Pangaea Logistics Solutions Ltd. · NASDAQ:PANL
Pangaea Logistics Solutions — Investor Presentation (April 2022)
22 slides from Pangaea Logistics Solutions's investor presentation, April 2022
Slide 1: Spring 2022 Update
NASDAQ: PANL Spring 2022 Update
Slide 2: Safe Harbor
SA F E H A R B O R This presentation may include certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Pangaea’s
Slide 3: We are a unique dry bulk shipping owner and operator managed from Newport, RI
We are a unique dry bulk shipping owner and operator managed from Newport, RI Denmark Greece Commercial Technical United States Headquarters/Commercial Singapore • We own 25 ships Commercial • We have on short term charter in approximately 25-35 ships every day • We operate a worldwide fleet of abou
Slide 4: We ship major and minor dry bulk commodities around the world
We ship major and minor dry bulk commodities around the world • Iron ore • Bauxite • Aggregates • Iron products and steel feedstock • Coal • Fertilizer • Cement and clinker • Agricultural *FY2021 in Metric Tons
Slide 5: Positive Dry Bulk Market Fundamentals With Limited Newbuilding Orders In Near Term
Positive Dry Bulk Market Fundamentals With Limited Newbuilding Orders In Near Term Ship supply constraints • Low order book • Favorable world fleet age profile • Environmental regulations • Congestion Steady demand • Positive ton mile projections • Global economic growth Source: Clarksons
Slide 6: Pangaea's A/B/C Sustainable Platform
PA N G A EA LO G I S I T I C S S O LU T I O N S LT D PANGAEA’S A/B/C SUSTAINABLE PLATFORM A Ice Class Niche ✓ Use ships as tools to implement cargo strategies that build deeper customer relationships B Cargo Focused Owner/Operator ✓ Demonstrated industry leading TCE performance ✓ Long history of pro
Slide 7: A/B/C Sustainable Business Approach to Shipping
A/B/C Sustainable Business Approach to Shipping A Ice Class Niche Niche Trades deliver premium returns: Ice and Arctic Specialization Vessel Name** Type DWT Year Built Nordic Nuluujaak Post-Panamax 1A 95,758 2021 Nordic Qinngua Post-Panamax 1A 95,758 2021 Nordic Sanngijuq Post-Panamax 1A 95,758 2021
Slide 8: Pangaea Days
A/B/C Sustainable Business Approach to Shipping B Cargo Focused Owner/Operator Pangaea Days* Cargo Focus Responds to Customer Needs • Ten-year contracts, direct industrial/trading relationships provide stream of fixed revenue for stability in a volatile industry - Owned vessel days • Basis for inves
Slide 9: 2021 Timely Secondhand Acquisitions Increasing Operating Leverage
2021 Timely Secondhand Acquisitions Increasing Operating Leverage in millions USD Panamax 1A Bulk Courageous Bulk Promise Bulk Valor Bulk Concord Total Purchase Price 22.5 16.5 18.3 17.8 19.9 95.0 Debt Proceeds 7.5 12 12.8 13.4 15 60.7 Capital Deployed 15 4.5 5.5 4.5 4.9 34.3
Slide 10: Current Owned Fleet
PA N G A EA LO G I S I T I C S S O LU T I O N S LT D CURRENT OWNED FLEET SUPRAMAX ULTRAMAX 1C Vessel Name Type DWT Year Built Vessel Name Type DWT Year Built Bulk Newport Supramax 52,587 2003 Bulk Endurance Ultramax 1C 60,000 2017 Bulk Trident Supramax 52,514 2006 Bulk Destiny Ultramax 1C 60,000 201
Slide 11: Selected Balance Sheet & Cash Flow Data
SELECTED BALANCE SHEET & CASH FLOW DATA (in thousands) December 31, 2021 December 31, 2020 Current Assets Cash and cash equivalents $ 56,209 $ 46,897 Restricted cash - 1,500 Accounts receivable, net 54,259 29,152 Other current assets 73,495 33,792 Total current assets 183,964 111,342 Fixed assets, i
Slide 12: A / B / C Sustainable Business Approach to Shipping
Moriusaq, Greenland A / B / C Sustainable Business Approach to Shipping • Pop-up port utilizing Pangaea owned barge C Stevedoring, Terminals, & Project Services • Trial shipment of high value commodity in high arctic Gramercy, Louisiana • Stevedoring services with JV partner Port Rousse, Newfoundlan
Slide 13: Market Volatility: Risk and Opportunity
Market Volatility: Risk and Opportunity • Rising market: Owned open shipping days directly benefit Cargo bookings risk losses if not covered Low cost chartered in fleet profits • Falling market: Owned ships still profitable Cargo bookings profitable High cost chartered in fleet produces losses • Pan
Slide 14: Management has consistently demonstrated an ability to execute a long-term strategy
Management has consistently demonstrated an ability to execute a long-term strategy through the dry bulk cycle STRONG PERFORMANCE THROUGH THE WORST MARKETS US$m BDI 600 6,000 7 498 500 5,000 400 4,000 2 2* 2 4 300 3,000 2 1 247 225 228 221 200 2,000 162 134 105 100 1,000 67 55 51 39 39 42 27 11 18 1
Slide 15: Result: We Outperform Peers
Result: We Outperform Peers 28 April 2021 9:51 GMT By Joe Brady in Stamford
Slide 16: Record Quarterly Results
Record Quarterly Results Earnings over all market cycles Share Performance ADJUSTED EBITDA 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4 -20 Q1-21 Q2-21 Q3-21 Q4-21 Historical Adjusted EPS (1) $0.42 $0.33 $1.42 0.60 0.50 0.56 0.48 0.40 • EBITDA
Slide 17: TCE Outlook
TCE OUTLOOK $35,000 6,000 $32,563 $30,000 $26,512 * 5,000 $28,770 $25,000 4,000 $20,000 $16,524 $21,053 $15,915 3,000 $15,172 $14,640 $14,360 $15,000 $12,933 $13,316 $12,029 $10,508 $10,733 2,000 $10,000 1,000 $5,000 $- - Q4 - 2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2
Slide 18: The Pangaea Difference: A Sustainable Business Approach to Shipping
The Pangaea Difference: A Sustainable Business Approach to Shipping • Unique Attack niche markets Fix contract coverage Employ flexible charter-in fleet • Industrial Address long term customer needs Deliver logistics capabilities • Dynamic Micro-fleet growth and vertical integration Macro-integral t
Slide 19: Thank You
THANK YOU ic)
Slide 20: Appendix
PA N G A EA LO G I S I T I C S S O LU T I O N S LT D APPENDIX
Slide 21: Pangaea TCE v. Average Market TCE
PANGAEA TCE v. AVERAGE MARKET TCE $35,000 $30,000 $25,000 $20,000 $28,770 $32,563 $32,033 $15,000 $28,104 $21,053 $24,185 $10,000 $16,261 $10,508 $10,286 $14,640 $10,326 $16,524 $5,000 $13,316 $5,920 $10,733 $5,548 $- Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Pangaea Average TC
Slide 22: Selected Income Statement Data
SELECTED INCOME STATEMENT DATA 1) Adjusted EBITDA represents net income (or loss), determined in accordance with U.S. GAAP, excluding interest expense, income taxes, depreciation and amortization, loss on sale and leaseback of vessels, share-based compensation and other non-operating income and/or e
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