P&L
US$million | 1H 2024 | 1H 2023 |
EBITDA | 157.9 | 189.1 |
Underlying profit | 43.9 | 76.2 |
Net profit | 57.6 | 85.3 |
Core Business Contribution | ||
US$million | 1H 2024 | 1H 2023 |
Handysize | 41.1 | 62.7 |
Supramax | 35.7 | 33.4 |
Operating Activity | ||
1H 2024 | 1H 2023 | |
Total contribution (US$million) | 7.8 | 17.0 |
Margin per day (US$) | 550 | 1,550 |
Returns | ||
1H 2024 | 1H 2023 | |
Return on equity (annualised) | 6% | 9% |
Dividend (HK cents) | 4.1 | 6.5 |
Total shareholder return | (2)% | 0% |
Balance Sheet | ||
US$million | 30 Jun 2024 | 31 Dec 2023 |
Available committed liquidity | 537.4 | 549.2 |
Net borrowings | 32.2 | 38.9 |
- Generated an EBITDA of US$157.9 million, underlying profit of US$43.9 million and a net profit of US$57.6 million respectively
- Net borrowings of US$32.2 million, with net gearing of 2%
- Return on equity 6% (annualised)
- The Board has declared an interim basic dividend of HK4.1 cents per share, which amounts to US$27.6 million, representing 50% of our net profit for the period (excluding vessel disposal gains)
US$m | Cash Distributions to Shareholders | |||||
1,400 | ||||||
+53.0 | ||||||
1,200 | ||||||
+25.4 | ||||||
+52.8 | ||||||
+27.6 | ||||||
+217.9 | +14.6 | |||||
+38.2 | ||||||
1,000 | ||||||
+716.2 | ||||||||
800 | ||||||||
600 | ||||||||
400 | ||||||||
200 | ||||||||
+86.5 | ||||||||
+14.3 | +21.8 | +12.9 | ||||||
0 | ||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 1H | 2024 2H |
- Since 2021, we have generated profits of US$1.7bn, we paid and declared US$1.1bn in dividends to shareholders, or 65% of net profits
- In addition, we announced the launch of a share buyback programme of up to US$40 million, to be completed by the end of 2024
- Since the commencement of the share buyback programme, we have repurchased and cancelled approximately 42.7 million shares for a consideration of approximately US$14.6 million
- We aim to maintain a robust and flexible capital structure throughout the shipping cycles to meet our commitments, strategic objectives and maximise shareholder returns
Total Dividend Paid | 1H24 Dividend (Declared) | Share Buyback | Remaining Share Buyback | ||||
Handysize Market Spot Rates (BHSI) | Supramax Market Spot Rates (BSI) | ||||||||||||
US$/day net* | 38k dwt (tonnage adjusted^) | US$/day net* | 58k dwt | ||||||||||
35,000 | 35,000 | ||||||||||||
30,000 | 30,000 | ||||||||||||
25,000 | 25,000 | ||||||||||||
20,000 | 20,000 | ||||||||||||
15,000 | 15,000 | $14,120 | FFA Average* | ||||||||||
$12,030 | FFA Average* | $14,530 | |||||||||||
$12,510 | |||||||||||||
10,000 | 10,000 | ||||||||||||
5,000 | 5,000 | ||||||||||||
- | - | Jan | Feb Mar | Apr May | Jun Jul Aug | Sep | Oct | Nov | Dec | ||||
Jan | Feb Mar Apr May Jun Jul Aug Sep Oct | Nov Dec | |||||||||||
2016-2020 | 2022 | 2023 | 2024 | 2024 (FFA) |
Data as at 01 August 2024
- Excludes 5% commission
- Spot market rates adjusted downward to reflect expected actual earnings given our average deadweight tonnage of our Core Handysize fleet is lower than the Baltic Exchange benchmark Source: Baltic Exchange
US$/day 20,000
15,000
Handysize Core Business TCE
Reversal of Handysize freight tax provision | ||
of US$11.6 million resulted in TCE | 1H24 | |
+US$1,690/day in 4Q23 | ||
$11,810 | ||
$13,550 | $12,770 | |
$12,570 | ||
$12,530 |
$13,750 | # |
$12,670 # |
Daily TCE earnings in 1H 2024:
10,000
5,000
0
$10,200
$11,050
87% | 60% |
of | of |
days | days |
- Handysize: US$11,810, down 9% YoY
- Supramax: US$13,690, flat YoY
1H 2025 Cover:
▪ Handysize: 7% of days covered at US$9,670 |
1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 2H24 Indicative Core Fleet P&L Breakeven Level incl. G&A for 1H24 = US$9,780
Supramax Core Business TCE
US$/day | Reversal of Supramax freight tax provision | ||||||||||||||||
of US$11.1 million resulted in TCE | 1H24 | ||||||||||||||||
20,000 | |||||||||||||||||
+US$2,150/day in 4Q23 | $13,690 | ||||||||||||||||
$16,430 | |||||||||||||||||
15,000 | $13,630 | $13,760 | $13,610 | $13,780 | $13,440 | # | $12,640 | # | |||||||||
10,000 | $11,540 | ||||||||||||||||
98% | 82% | ||||||||||||||||
5,000 | of | of | |||||||||||||||
days | days | ||||||||||||||||
0 | |||||||||||||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 2H24 | ||||||||||
Indicative Core Fleet P&L Breakeven Level incl. G&A for 1H24 = US$11,030
▪ Supramax: 19% of days covered at US$13,370 |
