Our strong environmental, social and governance (ESG) performance reflects the strength and scalability of our unique platform and the disciplined execution of strategies to continually reduce our environmental impact, keep our crews healthy and safe, and maintain robust controls and accountability to stakeholders. We have the people, values, assets, business model, strategies and financial health that together create durable competitive advantages and position us well for a sustainable future.

Striving for Sustainability Fit for a Global Business

2025 was a challenging year for global shipping, shaped by geopolitical turbulence, unexpected regulatory developments and an overall weaker freight market than the year before. Despite the headwinds, Pacific Basin navigated with agility and resilience, guided by our commitments to protect our competitiveness, create shareholder value, and do the right things for the environment, our people and other stakeholders.

Although financial results were lower due to weaker markets, they remained respectable. We preserved a strong financial position and made solid progress on our strategic priorities. Our environmental, social and governance (ESG) performance reflects disciplined execution of initiatives to reduce emissions, safeguard crew wellbeing and uphold robust governance. Supported by our people, culture, assets, strategy and financial strength, we remain well positioned for sustainable growth – a key priority for 2026 and beyond.

Our approach to sustainability is anchored in business performance, our vision to be the trusted partner of choice, and our culture of doing the right thing. Priority areas – such as crew security and safety, compliance with evolving energy efficiency and emissions regulations, inclusive and supportive teams, governance and risk management, and other material ESG topics – are embedded in our daily decision-making.

External recognition again validated our efforts, performance and strengths that continue to differentiate Pacific Basin in a highly competitive global market. Most of our ESG ratings improved in 2025, with a top 8% EcoVadis ranking and our other ESG ratings placing us among the top global industry leaders.

We again received multiple awards across sustainability, environment, social impact, governance, safety and port state control performance. Notably, we won the ESG Shipping Awards International Gold Award in the ESG Leader category and Bulk Ship Operator of the Year at the IBJ Awards.

ESG excellence will always be a work in progress, as we challenge ourselves for continuous improvement, guided by a pragmatic approach and our culture of doing the right things.

Responsibility to Our People

Our colleagues at sea and ashore are fundamental to our success, so we invest in cultivating supportive and well-supported, diverse, competent, engaged and high-performing teams. We uphold high standards of safety and wellbeing, while equipping our people with the skills to excel in an evolving industry.

Our first priority remains the security, safety, wellbeing and engagement of our colleagues.

Security risks – including drug smuggling, militant activity and piracy – continue to require heightened vigilance. Consistent with our increased ambition around safety and security, we established a dedicated Security Team in early 2025 to strengthen oversight, preparedness and real‑time support for our ships and people worldwide, and the benefits of that investment were immediately tangible during the year.

In 2025, our fleet recorded 11 lost-time injuries over 19.2 million working hours. This corresponds to a lost-time injury frequency (LTIF) of 0.57, which is low by industry standards and among our best ever LTIF results, but we aspire to eliminate personal injuries entirely across our fleet. Our marine safety, training and crewing teams – in collaboration with our seafarers – will continue to identify opportunities to further strengthen our already well-established safety culture and risk awareness on board.

Connectivity and mental health at sea remain key focus areas: Low Earth Orbit (LEO) services now provide high speed, unlimited data internet across the fleet; our Wellness at Sea programme and updated manual support mental resilience; masters receive cross-cultural leadership training; crewing teams receive training to identify early signs of distress; and all our seafarers undergo psychometric screening before joining vessels. Our programme of crew wellbeing initiatives serve to build mental strength and harmony onboard, reaffirming our commitment to creating a safe, inclusive and caring workplace for every member of our team.

Our shore-based colleagues represent 38 nationalities, and gender distribution is relatively well-balanced overall. However, diversity in senior roles and in some departments remains lower due to the demographics of candidates interested in shipping roles, but we are making progress in leveraging our strong employer brand to attract diverse talent and build high-performing teams. Women now represent 36% of our Board, and our directors comprise seven nationalities and diverse professional backgrounds. And, at sea, a gradually increasing number of our ships have crews of mixed nationalities and gender, as we seek to ensure that diversity is done sustainably and in the best interests of our business.

Staff engagement remains strong, evidenced by solid retention, collaborative performance and high scores in independent engagement surveys in 2025 – 86% overall for our crews at sea, and 79% overall for staff shore. The detailed survey findings have provided us with useful insights for further enhancing the career experience at Pacific Basin.

Efficiency, Optimisation and Decarbonisation

Our long-standing fuel and energy-efficiency programme continued in 2025, with more of our ships using super-low-friction hull coatings and reshaped propellers, and fitted with flow-altering ducts and vanes, RPM optimisation computers, more efficient fuel injection nozzles and water pumps.

Our proven platform harnesses our scale benefits and many other value drivers to achieve maximum fleet utilisation and, in turn, outperforming time charter equivalent (“TCE”) earnings and reduced fuel-consumption and carbon intensity of our activities.

