NEWPORT – Pangaea Logistics Solutions Ltd. reported a profit of $5.2 million in the second quarter, or 9 cents per diluted share, in a Securities and Exchange Commission filing this week.
The profit for the quarter was less than earnings one year prior, when the company reported a $6.9 million profit, or 13 cents per diluted share.
Company revenue was $83.3 million in the second quarter, a 14% decline year over year. The majority of the revenue for the quarter was voyage revenue ($77.4 million, a decline from $81.8 million one year prior), while the remainder was charter revenue ($5.9 million, a decline from $15 million one year prior).
The company, which coordinates and executes the transportation of dry bulk cargoes to a range of industrial customers, said it paid its first-ever dividend at 3.5 cents per common share.
The company announced in July it had entered into an agreement to purchase a vessel on the secondhand market for $14.1 million. The ship will be delivered in September and will bring Pangaea’s operating fleet to 22 vessels.
“Our second-quarter results continued to outperform a turbulent market thanks to our active differentiated business model,” said Ed Coll, CEO of Pangaea Logistics Solutions, in a statement. “We reported positive net income once again, declared and payed our first dividend, and continued to expand our platform by investing in our niche trades through the ordering of two new ice-class post-panamax vessels and the purchase of three secondhand vessels.”
The company reported $25.6 million in investment spending related to the purchase of vessels and vessel improvements over the first six months of the year.
Cash and cash equivalents totaled $43.7 million at the end of the second quarter. Total assets were $459.2 million at that time.
Current liabilities at the end of the second quarter totaled $64.6 million while net long-term debt totaled $102.4 million.
“Our markets have demonstrated extraordinary resiliency since hitting lows early this year, but we remain cautious of the risks of uncertain times in international trading and commerce,” said Coll. “Our committed cargo relationships help mitigate this type of risk, as does our flexible charter-in strategy that keeps our chartered-in tonnage in sync with our cargo commitments.”
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
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