Interim Report 2025

INTERIM REPORT 2025

STOCK CODE: 2343

#WithYouForTheLongHaul

OUR BUSINESS

Who We Are

We own and operate dry bulk cargo vessels, and our business is customer and cargo focused, providing over 600 industrial buyers, traders and producers of dry bulk commodities with a safe, reliable and competitive freight service under spot and long-term cargo contracts. We are listed in Hong Kong and operate globally, with local offices in key locations around the world and a large fleet of ships trading worldwide to service our international cargo customers

This photo is a view from the Bridge of m/v Paqueta Island in Chile

Front cover photos show our colleagues at work, m/v Barrow Island in port in Spain, and a PB vessel loading logs in New Zealand

Back cover photos show our seafarers conducting lifeboat checks and our m/v Cook Strait team

p.4 Our Business

406 shore staff in 14 offices around the world 4,300 crew supporting the needs of our 600+ industrial customers 260+ vessels completed 1,100 voyages in 1H 2025

About Our Fleet

We operate one of the world's largest fleets of modern Handysize and Supramax vessels. Our geared (craned) bulk carriers are highly versatile self-loading and self-discharging vessels, and are laden over 90% of the time with cargoes comprising mainly non-fossil fuel commodities. This minor bulk segment offers

benefits of diversification in terms of geography, customers and cargoes, enabling triangular trading, high laden utilisation and greater carbon efficiency

CONTENTS

1H 2025 Highlights

1H 2025 Highlights

1. Business Highlights

2. Financial Highlights

Sustainability & Governance

Sustainability &

Governance

25 Sustainability Highlights

31 Corporate Governance

34 Other Information

Governance

Our Business

1. Our Fleet

2. Our Global Reach 07 Our Cargo Volumes

The Half Year in Review

The Half Year in Review

09 Chief Executive's Review

12 Market Review

17 Our Performance

20 Core Business Vessel Costs

22 Cash and Borrowings

Financial Results

Financial Results

39 Group Performance Review

40 Financial Statements

44 Notes to the Financial Statements

53 Auditor's Review Report

Thank you to our several Pacific Basin colleagues from across our owned fleet and office network who produced all the photos in this report

Key to navigation symbols

ESG

Linkage to related details within the Interim Report Linkage to related details on our website https://www.pacificbasin.com Linkage to related details in our Sustainability Report 2024 High-level KPIs (Key Performance Indicators)

‌1H 2025 Highlights

2

BUSINESS HIGHLIGHTS

Financial Resilience in Weaker

$189m

$158m

$122m

$85m

$58m

$549m

9%

6%

$548m $550m

Market Conditions

• In the first half of 2025, we generated an underlying profit of US$21.9 million, a net profit of US$25.6 million and EBITDA of US$121.5 million, yielding a return on equity of 3% (annualised) with basic EPS of HK3.9 cents

• We maintain a strong cash position with net cash of US$66.4 million and available committed liquidity of US$549.9 million

• In July 2025, we successfully concluded a new US$250 million

  
  
  

  1H 1H 1H

  
  
  

  1H 1H

  $26m

  
  
  

  1H

  3%

  
  
  
  
  
  

  1H 1H 1H

  $282m $296m

  
  
  

  $262m

  Cash and deposits

  
  
  

  1H

  syndicated sustainability-linked 7-year secured reducing revolving credit facility, which strengthens our financial capacity and supports our growth strategy

• The Board has declared an interim dividend of HK1.6 cents per share, which represents 50% of our net profit for the period, excluding vessel disposal gains

  2023 2024 2025

  EBITDA (US$)

  2023 2024 2025

  Net Profit (US$)

  2023 2024 2025

  Return on Equity

  2023 2024 2025

  Available Committed Liquidity (US$)

  as at 31 December and 30 June

  Business Performance

• In the first half of 2025, our core business achieved Handysize and Supramax daily time-charter equivalent ("TCE") earnings of US$11,010 and US$12,230 respectively, generating a total contribution of US$50.7 million before overheads

• We significantly outperformed the average Handysize (BHSI 38k dwt tonnage adjusted) and Supramax (BSI 58k dwt) indices by US$2,320 per day and US$3,480 per day respectively

• Our operating activity achieved a daily margin of US$710 over 14,200 operating days, generating a contribution of US$10.1 million before overheads

• Our P&L break-even was US$10,060 per day for core Handysize vessels and US$10,330 per day for core Supramax vessels in the period

• Our overheads and operating expenses remain well controlled and sector leading

  Our Fleet

• As at 30 June 2025, we owned 107 Handysize and Supramax/Ultramax vessels and have around 266 owned and chartered vessels on the water overall

• The estimated market value of our Handysize and Supramax fleet was US$1,802.0 million, significantly above our net book value of US$1,604.5 million

• We continued our fleet renewal initiatives to support our growth strategy and our transition towards a low-carbon future. During the first half of 2025, we sold and delivered three smaller and older Handysize vessels and two older Supramax vessels with an average age of 21 years, and we exercised purchase options on three Japanese-built Handysize vessels with an average age of six years

  Optimistic Outlook Despite Weaker Markets in Early 2025

• Dry bulk shipping markets were weaker in the first half of 2025 than in the same period in the last four years, due to an unusual confluence of

  commodity-specific factors affecting the three major dry bulk commodities in the first quarter, before recovering in the second quarter

• Despite weaker markets in the early part of the year, we remain optimistic about the future of the dry bulk sector; in the near term, the market is firming and, while downside risk remains, we do not foresee any significant market decline

• Longer term, we stand to benefit from faster growing minor bulk and grain demand, with the global green energy infrastructure buildout as well as continuing rapid urbanisation in developing economies boosting trade in steels, cement and construction materials

• The supply-side outlook is encouraging, with the recent flurry of newbuilding deliveries absorbed by the market without significant distress, while dry bulk newbuild ordering activity is now limited by tight availability of shipyard capacity that has been largely taken up by other shipping sectors

Find out more in our Chief Executive's Review on p.9

‌FINANCIAL HIGHLIGHTS

1H 2025 Highlights

3

7

1 EBITDA (earnings before interest, tax, depreciation and amortisation) is gross profit less indirect general and administrative overheads, excluding: depreciation and amortisation; exchange differences; share-based compensation and unrealised derivative income and expenses

‌OUR BUSINESS

1. Our Fleet

2. Our Global Reach 07 Our Cargo Volumes

Our Supramax m/v Barracuda Island discharging cement clinker in Douala, Cameroon

‌OUR FLEET

Our Business

5

Top Ten

5%

22%

Our geared bulk carriers are highly versatile self-loading and self-discharging vessels

Our vessels transport mainly minor bulks including agricultural products, raw materials, construction materials and other essential bulk commodities

Our cargo mix comprises mainly non-fossil fuel commodities p.7 Our Cargo Volumes

73%

Handysize

(<20 years old)

We operate approximately 5% of the global 25,000-40,000 dwt Handysize fleet of less than 20 years old

80%

4%

Supramax

(<20 years old)

16%

Top Ten

Our Handysize m/v Imabari Logger loading logs in Prince Rupert

We operate approximately 4% of the global 40,000-70,000 dwt Supramax fleet of less than 20 years old

