Full ahead for Pacific Basin

EVER-present in Oceania trades, Hong Kong-listed minor bulks specialist Pacific Basin Shipping (PacBasin) has reported a strong first half result.

In the first half of 2026, PacBasin generated an underlying profit of US$94.9 million, up 333% year on year, while net profit increased 310% to US$105.0 million. EBITDA rose 63% to  US$197.8 million. This equates to an annualised return on equity of 11% and basic earnings per share of HK16.1 cents.

The improvement reflected stronger freight markets and the group’s continued ability to outperform throughout the market cycle, PacBasin said.

The core business handysize and supramax daily time-charter equivalent (TCE) earnings exceeded benchmark indices by 16% and 17% respectively, “demonstrating the value of our integrated operating platform with global customer network and triangulated trading model".

“Complementing our core business, our operating activity contribution before overheads increased 33% compared to the first half of 2025, corresponding to a margin of US$1,060 per day. This activity continues to provide a valuable earnings contribution while enabling us to support customers even when our core vessels are unavailable,” PacBasin said.

“Our earnings outperformance is reinforced by strong cost discipline. Vessel operating expenses, overheads and financing costs remain well controlled and competitive, supporting resilient margins and strong cash generation through the cycle.

“Beyond our financial performance, we continued to strengthen our safety and environmental performance. Our LTIF improved to 0.32, among the best results in our history, while our owned fleet's carbon intensity (EEOI) improved by 5% compared with full-year 2025 and is now 45% below our 2008 baseline.”

Chief executive Martin Fruergaard said “amid heightened geopolitical disruption, we continued to outperform the market and delivered strong financial results".

"Our integrated platform, disciplined operations and financial strength enabled us to navigate volatility, capture opportunities and create sustainable shareholder value through the dry bulk cycle," he said.

PacBasin continued its disciplined fleet renewal and growth strategy through selective vessel acquisitions, chartering activity and newbuilding commitments, it said. During the first half of 2026, the company took delivery of a previously long-term chartered ultramax vessel, exercised purchase options on two chartered Handysize vessels, and added a long-term chartered ultramax newbuilding with delivery in 2027.

As reported on 16 April 2026, the company expanded its orderbook by replacing four dual-fuel ultramax orders with four fuel-efficient conventionally fuelled ultramax newbuildings, while also securing an option to acquire two dual-fuel vessels. It also increased its orders for handysize vessels from four to six, strengthening its pipeline of modern and efficient tonnage.

PacBasin also holds purchase options, declarable between 2026 and 2031, on 12 of its 13 long-term chartered vessels (of which the company has declared two options so far this year) and on all three long-term chartered vessels still to deliver into its fleet.  As at 30 June 2026, PacBasin’s fleet on the water comprised 120 core vessels, with 254 vessels overall including short-term chartered vessels.

Looking ahead, the company noted dry bulk freight markets strengthened during the first half of 2026 as geopolitical disruption and trade inefficiencies supported vessel utilisation and freight rates.

“While Clarksons Research forecast data suggests that full-year supply growth is expected to exceed demand growth, these disruptions and inefficiencies are expected to continue supporting tonne-mile demand and market conditions," it stated.

“Against this backdrop, the company has secured cargo cover for 54% of its handysize committed vessel days and 60% of its Supramax committed vessel days for the second half of 2026 at US$14,850 and US$17,470 per day respectively, providing some earnings visibility while retaining exposure to the spot market in the remainder of the year."