Creating Value for Shareholders
We seek to provide the investor community and other stakeholders with relevant regular news about Pacific Basin so it has comprehensive information about our business, strategy and performance with which to assess the value of the Group
In May 2018, we held our Pacific Basin Analyst Day in Dalian, China, combining senior management presentations with a shipyard visit to introduce 13 sell-side analysts to a routine dry-docking of a Pacific Basin vessel. In June, we repeated the same for our Investors at an Investor Day exclusively organised by one of our key relationship banks.
We completed a website revamp in April 2018 to better connect with our customers and other stakeholders and tie-in with our integrated reporting. The new website is responsive to tablet and mobile devices, allowing easier navigation and access to our latest information from anywhere and at any time. Social media continues to be an important communications channel for the Group. The development of different social media platforms facilitates communications between the Company and investors, and enhances our corporate brand and provides updated dry bulk market information to our global stakeholders.
During the year, we received fifteen awards for investor relations and corporate governance including Best IR Company, Best IR by CEO (Mats Berglund), and Best IR by CFO (Peter Schulz) in our region and sector. Additionally, we were shortlisted among the IR Magazine Global Top 50 in the “Best in sector: Industrials” category.
We are grateful for all these votes of confidence cast by the investment community in recognition of our commitment to transparent and responsible business practices and accountability to our shareholders.
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 several channels:
- Annual and Interim Reports
- Online Annual Report
- Quarterly trading updates
- Presentations and press releases on business activities
Shareholder Meetings and Hotlines
- Group and one-on-one meetings
- Shareholder hotline and e-mail
tel: +852 2233 7000
Investor Perception Studies
We conducted an annual consultation of investors and analysts for feedback on our group strategy, executive management team, reporting and our corporate communications, investor relations and CSR programmes by way of telephone and online surveys
Ship visits for analysts, investors, bankers, press and guests are organised during vessel port calls, dry-dockings or at ship naming ceremonies
Company Website – www.pacificbasin.com
Our corporate website is considered a key marketing medium which comprehensively describes Pacific Basin’s activities and competences. English & Chinese (traditional and simplified Chinese) versions of the site are available, covering:
- Group profile
- Fleet profile
- Strategic and business models
- Service highlights for customers
- Board and senior management biographical data
- Board Committees’ Terms of Reference
- Corporate Governance, Risk Management and CSR
- Financial reports and company news
- Financial information excel downloads
- Press kits
Facebook, Twitter, Linkedln, YouTube and WeChat
Company news, video clips, photos and events news are published through our social media sites
Roadshows – Roadshows are conducted following results announcements and trading updates. In 2018, we met investors in 15 cities in North America, Europe, Australia and Asia-Pacific.
Investor Meetings – In 2018, we met 1,088 (2017: 1,014) shareholders and investors.
Communications with Sell-side Analysts – Pacific Basin encourages active analyst coverage to help investors evaluate the Group and its opportunities and challenges. Analyst Days, meetings and conference calls are arranged with management from time to time, especially after results announcements. A significant number of key brokers publish reports on the Group. During the period, two new brokers initiated reporting on Pacific Basin.
KPIs Measuring Investor Relations Performance
Investor 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 investor community to enhance their understanding of our business. The number of investor contacts during a year is a key measure of our engagement with investors.
Investor Perception Studies – We gauge feedback on our Annual Report, management team, investor relations programme, corporate governance and group strategy through an annual written, online and verbal investor study.
Our 2018 Investor Perception Study showed that 95% of respondents consider Pacific Basin management to be good at articulating strategy, and all respondents agreed that we effectively communicate management’s plans to address the Company’s strategic challenges.
Key Investor Concerns in 2018
- Impact of US and Chinese tariffs on dry bulk trade and on the Company’s performance
- Impact of new environmental regulations on shipping and our strategy to address them
- Demand and supply balance
- Freight rate seasonality and sustainability
- Sensitivity and earnings cover guidance
- Scope for further cost savings
Feedback extracted from 2018 Investor Perception Study:
Setting and following through on Pacific Basin’s long-term strategy
Effectively communicating management’s plans to address strategic challenges
Share and Convertible Bond Information
The Company’s Shares and Convertible Bonds in issue at 31 December 2018:
- 4,533,167,114 ordinary shares, each with a par value of US$0.01
- US$125 million of 3.25% coupon Convertible Bonds due 2021
Our stock is a constituent member of the Hang Seng sub index series and the MSCI Index series, and it is eligible for Southbound Trading under the Shenzhen-Hong Kong Stock Connect programme. As at 31 December 2018, around 1% of our stock was held via the Connect channel.
Shareholder Return and Dividend
We return value to our shareholders by way of both appreciation in share price and dividends. In 2018, our total shareholders’ return was -10%.
Our dividend policy is to pay out at least 50% of our annual attributable profit (excluding disposal gains).
Total Shareholders’ Return
As at 31 December 2018, Nasdaq 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 3.24 billion shares or 71% of our share capital.
We identified 2,462 shareholders as at 31 December 2018. The actual number of investors interested in our shares is likely to be greater, as some of the shares are held through nominees, investment funds, custodians, etc. Each custodian or nominee or broker is considered as a single shareholder as below.
Our bondholders comprise a range of institutional investors including portfolio fund managers, fixed income, mutual and equal fund holders, as well as private investors.
We Welcome Both Institutional Investors and Retail Investors
We listen carefully to the views and feedback we receive from all investors. About 71% of our shareholders are institutional investors, while 15% 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 for the benefit of any investors who choose to attend.
Live webcast and audio calls of our results announcements are streamed on our website, enabling overseas investors, media and the public to listen in to our presentations and ask questions. An archive of calls and transcripts is available on our website.