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Financial Data and Key Metrics Changes - The company is initiating its first-ever share buyback program with an allocation of up to $40 million, scheduled to run from April 25 to December 31, 2024, aimed at enhancing shareholder value [4][5][6] - The average daily TCE earnings for Handysize and Supramax vessels in Q1 2024 were $11,050 and $13,610, respectively, representing a year-on-year decrease of 18% for Handysize and no change for Supramax [15] - The company continues to generate healthy cash flows and maintains a distribution policy to pay out at least 50% of annual net profits in dividends [7] Business Line Data and Key Metrics Changes - Handysize and Supramax market freight rates averaged $10,510 and $12,310 per day in Q1 2024, reflecting increases of 26% and 27% compared to the same period in 2023 [8] - The company covered 84% and 96% of its Core committed vessel days for Q2 2024 at rates of $12,219 and $14,610 for Handysize and Supramax, respectively [16] - The Core business's operating activity generated a margin of $510 per day over 6,660 operating days in Q1 2024, a decrease of 53% year-on-year [22] Market Data and Key Metrics Changes - Global minor bulk loadings increased by approximately 3% in Q1 2024, driven by higher loadings of bauxite and salt, while other categories like cement and ores saw declines [9] - Global iron ore loadings rose by 2%, with Brazil experiencing a record first quarter, up 15% year-on-year [10] - Global coal loadings decreased by 1% due to reduced loadings from Russia and Indonesia, while China's demand for imported coal remained strong [12] Company Strategy and Development Direction - The company is expanding its fleet with newbuildings that have an earning capacity approximately 20% higher than the current average fleet [26] - The company is cautious about investing in newbuildings due to historically high prices but is considering contracting low-emission vessels [27][75] - The company aims to gradually divest its least efficient ships in response to stricter decarbonization regulations [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects of dry bulk shipping, supported by positive demand for commodities and favorable supply-side fundamentals [32] - The ongoing disruptions in the Red Sea and Panama Canal are expected to impact supply and support freight rates [24] - Management noted that the market is currently in contango, indicating positive signs for future earnings [80] Other Important Information - The company plans to evaluate the effectiveness of the share buyback program by the end of the year [48] - The company has a cash breakeven level of $5,960 per day for Handysize and $6,120 for Supramax vessels [19] - The company currently operates approximately 302 vessels, including short-term chartered vessels [30] Q&A Session Summary Question: Can you elaborate on the premium that Pacific Basin manages to deliver over the market rate? - Management acknowledged that the premium has decreased but emphasized that they are still outperforming the market, attributing fluctuations to market conditions and disruptions [35][36] Question: What percentage of capacity has been absorbed due to congestion in Panama and the Red Sea? - Management indicated that disruptions have an impact, estimating a 2% effect on the supply side [45] Question: What is the CapEx for 2024 and the rationale behind the buyback? - Management outlined a total CapEx of over $200 million, including $40 million for share buybacks, emphasizing that the buyback is a better investment than purchasing assets at current prices [49][51] Question: How does the higher cover for the second quarter reconcile with the view of the market going up? - Management explained that the cover was established when there were concerns about the market, and they are comfortable with the current cover levels [62][68] Question: Is there a change in strategy regarding newbuilds? - Management clarified that they will only consider newbuilds if they are zero or low-emission vessels, maintaining a cautious approach [74][75] Question: Was the strong performance in Q1 due to demand or disruptions? - Management stated that the strong performance was driven by demand, with disruptions in the Red Sea and Panama Canal providing additional support [82]

LEADING THE WAY IN DRY BULK SHIPPING E Pacific Basin IPSWICH BA 1024 TRADING UPDATE 18 APRIL 2024 PERFORMANCE AND MARKET REVIEW US$40 MILLION SHARE BUYBACK PROGRAMME ▪ Current share price of the Company is believed to be below its intrinsic value ▪ Launch of share buyback programme of up to US$40 million ▪ Any shares bought back by the Company will be cancelled ▪ Share buyback will be from 25 April to 31 December 2024 (both days inclusive) ▪ Expected to enhance our earnings per share, net asset value per sh ...

