Pacific Basin Shipping (2343) H1 2026 earnings summary

Executive summary

• Net profit surged over 300% year-over-year to US$105.0 million, with EBITDA of US$197.8 million and underlying profit of US$94.9 million, reflecting strong market conditions and operational outperformance.

• Maintained robust balance sheet with net cash of US$157.2 million and available committed liquidity of US$673.6 million as of June 30, 2026.

• 100% of net profit (excluding vessel disposal gains) distributed via interim dividend of HKD 0.155 per share and share buybacks totaling US$3.5 million.

• Fleet comprised 254 vessels (107 owned, 30 long-term chartered, 134 short-term chartered), with 10 newbuildings ordered and options for 2 dual-fuel vessels.

• Strategic priorities include fleet renewal, fuel strategy transformation, digital optimisation, and cost competitiveness.

Financial highlights

• Revenue increased 9% year-over-year to US$1,105.5 million; TCE earnings rose 20% to US$665.7 million.

• Operating cash flow was US$143.5 million, supporting loan prepayments and capital expenditures.

• CapEx for H1 2026 was US$57.3 million, including vessel delivery and dry dockings.

• Net book value of owned vessels was US$1.6 billion; estimated market value was US$2.1 billion.

• Return on equity (annualised) improved to 11% in 1H 2026, with a dividend yield of 5%.

Outlook and guidance

• Positive outlook for dry bulk market, supported by IMF global GDP growth forecast of 3% and China at 4.6% for 2026.

• Freight markets expected to remain resilient due to disruption-related inefficiencies, high bunker prices, and longer voyage distances.

• 78% of Handysize and 82% of Supramax vessel days for Q3 2026 already covered at higher rates than H1.

• CapEx for newbuildings outstanding at US$280 million, to be paid from H2 2027 to 2028 onwards, fully covered by liquidity.

• Long-term outlook for geared minor bulk segments remains constructive, supported by urbanisation, infrastructure, energy transition, and food demand.