Earnings release
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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 2026 The Board of Directors ( the " Board " ) of Pacific Basin Shipping Limited ( " Pacific Basin " or " PB " 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 2026 as follows : BUSINESS HIGHLIGHTS Outperforming in Stronger Market Conditions ■■ Pacific Basin delivered a robust financial performance amid heightened geopolitical disruption , with earnings strengthening progressively through the first half of 2026 and our vessels significantly outperforming their respective market indices ■ In the first half of 2026 , we generated an underlying profit of US $ 94.9 million , a net profit of US $ 105.0 million and EBITDA of US $ 197.8 million , equating to an annualised return on equity of 11 % with basic EPS of HK16.1 cents ■ We maintain a strong cash position with net cash of US $ 157.2 million and available committed liquidity of US $ 673.6 million ■ We repurchased about 9.5 million shares in the first half of 2026 for approximately US $ 3.5 million under our share buyback programme of up to US $ 40 million for 2026 , and will continue to assess further buyback opportunities ■ The Board has declared an interim dividend of HK15.5 cents per share , which represents approximately 100 % of our net profit for the period , excluding vessel disposal gains Business Performance ■ In the first half of 2026 , our core business generated Handysize and Supramax daily time - charter equivalent ( TCE ) earnings of US $ 14,150 and US $ 16,550 respectively , and a total contribution of US $ 123.7 million before overheads ■ We outperformed the Handysize ( BHSI 38k dwt tonnage adjusted ) and Supramax ( BSI 58k dwt ) indices by US $ 1,950 per day and US $ 2,370 per day respectively , demonstrating the value of our integrated platform and extending our long record of outperforming freight market benchmarks ■ Our operating activity achieved a daily margin of US $ 1,060 over 12,650 operating days , generating a contribution of US $ 13.4 million before overheads Our cash break - even remained below US $ 6,800 per day - over 40 % below average market index rates in the first half - and our costs remain well controlled and competitive in our sector ■ As at 30 June 2026 , the estimated market value of our owned fleet was about US $ 2,070.6 million , which was significantly above its net book value of US $ 1,557.0 million Our Fleet US $ Million Revenue EBITDA # Underlying Profit Profit Attributable to Shareholders Basic Earnings per Share ( HK cents ) Interim Dividend per Share ( HK cents ) # 5 Six Months Ended 30 June 2026 2025 1,105.5 1,018.7 197.8 121.5 94.9 21.9 105.0 25.6 16.1 3.9 15.5 1.6 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 and unrealised derivative income and expenses Our Fleet As at 30 June 2026 Vessels in Operation Long - term Short - term Owned Chartered Chartered ' Total Total Capacity Average Age ( Million dwt ) Owned Owned Handysize 58 9 48 115 2.0 13 Supramax / 48 4 86 138 2.9 13 Ultramax² Capesize³ 1 1 0.1 15 Total 1074 135 134 254 5.0 13 2 Average number of short - term and index - linked vessels operated in June 2026 Supramax vessels in excess of 60,000 dwt are generally referred to as Ultramax 3 The Company owns one Capesize vessel which is chartered out on a bareboat charter Table excludes 6 Handysize and 4 Ultramax newbuildings on order and excludes purchase options we hold on 12 existing and 3 coming long - term chartered vessels Excludes 2 Handysize and 1 Supramax to be delivered into our long - term chartered fleet ■ As at 30 June 2026 , we owned 106 Handysize , Supramax and Ultramax vessels and we had around 254 owned and chartered vessels on the water overall ■ In the year to date , we completed the sale of one 22 - year old Supramax vessel and committed to sell another with completion in August 2026 ■ We continued to expand and modernise our core fleet with the delivery of a previously chartered Ultramax vessel , the exercise of purchase options on two Handysize vessels , and the addition of a long - term chartered Ultramax newbuilding with charter - extension and purchase options ■ We adjusted and expanded our newbuilding programme by replacing four dual - fuel Ultramax orders with four fuel - efficient conventional - fuel Ultramax and securing an option for two dual - fuel vessels , reducing near - term capital expenditure while preserving fleet efficiency and fuel flexibility ; and we ordered two additional Handysize newbuildings Market Outlook and Emerging Dynamics ■ Clarksons Research forecast data points to dry bulk supply growth outpacing demand for the full year , although ongoing geopolitical disruptions and trade inefficiencies are expected to support tonne - miles , vessel utilisation and freight rates ■■ We expect volatility to persist , with geopolitical , macroeconomic , regulatory and weather - related developments creating both risks and opportunities ■ We remain confident in the long - term outlook for geared minor bulk segments , supported by urbanisation , infrastructure development , the energy transition and growing food demand ■ Minor bulk fundamentals are expected to become more balanced over time , as the ageing global fleet and constrained newbuilding supply support disciplined fleet growth and attractive opportunities for well - capitalised owners 1
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2 CHIEF EXECUTIVE’S REVIEW Geopolitical Disruption Tightened Market Conditions Dry bulk freight markets strengthened in the year to date, with geopolitical disruption and trade inefficiencies – particularly relating to the conflict in the Arabian Gulf – tightening market conditions and lifting freight rates to their highest levels since the second half of 2022. Navigation through the Strait of Hormuz was severely restricted for much of the period, driving up global bunker fuel prices and trapping up to 2% of the sub-Capesize fleet inside the region. The resulting disruption to Arabian Gulf exports of fertilisers, cement, clinker and aggregates has led to these commodities being sourced from alternative and typically more distant origins, increasing tonne-mile demand. The safety and wellbeing of our people is our top priority. Fortunately, none of our owned vessels or seafarers have been directly affected by developments in the Gulf, and our Dubai-based office colleagues are safe. We had only one chartered vessel in the region and worked closely with its owner to support appropriate safety measures. Following the US-Iran ceasefire agreement in mid-June and the subsequent intermittent resumption of commercial vessel traffic through the Strait of Hormuz, that vessel has now safely departed the Arabian Gulf. We have not experienced any material adverse impact on our cost base because of these developments. Our bunker procurement and risk management framework mitigates fuel price volatility, and our predominantly spot-exposed model enables higher fuel and insurance costs to be absorbed through market freight rates. 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 4,000 Jan Apr 2025 2026 Jul Oct Jan Apr Jul BSI $18,120 BHSI $14,480 US$/day net Significant Rate Increase Since Early 2025 Outperforming in Stronger Market Conditions Against this backdrop, Pacific Basin delivered a robust financial performance, with earnings strengthening progressively through the first half of 2026 and our vessels significantly outperforming their respective market indices. We generated an underlying profit of US$94.9 million, a net profit of US$105.0 million and EBITDA of US$197.8 million in the period. This equates to an annualised return on equity of 11% and basic EPS of HK16.1 cents, representing a significant improvement year on year. Our Core Business generated US$123.7 million before overheads in the first half of 2026, up 144% compared to the first half of 2025. Our Handysize and Supramax time-charter equivalent (“TCE”) earnings of US$14,150 and US$16,550 per day exceeded the market indices by US$1,950 and US$2,370 per day respectively. This outperformance demonstrates the value of our integrated platform and extends our long record of outperforming freight market benchmarks. By combining scarce backhaul cargoes with more available fronthaul cargoes, we optimise trading patterns, minimise ballast legs and maximise utilisation, while leveraging higher-value parcelling, deck cargo and other breakbulk activity to further improve utilisation, TCE earnings and returns. Complementing our core business, our Operating Activity contributed US$13.4 million before overheads, which is up 33% compared to the first half of 2025 and corresponds to a margin of US$1,060 per day. This activity consistently provides a meaningful additional contribution to group earnings by enabling us to serve our customers even when our core vessels are unavailable. Our vessel earnings outperformance is complemented by strong cost discipline. Our vessel operating expenses of US$4,790 per day, overheads of US$970 per day and financing costs of US$110 per day remain well controlled, supporting resilient margins across the cycle. Cost competitiveness is a key advantage at Pacific Basin, underpinned by our scale, cost discipline and a continuous focus on efficiency. Strong Balance Sheet and Shareholder Returns We manage capital to balance shareholder returns, fleet renewal, growth opportunities and financial flexibility through the market cycle. The Company’s financial position remains robust with net cash of US$157.2 million and available committed liquidity of US$673.6 million as at 30 June 2026. Strong operating cash flow of US$143.5 million in the period more than covered capital expenditure of US$57.3 million, supporting both reinvestment and shareholder distributions. In view of our strong cash generation and balance sheet, the Board has declared an interim dividend of HK15.5 cents per share, representing approximately 100% of net profit for the period, excluding vessel disposal gains, and a dividend yield of approximately 5%. This reflects our confidence in the strength of the business while retaining flexibility to respond to changing market conditions and opportunities. Under our revised dividend policy announced in March 2026, the Company intends to pay dividends of 50% of annual net profit, excluding vessel disposal gains, increasing to up to 100% of net profit (also excluding vessel disposal gains) when the Company is in a net cash position at year end. In addition, we repurchased about 9.5 million shares in the first half of 2026 for approximately US$3.5 million under our share buyback programme of up to US$40 million for 2026. Share buybacks can represent an attractive use of capital when our shares trade at a discount to the fair market value of our assets. We will continue to assess further buyback opportunities.
