Pangaea Logistics has scrapped its shareholder dividend for the first quarter “as a precautionary measure” related to the coronavirus outbreak.
The Rhode Island-based bulker and logistics player said in reporting fourth-quarter 2019 earnings that the action came “due to the unprecedented and uncertain conditions caused by the ... global pandemic, and the potential impact responses might have on the company’s short-term interest and cash flow”.
Pangaea’s board will continue to consider a quarterly dividend “as negative impacts of the global pandemic on the company’s operations are more clearly assessed and risks are addressed or dissipate”.
Separately, Pangaea’s board authorised a $3m shares buyback programme — the sort of pivot that companies often execute when shares are trading well below net asset value (NAV).
Pangaea paid $8.1m in dividends to common shareholders in 2019.
The Ed Coll-led owner reported a net loss of $4.4m for the fourth quarter of 2019, but this was dampened by impairments and vessel-sale losses of $9.3m. This compared to a net loss of $600,000 in the corresponding period of 2018.
On an adjusted basis, Pangaea reported net income of $4.4m, or $0.10 cents per share, compared to $3.7m, or $0.09, for the last quarter of 2018.
Pangaea was able to achieve a 40% premium over market indexes for the quarter and 41% on the full year, helping it turn a profit of $11.7m — $0.27 per share — for the full 2019. This compared to $22.5m — $0.42 per share — for all of 2018.
