We are committed to ensuring that the investment community and our other stakeholders are provided relevant information about Pacific Basin on a regular basis, so that they have a comprehensive picture of our business, our performance and our prospects with which to assess the value of the Company.
In 2014, we received 13 Investor Relations and Corporate Governance awards. Our 2013 Annual Report was ranked 15th globally by e.com (report watch). Our Online Annual Report received its first recognition with a Silver Award from the League of American Communications Professionals’ 2013 Vision Awards Annual Report Competition.
We proactively engage with a broad range of institutional and retail investors as well as media and other interest groups.COMMUNICATION CHANNELS
– We believe that the transparency stimulated by active stakeholder engagement builds recognition of our brand and ultimately enhances shareholder value. We facilitate engagement through the following channels:
· Financial Reporting
- Annual and Interim Reports
- Online Annual Report
- Voluntary quarterly trading updates
- Press releases on business activities
· Shareholder Meetings And Hotlines
- Group and one-on-one meetings
- Shareholder hotline and e-mail:
Tel: +852 2233 7000
· Vessel Tours
Ship visits for analysts, investors, press and guests are organised during vessel port calls or at ship naming ceremonies.
· Investor Perception Studies
We conduct an annual consultation of investors and analysts for views on our group strategy, executive management, Annual Report and our corporate communications, investor relations and CSR programmes by way of telephone and online surveys
· Social Media Communications
Company news, photos and video clips, and events are published through social media sites
· Company Website – www.pacificbasin.com
Our corporate website is considered our primary communication medium covering the entire range of Pacific Basin’s activities. English, Chinese (Traditional and Simplified) and Japanese versions of the site are available covering:
- Profiles of Group’s business
- Fleet profile
- Board and senior management biographical data
- Corporate Governance, Risk Management and CSR
- Board Committee’s Terms of Reference
- Financial information and excel downloads
- Press kits
- Career opportunities
ROADSHOWS –Roadshows are conducted every quarter following earnings results announcements and trading updates. In 2014, we met investors in 13 cities in North America, Europe and Asia-Pacific.
INVESTOR MEETINGS – In 2014, we met 691 (2013: 558) shareholders and investors
COMMUNICATIONS WITH SELL-SIDE ANALYSTS – We encourage active analyst coverage to help investors evaluate the Company and its opportunities and challenges. Analysts’ briefings, meetings and conference calls are arranged with management from time to time, usually after results announcements. A significant number of key brokers publish reports on the Company.
Following the Annual Results announcement, we talked to the investor community sharing our published information and helped to enhance investors’ understanding of our business model and the factors driving the valuation of the Company.
We held our 2014 Analyst Day in May at our Hong Kong headquarters. In an open dialogue between analysts and management, we shared our views on the industry, important accounting considerations, and reviewed Company developments described in the 2013 Annual Report and 2014 first quarter trading update. We invited our Chief Operating Officer and Head of Asset Management to share their views on the dry bulk market.
KPIs measuring Investor Relations PerformanceInvestor Engagement – Our share capital is held by a diverse range of institutional, private and corporate investors, so we consider it important to make ourselves accessible to a wide spectrum of shareholders and members of the investment community to enhance their understanding of our business. The number of investor contacts during a year is the key measure of our engagement with investors.
Sell-Side Analyst Engagement – Analyst coverage (as measured by the number of active research reports covering Pacific Basin) in the trailing six month period is a key measure of our profile in the shipping sector.
Investor Perception Studies are conducted annually to gauge feedback on of our Annual Report, Investor Relations programme, corporate governance and group strategy.
As we found in 2013, investors still consider the quality of our management team, valuation of our stock, and the investment opportunity in the Handysize and Handymax sectors to be the most compelling reasons to invest in Pacific Basin.
Number of Investors We Meet
Feedback extracted from the 2014 Investor Perception Study
Compelling Factors for investing in Pacific Basin
Share and Convertible Bond Information
As at 31 December 2014, the Shares and Convertible Bonds of the Company were as follows:
- 1,936,577,119 ordinary shares in issue, each with a par value of US$0.10
- US$210 million of 1.75% coupon Convertible Bonds due 2016
- US$124 million of 1.875% coupon Convertible Bonds due 2018
Our Share Price Performance
vs Hang Seng Index in 2014
Convertible Bonds Price
Performance in 2014
Total Shareholders’ Return
Net Profit and Dividend
Payout Ratio since 2005
Our dividend policy is to pay out at least 50% of our annual attributable profit (excluding disposal gains).
As at 31 December 2014, Nasdaq OMX was able to analyse the ownership of about 99.2% of the Company’s share capital. Institutional investors still accounted for the largest portion of the Company’s shareholder base, owning nearly 1.2 billion shares or 63.6% of our share capital.
We had 1,457 registered shareholders as at 31 December 2014. The actual number of investors interested in our shares is likely to be greater, as some of their shares are held through nominees, investment funds, custodians, etc.. Each custodian or nominee or broker is considered as a single shareholder as below.
|% of Issued|
Our bondholders comprise a range of institutional investors including portfolio fund managers, fixed income, mutual and equal fund holders, as well as private investors.
No distinction between institutional investors and retail investors
We listen carefully to the views and feedback we receive from all investors. More than 66% of our shareholders are institutional investors, while 17% are private or retail investors who hold our shares through brokers and custodians. A separate Q&A and dialogue with our Board of Directors is arranged at our Annual General Meeting.
Key concerns raised by investors
In 2014, issues and major concerns about the Company included:
- the outlook for the dry bulk sector (demand side in particular)
- future capex plan and loan repayment profile
- cost of Handysize and Handymax fleet and chartered-in costs
- the challenging outlook for our towage business
- any further impairment in the towage business