Pacific Basin Shipping (2343) Q1 2026 TU earnings summary

Executive summary

• Achieved strong year-on-year growth in dry bulk freight markets despite significant geopolitical and supply chain disruptions, notably the war in the Arabian Gulf, leading to improved TCE earnings and market outperformance for both Handysize and Supramax fleets.

• Maintained operational resilience through proactive fleet management, energy-saving investments, and robust supplier relationships, with minimal direct exposure to conflict zones.

• Continued disciplined fleet growth and renewal, with strategic newbuilding orders and options to support long-term competitiveness.

• Maintained sector-leading cost efficiency and solid cash flow, supported by low cash break-even levels.

Financial highlights

• Handysize fleet recorded average net daily TCE earnings of $12,130 (up 11% year-on-year); Supramax fleet at $13,970 (up 14% year-on-year).

• TCE earnings exceeded market indices by $1,030/day for Handysize and $2,050/day for Supramax.

• Operating activity generated a daily average margin of $340 over 6,240 operating days in Q1 2026, though margins declined 59% year-on-year.

• Cash break-even for Handysize and Supramax vessels in 2025 was $6,880 and $6,540/day, respectively.

Outlook and guidance

• For Q2 2026, 70% of Handysize and 90% of Supramax vessel days covered at $14,000 and $17,080 per day, respectively.

• Second half 2026 coverage: 22% for Handysize at $10,430/day, 35% for Supramax at $13,840/day.

• FFA rates for 2026 suggest continued elevated market conditions, with Handysize at $14,080/day and Supramax at $16,230/day.

• Volatility expected to persist due to slower economic growth, ongoing geopolitical uncertainty, and regulatory risks.