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3 Growth for Long-term Returns Our approach to growth remains focused on flexibility, optionality, disciplined capital allocation and long-term shareholder returns, particularly in the current high asset price environment and evolving regulatory landscape. Our long-standing relationships with shipbuilders, vessel owners and other key suppliers, together with our focus on optionality, are important strategic strengths. They provide access to growth opportunities and enhance our ability to adapt to changing market conditions. These options provide significant flexibility to grow and renew our fleet selectively through the cycle without committing substantial capital today. We continued to execute this approach in the year to date through selective fleet renewal and growth transactions. As announced with our First Quarter Trading Update on 16 April 2026, we took delivery of a previously long-term chartered Japanese-built Ultramax in January after exercising a purchase option in December 2025. We subsequently declared purchase options on two chartered Handysize vessels expected to join our fleet by the year end. We also added one 64,000 dwt long-term chartered Ultramax newbuilding to our core fleet with delivery in 2027, which comes with both charter-extension and purchase options at fixed rates and prices. We reshaped and expanded our newbuilding programme by replacing four dual-fuel Ultramax orders with four fuel-efficient conventionally fuelled Ultramax newbuildings, while also securing a new option to acquire two dual-fuel vessels. These adjustments reduce near-term capital expenditure while preserving exposure to modern, efficient vessels and future fuel flexibility amid uncertainty around global decarbonisation regulation. We also increased our orders for open-hatch, logs-fitted 40,000 dwt Handysize newbuildings to be built by JNS from four to six vessels delivering in 2028, strengthening our pipeline of modern, efficient tonnage. How We Outperform and Create Value Our outperformance is enabled by our integrated platform built over many years, combining commercial and operational excellence with effective capital allocation. Commercial Excellence – Securing more and better employment for our fleet ■ Our global network and close customer relationships provide access to cargo opportunities and deep market insight ■ Our ability to read freight and asset cycles helps us optimise fleet deployment and make informed commercial decisions as markets evolve ■ A large, homogeneous and interchangeable fleet enables efficient matching of ships and cargoes in triangulated trading patterns, driving utilisation, voyage economics and TCE earnings ■ Our established expertise in higher-value, operationally intensive niche geared breakbulk trades such as logs, parcelling and deck cargoes enhances our service offering and generates additional earnings opportunities beyond traditional dry bulk transportation ■ Our Operating Activity enhances service and earnings by supporting customers even when our core vessels are unavailable Operational Excellence – Capturing the full value of every voyage ■ Comprehensive in-house capabilities, digitalisation and AI-enabled optimisation support efficient voyage execution, fuel efficiency and operational performance ■ Our class-leading in-house fleet management function underpins operational excellence through high standards of safety, regulatory compliance, service reliability and fleet performance ■ Our cost discipline and strong in-house capabilities help maintain competitive vessel operating costs and overheads, while supporting safe, reliable and efficient operations Capital Allocation – Managing capital for growth, resilience and shareholder returns ■ We maintain a disciplined approach to cash, debt and capital allocation, balancing fleet investment, financial strength and returns to shareholders while preserving resilience and flexibility through shipping cycles ■ We take a long-term, counter-cyclical approach to fleet investment, renewal and disposal, supported by strong relationships with shipbuilders, vessel owners and other strategic counterparties ■ Our flexible approach to fleet ownership and chartering enables us to shift between owned vessels, long-term charters and short-term charters as market conditions evolve, preserving optionality and supporting future growth opportunities ■ The fleet we operate today has been assembled through many years of disciplined investment, creating substantial earnings capacity and underlying asset value Our disciplined cost structure, flexible commercial strategy and long-term investment approach enable us to capture upside in stronger markets, limit downside in weaker conditions and sustain our outperformance over time, while continuing to invest and grow through the cycle. While dry bulk shipping remains a largely commoditised service, our integrated platform differentiates us and enables us to consistently generate a TCE earnings premium and strong returns over time. Overall, our orderbook of ten newbuilding vessels comprises six Handysize and four Ultramax vessels with expected delivery between 2028 and the first half of 2029. We hold an option on two dual-fuel Ultramax newbuildings. We also hold purchase options, declarable between 2026 and 2031, on 12 of our 13 long-term chartered vessels (of which we have declared two options so far this year) and on all three long-term chartered vessels still to deliver into our fleet. In the year to date, we have completed the sale of one 22-year old Supramax vessel and we have committed to sell another with completion in August 2026. As at 30 June 2026, our fleet on the water comprises 120 core vessels, with 254 vessels overall including short-term chartered vessels.
