Pacific Shipping (02343) subsidiary plans to acquire four newly built small portable dry bulk carriers for US$119 million

According to Zhitong Finance App, Pacific Shipping (02343) announced that on December 23, 2025, the Company's indirect wholly-owned subsidiary (i.e. buyer 1Jade Passage SG Pte. Ltd., buyer 2 Jersey City SG Pte. Ltd., buyer 3 Johor Straits SG Pte. Ltd. and buyer 4Jurong Channel SG Pte. Ltd.) entered into four cargo ship purchase agreements with the seller Jiangmen Nanyang Shipbuilding Engineering Co., Ltd. with roughly the same terms to acquire four newly built compact and handy dry bulk carriers (cargo ship 1, cargo ship 2, cargo ship 3, and cargo ship 4, collectively referred to as such cargo ships). The total cost involved was approximately US$119 million.

It is anticipated that the cost of such vessels will be paid using the Group's cash reserves and/or bank loans prior to delivery. The seller expected the expected delivery dates for cargo ship 1 and cargo ship 2 to be in the first quarter of 2028, while the expected delivery dates for cargo ship 3 and ship 4 would be in the second quarter of 2028.

The acquisition will enable the addition of four newly constructed small, portable dry bulk carriers to the company's fleet. These cargo ships use the latest energy-efficient, open hatch and loadable log design. Compared with the earlier standard compact design, these cargo ships have stronger cargo carrying capacity and flexibility, making them more room for triangular trade, thereby improving the equivalent revenue performance of fixed-term leasing contracts. These new cargo ship designs are also superior in terms of fuel efficiency and can replace single-fuel carriers of earlier designs. In the current market environment, the specifications, contract time, and agreement cost equal to the delivery of a newly built cargo ship in 2028 are all very attractive.

One of the company's strategies focuses on improving scale efficiency and operational efficiency through strict fleet renewal and growth to meet strong customer needs, comply with increasingly strict fuel efficiency regulations, enhance market performance advantages, and create long-term shareholder value. The Company is well aware of the impact of cyclicality, seasonality and other factors of dry bulk freight on freight rent and asset value, and attaches importance to the importance of maintaining cost competitiveness. Therefore, it continues to seize appropriate opportunities to acquire younger or newly built cargo ships with modern and efficient designs, and also sells older, smaller and less efficient cargo ships.

In the current market environment, the specifications, contract time, and agreement cost equal to the delivery of a newly built cargo ship in 2028 are all very attractive.

Pacific Shipping is familiar with the seller and has a good reputation with all major shipowners. With these acquisitions, the company has re-established cooperation channels with Chinese and Japanese shipbuilders to build new cargo ships.

In this transaction, the company chose a single-fuel cargo ship design driven by traditional power, mainly due to the lack of verification of the dual-fuel design of small portable dry bulk carriers, and the International Maritime Organization's postponement of the adoption of its net zero emission framework and global measures to promote the transformation of the shipping industry to green ships and fuels in October 2025.

These new cargo ship designs are superior to earlier designs in terms of fuel efficiency and environmental performance. They can replace single-fuel cargo ships designed earlier, and help support the company's goal of continuously improving fuel efficiency.