Pangaea Logistics Solutions Ltd. (PANL) Announces Financial Earnings Results For The Three Months And Year Ended December 31, 2024

Pangaea Logistics Solutions, Ltd. (PANL) today announced its financial results for the latest quarter, showcasing a robust performance that exceeded market expectations. The company reported an impressive earnings per share (EPS) of $8,435,392, significantly surpassing the estimated EPS of $0.049263. Additionally, Pangaea Logistics achieved a quarterly revenue of $147.2 million, which represents a substantial increase of $23 million over the projected revenue of $124.2 million. This strong financial performance highlights Pangaea’s ability to effectively navigate market challenges and capitalize on growth opportunities.

Key Highlights:

• Pangaea Logistics Solutions reported a net income of $8.4 million for Q4 2024 and $28.9 million for the full year.
• The company achieved a Time Charter Equivalent (TCE) rate of $15,942 per day in Q4, exceeding the Baltic Panamax and Supramax indices by 48%.
• Pangaea completed the acquisition of fifteen handy-size dry bulk vessels from Strategic Shipping Inc. (SSI).
• The company expanded its fleet to 41 owned vessels and increased its shipping days by 17% in Q4 2024.
• Pangaea opened new terminal servicing operations in Texas and Louisiana and expanded services in Tampa, Florida.
• CEO Mark Filanowski highlighted the company’s strong performance and strategic growth through acquisitions and expansion of services.

Summary:

Pangaea Logistics Solutions Ltd. reported strong financial results for the fourth quarter and full year of 2024, with a net income of $8.4 million for Q4 and $28.9 million for the year. The company achieved a Time Charter Equivalent (TCE) rate of $15,942 per day in the fourth quarter, significantly outperforming the Baltic Panamax and Supramax indices by 48%. This performance was supported by Pangaea’s long-term contracts of affreightment, specialized fleet, and cargo-focused strategy. The acquisition of fifteen handy-size dry bulk vessels from Strategic Shipping Inc. (SSI) was completed, expanding Pangaea’s fleet to 41 owned vessels and enhancing its ability to offer comprehensive maritime logistics solutions.

CEO Mark Filanowski emphasized the company’s strategic growth and resilience in a challenging market environment. He noted that the acquisition of SSI’s fleet allows Pangaea to expand into the handy-sized segment and grow its stevedoring and terminal services offerings. The company also opened new terminal servicing operations in Texas and Louisiana and expanded its services in Tampa, Florida. Looking ahead to 2025, Filanowski acknowledged the uncertainty in the dry-bulk market but expressed confidence in Pangaea’s ability to drive commercial growth, improve economies of scale, and achieve above-market TCE rates. The company remains focused on selective investments in its fleet and logistics operations while maintaining a stable cash dividend.

Pangaea Logistics Solutions, Ltd. (PANL) has experienced a challenging year, with its stock price plummeting by 37.74% over the past year. The decline is consistent across shorter time frames, with a 20.12% drop over six months and a 6.64% decrease over the last three months, indicating persistent downward pressure. Despite the negative price trend, the company maintains a relatively modest price-to-earnings ratio of 10.46, suggesting that the stock might be undervalued compared to its earnings. However, the fundamental metrics paint a mixed picture; while the free cash flow has surged with a staggering 2587.81% two-year CAGR, both earnings per share and revenue have contracted significantly, with two-year CAGRs of -45.53% and -19.60%, respectively. The net profit margin stands at a modest 4.54%, and the return on invested capital is 7.89%, indicating some efficiency in generating returns from its investments. These figures suggest that while PANL is facing significant headwinds, particularly in revenue and earnings growth, its ability to generate cash flow could provide a cushion as it navigates these turbulent times.

Pangaea Logistics Solutions, Ltd., together with its subsidiaries, provides seaborne dry bulk logistics and transportation services to industrial customers worldwide. The company offers various dry bulk cargoes, such as grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. Its ocean logistics services comprise cargo loading, cargo discharge, vessel chartering, voyage planning, and technical vessel management. As of March 16, 2022, the company owned and operated a fleet of 25 vessels. Pangaea Logistics Solutions, Ltd. was founded in 1996 and is based in Newport, Rhode Island.