3Q 2024 FFA rates : | 4Q 2024 FFA rates : | ||
▪ | Handysize: $12,320 | ▪ | Handysize: $12,490 |
▪ | Supramax: $14,430 | ▪ | Supramax: $14,550 |
- As of early August 2024, indicative TCE rates only as voyages are still in progress;
Current values of scrubber benefits are approximately US$30 and US$250 per day across our Core Handysize and Supramax fleet respectively. When a vessel with a scrubber is assigned a cargo, its TCE rate may be higher due to the added benefit of the scrubber
^ Source: Baltic Exchange, data as at 1 August 2024, exclude 5% commission and Handysize FFA rates are tonnage adjusted
Core Business
Operating Activity
Handysize Performance vs Index (BHSI)*
US$/day
Scrubber contribution Relative performance
540 | 1,130 | ||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q |
22 | 22 | 22 | 22 | 23 | 23 | 23 | 23 | 24 | 24 |
- In 1H24, we outperformed the average Handysize (BHSI 38k dwt tonnage-adjusted) index* by US$840 or 8% per day
- Handysize vessel outperformance affected by high-costshort-term chartered vessels
- Outperformance will be negatively impacted in an upwardly moving freight rate environment
- In 1H24, scrubbersfitted to our two coreHandysize vessels contributed US$30 per day to outperformance
Supramax Performance vs Index (BSI)*
US$/day
Scrubber contribution Relative performance
1,300
(480) | |||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q |
22 | 22 | 22 | 22 | 23 | 23 | 23 | 23 | 24 | 24 |
- In 1H24, we outperformed the average Supramax (BSI 58k dwt) index* by US$410 or 3% per day
- Supramax vessel outperformance affected by high- cost short-term chartered vessels
- Outperformance will be negatively impacted in an upwardly moving freight rate environment
- In 1H24, scrubbersfitted to our 33 coreSupramax vessels contributed US$720 per day to outperformance
Operating Activity Margin
US$/day
Margin
510 | 580 | |||||||||||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | |||||||||||
22 | 22 | 22 | 22 | 23 | 23 | 23 | 23 | 24 | 24 |
- In 1H24, our Operating activity generated a margin of US$550 per day over 14,210 operating days
- Over 14,210 operating days in 1H24, an increase of 29% YoY (1H23: 11,000 days)
- We currently operate approximately 154 short-term chartered vessels, with a focus to increase operating days on a year-on-year basis
*Excludes 5% commission / BHSI 38,000 dwt (tonnage adjusted) / BSI 58,000 dwt
US$/Day 20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
FY23
12,150 | |
8,130 | 8,610 |
90 | |
3,200 | |
4,840 |
1H24
Finance Cost
Depreciation
Opex Cost
12,510 | |
8,020 | 8,680 |
120 | |
3,400 |
4,500
Indicative Owned Fleet Cash Breakeven before G&A
Finance Cost | Opex Cost | US$4,620/day | ||||
US$120 | US$4,500 | |||||
▪ Positive impact from normalisation of crew costs |
after pandemic - particularly benefitted our |
Handysize vessels which have higher proportion |
of Chinese seafarers |
▪ Increased depreciation relates to higher dry |
docking costs and investments in fuel-efficiency |
enhancements |
▪ Finance costs increased due to higher interest |
No. of Vessel*
Owned
65
Long-Term Chartered
11
Blended
76
Owned
64
Long-Term Chartered
12
Blended
76
expenses and lower interest income |
Avg. DWT*
34,670 | 38,510 | 35,230 | 34,700 | 38,640 | 35,320 |
Indicative Core Fleet P&L Breakeven Level incl G&A = US$8,680 + US$1,100 (Owned G&A) = US$9,780/day * Fleet as at 31 December 2023 and 30 June 2024
US$/Day 20,000
18,000
16,000
14,000
12,000
FY23
18,150
1H24
Finance Cost
Depreciation
Opex Cost
17,370
Indicative Owned Fleet Cash Breakeven before G&A
Finance Cost | Opex Cost | US$5,120/day | ||||
US$210 | US$4,910 | |||||
▪ Anticipate additional decreases in long-term |
chartered vessel costs as higher-costlong-term |
10,000
10,180
8,730
8,940
9,930
chartered vessels are scheduled to be |
8,000
6,000
4,000
2,000
0
180
3,640
4,910
210
3,820
4,910
redelivered in 2024 |
▪ Increased depreciation relates to higher dry |
docking costs and investments in fuel-efficiency |
technology |
▪ Finance costs increased due to higher interest |
No. of Vessel*
Owned
49
Long-Term Chartered
8
Blended
57
Owned
50
Long-Term Chartered
5
Blended
55
expenses and lower interest income |
Avg. DWT*
58,540 | 61,070 | 58,930 | 58,640 | 60,080 | 58,810 |
Indicative Core Fleet P&L Breakeven Level incl G&A = US$9,930 + US$1,100 (Owned G&A) = US$11,030/day * Fleet as at 31 December 2023 and 30 June 2024