Shipping Network News: Hong Kong-listed Pacific Basin Shipping Limited (“Pacific Basin”, 02343HK) announced its first-half 2025 results on August 7.
Pacific Basin stated that the dry bulk market in the first half of 2025 was weaker compared to the same period over the past four years. This was due to an unusual combination of commodity-specific factors affecting the three major dry bulk commodities in the first quarter, though these commodities saw a recovery in the second quarter.
In the first half of 2025, Pacific Basin achieved operating revenue of $1.02 billion, a year-on-year decrease of 21%; EBITDA was $120 million, down 23% year-on-year; net profit was $25.6 million, a decline of 56% year-on-year; and earnings per share were 3.9 HK cents.
During the first half of 2025, the average daily time charter equivalent (TCE) for Pacific Basin’s core Handysize fleet reached $11,010, down 7% year-on-year, while the Supramax fleet’s average daily TCE was $12,230, a decrease of 11% year-on-year.
Pacific Basin noted that the average daily TCE for its Handysize and Supramax dry bulk fleets outperformed the spot market indices in the first half, exceeding the indices by $2,320 and $3,480, or 27% and 40% respectively, consistent with its historical performance.
For the second half of 2025, its core Handysize and Supramax fleets have secured 60% and 74% of operating days at average daily rates of $11,680 and $13,480, respectively.
Pacific Basin’s OP business also delivered solid results, achieving an average daily profit of $710 over 14,200 operating days in the first half, up 29% year-on-year, contributing $10.1 million to the group.
Maintaining a Long-Term Growth Strategy
Pacific Basin stated that business growth remains its top priority. It will rigorously renew, expand, and optimize its fleet to prepare for a low-carbon future while considering the cyclical nature of dry bulk shipping. This includes acquiring high-quality, modern secondhand vessels and selling older, less efficient ships; ordering additional low-emission newbuildings; entering into long-term charters for newbuildings; and continuously seeking value-accretive merger and acquisition opportunities with strategic and cultural alignment.
As of now, Pacific Basin owns 108 Handysize and Supramax vessels and controls approximately 260 vessels daily, including chartered ships. Additionally, Pacific Basin has ordered four Supramax bulk carriers in Japan, scheduled for delivery in 2028 and 2029.
Remaining Optimistic About the Dry Bulk Market Outlook
Pacific Basin expressed optimism about the dry bulk market’s prospects despite its weakness in the first half of 2025. In the short term, the market is expected to consolidate, and while downside risks persist, no significant market downturn is anticipated. In the long term, as global green energy infrastructure development accelerates and urbanization continues rapidly in emerging economies, driving growth in steel, cement, and construction material trade, Pacific Basin will benefit from the fast-growing demand for minor bulk and grain cargoes.
Pacific Basin also believes the supply outlook is encouraging. The market has successfully absorbed the recent wave of newbuilding deliveries without significant pressure. Meanwhile, dry bulk vessel orders remain constrained by limited shipyard capacity. Additionally, increasing environmental regulations are putting pressure on older vessels, raising the likelihood of a structural shortage in minor bulk vessel supply.
