Pacific Basin Shipping : 2024 Interim Results

About this update from Pacific Basin Shipping Limited

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

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