Pacific Basin Other Top Ten Others

Source: Pacific Basin, Clarksons Research

1 Average number of short-term and index-linked vessels operated in June 2025

2 Supramax vessels in excess of 60,000 dwt are generally referred to as Ultramax

3 The Company owns one Capesize vessel which is chartered out on a long-term bareboat charter

4 Estimated market value reflects the latest estimated vessel values of our owned fleet based on composite broker valuations

‌Our Business

6

OUR GLOBAL REACH

Vancouver

London

Dalian

Tokyo

Stamford

Dubai

Hong Kong

Manila

Iloilo

Singapore

Rio de Janeiro

Durban

Melbourne

Santiago

14 office locations

11 commercial offices

4 technical & crewing offices

Examples of key minor bulk trade routes

fronthaul routes backhaul routes

"Fronthaul" refers to shipping routes where there is high demand for vessels to transport commodities to areas where those commodities are needed. Conversely, "backhaul" refers to shipping routes where vessels transport commodities from areas with low demand for shipping services back to areas with higher demand

‌OUR CARGO VOLUMES

42.0 Million Tonnes Transported in 1H 2025 (44.7 Million Tonnes Transported in 1H 2024)

Our Business

7

Minerals 11%

Salt

Sand & Gypsum Soda Ash

Energy

Coal Petcoke Wood Pellets

Metals

Ores Concentrates Alumina Others

6%

4%

1%

16%

14%

2%

0%

18%

8%

6%

2%

2%

Agricultural Products & Related 29%

10%

15%

30%

Grains & Agricultural Products Fertiliser

Sugar

17%

10%

2%

16%

1H 2024

29%

Construction Materials

Cement & Cement Clinkers Steel & Scrap

Logs & Forest Products

26%

14%

8%

4%

1H 2025

Our Cargo Loading & Discharging Activity by Volume in 1H 2025 (1H 2024)

Middle East & India 11%

Africa 6%

Australia & New Zealand 13%

11% 12%

5%

Europe 9%

14%

28%

1H 2024

Asia 32%

(China 13%)

15%

South America 17%

15%

North America 12%

1H 2025

‌THE HALF YEAR IN REVIEW

09 Chief Executive's Review

12 Market Review

17 Our Performance

20 Core Business Vessel Costs

22 Cash and Borrowings

Our Supramax m/v Pelican Island sailing past m/v Imabari Logger in the Strait of Juan de Fuca

‌The Half Year in Review

9

CHIEF EXECUTIVE'S REVIEW

Positive Financial Results in Weaker Freight Market Conditions

In the first half of 2025, we generated an underlying profit of US$21.9 million, a net profit of US$25.6 million and EBITDA of US$121.5 million. This yielded a return on equity of 3% (annualised) with basic EPS of HK3.9 cents.

We always strive to maintain cost leadership. Our overheads and operating expenses remain well controlled and sector leading. Our cash flow remains stable through the market cycle.

Committed to Delivering Sound Shareholder Value

Martin Fruergaard

Chief Executive Officer

"Geopolitical turbulence is a defining feature of 2025 and we are prepared for the unexpected, closely watching market developments and ready to leverage the agility of our business model and our financial strength to pursue opportunities that may emerge."

p.39 Group Performance Review

Our core business generated US$50.7 million before overheads, with average Handysize and Supramax daily time-charter equivalent ("TCE") earnings of US$11,010 and US$12,230 per day respectively for the first half 2025, representing a decrease of 7%

and 11% respectively compared to the same period in 2024. We significantly outperformed the average Handysize (BHSI 38k dwt tonnage-adjusted) and Supramax (BSI 58k dwt) indices by US$2,320 per day and US$3,480 per day, or 27% and 40% respectively,

consistent with our usual high level of outperformance.

Our core business with its largely fixed costs is the main driver of our profitability, with a P&L break-even level for Handysize and Supramax vessels of US$10,060 and US$10,330 per day respectively.

We have covered 60% and 74% of our Handysize and Supramax vessel days for the second half of 2025

at US$11,680 and US$13,480 per day respectively, which is prudent while maintaining exposure to spot rates if the market continues to strengthen.

Our operating activity contributed US$10.1 million before overheads, representing 16% of our performance, and generating a margin of US$710

per day over 14,200 operating days. This represents a 29% improvement in margin on a similar volume of operating activity compared to the first half of 2024.

p.17 Our Performance

We have around 266 owned and chartered vessels on the water overall as at 30 June 2025.

Distributing dividends consistent with our payout policy

In view of our sound cash generation and strong balance sheet, the Board has declared an interim dividend of HK1.6 cents per share, which represents 50% of our net profit for the period, excluding vessel disposal gains.

Strong balance sheet

After total capital allocation of US$62.1 million, of which we spent an aggregate consideration of

about US$21.0 million buying back and cancelling approximately 93.1 million shares under our 2025 share buyback programme, and capital expenditure of approximately US$41.1 million, our financial position remains strong. The Company is debt free on a net basis with a positive cash position of US$66.4 million and available committed liquidity of US$549.9 million as at 30 June 2025.

p.22 Cash and Borrowings

In July 2025, we successfully concluded a new US$250 million syndicated sustainability-linked 7-year secured reducing revolving credit facility, with interest margin adjustments linked to our carbon intensity (EEOI) and crew safety (LTIF) performance which we prioritise among our most important ESG issues. This is our second sustainability-linked financing facility, which is well timed to cover the remaining pre-delivery instalments in our newbuilding programme and to be ready for any counter-cyclical growth opportunities, thus supporting our growth ambitions.

The Half Year in Review

10

Managing for value creation and growth

Growing our business is a continuous priority, and we will continue to renew, grow and optimise our fleet in a disciplined way that prepares us for a low carbon future and considers the cyclicality of dry bulk shipping. That means: acquiring modern second-hand vessels, while also selling older and less efficient vessels; placing additional low-emission vessel (LEV) newbuilding orders; taking newbuilding vessels on long-term charter with purchase options; and/or continuously looking for accretive M&A opportunities where the synergies and the strategic and cultural fit are compelling.

p.5 Our Fleet

Asset values are high relative to prevailing spot market earnings, supporting the current case for selling older and less efficient vessels. With charter rates low in relation to asset values, we

prefer long-term charter-in newbuilding ships with purchase options, while also exercising purchase options on attractively priced ships already

on charter. Such optionality is very valuable, especially in uncertain and volatile times.

We remain on the look-out for accretive M&A opportunities and, in view of the significant share discount relative to the market value of our assets, we also continue to repurchase our own shares which we consider more beneficial to our shareholders than acquiring second-hand vessels at current prices.

Relatively Resilient Demand Despite Geopolitical Turbulence

Dry bulk market rates were constrained by the usual seasonally slow first quarter as well as heightened geopolitical turbulence which undermined demand growth, while changing

supply chains and multiple inefficiencies reduced supply.

In the first half of 2025, dry bulk market earnings were below the same period in each of the last four years. Grain demand was subdued, as the largest corn importer, China, harvested its fourth consecutive record domestic crop. Iron ore loading operations were disrupted by a series

of cyclones hitting Western Australia. And coal demand was subdued after the largest importer, China, achieved its policy target at the end of last year of building stocks to 15% of annual consumption.

