Overview Pacific Basin is a leading player in the Handysize / Supramax segment of the dry bulk shipping market. Having held the stock for fifteen years, I have grown increasingly confident in the management of the company for the following reasons: After an earlier misguided attempt to diversify into other shipping sectors after the dry bulk boom of 2007-2008, the Company is now laser-focused on its strategy to specialise in minor bulks.
Key Takeaways Oversupply risk and subdued commodity demand threaten freight rates, revenues, and margins amid volatile market conditions. Trade policy shifts and stricter environmental standards will raise costs and pressure future earnings.
Flawless balance sheet with proven track record and pays a dividend.
Pacific Basin Shipping Limited, an investment holding company, engages in the provision of dry bulk shipping services in Hong Kong and internationally. The company offers shipping services that mainly carry major and minor bulks, including grains, ores, logs/forest products, bauxite, sugar, concentrates, cement and clinkers, coal/coke, fertilizers, alumina, steel, pet-coke, salt, sand and gypsum, and scrap. It also offers shipping consulting, crewing, secretarial, ocean shipping, ship agency, and operation and management services. In addition, the company is involved in the vessel owning and chartering, and convertible bonds issuing activities. It has a fleet of 277 owned and chartered vessels, including 127 Handysize, 1 Capesize, and 149 Supramax/Ultramax vessels. The company was founded in 1987 and is headquartered in Wong Chuk Hang, Hong Kong.