Financial Performance - In 2023, the company recorded a basic profit of $119.2 million, a net profit of $109.4 million, and EBITDA of $347.2 million, resulting in a return on equity of 6% and basic earnings per share of HKD 0.165[3]. - Revenue for the period was HKD 2,296.6 million, a decrease from HKD 3,281.6 million in the previous period, representing a decline of approximately 30%[11]. - Basic earnings per share decreased to HKD 16.5 from HKD 109.1, reflecting a decline of about 84%[11]. - Net profit margin dropped to 5% from 21%, indicating a significant reduction in profitability[11]. - Total assets decreased to HKD 2,432.5 million from HKD 2,648.7 million, a decline of approximately 8%[11]. - Cash and cash equivalents fell to HKD 261.5 million from HKD 443.9 million, a decrease of about 41%[11]. - The company reported a basic profit of $119.2 million for 2023, a decrease of 83% compared to $714.7 million in 2022, primarily due to falling freight rates[52]. - The total compensation for the group in 2023 reached $195,247,000, down from $225,444,000 in 2022, representing a decrease of approximately 13.4%[170]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.016 per share and an additional special dividend of HKD 0.041 per share, totaling 75% of the annual net profit[4]. - The total dividend for 2023 is proposed at 12.2 HK cents per share, representing 75% of the annual net profit, resulting in a dividend yield of 5% based on the beginning of the year share price[24]. - The distribution policy mandates a minimum dividend payout of 50% of annual net profit, excluding gains from vessel sales[24]. - The company maintains a dividend policy of distributing no less than 50% of the annual net profit, with any additional distribution potentially as special dividends[150]. Fleet and Operational Strategy - The company sold eight vessels in 2023 and acquired eight modern second-hand vessels, including six ultra-large bulk carriers, to enhance its fleet[8]. - The company aims to expand its ultra-small and ultra-large bulk carrier fleet while optimizing its existing fleet to meet stricter environmental regulations[8]. - The company operates a fleet of modern small and ultra-small bulk carriers, with over 90% of the fleet carrying cargo at any given time[15]. - The company holds approximately 4% of the global ultra-small bulk carrier fleet and 5% of the global small bulk carrier fleet, both under 20 years of age[16]. - The company is actively securing more forward contracts for the first quarter of 2024 due to anticipated increases in freight rates[58]. - The company is focused on effective communication with stakeholders to address the higher operational costs associated with zero-emission vessels[41]. Market Outlook and Demand - The company is optimistic about the long-term potential of the dry bulk shipping market, driven by increased demand from China's economic activities and infrastructure investments[5]. - The long-term outlook for the dry bulk shipping industry remains positive due to favorable supply fundamentals and increasing demand for commodities, particularly coal, iron ore, and minor bulk goods[37]. - Demand for dry bulk commodities is expected to rise due to ongoing global economic development, urbanization, and green initiatives[42]. - The company expects strong demand for dry bulk shipping to persist, contributing to industry growth and its own operational success[38]. Environmental and Regulatory Compliance - The company is preparing to comply with the International Maritime Organization's emission reduction regulations effective from January 2023 through technological upgrades and fleet renewal[8]. - The company aims for full decarbonization by 2050 and is actively pursuing opportunities to transition to a low-carbon industry[25]. - The company is collaborating with Nihon Shipyard Co. and Mitsui & Co. to develop low-emission vessels capable of operating on methanol and fuel oil[25]. - The company achieved a 40% reduction in carbon emission intensity compared to the 2008 baseline year, with a target to reduce it by over 50% by 2030[31]. - The company is committed to reducing its fleet's carbon emissions density and environmental impact in accordance with stricter new regulations[91]. Governance and Leadership - The company has appointed two new directors, Mats Henrik Berglund and Alexandre Frederic Akira Emery, to strengthen its leadership team[25]. - The board consists of eight