PACIFIC BASIN(HK:02343)2023-07-31 08:56Financial Performance - Pacific Shipping Group reported a basic profit of $76.2 million, net profit of $85.3 million, and EBITDA of $189.1 million for the six months ended June 30, 2023[3]. - Revenue for the six months ended June 30, 2023, was $1,148.1 million, a decrease of 33% compared to $1,722.8 million in the same period of 2022[61]. - Adjusted EBITDA for the period was $189.1 million, down 67% from $566.9 million year-over-year[61]. - Basic earnings per share for the six months ended June 30, 2023, was $1.64, a decline of 83% from $9.53 in the same period of 2022[63]. - Net profit margin decreased to 7% from 27% year-over-year, reflecting a significant drop in profitability[61]. - The company reported a net cash outflow of $37,900,000 for borrowing during the first half of 2023, while generating $42,900,000 from the sale of three small bulk carriers and one ultra-large bulk carrier[57]. - The company experienced a 78% reduction in net financial expenses, attributed to lower average borrowings and increased interest income[61]. Fleet and Operations - The company currently operates a fleet of 121 small and ultra-large bulk carriers, with a total of approximately 282 vessels[3]. - The average daily net income for small and ultra-large bulk carriers was reported at $13,030 and $13,700 respectively, contributing to a total of $96.1 million[3]. - The average daily income for small and ultra-small bulk carriers decreased by 51% and 60% year-on-year to $13,030 and $13,700 respectively[5]. - Daily profit from operational activities reached $1,550, contributing $17 million to the group over 11,000 operational days[5]. - The average daily breakeven level for small handy and super handy bulk carriers in the first half of 2023 was $9,600 and $11,190 respectively[39]. - The average daily rental income for small handy bulk carriers was $13,030 over 14,380 charter days, while for super handy bulk carriers it was $13,700 over 9,810 charter days[34]. Market Conditions - Global demand for dry bulk cargo increased year-on-year, primarily due to higher coal and iron ore loading volumes[3]. - Despite short-term challenges, the company remains optimistic about the long-term potential of dry bulk shipping due to a solid supply foundation[3]. - The order volume for dry bulk carriers decreased by 18% year-on-year in the first half of 2023, with new orders representing only 7.4% of the existing fleet[6]. - The global dry bulk fleet recorded a modest net growth of 1.6%, with the growth of small and ultra-small bulk carriers at only 1.5%[6]. - The ongoing global economic slowdown, inflation, and rising interest rates are expected to continue impacting global demand and freight rates[19]. Environmental Initiatives - The company plans to invest in zero-emission vessels and is developing the first generation of methanol-powered ultra-large bulk carriers[3]. - The International Maritime Organization (IMO) has adopted a revised greenhouse gas strategy aiming for net-zero emissions by around 2050, aligning with the company's own commitment[8]. - The company aims for its entire fleet to consist of zero-emission vessels by 2050, continuously evaluating and implementing various technologies to improve fuel efficiency[9]. - The company is collaborating with Nihon Shipyard Co. and Mitsui & Co. to design zero-emission vessels powered by methanol, with the first generation expected to be contracted by the end of 2024[9]. - The introduction of new environmental regulations is anticipated to increase the scrapping of older, less efficient vessels, positively impacting the freight market[7]. Dividends and Shareholder Information - The board declared an interim dividend of 6.5 HK cents per share, representing 51% of the net profit for the period[4]. - The company declared an interim dividend of 6.5 HK cents per share for the six months ended June 30, 2023, compared to 6.6 HK cents in the same period of 2022[71]. - The company's shareholder register will be temporarily closed for transfer registration on August 15, 2023, with the ex-dividend date set for August 11, 2023[81]. - The interim report for the fiscal year 2023 will be published in both Chinese and English and is expected to be sent to shareholders around August 16, 2023[82]. Financial Stability - The company maintained a strong financial position with available liquid funds of $375.1 million and a net debt ratio of 7%[4]. - Total assets as of June 30, 2023, amounted to $2,515.8 million, down from $2,648.7 million at the end of 2022[65]. - Non-current liabilities decreased to $272.1 million from $314.5 million at the end of 2022, indicating improved financial stability[65]. - The company maintains a balance between fixed and floating interest rates, with 75% of borrowings at fixed rates as of June 30, 2023[60].