Pacific Basin Shipping Limited · HKEX:2343
Pacific Basin Shipping — FY2024 Earnings Presentation
40 slides from Pacific Basin Shipping's earnings presentation, Feb 28, 2025
Slide 1: Annual Results 2024
ANNUAL RESULTS 2024 28 FEBRUARY 2025
Slide 2: Performance and Market Review
Slide 3: Stable financial results in an unusually flat freight market
P&L Stable financial results in an unusually flat freight market US$million 2024 2023 ▪ Generated an EBITDA of US$333.4 million, EBITDA 333.4 347.2 underlying profit of US$114.1 million and a net profit of Underlying profit 114.1 119.2 US$131.7 million respectively Net profit 131.7 109.4 Core Busine
Slide 4: Shareholder distributions and share buyback
US$m Payout 900.0 100% ▪ Combining dividend with US$40 million 2024 share buyback consideration, we are committed to distributing US$100.9 800.0 90% million or 83% of our 2024 net profit (excl. vessel disposal 83% gains) 80% 700.0 75% 75% 70% ▪ Since 2021, we have generated profits of approx. US$1,7
Slide 5: Handysize and Supramax market spot rates
Handysize Market Spot Rates (BHSI) Supramax Market Spot Rates (BSI) 38k dwt (tonnage adjusted^) 58k dwt US$/day net* US$/day net* 18,000 18,000 Supramax rates up 21% 16,000 16,000 compared to 2023 14,000 Handysize rates up 24% 14,000 compared to 2023 FFA Average* 12,000 12,000 $10,990 10,000 FFA Ave
Slide 6: Minor bulk, grain, coal and iron ore loadings
2016-2020 2021 2022 2023 2024 Mill tonnes Mill tonnes Mill tonnes Mill tonnes 130 150 53 Millions Millions Millions 180 Millions 120 140 160 48 110 130 140 43 100 120 120 38 90 110 100 33 80 100 Aug Sep Oct Aug Sep Oct Dec Apr Apr Nov Dec Nov May May Mar Jul Mar Jul Jan Jun Jan Jun Feb Feb Apr Aug S
Slide 7: Core business TCE earnings
Handysize Core Business TCE US$/day 20,000 Reversal of Handysize freight tax Average daily TCE earnings in 2024 provision of US$8.6 million resulted in TCE +US$1,280/day in 4Q24 ▪ Handysize: US$12,840, up 5% YoY 15,000 $13,740 $14,000 ▪ Supramax: US$13,630, down 1% YoY $12,770 $12,570 +1,280 +1,690
Slide 8: Core Business Operating Activity
Core Business Operating Activity Handysize Performance vs Index (BHSI)* Supramax Performance vs Index (BSI)* Operating Activity Margin US$/day US$/day US$/day 8,000 Scrubber contribution 8,000 Scrubber contribution 6,000 Margin Relative performance Relative performance 6,000 6,000 4,000 3,620 4,000
Slide 9: Handysize owned and chartered cost breakeven
2023 2024 Indicative Owned Fleet Cash Breakeven before G&A Finance Cost US$/Day Depreciation Finance Cost Opex Cost US$4,710/day 20,000 Opex Cost US$110 US$4,600 18,000 16,000 14,000 12,330 ▪ Increase in long-term chartered vessel costs 12,150 due to net increase in number of long-term 12,000 charte
Slide 10: Supramax owned and chartered cost breakeven
2023 2024 Indicative Owned Fleet Cash Breakeven before G&A Finance Cost US$/Day Depreciation Finance Cost Opex Cost US$5,130/day 20,000 Opex Cost US$190 US$4,940 18,150 18,000 16,310 16,000 14,000 ▪ Decrease in long-term chartered vessel costs 12,000 due to redelivery of higher-cost long-term 10,180
Slide 11: Financial Review
Slide 12: Income statement summary
US$million 2024 2023 Revenue 2,581.6 2,296.6 Owned vessel costs Voyage expenses (1,099.6) (1,015.1) 2024 2023 Opex (197.0) (210.1) Time-charter equivalent ("TCE") earnings 1,482.0 1,281.5 Depreciation (153.7) (150.5) Finance (6.2) (5.4) Owned vessel costs (356.9) (366.0) Chartered vessel costs (927.