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4 We will continue to pursue value-accretive opportunities to renew and expand our fleet and business, including selective modern second-hand acquisitions, newbuilding orders, long-term charters, and M&A where pricing and fit are compelling. 6 5 4 3 2 1 0 3.5 4.1 4.3 4.7 4.8 5.2 5.1 5.3 5.2 5.4 5.5* 5.0 5.0 0.4 0.5 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2024 Dec 2025 Jun 2026 Million dwt Owned Fleet Capacity Growth Capacity of committed newbuildings Capacity of owned vessels * Including 10 committed newbuildings scheduled to deliver by mid-2029 Board Developments As announced on 16 February 2026, we strengthened our Board with the appointment of two new Non-executive Directors, Dr. Harindarpal S. Banga and Mr. Angad Banga, further enhancing its depth of relevant industry experience, diversity of perspectives and strategic oversight. In March, we revised the composition of certain Board committees to ensure an appropriate balance of skills and effective governance aligned with the Company’s priorities. The Board continues to provide robust oversight of our strategy, capital allocation and risk management, supporting disciplined execution and long-term value creation. Leadership in Safety and Sustainability We continued to make progress across our key ESG priorities in the first half of 2026. The safety, security and wellbeing of our people remain our top priority. Our lost-time injury frequency (LTIF) improved to 0.32 in the period, which is low by segment standards and among our best LTIF results ever. While encouraged by this progress, our objective remains to eliminate injuries entirely. A serious near-miss involving a crew member on one of our vessels highlights the importance of maintaining constant vigilance on board. In response, we are reinforcing our “Stop Work Authority” programme across the fleet. We also continued to improve our environmental performance. Our owned fleet’s carbon intensity (EEOI) improved by 5% compared with full-year 2025 and is now 45% below our 2008 baseline, and we remain on track to halve our carbon intensity by 2030. Compliance with progressively more demanding EEOI requirements is expected to be achieved through continuous fleet renewal, biofuel use, and ongoing investments in energy saving through technical and operational measures. However, the deeper decarbonisation that our industry has targeted for around 2050 will likely depend on the successful delivery by IMO of a global framework that incentivises the transition to green fuels and vessels at scale. Navigating Decarbonisation and Regulatory Uncertainty The maritime industry continues to face uncertainty over the timing and structure of a global decarbonisation framework. In October 2025, the IMO failed to adopt the previously agreed Net-Zero Framework, and at MEPC 84 in May 2026, member states remained divided on the economic element of the proposed framework, which many consider essential to adequately incentivise the transition to expensive green fuels and ships. In this environment, we are maintaining a pragmatic and flexible approach – focusing on energy efficiency and preserving flexibility across future fuel pathways. This will enable us to adapt to evolving regulation while avoiding premature capital commitments in an uncertain landscape. Regional and global regulations will continue to evolve, reinforcing the importance of efficiency and operational discipline. Our ongoing investments in digitalisation and fuel optimisation not only reduce costs but also strengthen our compliance readiness. While we pared back our dual-fuel newbuilding programme in response to last October’s regulatory postponement and renewed uncertainty, our commitment to sustainability and efficiency remains unchanged. Combined with our retained optionality on dual-fuel newbuildings, we remain well positioned to respond to future developments in maritime decarbonisation. Since modern vessel values increased sharply in 2021, we have exercised even greater capital allocation discipline, pursuing vessel acquisitions only where we saw compelling value
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5 Market Outlook and Emerging Dynamics In the near term, Clarksons Research forecast data points to dry bulk supply growth outpacing demand for the full year. However, even if the conflict in the Arabian Gulf subsides and markets in the region gradually reopen, ongoing geopolitical disruption and trade inefficiencies are expected to continue constraining vessel availability and increasing tonne-miles, supporting dry bulk freight rates. While elevated interest rates and inflationary pressures may still weigh on global growth, current dry bulk market conditions remain supportive. We expect market volatility to remain a defining feature of the sector, with geopolitical, macroeconomic, regulatory and weather-related developments remaining difficult to predict and creating both risks and opportunities. Looking further ahead, we remain confident in the outlook for the geared minor bulk segments. Demand for minor bulks and grains is expected to be supported by long-term trends such as urbanisation, infrastructure development, the energy transition and growing food demand, particularly in emerging economies. On the supply side, minor bulk fundamentals are expected to become more balanced over time. The ageing global fleet profile and increasing environmental requirements are likely to drive higher scrapping over time, while high asset prices, limited near-term available shipyard capacity and regulatory uncertainty temper newbuild ordering, supporting more disciplined fleet growth in the segment. The combination of an ageing fleet and constrained fleet growth could create attractive opportunities for well-capitalised owners as market conditions evolve. Taken together, these dynamics support our constructive long-term outlook for the geared minor bulk segments. We will continue to monitor developments closely and adapt as conditions evolve. We are Well Positioned Within this context, we continue to balance exposure to favourable market conditions with prudent risk management. We have covered 54% and 60% of our Handysize and Supramax committed vessel days for the second half of 2026 at US$14,850 and US$17,470 per day respectively, providing some earnings visibility while retaining exposure to stronger markets. Our strong balance sheet, competitive cost structure and integrated operating platform provide a solid foundation for performance through the cycle. In the current volatile environment, we are managing our operations and contract cover dynamically, leveraging our triangulated trading model and operating activity to optimise performance. These strengths position us well to navigate uncertainty and capture opportunities as they arise. Our strategic priorities for 2026 remain focused on growth, efficiency and long-term returns, including: ■ Growing and renewing our fleet through selective second-hand acquisitions, newbuildings and long-term charters, prioritising opportunities that enhance our future growth optionality ■ Transforming our fuel strategy, improving access to conventional and alternative fuels while capturing value from fuel optimisation, efficiency and carbon markets ■ Advancing voyage optimisation, leveraging digital and AI capabilities , as well as our expertise in both bulk and breakbulk activity to drive performance and capture additional value ■ Refining our cost structure and operational efficiency, and strengthening our cost competitiveness through productivity initiatives and strong in-house capabilities ■ Enhancing performance and shareholder returns through the cycle, supported by disciplined performance management and capital allocation We continue to monitor developments in trade policy and remain agile in responding to changes in trade flows, regulation and macroeconomic conditions to ensure our fleet continues to operate efficiently and competitively around the world. Overall, Pacific Basin is well positioned to serve our global cargo customers reliably, safely and competitively, while navigating market volatility and continuing to outperform. Acknowledging the Contribution of Our People and Partners Our performance reflects the strength of our partnerships and the professionalism and dedication of our colleagues at sea and ashore. I sincerely thank my colleagues as well as our cargo customers, suppliers, shareholders and other stakeholders for their continued support. Martin Fruergaard Chief Executive Officer Hong Kong, 6 August 2026
