Positive results for Pacific Basin despite weaker freight market

(Posted on 15/08/25)

Pacific Basin Shipping Limited, one of the world’s leading dry bulk shipping companies, has announced the unaudited results of the Company and its subsidiaries for the six months ended 30 June 2025.

Mr. Martin Fruergaard, CEO of Pacific Basin, said: “In the first half of 2025, we generated an underlying profit of US$21.9 million, a net profit of US$25.6 million and EBITDA of US$121.5 million. This yielded a return on equity of 3% (annualised) with basic EPS of HK3.9 cents. Dry bulk shipping markets were weaker in the first half of 2025 than in the same period in the last four years, due to an unusual confluence of commodity-specific factors affecting the three major dry bulk commodities in the first quarter, before recovering in the second quarter.

Our core business generated US$50.7 million before overheads, with average Handysize and Supramax daily time-charter equivalent (“TCE”) earnings of US$11,010 and US$12,230 per day respectively for the first half 2025, representing a decrease of 7% and 11% respectively compared to the same period in 2024. We significantly outperformed the average Handysize (BHSI 38k dwt tonnage-adjusted) and Supramax (BSI 58k dwt) indices by US$2,320 per day and US$3,480 per day, or 27% and 40% respectively, consistent with our usual high level of outperformance.

Our operating activity contributed US$10.1 million before overheads, representing 16% of our performance, and generating a margin of US$710 per day over 14,200 operating days. This represents a 29% improvement in margin on a similar volume of operating activity compared to the first half of 2024.

In view of our sound cash generation and strong balance sheet, the Board has declared an interim dividend of HK1.6 cents per share, which represents 50% of our net profit for the period, excluding vessel disposal gains.

After total capital allocation of US$62.1 million, of which we spent an aggregate consideration of about US$21.0 million buying back and cancelling approximately 93.1 million shares under our 2025 share buyback programme, and capital expenditure of approximately US$41.1 million, our financial position remains strong. The Company is debt free on a net basis with a positive cash position of US$66.4 million and available committed liquidity of US$549.9 million as at 30 June 2025.

In July 2025, we successfully concluded a new US$250 million syndicated sustainability-linked 7-year secured reducing revolving credit facility, with interest margin adjustments linked to our carbon intensity (EEOI) and crew safety (LTIF) performance which we prioritise among our most important ESG issues. This is our second sustainability-linked financing facility, which is well timed to cover the remaining pre-delivery instalments in our newbuilding programme and to be ready for any counter-cyclical growth opportunities, thus supporting our growth ambitions.

Growing our business is a continuous priority, and we will continue to renew, grow and optimise our fleet in a disciplined way that prepares us for a low carbon future and considers the cyclicality of dry bulk shipping. That means: acquiring modern second-hand vessels, while also selling older and less efficient vessels; placing additional low-emission vessel (LEV) newbuilding orders; taking newbuilding vessels on long-term charter with purchase options; and/or continuously looking for accretive M&A opportunities where the synergies and the strategic and cultural fit are compelling.”