Pacific Basin Shipping (2343) H2 2023 earnings summary

Executive summary

• 2023 underlying profit was US$119.2m, net profit US$109.4m and EBITDA US$347.2m, down from US$714.7m, US$701.9m and US$935.1m, respectively, in 2022.

• Freight rates recovered seasonally in 4Q23; management expressed increased optimism about the 2024–25 outlook, citing minor-bulk demand and constrained fleet supply.

Financial highlights

• Revenue was US$2,296.6m in 2023 versus US$3,281.6m in 2022; TCE earnings were US$1,281.5m versus US$2,216.7m.

• Operating performance before overheads was US$194.7m versus US$804.6m; adjusted total G&A overheads were US$76.0m versus US$89.9m.

• Shareholder profit included US$10.8m net vessel disposal gain, offset by US$16.0m vessel impairment; derivative mark-to-market loss was US$4.6m.

Outlook and guidance

• 1Q24 vessel days were 100% covered at net TCE rates of US$11,170/day for Handysize and US$13,480/day for Supramax.

• FY24 coverage was 54% of Handysize days at US$10,160/day and 71% of Supramax days at US$12,610/day; rates are net and indicative.

• 2024 minor-bulk seaborne demand was forecast to rise 3.1%; total dry-bulk trade volumes were forecast up 1.0%.

• Eight additional long-term time charters representing 0.4m dwt were described as equivalent to 8% of current Core fleet carrying capacity.