• Net loss after tax of US$2.3 million due to one-off costs
• Excluding one-off costs, net profit of US$2.8 million
• Significant operational improvements with margin expansion

For the half-year ended 31 December 2024, Wellard Ltd (ASX: WLD) reports a net loss after tax of US$2.3 million, primarily due to the US$5.1 million one-off costs associated with the acquisition of full and unencumbered ownership of the M/V Ocean Drover. Excluding these extraordinary costs, Wellard would have achieved a net profit of US$2.8 million, reflecting substantial operational improvements. This improvement is evident in margin expansion, with Gross Profit Margin rising from 8.8% to 39.7% and Operating Profit Margin increasing from 17.6% to 29.8%. Despite a 21.5% decline in revenue, driven by the reduction in fleet size following the sale of M/V Ocean Ute and redelivery of M/V Ocean Swagman, cost reductions more than offset this decline, resulting in a 252% increase in gross profit. Key cost reductions included a 48.8% decline in bunker expenses, a 42.1% drop in port costs, an 18.7% reduction in operating expenses, and the complete elimination of Time Charter costs. EBITDA from continuing operations grew by 32.7% to US$4.2 million, resulting in an operating profit margin increase to 29.8%, a significant improvement from 17.6% in H1 FY24.

There is no change in the outlook provided by Wellard in August 2024. The market fundamentals in all four markets where Wellard has operated developed as expected and there is no change in any of these four markets that necessitates a change in our outlook. Most importantly for shareholders, Wellard is operating just one vessel, which is fully contracted for the remainder of FY25 on the South America to Türkiye route. At the conclusion of those charters, in July 2025, it will be delivered to its Buyers, provided the sale of the vessel is endorsed by shareholders at a General Meeting to be held in the interim period.