Interim report
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FINANCIAL REPORT · H1 2026 First Half Year Report2026WESTERN BULK CHARTERING AS · OSLO · 30 JUNE 2026
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01// KEY FIGURES & HIGHLIGHTS WESTERN BULK Positioning for a profitable full year 2026 Western Bulk Chartering Group · H1 2026 NET RESULT AFTER TAX · USDm −6.6vs H1'25 −2.1 AVAILABLE CASH · USDm 17.3vs H1'25 29.3 NET TC / SHIP DAY · USD 1) 2) 247vs H1'25 383 BOOK EQUITY · USDm 42.4vs H1'25 47.7 G&A · USDm 11.6vs H1'25 9.8 AVG SHIPS OPERATED 116vs H1'25 110 COMMENTS TO THE RESULTSFor the first half of 2026, Western Bulk recorded a net loss after tax of USD 6.6 million, compared with a net loss of USD 2.1 million in the first half of 2025.Adjusted Net TC result was USD 5.2 million¹,2(H1 2025: USD 7.6m¹,2) and Net TC per ship day was USD 247, down from USD 383. Western Bulk used the first half of the year to build length and position vessels to benefit from a dry bulk market where the forward curves in H2 to date have already increased materially. This had a negative impact on the first half but is expected to have a positive impact on the full year results. Investments in repositioning vessels from the Pacific to the higher paying Atlantic Ocean is a key reason for weaker results in H1-26 compared to last year.During the period three vessels were held up in the Persian Gulf, all of which have now safely exited the Strait of Hormuz. The situation has nonetheless weighed on the first-half 2026 results and contributed to the net loss. Western Bulk remained obligated to continue paying hire on the three affected vessels throughout the delay and incurred additional insurance cost related to the heightened risk situation in the region.Administrative expenses were USD 11.6 million (H1'25: 9.8). The increase was mainly due to inflation and foreign exchange with stronger NOK vs USD, combined with strengthening of the chartering teams, and establishing of offices in Antwerpen and Bergen.Gross revenues rose to USD 564.2 million (H1'25: 499.8). The average fleet increased to 116 vessels (H1'25: 110).Available cash was USD 17.3 million, down from USD 29.3 million in H1 2025 due to the negative result and USD 4.3 million in dividend paid for FY 2025. Book equity was USD 42.4 million at period end; total assets USD 138.4 million. 1) H1 2026 Net TC including USD +1.3 million gain and H1 2025 Net TC including USD -0.8 million loss on positional FFA's (Forward Freight Agreements) and bunker hedge. These are derivative positions not qualifying as a hedge, hence booked as financial items in the financial statements in section 3.2) Provision for future loss of USD 4.2 million from 2H 2024 is reversed in 1H 2025. FIRST HALF YEAR REPORT 2026 PAGE 2/13 WESTERNBULK.COM
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01// KEY FIGURES & HIGHLIGHTS WESTERN BULK Financing and company updateFINANCING AND AVAILABLE CASHAt the end of the first half of 2026, Western Bulk held USD 17.3 million in available cash and had no interest-bearing debt. Available cash decreased by USD 12.5 million during the first half (31.12.2025: USD 29.8 million) due to the negative result and USD 4.3 million in dividend paid for FY 2025. Book equity was USD 42.4 million (31.12.2025: USD 50.8 million).Western Bulk has two working-capital facilities with credit lines totalling USD 35 million —a USD 10 million bunker facility and a USD 25 million overdraft facility. Both facilities were undrawn as of 30.06.2026. During the perioda new USD 6 million Supply Chain Financing Agreement has been signed and is expected finalized in Q3 2026. The equity covenant for existing credit facilities has also been successfully lowered from USD 40 million to USD 30 million. COMPANY UPDATEDuring the first half of 2026, Western Bulk continued to strengthen its commercial platform through the establishment of two newspecialist teams. In Bergen, the Company launched a dedicated Lumber & Projects desk, expanding its capabilities within lumber, project and breakbulk cargoes. The new team complements Western Bulk's core dry bulk business and broadens its service offering in attractive niche markets.In Antwerp, Western Bulk established a new Steel Parcellingteam to re-establish its presence in the steel and bagged cargo segment. The team strengthens the Company's parcellingcapabilities and works closely with the Bergen office, creating commercial synergies while further diversifying Western Bulk's freight trading platform.The Board of Directors has decided not to declare a dividend for the second quarter of 2026. FIRST HALF YEAR REPORT 2026 PAGE 3/13 WESTERNBULK.COM
