Pacific Basin Shipping (2343) H2 2024 earnings summary

Executive summary

• Achieved EBITDA of US$333.4 million, underlying profit of US$114.1 million, and net profit of US$131.7 million for 2024, with a 7% return on equity and EPS of HK19.9 cents.

• Maintained a strong balance sheet with net cash of US$19.7 million and committed liquidity of US$547.6 million at year-end.

• Distributed 83% of 2024 net profit (excluding vessel disposal gains) via dividends and share buybacks, totaling US$100.9 million.

• Board recommended a final dividend of HK5.1 cents per share and completed a US$40 million share buyback, reducing share capital by 2%.

• Outperformed Handysize and Supramax indices by US$1,720 and US$710 per day, respectively.

Financial highlights

• Revenue increased 12% year-over-year to US$2,581.6 million, driven by higher freight rates and increased activity.

• Core business generated US$178.4 million before overheads; Handysize TCE earnings up 5% to US$12,840/day, Supramax TCE down 1% to US$13,630/day.

• Operating activity contributed US$17.4 million, with a margin of US$630 per day over 27,610 days.

• Net profit of US$131.7 million was further improved by gains from the sale of five older Handysize vessels.

• Operating cash inflow was US$259 million, down from US$286 million in 2023.

Outlook and guidance

• Covered 92% of Handysize and 100% of Supramax core fleet days for Q1 2025 at rates above current spot and FFA rates.

• Minor bulk tonne-mile demand forecast to grow 2.3% in 2025, with global economic growth at 3.3%.

• Net fleet growth in 2025 expected to peak at 4.4%, outpacing minor bulk demand growth.

• Shipping market volatility and regulatory changes expected in 2025; focus remains on disciplined fleet renewal and growth.

• Remain positive on long-term sector fundamentals, supported by an aging global fleet and tightening decarbonisation regulations.