Pacific Basin Shipping has reintroduced a dividend for the first time in four years after springing back to profit in the first half of 2018.
Hong Kong-listed Pacific Basin will pay out 2.5 Hong Kong cents per share on the back of a profit of $30.8m in the opening six months of this year.
It marks the first payout to shareholders since 2014 and follows the overturning of a $12m loss in the first half of 2017.
The dividend fits a policy of paying out at least 50% of net profit before asset sales for the full year.
“The minor bulk freight market strengthened again in the first half of 2018 which, combined with our high laden utilisation, continued outperformance and competitive cost structure, enabled us to record much improved positive results compared to the same period last year,” said chief executive Mats Berglund.
Pacific Basin, which has taken its owned fleet to 111 ships this year, says its handysize and supramax bulkers outperformed the market by 19% and 11% respectively in the first half.
The company bought four ships in May in a $88.5m deal having added a single bulker the previous month, but had $317m in cash at the half way point of 2018.
“We see upside in secondhand vessel values and will continue to look at good quality secondhand ship acquisition opportunities as prices are still historically attractive, resulting in reasonable break-even levels and shorter payback times,” Berglund said.
“Our healthy cash and net gearing positions enhance our ability to take advantage of opportunities to grow our business and attract cargo as a strong partner.
“Our robust customer-focused business model, global office network, experienced people, larger owned fleet and competitive cost structure position us well to benefit from the recovering market.”
While trade war between the US and China continues to escalate, Pacific Basin says it has limited exposure to relevant routes.
“This uncertainty weakens sentiment which could undermine trade, and a global trade war could impact global GDP and dry bulk demand," Berglund said.
“However, we continue to believe that any negative impact these protectionist actions have on the dry bulk trade will be largely outweighed by positive dry bulk supply fundamentals and continued global dry bulk trade growth overall.”
At the same time Pacific Basin has appointed chief financial officer Peter Schulz as an executive director.
