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Pangaea Logistics Solutions Ltd. Reports 2024 Financial Results

Pangaea Logistics Solutions Ltd., trading on NASDAQ under the ticker PANL, has announced its financial performance for the fourth quarter and the entire year ended December 31, 2024. The company, known globally for its maritime logistics solutions, demonstrated a resilient performance despite the prevailing market challenges.

Fourth Quarter Highlights

For the period ending December 31, 2024, Pangaea reported a net income of $8.4 million, translating to $0.18 per diluted share. Adjusted net income for the same period reached $7.6 million or $0.16 per diluted share. Operating cash flow was reported at $19.3 million, while the Adjusted EBITDA stood at $23.2 million. Notably, Pangaea's Time Charter Equivalent (TCE) rates earned recorded at $15,942 per day were particularly impressive, outperforming the average Baltic Panamax and Supramax indices by 48%.

The company successfully completed the acquisition of fifteen handy-size dry bulk vessels from Strategic Shipping Inc. (SSI) as previously announced, marking a significant expansion in its operational capabilities.

Annual Financial Performance

For the full year 2024, Pangaea reported a total net income of $28.9 million, equivalent to $0.63 per diluted share. The adjusted net income was slightly higher at $29.9 million or $0.65 per diluted share, backed by total revenues of $536.5 million. The Adjusted EBITDA for the year was $83.0 million, representing an adjusted EBITDA margin of 15.6%.

Pangaea achieved an average TCE rate of $16,485 per day, with a notable increase of 4.0% year-over-year. The shipping days increased 4.2% to 17,407 days in comparison to the previous year, showcasing growing operational efficiency.

Financial Position

At the end of 2024, Pangaea maintained a strong cash position with $86.8 million available in cash and cash equivalents. The total debt, inclusive of financing obligations and lease liabilities, was reported at $401.8 million. The significant increase in debt was attributed to the acquisition of the new vessels, which involved issuing around 18.06 million shares of common stock to SSI and incorporating $100 million in financing agreements related to the vessels.

The company distributed $18.7 million in cash dividends during 2024, with an emphasis on sustained returns of capital, reflecting its strategic approach to maintaining shareholder value.

Management's Insight

Mark Filanowski, CEO of Pangaea Logistics Solutions, expressed confidence in the company's performance, noting that the strong base of long-term contracts and a premium-rate model enabled the company to achieve significant growth despite the downturn in the broader dry bulk market. He highlighted the importance of the company's cargo-focused strategy and market share, which facilitates TCE rate outperformance against the backdrop of market fluctuations.

He also pointed out that the successful merger with SSI’s fleet of handy-sized dry bulk vessels is anticipated to enhance the company’s operational scale and logistics capabilities. With these advancements, Pangaea plans to improve its terminal services and stevedoring operations, bolstering its service offerings across strategic locations like Texas and Louisiana.

Looking Ahead

As the company moves into 2025, it acknowledges the unsettled global demand growth and potential policy-induced uncertainties within the dry bulk market. Despite these challenges, Pangaea is poised to adapt to market conditions while continuing its focus on expanding logistics operations, optimizing its fleet, and maintaining a solid capital return strategy.

In conclusion, Pangaea Logistics Solutions Ltd. showcases a robust performance in 2024, with effective management strategies that position the company for sustained growth in the complex and evolving maritime logistics landscape.