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02// DRY BULK MARKET HIGHLIGHTS WESTERN BULK Dry Bulk Market —H1 2026 Review & OutlookH1 2026 REVIEWThe dry bulk market delivered a stronger than expected first half of 2026, with both quarters outperforming initial expectations despite a mid-period dip in sentiment after the outbreak of the war between U.S.-Israel and Iran. Grain flows were the consistent backbone of demand throughout, with firm exports out of both the U.S. and East Coast South America (ECSA) providing steady support to the Atlantic basin.The year opened firmly, led by a particularly robust February that lifted overall earnings. Panamax earnings outperformed Supramaxthrough the early part of the half, as softer coal volumes weighed on geared vessels. At the same time, sustained high bauxite exports from Guinea supported Capesizedemand and tightened the overall vessel balance in the Atlantic. The onset of iron ore exports out of Simandoualso provided support to the Capesizemarket. Momentum faded briefly in March as geopolitical tensions escalated following U.S.-Israel strikes on Iran, with higher oil prices and rising uncertainty and softening freight rates.The market rebounded strongly through Q2, however. Grain remained the key theme, while a pick-up in Asian coal demand supported by a switch from gas to coal added fresh momentum. Middle East related supply disruptions, including slow steaming due to high bunker prices, bunker port congestion, and Panama Canal congestion, likely provided further support to rates. H2 2026 OUTLOOKWe are positive on the near-term outlook: current trade patterns are keeping tonne-mile demand elevated, the fleet remains less productive than usual on slow speeds and long port stays, and Atlantic tonnage is tight just as ECSA and USG have plenty of grain to load in the coming months. With the fleet running close to full utilisation, small shifts in either supply or demand have an outsized effect on rates. A strengthening El Niño later in the year could bring renewed drought restrictions at the Panama Canal, which would push rates higher still.Further out, we are more uncertain: we see a sizeable delivery schedule already contracted, questions around Chinese demand, and the potential for trade patterns to normaliseand productivity to recover, leading to a more efficient market. At the same time, tonne-mile demand from West Africa is expected to continue to support the market. SOURCE: WB MARKET RESEARCH & DERIVATIVES PAGE 4/13 WESTERNBULK.COM
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02// DRY BULK MARKET HIGHLIGHTS WESTERN BULK Baltic Supramax —H1 2026BSI 63 basis · as of 2026-06-30 · source: Baltic Exchange PAGE 5/13 WESTERNBULK.COM
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02// DRY BULK MARKET HIGHLIGHTS WESTERN BULK Baltic Panamax —H1 2026BPI 82 basis · as of 2026-06-30 · source: Baltic Exchange PAGE 6/13 WESTERNBULK.COM
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03// FINANCIAL STATEMENTS WESTERN BULK Consolidated Condensed Income StatementWestern Bulk Chartering Group · (USD 1,000)1H 20261H 2025FY 2025FY 2024Gross revenues 564 231499 7961 039 3721 269 663Voyage expenses −227 681−203 375−419 336−495 530T/C expenses −331 034−290 642−596 013−745 428Other vessel expenses −1 671−1 580−3 198−2 882Net T/C result 3 844 4 19920 82525 823Administrative expenses−11 577−9 789−22 075−26 600Result before dep., finance items & tax−7 734−5 590−1 250−777Provision for future loss - 1 404 1 404−1 404Depreciation −74 −96 −186 −172Gain/(loss) on disposal of property, plant and equipment- - −2 -Operating profit/(loss) −7 808−4 282−34 −2 353Financial income 377 730 1 295 1 542Financial expenses −269 −282 −739 −962Share of profit/(loss) from associates95 - −45 -Gain/(loss) positional FFA1 324 −592 2 858 2 800Gain/(loss) positional Bunker hedge6 −215 −215 -Provision for financial future loss- 2 842 2 842−2 842Realised gain/(loss) on financial assets- - −16 -Net profit before tax −6 275−1 7995 947−1 813Income tax expense −283 −262 −572 −935Net result for the period−6 558−2 0615 375−2 748 FIRST HALF YEAR REPORT 2026 PAGE 7/13 WESTERNBULK.COM The USD 0.3 million income tax expense for H1 2026 is mainly tonnage tax, incurred by individual subsidiaries that were profitable in the period even though the Group posted a consolidated net loss.COMMENT
