Mar 31, 2023

Pangaea Q1 2023 Earnings Report

Pangaea reported results for the quarter ended March 31, 2023.

Key Takeaways

Pangaea Logistics Solutions Ltd. reported a net income of $3.5 million, or $0.08 per diluted share, and adjusted net income of $5.1 million, or $0.11 per diluted share, on total revenue of $113.7 million for the quarter ended March 31, 2023. The company's TCE rate was $14,372 per day, exceeding the average Baltic Panamax and Supramax indices by approximately 48%.

Net income attributable to Pangaea was $3.5 million, or $0.08 per diluted share.

Adjusted net income attributable to Pangaea was $5.1 million, or $0.11 per diluted share.

Operating cash flow was $11.6 million, a decrease of 64% year-over-year.

Cash and cash equivalents were $129.1 million, an increase of $59.2 million year-over-year.

Total Revenue
$114M
Previous year: $192M
-40.7%
EPS
$0.11
Previous year: $0.35
-68.6%
Gross Profit
$13.4M
Previous year: $28.3M
-52.8%
Cash and Equivalents
$129M
Previous year: $69.9M
+84.7%
Total Assets
$730M
Previous year: $731M
-0.1%

Pangaea

Pangaea

Pangaea Revenue by Segment

Forward Guidance

Pangaea anticipates a further strengthening in market rates during the second quarter of 2023, given a combination of improved seasonal demand, strengthening activity in Asia and tightness in global shipping capacity.

Positive Outlook

  • Improved seasonal demand
  • Strengthening activity in Asia
  • Tightness in global shipping capacity
  • Premium contract revenue positioning business for sequential growth
  • Potential for further synergies with ocean freight offering

Challenges Ahead

  • Macroeconomic uncertainty
  • Seasonal demand weakness negatively impacted market rates
  • Lower market rates driving decline in Adjusted EBITDA margin
  • Decline in total shipping days
  • Potential disruption of shipping routes due to accidents or political events

Revenue & Expenses

Visualization of income flow from segment revenue to net income