However, the tonne-mile slowdown was concentrated in the first quarter, with a sharp recovery in the second quarter. Bauxite shipments from Guinea continued a steep ramp up. Brazil had a record soybean harvest, with three quarters of its exports going long haul to China. Mining majors rushed to catch up with their iron ore export targets after the cyclones. And demand for better housing and infrastructure in developing economies drove a recovery in

the cement and clinker trade from last year's depressed levels.

The net effect of the two quarters was that total dry bulk tonne-miles reduced -3% year on year, with minor bulk tonne-miles up +7%, grain tonne-miles down -15%, iron ore tonne-miles down -4%, and coal tonne-miles down -9%.

p.12 Market Review

Short-Term Supply Pressure Partly Contained by Market Inefficiencies

Global dry bulk net fleet growth persisted at

+3% year on year in the period, outpacing demand growth as newbuildings ordered in the 2021/22 boom steadily delivered through the first half of 2025. The market has absorbed these newbuilding deliveries without significant distress. Total dry bulk newbuilding deliveries decelerated

-5% year on year to 18.1 million dwt, against scrapping which decelerated -3% year on year to

2.2 million dwt.

p.14 Supply

Despite this supply growth, market utilisation and earnings were relatively resilient due to inefficiencies that made the global fleet less productive. The recovery in Panama Canal transits following low water levels in 2024 has stalled in 2025 at around 80% of normal levels. Meanwhile, Suez Canal transits continue to fall. The outbreak of war in the region, albeit for only twelve days, means more ships will take longer, safer routes and we remain some way from a conclusive return to normal Red Sea and Suez Canal transits.

Port congestion has reemerged this year after some absence. Coal ports in Australia experienced heavy rains, causing delays which tied up Capesize and Panamax bulkers and indirectly affected all dry bulk segments. Our Handysize and Supramax segments have been directly impacted by congestion in Brazil, where a record soyabean crop combined with record demand for imported fertilisers, as well as strong West African demand for grains, steels, cement and aggregates has tied up more than 3% of the world's geared bulk carrier fleet in queues outside ports.

In addition, the global dry bulk fleet continues to slow down, driven partly by environmental regulations to reduce CO2emissions.

Decarbonisation

In April 2025, the International Maritime Organisation's Marine Environment Protection Committee agreed on an IMO net-zero framework requiring ships to gradually reduce their annual greenhouse gas fuel intensity (with economic penalties and benefits for under-compliance and over-compliance respectively) in order that the shipping industry achieves the climate targets set out in IMO's 2023 greenhouse gas (GHG) emissions reduction

strategy. Set to be formally adopted in October 2025 before entry into force in 2027, this framework is the first in the world to combine mandatory emissions limits and GHG pricing across an entire industry sector. It is expected to drive the transition to net-zero emissions by around 2050, and will likely encourage the early

retirement of older and less efficient vessels, and hence contribute to a more favourable supply-demand balance.

With the IMO's net-zero framework due to be adopted this October, green fuels are another priority for us and, following our newbuilding order last November for four Ultramax dual-fuel low-emission vessels (LEVs), we have signed a MOU with The Hong Kong and China Gas Company (Towngas) that will enhance

our access to green methanol marine fuel. We are also studying designs for Handysize LEV newbuildings so that we might soon commence our gradual transition to net-zero emission shipping in both our Ultramax and Handysize segments, while complying with increasingly stringent regulations.

Alongside with our green ships and green fuels programmes, we continue as always to leverage our technical decarbonisation, operational voyage optimisation and digitalisation capabilities to improve the energy efficiency of our existing conventionally-fuelled ships and optimise voyages for reduced fuel and carbon intensity.

p.26 Environmental Responsibility

The Half Year in Review

11

US Regulatory Developments

The United States Trade Representative (USTR) Section 301 investigation into China's dominance in shipbuilding and the SHIPS For America

Act, currently at committee stage in Congress, both have the potential to increase costs for our business and significantly impact the dry bulk shipping industry. The United States is the world's fourth largest exporter of dry bulk cargo and the second largest exporter using geared

bulk carriers, and represents a significant part of our business with 9% of our total worldwide port calls being in the US in 2024. If implemented

as currently formulated, these new rules could increase US port costs for us and increase freight costs for US importers and exporters by restricting the supply of ships able to call at US ports, potentially creating a two-tier market.

We have been closely monitoring and preparing for these USTR 301-related developments and readying contingency plans to maintain our competitiveness in the changing trade and tariff landscape. The detailed final rules due to be implemented in October will depend on how USTR 301 and trade tariff negotiations between the United States and China unfold in the coming months. Our ultimate objective is to ensure that Pacific Basin ships can continue to service our global customers freely and competitively to and via all safe ports and countries, including the United States.

Board and Leadership Changes

As previously announced, Ms. Kalpana Desai and Ms. Heather Wang joined our Board on 1 February 2025 as Independent Non-executive Directors, and Mr. Jimmy Ng joined the executive team on 12 May 2025 as our new Chief Financial Officer. We are grateful for the valuable contributions that they have already brought to our Board and Board committees and to our executive team respectively.

Optimistic about the Future of Dry Bulk Shipping

Despite weaker markets in the first half of 2025, we remain optimistic about the future of the

dry bulk sector. In the near term, the market is firming and, while downside risk remains, we do not foresee any significant market decline. Longer term, the geared bulk carrier segments in which we are engaged stand to benefit from faster growing minor bulk and grain demand, with the global green energy infrastructure

buildout as well as continuing rapid urbanisation in developing economies boosting trade in steels, cement and construction materials.

The supply-side outlook is similarly encouraging, with the recent flurry of newbuilding deliveries absorbed by the market without significant distress, while dry bulk newbuild ordering activity is now limited by tight availability of shipyard capacity that has been largely taken up by other shipping sectors. Additionally, the pressure and cost of decarbonisation regulations on a growing number of older, less-efficient, conventional-

fuel ships also add to the potential for structural undersupply in minor bulk shipping.

Meanwhile, we are prepared for uncertainties, challenges and opportunities, and will continue to monitor protectionist activity to ensure we can always trade our ships as widely and flexibly as possible.

We continue as always to cultivate our relationships and resources and take steps to ensure we are nimble, resilient, strong and high performing, so that we can continue our progress towards our vision to be the leading ship owner/ operator in the dry bulk shipping sector and the first-choice partner for all stakeholders.

A deck officer of m/v Badger Island checking stowage and lashing of steel coils

I thank my Pacific Basin colleagues at sea and ashore, and our cargo customers, shareholders and all our partners for their continued support.

Martin Fruergaard

Chief Executive Officer Hong Kong, 7 August 2025

‌The Half Year in Review

12

MARKET REVIEW

A weaker first half freight market than in the last few years

US$8,690 net

21% YOY

BHSI 38K (tonnage adjusted) Handysize 1H25 avg. market spot rate

US$8,750 net

34% YOY

BSI 58K Supramax 1H25 avg. market spot rate

Dry bulk shipping markets were weaker in the first half of 2025 than in the same period in the last four years. This was due to an unusual confluence of commodity-specific factors affecting the three major dry bulk commodities (grain, iron ore, and coal)

Handysize Market Spot Rates in 2022-2025 Supramax Market Spot Rates in 2022-2025 US$/day net* US$/day net*

in the first quarter, before all recovering in the second quarter. Disruptions to the usual efficient functioning of shipping markets also persisted, with the re-emergence of congestion after a long

35,000

30,000

25,000

20,000

35,000

30,000

25,000

20,000

2023

absence, and Suez Canal transits continuing to decrease.

