Pacific Basin Shipping (2343) H1 2025 earnings summary

Executive summary

• Underlying profit for H1 2025 was US$21.9 million, net profit US$25.6 million, and EBITDA US$121.5 million, with a 3% annualized ROE and basic EPS of HK3.9 cents.

• Interim dividend of HK1.6 cents per share declared, representing 50% of net profit (excluding vessel disposal gains), totaling US$10.4 million.

• Maintained strong liquidity: net cash of US$66.4 million and available committed liquidity of US$549.9 million as of 30 June 2025.

• Outperformed Handysize and Supramax market indices by 27% and 40% respectively.

• Continued disciplined fleet renewal, selling five older vessels and acquiring three modern Handysize vessels.

Financial highlights

• Revenue for H1 2025 was US$1,018.7 million, down 21% year-over-year; EBITDA fell 23% to US$121.5 million.

• Net profit dropped 56% year-over-year to US$25.6 million; underlying profit fell 50% to US$21.9 million.

• Net cash position improved to US$66.4 million from US$19.7 million at year-end 2024.

• Operating cash inflow was US$104 million; capital expenditure totaled US$41.1 million.

• Adjusted total G&A overheads decreased 4% to US$39.4 million.

Outlook and guidance

• Market is firming in the near term, with no significant decline foreseen; longer-term optimism driven by minor bulk and grain demand, green energy infrastructure, and urbanization.

• 60% and 74% of Handysize and Supramax vessel days covered for H2 2025 at US$11,680 and US$13,480 per day, respectively.

• Cargo volumes expected to recover in H2 2025, supported by Brazil's record soybean harvest and post-disruption catch-up.

• Minor bulk trade projected to grow 2% in 2025, with tonne-mile demand up 3.6%.

• Decarbonisation regulations expected to slow speeds and accelerate scrapping.