Slide 13: Cash flow and liquidity movement
US$ Million 1 2 3 4 5 6 900 1▪ Operating cash inflow was US$258.9 million, inclusive of all +44 long and short-term charter hire payments +259 800 2▪ Realised US$44 million from sale of 5 Handysize vessels 700 -128 ▪ US$42.8 million for 1 Ultramax and 1 Supramax vessels -66 3 delivered into our flee
Slide 14: Balance sheet and net cash
US$million 31 Dec 2024 31 Dec 2023 ▪ Net cash of US$19.7 million PP&E 1,698.7 1,796.7 ▪ As at 31 December 2024, we had 59 unmortgaged vessels Total assets 2,414.0 2,432.5 ▪ We prioritise the allocation of capital to maximise shareholder value: Total borrowings 262.3 300.4 ▪ Maintain a robust, safe a
Slide 15: Market Outlook
Slide 16: Dry bulk trade volume forecasts
2024E Dry Bulk Trade Volumes YOY 2025F Dry Bulk Trade Volumes YOY ▪ Minor Bulk: Broad-based increased trade Million Tonnes Coal 1,363 3.6% Million Tonnes Coal -1.9% 1,337 volume of about 2.3% for minor bulks Iron Ore 1,596 3.4% Iron Ore -0.4% 1,590 including cement and clinker, ores and concentrates
Slide 17: Fleet supply development and age profile
Total Dry Bulk Supply Development Handysize/Supramax Supply Development % of Total Fleet % of Total Fleet ▪ Minor bulk fleet is forecast to grow 4.4% due 5% 5% 4.1% to more deliveries in 2025 from orders placed 4.4% 4% 4% 3.6% in strong market of 2021-22, while forecast 3.2% 3.5% 3% 2.9% 3.1% 3.0% 3
Slide 18: Suez and Panama Canal transits
DWT m % Daily Suez Canal Transits (7-Day Moving Average) of Total Fleet 14 Dec – near-miss incident involving a 0.8% vessel resulting in pause of major liner Containership vessels through Red Sea ▪ Transits through Panama Canal normalised after Bulkcarrier 0.7% rainfall increased since rainy season
Slide 19: Market outlook for 2025
▪ Global commodity demand is expected to remain steady in 2025 despite ▪ Increased protectionism is anticipated, which could negatively impact easing of iron ore and coal demand - US/China/India/ASEAN demand support global economy broad-based minor bulk demand ▪ Trade tariffs and widening deficits i
Slide 20: Strategic Focus
Slide 21: Growth and renewal of our fleet
Ultramax/Handysize Newbuild and 10-Year-Old Secondhand Vessel Values ▪ We continue to focus on the growth and renewal of our fleet US$m by: 40.00 Ultramax Newbuild (61-64.5K) ▪ Acquiring modern second-hand vessels Ultramax Secondhand 10YO (61K ECO) ▪ Selling our older and less efficient vessels 35.0
Slide 22: Ordering low-emission vessel newbuildings
▪ Late 2024 was the right time for us to order LEVs with delivery in Vessel DWT Expected Delivery Seller Consideration 2028-2029 given current orderbook, fleet age profile, emissions Type regulations development, shipyard capacity and expected Nihon Shipyard/ Ultramax 64,000 Dec 2028 US$46.5m accele
Slide 23: Maximising optionality with long-term charters
No. of Handysize Newbuilding No. of Ultramax Newbuilding No. of Handysize Newbuilding No. of Ultramax Newbuilding Delivered (no scrubber) (no scrubber) (50% share of scrubber benefits) (50% share of scrubber benefits) Maximising optionality ▪ 17 long-term inward charters of both Handysize and Supram
Slide 24: Strategic priorities
Market Position Capital Allocation ▪ Always be fully customer and cargo focused ▪ Limited Committed CAPEX ▪ Grow our position as both an owner and operator in the minor bulk ▪ Maintain a robust and flexible capital structure with high liquidity, enabling counter- space cyclical investment ▪ Maintain
Slide 25: Forward-looking statements 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, uncertainti
Slide 26: Appendix
Slide 27: China dry bulk seaborne imports
Growth in China Dry Bulk Quarterly Seaborne Imports YoY YoY% Change +100% ▪ Seaborne coal demand remained healthy due to energy security concerns, despite a rise in hydroelectric and +80% domestic coal production in China ▪ In 2024, main minor bulk import drivers included bauxite, +60% salt and fore
Slide 28: Global economic growth and inflation outlook
2024 4.8% 4.8% 2024 2025 2026 2025 2026 2024 2025 2026 2024 2025 2026 3.2% 3.2% 3.2% 3.3% 3.3% 4.6% 2.8% 2.8% 2.7% 2.2% 2.1% 4.5% 4.5% 1.2% 1.0% 1.4% 0.8% 0.8% Oct Jan Oct Jan Jan Oct Jan Oct Jan Jan Oct Jan Oct Jan Jan Oct Jan Oct Jan Jan 24 25 24 25 25 24 25 24 25 25 24 25 24 25 25 24 25 24 25 25