The net effect is that freight rates in the first half of 2025 eased to US$8,690 net per day for Handysize (-21% year on year, tonnage-adjusted) and US$8,750 net per day for Supramax

(-34% year on year).

15,000

10,000

5,000

2023

2022

$10,860 2024

15,000

10,000

5,000

$13,300 2022

2024

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

* Excludes 5% commission

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: Baltic Exchange (BHSI 38,200 dwt (tonnage adjusted) and BSI 58,328 dwt), data as at 1 August 2025

Vessel values continued to soften

US$30.5m

17%

Benchmark five-year old second-hand Ultramax values YOY

Source: Clarksons Research, data as at June 2025

Second-hand values for modern assets continued their decline from the end of last year, although with a brief upward blip at the start of Q2. This decline was mainly due to the softer earnings environment and subdued outlook. Newbuilding prices also declined from last year's 16-year highs, albeit very slowly, which also added mild pressure on second-hand values.

p.16 Market Balance & Possible Market Drivers

The Half Year in Review

13

DEMAND

Tonne-mile demand impacted by unusual confluence of events

Oceanbolt data shows global tonne-mile demand fell by -3% year on year in first half 2025, led by the three major bulk commodities, while the minor bulks contributed positively.

Minor bulk tonne-mile demand rose +7% year on year. This was led by bauxite, as China's CHALCO continued to ramp up mining in Guinea. China's imports from the West African country totalled 79.7 million tonnes in first half 2025 (+41% year on year). Cement and clinker tonne-miles also bounced back +11% year on year, after a depressed first half 2024. Led by developing economies, this demonstrates the long-term resilience of this trade, as rising populations with growing per capita incomes demand better housing and infrastructure.

Grain tonne-mile demand fell -15% year on year, as China's imports fell to 61.4 million tonnes (-25% year on year). China harvested its fourth consecutive record crop, as it makes significant strides in seed technology. This impacted exports from two of its largest suppliers, Brazil (-5% year on year) and Ukraine (-9% year on year).

Coal tonne-mile demand fell -9% year on year. China is the largest importer, having increased its coal buying since 2021 when Beijing announced a policy of building inventories to 15% of consumption. It reached this target in the final weeks of

2024, after which seaborne imports decelerated sharply to 64.0 million tonnes in first half 2005 (-23% year on year), which hit exports from its major suppliers Indonesia (-4% year on year), Australia (-8% year on year), and Russia (-8% year on year).

1H 2025 Global Cargo Loading Volumes# YOY Change

Selected Minor Bulks* Grain

Iron Ore

Coal

+3%

-13%

-4%

-7%

* Minerals, non-coal energy, metals and minor ores, fertiliser, sugar and non-grain agricultural products, cement and clinker, logs and forest products, steel and scrap

Source: Oceanbolt, data as at July 2025, subject to revision

Changes in Global Dry Bulk Demand YOY change in billion tonne-miles

1,200

+5%

+7%

-4%

-9%

-15%

-4%

+2%

+1%

+10%

1,000

800

600

400

200

0

-200

-400

-600

-800

-3%

Iron ore tonne-mile demand fell -4% year on year, as cyclones

1H20 1H21 1H22

1H23 1H24

1H25

hit Australia, forcing key ports to close. However, since then, miners accelerated production to catch up with targets.

Australia's first half exports totalled 468.9 million tonnes (-3% year on year).

Iron Ore Coal Grains Minor Bulk

Source: Oceanbolt, data as at July 2025, subject to revision

‌The Half Year in Review

14

SUPPLY

Fleet growth was steady, but fleet efficiency declined

Total dry bulk fleet growth remained steady at +1.5% over the first half of 2025, with the emphasis shifting towards geared bulkers. Fleet growth for the Handysize and Supramax segments accelerated to

+2.3% over the period, while fleet growth in the larger Capesize and Panamax segments decelerated to +1.1%.

Total dry bulk newbuilding deliveries decelerated to 18.1 million dwt in the first half of 2025 (-5% year on year), as ships ordered during the 2021/22 boom hit the water. This was led by Handysize and Supramax deliveries accelerating to 9.2 million dwt (+11% year on year), while Capesize and Panamax deliveries decelerated to 8.9 million dwt (-17% year on year).

Overall Dry Bulk Supply Development

1.5%

Overall dry bulk capacity in 1H25

% of Total Fleet

5.0

4.0

Handysize/Supramax Supply Development

2.3%

Global Handysize/Supramax capacity in 1H25

% of Total Fleet

4.2%

4.3%

3.8%

3.4%

5.0

4.0

Meanwhile, at the other end of the age spectrum, total dry bulk scrapping fell to 2.2 million dwt in the first half of 2025 (-3% year on year), with Handysize and Supramax scrapping falling to 0.7 million dwt (-8% year on year), and Capesize and Panamax scrapping remaining stable at 1.5 million dwt (flat year on year)

The impact of fleet growth on the supply/demand balance is partially offset by an ongoing decline in fleet productivity. The Suez Canal continued to be disrupted, causing widespread re-routing of voyages around the Cape of Good Hope. A multi-year trend of slowing speeds continues, as operators try to limit CO emissions. And port

3.0

2.0

1.0

0.0

-1.0

3.1%

3.0%

3.1%

3.3%

3.0

2.0

1.0

0.0

-1.0

2

congestion in the South Atlantic tied up almost 3% of the Handysize

2023

2024

2025F

2026F 2023

2024

2025F

2026F

and Supramax fleet for long periods.

New Deliveries Deliveries Forecast

Clarksons forecasts total dry bulk fleet growth at +3.1% year on year in 2025, but effective supply growth will also be determined by efficiency factors. Speeds are widely expected to continue slowing, but port

Scrapping

Net Fleet Growth

Scrapping Forecast

congestion and the return of canal transits are wildcards.

Source: Clarksons Research, data as at July 2025

The Half Year in Review

15

ORDERBOOK

New ship ordering deterred by renewed regulatory uncertainty

The total dry bulk orderbook currently stands at 113.2 million dwt or 10.8% of the fleet. In the Handysize and Supramax segments, the orderbook is 39.7 million dwt or 10.4% of the fleet. This remains relatively low, both historically and compared to other shipping sectors, and suggests that supply growth will remain manageable for the next few years.

New ordering, which was already subdued due to uncertainty over new fuel technologies, high newbuilding prices and limited shipyard capacity, fell further to 9.7 million dwt in the first half of 2025 (-73% year on year), with Handysize and Supramax orders falling to 2.2 million dwt (-86% year on year). This was caused by

new uncertainty over the announcement of US protectionist actions against foreign ships arriving in US ports.

