Pacific Basin Shipping Limited

For the first half of 2026, Pacific Basin reported revenue of USD 1.1 billion, TCE earnings of over USD 660 million, EBITDA of USD 197.8 million, underlying profit of USD 94.9 million, and net profit of USD 105 million. Net profit was up more than 300% year-on-year, revenue was up 9%, and TCE earnings were up 20%; operating performance before overheads rose to USD 138 million from USD 62 million a year ago. The company ended 30 June 2026 with net cash of USD 157.2 million, committed liquidity of USD 673.6 million, and operating cash flow of USD 143.5 million. For 3Q26, it has already covered 78% of Handysize and 82% of Supramax core fleet days at USD 15,810 and USD 18,680 per day, respectively. Management did not provide formal full-year earnings guidance, but said it expects dry bulk market conditions to remain resilient and sees a positive freight environment for the rest of the year.

Martin Fruergaard emphasized that the company benefited from geopolitical disruption and trade inefficiencies, especially around the Arabian Gulf, and said these factors extended voyage distances and supported rates. He framed Pacific Basin’s strategy as disciplined and countercyclical: renewing the fleet over time, keeping optionality through owned ships, long-term charters, and purchase options, and continuing to sell older vessels when values are attractive. His tone was confident and upbeat, repeatedly saying the market has been resilient and that the company is well positioned to maximize earnings for the rest of the year.

Jimmy Ng focused on the financial strength of the business and the drivers of margin improvement. He cited average daily Handysize TCE of USD 14,150 and Supramax TCE of USD 16,550, both up year-on-year, while average daily OpEx stayed broadly stable at around USD 4,790 and finance costs fell 15% to around USD 110 per day due to lower borrowings. He also detailed operating cash flow of USD 143 million, vessel-sale proceeds of USD 9.5 million, loan repayments of USD 88.9 million, CapEx of USD 57.3 million, and closing cash of USD 207 million, alongside USD 467 million of undrawn facilities. For future spending, he said maintenance dry-docking typically runs about USD 40 million to USD 50 million per year and that around USD 280 million remains to be paid for newbuildings, mainly from 2H27 through 2028 onward.

Analysts asked about the impact of the Strait of Hormuz, lower 3Q forward cover versus last year, El Niño and the Panama Canal, coal demand, cargo mix, fleet expansion, CapEx, slow steaming, and whether outperformance can continue. Management said Hormuz disruption has helped rates through longer voyages, rerouting, congestion, and bunker volatility, and that a reopening could add cargo back into the market while not necessarily being negative for dry bulk. On fleet strategy, management said high newbuilding prices make optionality important: Pacific Basin has 10 newbuildings on order, 2 additional options on newbuildings, and 13 purchase options on long-term charters, all with fixed prices and fixed extension rates. They also said they are not reducing fleet speed this year and do not see slow steaming as the main driver of current freight rates; they expect outperformance to continue over time, though quarter-to-quarter results can vary as markets change rapidly.