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6 MARKET REVIEW Freight Markets Strengthened with Arabian Gulf Conflict Adding to Disruption and Inefficiencies * Excludes 5% commission Source: Baltic Exchange (BHSI 38k dwt (tonnage adjusted) and BSI 58k dwt), data as at 27 July 2026 US$12,200 net BHSI 38K (tonnage adjusted) Handysize 1H26 avg. market spot rate US$14,180 net BSI 58K Supramax 1H26 avg. market spot rate Handysize Market Spot Rates in 2024-2026 Supramax Market Spot Rates in 2024-2026 62% YOY US$/day net* US$/day net* The defining market development of the first half of 2026 was undoubtedly the conflict in the Arabian Gulf. Before the conflict broke out, however, dry bulk demand had been accelerating, supported by the steady appreciation of the Chinese Renminbi since April 2025’s “Liberation Day”, the continued expansion and upgrading of China’s vast manufacturing industry, and renewed stockpiling by Chinese importers. The outbreak of conflict temporarily disrupted this momentum as sharply higher and highly volatile bunker prices prompted a period of market caution from late-February to mid-April. In our Handysize and Supramax segments, the added purchasing power from the strengthening Renminbi helped drive growth in China’s grain imports. In the larger vessel segments, it also supported increased imports of iron ore and bauxite by Chinese steel and aluminium producers. Dry bulk shipping was not as disrupted by the Arabian Gulf Conflict as tankers or containers, but the conflict nevertheless created meaningful new inefficiencies. The closure of the Strait of Hormuz trapped about 2% of the sub-Capesize fleet in the Inner Arabian Gulf for much of the first half of 2026, while high bunker prices reduced sailing speeds across the available fleet. Intermittent bunker shortages led to long queues and suboptimal diversions. Vessel values increased through first half of 2026 US$38.5m 24% Second-hand asset vessel values rose sharply in the first half of 2026, supported by both a rising earnings environment and a rising newbuilding market. Clarksons Research currently values a benchmark five-year-old Ultramax vessel at US$38.5 million, up by 24% compared to December 2025. Benchmark five-year old second-hand Ultramax values YOY Source: Clarksons Research, data as at July 2026 40% YOY 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Jan Feb M ar Apr M ay Jun Jul Aug Sep O ct N ov Dec 2026 (FFA)2024 2025 2026 $14,480 27 July 2026 0 5,000 10,000 15,000 20,000 25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 2025 2026 2026 (FFA) $18,120 27 July 2026
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7 According to Oceanbolt data, global seaborne dry bulk trade volumes were broadly unchanged year on year in the first half of 2026. However, longer voyage distances drove an approximately 5% increase in tonne-mile demand. Growth was underpinned by strong grain, iron ore and bauxite shipments from the Atlantic basin to consumers in Asia. At the same time, transits through the Suez Canal remained high-risk and costly to insure, while the closure of the Strait of Hormuz increased Asia’s reliance on US oil and gas imports via the Panama Canal, crowding out some dry bulk vessel transits. As a result, much of this cross-basin trade was rerouted around either the Cape of Good Hope or Cape Horn, further extending voyage distances. Minor bulk volumes (excluding bauxite, which we now classify as a major bulk commodity) declined by approximately 6% during the first half, reflecting the severe disruption of trade to and from the Arabian Gulf caused by the conflict. However, the impact on tonne- mile demand was more limited, with a decline of around 1%. Major bulk tonne-mile demand (including bauxite) was increased mainly driven by: ■ bauxite tonne-miles growing 17%, as expanding output from Guinea benefited from newly developed transport infrastructure originally built to support planned iron ore projects that have yet to reach full production; ■ grain tonne-miles rising 16%, as favourable harvests in most major exporting regions – apart from Russia and Ukraine – supported increased exports, while Chinese importers continued to build stockpiles; ■ iron ore tonne-miles increasing 6%, as Brazilian and Australian mining majors recovered strongly from the weather-related disruptions that affected production and exports during the same period last year; and ■ coal tonne-miles returning to growth, up 1%, as the closure of the Strait of Hormuz constrained LNG supplies to Asia, drove up gas prices and encouraged dual-fuel power generators to switch to lower-cost coal. Selected Minor Bulks* -6% Grain 14% Iron Ore 3% Coal -2% Changes in Global Dry Bulk Demand YOY change in billion tonne-milesYOY Change 1H21 1H22 1H23 1H261H24 1H25 1H 2026 Global Cargo Loading Volumes # * Minerals, non-coal energy, metals and minor ores, fertiliser, sugar and non-grain agricultural products, cement and clinker, logs and forest products, steel and scrap Source: Oceanbolt, data as at July 2026, subject to revision Minor bulk demand is broad based and diverse both geographically and in terms of commodities and customers, and normally tracks growth in GDP # Cargo volume is different to tonne- mile demand. Tonne-miles is the primary measure of transport demand. A tonne-mile is defined as one tonne of freight shipped one mile, and therefore reflects both the volume shipped (tonnes) and distance shipped (miles) DEMAND Dry Bulk Shipping Demand Accelerates Source: Oceanbolt, data as at July 2026, subject to revision 0 200 400 600 800 1,000 1,200 1,400 -1400 -1200 -1000 -800 -600 -400 -200 0 +2% +5% +17% +16% +1% +6% -1% +10% +1% +4% -3% Iron Ore Coal Grains Bauxite Minor Bulk SUPPLY Net Fleet Growth is Slightly Up while Newbuilding Activity Shifts Towards Larger Vessels Global dry bulk net fleet growth increased to 3.9% in the first half of 2026. In the Handysize and Supramax segments in which we specialise, combined net fleet growth remained steady at 4.0%. Total dry bulk newbuilding deliveries increased by 20% year on year, although growth was heavily concentrated in the larger vessel classes. Capesize and Panamax deliveries rose by 41%, while Handysize and Supramax deliveries increased by just 1% despite higher deliveries than scheduled for the period. Total dry bulk scrapping declined by 15% year on year. In contrast to newbuilding deliveries, however, demolition activity was concentrated in the geared fleet. Handysize and Supramax scrapping increased by 43%, while Capesize and Panamax scrapping declined by a similar proportion. Clarksons Research forecasts total dry bulk net fleet growth of 3.9% in 2026. The combined Handysize and Supramax fleet is expected to expand by 4.2%, reflecting deliveries from orders placed during the strong market conditions of late 2023 and early 2024. Looking further ahead, the ageing global dry bulk fleet – particularly in the Handysize segment – together with increasingly stringent environmental regulations and widening fuel efficiency differentials, should support higher levels of scrapping. This is especially true for older, less fuel- efficient vessels facing growing economic and regulatory pressures. Handysize/Supramax Supply DevelopmentOverall Dry Bulk Supply Development 4.0% Global Handysize/ Supramax capacity in 1H26 3.9% Overall dry bulk capacity in 1H26 % of Total Fleet 2025 20252026F 2026F2027F 2027F % of Total Fleet 2024 2024 Source: Clarksons Research, data as at July 2026 Scrapping New Deliveries Deliveries Forecast Scrapping Forecast Net Fleet Growth Net fleet growth is expected to ease over the coming years, supported by restrained new vessel ordering and potentially increased scrapping as the fleet ages and decarbonisation regulations tighten. In time, decarbonisation regulations from IMO and EU will likely drive slower vessel speeds which would also reduce effective supply. -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 3.0% 3.0% 3.9% 3.9% -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 4.1% 3.6% 4.1% 4.2%
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8 ORDERBOOK Increased Ordering as Regulations are Postponed The total dry bulk orderbook currently stands at 14% of the existing fleet, up from 12% a year ago. In contrast, the combined Handysize and Supramax orderbook stands at just under 12%, slightly below the level recorded at the same time in 2025. Both remain moderate by historical standards and are significantly lower than orderbook levels in the tanker and containership sectors. Dry bulk newbuilding contracting accelerated sharply during the first half of 2026, rising 83% year on year to 27.9 million dwt. However, activity remained concentrated in the larger vessel segments. Handysize contracting declined by 13%, while Supramax ordering increased by 112%. Capesize and Panamax ordering rose by 136% and 34%, respectively. The recovery in ordering activity was supported by several factors, including: ■ the postponement of the IMO’s global decarbonisation framework, which has supported increased confidence in the longevity of conventional fuel vessels; ■ additional shipyard capacity becoming available, although much of this capacity continues to be absorbed by strong demand from other shipping sectors; ■ the slower-than-expected progress of the SHIPS for America Act through the US Congress, reducing near- term concerns over measures designed to support US shipbuilding and potentially disadvantage foreign-built vessels calling at US ports; and ■ the suspension in late 2025 of US special port fees imposed on China-linked vessels – which account for the majority of dry bulk ships – and reciprocal Chinese port fees on US-linked vessels. Overall Dry Bulk Orderbook % of Total Fleet Scheduled orderbook Scheduled orderbook Actual delivery Actual delivery Remainder of 2026 Remainder of 2026 2027 20272028+ 2028+ Handysize & Supramax Combined Orderbook % of Total Fleet Source: Clarksons Research, data as at July 2026 1H 2026 1H 2026Scheduled orderbook Scheduled orderbook 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 46% Shortfall 2.1% 22.2 m 7.1% 75.4 m 4.6% 49.5 m 2.4% 25.8 m 3.8% 41.0 m 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 21% Increase 2.1% 8.0 m 4.4% 17.2 m 5.0% 19.5 m 2.5% 9.6 m 2.5% 9.7 m Orderbook as % of Existing Fleet Average Age Over 20 Years Old 1H 2026 Scrapping as % of 1 January 2026 Existing Fleet Handysize (10,000–44,999 dwt) 8.7% 13.9 14.6% 0.4% Supramax & Ultramax (45,000–69,999 dwt) 13.2% 12.8 13.1% 0.2% Panamax & Post-Panamax (70,000–99,999 dwt) 14.0% 12.6 15.9% 0.1% Capesize (100,000+ dwt) 15.9% 12.3 7.2% 0.1% Total 13.9% 13.0 11.8% 0.2% Source: Clarksons Research, data as at July 2026