The SHIPS for America Act, which is currently at the committee stage of the legislative process, contains punitive fees for any owners with Chinese-built ships or ships on order at Chinese

Overall Dry Bulk Orderbook

% of Total Fleet

4.8%

50.5m

4.0%

41.8m

2.0%

20.6m

1.8%

18.2m

2.0%

20.9m

5.5

5.0

4.0%

41.8m

4.5

4.0

3.5

2.0%

20.6m

3.0

2.0%

20.9m

1.8%

18.2m

2.5

2.0

12% Shortfall

12% Shortfall

1.5

1.0

0.5

0.0

Handysize & Supramax Combined Orderbook

% of Total Fleet

4.8%

50.5m

4.4%

16.6m

3.5%

13.4m

2.8%

10.4m 2.5%

9.3m

2.5%

9.7m

5.5

4.4%

16.6m

5.0

4.5

3.5%

13.4m

4.0

2.8%

10.4m

3.5

2.5%

9.7m

2.5%

9.3m

3.0

2.5

11% Shortfall

11% Shortfall

2.0

1.5

1.0

0.5

0.0

shipyards. This deterred ordering of new ships in China, and with

Scheduled Actual

orderbook delivery

Remainder of 2026

2025

2027+

Scheduled Actual

orderbook delivery

Remainder of 2026

2025

2027+

the next most viable market Japan still comparatively expensive and capacity constrained, dry bulk ordering fell to an eight-year low.

1H 2025 Scheduled orderbook 1H 2025 Scheduled orderbook

Source: Clarksons Research, data as at July 2025

Orderbook as

% of Existing Fleet

Average Age

Over 20 Years Old

1H 2025

Scrapping as % of 1 January 2025 Existing Fleet

Handysize

(10,000-40,000 dwt)

Supramax & Ultramax

(40,000-70,000 dwt)

8.8% 14 14% 0.4%

11.3% 13 12% 0.1%

Panamax & Post-Panamax

(70,000-100,000 dwt)

14.0%

13

14%

0.3%

Capesize

(100,000+ dwt)

8.9% 12 5% 0.1%

Total 10.8% 13 10% 0.2%

Source: Clarksons Research, data as at July 2025

‌The Half Year in Review

16

MARKET BALANCE

Subdued outlook, but the geared minor bulk segments are more balanced

Total Dry Bulk Demand and Supply

% YOY change

5.0%

3.1%

3.3%

0.6%

0.2%

4.0%

3.0%

2.0%

1.0%

0.0%

2025F 2026F

Minor Bulk Demand and Handysize/Supramax Supply

% YOY change

5.0%

3.6%

3.8%

1.8%

4.3%

4.0%

3.0%

2.0%

1.0%

0.0%

2025F 2026F

Clarksons forecast that supply will continue to outpace demand in dry bulk shipping in 2025, due to expected high levels of new ship deliveries and limited scrapping, but much depends on the development

of US trade policy and fleet productivity factors, particularly Suez Canal transits.

Within the overall balance, Clarksons forecast Supramax and Handysize fleet growth to continue at a faster pace than Capesize and Panamax

fleet growth, but they also predict that grains and minor bulks, the main cargoes for Supramax and Handysize, will see faster volume and tonne-mile growth than iron ore and coal, the main cargoes for Capesize and Panamax. Hence, the outlook is subdued, but our segments should be relatively resilient.

Tonne-Mile Demand Net Fleet Growth

Source: Clarksons Research, data as at July 2025

POSSIBLE MARKET DRIVERS IN THE MEDIUM TERM

OPPORTUNITIES

• Importers of dry bulk commodities from the US shifting to longer haul sources, (e.g. China

  buying soyabeans from Brazil) in reaction to US trade policy

• Monetary and/or fiscal stimulus in China, focused on investment in infrastructure and urban renewal, driving demand for dry bulk commodities

• Increasing cooperation, investment, and trade between China and other developing economies, in reaction to US trade policy, supporting Chinese steel exports and global commodity demand

• Slower vessel operating speeds due to emissions regulations and increased fuel costs

• Limited new vessel ordering due to uncertainty over fuel technologies and US trade policy, leading to tighter supply

• Increased scrapping of older and less fuel-efficient tonnage facing onerous environmental regulations and expensive maintenance and upgrade

THREATS

• Geopolitics negatively impacting global economic growth which reduces demand for dry bulk commodities

• A rapid recovery in Suez Canal transits improves fleet productivity and raises effective supply growth

• Surging long-term bond yields driving higher interest rates and negatively impacting global economic activity and demand in dry bulk commodities

• Chinese economic growth slower than expected despite stimulus

• Limited scrapping of vessels due to IMO pushing out decarbonisation targets

‌OUR PERFORMANCE

The Half Year in Review

17

Our business generated an underlying profit of US$21.9 million for the first half of 2025, representing a 50% decrease compared to the same period last year due to reduced revenue amid weaker freight market conditions. Although the contribution from our core business declined year on year due to lower market freight rates and fewer revenue days, we significantly outperformed both the Handysize and Supramax market indices by approximately 27% and 40% respectively, and our operating activity margin and contribution improved by 29% compared to the same period in 2024.

Operating Performance

Six months ended 30 June

Our Commercial Activities

Core Business

Our core business is to optimally combine our owned and long-term chartered vessels with multi-shipment contract cargoes and spot cargoes to achieve the highest daily TCE earnings. Our core business also uses short-term chartered vessels to carry contract cargoes to maximise the utilisation and TCE of our owned and long-term chartered vessels.

Operating Activity

Our operating activity complements our core business by matching our customers' spot cargoes with short-term chartered vessels, making a margin and contributing to our Group results regardless of whether the market is weak or strong. Through our operating activity, we provide a service to our customers even if our core vessels are unavailable.

The Half Year in Review

18

CORE BUSINESS

Handysize Supramax

TCE EARNINGS

US$/day

30,000

TCE EARNINGS

29,350

28,120

13,830 13,630

12,230

US$/day

30,000

TCE EARNINGS

In the period, our core business generated:

• Handysize daily earnings of US$11,010 on 12,570 revenue days

• Supramax daily earnings of US$12,230 on 9,480 revenue days

  25,000

  20,000

  15,000

  10,000

  5,000

  23,430

  25,000

  20,460

  12,250

  12,840

  11,010

  20,000

  15,000

  10,000

  5,000

• Our Handysize vessels outperformed the index (BHSI 38k dwt tonnage-adjusted) by US$2,320 or 27% per day

• Our Supramax vessels significantly outperformed the index (BSI 58k dwt) by US$3,480 or 40% per day. Scrubbers fitted to our 33 core Supramax vessels contributed US$210 per day to our outperformance

• This marks a return to our usual high level of TCE outperformance

  0 0

  2021 2022 2023 2024 1H 2025

  2021 2022 2023 2024 1H 2025

  Handysize

  FORWARD CARGO COVER

  US$/day

  16,000

  Supramax

  FORWARD CARGO COVER

  US$/day

  16,000

  14,000

  13,750

  12,670

  14,000 13,440

  13,950* 13,480*

  12,640

  12,000

  11,940*

  11,680*

  12,000

  10,000

  8,000

  6,000

  4,000

  10,000

  8,000

  87%

  of days

  60%

  of days

  87%

  of days

  60%

  of days

  6,000

  4,000

  98%

  of days

  82%

  of days

  99%

  of days

  74%

  of days

  2,000 2,000

  0 0

  FORWARD CARGO COVER

  • We are strategically managing our forward cargo coverage alongside our spot market exposure, anticipating the return of seasonality that is expected to bolster freight rates in the third quarter