Slide 29: Orderbook by vessel size
8.8% 14 14% 0.4% (10,000–40,000 dwt) (40,000–70,000 dwt) 12.0% 12 12% 0.3% (70,000–100,000 dwt) 13.7% 12 13% 0.6% (100,000+ dwt) 7.8% 11 5% 0.2% 10.4% 13 10% 0.4% Source: Clarksons Research, data as at February 2025 ^ Data as at 21 February 2025
Slide 30: Pacific Basin at a glance
▪ We operate one of the world’s largest fleets of interchangeable modern Handysize and Supramax vessels, equipping us for efficient trading and reliable service any time and anywhere ▪ Our Core fleet consists of 128 Handysize and Supramax vessels, including chartered vessels in our Operating busines
Slide 31: Our focus on Handysize and Supramax
Tankers for oil, gas & chemicals The dry bulk industry carries dry commodities and other non- containerised cargo. Larger vessels including Capesize and Panamax carry mainly iron ore, coal and grain. We specialise in the versatile, mid-size, geared Handysize and Supramax vessels that carry a wide ra
Slide 32: Diversified customers, cargoes and geography
phy, s 600+ a e ogr argo c us e c to nd er g om ied a m s er cust ersif sg Div ▪ More diverse customer, cargo and geographical lob ally exposure enables high utilisation ▪ A segment where scale and operational expertise make a difference 44 r e pr e s e ▪ Better daily TCE earnings driven by a high l
Slide 33: Vessels in operation
112 Vessels 17 LT 129 148ST 277 Total Total owned Chartered Chartered Vessels in Operation Total Average Capacity Age Long-term Short-term Owned Chartered Sub-total Chartered1 Total (million dwt) Costs Owned Owned fluctuate with Substantially fixed costs market Handysize 60 13 73 54 127 2.1 14 Supra
Slide 34: Global offices and fronthaul/backhaul routes
11 commercial offices 4 technical & crewing offices Our Hong Kong headquarters is home to executive management, commercial, technical, crewing and all central functions “Fronthaul” refers to shipping routes where there is high demand for vessels to transport commodities to areas where those commodit
Slide 35: Cargo mix
Minerals 11% Agricultural Products & Related 28% Salt 5% -1pp 11% Grains & Agricultural Products 16% - Sand & Gypsum 5% +1pp Fertiliser 10% -1pp 11% 28% Soda Ash 1% - Sugar 2% -1pp 30% Energy 17% 17% 15% Coal 11% +2pp Petcoke 5% - Construction Materials 28% Wood Pellets 1% - Cement & Cement Clinkers
Slide 36: Carbon intensity and net zero target
Carbon Intensity (EEOI) Grams CO2 per tonne-mile 15 14.1 ▪ We target net zero emissions by 2050 We target an interim checkpoint EEOI of 10 about 6.7 by 2023, ▪ We target an interim checkpoint EEOI of about 6.7 by 2023, which is over which is over 50% less than our 2008 baseline 50% less than our 200
Slide 37: Emissions regulations
Speed reduction Supply inefficiency Accelerate scrapping of older, less efficient vessels ▪ First year of ratings ▪ Vessels will be rated A–E based on actual fuel ▪ 70% for 2025 consumption and distance travelled ▪ First year of measurement ▪ Entered into force from Jan 2025 ▪ Vessels rated D (for 3
Slide 38: Cargo cover for 2025
Handysize Supramax US$/Day US$/Day ▪ We have covered 92% and 100% of our Handysize and 14,000 $13,480 14,000 $12,610 $12,680* Supramax vessel days for the first quarter of 2025 at $12,400* US$10,770 and US$12,680 per day respectively 12,000 $11,170 12,000 $10,770* 10,000 $10,160 $10,100* 10,000 ▪ We
Slide 39: Vessel days and long-term charter costs
Handysize Supramax Handysize Supramax Days 2023 2024 2023 2024 Year Vessel days Average cost (US$) Vessel days Average cost (US$) Core business revenue days 28,420 27,010 20,230 19,560 2025 3,410 12,670 1,290 14,430 – Owned revenue days 24,960 22,750 17,070 17,700 2026 2,530 13,340 1,400 15,050 – Lo
Slide 40: Scrubber benefits
▪ Scrubber investment was made prior to implementation of the IMO 2020 sulphur cap, which allows us to comply with the rules while using High-Sulphur Fuel Oil (“HSFO”) ▪ Savings achieved by using HSFO and benefitting from the spreads between HSFO and Low-Sulphur Fuel Oil (“LSFO”) are referred to scr
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