PACIFIC BASIN(HK:02343)2025-02-28 09:25Financial Performance - For the year ending December 31, 2024, the company reported revenue of $2,581.6 million, an increase of 12.4% from $2,296.6 million in 2023[6]. - The company achieved a basic profit of $114.1 million and a net profit of $131.7 million, with an EBITDA of $333.4 million[7]. - The basic earnings per share increased to 19.9 HK cents from 16.5 HK cents, reflecting a growth of 20.5%[6]. - The company recorded a basic profit of $114.1 million in 2024, a decrease of 4% compared to 2023, primarily due to increased employee and IT-related expenses[62]. - Shareholder profit increased by 20% to $131.7 million from $109.4 million in 2023[107]. - The average return on equity rose to 7% from 6%[107]. - The company reported a net profit margin of 5%, unchanged from the previous year[107]. - The company's pre-tax profit for 2024 was $131.7 million, an increase of 20.4% compared to $109.4 million in 2023[123]. Dividends and Shareholder Returns - The board proposed a final dividend of 5.1 HK cents per share, bringing the total dividend to 50% of the annual net profit, excluding gains from vessel sales[8]. - The board proposed a final dividend of HKD 0.051 per share, along with an interim dividend of HKD 0.041 per share, totaling 50% of the annual net profit (excluding gains from vessel sales) for 2024[15]. - The total dividend for the year was $0.12 per share, down from $0.16 per share in 2023, reflecting a decrease of 1.2%[121]. - The company repurchased a total of 138,221,000 shares at a total cost of approximately $40 million, aimed at optimizing capital structure and enhancing shareholder returns[129]. Financial Position and Liquidity - The company maintained a strong financial position with cash and deposits amounting to $282 million and committed available liquidity of $547.6 million as of December 31, 2024[7]. - As of December 31, 2024, the company had no net debt, with a cash net amount of $19.7 million and committed available liquidity of $547.6 million[17]. - Cash and cash equivalents increased by 8% to $282 million as of December 31, 2024, compared to $261.5 million in 2023[98]. - Total borrowings decreased by 13% to $262.3 million from $300.4 million in the previous year[98]. - The net cash position improved significantly to $19.7 million from a net debt of $38.9 million in 2023, representing a greater than 100% increase[98]. - The company's total liabilities decreased to $100.31 million in 2024 from $104.67 million in 2023, indicating improved financial health[127]. Operational Performance - The average daily income for small and ultra-large bulk carriers was $12,840 and $13,630 respectively, generating a total revenue of $178.4 million[7]. - The average daily income for small bulk carriers was $12,840, while for ultra-small bulk carriers it was $13,630, outperforming the BHSI index by $1,720 (15%) and $710 (5%) respectively[80]. - The operational activities contributed $17.4 million in 2024, a decline of 32% from $25.6 million in 2023[63]. - The average daily operating expenses for small and ultra-small bulk carriers decreased by 2% to $4,750, attributed to the normalization of crew costs[85]. - The average daily financial expenses increased by 25% to $150, primarily due to a decrease in interest income from falling interest rates[87]. - General and administrative expenses rose to $82,700,000 from $76,000,000, with an average daily expense of $780, remaining competitive[88]. Market Trends and Industry Outlook - Global dry bulk shipping trade volume increased by approximately 6% in 2024, driven by strong demand for iron ore, coal, and minor bulk commodities from China[22]. - The demand for minor bulk commodities rose by about 9% in 2024, primarily due to strong imports of iron ore and forestry products into China[23]. - The global dry bulk fleet's net growth was maintained at 3% in 2024, with an 18% increase in new deliveries of small and ultra-small bulk carriers[24]. - The dry bulk shipping market is projected to experience a return to volatility in 2025, influenced by geopolitical tensions and trade policy uncertainties[34]. - The overall dry bulk fleet's supply growth is expected to exceed demand growth in 2025 due to high new ship deliveries and limited scrapping[60]. - The geopolitical tensions and climate-related events are anticipated to continue affecting market conditions, making it challenging for the company to capture the full market value[62]. Sustainability and Environmental Initiatives - The company is committed to achieving net-zero emissions by 2050, with orders for four dual-fuel newbuild bulk carriers capable of operating on green methanol and sustainable bio-diesel[11]. - The company aims to enhance energy efficiency of its existing conventional fuel-powered vessels, with a focus on applying ultra-low friction silicone resin hull coating technology to over one-third of its fleet, potentially reducing fuel consumption by approximately 8%[27]. - The investment in low-emission vessels is based on the belief that a market for such vessels will emerge quickly due to regulatory developments, providing attractive long-term economic benefits[26]. - The company emphasizes the importance of fuel procurement, including prioritizing access to green fuels such as green methanol and sustainable biodiesel[38]. Fleet and Vessel Management - The company ordered four new dual-fuel ultra-large bulk carriers capable of running on green methanol and sustainable biodiesel, marking its first new vessel order since 2014[7]. - The estimated market value of the company's small and ultra-large bulk carriers was $2,008 million, significantly higher than the book value of $1,676.2 million[7]. - The average age of the existing fleet is 14 years for small handy bulk carriers, with 8.8% of the fleet being over 20 years old as of January 1, 2024[53]. - The delivery of new small handy and super handy bulk carriers is expected to increase by 18%, while the delivery of Capesize and Panamax bulk carriers is projected to decrease by 28% and 8%, respectively[54]. - The company plans to continue updating and expanding its fleet with a disciplined approach, focusing on acquiring modern second-hand vessels and selling older, less efficient ships[35]. Safety and Employee Welfare - The company recorded 11 lost-time injury incidents over 20,000,000 man-hours in 2024, resulting in a lost-time injury frequency rate of 0.54, ranking among the best in the industry[30]. - The company is committed to maintaining the highest health and safety standards for its employees, providing training to adapt to evolving business challenges[31]. - The company has made significant progress in its sustainable development initiatives, focusing on safety, security, health, and well-being, as well as diversity, equity, and inclusion[30].