Pacific Basin Shipping Limited

Welcome to today's Pacific Basin 2026 Third Quarter Trading Update Conference Call. I am pleased to present Chief Executive Officer, Mr. Martin Fruehgard and Chief Financial Officer, Mr. Jimmy Ng. For the first part of this call, all participants will be in a listen-only mode and afterwards there will be a question and answer session. Mr. Fruehgard, please begin.

Thank you. Yeah, welcome and thank you for attending Pacific Basin's 2026 first quarter trading update. We will as usually highlight the key points in the published presentation before we proceed to Q&A. Please turn to slide two. Dry ball market conditions further strengthened during the third quarter of 2026. geopolitical uncertainty, disruptions, and weather-related events continued to affect several key shipping routes, supporting ton-mile demand. Freight rates further strengthened, with BHSI and BSI increased by more than 25% year-on-year. In the third quarter, our heavy-size and supermax fleet recorded average net daily TCE earnings of $16,020 and $17,990 respectively, marking strong year-on-year increases of 37% and 34%. For the first nine months of the year, we continued to outperform the respective indices, with Hadley Size and Supermax outperforming by 1,730 and 1,440 per day, or 13.9% respectively. We continued to enhance and renew our fleet. During the quarter, we exercised the purchase option on one long-term chartered Hadley Size vessel, took delivery of one new long-term chartered heavy-sized new building and we sold and delivered two 20-year-old Supermax vessels. In addition, we also declared a purchase option on three-year-old long-term chartered heavy-sized vessels with delivery in the fourth quarter of 2026. As at the end of September 2026, we have a total of 258 vessels in operations comprising 106 owned vessels, 13 long-term chartered vessels and 139 short-term chartered vessels. Our current order book consists of six handy size and four ultra max new buildings with expected delivery between 2028 and the first half of 2029. We hold an option for two dual fuel ultra new buildings that is declarable in February 2026. and we hold purchase options on 11 modern long-term chartered vessels already in our fleet, which are declarable between 2027 and 2031. We have two long-term chartered new buildings joining our fleet in 2027, one handy size and one supermax, both of which come with fixed price purchase options. These purchase options and our new buildings on order maximize our flexibility, enabling us to renew our fleet and allocate capital in a disciplined and value accretive manner. Now we'll hand over to Jimmy for an overview of the third quarter performance.

Thank you, Martin. Good evening, ladies and gentlemen. I will share with you some observations on the market and a snapshot of the market. and also our operational performance for the period. Please turn to slide four. Market freight rates maintained the momentum during the third quarter of 2026, supported by healthy dry bulk trade floats and continued inefficiencies across global shipping networks. During the quarter, market spot rates for HandySize averaged approximately $14,670 per day, representing an increase of 27% year on year. Market spot rates for SupraMax averaged approximately $18,290 per day, which was 28% higher year on year. The freight market conditions year to date have been materially stronger than the last two years across both the HandySize and SupraMax segments. Geopolitical developments and other disrupting factors, such as at first weather conditions, continue to create inefficiencies in the industry. The US-Iran tensions remained, causing ships to reroute and affecting trading patterns due to severely restricted vessel transits through the Strait of Hormuz. Now with the limited progress in the US-Iran relations, the timing of any reopening remains uncertain. Trade market volatility is expected to continue with the various disruptions that are unlikely to be fully resolved in the near future. FFA rates for the remainder of 2026 also point to strong market conditions ahead. Please turn to slide five. In the third quarter of 2026, as Martin mentioned earlier, our average daily TCE earnings of US$16,020 for HandySize and $17,990 for SupraMax represented an increase of 37% and 34% respectively compared to the same period in 2025. In terms of cover, we have currently covered 65% of our committed festival days for HandySize and 76% for SupraMax at $16,480 and $18,960 per day respectively. We have retained exposure to the market through open festival days in attractive positions, giving us the opportunity to benefit from a seasonally stronger market in the remainder of the year. For 2027, we have currently covered 7% of our handy-sized festival days at $13,180 per day and 19% of our supermax festival days at $15,590 per day. Complementing our core business, our operating activity generated an average daily margin of $2,190 on about 6,610 operating days in the third quarter. Now, this operating activity margin was significantly higher than that of last year. Please turn to slide six. In the third quarter of 2026, our handy-sized TCE earnings outperformed the spot market index by 1,350 per day, or 9%, whereas our supermax TCE earnings were $300 per day, or 2% below the index. Now that is primarily reflecting the Atlantic Pacific rate of ventures and also a deliberate backhaul positioning into the higher paying Atlantic market ahead of the typical strong fourth quarter. For the first nine months of 2026, we continued to record our performance with our handy size TCE earnings outperforming the market spot rate by 13%, or $1,730 per day, and our supermax outperforming the BSI by 9%, or $1,440 per day. This sustained outperformance reflects the strength of our operating model, The resilience of our commercial platform and the effective execution of our long-term business strategy in a highly cyclical market. I will now hand you back to Martin to run you through the market dynamics and outlook.