Key Financial Highlights for 2025

• Pacific Basin Shipping Limited (Stock Code: 2343) reported an underlying profit of US\$59.2 million for 2025, with a net profit of US\$58.2 million and EBITDA of US\$263.1 million.
• This performance translated to a basic earnings per share (EPS) of HK8.9 cents (US1.14 cents), and a payout of dividends totaling HK7.6 cents per share for the year, representing a 100% payout of net profit (excluding vessel disposal gains).
• As of 31 December 2025, the company is debt free on a net basis with net cash of US\$134 million and total cash and deposits of US\$270.6 million. The company also maintains available committed liquidity of US\$756.1 million, with 46 vessels remaining unmortgaged.
• Pacific Basin completed a share buyback program totaling US\$40 million in 2025, buying back and cancelling 150.7 million shares at a discount to asset value, further boosting shareholder returns.
• The company’s dividend policy has been expanded: From 2026, if the company is in a net cash position, dividends may increase up to 100% of net profit (excluding disposal gains)—up from the prior minimum of 50%—with the possibility of additional special dividends and/or further share buybacks.

Strategic and Operational Highlights

• Pacific Basin’s integrated platform delivered solid performance in a year marked by evolving geopolitical and market challenges, including supply growth outpacing demand in the dry bulk market.
• The company’s TCE earnings outperformed the market due to its sector-leading cost structure and proven business model.
• Geopolitical turbulence, notably in the second half of 2025, supported stronger freight rates and demonstrated the resilience of the minor bulks segment.
• Proactive measures were taken to mitigate the impact of new US and Chinese port fees targeting Chinese and US-linked vessels. These included:
  • Expanding the Singapore company structure to hold about half the owned fleet, transferring these vessels to Singaporean ownership and flag.
  • Relocating strategic leadership and commercial decision-making to Singapore, while operational management remains global.
  • Adjusting Board composition in line with these structural changes.
• The company maintained a cash break-even of US\$6,880/day for Handysize and US\$6,540/day for Supramax vessels, underpinning profitability even in a weaker market.
• Pacific Basin continued to invest in digitalisation, risk management, and ESG integration, leveraging AI and automation for compliance, cyber security, and voyage planning. The company received multiple awards for ESG governance and reporting.

Important Shareholder Information & Potential Price Drivers

• Capital Return Policy Change: The most price-sensitive news is the expansion of the dividend policy. This could significantly increase capital returns to shareholders when the company is in a net cash position, potentially making the stock more attractive to dividend-focused investors and supporting the share price.
• Share Buybacks: The approval of another US\$40 million share buyback program for 2026—the third consecutive year—signals management’s confidence in the intrinsic value of the company and its commitment to shareholder value creation.
• Balance Sheet Strength: The company’s debt-free position and strong liquidity provide it with significant financial flexibility to pursue disciplined growth and weather market volatility. This financial resilience supports management’s confidence in continued attractive dividends and buybacks.
• ESG Integration & Awards: The introduction of ESG-linked remuneration for management, and recognition in ESG reporting and corporate governance, may enhance the company’s appeal to institutional investors with sustainability mandates.
• Regulatory and Geopolitical Adaptation: The company’s proactive reflagging and governance changes to mitigate US/China port fee risks reduces uncertainty and positions Pacific Basin for continued access to key trade routes—an important risk mitigant for investors concerned about geopolitical disruptions.
• Fleet Renewal and Strategic Investment: The company is poised to pursue counter-cyclical fleet renewal as the global fleet ages, with ample capacity to invest when the right opportunities arise.

Other Notable Details

• 2025 saw no significant acquisitions or disposals of subsidiaries, associates, or joint ventures.
• A total of 161.4 million new shares were issued upon the conversion of the company’s convertible bonds, which are now fully redeemed.
• The company’s public float remains robust at 66.55%, well above the 25% regulatory minimum.
• Pacific Basin continues to foster strong investor relations, with active engagement through roadshows, conferences, and regular reporting—contributing to transparency and investor confidence.
• The company’s stock is included in the Hang Seng Sub-index series and the MSCI Index series, and is eligible for Southbound Trading under the Shenzhen-Hong Kong Stock Connect programme.

2026 Outlook and Calendar

• The final dividend for 2025 (HK6.0 cents per share) is subject to approval at the AGM on 22 April 2026 and is payable on 12 May 2026 to shareholders on record as of 30 April 2026.
• Payouts for 2026 will follow the expanded dividend policy, potentially increasing returns further if the net cash position is maintained or improved.

Conclusion

Pacific Basin’s 2025 Annual Report signals a resilient, agile, and shareholder-focused company. The expansion of the dividend policy and continued share buybacks are likely to be viewed positively by the market. The company’s strong financial position, adaptability to regulatory changes, and ongoing investments in sustainability and digitalisation further strengthen its outlook for long-term value creation.