Pacific Basin Shipping (2343) H1 2026 earnings summary

Executive summary

• Net profit surged over 300% year-over-year to US$105.0m, with EBITDA of US$197.8m and annualised ROE of 11%, reflecting strong market conditions, operational outperformance, and robust financial results amid geopolitical disruptions.

• Maintained strong liquidity with net cash of US$157.2m and available committed liquidity of US$673.6m as of 30 June 2026.

• Declared interim dividend of HK15.5 cents per share (~US$102.2m), representing ~100% of net profit (excluding vessel disposal gains), and repurchased 9.5m shares for US$3.5m.

• Outperformed market indices in Handysize and Supramax segments, leveraging integrated platform, disciplined operations, and strong customer relationships.

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

Financial highlights

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

• Underlying profit increased over 333% year-over-year to US$94.9m; net profit margin improved to 10% from 3%.

• Operating cash flow was US$143.5m, covering capital expenditure of US$57.3m.

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

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

Outlook and guidance

• Market volatility expected to persist due to geopolitical, macroeconomic, regulatory, and weather-related factors.

• 54% of Handysize and 60% of Supramax vessel days covered for 2H 2026 at US$14,850 and US$17,470 per day, respectively; forward cargo cover for 3Q 2026 at 78% and 82% at strong TCE rates.

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

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

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