Wellard Posts FY2025 Profit, Sells Last Vessels, Plans ASX Delisting and Capital Returns

A Year of Transition and Profitability

Wellard Limited has closed its 2025 financial year with a notable turnaround, reporting a net profit after tax of US$1.3 million. This result includes a significant one-off expense of US$5 million incurred to secure full ownership of its flagship vessel, the M/V Ocean Drover. Excluding this non-recurring cost, the company’s underlying net profit would have been US$6.3 million, underscoring a strong operational performance despite a reduced fleet.

The company’s strategic decision to downsize its shipping operations culminated in the sale of its last two livestock vessels. The M/V Ocean Ute was sold in September 2024 for US$12 million, while the M/V Ocean Drover was sold in August 2025 for US$50 million to Meteors Shipping S.A., a Marshall Islands entity controlled by a longstanding Turkish agribusiness partner. These sales mark the end of Wellard’s active shipping operations, transitioning the company away from its traditional live export logistics business.

Operational Excellence Amid Fleet Reduction

Operationally, Wellard maintained a remarkable 99.66% success rate in cattle delivery, with no reportable livestock mortality incidents during the year. This achievement reflects the company’s dedicated focus on animal welfare, voyage planning, and vessel management, which has been integral to securing competitive voyages, particularly in the South American to Türkiye trade routes.

Cost efficiencies were also a highlight, with bunker fuel expenses, the company’s largest operational cost, falling by 46% to US$8.1 million. This reduction was driven by a smaller fleet and lower fuel consumption, despite fuel prices remaining high by historical standards. Port and operating expenses similarly declined, contributing to a 146.7% increase in gross profit to US$10.9 million and a 144% rise in operating profit margin to 28.7%.

Financial Position and Shareholder Returns

Wellard ended FY2025 with US$15 million in cash and cash equivalents and negligible debt, having fully repaid all ship-related borrowings. The company returned A$0.02 per share to shareholders in December 2024 following the sale of the M/V Ocean Ute, and a further A$0.15 per share in August 2025 after the sale of the M/V Ocean Drover. These capital returns total A$0.17 per share, with plans for additional distributions pending shareholder approval at the upcoming AGM.

With the sale of its last revenue-generating asset, Wellard’s Board is preparing to seek shareholder and ASX approval to delist the company. The Board intends to retain sufficient cash to cover operating costs for up to three years as an unlisted public company while pursuing potential financial benefits from the ongoing Brett Cattle Company class action against the Australian Government, to which Wellard is a claimant.

Navigating Risks and Future Prospects

Wellard faces a range of risks typical of international shipping and agribusiness, including regulatory pressures, market volatility, geopolitical tensions affecting trade routes, and animal welfare activism. The company has maintained compliance with all relevant regulations and continues to monitor these risks closely. The Board acknowledges the speculative nature of the company’s future given the cessation of shipping operations but remains cautiously optimistic about the potential outcomes of the class action and other opportunities.

As Wellard transitions to a new phase without active shipping operations, its focus will be on prudent capital management, shareholder value preservation, and exploring avenues to realise value from its remaining interests.