directors, including Martin Fruergaard as CEO and Executive Director, who joined in July 2021[160]. - The company emphasizes responsible investment and management strategies to benefit diverse stakeholders[160]. - The board is committed to governance, with a focus on sustainability and strategic oversight[162]. - The company has established a dedicated sustainability committee at the board level, consisting of two independent non-executive directors and one non-executive director, to oversee long-term sustainable development matters[143]. Safety and Employee Welfare - The company is committed to maintaining high standards in safety, health, and welfare for its crew and shore staff, with a focus on avoiding workplace injuries[25]. - The company recorded 14 work-related injuries resulting in lost time out of approximately 21 million working hours in 2023, emphasizing its commitment to safety[90]. - The company is focused on supporting mental health initiatives for crew members, including additional psychological screening before boarding[101]. - The company has implemented a PB Families Programme to support the families of Filipino crew members, enhancing overall employee well-being[90]. Financial Management and Capital Structure - The company maintained a low net debt ratio of 2%, reflecting its strong balance sheet while supporting growth plans[3]. - The capital structure remains healthy with available liquidity of $549.2 million, supporting ongoing growth[24]. - The company has committed available liquidity of $287.7 million, an increase of 68% from $171.1 million in 2022, enhancing its financial flexibility[67]. - The company has established internal controls for handling insider information and ensures compliance with disclosure regulations[150]. Risk Management - The company has established a risk management framework to ensure sufficient liquidity and compliance with loan covenants, actively managing cash and borrowings[149]. - The risk management committee is responsible for enhancing the company's risk management culture and ensuring alignment with business and market developments[122]. - The company has strengthened its corporate risk management culture, emphasizing ethical values, transparency, and risk tolerance[123]. Awards and Recognition - The company has received multiple awards in 2023, including "Best Dry Bulk Operator" at the International Bulk Journal Awards for the second consecutive year[24]. - The company received the Blue Circle Award from the Vancouver Port Authority for the sixth consecutive year, recognizing its commitment to sustainability[75]. - The company was awarded three major awards at the 2023 Hong Kong Environmental, Social and Governance Reporting Awards, including Best ESG Report Award[80].

Pacific Basin Shipping Limited (OTCPK:PCFBF) Q4 2023 Earnings Conference Call February 29, 2024 5:00 AM ET Company Participants Martin Fruergaard - Chief Executive Officer Michael Jorgensen - Chief Financial Officer Peter Budd - Investor Relations Conference Call Participants Andrew Lee - Jefferies Parash Jain - HSBC Nathan Gee - Bank of America Operator Welcome to today's Pacific Basin 2023 Annual Results Announcement Conference Call. I'm pleased to present Chief Executive Officer, Mr. Martin Fruergaard, a ...

Financial Performance - The company reported a basic profit of $119.2 million and a net profit of $109.4 million for the year ending December 31, 2023, with an EBITDA of $347.2 million, reflecting a return on equity of 6% and basic earnings per share of 16.5 HK cents[3]. - The company recorded a basic profit of $119,200,000 in 2023, a decline in freight rental rates compared to 2022 due to economic slowdown and increased shipping supply[5]. - The company reported a basic profit of $119.2 million for 2023, a decrease of 83% compared to $714.7 million in 2022, primarily due to falling freight rates[34]. - Basic profit attributable to shareholders was $109.4 million, an 84% decrease from $701.9 million in 2022[68]. - The company experienced a 27% decrease in freight rental income, from $2,683,135 thousand in 2022 to $1,964,167 thousand in 2023[75]. - The company reported a net profit attributable to shareholders of $109,379 thousand, a decline of 84% from $701,856 thousand in the previous year[70]. - The company recorded a non-cash impairment charge for smaller handy-sized bulk carriers, representing about 4% of the fleet's book value[70]. Revenue and Expenses - The company