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03// FINANCIAL STATEMENTS WESTERN BULK Consolidated Condensed Balance SheetAs at30 June 2026 · (USD 1,000)30 JUN 2630 JUN 2531 DEC 2531 DEC 24ASSETSNon currentassetsDeferred tax asset9211 041908932Intangible assets7410489119Tangible fixed assets223311261345Investment in financial assets2 789-2 694-Total non currentassets4 0071 4563 9521 396Current AssetsBunker stocks63 63542 61739 12538 905Accounts receivable34 22516 51925 08934 544Other receivables4 1443 7731 7211 559Receivables derivatives-1 047-3 453Receivables EUA4 2273 2313 5163 572Bank deposits28 14036 02835 16834 162Total current assets134 371103 215104 619116 195TOTAL ASSETS138 378104 671108 571117 590 30 JUN 2630 JUN 2531 DEC 2531 DEC 24EQUITY AND LIABILITIESEquityShare capital205205205205Own shares−5---Share premium12 26712 26712 26712 267Retained earnings29 97735 20238 33837 264Total equity42 44447 67350 81049 736Long term liabilitiesDeferred tax liability355357Pension liabilities166280198261Total long termliabilities169335201318Current liabilitiesAccounts payable24 36618 21117 70615 188Other payable53 18837 80134 67350 487Proposed dividend--4 300-Payable derivatives17 786-209-Taxes payable3056515531 502Liabilities related company120-120360Total current liabilities95 76556 66357 56167 537Total liabilities95 93456 99857 76167 854TOTAL EQUITY AND LIABILITIES138 378104 671108 571117 590 COMMENTThe investment in financial assets of USD 2.8 million is related to the investment in MW & Partners 10 AS (Western Egda). The increase in bunker stocks and accounts receivables is related to increase in activity level (number of vessels), higher bunker prices and a stronger dry bulk freight market in general.Derivatives moved from a net receivable of USD 1.0 million 30 June 2025 to a net payable of USD 17.8 million 30 June 2026. This reflects mark-to-market valuation of the Group's forward freight agreement (FFA) positions, predominantly contracted at levels below the forward rates prevailing at the balance sheet date. FIRST HALF YEAR REPORT 2026 PAGE 8/13 WESTERNBULK.COM
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03// FINANCIAL STATEMENTS WESTERN BULK Changes in Equity, Shareholders and Share CapitalWestern Bulk Chartering AS · as at30 June 2026 · (USD 1,000 / shares)CHANGES IN EQUITYSHARE CAPOWN SH.SHARE PREMRETAINEDTOTAL EQJanuary 1, 2026205-12 26738 33850 810Bought own shares- −5-−1 803−1 807Result for the period- - -−6 558−6 558June 30, 2026205−512 26729 97642 444During the period, the Company bought back 893 611 own shares for a total of USD 1.8 million. The purpose of the acquisition was to use the shares in connection with the Company's employee share scheme. All the shares were subsequently sold on to employees after 30.06.2026. MAIN SHAREHOLDERSNAME # OF SHARESOWNERSHIP %Kistefos group 23 093 15268.7 %Sayonara AS 2 676 7928.0 %Citibank, N.A. 1 466 3764.4 %Øra Industrier AS640 0001.9 %Euroclear Bank S.A./N.V.463 4961.4 %Other (810 shareholders)5 279 89915.7 %Total 33 619 715100.0 % Kistefos group = Kistefos Equity Holdings AS + Kistefos Investment AS (23 093 152 shares). SHARE CAPITAL Nominal value per shareNOK0.05Registered share capital per 30.06.2026NOK1 680 986Registered share capital per 30.06.2026USD205 148Total shares issued as of 30.06.202633 619 715 SHAREHOLDING BY CEO AND BOARD OF DIRECTORSNAME # OF SHARESOWNERSHIP % CEO, Torbjørn Gjervik133 0260.4 %Chairman, Gunnar Jacobsen (GUJAC HOLDING AS)66 6660.2 %Total 199 6920.6 % FIRST HALF YEAR REPORT 2026 PAGE 9/13 WESTERNBULK.COM No other board members own shares.
