Pacific Basin Shipping Back in the Black

The Hong Kong-based maritime transport company Pacific Basin Shipping, has announced unaudited interim net profit of US$30.8 million (HK$241.74 million), compared with a net loss of US$12 million last year.

The international dry bulk shipping company declared an interim dividend of HK$2.5 cents.

Pacific Basin's Handysize and Supramax daily TCE earnings outperformed the market indices by 19% and 11% respectively. It has secured a US$325 million revolving credit facility that significantly extends its repayment profile and lowers our finance costs.

"We acquired five modern vessels including four funded 50% by equity, which will grow our owned fleet to 111 ships Including chartered ships, we operated an average of 225 vessels in the half year," said a press release from the company.

Pacific Basin has covered 54% and 67% of our Handysize and Supramax revenue days for second half 2018 at US$9,610 and US$11,010 per day net respectively. " Our blended Handysize and Supramax vessel operating expenses averaged US$3,810 per day and we maintain a competitive cost structure overall," it said.

Mats Berglund, CEO of Pacific Basin, said: “The minor bulk freight market strengthened again in the first half of 2018 which, combined with our high laden utilisation, continued outperformance and competitive cost structure, enabled us to record a much improved net profit of US$30.8 million and EBITDA of US$99.3 million for the half year."

"In view of the recovering market conditions and our return to a meaningful level of profitability, we are recommencing dividend payments in line with the dividend policy of paying out at least 50% of net profits excluding disposal gains for the full year," Mats added.