There are a extra expense at 2H 2020 compare with 1H2020,From...

There are a extra expense at 2H 2020 compare with 1H2020,

From 30/10/2019,Wellard need pay about AU$350000/month(USD/AUD:0.65) to charter ocean swagman.So at 1H 2020,Wellard paid 0.7Mcharter fees. 2H2020 wellard have paid 2.1M to Heytesbury. There are 1.4M extra expense than 1H 2020.

so the net profit at 2H 2020= 13-14.5M gross profit-3.5M (net finance cost)-3M(Depreciation and amortisation cost)-2m（administration cost）-2m(operating cost) - 1.4M (charter fees)= about 2-3 M
the total FY2020 Wellard should get break even point or a very little profit.

Now we are look forward to 1H2021.

From Q2 2020,Wellard operating only 3 boats which are full utilization
At Q2 OCEAN DROVER (12/04 Townsvale-24/04 Indonesia, 07/05 Portland-31/05 China,17/0612/04 Townsvale-29/06 Indonesia) finished 3 voyages
Ocean Swagman (03/04 Portland-15/04 China,06/05 Townsvale-18/05Vietnan, 02/06 Townsvale-12/06Vietnan)finished 3 voyages
Ocean ute (20/04 Portland-10/05 China,02/06 Townsvale-15/06Vietnan, after finish supply at Singapore,arrived at 01/07 in Darwin.
total finished 8voyages at Q2.
Based on these data, if the boat still can full utilization,we can expect at 1H2021,Wellard can get 16-18 charter voyages.The revenue should be a little less than 2H2020(due to sold the Ocean sheare),I guess around 34-38M.
But we will see big reduce interest pay plus reduce other expense

So 34-38M revenue can get 11-13 gross profit but reduce another 2M finance cost,1M(depreciation and amortisation cost),0.2M administration cost.We can expect 1H 2021 wld can get 4-5M net profit just for Charter boat.

But as a live export company,the real profit area is trading cattle which now and 6 months later we still cant get opportunity.The feeder steer price hit $3.6/kg now which highest in the recent 3 years.(the steer price should below $3/kg,Wellard will have the trading opportunity)


But there are good news in future.After 2 years drought condition,we expect more rain at Australia in future to rebuilding livestock numbers.






We will see the real FY2020 result at next month.If the financial results are same/similar as my analyse.We will see the share price back to 8-10 cents soon and the share price jump to $0.15-.0.2 at next year.