reported a revenue of $2,296.6 million for 2023, down 30% from $3,281.6 million in 2022[68]. - Revenue for the year ended December 31, 2023, was $2,296,622 thousand, a decrease of 30% from $3,281,626 thousand in 2022[70]. - Gross profit for 2023 was $130,951 thousand, down 82% from $732,078 thousand in 2022[70]. - Financial expenses decreased by 55% to $22,650 thousand, attributed to reduced average borrowings and increased interest income[70]. - General and administrative expenses were reduced to $76 million in 2023 from $89.9 million in 2022, with a competitive average daily expense of $760[51]. - The company incurred lease expenses of $656,498 thousand in 2023, a reduction of 32.9% from $978,630 thousand in 2022[76]. - Fuel costs decreased to $591,008 thousand in 2023, down 8.3% from $644,301 thousand in 2022[76]. Fleet and Operations - A total of 115 small and ultra-small bulk carriers are currently in operation, with plans to expand the fleet further by acquiring modern second-hand vessels[2]. - The total fleet capacity is 5.3 million tons, with an average age of 13 years for owned vessels[4]. - The core fleet consists of 132 small and ultra-small bulk carriers, with a total operational capacity of approximately 5,300,000 deadweight tons, reflecting a 4% increase[20]. - The company sold eight vessels in 2023 and purchased eight modern second-hand vessels, including six ultra-large bulk carriers[2]. - The company has signed long-term lease agreements for three newly built small bulk carriers and four 40,000 deadweight ton small bulk carriers, scheduled for delivery between Q2 2024 and Q1 2025[20]. Dividends and Shareholder Returns - The overall dividend payout for the year is 75% of the net profit, with a final dividend of 1.6 HK cents and a special dividend of 4.1 HK cents per share[2]. - The company maintains a dividend policy of distributing no less than 50% of annual net profit (excluding gains from vessel sales), with additional distributions possible through special dividends or share buybacks[5]. - The board proposed a final dividend of HKD 0.016 per share and an additional special dividend of HKD 0.041 per share, totaling 75% of the annual net profit[12]. - The total dividend for the year was 12.2 HKD per share, which includes an interim dividend of 6.5 HKD and a proposed final special dividend of 4.1 HKD[79]. Environmental and Safety Initiatives - The company aims to achieve full decarbonization by 2050 and is actively working on reducing carbon emissions from existing vessels while preparing to transition to new low-emission vessels and fuels[8]. - The company is collaborating with Nihon Shipyard Co. and Mitsui & Co. to develop low-emission vessels capable of operating on methanol and dual fuel, with potential contracts for construction in 2024[8]. - Carbon emissions density has decreased by 40% compared to the 2008 baseline year, with a target to reduce it by more than half by 2030[18]. - The company is committed to maintaining the highest health and safety standards for its employees and providing training to adapt to evolving business challenges[23]. Market Outlook and Industry Trends - The company remains optimistic about the long-term potential of the dry bulk shipping market due to favorable supply and demand fundamentals[2]. - The long-term outlook for the dry bulk shipping industry remains positive due to favorable supply fundamentals and increasing demand for commodities, despite some economic slowdowns in certain countries[24]. - The company anticipates that demand for dry bulk commodities will increase due to economic recovery in China and global demand[32]. - The overall dry bulk shipping market is expected to see seasonal demand increase after the Lunar New Year, supported by limited vessel availability through the Suez and Panama Canals[26]. Corporate Governance and Diversity - The company emphasizes strong corporate governance and accountability, with recent appointments of two new non-executive directors to enhance board diversity and expertise[10]. - The company is focused on employee safety and well-being, with a commitment to avoiding workplace injuries and enhancing overall welfare[9]. - The company is actively promoting gender diversity, with 42% of onshore employees being women and ongoing efforts to recruit female cadets[10]. - The company is focused on creating an inclusive work environment that encourages employee contributions and eliminates barriers[23].

