PACIFIC BASIN(02343)2025-03-14 09:22Financial Performance - In 2024, the company recorded a net profit of 333.4 million, achieving a return on equity of 7% and basic earnings per share of HKD 0.199[18]. - Revenue for 2023 reached 2,296.6 million in 2022, representing an increase of approximately 12.4%[20]. - The company reported a net profit attributable to shareholders of 109.4 million in the previous year, marking a growth of about 20.4%[20]. - Cash and cash equivalents increased to 261.5 million, reflecting a positive change in liquidity[20]. - The average return on equity improved to 7% from 6% year-over-year, suggesting enhanced profitability relative to shareholder equity[20]. - The net debt to equity ratio improved to 1% from a negative 2% in the previous year, reflecting better financial stability[20]. - The company maintained a strong financial performance with a total cash and deposits amounting to 12,840 and 178.4 million (excluding management expenses) in 2024[18]. - The average daily profit from operational activities was 17.4 million in revenue (excluding management expenses) over 27,610 operational days[18]. - The average age of the fleet is 13 years, with a focus on maintaining a younger fleet to enhance operational efficiency[27]. - The company operates a fleet where 4% of the global fleet of ultra-flexible bulk carriers is under its management, highlighting its significant market presence[26]. - The company has contracted four new dual-fuel ultra-large bulk carriers capable of operating on green methanol and sustainable biodiesel, expected to be delivered in 2028 and 2029[18]. - The company plans to continue updating and expanding its fleet with a disciplined approach, focusing on acquiring high-quality, modern second-hand vessels while selling older, less efficient ones[75]. Sustainability and Emissions - The company plans to transition to net-zero emissions by 2050, marking the first new ship order since 2014 as part of its long-term decarbonization strategy[18]. - The company is committed to sustainable business development and has received high recognition for its efforts in environmental, social, and governance aspects[46]. - The company aims to enhance fuel procurement strategies, prioritizing access to green fuels such as green methanol and sustainable biodiesel[76]. - The company is committed to transitioning to net-zero emissions by 2050, marking a significant milestone with the new vessel orders[62]. - The carbon emission intensity in 2024 was 42% lower compared to the 2008 baseline, with a target to reduce it by over 50% by 2030[166]. - The company is preparing for new decarbonization regulations and has implemented measures to comply with the EU's emissions trading system starting in 2024[179]. Market Outlook and Challenges - The company is optimistic about long-term industry fundamentals but remains cautious about geopolitical uncertainties and challenges in the dry bulk shipping market for 2025[18]. - Global dry bulk shipping trade is expected to grow by approximately 6% in 2024, driven by strong demand for iron ore, coal, and minor bulk commodities from China[59]. - The dry bulk shipping market is expected to start weak in 2025 due to lower-than-expected grain export volumes in Q4 2024[85]. - Geopolitical tensions and economic policies may create market volatility, impacting freight rates and overall demand for dry bulk commodities[108]. Employee and Safety Initiatives - The company recorded 11 lost time injury incidents out of over 20,000,000 man-hours, resulting in a lost time injury frequency of 0.54, ranking among the best in the industry[69]. - The company aims to continue investing in training and technology to enhance safety and health, with a goal to eliminate work-related injuries and promote a healthy work environment[35]. - The company has implemented additional psychological screening tests for crew members before boarding to enhance mental health support[189]. - The company has established a dedicated sustainability committee to oversee its sustainability strategies and ensure effective implementation[196]. Shareholder Value and Governance - The board proposed a final dividend of HKD 5.1 per share, with total dividends representing 50% of the annual net profit, excluding gains from ship sales[53]. - The company completed a share buyback plan in December 2024, repurchasing and canceling 138 million shares at a total cost of approximately $40 million[54]. - The company is actively considering all measures to enhance shareholder value, including dividends, share buybacks, and investments in new green vessels[56]. - The company emphasizes building strong relationships with stakeholders, including customers and employees, to foster trust and support[162].