Pacific Basin reported stronger trading conditions in the first quarter of 2026, driven by geopolitically induced shipping inefficiencies and higher freight rates.

Time-Charter Performance • Average daily TCE for the core Handysize fleet reached USD 12,130, up 11% year on year and USD 1,030 above the tonnage-adjusted Baltic Handysize Index (BHSI). • Core Supramax vessels earned USD 13,970 per day, a 14% increase year on year and USD 2,050 above the Baltic Supramax Index (BSI). • Operating activity generated an additional USD 340 net per day on 6,240 operating days.

Cost Position and Forward Coverage • 2025 indicative cash break-even levels (including opex, G&A and finance costs) are USD 6,880 per day for Handysize and USD 6,540 for Supramax, underpinning positive cash generation in Q1. • For Q2 2026, 70% of committed Handysize days are fixed at USD 14,000 and 90% of Supramax days at USD 17,080. • Coverage for H2 2026 stands at 22% of Handysize days at about USD 10,430 and 35% of Supramax days at roughly USD 13,840.

Market Environment • Q1 2026 spot market averages climbed to USD 11,100 for Handysize (+39% YoY) and USD 11,920 for Supramax (+51% YoY). • Baltic Exchange FFA rates for Q2–Q4 2026 are quoted at USD 14,080 for Handysize and USD 16,230 for Supramax (data as of 15 April 2026). • The Arabian Gulf conflict has lifted fuel prices by over 50% and immobilised about 2% of the global sub-Capesize fleet, supporting freight rates despite a 3.3% YoY drop in global minor-bulk trade.

Fleet Development • Core fleet totals 120 Handysize and Supramax vessels; total operated fleet (including short-term charters) is 246 vessels. • In January, a long-term chartered Ultramax with a previously exercised purchase option joined the owned fleet. • On 16 April 2026, the company cancelled four dual-fuel methanol Ultramax orders valued at USD 186 million and replaced them with four conventional 64,000 dwt Ultramax newbuildings at USD 156.80 million, reducing near-term capex. An option to acquire two dual-fuel Ultramax vessels for USD 91 million by February 2027 has been secured. • Two 40,000 dwt Handysize newbuildings were ordered from Jiangmen Nanyang Ship Engineering for USD 59.60 million, with delivery in H2 2028. • The orderbook now comprises six Handysize and four Ultramax newbuildings, alongside options on two dual-fuel Ultramax and purchase options on 15 long-term chartered vessels.

Industry Supply Outlook • Clarksons Research estimates global dry-bulk net fleet growth of 0.9% in Q1 2026; Handysize and Supramax segments grew 1.0% and 1.1% respectively. • Vessels over 20 years old represent 15.6% of the Handysize fleet and 14.2% of the Supramax fleet, indicating potential scrapping pressure ahead of stricter environmental rules.

Balance Sheet and Dividend Framework The trading update reiterates the company’s expanded dividend policy and highlights a strong balance sheet positioned to manage volatility and pursue disciplined growth opportunities.

No audited financial statements accompanied this update; figures are derived from internal management accounts.