Pacific Basin 2343

Pacific Basin 2343

Postby winston » Fri May 09, 2008 10:25 am

STOCK ALERT - Hong Kong-listed Pacific Basin falls sharply on share sale news

HONG KONG (XFN-ASIA) - Pacific Basin Shipping Ltd was sharply lower after news that it is selling up to 158.6 mln shares in a placement deal.

At 10:15 am, the stock was down 0.86 hkd or 5.91 pct at 13.68, off a low of 13.56.

The dry bulk shipping firm said it has agreed to place up to 158.6 mln shares at 13.52 hkd each with at least six independent investors, to raise up to 2.14 bln hkd.

The placing price represents 7.0 pct to the stock's closing price of 14.54 hkd yesterday.

The placement shares represent 9.1 pct of the company's enlarged share capital.

The company said the proceeds will be invested in roll-on-roll vessels, dry bulk vessels and on maritime infrastructure opportunities such as tugs and ports.
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Re: Pacific Basin 2343

Postby winston » Mon Jun 16, 2008 1:47 pm

Not vested. From UOB-Kay Hian
[b]

Maintain BUY on Pacific Basin. We prefer the defensive stock Pacific Basin (PB) (2343.HK) amid the highly volatile market. PB has already locked in about 70% of total revenue for FY08.

The stock is also trading at lowerthan-average FY08 PE and FY08 EV/EBITDA. PB's share price has lagged behind the BDI by 14% over the past month. Given its decent dividend yield of 10% and the company being cash rich, we regard its valuation as attractive.

The share price movements of dry bulk companies are about one month ahead of the BDI. As such, we recommend BUY PB in dip before dry bulk shipping returns to the peak autumn season.
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Re: Pacific Basin 2343

Postby winston » Mon Jul 28, 2008 11:12 pm

GS downgraded Pacific Basin Shipping to 'neutral' from 'buy' and cut the target to 11.60 hkd from 16.0.

Pacific Basin Shipping was down 0.40 hkd or 3.50 pct at 11.04.
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Re: Pacific Basin 2343

Postby winston » Mon Aug 04, 2008 10:51 pm

Not vested.

Pacific Basin First-Half Profit More Than Doubles
By Wendy Leung

Aug. 4 (Bloomberg) -- Pacific Basin Shipping Ltd., Hong Kong's largest operator of dry-bulk vessels, said first-half profit more than doubled as China's demand for coal and iron ore boosted freight rates.

Net income rose to $337.6 million, or 21 cents a share, from $162.9 million, or 10 cents, a year earlier, the company said in a Hong Kong stock exchange statement today. Sales doubled to $909.9 million.

Pacific Basin follows Sinotrans Shipping Ltd. and Nippon Yusen K.K. in boosting profit after demand for commodities in China and India allowed it to charge 83 percent more for chartering out its largest bulk vessels. Traffic may also jump next month after a slowdown caused by curbs on manufacturing around Beijing ahead of this month's Olympics.

``Freights rates will rise as the steel and cement plants re-open,'' said Stella Kei, an analyst at UOB Kay Hian Ltd. in Hong Kong. ``Profit will grow more quickly in the second half.''

The company proposed an interim dividend of 76 Hong Kong cents a share, compared with 45 cents a year earlier.

Higher Rates

Pacific Basin's average daily rate for chartering out handysize vessels, less than 40,000 deadweight tons, jumped 64 percent in the first half. Revenue days climbed 20 percent, as it added more ships. Rates for handymax ships, between 40,000 deadweight tons and 50,000 deadweight tons, surged to $46,100 from $25,180. Revenue days rose 28 percent.

The company has booked in 83 percent of handysize days this year at an average rate about third higher than in 2007, it said.

``Business looks very promising in 2008,'' Chief Executive Officer Richard Hext told reporters in Hong Kong today. Still ``it's hard to predict freight rates'' after the next 12 months because orders for new ships may be scrapped. A third of global deliveries due in the first half of this year appear to have been canceled, he said, citing Clarkson Plc.

