Pacific Basin Shipping has reported a significant drop in profitability for the first half of 2025, with both revenue and net profit falling by more than half compared to the same period last year.
The Hong Kong-based dry bulk shipping company attributed the weaker performance to challenging market conditions in the first quarter, which saw a downturn in demand for major commodities before a recovery in the second quarter.
For the six months ending June 30, the company generated revenues of $1.02 billion, a substantial decrease from the $1.28 billion reported in the first half of 2024. This led to a profit attributable to shareholders of $25.6 million, less than half of the $57.6 million earned in the corresponding period last year. The company's cost of services, a primary outgoing, also decreased to $989.5 million from $1.22 billion.
Chief Executive Officer Martin Fruergaard commented on the market dynamics, stating, "Dry bulk shipping markets were weaker in the first half of 2025 than in the same period in the last four years, due to an unusual confluence of commodity-specific factors affecting the three major dry bulk commodities in the first quarter, before recovering in the second quarter."
Despite the challenging period, the company's daily time-charter equivalent (TCE) earnings for its Handysize and supramax vessels outperformed their respective market indices by 27 per cent and 40 per cent.
Looking ahead, Fruergaard expressed a positive view: "Despite weaker markets in the first half of 2025, we remain optimistic about the future of the dry bulk sector. In the near term, the market is firming and, while downside risk remains, we do not foresee any significant market decline." The company’s board declared an interim dividend of HKD0.016 per share.