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03// FINANCIAL STATEMENTS WESTERN BULK Consolidated Condensed Statement of Cash FlowWestern Bulk Chartering Group · (USD 1,000)1H 20261H 2025FY 2025FY 2024FY 2023CASH FLOW FROM OPERATIONSProfit/(loss) before tax−6 275−1 7995 947−1 813−14 079Taxes paid −550−1 206−1 538−1 473−1 916Ordinary depreciation 74 96 186 171 135Share of the (profit)/loss of associates−95 - 45 - -(Gain)/loss on disposal of assets- - 2 - 17Changes in current receivables and current liabilities5 9454 823−822−2 881−2 459Net cash flow from/(to) operating activities−9011 9143 820−5 996−18 302CASH FLOW FROM INVESTMENTSInvestments in fixed and intangible assets−20 −48 −74 −263−151Investment in associates- - −2 739- -Disposal of fixed assets- - - - 15Changes in long term receivables- - - - 43Net cash flow from investments−20 −48 −2 813−263 −93CASH FLOW FROM FINANCING ACTIVITIESChanges in interest-bearing short term and long termdebt - - - - −3Bought own shares −1 807- - - -Dividend paid −4 300- - - −10 000Net cash flow from financing activities−6 107- - - −10 003Net change in cash and cash equivalents−7 0281 8661 007−6 259−28 398Cash and cash equivalents at start of the period35 16834 16234 16240 42168 818Cash and cash equivalents at end of the period28 14036 02835 16834 16240 421Restricted bank deposits at end of the period10 8296 7665 3615 7417 531Available cash and cash equivalents at end of the period17 31129 26229 80728 42132 890 FIRST HALF YEAR REPORT 2026 PAGE 10/13 WESTERNBULK.COM
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03// FINANCIAL STATEMENTS WESTERN BULK Selected explanatory notesNOTE 1 · GENERAL INFORMATIONWestern Bulk Chartering AS is a private limited company incorporated and domiciled in Norway, with its registered office at Henrik Ibsens Gate 100, 0255 Oslo. WB Chartering is a major operator in the dry bulk shipping market, chartering primarily Panamax, Supramax/Ultramax and Handysize vessels, running an average fleet of 116 vessels in the first half of 2026. This report was authorised for issue by the Board of Directors as of 14.08.2026. NOTE 2 · ACCOUNTING POLICIESThe consolidated condensed financial statements are prepared in accordance with Norwegian Generally Accepted Accounting Principles (N-GAAP) and NRS 11. Refer to the 2025 annual report for a detailed description of the accounting policies (available at www.westernbulk.com). NOTE 3 · SIGNIFICANT JUDGEMENTS AND ESTIMATESThe preparation of the Group's consolidated condensed financial statements requires management to make judgments, estimates and assumptions. These estimates are based on the actual underlying business, its present and forecast profitability over time and expectations about external factors such as dry bulk shipping freight rates, interest rates, foreign exchange rates, oil prices and more which are outside the Group's and parent company's control. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.The Group is involved in several disputes, including lawsuits, both as defendant and plaintiff. Based upon the Group's own viewsas well as opinions received from lawyers, provisions based on the best estimate have been made in respect of the Group's total exposure. The actual outcomes of these disputes are unknown, and it could take several years before the disputes and claims are finally settled. Consequently, there are uncertainties related to the estimates for provisions which, depending on the outcome of each case, could prove to be insufficient to cover potential liabilities. NOTE 4 · RESTRICTED CASHAs of 30.06.2026, USD 10.1 million of the restricted deposits was tied to deposits in favor of clearing houses. USD 0.6 million was pledged in favor of DNB Bank ASA as security for the bunker facility, and USD 0.1 million was posted as security for USDNOK FX hedges. The increase in restricted cash is due to increased deposits in favor of clearing houses related to the derivatives portfolio. FIRST HALF YEAR REPORT 2026 PAGE 11/13 WESTERNBULK.COM
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04 // BOARD DECLARATION WESTERN BULK The Board of DirectorsOslo, 14 August 2026 · The Board of Directors of Western Bulk Chartering AS Gunnar JacobsenChairmanBetina NygaardBoard memberEspen ÅbøBoard memberOtto Moltke-HansenBoard memberUlrika LaurinBoard member DISCLAIMERThis report includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Western Bulk Chartering AS and its subsidiaries and affiliates (the "Group") lines of business. Theseexpectations, estimates, and projections are generally identifiable by statements containing words such as "expects," "believes," "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will bemajor markets for the Group's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although the Group believes that its expectations and the information in this release were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this release. Neither Western Bulk Chartering AS nor any other company within the Group is making any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the informationinthe release, and neither Western Bulk Chartering AS, any other company within the Group nor any of their directors, officers oremployees will have any liability to you or any other persons resulting from your use of the information in the release. Thisrelease speaks of the date hereof and Western Bulk Chartering AS undertakes no obligation to publicly update or revise any forward-looking information or statements in the release, other than what is required by law. The Group consists of many legallyindependent entities, constituting their own separate identities. Western Bulk Chartering AS is used as the common brand or trademark for most of these entities. Western Bulk's main risk factors are described in Western Bulk Chartering's annual report for 2025, available at www.westernbulk.com. FIRST HALF YEAR REPORT 2026 PAGE 12/13 WESTERNBULK.COM
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