Hong Kong dry bulk goliath Pacific Basin Shipping enjoyed its best first-half in 13 years and has resumed a dividend payout amid even better fixtures in July and August.
Pacific Basin reported an underlying profit of $150m and earnings per share of HKD 26.4 ($0.034), allowing it to pay a HKD 14 cents per share dividend.
Included in the result was a June profit of $53m, its highest monthly result ever. Pacific Basin said fixtures for July and August have even stronger time charter equivalents than June, with costs essentially stable.
Revenue of more than $1.1bn nearly doubled the $681m achieved in the first half of 2020, when Pacific Basin fell to a loss of HKD 37 cents per share.
Pacific Basin operates 119 bulkers in the supramax, post-panamax and handysize categories.
"It is primarily strong, broad-based and geographically diverse demand for our two most important commodity groups — minor bulks and grain — that is driving up freight rates in our markets," said Pacific Basin in its interim earnings statement.
"Minor bulk demand normally tracks growth in [gross domestic product], hence, with a 6% world GDP growth forecast and continued stimulus in many countries, the forecast for minor bulk demand in the rest of the year is positive.
"This is the strong market that our teams both ashore and on board have worked so hard to set ourselves up for, and it is very satisfying to now see the returns coming through."
Available liquidity increased to $417m to 30 June, and net borrowings of $540m were 31% of the net book value of owned vessels, the owner said.
