Pacific Basin (2343.HK) has reported a strong financial performance for the year 2023, with a net profit of $109 million and an underlying profit of $119 million. The company’s EBITDA stood at $347 million, reflecting increased global demand for dry bulk, particularly from China. Despite a decline in freight rates attributed to various economic factors, Pacific Basin has maintained a solid financial position with $549 million in available liquidity.
The Board has recommended a final basic dividend of 1.6 Hong Kong cents per share and an additional special dividend of 4.1 Hong Kong cents per share, highlighting the company’s commitment to maximizing shareholder returns. Pacific Basin anticipates a more favorable market in 2024 and remains focused on expanding its fleet and improving earnings.
Key takeaways from Pacific Basin’s 2023 annual results include a positive outlook for the dry bulk market in 2024, with expected demand growth. The company’s owned and chartered fleet totals 266 vessels, with a focus on Handysize and Ultramax vessels. Despite challenges such as lower daily TCE earnings, Pacific Basin has demonstrated resilience in the face of market fluctuations.
CEO Martin Fruergaard expressed confidence in the market’s recovery post-Chinese New Year, highlighting the company’s cash breakeven point and potential for cost reduction. With a strategic focus on growth and efficiency improvements, Pacific Basin is well-positioned to navigate future challenges and opportunities in the industry.