  • We have covered 87% and 99% of our Handysize and Supramax committed vessel days currently contracted for the third quarter of 2025 at US$11,940 and US$13,950 per day respectively

  • We have covered 60% and 74% of our Handysize and Supramax committed vessel days currently contracted for the second half of 2025 at US$11,680 and US$13,480 per day respectively

  • Our P&L break-even was US$10,060 per day for core Handysize vessels and US$10,330 per day for core Supramax vessels in the first half of 2025; our costs remain well controlled and sector leading

  3Q24 2H24 3Q25 2H25 3Q24 2H24 3Q25 2H25

  Indicative core fleet P&L break-even level incl. G&A for 1H25 = Indicative core fleet P&L break-even level incl. G&A for 1H25 = US$10,060 US$10,330

  * As of early August 2025, indicative TCE rates only as voyages are still * As of early August 2025, indicative TCE rates only as voyages are

  in progress still in progress

  OPERATING ACTIVITY

  MARGIN

  
  
  

  US$710 per day

  US$/day Days

  The Half Year in Review

  19

  3,500

  3,000

  2,500

  2,000

  1,500

  1,000

  500

  0

  3,330

  1,550

  710

  550

  1H22 1H23 1H24 1H25

  16,000

  
  
  
  
  
  

  14,000

  12,000

  10,000

  8,000

  6,000

  4,000

  2,000

  
  
  
  
  
  

  0

  Operating activity days

  Operating activity margins
  
  

• In the first half of 2025, our operating activity contributed US$10.1 million or 16% of our Group's performance before overheads, generated a margin of US$710 per day over 14,200 operating activity days

• Our operating activity margin increased by 29% while our operating activity days remained stable

• Our operating activity complements our core business by matching our customers' spot cargoes with short-term chartered vessels (when our core vessels are unavailable), thereby making a margin and contributing to our Group's results regardless of whether the market is weak or strong

‌The Half Year in Review

20

CORE BUSINESS VESSEL COSTS

Daily Vessel Costs

Handysize

Blended US$8,930

Owned Vessel Costs

• Operating expenses

Our average Handysize and Supramax daily operating expenses ("Opex") were substantially unchanged

Long-term Chartered Vessel Costs

Long-term chartered vessel costs mainly comprise depreciation of right-of-use assets, interest expenses of lease liabilities and technical management service costs

US$/day

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

Number of vessels*

Avg. DWT*

Supramax

FY2024 1H2025

12,330

12,300

8,090

8,750

8,930

110

8,210

3,380

90

3,450

12

US$4,700 (FY2024: US$4,750). Our Opex remained at industry competitive levels through good cost control and scale benefits as well as efficient procurement.

During the period, our fleet of owned vessels experienced on average 1.0 day (FY2024: 2.4 days) of unplanned technical off-hire per vessel.

• Depreciation

The 20% decrease in our average Handysize and Supramax daily finance costs to US$120 (FY2024: US$150) was the combined result of lower average

for leases over 12 months. Our Handysize long-term

chartered vessel daily costs remained largely unchanged at US$12,300. In contrast, our Supramax long-term chartered vessel daily costs reduced by 13% to US$14,120 primarily due to the redelivery of vessels that had been chartered at higher charter rates.

Blended Costs

Blended US$9,200

FY2024 1H2025

borrowings and lower interest income and interest expenses due to decreased interest rates.

US$/day

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

16,310

8,980 9,650

190

3,850

4,940

14,120

8,900 9,200

160

4,010

4,730

0 Owned

Long-Term Chartered

Blended

Owned

Long-Term Chartered

Blended

Number of vessels*

51 4 55

49 3 52 "We always strive to maintain cost leadership. Our overheads and

Avg. DWT* 58,630 61,000 58,880

58,730 63,700 59,020

operating expenses remain well controlled and sector leading."

Opex Depreciation

* Fleet as at 31 December 2024 and 30 June 2025

Finance Cost

The Half Year in Review

21

Vessel Days

The following table shows an analysis of our vessel days in 1H2025 and 2024:

Handysize Supramax

1 Short-term chartered vessels used to support our core business

Future Long-term Chartered Vessel Costs

The following table shows the average daily charter costs for our longterm chartered vessels during their remaining charter period by year:

Top left: m/v Barracuda Island in dry dock in China Bottom left: m/v Scrub Island loading salt in Dampier Right: Funnel painting on m/v Seal Island

‌The Half Year in Review

22

CASH AND BORROWINGS

Cash Flow

Key Developments in 1H 2025

Operating Cash Inflow

US$104m

Available Committed Liquidity

US$550m

Net Cash to Net Book Value of Owned Vessels

4%

Average Interest Rate (P/L)

5.5%

US$ Million

500

+104

-33

-31

-21

282

-1 -5

296

400

300

200

+42 -41

• We realised US$41.7 million from the sale of 3 Handysize and 2 Supramax vessels

• Our net cash outflow from borrowings was US$31.4 million

• We spent US$21.0 million to repurchase shares under our announced share buyback programme

• We incurred capital expenditure of US$41.1 million, including:

  1. US$19.6 million for 1 Handysize vessel which delivered into

     our fleet in first half 2025 and 1 Handysize vessel which delivered in July 2025

  2. US$21.5 million for dry dockings and other additions

     In July 2025, we announced a new US$250 million syndicated sustainability-linked 7-year reducing revolving credit facility secured against 20 unmortgaged vessels which further extends our funding profile, increases our available committed liquidity and strengthens our financial capacity.

• As at 30 June 2025, we had 55 unmortgaged vessels

To provide readers with a better understanding of our cash flows, our presentation in this section considers charter-hire payments as operating cash flow, before applying HKFRS 16 -"Leases" accounting treatment

100

0

At

1 Jan

2025

Operating cash inflow

Vessel sales

Capex

Dividends Change

in borrowings

Share buyback

Net interest

Others

Liquidity and Borrowings

US$ Million

Cash and deposits (a)

Available undrawn committed facilities

Available committed liquidity Current portion of borrowings Non-current portion of borrowings Total borrowings (b)

Net cash (a) + (b)

Net cash to shareholders' equity Net cash to net book value of

owned vessels

30 Jun

2025

295.5

31 Dec

2024

282.0

Change

+5%

254.4

549.9

(123.3)

(105.8)

(229.1)

66.4

4%

265.6

547.6

(76.5)

(185.8)

(262.3)

19.7

1%

-4%

0%

+13%

>+100%

4%

1%

p.49 Financial Statements Note 15 Cash and deposits (including how we invest our cash)

At 30 Jun

2025

Cash and deposits balance Cash inflow Cash outflow

Borrowings and Undrawn Committed Facilities

The Half Year in Review

23

Borrowings and Undrawn Committed Facilities - US$459.0 million (31 December 2024: US$500.2 million)

Schedule of Reduction in Borrowings and Undrawn Committed Facilities

Borrowings and undrawn committed facilities decreased during the period mainly due to repayments and scheduled loan amortisation.