The outlook for the dry-bulk shipping market next year has ``turned increasingly positive'' because of unexpected delays in deliveries, Geoffrey Cheng, a Hong Kong-based Daiwa Institute of Research Ltd. analyst, said in a July 29 report.

Pacific Basin fell 1.8 percent to HK$10.80 in Hong Kong trading today, before the earnings release. The stock has dropped 14 percent this year, compared with the benchmark Hang Seng Index's 19 percent plunge.

China, the biggest customer for bulk-shipping lines, has shut steel mills and other plants near Beijing to cut pollution. That caused the Baltic Dry Index, a measure of commodity shipping costs, to fall for 16 straight days up to Aug. 1.

Pacific Basin operates a fleet of 80 dry-bulk ships, including 63 handysize vessels. It has 13 newbuild bulk ships on order. The company has also lined up orders for six roll-on, roll-off vessels, as it expands into carrying cars and trucks.

The so-called RoRo ships will make a ``meaningful profit contribution'' as early as the second half of 2010, Andrew Broomhead said in the news conference today.
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Re: Pacific Basin 2343

Postby winston » Mon Feb 02, 2009 3:41 pm

DJ MARKET TALK: UBS Ups Pacific Basin Target To HK$4.50 From HK$4

1406 [Dow Jones] STOCK CALL: UBS raises Pacific Basin Shipping's (2343.HK) target to HK$4.50 from HK$4.00 on higher 2009-13 freight rate forecasts; keeps Buy. Raises 2009 EPS forecast to US$0.06 from US$0.06, increases 2010 EPS forecast to US$0.02 from loss per share of US$0.04 to reflect restructuring of lease contracts, impairment charges, gains on sale of vessels, gains on cancellation of convertible bonds.

Notes company recently announced sale of three handysize vessels; sold one handymax newbuild and purchased one handysize vessel. "Overall we believe management is actively seeking to build cash reserves in preparation for (even) cheaper acquisition opportunities in the future." Stock +1.7% at HK$4.15; HSI down 2.8%.
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Re: Pacific Basin 2343

Postby winston » Thu Feb 26, 2009 11:47 am

DJ MARKET TALK: BOCI Cuts Pacific Basin To Sell; Target HK$2.40

1001 [Dow Jones] STOCK CALL: BOCI cuts Pacific Basin (2343.HK) to Sell from Buy, also lowers target price to HK$2.40 vs HK$4.55. Trims dry bulk shipper's FY08 earnings forecast by 4.4%, slashes FY09's by 52.7% after cutting time charter equivalent (TCE) rate assumptions for Handysize fleet by 8.9% to $29,580/day for 2008, 53% to $14,509/day for 2009, those for Handymax fleet by 7.7% to $45,070, 42.3% to $25,352 respectively.

New target pegged on 0.4X 2009 P/B, as believes stock "has to be valued at a trough cycle valuation multiple" amid challenging business outlook. Pacific Basin down 0.3% at HK$3.64 at pre-open
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Re: Pacific Basin 2343

Postby winston » Tue Mar 03, 2009 7:47 am

Pacific Basin earnings slide 13pc

Pacific Basin Shipping's (2343) net profit for 2008 slid 13 percent to US$409 million (HK$3.19 billion) from US$472.1 million a year earlier, after making provision for vessel contracts and vessel disposal losses this year.

Hong Kong's largest operator of commodity vessels said it will be prudent and will hold cash until the right investment opportunities emerge.

The company recorded a 16 percent operational profit growth in 2008, but made provision of US$54 million for charter-in vessel contracts. The net profit margin dropped to 47 percent from 67 percent. Turnover surged 44 percent from a year earlier to US$1.69 billion.

