Pacific Basin Shipping (2343) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 saw Handysize and Supramax market rates drop 24% and 36% year-on-year, with spot rates averaging $8,000 and $7,900 per day, but core fleet TCE earnings outperformed spot indices by 37% and 55% at $10,940 and $12,210 per day.

• Operating activity margin improved 61% year-on-year to $820 per day, with operating days rising to 6,950 in Q1 2025.

• Maintained a strong balance sheet with $547.6 million in available committed liquidity and net cash of $19.7 million as of 31 December 2024.

• Disciplined fleet renewal continued, acquiring modern vessels and selling older ones, with a core fleet of 123 vessels and a total of 262 vessels in operation.

• 77% of Handysize and 95% of Supramax vessel days for Q2 2025 are covered at rates above current market and FFA rates.

Financial highlights

• Revenue for 2024 was $2,581.6 million, up from $2,296.6 million in 2023; EBITDA reached $333.4 million, and net profit increased to $131.7 million.

• Cash break-even for owned Handysize and Supramax vessels is $5,780 and $6,200 per day, supporting positive cash flow.

• Board recommends a final dividend of HK5.1 cents per share; total dividends for 2024 amount to $60.9 million, representing 50% of net profit (excluding vessel disposal gains).

• $40 million share buyback completed, reducing share capital by 2.0%; $13.5 million repurchased in Q1 2025.

• Operating activity generated a daily average margin of $830, up 63% year-on-year.

Outlook and guidance

• Near-term outlook is clouded by trade and geopolitical tensions, with disruptions (e.g., Red Sea) and trade flow shifts potentially supporting ton-mile demand.

• Minor bulk and grains trade volumes expected to partially offset softening iron ore and coal demand in 2025.

• Global net fleet growth (3% dry bulk, 4.5% minor bulk) is expected to outpace demand growth in 2025.

• FFA rates for 2H 2025 are in line with current spot market levels, indicating stable forward expectations.

• Long-term fundamentals remain positive with potential for structural supply shortages due to aging fleet and low orderbook.