Page 1

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement , make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement . P Pacific Basin Shipping Limited ( incorporated in Bermuda with limited liability ) ( Stock Code : 2343 ) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021 The Board of Directors ( the " Board " ) of Pacific Basin Shipping Limited ( " Pacific Basin " or the " Company " ) is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries ( collectively the " Group " ) for the six months ended 30 June 2021 as follows : BUSINESS HIGHLIGHTS Group ■ We recorded an underlying profit of US $ 150.4 million in the first half of 2021 , representing our best half - year results in 13 years on the back of strongly increasing dry bulk freight rates throughout the period ■ The Board has declared an interim dividend of HK14 cents ■ Our core business made Handysize and Supramax net daily TCE earnings of US $ 14,380 and US $ 18,260 ■ Our operating activity generated a strong daily margin of US $ 1,320 net over 9,080 operating activity days ■ Our total available liquidity increased to US $ 417.1m ( cash and committed facilities ) with net gearing of 31 % Fleet ■ We have taken delivery of 2 modern second - hand Handysize and 5 Ultramax ships to date ( with 1 more delivering in Q4 ) , and we sold 4 older , small Handysize vessels ■ We own 119 ships and we currently have around 270 ships on the water overall , which is the biggest fleet we have ever controlled ■ We have grown the Supramax proportion of our fleet and now benefit from the larger earnings upside that these larger ships enjoy in strong markets ■ We have covered 76 % and 81 % of our Handysize and Supramax vessel days for the third quarter of 2021 at US $ 20,800 and US $ 31,310 per day net respectively Outlook ■ In June we registered our strongest monthly underlying results ever . We have covered substantially all of July and August at even higher daily TCE rates , and we expect continued healthy demand and reducing net fleet growth to result in higher average dry bulk freight earnings in the second half of 2021 compared to the first half US $ Million Revenue EBITDA # Six Months Ended 30 June 2021 2020 1,142.0 681.5 244.6 79.2 150.4 ( 26.6 ) Profit / ( loss ) attributable to shareholders Basic earnings per share ( HK cents ) Dividend per share ( HK cents ) 160.1 ( 222.4 ) 26.4 ( 37.1 ) 14.0 Underlying profit / ( loss ) # EBITDA ( earnings before interest , tax , depreciation and amortisation ) is gross profit less indirect general and administrative overheads , excluding : depreciation and amortisation ; exchange differences ; share - based compensation ; closed - out gains on fuel price hedges and unrealised derivative income and expenses . Our Fleet as at 30 June 2021 2 Vessels in Operation¹ Long - term Owned 2 Chartered Subtotal Short - term Chartered 3 Total Substantially fixed costs Costs fluctuate with market Handysize 77 12 89 34 123 Supramax 41 4 45 95 140 ( incl . Ultramax ) I Post - Panamax 1 0 1 0 1 Total 119 16 135 129 264 Including 1 purchased Handysize vessel that delivered to us in July and 1 purchased Ultramax vessel with estimated delivery in fourth quarter 2021 3 Average number of short - term and index - linked vessels operated in June 2021 ■ In the short term , we expect market tightness to continue with the imminent start to the northern hemisphere grain export season that typically drives rates in the third quarter . Dry bulk demand for the rest of the year is expected to continue to be broad based and benefit from economic stimulus and infrastructure projects , although with some uncertainty over the path of the pandemic and the longevity of policy support ■ We are optimistic about the longer term outlook for the dry bulk market . The orderbook is at an all - time low and we believe supply growth can remain at moderate levels because decarbonisation rules will result in shorter expected economic lives for newbuildings with conventional fuel oil engines , hence discouraging new ship ordering , and IMO rules will force slower speeds from 2023 ■ Our large core fleet with an enlarged Supramax proportion , our customer - focused business model , our efficient cost structure and our strong team equip us to provide customers with sector - leading service and performance and position us well to take advantage of the strong market 1