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9 MARKET BALANCE Supply Outpacing Demand, with Inefficiencies Continuing to Support Market Conditions According to Clarksons Research forecast data, dry bulk fleet growth is expected to exceed dry bulk demand growth in 2026. So far this year, however, demand growth has been supported by China’s strengthening Renminbi, continued manufacturing expansion, commodity stockpiling and longer trade routes. Freight market conditions have also been supported by a range of inefficiencies, many of which stem from the conflict in the Arabian Gulf including higher bunker prices, fuel supply disruptions, longer voyage distances and vessel availability constraints resulting from restrictions on transits through the Strait of Hormuz. These disruption-related inefficiencies have reduced effective vessel supply and tightened market conditions despite forecast supply growth exceeding demand growth over the full year. While the eventual unwinding of these inefficiencies could ease market conditions, recent years have demonstrated how difficult such development are to predict. % YOY change 2026F 2027F Net Fleet GrowthTonne-Mile Demand Source: Clarksons Research, data as at July 2026 Total Dry Bulk Demand and Supply 3.1% 3.9% 3.9% 1.4% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% % YOY change 2026F 2027F Minor Bulk Demand and Handysize/ Supramax Supply 3.0% 4.2% 3.6% 2.3% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% POSSIBLE MARKET DRIVERS IN THE MEDIUM TERM OPPORTUNITIES ■ Importers of dry bulk commodities from the US shifting to longer haul sources, (e.g. China buying soyabeans from Brazil) in reaction to US trade policy ■ Monetary and/or fiscal stimulus in China, focused on investment in infrastructure and urban renewal, driving demand for dry bulk commodities ■ Increasing cooperation, investment and trade between China and other developing economies, in reaction to US trade policy, supporting Chinese steel exports and global commodity demand ■ Slower vessel operating speeds due to emissions regulations and increased fuel costs ■ Limited new vessel ordering due to uncertainty over fuel technologies and US protectionism, leading to tighter supply ■ Increased scrapping of older and less fuel-efficient tonnage facing increasingly onerous environmental regulations and expensive maintenance and upgrade THREATS ■ High oil prices negatively impacting global economic growth which reduces demand for dry bulk commodities ■ A rapid recovery in Suez Canal transits would improve fleet productivity and raises effective supply growth ■ Surging long-term bond yields driving higher interest rates and negatively impacting global economic activity and demand in dry bulk commodities ■ Chinese economic growth slower than expected despite stimulus ■ Limited scrapping of vessels due to IMO pushing out decarbonisation targets
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10 OUR PERFORMANCE The Group generated an underlying profit of US$94.9 million in the first half of 2026, representing an increase of 333% compared to the same period last year. This improvement was driven mainly by substantially higher contributions from our core Handysize and Supramax businesses, which more than doubled to US$61.0 million and US$62.7 million respectively, reflecting stronger freight market conditions and effective commercial execution. Our operating activity contribution increased by 33% to US$13.4 million, continuing to enhance our earnings by supporting customers even when our core vessels are unavailable. Operating Performance Six months ended 30 June US$ Million 2026 2025 Change Core business Handysize contribution 61.0 24.2 >+100% Core business Supramax contribution 62.7 26.5 >+100% Operating activity contribution 13.4 10.1 +33% Capesize contribution 0.8 0.8 – Operating performance before overheads 137.9 61.6 >+100% Adjusted total G&A overhead (42.8) (39.4) -9% Taxation and others (0.2) (0.3) +33% Underlying profit 94.9 21.9 >+100% Vessel net book value (incl. assets held for sale) 1,557.0 1,623.1 -4% +/- Note: In our tabulated figures, positive changes represent an improving result and negative changes represent a worsening result OUR CARGO VOLUMES We Transported 36.5 Million Tonnes in 1H 2026 (1H 2025) Cargo volumes were lower year on year due to disrupted trade flows, although the resulting longer voyage distances supported increased tonne-mile demand Our Cargo Loading & Discharging Activity (by Volume) in 1H 2026 (1H 2025) Minerals 12% Salt 5% Sand & Gypsum 5% Soda Ash 2% Energy 17% Coal 12% Petcoke 4% Wood Pellets 1% Metals 16% Ores 10% Concentrates 3% Alumina 2% Others 1% 29% 26% 18% 16% 11% 1H 2025 1H 2026 Agricultural Products & Related 28% Grains & Agricultural Products 16% Fertiliser 11% Sugar 1% Construction Materials 27% Cement & Cement Clinkers 12% Steel & Scrap 10% Logs & Forest Products 5% Our cargo mix comprises mainly non-fossil fuel commodities 13% 32% 12% 17% 9% 11% 6% Australia & New Zealand 14% Asia 31% (China 12%) North America 12% South America 18% Africa 7% Middle East & India 10% Europe 8% 1H 2026 1H 2025
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11 TCE EARNINGS Handysize Supramax TCE EARNINGS US$/dayUS$/day FORWARD CARGO COVERFORWARD CARGO COVER US$/dayUS$/day US$/day SupramaxHandysize Indicative core fleet cash break-even level incl. G&A for 1H26 = US$6,790 * As of late July 2026, indicative TCE rates only as voyages are still in progress Indicative core fleet cash break-even level incl. G&A for 1H26 = US$6,760 * As of late July 2026, indicative TCE rates only as voyages are still in progress CORE BUSINESS 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 11,010 14,150 13,030 11,810 1H 2023 1H 2024 1H 2025 1H 2026 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 16,550 13,690 12,230 13,700 1H 2023 1H 2024 1H 2025 1H 2026 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 14,850* 15,810* 11,68011,940 3Q26 2H263Q25 2H25 87% of days 60% of days 78% of days 54% of days 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 18,680* 17,470* 13,950 13,480 99% of days 74% of days 82% of days 60% of days 3Q26 2H263Q25 2H25 ■ In the first half of 2026, our operating activity contributed US$13.4 million or 10% of our Group’s performance before overheads, generated a margin of US$1,060 per day over 12,650 operating activity days ■ Our operating activity margin increased by 49% while our operating activity days reduced by 11% compared to the first half of last year ■ Our operating activity complements our core business by matching our customers’ spot cargoes with short-term chartered vessels (when our core vessels are unavailable), thereby making a margin and contributing to our Group’s results regardless of whether the market is weak or strong, as evidenced by the graph on the left MARGIN US$1,060 per day OPERATING ACTIVITY Days 0 500 1,000 1,500 2,000 2,500 3,000 3,500 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 1,550 1,060 550 710 1H23 1H24 1H25 1H26 Operating activity days Operating activity margins TCE EARNINGS In the period, our core business generated: ■ Handysize daily earnings of US$14,150 on 11,870 revenue days ■ Our Handysize vessels outperformed the index (BHSI 38k dwt tonnage-adjusted) by US$1,950 or 16% per day ■ Supramax daily earnings of US$16,550 on 9,420 revenue days ■ Our Supramax vessels significantly outperformed the index (BSI 58k dwt) by US$2,370 or 17% per day; scrubbers fitted to our 32 core Supramax vessels contributed US$240 per day to our outperformance FORWARD CARGO COVER ■ We are strategically managing our forward cargo coverage alongside our spot market exposure, anticipating seasonally stronger activity that is expected to bolster freight rates in the third quarter ■ We have covered 78% and 82% of our Handysize and Supramax committed vessel days currently contracted for the third quarter of 2026 at US$15,810 and US$18,680 per day respectively ■ We have covered 54% and 60% of our Handysize and Supramax committed vessel days currently contracted for the second half of 2026 at US$14,850 and US$17,470 per day respectively ■ Our cash break-even remained below US$6,800 per day – over 40% below average market index rates in the first half of 2026 and our costs remain well controlled and competitive in our sector Our Commercial Activities Core Business Our core business is to optimally combine our owned and long-term chartered vessels with multi-shipment contract cargoes and spot cargoes to achieve the highest daily TCE earnings. Our core business also uses short-term chartered vessels to carry contract cargoes to maximise the utilisation and TCE of our owned and long-term chartered vessels. Operating Activity Our operating activity complements our core business by matching our customers’ spot cargoes with short-term chartered vessels, making a margin and contributing to our Group results regardless of whether the market is weak or strong. Through our operating activity, we provide a service to our customers even if our core vessels are unavailable.
