Pangaea Logistics Solutions report first quarter financial results

First Quarter Results:

• Net loss attributable to Pangaea of US$2.0 million, or US$0.03 per share
• Adjusted net loss attributable to Pangaea of US$2.2 million, or $0.03 per share
• Adjusted EBITDA of US$14.8 million
• Time Charter Equivalent ("TCE") rates earned by Pangaea of US$11 390 per day
• Pangaea's TCE rates exceeded the weighted average Baltic Panamax, Supramax, and Handysize indices by 33%
• Announces US$15million share repurchase authorisation
• Declared quarterly cash dividend of US$0.05 per common share

For the three months ended March 31, 2025, Pangaea reported non-GAAP adjusted net loss of US$2.2 million, or US$0.03 per share, on total revenue of US$122.8 million. First quarter TCE rates decreased 36% on a year-over-year basis, while total shipping days, which include both voyage and time charter days, increased 41% to 5210 days, when compared to the year-ago period. The increase in shipping days relative to the year-ago period was primarily attributable to the acquisition of fifteen handy-sized vessels, which was completed at the end of the fourth quarter of 2024.

The TCE earned was US$11 390 per day for the three months ended March 31, 2025, compared to an average of US$17 697 per day for the same period in 2024. During the first quarter ended March 31, 2025, the Pangaea's average TCE rate exceeded the benchmark weighted average Baltic Panamax, Supramax, and Handysize indices by 33%, supported by Pangaea's long-term contracts of affreightment ("COAs"), specialised fleet, and cargo-focused strategy.

Total Adjusted EBITDA decreased by 24.2% to US$14.8 million in the first quarter of 2025, compared to the prior-year period. Total Adjusted EBITDA margin was 12.0% during the first quarter of 2025, compared to 18.6% during the prior year period. This decrease is primarily due to a decrease in market freight and time charter hire rates, which resulted in lower TCE earnings.

As of March 31, 2025, Pangaea had US$63.9 million in cash and cash equivalents. Total debt, including finance lease obligations was US$390.8 million. On December 30, 2024, Pangaea assumed approximately US$100.6 million of indebtedness in connection with its transaction with Strategic Shipping, Inc. During the three months ended March 31, 2025, Pangaea repaid US$11.03 million of long-term debt, financing obligations, and finance lease, while also distributing US$6.73 million in cash dividends.

On May 8, 2025, Pangaea's Board of Directors authorised a new share repurchase program. Pursuant to the authorised programme, the Company may repurchase up to US$15 million of its outstanding shares of common stock in the open market, in accordance with applicable rules and regulations. The authorisation represents 5.6% of Pangaea's market capitalisation as of May 8, 2025. Pangaea's decision to repurchase its shares, as well as the timing of such repurchases, will depend on a variety of factors, including the ongoing assessment of the Pangaea capital needs, the market price of the Pangaea's common stock, general market conditions and other corporate considerations, as determined by management. The repurchase programme may be suspended or discontinued at any time.

Pangaea's Board of Directors also declared a quarterly cash dividend of US$0.05 per common share, to be paid on June 16, 2025 to all shareholders of record as of June 2, 2025.

Management commentary

"We showed disciplined execution during the first quarter, maintaining our cargo-focused strategy and delivering consistent premium TCE rates supported by our portfolio of long-term contracts," stated Mark Filanowski, Chief Executive Officer of Pangaea Logistics Solutions. "Our results reflected both the expected seasonal softness early in the quarter and increased market volatility driven by shifting US trade policy dynamics."

Strategic Update

Pangaea remains committed to developing a leading dry bulk logistics and transportation services company of scale, providing its customers with specialised shipping and supply chain and logistics offerings in commodity and niche markets, which drive premium returns measured in time charter equivalent per day.

Leverage integrated shipping and logistics model. In addition to operating the largest high ice class dry bulk fleet of Panamax and post-Panamax vessels globally, Pangaea also performs stevedoring services, together with port and terminal operations capabilities. Following the completion of the SSI acquisition in late 2024, Pangaea is focused on the integration of the handy sized fleet and leveraging these vessels to compliment and expand its terminal services and stevedoring operations. Pangaea is steadily advancing its terminal operations expansion at the Port of Tampa, with completion anticipated in the second half of 2025.

Continue to drive strong fleet utilisation. In the first quarter, Pangaea's owned fleet of 41 vessels was well utilised on average, despite 160 days of off-hire due to dry dockings. The owned vessel fleet was supplemented with an average of 19 chartered-in vessels to support cargo and COA commitments. Through successful integration of the recently acquired fleet of handy-sized vessels, Pangaea is focused on improving utilisation across it's fleet and continuing to meet the dynamic demands of its customers.

Continue to upgrade fleet, while divesting older, non-core assets. Going forward Pangaea plans to selectively invest in its fleet with the purpose of maximising TCE rates, meeting evolving regulatory requirements and supporting client cargo needs on an on-demand basis.

Read the article online at: https://www.worldcement.com/europe-cis/13052025/pangaea-logistics-solutions-report-first-quarter-financial-results/