Wellard Plans ASX Delisting Amid Fleet Exit and Legal Uncertainty
Wellard Ltd posts a net profit turnaround in FY2025 despite fleet downsizing, sells its last vessel, and plans to delist from the ASX while returning substantial capital to shareholders.
- Net profit of US$1.3 million in FY2025 including a one-off US$5 million expense
- EBITDA up 87% despite 23% revenue decline due to smaller fleet
- Sale of last vessel M/V Ocean Drover completed with US$50 million proceeds returned to shareholders
- Board proposes delisting to reduce costs and maintain exposure to live export class action
- Shareholder vote planned for 2025 AGM on delisting and further capital return
Profit Amid Transition
Wellard Ltd (ASX – WLD) has reported a notable turnaround in its financial fortunes for the year ended 30 June 2025, posting a net profit after tax of US$1.3 million. This result includes a significant one-off expense of US$5 million related to securing full ownership of its flagship vessel, the M/V Ocean Drover. Excluding this cost, the company’s net profit would have been a robust US$6.3 million, a stark contrast to the US$815,000 loss recorded in the prior year.
The improved profitability came despite a 23% drop in revenue to US$26.8 million, a consequence of operating with a reduced fleet. For most of FY2025, Wellard operated only the M/V Ocean Drover following the sale of the M/V Ocean Ute in September 2024. Yet, the company’s EBITDA surged by 87% to US$7.7 million, underscoring operational efficiency and strong vessel utilisation on routes from South America to Türkiye.
Fleet Exit and Capital Returns
August 2025 marked a pivotal moment for Wellard with the sale of the M/V Ocean Drover to Meteors Shipping S.A., effectively ending the company’s live export shipping operations. The US$50 million proceeds from this sale were promptly returned to shareholders as a capital payment of A$0.15 per share, adding to a prior return of A$0.02 per share following the earlier vessel sale. In total, shareholders have received A$0.17 per share in capital returns during this transition phase.
Wellard’s Executive Chairman, John Klepec, reflected on the vessel’s legacy, praising the M/V Ocean Drover’s performance since its construction in 2002 and expressing confidence in its future under new ownership. The company also highlighted its strong safety record, with zero lost time injuries and a 99.7% voyage success rate in FY2025, continuing a multi-year trend of operational excellence.
Strategic Shift – Delisting and Legal Exposure
Looking ahead, Wellard’s board has resolved that continuing as a public unlisted company best serves shareholder interests. This move aims to reduce ongoing operating costs while preserving exposure to the Brett Cattle class action, in which Wellard is a claimant. The class action relates to financial losses from the 2011 live export ban and is currently subject to legal appeals and potential settlement negotiations.
The timing and magnitude of any payout from the class action remain uncertain, with the Australian Farmers Fighting Fund supporting Wellard’s participation. The board will seek shareholder and ASX approval to delist and execute a further capital return at the upcoming 2025 Annual General Meeting, with detailed proposals to be outlined in the explanatory memorandum.
Wellard’s journey from a publicly listed live export shipping operator to an unlisted entity focused on legal claims marks a significant strategic pivot, reflecting the challenges and volatility inherent in the sector.
Bottom Line?
Wellard’s exit from live export shipping and move to delist signals a new chapter focused on legal recovery and shareholder returns.
Questions in the middle?
- What is the expected timeline and potential payout size from the Brett Cattle class action?
- How will delisting impact shareholder liquidity and future investment opportunities?
- What are the company’s plans for deploying remaining cash reserves post-delisting?