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12 CORE BUSINESS VES SEL COSTS Owned Vessel Costs ■ Operating expenses Our average blended Handysize and Supramax daily operating expenses (“Opex”) remained largely stable at US$4,790 (FY2025: US$4,780). Our Opex continued to be maintained at competitive industry levels, reflecting effective cost management, scale benefits and procurement efficiencies. During the period, our owned fleet recorded an average of 0.3 days (FY2025: 1.6 days) of unplanned technical off-hire per vessel, reflecting effective technical management and fleet performance. ■ Depreciation Our average Handysize and Supramax daily depreciation costs increased by 1% and 5% respectively, primarily attributable to higher drydocking costs. ■ Finance costs The 15% decrease in our average blended Handysize and Supramax daily finance costs to US$110 (FY2025: US$130) was mainly due to a decrease in average borrowings. Handysize Blended US$8,850 FY2025 1H2026 US$/day Long-Term Chartered Long-Term Chartered Blended Blended Number of vessels* Avg. dwt* Avg. dwt* * Fleet as at 31 December 2025 and 30 June 2026 58 35,390 58,790 9 39,570 63,640 67 35,960 59,170 Owned Owned Supramax Blended US$9,750 Long-Term Chartered Long-Term Chartered Blended Blended Number of vessels* 48 4 52 US$/day Owned Owned Finance CostOpex Depreciation Long-term Chartered Vessel Costs Long-term chartered vessel costs mainly comprise depreciation of right-of-use assets, interest expenses of lease liabilities and technical management service costs for leases over 12 months. Our Handysize long-term chartered vessel daily costs were substantially unchanged. Our Supramax long-term chartered vessel daily costs increased by 5% to US$15,040, reflecting the combined impact of the exercise of purchase option on a lower-cost chartered vessel and the delivery of a higher-cost chartered vessel during the period. Blended Costs Our daily blended costs for owned and long-term chartered vessels decreased to US$8,850 for Handysize vessels (FY2025: US$8,920) and increased to US$9,750 for Supramax vessels (FY2025: US$9,460). Blended Cash Break-even Costs Our daily blended cash break-even costs represent the blended costs for owned and long-term chartered vessels, excluding depreciation and including G&A overheads. Our Handysize daily cash break-even costs were broadly unchanged at US$6,790 (FY2025: US$6,880). Our Supramax daily blended cash break-even costs increased by 4% to US$6,760 (FY2025: US$6,540), primarily reflecting higher costs associated with long-term chartered vessels. FY2025 1H2026 Daily Vessel Costs 58 35,390 9 39,570 67 35,960 59,030 63,710 59,390 48 4 52 Vessel Days The following table shows an analysis of our vessel days in 1H2026 and FY2025: Handysize Supramax Days FY2025 1H2026 FY2025 1H2026 Core business revenue days 24,660 11,870 18,940 9,420 – Owned revenue days 20,730 10,270 17,590 8,710 – Long-term chartered days 3,930 1,600 1,350 710 Short-term core days 1 8,890 4,120 12,940 5,520 Operating activity days 9,840 4,060 18,010 8,590 Owned off-hire days 650 220 470 130 Total vessel days 44,040 20,270 50,360 23,660 1 Short-term chartered vessels used to support our core business Future Long-term Chartered Vessel Costs The following table shows the average daily charter costs for our long-term chartered vessels during their remaining charter period by year: Handysize Supramax Year Vessel days Average cost (US$) Vessel days Average cost (US$) 2H2026 1,380 13,070 740 14,890 2027 2,650 13,220 1,670 14,660 2028 2,510 12,870 1,830 14,320 2029 1,660 12,720 1,780 13,960 2030+ 1,680 12,890 1,980 13,830 Total 9,880 8,000 General and Administrative (“G&A”) Overheads Our adjusted total G&A overheads increased to US$42.8 million (1H2025: US$39.4 million and FY2025: US$82.0 million). The year-on-year increase was largely due to the absence of foreign exchange gains on Japanese yen deposits held for vessel purchases, which benefited the prior period. Nevertheless, our daily G&A overheads remained competitive at US$970 (FY2025: US$870), comprising US$1,260 and US$750 (FY2025: US$1,180 and US$650) for owned and chartered vessels, respectively. 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 12,650 3,490 4,680 100 8,8508,270 12,490 3,440 4,720 100 8,9208,260 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 9,320 9,750 4,270 4,920 130 15,040 9,100 9,460 4,080 4,850 170 14,310
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13 CASH AND BORROWINGS Key Developments in 1H 2026 ■ During the period we realised US$9.5 million from the sale of one Supramax vessel ■ Due to the strong operating cash flow, we prepaid certain loans during the period, which increased our net cash outflow from borrowings to US$88.9 million ■ We spent US$3.5 million to repurchase shares under our announced share buyback programme ■ We incurred capital expenditure of US$57.3 million, including: (a) US$19.3 million for one Ultramax vessel which delivered into our fleet in January 2026 (b) US$20.1 million for dry dockings and other additions (c) In January and April, we paid an initial US$17.9 million out of a total consideration of US$178.8 million for six contracted conventional-fuel Handysize newbuilding vessels ■ As at 30 June 2026, we had 46 unmortgaged vessels Cash Flow US$ Million Aggregate Borrowings and Undrawn Committed Facilities – US$516.4 million (31 December 2025: US$622.0 million) Borrowings and undrawn committed facilities decreased during the period mainly due to maturity of a revolving credit facility, loan repayments and prepayment, and scheduled loan amortisation. No new financing was arranged during the period. A decrease in interest to US$4.7 million (1H 2025: US$6.5 million) was mainly due to a decrease in average borrowings to US$124.8 million. The Group monitors the loan-to-asset value requirements on its bank borrowings. If the market values of the Group’s mortgaged assets fall below the level prescribed by our lenders, the Group may pledge additional cash or offer other additional collateral unless the banks offer waivers for technical breaches. As at 30 June 2026: ■ The Group’s secured borrowings and undrawn secured facilities were secured by 61 vessels with a total net book value of US$973.5 million and by an assignment of earnings and insurances in respect of these vessels ■ The Group was in compliance with all its loan-to-asset value requirements Borrowings and Undrawn Committed Facilities Liquidity and Borrowings US$ Million 30 Jun 2026 31 Dec 2025 Change Cash and deposits (a) 206.5 270.6 -24% Available undrawn committed facilities 467.1 485.5 -4% Available committed liquidity 673.6 756.1 -11% Current portion of borrowings (18.9) (66.6) Non-current portion of borrowings (30.4) (69.9) Total borrowings (b) (49.3) (136.5) +64% Net cash (a) + (b) 157.2 134.0 +17% Net cash to shareholders’ equity 8% 7% Net cash to net book value of owned vessels 10% 8% 0 100 200 300 400 500 271 +143 -3 -57 -40 -20 -7 207 +10 -89 -1 At 30 Jun 2026 At 1 Jan 2026 Operating cash inflow Vessel sales Dividends Lease liabilities and interest payment Share Buyback Net interest Capex Others Cash and deposits balance Cash inflow Cash outflow Change in borrowings
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14 Schedule of Reduction in Borrowings and Undrawn Committed Facilities Undrawn committed facilities Borrowings Finance Costs Total borrowings at 30 June Finance costs ChangeUS$ Million 2026 1H 2026 1H 2025 Borrowings (including realised interest rate swap contracts) 49.3 4.7 6.5 +28% Convertible bonds – – 0.6 +100% -6% 49.3 4.7 7.1 +35% Other finance charges 1.5 1.1 Finance costs excludi ng interest on lease liabilities 6.2 8.2 +24% Interest coverage 1 31.8x 14.8x Average interest rate 2 – P/L 6.2% 5.5% – Cash 6.2% 5.4% We arrange financing by leveraging the Group’s balance sheet to optimise the availability of cash resources of the Group. The KPIs on which management focuses to assess the cost of borrowings are: ■ average interest rates for different types of borrowings; and ■ the Group’s interest coverage. The Group aims to achieve a balance between floating and fixed interest rates on its borrowings. As at 30 June 2026, 50% (31 December 2025: 59%) of the Group’s borrowings were on fixed interest rates. 1 Interest cost is calculated as EBITDA divided by finance costs excluding interest on lease liabilities 2 Average interest rate is calculated as finance costs excluding non-financing related charges divided by the weighted average balance of total borrowings 0 50 100 150 200 186 130 50 177 9 111 19 31 19 2 31 33 86 31 US$ Million 2H 2026 2027 2028 2029 2031 and beyond 2030
