PACIFIC BASIN(02343)2024-02-29 08:39Financial Performance - The company reported a basic profit of $119.2 million and a net profit of $109.4 million for the year ending December 31, 2023, with an EBITDA of $347.2 million, reflecting a return on equity of 6% and basic earnings per share of 16.5 HK cents[3]. - The company recorded a basic profit of $119,200,000 in 2023, a decline in freight rental rates compared to 2022 due to economic slowdown and increased shipping supply[5]. - The company reported a basic profit of $119.2 million for 2023, a decrease of 83% compared to $714.7 million in 2022, primarily due to falling freight rates[34]. - Basic profit attributable to shareholders was $109.4 million, an 84% decrease from $701.9 million in 2022[68]. - The company experienced a 27% decrease in freight rental income, from $2,683,135 thousand in 2022 to $1,964,167 thousand in 2023[75]. - The company reported a net profit attributable to shareholders of $109,379 thousand, a decline of 84% from $701,856 thousand in the previous year[70]. - The company recorded a non-cash impairment charge for smaller handy-sized bulk carriers, representing about 4% of the fleet's book value[70]. Revenue and Expenses - The company reported a revenue of $2,296.6 million for 2023, down 30% from $3,281.6 million in 2022[68]. - Revenue for the year ended December 31, 2023, was $2,296,622 thousand, a decrease of 30% from $3,281,626 thousand in 2022[70]. - Gross profit for 2023 was $130,951 thousand, down 82% from $732,078 thousand in 2022[70]. - Financial expenses decreased by 55% to $22,650 thousand, attributed to reduced average borrowings and increased interest income[70]. - General and administrative expenses were reduced to $76 million in 2023 from $89.9 million in 2022, with a competitive average daily expense of $760[51]. - The company incurred lease expenses of $656,498 thousand in 2023, a reduction of 32.9% from $978,630 thousand in 2022[76]. - Fuel costs decreased to $591,008 thousand in 2023, down 8.3% from $644,301 thousand in 2022[76]. Fleet and Operations - A total of 115 small and ultra-small bulk carriers are currently in operation, with plans to expand the fleet further by acquiring modern second-hand vessels[2]. - The total fleet capacity is 5.3 million tons, with an average age of 13 years for owned vessels[4]. - The core fleet consists of 132 small and ultra-small bulk carriers, with a total operational capacity of approximately 5,300,000 deadweight tons, reflecting a 4% increase[20]. - The company sold eight vessels in 2023 and purchased eight modern second-hand vessels, including six ultra-large bulk carriers[2]. - The company has signed long-term lease agreements for three newly built small bulk carriers and four 40,000 deadweight ton small bulk carriers, scheduled for delivery between Q2 2024 and Q1 2025[20]. Dividends and Shareholder Returns - The overall dividend payout for the year is 75% of the net profit, with a final dividend of 1.6 HK cents and a special dividend of 4.1 HK cents per share[2]. - The company maintains a dividend policy of distributing no less than 50% of annual net profit (excluding gains from vessel sales), with additional distributions possible through special dividends or share buybacks[5]. - The board proposed a final dividend of HKD 0.016 per share and an additional special dividend of HKD 0.041 per share, totaling 75% of the annual net profit[12]. - The total dividend for the year was 12.2 HKD per share, which includes an interim dividend of 6.5 HKD and a proposed final special dividend of 4.1 HKD[79]. Environmental and Safety Initiatives - The company aims to achieve full decarbonization by 2050 and is actively working on reducing carbon emissions from existing vessels while preparing to transition to new low-emission vessels and fuels[8]. - The company is collaborating with Nihon Shipyard Co. and Mitsui & Co. to develop low-emission vessels capable of operating on methanol and dual fuel, with potential contracts for construction in 2024[8]. - Carbon emissions density has decreased by 40% compared to the 2008 baseline year, with a target to reduce it by more than half by 2030[18]. - The company is committed to maintaining the highest health and safety standards for its employees and providing training to adapt to evolving business challenges[23]. Market Outlook and Industry Trends - The company remains optimistic about the long-term potential of the dry bulk shipping market due to favorable supply and demand fundamentals[2]. - The long-term outlook for the dry bulk shipping industry remains positive due to favorable supply fundamentals and increasing demand for commodities, despite some economic slowdowns in certain countries[24]. - The company anticipates that demand for dry bulk commodities will increase due to economic recovery in China and global demand[32]. - The overall dry bulk shipping market is expected to see seasonal demand increase after the Lunar New Year, supported by limited vessel availability through the Suez and Panama Canals[26]. Corporate Governance and Diversity - The company emphasizes strong corporate governance and accountability, with recent appointments of two new non-executive directors to enhance board diversity and expertise[10]. - The company is focused on employee safety and well-being, with a commitment to avoiding workplace injuries and enhancing overall welfare[9]. - The company is actively promoting gender diversity, with 42% of onshore employees being women and ongoing efforts to recruit female cadets[10]. - The company is focused on creating an inclusive work environment that encourages employee contributions and eliminates barriers[23].