Pacific Basin Shipping (2343) Q3 2025 TU earnings summary

Executive summary

• Q3 2025 saw mixed Handysize and Supramax freight rates, with Handysize down 1% and Supramax up 4% YoY; TCE earnings for Handysize decreased 15% and increased 10% for Supramax compared to Q3 2024.

• Delivered resilient financial performance in 1H 2025, with EBITDA of $121.5M, net profit of $25.6M, and strong liquidity of $549.9M as of June 30, 2025.

• Maintained a core fleet of 120 owned and long-term chartered vessels, with disciplined renewal and strategic expansion into low-emission vessels.

• Proactive steps taken to mitigate new US and Chinese port tariffs, including structural changes to fleet ownership and management.

• Continued capital returns through share buybacks and dividends, with a minimum 50% payout of annual net profit (excluding vessel disposal gains).

Financial highlights

• Q3 2025 average TCE earnings: $11,680 for Handysize (down 15% YoY), $13,410 for Supramax (up 10% YoY); market spot rates: $11,590 (Handysize), $14,310 (Supramax).

• 1H 2025 revenue was $1,018.7M, EBITDA $121.5M, net profit $25.6M; interim dividend of HK1.6 cents per share declared.

• Operating activity margin in Q3 was $750/day over 6,830 days; YTD margin $720/day over 21,020 days.

• 72% of Handysize and 87% of Supramax Q4 2025 days covered at $12,380 and $14,060 per day, respectively.

• Positive cash position of $66.4M and available committed liquidity of $549.9M as of June 30, 2025.

Outlook and guidance

• Minor bulk and grains expected to see healthy growth, especially bauxite, aluminum, manganese ore, and scrap steel; coal and iron ore volume growth forecast to remain weak.

• Dry bulk market conditions expected to benefit from steady minor bulk demand and increased supply disruptions, supporting tighter trade markets.

• Global Handysize and Supramax fleet growth forecast at 4.3% in 2025 and 3.9% in 2026, with newbuilding orders down sharply YoY due to decarbonization uncertainties.

• 8% and 24% of 2026 Handysize and Supramax days covered at $9,790 and $13,200 per day, respectively.

• Company remains optimistic about the market for the rest of the year, with positive demand and manageable supply growth.