A decrease in interest to US$6.5 million (1H 2024: US$8.7 million) was mainly due to a decrease in average borrowings to US$229.4 million.

The Group monitors the loan-to-asset value requirements on its bank borrowings. If the market values of the Group's mortgaged assets fall below the level prescribed by our lenders, the Group may pledge additional cash or offer other additional collateral unless the banks offer waivers for technical breaches.

As at 30 June 2025:

• The Group's secured borrowings were secured by 53 vessels with a total net book value of US$868.7 million and by an assignment of earnings and insurances in respect of these vessels

• The Group was in compliance with all its loan-to-asset value requirements

  
  
  

  p.46 Financial Statements Note 7 Finance income and finance costs

  US$ Million

  300

  250

  200

  150

  100

  50

  0

  260

  	177
  		121
  			61
  50
  	83
  16 25 34			60	25 3

  2H2025 2026 2027 2028 2029

  Convertible Bonds Liability Component - US$24.5 million (31 December 2024: US$27.7 million)

  Following the conversion offer completed in May 2022, a subsequent bondholder conversion in July 2022, the open market repurchase of convertible bonds in December 2022 and further bondholder conversions in May 2023, June 2024 and June 2025, as at 30 June 2025, there remained the 3% coupon guaranteed convertible bonds due in 2025 with an outstanding principal amount of US$24.6 million and a prevailing conversion price of HK$1.35 per share.

  On 4 July 2025, a further principal amount of US$13.2 million of convertible bonds were converted. The Group exercised its redemption option on 11 July 2025 relating to the remaining outstanding bonds at the nominal value of US$11.4 million, subsequent to which US$11.1 million of convertible bonds were converted. Any outstanding bonds that are not converted will be redeemed and cancelled on 14 August 2025, thereby cancelling the convertible bonds in full.

  Undrawn committed facilities (US$254.4 million)
  
  
  Borrowings (US$204.6 million)
  
  
  Convertible bonds (face value US$24.6 million, book value US$24.5 million)
  
  

  We arrange financing by leveraging the Group's balance sheet to optimise the availability of cash resources of the Group. The aggregate borrowings and undrawn committed facilities of the Group at 30 June 2025, including the liability component of the convertible bonds, are denominated in United States Dollars and amounted to US$483.5 million (31 December 2024: US$527.9 million).

  Finance Costs Average interest Balance at The KPIs on which management focuses to assess the cost of rate 30 June Finance costs borrowings are: US$ Million P/L Cash 2025 1H 2025 1H 2024 Change ■ average interest rates for different types of borrowings; and Borrowings (including realised interest
  rate swap contracts)	5.6%	5.6%	204.6	6.5	8.7	+25%
  Convertible bonds (Note)	4.7%	3.0%	24.5	0.6	0.7	+15%	The Group aims to achieve a balance between floating and fixed interest
  	5.5%	5.4%	229.1	7.1	9.4	-6% +24%	rates on its borrowings. As at 30 June 2025, 66% (31 December 2024: 69%) of the Group's borrowings were on fixed interest rates.
  Other finance charges				1.1	1.2
  Total finance costs				8.2	10.6	+23%
  Interest coverage (calculated as EBITDA
  divided by total finance costs)				14.8x	14.9x
  Note: The convertible bonds have a P/L cost of US$0.6 million and a cash cost of US$0.4 million.

  • the Group's interest coverage.

  ‌SUSTAINABILITY & GOVERNANCE‌

  25 Sustainability Highlights

  31 Corporate Governance

  34 Other Information

  
  
  ‌SUSTAINABILITY HIGHLIGHTS

  Our industry is facing an evolving and increasingly complex business landscape which poses both risks and opportunities for our Company. To navigate the challenges of today and tomorrow, and to further define our role as industry leaders, we are harnessing our culture of "doing the right thing" and putting it to work in a pragmatic sustainability framework comprising four pillars of responsibility

  Sustainability & Governance

  25

  Our Sustainability Priorities

  We prioritise our 20+ sustainability issues based on our assessments of what is currently most important to our stakeholders, our business, society and the environment, as well as what is most urgent and where we choose to be more ambitious. We currently see these five ESG issues as our Company's top-most sustainability focus areas:

  ENVIRONMENTAL RESPONSIBILITY

  high-performing workforce

  
  
  

  Decarbonising our fleet, managing our waste and use of resources, and minimising our impact on biodiversity as we continue to grow our business

  RESPONSIBLE BUSINESS FUNDAMENTALS

  Evolving and enhancing management and governance practices (including due diligence, financial and risk management, integrity

  and transparency) to safeguard business resilience and stakeholder trust and confidence

  RESPONSIBILITY TO OUR PEOPLE

  Safeguarding a decent, healthy and safe work environment and nurturing an empowered and inclusive organisation,

  while developing a diverse, well-supported and

  RESPONSIBLE VALUE CREATION

  Serving, helping and collaborating with customers, suppliers, the seafarer community and other stakeholders to support a responsible and resilient supply chain and PB community

  • Employee Safety, Security, Health & Wellbeing

  • Carbon & GHG Emissions Reduction

  • Diversity, Equity & Inclusion

  • Good Management & Corporate Governance

  • Responsible Business Practices & Cargo Carriage

In 2024-2025, we have been and continue to conduct internal workshops to tighten up our vision, ambitions, goals and targets for all five of our priority ESG issues.

These collaborative exercises provide a valuable opportunity for deeper engagement with our colleagues on these topics and provide a forum for refining and updating our ESG strategies, while empowering our colleagues to tailor initiatives to achieve our goals & targets and further embedding sustainability in our culture.

ESG

Please see our standalone Sustainability Report 2024 for a full review of our sustainability approach and performance

‌Sustainability & Governance

26

ENVIRONMENTAL RESPONSIBILITY

Ambition: As a leading dry bulk ship owner and operator, Pacific Basin seeks to further improve our fleet scale, optimise our performance and offer flexible and reliable service while striving to decouple this from environmental impact. We operate in a heavily regulated industry and take responsibility for decarbonising our fleet, managing our waste, marine discharges and resources consumption, ensuring our ships are primed for proper recycling and minimising our biodiversity impacts as we continue to grow our business.

The most challenging priority of our environmental programme is the gradual decarbonisation of our fleet for compliance and to achieve our IMO-aligned net zero by 2050 target.

IMO Agrees to Framework for Global GHG Reduction Rules

In April, the IMO approved a Global Fuel Standard (GFS) with economic elements. This two-tiered GFS is designed to drive a phased reduction in GHG Fuel Intensity (GFI) by forcing the gradual adoption of green fuels to meet yearly well-to-wake (WTW) GFI targets. The GHG

intensity reduction targets will tighten annually from 2028 to 2035. The targets for 2036-2040 will be determined by January 2032. The base target for 2040 is set to be a 65% reduction compared to 2008 levels. These targets are compared against 2008 levels, with the reference GFI being 93.3g CO2e/MJ.