The company earmarked US$225 million for capital expenditure this year, down from US$378 million for 2008. Chief executive Richard Hext said the company expects a challenging, volatile and weak dry-bulk market to continue in 2009.

"But we anticipate that our strong balance sheet and diverse range of shipping activities will help us to navigate the storm and take advantage of the growth opportunities that will arise from it."

The company had net cash of US$176 million at the close of the fiscal year ended December 31, with a cash position of US$1 billion.

By February 25 this year it had already covered some 72 percent of its 2008 revenue days from fixed contracts.

Chairman David Turnbull said the company will scale down non-core activities in maritime services while strengthening its core handysize and handymax dry-bulk business, towage, and roll-on roll-off operations to ride out the crisis.

Pacific Basin shares retreated 4.78 percent yesterday to close at HK$3.46. KATHY WANG
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Re: Pacific Basin 2343

Postby winston » Tue Mar 03, 2009 12:37 pm

DJ MARKET TALK:Pacific Basin Dn 8.1%;Poor Earnings Visibility-DBS

1058 [Dow Jones] Pacific Basin (2343.HK) down 8.1% at HK$3.18 after reporting weak FY results, with 2008 net profit down 13% on-year at US$409 million. DBS expects Pacific Basin's earnings visibility to remain poor on bearish view for dry bulk shipping industry until 2010.

"Despite no near-term financial risk given its strong balance sheet, we foresee further depletion of its vessels' asset value given the high earnings risk," says DBS. Keeps at Sell, lowers target to HK$2.74 vs HK$2.81 based on 50% discount to book value; cuts 2009 EPS forecast by 63%. Early low of HK$3.01 as immediate support
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Re: Pacific Basin 2343

Postby winston » Fri Mar 20, 2009 2:29 pm

DJ MARKET TALK: Canfornav's Pacific Basin Stake Buys "Curious"-GS

1224 [Dow Jones] STOCK CALL: Goldman Sachs finds Canadian Forest Navigation's (Canfornav) stake buildup in Pacific Basin (2343.HK) "curious" at this stage of downcycle. Notes on Feb. 15, stake reached 5%, requiring disclosure; rose to 9.4% as of March 5, becoming largest PB stakeholder, with estimated aggregate cost basis of US$83 million.

Adds, although PB trading at undemanding valuation, some peers, such as Sinotrans Shipping (0368.HK) are trading at lower multiples. Notes PB's fleet profile similar to Carfornav's, but latter tends to operate Handys around Greak Lakes and Atlantic Basin. Keeps at Sell, target of HK$2.50 based on target fleet multiple of 0.69X. Stock down 0.8% at HK$3.61; HSI down 1.2%
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Re: Pacific Basin 2343

Postby winston » Thu May 21, 2009 7:51 am

Shipper on the prowl for expansion

Dry bulk shipper Pacific Basin (2343), having raised cash from a share placement, said it is ready for expansion when it sees solid market recovery.

"We expect the difficult shipping market to present opportunities to the company and are therefore expanding our capital with a view to purchasing assets - at attractive prices at the right time," deputy chief executive Klaus Nyborg said yesterday.

The dry bulk shipper placed 175 million shares on Wednesday, raising US$96.4 million (HK$751.9 million).

It sees a continued volatile and challenging dry bulk market throughout 2009, Nyborg said. "China is restocking commodities and importing from overseas, so we see a solid but surprising rally of the recent market, but the rally may not be sustainable. As more new ships come to the market in the second half this year, supply may overstrip demand by then," Nyborg said. "We are cautious about the dry bulk market in the rest of this year."

Pacific Basin's joint venture on Monday secured an agreement with Chevron to supply marine vessels to support the Gorgon Project on the northwest coast of Australia. Valued at around A$350 million (HK$2.1 billion), the contract is for a minimum three years and will start in the third quarter of this year.

Pacific Basin shares climbed 1.97 percent yesterday to close at HK$4.67.

KATHY WANG, The Standard HK
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