Pangaea Logistics Solutions(US:PANL)2021-08-11 13:29Financial Data and Key Metrics Changes - The second quarter results were record-breaking, with average net TCE earning $21,053, an increase of almost 100% compared to the second quarter of 2020 [9] - Net income for the quarter was $19.2 million or $0.44 per share, compared to net income of $3 million or $0.07 per share for the same period in 2020 [21] - Voyage revenues increased approximately 76% and charter revenues increased approximately 695% [17] Business Line Data and Key Metrics Changes - The company took delivery of two new ice class vessels and three secondhand vessels, expanding its fleet to 24 owned vessels [12] - Charter expenses paid to third-party shipowners increased to $62.6 million from $15.2 million, a 312% increase due to rising market rates [19] Market Data and Key Metrics Changes - The dry bulk market saw freight rates rise to levels not seen in over a decade, benefiting the company's operations [8] - As of August 9, the company performed 2,530 shipping days at an average TCE rate of approximately $27,000 a day [14] Company Strategy and Development Direction - The company is focused on capitalizing on an improving dry bulk market and generating shareholder value through strategic vessel acquisitions [13] - The management emphasized the importance of maintaining a client-focused business model to ensure profitability in volatile markets [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fundamentals in the dry bulk market, citing historically low order books and stable demand outlook [13] - The company plans to remain opportunistic in acquiring new vessels and developing new business that complements its platform [14] Other Important Information - The company reinstated its dividend at $0.035, which has been maintained this quarter [13] - Unrealized gains on derivative instruments were $6.3 million for the second quarter of 2021 compared to $1.4 million for the same period in 2020 [20] Q&A Session Summary Question: Thoughts on divesting older assets due to high asset prices? - Management indicated that while older ships could be sold for a premium, the trading value is more beneficial, and the current market for secondhand vessels is challenging [28][30] Question: Strategy on balancing time charters and spot in a rising rate environment? - Management stated that they view the current market as an opportunity to build their business, including terminals and logistics, while remaining opportunistic with owned ships [31][32]