net TC result for Q3 slipped to a loss of $700,000 compared to a $15.9m profit in Q2.

The company blamed the loss on a net long position on firm tonnage. “We saw a substantial drop in our Net TC result in Q3-14, as our net long position on firm tonnage proved to be mistimed in the current market,” said Jens Ismar ceo of Western Bulk.

Western Bulk reduced its chartered in fleet during the third quarter to 153 vessels from 161.

Looking to the fourth quarter the company said, “The Q4-14 net long position was somewhat reduced towards the end of the third quarter, but mostly at rate levels below the charter-in cost for the fleet, as the rate increase from August and onwards has not been strong enough to reach break-even levels.”
Source: Seatrade Global