Pacific Basin Shipping Limited (“Pacific Basin” or the “Company”, SEHK 2343), one of the world’s leading dry bulk shipping companies, today announced unaudited condensed consolidated results of the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 June 2020.
“Global Covid-19 containment measures impacted dry bulk trade and our underlying results, but we achieved a positive EBITDA of US$79 million and continued to significantly outperform the market. We have cash and committed liquidity of US$350 million. Freight market earnings have improved since May, and we expect a seasonally stronger albeit volatile second half and generally improved market conditions,” Pacific Basin says in a press release.
Mr. Mats Berglund, CEO of Pacific Basin, said: “In a challenging half-year period dominated by the global Covid-19 pandemic and related economic disruption and weaker dry bulk freight rates, we delivered a positive EBITDA of US$79.2 million. Our core business of deploying owned and long-term chartered ships generated Handysize and Supramax TCE earnings that outperformed the BHSI (tonnage adjusted) and BSI spot market indices by US$2,270 and US$4,250 respectively. Our operating activity generated a margin of US$1,790 net per day.
Our underlying results were negatively impacted by global efforts to contain the pandemic while the dry bulk fleet continued to grow. Overall, we made a net loss of US$222.4 million, mostly attributable to a US$198.2 million one-off non-cash impairment of our Handysize core fleet (primarily our smallest and oldest Handysize vessels), which does not impact our operating cash flows, EBITDA or available liquidity, and will result in lower depreciation costs, higher EPS and higher return on equity going forward, all things being equal.
Source: Pacific Basin