Compliance penalties & benefits:

Base Target deficit requires purchase of Remedial Units (RUs) at US$380 pmt CO2e

Direct Compliance Target deficit requires purchase of RUs at US$100 pmt CO2e

Over-compliance with Direct Compliance Target generates Surplus Units (SUs) that can be sold or pooled (offsetting ships in carbon deficit) or banked for up to 2 years

Deep GFI reductions made possible by Zero or Near Zero emission (ZNZ) fuels will receive financial rewards (funded by Remedial Unit payments to IMO Net Zero Fund), but the reward value will only be determined in 2027 (ZNZs mean ≤19 gCO2e/MJ until end 2034, then ≤14 gCO2e/MJ)

IMO Net Zero Fund will need to cover ZNZ rewards and Just & Equitable Transition initiatives. Funding available to incentivise ZNZ fuels should run into US$ several billion annually

GFS is expected to be adopted in October 2025 with entry into force by 2027

Our Decarbonisation Strategy

We take a multi-pronged approach to reducing our carbon intensity to comply with IMO's global decarbonisation regulations as well as EU and other regional rules.

Prioritising Green Fuel Sourcing

Having made our first commitment to ordering dual-fuel LEVs in November 2024, we signed a Memorandum of Understanding (MOU) with The Hong Kong and China Gas Company Limited (Towngas) in June 2025 to enhance our access to volumes of green methanol marine fuel. Our agreement with Towngas marks a key milestone in our long-term plan for green fuels to make up 5% of our fuel mix by 2030 and for our fleet to achieve net zero emissions by 2050.

Alongside sustainable biofuel, green methanol will become an increasingly important part of Pacific Basin's marine fuel mix as we grow our fleet of dual-fuel methanol-capable LEVs and decarbonise our operations to comply with increasing maritime decarbonisation regulations. Green methanol will support our dual-fuel LEVs which can flexibly switch between conventional fuel oil, sustainable biofuel and green methanol based on the prevailing economics. The IMO's GFS should strengthen the business case for early adoption of LEVs and low-carbon fuels.

1. Energy-efficient technology adoption

2. Carbon-efficient operational measures

3. Fleet renewal and growth for energy efficiency

4. Investment in Low-Emission Vessels (LEVs)

   
   
   

5. Developing access to green fuels

ESG

Sustainability Report 2024 p.17

Our Decarbonisation Strategy

RESPONSIBILITY TO OUR PEOPLE

Sustainability & Governance

27

Ambition: Pacific Basin strives to develop a diverse, effective and motivated team. At sea and on shore, we continue to uphold the highest health and safety standards and train our colleagues to enable them to tackle evolving business challenges while looking after their, and each other's, overall wellbeing. We want to encourage and support each individual's unique efforts to

contribute to our business and to remove barriers to inclusion and opportunity.

Enhancing Security

Drug smuggling by cartels and militant activity are risks currently faced by our ships and colleagues at sea. We prioritise the safety and security of our colleagues, our ships and our operations, and practice proactive vigilance and risk management in times of heightened security threats. When navigating through high-risk areas, we have implemented the following enhanced security measures:

Global Security Operations Centre (GSOC)

Voyage risk assessments

Dog searches

Security guards

Patrol boats

AI-integrated CCTV

Underwater drone searches

Gangway turnstile

Turnstile with facial recognition technology

Perimeter camera

Barbed wire fencing

Underwater Remote Operate Vehicles (ROVs)

Radio Frequency Identification Security (RFID) locks & seals

Enhancing Wellbeing

Some of our recent seafarer wellbeing initiatives include:

Starlink and Inmarsat's Low Earth Orbit (LEO) NexusWave internet services to provide high-speed connectivity with unlimited data and global coverage service

Training for all our Crewing Assistants in Manila and Dalian to identify signs of distress amongst our crews when communicating with them during their tenure onboard

Training for all our ships' Masters in the good management of any cross-cultural issues and conflicts onboard

Participation in the SAFETY4SEA SEAFiT Crew Welfare Survey to assess our overall crew wellness index and identify key challenges faced by crew which helps support the development of an enhanced mental wellbeing programme for our seafarers

Enhancement of our Wellness at Sea Manual and training covering a range of mental wellbeing topics to raise awareness across our fleet

Additional psychometric screening tests for all seafarers prior to joining our vessels

Lost Time Injury Frequency (LTIF)

0.52

4%

injuries per million man hours

Seafarer overall engagement

86%

In the first half of 2025, our crews registered 9 recordable injuries (including 5 lost-time injuries) in over 9.5 million man hours, mostly arising from relatively minor falls, burns and finger injuries.

In the first half of 2025, we engaged independent consultants to conduct our first seafarer engagement survey, the results of which pointed to a high level of satisfaction and engagement across several main criteria and provided useful insight into areas that may benefit from extra attention.

Zero LTIF Rate

95%

of PB owned ships achieved zero LTI injuries in 1H2025

0

Harassment and Bullying Cases

ESG

Please see our standalone Sustainability Report 2024 for a review of how we invest in our people's security, safety, wellbeing and engagement

Sustainability & Governance

28

RESPONSIBLE VALUE CREATION

Ambition: Pacific Basin is in it for the long haul, valuing long-term relationships over short-term gains with our customers, suppliers, investors, finance providers, regulators, local communities and other networks. Leveraging our scale and influence in the dry bulk industry, we seek to promote a responsible, ethical, inclusive and resilient global marketplace by working together with our stakeholders.

Examples of collaborations with our stakeholders in first half 2025

Please see our Sustainability Report 2024 for a review of how we create value responsibly

ESG

We regularly gather with peers to exchange ideas and insights on various sustainability topics through "Sustainability in Shipping" meetings. In January, we discussed our order for four dual-fuel Ultramax LEVs capable of running on green methanol, biofuel and fuel oil. In May, we focused on ship security, including anti-smuggling, anti-piracy and crew safety measures.

In April, our Sustainability Manager spoke at the Hong Kong Chamber of Shipping's Guangdong-Hong Kong-Macao Clean Energy Supply Chain Conference attended by over 200 maritime industry professionals

and government representatives, sharing his thoughts on IMO MEPC 83 outcomes, Pacific Basin's decarbonisation efforts and our early investment in dual-fuel green ships.

Pacific Basin sponsored the "Network by the Sea" event, organised by the Hong Kong Maritime Museum which brought together young professionals from the shipping industry, the arts and other local businesses

as well as CSR partners inspiring cross-sector conversations.

To celebrate the International Day of the Seafarer, we sponsored free admission to the Hong Kong Maritime Museum in June. Over 3,600 visitors enjoyed many interactive offerings, including games, guided tours, a bridge simulator experience, as well as career experience sharing and knot-tying and navigation workshops led by Pacific Basin ship officers, cadets, shore-based managers and former ship captains.

We participated in an industry seminar organised by the Women's International Shipping & Trading Association and the Nautical Institute to discuss topics around Diversity, Equity & Inclusion among seafarers and proposals for green incentives within the industry.

In July, we successfully concluded our second sustainability-linked 7-year secured revolving credit facility of US$250 million, with interest margin adjustments linked to our carbon intensity (EEOI) and crew safety (LTIF) performance, which are among our top ESG priorities.