These are our key strategic drivers and the main objectives we pursue to optimise opportunity and drive our performance, so as to deliver shareholder value and take us closer to achieving our vision
Strategic Drivers and Objectives
How we address our key drivers, providing a framework for sound business management to optimise opportunity and mitigate risk
Investment in our fleet
- Grow our dry bulk fleet through acquisitions in the current down-cycle creating a significant growth driver
- Secure long-term chartered-in Handysize and Handymax ships
- Ensure flexibility in our fleet composition (owned vs chartered ships)
- Secure dry bulk cargo cover
- Expand our towage fleet as harbour towage volumes and offshore projects dictate
- Maintain competitive daily vessel costs
- Maintain net borrowings and gearing below long-term targets
- Maintain significant cash reserves
Deepening our relationships
- Deliver highest achievable degree of customer satisfaction
- Maintain our reputation and stakeholder network
- Enhance our growing reputation in the towage market
Investment in our people
- Enhance staff skills and experience
- Develop talent and leadership
- Succession planning
- Promote employee engagement
Ensuring long-term sustainability of our business
- Improve safety and reliability
- Address governance and CSR responsibilities
- Enhance corporate profile and financial strength
- Assess and evolve our internal governance practices
- Engage in active communication with stakeholders
Key Risks
Principal risks that might derail our progress towards achieving our vision and impact shareholder value
Financial performance |
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Examples of risks faced by our divisions |
- Market Risk – Volatility in:
– freight or charter markets
– operating costs, interest rates and fuel prices
– foreign currency exchange rates
- Vessel Investment & Deployment Risk – Poor timing and choices of ship, fleet composition and vessel deployment
- Credit & Counterparty Risk – Default or breach of obligations by our counterparties
- Insurance Risk – Inadequate insurance covering maritime risks
- Liquidity Risk – Maintaining sufficient cash resources and ability to service debt and comply with key loan-to-value covenants
- Capital Management Risk – Adequacy of profit, operating cash and management of capital structure
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* Pacific Basin Dry Bulk – An inability to grow our long-term cargo book in tandem with our fleet would result in increased exposure to the more volatile spot freight market
* PB Towage – Market shifts, competitive threats and cost escalation prevalent in the Australasian towage segment could adversely impact financial performance
* PB RoRo – Reliance on a single counterparty for payment for our sold vessels
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Relationships & customer satisfaction |
- Customer Satisfaction & Reputation Risk – Damage to the trust and support of customers and suppliers
- Banking Relationships Risk – Deterioration of our relationships with banks and other debt providers
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* Pacific Basin Dry Bulk – Failure to maintain close relations with shipyards and shipowners may severely limit access to the best Handysize and Handymax vessels
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- Employee Engagement Risk – Failure to attract, engage, develop and retain talented, qualified and reliable shipping executives, seafarers and specialist staff
- Succession Risk – Inadequate succession planning resulting in disruption to our strategic momentum and the business
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* PB Towage – A tight and regulated labour market and substantial resource shortages in Australia make it difficult to attract skilled tug crew and quality shore staff
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Investor & stakeholder confidence |
- Corporate Governance Risk – Inadequate corporate governance structure resulting in unprofessional decision making and reduced stakeholder confidence in the Company
- Investor Relations Risk – Poor quality or inaccurate external communication of our business
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Safety, environment & reliability |
- Safety Risk – Inadequate safety, operational and training standards on our vessels and piracy threat
- Environmental Risk – Inadequate systems and initiatives to reduce our environmental impacts
- Vessels & Systems Risk – Failure to operate and utilise reliable, high-quality vessels, equipment and systems resulting in periods of vessel off-hire
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