Pacific Basin Shipping Limited

Pacific Basin reported first-half 2026 revenue of USD 1.1 billion, up 9% year on year, TCE earnings of over USD 660 million, up 20%, EBITDA of USD 197.8 million, underlying profit of USD 94.9 million, and net profit of USD 105 million, which management said was more than 300% higher year on year. Operating performance before overheads increased to USD 138 million from USD 62 million in H1 2025. On the balance sheet, net cash was USD 157.2 million at June 30, operating cash flow was USD 143.5 million, and available committed liquidity was USD 673.6 million. For the third quarter, the company has already covered 78% of Handysize core fleet committed vessel days at USD 15,810/day and 82% of Supramax core fleet committed vessel days at USD 18,680/day. Management said 3Q and 4Q look supported by strong FFAs and continued market disruption, but did not provide full-year earnings guidance.

Martin Fruergaard framed the quarter as evidence that Pacific Basin is benefiting from a stronger but volatile market while continuing to outperform peers. He emphasized geopolitical disruption, longer voyage distances, and congestion as factors supporting freight rates, and said the company is positioned to maximize earnings in a positive freight environment. His tone was confident and disciplined, repeatedly stressing countercyclical fleet renewal, optionality, and shareholder returns.

Jimmy Ng highlighted strong operating and financial execution: revenue up 9% year on year to USD 1.1 billion, TCE earnings up 20% to over USD 660 million, and operating performance before overheads up to USD 138 million from USD 62 million. He said average daily OpEx for Handysize and Supramax was broadly stable at around USD 4,790, finance costs fell 15% to around USD 110 per day due to lower borrowings, and operating cash flow was USD 143 million, with loans repaid by USD 88.9 million. He also detailed CapEx of USD 57.3 million in H1, including USD 19.3 million for one delivered Ultramax, USD 20.1 million for dry dockings and other additions, and around USD 18 million of deposits on six Handysize newbuildings, while ending cash was USD 207 million with USD 467 million undrawn facilities.

Analysts focused on how much the Strait of Hormuz disruption is boosting the market and what happens if tensions ease; management said the market has been resilient despite cargo losses, longer rerouting, congestion, and higher bunker volatility, and suggested there may still be pent-up demand even if the route reopens. Questions also centered on why 3Q cover is lower than last year and whether the second half should be stronger; management said they were less aggressive on contract cover, that the uncovered portion is paying well, and that current indices and FFAs support the outlook. On fleet growth and CapEx, management said it has 10 newbuildings on order plus options on additional vessels, with about USD 280 million of remaining newbuilding payments due mainly from 2H 2027 into 2028, and that high secondhand/newbuild prices make optionality and selective selling of older ships important.