Share Incentive Plan - The company reported that as of December 31, 2022, a total of 271,147,000 shares were granted under the share incentive plan, with 254,974,102 shares available for further grants, representing approximately 4.85% of the company's issued share capital[5]. - The weighted average closing price per share prior to the vesting of share incentives in 2022 was HKD 3.05, while in the first half of 2023, it was HKD 3.06[5][6]. - As of June 30, 2023, the total number of shares that remained unvested was 22,205,000 shares, with no shares available for grant following the expiration of the share incentive plan on February 28, 2023[6][7]. - The company issued 18,816,000 shares as part of the share incentive plan in 2022, which accounted for approximately 0.37% of the weighted average number of shares issued during the year[5]. - The share incentive plan's total number of shares available for grant decreased from 228,938,127 shares at the beginning of 2022 to 210,122,127 shares by the end of the year[5]. - The company has outlined the vesting periods for various share grants, with some grants set to vest as late as July 2025[2][6]. - The company plans to provide further information regarding the share incentive plan in future disclosures, following the details provided in the 2022 annual report and the 2023 interim report[1][8]. Governance Structure - The company’s board of directors includes Martin Fruergaard as an executive director and several independent non-executive directors, indicating a diverse governance structure[8]. Product Development and Market Strategy - The company has not disclosed any new product developments or market expansion strategies in the recent reports[1][8]. Information Accuracy - The company emphasizes the importance of the accuracy and completeness of the information provided in its reports, disavowing any responsibility for losses incurred from reliance on the disclosed content[1].

Financial Performance - In the first half of 2023, Pacific Shipping recorded a basic profit of $76.2 million, a net profit of $85.3 million, and EBITDA of $189.1 million, achieving a return on equity of 9% and basic earnings per share of HKD 0.129[20]. - Revenue for the six months ended June 30, 2023, was $1,148.1 million, a decrease of 33.2% compared to $1,722.8 million for the same period in 2022[27]. - Net profit attributable to shareholders for the first half of 2023 was $76.2 million, down 10.7% from $85.3 million in the same period last year[27]. - The company reported a net profit margin of 7% for the first half of 2023, significantly lower than 27% in the same period of 2022[27]. - The company reported a basic profit of $76.2 million and a net profit of $85.3 million for the six months ended June 30, 2023[128]. - The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $189.1 million, with a return on equity of 9% year-on-year[128]. - The company reported a gross profit of $80.6 million, down from $488.4 million, indicating a significant decline in profitability[132]. - The total assets as of June 30, 2023, were $2,515.8 million, a decrease from $2,648.7 million at the end of 2022[135]. - The company reported a net cash generated from operating activities of $184.777 million for the six months ended June 30, 2023, compared to $511.533 million for the same period in 2022, reflecting a decrease of approximately 64.2%[137]. - The company incurred a cash outflow of $209.545 million for the purchase of property, plant, and equipment during the six months ended June 30, 2023, compared to $35.322 million in the prior year, representing a significant increase[137]. Fleet and Operations - The company sold two older small bulk carriers and took delivery of five ultra-large bulk carriers, one ultra-small bulk carrier, and one small bulk carrier during the period, continuing its strategy to expand and modernize its fleet[24]. - Pacific Shipping operates a fleet of approximately 282 owned and chartered vessels, with a focus on increasing the number of ultra-small bulk carriers and updating its fleet to comply with stricter environmental regulations[24]. - The average daily profit from operations was $1,550 over 11,000 operational days, generating $17 million before management expenses[23]. - The average daily net income for small and ultra-small bulk carriers was $13,030 and $13,700 respectively, contributing a total of $96.1 million before management expenses[23]. - The company aims to maintain high vessel utilization rates through forward contracts, addressing potential demand weaknesses in the global dry bulk market[81]. - The average daily operating expenses for small and ultra-small bulk carriers decreased by 7% to $4,860, compared to $5,210 for the full year of 2022[86]. Environmental and Regulatory Compliance - The company is preparing