Pangaea Logistics Solutions Ltd. Q4 FY2024 earnings call

• Completed merger with 15 Handysize dry bulk vessels on December 30, issuing 18.1 million common shares and assuming ~$100 million in vessel indebtedness; now has 41 owned vessels with operating fleet 60-70.
• Fourth quarter adjusted EBITDA grew ~$4 million YOY, TCE exceeded benchmark by 48%, strong finish to transformational year.
• Asset-light, cargo-centric model provides flexibility, cost efficiency, scalability; enhances ability to manage market cycles.
• Monitors potential headwinds from US tariffs and port fees, which could cause market volatility and structural shifts.
• Fleet expansion enables expansion of logistics and terminal services in high-traffic ports, supported by ongoing economic and infrastructure growth.

For the fourth quarter of 2024, adjusted net income was $7.6 million and adjusted EBITDA was $23.2 million, representing significant year-over-year growth despite prevailing market rates decreasing by 22.6% during the quarter. The company's asset-light cargo-centric operating model, leveraging owned and chartered-in vessels, supports its performance. The dry bulk segment is the primary focus, with robust demand across bulk trades supported by economic expansion and infrastructure investment, though revenue contribution percentages for specific segments aren't explicitly detailed.

• First quarter 2025: Booked 4,982 shipping days, TCE $11,412/day; dry bulk demand seasonally soft but demand consistent.
• 2025 capital allocation focused on targeted investments in logistics operations, fleet renewal, debt reduction; balanced return-focused approach.
• Anticipates improvement in dry bulk market later in 2025 as market bounces.

• Proposed tariffs and new port entry fees in the U.S. could introduce near-term volatility in market rates and drive structural shifts in global shipping and dry bulk landscapes.

Q: On your partial fixtures for the first quarter, rates are bad but you've distanced them. What contributed to the 40% boost?

A: Took tough cargoes, dirty cargoes, went into ICE waters, places others avoid due to risks/costs; excellent operating platform and ship managers add value.

Q: How quickly can new vessels be rolled to Pangaea chartering platform?

A: Made progress, already doing voyages in new trade; hope market bounces for better margins.

Q: Port services profitability, any factors?

A: More dry bulk voyages, new port in Aransas, Tampa terminal construction; growth expected in 2025, especially in second half.

Q: How soon can new vessels from year-end acquisition be integrated?

A: Made great progress, already doing voyages in new trade; margins shrunk in tough market, but hope market bounces.

Q: Capital allocation for fleet renewal and debt reduction?

A: Will sell older ships at 20 years, use proceeds opportunistically; not over-leveraged, wait for market drop to buy ships.

Q: G&A per day and total dollar for first quarter?

A: G&A per day relatively consistent, incremental G&A of ~$1-2 million full year, impacted by chartered-in ships count.