Pacific Basin Shipping Limited · HKEX:2343

Pacific Basin Shipping — Q1 2020 Earnings Presentation

18 slides from Pacific Basin Shipping's earnings presentation, Apr 7, 2020

  1. Slide 1: 1Q20 Trading Update

    7 April 2020 1Q20 Trading Update 1

  2. Slide 2: Strong PB Performance Despite Market Headwinds

    Strong PB Performance Despite Market Headwinds Cover as at 3 April 2020 Handysize Core Fleet TCE Supramax Core Fleet TCE US$/day US$/day (net) 2019 2020 (net) 2019 2020 $11,310 $11,180 12,000 12,000 $10,400 $10,690 10,000 $9,080 $9,360 $9,000 10,000 $8,020 2,860 5,080 8,000 8,000 3,350 2,580 6,000 6

  3. Slide 3: Our New Commercial KPIs

    Our New Commercial KPIs Core Business Last quarter Last 12 months Handysize outperformance vs index per day $2,580 $2,660 Supramax outperformance vs index per day $5,080 $2,790 Operating Activity Last quarter Last 12 months Operating Margin per day $960 $970  Strong outperformance particularly in S

  4. Slide 4: Pacific Basin Continues to Outperform on Every Level

    Pacific Basin Continues to Outperform on Every Level Handysize Performance vs Market Supramax Performance vs Market US$1,970/day average premium US$1,490/day average premium US$/day in last 5 years US$/day in last 5 years 14,000 14,000 PB Performance PB Performance $11,720 $11,310 12,000 12,000 BHSI

  5. Slide 5: Growing Owned Fleet with Lower Breakeven Levels

    Growing Owned Fleet with Lower Breakeven Levels Handysize Core Fleet Supramax Core Fleet Gradually trading up to larger Handysize ships Steadily growing our owned Supramax fleet No. of Vessels No. of Vessels 100 94 100 13 80 80 60 60 81 40 40 40 5 20 20 35 0 0 2015 2016 2017 2018 2019 April 2020 201

  6. Slide 6: Market Recovered After a Weak Start But is Now Facing Global COVID-19 Headwinds

    Market Recovered After a Weak Start But is Now Facing Global COVID-19 Headwinds Baltic Handysize Index (BHSI) 1 Baltic Supramax Index (BSI) 2 Market Spot Rates in 2016-2020 Market Spot Rates in 2016-2020 US$/day net* US$/day net* 15,000 10,000 2017 8,000 2018 12,000 2018 2017 2019 9,000 6,000 2016 6

  7. Slide 7: COVID-19 Impact on Pacific Basin

    COVID-19 Impact on Pacific Basin  Measures to contain COVID-19, initially in China and now globally, have resulted in disrupted logistics and weaker dry bulk demand  Ports remain largely open and operational so far, although lockdowns and 14-day quarantine rules for ships pose an increasing challe

  8. Slide 8: COVID-19 Expected Impact on Dry Bulk Demand

    COVID-19 Expected Impact on Dry Bulk Demand So far:  Our 1Q20 performance held up well despite Chinese New Year weakness, which was compounded by COVID-19 impacts in China  Global shipments of agricultural products, construction material and other minor bulks were resilient in 1Q20 Going forward:

  9. Slide 9: Supply Growth is Still High But Expected to Slow

    Supply Growth is Still High But Expected to Slow Overall Dry Bulk Supply Development Handysize / Supramax Supply Development Current Orderbook: Current Orderbook: Mil Dwt Mil Dwt 4.6% 3.2% 0.7% 3.0% 2.0% 0.4% 60 15 50 3.1% 3.9% 40 10 30 2.7% 1.8% 1.8% 20 5 0.6% 10 0 0 -10 -20 -30 -5 2019E 2020F 2021

  10. Slide 10: Fuel Prices and Speed

    Fuel Prices and Speed Average Bunker Prices in Handysize and Supramax Singapore and Rotterdam for Global Average Operating Speeds 3.5% HSFO and 0.5% VLSFO US$/mt Knot 700 11.3 600 11.2 500 0.5% 300 VLSFO 11.1 400 300 135 11.0 125 100 200 3.5% 10.9 HSFO 100 10.8 0 10.7 Jan-20 Now 2021 2022 Apr-19 Jun

  11. Slide 11: Handysize Costs Compared to Cover Levels

    Handysize Costs Compared to Cover Levels US$/day Core Costs Core Cover Levels (net) 12,000 Opex Depreciation Finance Cost 10,310 10,000 9,000 8,020 7,650 8,020 8,000 690 6,000 2,860 4,000 4,100 2,000 - Owned Long Term Weighted Actual TCE 32% Cover TCE Actual Cost Chartered Blended Cost 1Q20 2Q-4Q20

  12. Slide 12: Supramax Costs Compared to Cover Levels

    Supramax Costs Compared to Cover Levels Core Costs Core Cover Levels US$/day (net) Opex Depreciation 11,990 11,310 12,000 11,180 Finance Cost 10,000 9,010 8,580 8,000 990 6,000 3,580 4,000 2,000 4,010 - Owned Long Term Weighted Actual TCE 58% Cover TCE Actual Cost Chartered Blended Cost 1Q20 2Q-4Q20

  13. Slide 13: Our Two Main Activities

    Our Two Main Activities Core Business Operating Activity Contract and spot cargoes Spot cargoes Owned and long term chartered in ships Short term ships carrying spot cargoes Short term ships carrying contract cargoes Costs largely fixed and disclosed Costs fluctuate with freight market Key KPI = TCE

  14. Slide 14: How to Model Pacific Basin

    How to Model Pacific Basin Handysize contribution Core TCE1 x owned & LTC 2 revenue days + Blended cost x owned & LTC cost days 3 - = X Supramax contribution Core TCE1 x owned & LTC revenue days + Blended cost x owned & LTC cost days 3 - = X Operating Activity Operating margin x operating days X Pos

  15. Slide 15: Strong Balance Sheet & Cash Positions

    Strong Balance Sheet & Cash Positions  Two new revolving credit facilities and a new convertible bond secured last year. Major investments in scrubbers, BWTS and dry dockings are behind us  US$383 million of available liquidity as at 31 December 2019  Regular expected cash outgoings during FY 202

  16. Slide 16: Disclaimer

    Disclaimer This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Pacific Basin and certain plans and objectives of the management of Pacific Basin. Such forward looking statements involve known and unknown risks,

  17. Slide 17: Appendix: Vessel Days Breakdown

    Appendix: Vessel Days Breakdown Handysize Supramax Days 1Q19 1Q20 1Q19 1Q20 Core Revenue Days 9,000 8,660 3,050 3,430 - Owned Revenue Days 7,300 7,290 2,420 2,940 - LT Chartered Days 1,700 1,370 630 490 ST Core Days 1,450 880 3,100 2,500 Operating Days 1,540 1,430 1,410 1,490 Owned Off Hire Days 130

  18. Slide 18: Appendix: New TCE Reporting Methodology

    Appendix: New TCE Reporting Methodology Our “core business” is to optimally combine our owned and long-term chartered ships with spot cargoes and multi- shipment contract cargos to achieve the highest daily time-charter equivalent (“TCE”) earnings. Our core business also uses short-term chartered sh

Pacific Basin Shipping — Q1 2020 Earnings Presentation on 6ix