After a weak second quarter result, Wester[ds_preview]n Bulk Chartering now has reported an improved TC result – from -5.4 mill. $ in Q2 2016 to 0.9 mill. $ in Q3. At the same time the operated fleet increased from 109 vessels in Q2 to 126 vessels on average in Q3 and was steadily increasing throughout the quarter, with 138 vessels operated on average in September.
To strengthen the book equity and cash positon of the Group, Western Bulk Chartering said they would raise 15 mill. $ in additional equity from existing shareholders in a private placement. The transaction is backed with a subscription and guarantee agreement from the two largest shareholders; Kistefos AS and Ojada AS, which are guaranteeing 13.8 mill. $ and 1.2 mill. $ respectively.
In connection with the equity transaction, the Group has requested the bond holders to approve certain amendments in the bond loan agreement. The request has already been pre-accepted by a majority of the bond holders, ahead of the bond holder meeting to be held on or about 15 December 2016 to approve the requested changes, WBC stated.
Western Bulk increases market presence
»I am pleased to see the positive development in our margins and the operated fleet. After an extremely challenging first half of the year, the business is moving in the rigth direction with good support from our business partners, shareholders and dedicated staff«, says Jens Ismar, Chief Executive Officer of Western Bulk Chartering.
The Group continues to increase its market presence, and has during the third quarter seen another three persons joining the United States Gulf business unit in Miami, Florida. In addition, an office in Morocco has been opened to support new business in the West Africa area. Both of these markets have great potential for the Group looking forward, it was said.
