Norwegian shipowner Westfal-Larsen took a bath with its bulker portfolio in 2019, but estimates show the tradition-rich shipowner is benefiting strongly from the firming dry cargo market.
Parent holding company Skibsaktieselskapet Navigation conducted a massive write-down of its bulker fleet two years ago.
And it has not reversed this move in spite of the massive upturn in the market late last year and so far in 2021.
According to estimates by UK-based online platform VesselsValue, the market value of Westfal-Larsen's bulker fleet increased by more than 66% to around $203m in the first half of 2021.
Chief executive Ulrich Muller told Norwegian daily newspaper Finansavisen that the dry bulk market has not been as strong as it is now since 2008.
Last year, Westfal-Larsen's fleet of open-hatch vessels was reduced from 18 to 16 ships through a sale of the 50,000-dwt Mobilana and Mariana (both built 1998) to Norwegian owner Grieg Star for $5m each. Today the same vessels are likely worth more than $7.5m each.
On the shipping side, privately owned Westfal-Larsen is involved with chemical tankers in addition to its fleet of open-hatch bulkers.
The bulkers are involved in industrial operations through pool company Saga Welco, where Japan's NYK is the other dominating partner.
Back to Bergen
Until last year, the dry cargo fleet was run by Singapore-based subsidiary Masterbulk, set up in 1995 in reaction to taxation of shipowners in Norway. Masterbulk was moved to Bergen last year.
Skibsaktieselskapet Navigation last year had a pre-tax loss of $5.7m, an improvement from a $58.1m loss a year earlier. The operating profit dropped from $140.3m to $139.4m.
The company had book equity of $361m at the end of last year.
Westfal-Larsen also owns a fleet of eight chemical tankers that are mostly fixed out on time-charters to Canadian methanol company Methanex.
Shipping veteran Muller was appointed chief executive of Skibsaktieselskapet Navigation in June last year. He was CEO of Oslo-listed ultramax specialist Belships from 2011 to 2019.
Westfal-Larsen is also involved in real estate, technology companies and the grocery business.
The firm dates back to 1905 and is controlled by Rolf Westfal-Larsen Jr and his family.
