Oslo-listed Western Bulk is expecting a record first quarter result in markets that have stayed volatile. The company is forecasting net profit of between $18m and $20m to 31 March. The supramax operator explained it had used “continued high market volatility, both in respect of total market levels and relative levels between the Pacific and Atlantic basins”. This meant the start to the year had been very good, Western Bulk said. “The company has also managed to limit negative impacts from the Russian invasion of Ukraine,” it added.

The Baltic Exchange’s supramax index started the year at about $24,000 per day, before falling close to 30% and bottoming out at about $17,000 in early February. Since then, the market has increased by more than 90% to current levels of about $33,000, the firm said. “The spreads between the Atlantic and Pacific basins have also seen significant volatility which has benefited Western Bulk,” the operator added.

The company is expecting this volatility to reduce somewhat over the rest of the year. From the second quarter, profit should be lower than in the first three months, it said. Western Bulk logged $72.1m in net profit for the second half of 2021, more than eleven times the $6.1m it booked during the same period in 2020.

A shake-up in the corporate culture and trading patterns helped the group finish strongly, allowing it to kick-start dividend payments, TradeWinds reported. The board is proposing a pay-out for 2021 of $65m. The company has said it intends to implement a quarterly dividend policy of a minimum 80% of earnings after the first quarter of 2022.