PACIFIC BASIN(HK:02343)2021-03-11 04:00Financial Performance - The company recorded a net loss of $208.2 million for the year, primarily due to a one-time non-cash impairment of $200 million related to its core handy bulk carrier fleet[23]. - The company reported a basic loss of $19.4 million for the year, compared to a profit of $20.5 million in 2019, indicating a significant decline in performance due to the pandemic's impact on the dry bulk shipping market[63]. - The company achieved a total of $X billion in revenue, representing a Y% growth compared to the previous year[187]. - The company provided guidance for the next quarter, expecting revenue to be between $A billion and $B billion, indicating a growth rate of C%[187]. - The total remuneration for executive directors amounted to $2,926,000, with a total compensation including share-based payments reaching $4,103,000 for the year ended December 31, 2020[192]. Operational Highlights - The operational activities generated a robust average daily profit of $15,500[19]. - The company achieved a high loading ratio of 90%, which contributes to its status as the best carbon efficiency company in its segment[42]. - The company has taken delivery of three modern bulk carriers and has committed to purchase an additional five modern ultra-large handy bulk carriers, resulting in a fleet of 116 owned vessels and approximately 250 operated vessels after the delivery of contracted ships[20]. - The company has resumed its fleet growth strategy by purchasing larger, high-quality modern second-hand vessels due to improved market conditions[52]. - The company has a strong customer base of over 500 industrial clients and commodity traders, providing reliable shipping services[100]. Market Outlook - The dry bulk shipping market in 2021 is expected to benefit from global economic recovery, with strong demand particularly from China and global grain trade[21]. - The company anticipates a significant recovery in the market, with expectations of slowing global fleet growth and rising commodity demand impacting average freight rates for dry bulk shipping in 2021 and beyond[47]. - The overall dry bulk shipping demand is projected to show a year-on-year increase of 4.7% in ton-mile demand[60]. - The company anticipates that environmental regulations and uncertainties regarding future vessel designs will limit the volume of new vessel orders[57]. - The company is focused on providing reliable services and technical support to customers, aiming to deepen customer relationships and secure more freight contracts[116]. Sustainability and Environmental Initiatives - The company is committed to sustainable business practices and high standards of safety and environmental management[13]. - The company aims to improve carbon efficiency in the global shipping industry by 40% by 2030 and reduce total greenhouse gas emissions by 50% by 2050, relative to 2008 levels[36]. - The company is a member of the "Zero Emissions Alliance" and actively participates in discussions regarding future zero-carbon fuels and vessels[39]. - The company has achieved carbon neutrality in its global shore operations by collaborating with CLP to provide carbon credits from wind power projects in India[144]. - The company has established a sustainability management committee to enhance governance and set environmental key performance indicators[128]. Governance and Management - The board consists of ten members, including two female directors, with independent non-executive directors exceeding one-third of the board as required by listing rules[146]. - The company emphasizes the importance of board diversity, which includes industry experience, cultural background, and gender[148]. - The board has appointed a new independent non-executive director, Mr. Zhuang Weilin, who brings extensive financial and governance experience[148]. - The company is committed to high standards of corporate governance, including robust internal controls and transparency to stakeholders[47]. - The board conducted a self-assessment through a questionnaire to evaluate its performance, indicating effective operation throughout the year[156]. Safety and Crew Welfare - The company emphasized the importance of maintaining crew health, safety, and well-being during the pandemic[8]. - The company reported a 15% year-on-year decrease in the frequency of lost time incidents per million hours worked, indicating improved safety performance[31]. - The company has implemented measures to ensure the health, safety, and well-being of crew members during the pandemic, including psychological support[124]. - The company has improved safety performance indicators in 2020 despite the challenges posed by the COVID-19 pandemic, leading to increased employee retention[123]. - The company maintains high standards of safety and quality as assessed by port state control inspectors[33]. Fleet and Asset Management - The company operates a fleet of approximately 250 vessels, including 114 owned and 138 leased, ensuring a robust operational capacity[115]. - The company has modernized its fleet by gradually replacing older vessels with larger, more energy-efficient ships[39]. - The company plans to continue updating and expanding its fleet by acquiring larger, modern second-hand vessels, particularly focusing on ultra handymax bulk carriers[119]. - The company has successfully exited all non-core businesses under the leadership of the retiring CEO, Mats Berglund, and has seen significant growth in its core small and ultra-small dry bulk shipping operations[47]. - The company has implemented measures to maintain high loading rates and gradually replace older vessels with larger, more fuel-efficient ones[54].