Half Year 2024 Pacific Basin Shipping Ltd Earnings Call Transcript
Key Points
- Pacific Basin Shipping Ltd (PCFBF) reported a net profit of USD58 million for the first half of 2024, with an EBITDA of USD158 million.
- The company declared an interim dividend of HKD4.1 per share, amounting to USD28 million, representing 50% of net profit for the period.
- Pacific Basin Shipping Ltd (PCFBF) has a strong financial position with USD537 million in committed liquidity and net borrowings of just USD32 million.
- The company has launched a share buyback program of up to USD40 million, with approximately 42.7 million shares repurchased and canceled for USD14.6 million.
- The company outperformed the Baltic Exchange Handysize Index and Supramax Index by $840 and $410 per day, respectively, in the first half of 2024.
- Despite the rise in daily TCE earnings, both underlying profit and EBITDA have declined due to increased chartered vessel costs and higher expenses related to bunkers and port disbursements.
- The company's Supramax outperformance was negatively impacted by increased costs associated with chartering short-term core vessels in the Pacific.
- Handysize and Supramax daily TCE earnings decreased by 9% and remained flat compared to the first half of 2023.
- The company anticipates limited upside potential if market freight rates continue to strengthen due to Supramax/Ultramax scrubber limitations.
- Higher depreciation costs were reported due to increased dry docking costs and investments in fuel-efficiency technology.
Welcome to today's Pacific Basin 2024 interim results announcement conference call. I'm pleased to present Chief Executive Officer, Mr. Martin Fruergaard; and Chief Financial Officer, Mr. Michael Jorgensen. (Operator Instructions)
Mr. Fruergaard, please begin.
Thank you very much. So welcome, ladies and gentlemen, and thank you for attending Pacific Basin's 2024 interim results earnings call. My name is Martin Fruergaard, CEO of Pacific Basin; and I'm joined by our CFO, Michael Jorgensen.
I assume you have already reviewed the presentation. We will briefly highlight some of its key points before moving on to the Q&A session. So please turn to slide 3.
The first half of 2024, we generated an underlying profit of USD44 million and a net profit of USD58 million with an EBITDA of USD158 million. This resulted in a 6% annualized return on equity with basic earnings per share of HKD8.7. Our large core business generated USD77 million before
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