Sep 30, 2024

Pangaea Q3 2024 Earnings Report

Reported financial results for the quarter ended September 30, 2024.

Key Takeaways

Pangaea Logistics Solutions reported a net income of $5.1 million, or $0.11 per diluted share, and an adjusted net income of $11.1 million, or $0.24 per diluted share, on total revenue of $153.1 million for the third quarter of 2024. The company's TCE rates exceeded the average Baltic Panamax and Supramax indices by 19%.

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

Adjusted net income attributable to Pangaea was $11.1 million, or $0.24 per diluted share.

Operating cash flow was $28.5 million.

Time Charter Equivalent (TCE) rates earned by Pangaea was $16,324 per day, exceeding the average Baltic Panamax and Supramax indices by 19%.

Total Revenue
$153M
Previous year: $136M
+12.9%
EPS
$0.24
Previous year: $0.32
-25.0%
Time Charter Equivalent
$16.3K
Gross Profit
$21M
Previous year: $25.2M
-16.5%
Cash and Equivalents
$93.1M
Previous year: $87.4M
+6.5%
Free Cash Flow
-$20.1M
Previous year: $16.1M
-224.6%
Total Assets
$749M
Previous year: $729M
+2.8%

Pangaea

Pangaea

Pangaea Revenue by Segment

Forward Guidance

Pangaea expects to expand its logistics operations and deliver an expanded portfolio of services across a growing customer base.

Positive Outlook

  • Fleet expansion through merger with M. T. Maritime will increase owned fleet by more than 60% and drive meaningful annual EBITDA.
  • Acquisition of remaining interest in post-panamax ice class 1A joint venture solidifies position in niche market.
  • Purchase of two modern supramaxes supports base businesses.
  • Expectation to expand logistics operations at new and existing ports.
  • Asset-lite, cargo-centric model provides superior durability, cost efficiency and scalability.

Challenges Ahead

  • Market rates declined as the quarter progressed.
  • Decrease in Adjusted EBITDA due to higher voyage expenses.
  • Increase in charter hire costs.
  • Fluctuations in global dry bulk capacity and demand.
  • Reliance on shareholder approval for the MTM transaction.

Revenue & Expenses

Visualization of income flow from segment revenue to net income