Slide 1: Pacific Basin 3Q16 Trading Update
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Slide 2: Freight Market Improves From Very Low Base
Freight Market Improves From Very Low Base Baltic Handysize Index (BHSI) & Baltic Supramax Index (BSI) US$/day net* $10,000 $9,000 $8,000 30 Sep 2016: $7,000 BSI: $6,750 $6,000 BHSI: $5,790 $5,000 BHSI: $2,563 $4,000 $3,000 BSI: $2,417 $2,000 $1,000 $0 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-1
Slide 3: Our Performance in 3Q16 and cover in 2017
Our Performance in 3Q16 and cover in 2017 US$/day Handysize Supramax 3Q PB TCE per day 3Q16 $7,040 $7,360 PB TCE per day YTD $6,400 $6,430 2016 YTD Market Index Rate YTD $4,450 $5,300 PB Outperformance YTD 44% 21% PB TCE Cover Rate for 4Q16 $7,960 $7,460 4Q % of Contracted Days Covered 74% 75% PB TC
Slide 4: Third Quarter 2016 PB Update
Third Quarter 2016 PB Update Put options on 2018 convertible bonds were exercised in Sep, to be repaid in Oct 2016 Reduced oil & gas, mining & construction leading to deterioration in tug & barge values: Recent towage disposals expected to generate US$3m cash, but US$2m book loss Additional
Slide 5: Global Dry Bulk Demand
Global Dry Bulk Demand Expected Global Dry Bulk Seaborne Trade Growth in FY 2016 (Volume) Million Tonnes YOY Change 2016 dry bulk volume expected to Iron Ore 1,411 4% grow 1% YOY Coal 1,108 -2% Sub major bulk total 1% 2016 dry bulk effective demand 2,519 expected to grow 1.8% (YTD: 1.5%) Copper
Slide 6: Self Correcting Supply Factors
Self Correcting Supply Factors New Vessel Ordering is Down Fleet Growth is Reducing Per quarter annualised 18% in % of fleet (dwt) 16% Total Dry Bulk 25% YOY Net Fleet 14% Growth (%) 20% 12% 10% 15% 8% 10% 6% 4.3% 4% 2% 5% Lowest fleet growth since Aug 2003 2.1% 2% 0% 0% 0% 2012 2013 2014 2015 2016
Slide 7: Dry Bulk Supply & Demand
Dry Bulk Supply & Demand Supply: New Deliveries / Scrapping Demand / Supply Mil Dwt YOY % Change Estimate FY2016 net fleet growth about 2% 80 8 New deliveries partly offset by scrapping (Annualised 6% new deliveries vs 4% scrapping) 60 6 Positive factors: Fewer & fewer ships delivering in 20
Slide 8: Handysize Vessel Values
Handysize Vessel Values US$ Million 55 50 45 40 35 30 30 Sep 2016 25 Newbuilding (35,000 dwt): US$19.5m 20 15 10 5 years (32,000 dwt): US$10.5m 5 04 05 06 07 08 09 10 11 12 13 14 15 16 Significant gap between newbuilding and secondhand values discourages new ship ordering which was negligible in
Slide 9: Borrowings and Capex
Borrowings and Capex As in 2016 Interim Report Update after the exercise of put options of 2018 CB Cash Position as at 30Jun: US$406m 2018 CB 2018CB repayment on 24Oct: US$124m repay in Oct16 Bank borrowings: US$642m , undrawn committed bank facilities US$272m Convertible bonds, face value US$249m,
Slide 10: Our Outlook and Strategy
www.pacificbasin.com Our Outlook and Strategy More on financial details: 1H16 Interim Report Dry Bulk Outlook Increased cargo volumes have supported stronger rates since Feb lows Pacific Basin Benefits: Minor bulk demand is not so minor – growing & less dependent on China Now fully Handy focused
Slide 11: 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,
Slide 12: Pacific Basin Dry Bulk – Earnings Cover
Appendix: Pacific Basin Dry Bulk – Earnings Cover Handysize Supramax Contracted Revenue Days 48,860 Days 26,980 days 45,630 Days 4Q 4Q 4Q 75% 4,950 9,570 59% 20,450 days Days $7,460 10,910 36,900 Days days $8,820 74% 4Q Days $7,960 79% 3,860 $8,400 days FY16 22,030 95% 11,390 days 39,290 34,720 FY16
Slide 13: Pacific Basin Dry Bulk – Diversified Cargo
Appendix: Pacific Basin Dry Bulk – Diversified Cargo Our dry bulk cargo volume (1 Jan 2016 – 26 Sep 2016) Diverse range of commodities reduces product risk China and North America were our largest market 60% of business in Pacific and 40% in Atlantic 3Q16 Trading Update 13
Slide 14: Fleet List – October 2016
Appendix: Fleet List – 1 October 2016* Pacific Basin Dry Bulk Fleet: 242 Average age of core fleet: 7.1 years old Owned Chartered Total Delivered Newbuilding Delivered* Newbuilding Handysize 70 7 65 5 147 Supramax 17 4 72 0 93 Post-Panamax 1 0 1 0 2 Total 88 11 138 5 242 www.pacificbasin.com Fleet D