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15 FINANCIAL RESULTS Group Performance Review This Group Performance Review comprises a presentation of our income statement adjusted to provide readers with a better understanding of the key dynamics of a shipping business, more consistent with the way we review our performance in our internal management reporting. Six months ended 30 June US$ Million Note 2026 2025 Change* Revenue 1,105.5 1,018.7 +9% Bunker, port disbursement & other voyage costs (439.8) (462.2) +5% Time-charter equivalent (“TCE”) earnings 1 665.7 556.5 +20% Owned vessel costs Operating expenses 2 (92.6) (92.6) 0% Depreciation 3 (76.8) (75.6) -2% Net finance costs 4 (2.3) (2.4) +4% Chartered vessel costs Non-capitalised charter costs 5 (336.6) (304.4) -11% Capitalised charter costs 5 (19.5) (19.9) +2% Operating performance before overheads 137.9 61.6 >+100% Adjusted total G&A overheads 6 (42.8) (39.4) -9% Taxation and others (0.2) (0.3) +33% Underlying profit 94.9 21.9 >+100% Unrealised derivative income/(expenses) 7 8.5 (1.3) Disposal gains of vessels 8 2.8 5.0 Project expenses 9 (1.2) – Profit attributable to shareholders 105.0 25.6 >+100% EBITDA# 197.8 121.5 +63% Net profit margin 10% 3% +7% Return on average equity (annualised) 11% 3% +8% * In our tabulated figures, positive changes represent an improving result and negative changes represent a worsening result. # 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 and unrealised derivative income and expenses. Notes: 1. Total time-charter equivalent (“TCE”) earnings increased due to stronger freight market conditions during the first half of the year. 2. Total operating expenses of our owned vessels remained stable, reflecting a relatively consistent fleet size in operation. 3. Depreciation of our owned vessels increased by 2%, mainly due to the higher docking costs. 4. The 4% decrease in net finance costs was mainly due to a decrease in average borrowings. 5. Non-capitalised charter costs comprise the cost of short-term charters with a term of 12 months or less and the non-lease portion of long-term charters with a term of over 12 months. Capitalised charter costs comprise depreciation of right-of- use assets and interest expenses on lease liabilities relating to the lease portion of long-term charters with a term of over 12 months. The increase in overall charter costs is in line with the strengthened freight markets during the period. 6. Adjusted total G&A overheads comprise the total G&A overheads and the interest on lease liabilities of other PP&E. The year- on-year increase was largely due to the absence of foreign exchange gains on Japanese yen deposits held for vessel purchases, which benefited the prior period. 7. Unrealised derivative income mainly represent the positive mark- to-market on our bunker swap contracts. 8. The disposal gain relates to the disposal of one older vessel. 9. Project expenses mainly relate to the professional advice on the Group’s structural change and other strategic corporate initiatives.
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16 Unaudited Condensed Consolidated Income Statement Six months ended 30 June Note 2026 US$’000 2025 US$’000 Revenue 3 1,105,480 1,018,680 Cost of services (991,723) (989,498) Gross profit 113,757 29,182 Indirect general and administrative overheads (3,580) (3,818) Other income and gains 2,865 5,391 Other expenses (2,725) – Finance income 3,964 5,811 Finance costs (8,931) (10,648) Profit before taxation 4 105,350 25,918 Tax charges 5 (300) (318) Profit attributable to shareholders 105,050 25,600 Earnings per share for profit attributable to shareholders (in US cents) Basic earnings per share 7(a) 2.06 0.50 Diluted earnings per share 7(b) 2.04 0.50 Unaudited Condensed Consolidated Statement of Comprehensive Income Six months ended 30 June 2026 US$’000 2025 US$’000 Profit attributable to shareholders 105,050 25,600 Other comprehensive income Items that are and may be reclassified subsequently to income statement Cash flow hedges – fair value gains 13 54 – fair value gains transferred to income statement (433) (957) Currency translation differences 9 938 Total comprehensive income attributable to shareholders 104,639 25,635
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17 Unaudited Condensed Consolidated Balance Sheet Note 30 June 2026 US$’000 31 December 2025 US$’000 ASSETS Non-current assets Property, plant and equipment 1,610,410 1,642,124 Right-of-use assets 90,545 91,028 Goodwill 25,256 25,256 Derivative assets 307 – Trade and other receivables 8 2,273 3,206 1,728,791 1,761,614 Current assets Inventories 148,814 96,527 Derivative assets 7,162 1,550 Trade and other receivables 8 183,957 148,103 Assets held for sale 6,033 – Cash and deposits 206,530 270,559 Tax recoverable 214 74 552,710 516,813 Total assets 2,281,501 2,278,427 EQUITY Capital and reserves attributable to shareholders Share capital 51,572 50,546 Retained profits 741,773 676,703 Other reserves 1,088,774 1,097,733 Total equity 1,882,119 1,824,982 LIABILITIES Non-current liabilities Borrowings 30,393 69,938 Lease liabilities 66,001 64,963 Derivative liabilities 2 775 96,396 135,676 Current liabilities Borrowings 18,916 66,583 Lease liabilities 27,956 28,937 Derivative liabilities 4,129 5,533 Trade payables and other liabilities 9 251,985 216,716 302,986 317,769 Total liabilities 399,382 453,445
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18 Notes: 1. General information The Company was incorporated in Bermuda on 10 March 2004 as an exempted company with limited liability under the Companies Act 1981 of Bermuda. The Company is listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). 2. Basis of preparation and accounting policies These unaudited interim condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants. These financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2025, which have been prepared in accordance with the HKFRS Accounting Standards. The accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 December 2025. The new or revised standards and amendments that became effective in this accounting period do not have any significant impact on the Group’s accounting policies and do not require any adjustments. 3. Revenue and segment information Six months ended 30 June US$’000 2026 2025 Freight 955,342 886,598 Charter-hire – lease component 72,734 79,064 – non-lease component 77,404 53,018 1,105,480 1,018,680 The Group’s revenue is substantially derived from the provision of dry bulk shipping services internationally and, accordingly, information is not presented by business segment. Geographical segment information is not presented as the management considers our shipping services are international in nature, precluding a meaningful allocation of operating profit to specific geographical segments. 4. Profit before taxation Profit before taxation is stated after charging/(crediting) the following: Six months ended 30 June US$’000 2026 2025 Vessel charter costs 336,566 304,395 Bunkers consumed 227,293 242,573 Port disbursements and other voyage costs 223,724 218,611 Depreciation 95,103 94,517 Employee benefit expenses 93,415 93,844 Vessel operating expenses 25,579 26,275 Lubricating oil consumed 5,534 5,286 Net (gains)/losses on bunker swap contracts (21,242) 3,398 Gains on disposal of vessels (2,814) (5,030)
