Shares of PACIFIC BASIN (02343) declined by more than 4% in today's trading session. At the time of writing, the stock was down 4.08%, trading at HK$3.06, with a turnover of HK$64.69 million. The movement follows the company's release of its full-year results, which showed a significant drop in profitability.

The group reported annual revenue of $2.081 billion, a decrease of 19% compared to the previous year. Profit attributable to shareholders was $58.2 million, representing a 56% decline year-on-year. Basic earnings per share stood at 8.9 HK cents, and the board has proposed a final dividend of 6 HK cents per share. Additionally, the company announced a share buyback program of up to $40 million.

In a related development, 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. While management commentary and forward freight agreement rates point to a relatively optimistic outlook for Time Charter Equivalents (TCE) in the current year, visibility for 2026 appears more constrained. Specifically, it is estimated that 41% of Handysize vessel operating days and 56% of Supramax vessel operating days for 2026 are fixed at average net daily rentals of $11,370 and $14,050, respectively. These figures compare to rates of $11,490 and $12,850 locked in for 2025, indicating limited upside potential for TCE rates in the medium term.