to comply with the International Maritime Organization's emission reduction regulations that took effect in January 2023 through technological upgrades and operational measures[24]. - The company aims to achieve net-zero emissions by 2050, requiring investments in zero-emission vessels and alternative fuels[39]. - The company is investing in zero-emission vessels and is developing the design for the first generation of methanol-powered ultra-large bulk carriers[24]. - The company is preparing for stricter environmental regulations, including the EU Emissions Trading System starting in 2024[53]. - The International Maritime Organization's revised greenhouse gas strategy aims for net-zero emissions in international shipping by around 2050, with interim reduction targets[53]. - The company is focused on reducing carbon emissions and has set a target to comply with the new IMO regulations through technical upgrades and operational measures[103]. Market Conditions and Demand - Global dry bulk demand increased year-on-year, primarily due to higher coal and iron ore loading volumes, although small bulk demand declined due to various macroeconomic factors[21]. - Despite short-term challenges, the company remains optimistic about the long-term potential of dry bulk shipping, supported by a modern and flexible fleet and strategic partnerships with customers[21]. - The global economic slowdown and slow recovery in China are expected to negatively impact small bulk demand for the remainder of 2023[51]. - The company anticipates a structural supply-demand imbalance in the dry bulk market due to low newbuilding orders and increased scrapping of inefficient vessels[60]. - The company is optimistic about future dry bulk demand driven by trade flows and economic recovery in emerging markets, particularly due to China's post-pandemic policies[59]. Financial Management and Strategy - The company has committed to a liquidity of $375.1 million while expanding its fleet and reducing debt, with a net debt to net asset value ratio of 7%[47]. - The company aims to balance its floating and fixed interest rates, with 75% of borrowings at fixed rates as of June 30, 2023[95]. - The company maintained compliance with all asset value covenants related to its borrowings[92]. - The company effectively controlled its operating expenses for its vessels despite a decline in market freight rates[128]. - The company has established rules for senior management and employees regarding insider trading to ensure compliance with regulations[116]. Employee and Safety Initiatives - In the first half of 2023, the company recorded over 10.3 million man-hours with nine reported work-related injuries, including five that resulted in lost time[56]. - The company emphasizes the importance of mental health support for crew members and has implemented various initiatives to enhance their well-being[55]. - The company has established a partnership with Rio Tinto to enhance safety and crew welfare in the dry bulk shipping industry since March 2023[109]. - The company recorded a recordable incident frequency of 0.87 per million man-hours, a 50% reduction compared to previous periods[107]. Shareholder and Corporate Governance - The company declared an interim dividend of HKD 0.065 per share, representing 51% of the net profit for the period, reflecting confidence in its strong balance sheet despite uncertainties in global dry bulk demand and freight rates[20]. - Major shareholders holding 5% or more of the company's issued share capital included JP Morgan Chase & Co. with 7.94% and Citigroup Inc. with 7.31% as of June 30, 2023[125]. - The board confirmed full compliance with the standards of the Listing Rules regarding securities transactions by directors for the six months ended June 30, 2023[116]. - The company issued 2,612,033 ordinary shares on May 23, 2023, to a bondholder's nominee, with a total principal amount of USD 500,000[115].

i Pacific Basin WELL POSITIONED FOR THE FUTURE ISABELA ISLAND INTERIM RESULTS 2023 31 JULY 2023 | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | PERFORMANCE | | | | | | | 2023 INTERIM FINANCIAL RESULTS Balance Sheet US$million 2023 1H 2022 Available liquidity 375.1 615.0 Net (borrowings)/cash (128.1) 65.3 Returns 2023 1H 2022 1H Return on equity (annualised) 9% ...

Canadian Pacific Basin Shipping Limited (OTCPK:PCFBF) Q2 2023 Earnings Conference Call July 31, 2023 6:00 AM ET Company Participants Martin Fruergaard - Chief Executive Officer Michael Jorgensen - Chief Financial Officer Conference Call Participants Parash Jain - HSBC Operator Welcome to today's Pacific Basin 2023 Interim Results Announcement Call. I'm pleased to present Chief Executive Officer, Mr. Martin Fruergaard and Chief Financial Officer, Mr. Michael Jorgensen. For the first part of this call, all p ...