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19 5. Taxation Shipping income from international trade is either not subject to or exempt from income tax according to the tax regulations prevailing in the jurisdictions in which the Group operates. Income from non-shipping activities is subject to tax at prevailing rates in the jurisdictions in which these businesses operate. The amount of taxation charged to the income statement represents: Six months ended 30 June US$’000 2026 2025 Overseas tax, provided at the rates of taxation prevailing in the jurisdictions 309 276 Adjustments in respect of prior year (9) 42 Tax charges 300 318 6. Dividends Six months ended 30 June 2026 2025 HK cents per share US cents per share US$’000 HK cents per share US cents per share US$’000 Interim dividend (a) 15.5 2.0 102,199 1.6 0.2 10,717 Dividends paid during the period (b) 6.0 0.8 39,518 5.1 0.7 33,424 (a) The interim dividend is declared on 6 August 2026 and therefore not reflected in the financial statements. (b) Dividends paid during the period represent final dividend of the prior year. 7. Earnings per share (“EPS”) (a) Basic earnings per share Basic earnings per share are calculated by dividing the profit attributable to shareholders by the weighted average number of shares in issue during the period, excluding the shares held by the trustee of the Company’s 2023 Share Award Scheme and 2025 Share Award Scheme (collectively “SASs”) and unvested restricted shares. Six months ended 30 June 2026 2025 Profit attributable to shareholders (US$’000) 105,050 25,600 Weighted average number of shares in issue (’000) 5,104,241 5,074,070 Basic earnings per share (US cents) 2.06 0.50 Equivalent to (HK cents) 16.09 3.93
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20 (b) Diluted earnings per share Diluted earnings per share are calculated by dividing the basic earnings by the weighted average number of shares in issue during the period, excluding the shares held by the trustee of the Company’s SASs and after adjusting for the dilutive effect of unvested restricted shares. Six months ended 30 June 2026 2025 Profit attributable to shareholders (US$’000) 105,050 25,600 Effect of interest on convertible bonds (US$’000) – 632 Adjusted profit attributable to shareholders (US$’000) 105,050 26,232 Weighted average number of shares in issue (’000) 5,104,241 5,074,070 Effect of unvested restricted shares (’000) 36,324 22,530 Effect of convertible bonds (’000) – 158,429 Diluted weighted average number of shares (’000) 5,140,565 5,255,029 Diluted earnings per share (US cents) 2.04 0.50 Equivalent to (HK cents) 15.98 3.89 8. Trade and other receivables Trade receivables are included in this item and their ageing based on invoice date is as follows: US$’000 30 June 2026 31 December 2025 ≤ 30 days 90,711 72,843 31-60 days 3,885 5,630 61-90 days 4,936 3,446 > 90 days 14,812 12,079 114,344 93,998 9. Trade payables and other liabilities Trade payables are included in this item and their ageing based on due date is as follows: US$’000 30 June 2026 31 December 2025 ≤ 30 days 99,376 74,755 31-60 days 16 254 61-90 days 226 130 > 90 days 6,806 7,043 106,424 82,182
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21 Purchase, Sale or Redemption of Securities During the six months ended 30 June 2026, the Company repurchased a total of 9,479,000 shares on the Stock Exchange under the Company’s share buyback programme as announced on 3 March 2026. The financial position of the Company was solid and healthy. The share buyback programme reflected the Company’s confidence in its long-term business prospects and potential growth. In addition, the Company believed that actively optimising the capital structure through implementing the share buyback programme would enhance its earnings per share, net asset value per share and shareholder return. The aggregate consideration paid (before expenses) for the share repurchases amounted to approximately HK$27.1 million (equivalent to approximately US$3.5 million). All shares bought back have been cancelled – 1,478,000 shares were cancelled during the period and 8,001,000 shares were cancelled on 13 July 2026. As at 30 June 2026 and the date of this announcement , the total number of shares in issue were 5,165,247,803 shares and 5,157,246,803 shares respectively and there were no treasury shares held by the Company . Particulars of the shares bought back are as follows: Month Number of shares bought back Purchase price paid per share (HK$) Aggregate consideration paid before expenses (HK$)Average Highest Lowest June 2026 9,479,000 2.86 2.90 2.80 27,065,401.60 In May 2026, the trustee of the share award scheme of the Company purchased a total of 16,245,000 shares on the Stock Exchange in relation to awards granted to certain awardees under the Company’s 2025 Share Award Scheme. The aggregate consideration paid (before expenses) amounted t o approximately HK$ 55.6 million (equivalen t to approximately US$7.1 million). This share purchase by t he trustee constitut ed a transaction in the securities of th e Company for the pu rpose of the Rules Governing the Listing of the Securities on the St ock Exchange ( the “Listing Rules ”). Save as disclosed above, during the six months ended 30 June 2026, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the share capital of the Company. Directors’ Securities Transactions The Board has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”), as set out in Appendix C3 to the Listing Rules. The Board confirms that, having made specific enquiry of all Directors, the Directors have fully complied with the required standards as set out in the Model Code and its code of conduct regarding Directors’ securities transactions during the six months ended 30 June 2026. Compliance with the Corporate Governance Code Throughout the six months ended 30 June 2026, the Group has complied with all code provisions of the Corporate Governance Code as set out in Part 2 of Appendix C1 to the Listing Rules. Review of Interim Results This interim results announcement and the 2026 Interim Report have been reviewed by the external auditor and the Audit and Risk Committee of the Company. Interim Dividend and Closure of Register of Members The Board has declared an interim dividend of HK 15.5 cents per share for the six months ended 30 June 2026 which will be paid on 3 September 2026 to those shareholders whose names appear on the Company’s register of members on 24 August 2026. The register of members will be closed on 24 August 2026 during which no transfer of shares will be effected. In order to qualify for the interim dividend, all transfers, accompanied by the relevant share certificates, must be lodged with the Company’s Hong Kong share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong not later than 4:30 p.m. on 21 August 2026. The ex-dividend date for the interim dividend will be on 20 August 2026. Interim Report and Disclosure of Information on Stock Exchange’s Website The announcement of interim results containing all the information required in paragraphs 46(1) to 46(10) of Appendix D2 to the Listing Rules has been published on the Stock Exchange’s website at www.hkexnews.hk and on the Company’s website at www.pacificbasin.com. The Company’s 2026 Interim Report is printed in English and Chinese languages, and will be available on the Company’s website on or around 21 August 2026.
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22 Directors As at the date of this announcement, the Directors of the Company are: Executive Director s: Martin Fruergaard and Kristian Helt Independent Non-executive Directors: Irene Waage Basili, Stanley Hutter Ryan, Kirsi Kyllikki Tikka, John Mackay McCulloch Williamson, Kalpana Desai, Wang Xiaojun Heather and Mats Henrik Berglund Non-executive Directors: Harindarpal Singh Banga and Angad Banga Note: The English text of this announcement shall prevail over the Chinese text in case of any inconsistency. Shareholders and investors are reminded that this announcement of interim results for the six months ended 30 June 2026 is based on the Group’s internal records and management accounts. Shareholders and investors are cautioned not to rely unduly on this announcement of interim results and are advised to exercise caution when dealing in the shares of the Company.