The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Parash Jain - HSBC Securities Ltd. - Analyst
: Hi. Martin, can you hear me?
Question: Parash Jain - HSBC Securities Ltd. - Analyst
: Lovely. I have two questions. First, with respect to the development in the first quarter, given an apparent imbalance with respect to supply and
demand and the fact that the average TCE/freight rate remain significantly above the cash cost level or rather profitable level at the P&L. Does it
signal us that it is pretty much the bottom as far as demand and supply mismatch is concerned and the evolution through the year probably will
be anything above those levels what we have seen in the first quarter?
And my second question will be more on how is Pac Basin preparing for various scenarios of USTR? And are you seeing your Japanese-built vessels
values are going up versus some of the Chinese-built vessels that you have, both in the second-hand as well as in the newbuild market? Thank you.
Question: Parash Jain - HSBC Securities Ltd. - Analyst
: I mean -- so what I was asking you is that first quarter, given the demand and supply imbalance, freight rate could have landed anywhere. The fact
that it has settled at a level where you are comfortably profitable, especially on the cash level, so what are the driving forces there, which is supporting
the freight rate in a scenario of supply exceeding demand? And what shall we understand from that pattern for the rest of the year?
Question: Parash Jain - HSBC Securities Ltd. - Analyst
: Yes. And second on USTR, yeah.
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APRIL 17, 2025 / 10:00AM, 2343.HK - Q1 2025 Pacific Basin Shipping Ltd Trading Statement Call
Question: Parash Jain - HSBC Securities Ltd. - Analyst
: Absolutely. No, that's very, very helpful. And also, it was quite reassuring to see Pac Basin reestablishing its premium over the spot market. So that
was quite reassuring.
Question: Nathan Gee - BofA Global Research - Analyst
: Maybe three questions from me. Firstly, just in terms of secondhand prices, I think they're down about 10% to 20% from peak. So can you comment
on whether secondhand purchases are looking a bit more interesting? That's the first question.
Secondly, just in terms of the buyback, was there any internal debate in terms of potentially pausing the program given the macro uncertainties
right now?
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APRIL 17, 2025 / 10:00AM, 2343.HK - Q1 2025 Pacific Basin Shipping Ltd Trading Statement Call
And then thirdly, look, Clarksons, I think, is also calling for oversupply into '26. Do you have any early sort of base case view for next year or just too
early to say, too hard to say given uncertainties? Thanks.
Question: Nathan Gee - BofA Global Research - Analyst
: That's great. And any early --?
Question: Nathan Gee - BofA Global Research - Analyst
: Okay. Completely fair. Yeah.
Question: Nathan Gee - BofA Global Research - Analyst
: We have another online question. What's the driver behind your operating margin improvement?
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