PACIFIC BASIN's stock plummeted 5.02% during intraday trading on Thursday, extending losses following the release of disappointing full-year financial results and cautious analyst commentary.
The sharp decline comes after the company reported annual revenue of $2.081 billion, representing a 19% decrease compared to the previous year. Profit attributable to shareholders fell sharply by 56% year-on-year to $58.2 million, with basic earnings per share at 8.9 HK cents. While the board proposed a final dividend of 6 HK cents per share and announced a share buyback program of up to $40 million, these measures were insufficient to offset the negative financial performance.
Adding to investor concerns, Daiwa Capital Markets issued a report indicating that PACIFIC BASIN's projected earnings for 2025 are below expectations, suggesting that the recent strong rebound in its share price may be difficult to sustain. The report noted that while management commentary and forward freight agreement rates point to a relatively optimistic outlook for Time Charter Equivalents in the current year, visibility for 2026 appears more constrained with limited upside potential for TCE rates in the medium term.
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