Pacific Basin Shipping (2343) H2 2024 earnings summary

Executive summary

• Net profit reached US$131.7 million (up 20% YoY), EBITDA US$333.4 million, and underlying profit US$114.1 million for 2024, with a 7% return on equity and EPS of HK19.9 cents.

• Maintained a strong balance sheet with net cash of US$19.7 million and committed liquidity of US$547.6 million at year-end.

• Distributed 83% of 2024 net profit (excluding vessel disposal gains) via dividends and share buybacks, totaling US$100.9 million.

• Outperformed Handysize and Supramax indices by US$1,720 and US$710 per day, respectively, despite a flat freight market.

• Contracted four dual-fuel Ultramax newbuildings for 2028–2029, supporting decarbonisation strategy.

Financial highlights

• Revenue increased 12% YoY to US$2,581.6 million; EBITDA was US$333.4 million, down 4% YoY due to higher chartered vessel costs.

• Net profit attributable to shareholders rose 20% to US$131.7 million; underlying profit decreased 4% to US$114.1 million.

• Final dividend of HK5.1 cents per share recommended, with total dividends and buybacks representing 50% of net profit (excluding vessel disposal gains).

• Completed US$40 million share buyback, reducing issued share capital by 2%.

• Operating cash inflow was US$259 million; US$44 million realized from sale of five older vessels.

Outlook and guidance

• Covered 92% of Handysize and 100% of Supramax days for Q1 2025 at rates above current spot and FFA rates.

• Minor bulk tonne-mile demand forecast to grow 2.3% in 2025; net fleet growth expected to peak at 4.4%.

• Shipping market volatility and regulatory changes expected in 2025, with cautious optimism for long-term sector prospects.

• Emission regulations and aging fleet expected to reduce effective supply and support long-term fundamentals.

• Strategic focus on fleet renewal, decarbonisation, and operational optimisation.