Our investments in digitalisation and optimization in recent years led to several piloting and early adoption projects which evolved in 2025 into mature digital optimisation capabilities that we have scaled across our fleet. In a sector widely considered difficult to further optimise, we are embedding advanced technologies into everyday operations. Including our proprietary “digital twin” technology, this is delivering enhanced data availability and accuracy, improved insights and decision-making and, in turn, measurable improvements in efficiency, voyage economics, operational confidence and sustainability.

Next, we are upgrading our digital twin with AI-driven hull fouling prediction and introducing fleet performance digital visibility for real-time insights into compliance, maintenance and efficiency. We are also developing digital routing that integrates weather data into our commercial optimization algorithms.

Our Bunker team is transitioning into a Sustainable Energy Solutions (SES) team, as we no longer view fuel merely as a cost centre but as a strategic enabler of competitiveness, efficiency and emission performance. The team will secure priority access to conventional and green fuels and work closely with our optimisation efforts to unlock the full value of every voyage.

91% of our owned fleet achieved CII ratings of A to C in 2025, with the rest rated lower (while still in compliance) due prolonged port delays. Our owned fleet’s EEOI carbon intensity was 43% below our 2008 baseline, with expectations to halve it by 2030 on our pathway to net zero by around 2050.

In 2025, we completed another review of our decarbonisation strategy, aligning ambitions and targets with evolving global expectations.

Renewed Uncertainty about Decarbonisation Regulations

In April 2025, the International Maritime Organization (IMO) agreed on a Net-Zero Framework (NZF), featuring greenhouse-gas pricing and fuel-intensity measures to drive the shipping industry’s transitioning to green fuels. However, political divisions between member states led to an October 2025 agreement to adjourn a decision on NZF adoption by one year. We expect protracted renegotiations, and the timing and final shape of the NZF are unclear.

While we expect an NZF-type global mechanism will eventually be adopted and we remain committed to playing a leading part in our industry’s decarbonisation journey, we believe it is financially prudent and in the best interests of our shareholders to limit our investment in more expensive dual-fuel vessels until new regulatory commitments provide clearer support.

Meanwhile, we continue investing in energy-efficiency and fuel-saving technologies and measures, while positioning ourselves for priority access to alternative fuels in readiness for tightening and future new GHG reduction regulations. In June 2025, we signed an MOU with The Hong Kong and China Gas Company Limited (Towngas) to strengthen our access to green methanol marine fuel – an important step in our preparation for dual-fuel vessels to comply with global and regional greenhouse gas fuel intensity rules in future.

Our proactive approach positions us to navigate regulatory uncertainty and capture opportunities in the transition to green shipping.

Responsible Partnerships & Value Creation

Creating long‑term value at Pacific Basin also depends on strong, responsible partnerships across our value chain. By working closely with our communities of stakeholders, we seek to support resilient and sustainable dry bulk supply chains while delivering reliable, high‑quality service. Collaboration and innovation are a key part of our approach to promoting safety, integrity and transparency across our operations, supporting the most deserving causes in key communities that we rely on, and taking meaningful steps to reduce our energy needs and impact on the environment.

In practice, this includes collective action initiatives such as our participation in the Maritime Anti‑Corruption Network and TRACE, sustained support for the seafarer community, investment in education, internships and early‑career employment, and active engagement with government, industry bodies and other organisations. It also extends to collaboration with our financial partners, reflected in a new US$250 million sustainability‑linked revolving credit facility we secured in July 2025, which aligns access to capital with our ESG performance and reinforces stakeholder confidence in our long‑term strategy.

These partnerships all help to strengthen our business and reputation and enable us to contribute positively to society, tackle our industry’s main challenges, promote careers in shipping, and support the long‑term sustainability and resilience of global seaborne trade.

Responsible Business Fundamentals

Our culture of doing the right thing is grounded in strong corporate governance, ethical management and disciplined decision‑making, supported by a commitment to best‑in‑class risk management, transparency, reporting and corporate stewardship. These foundations are critical to maintaining stakeholder confidence and safeguarding the long‑term resilience and value of our business.

Effective governance underpins every aspect of how we operate and provides clarity, consistency and credibility in decision‑making, particularly in an increasingly complex and volatile global environment. Our Board benefits from a high level of independence and a broad mix of international experience, skills and perspectives, enabling robust oversight, constructive challenge and sound judgment in support of the Company’s long‑term strategy. Our nine board members comprise seven nationalities, and over three quarters are Independent Non-executive Directors (INEDs).

We continue to strengthen our approach to performance management to support disciplined execution, collaboration across the organization and value creation at the Group level. In 2025, we enhanced our remuneration framework by introducing performance‑linked variable remuneration designed to align leadership incentives more closely with the delivery of our strategy, long‑term interests and sustainability objectives. Reflecting the importance of sustainable value creation alongside financial performance, ESG metrics – including emissions reduction and safety performance – now form part of the executive performance scorecard, reinforcing accountability and long‑term alignment with shareholder expectations.

Management and a dedicated sustainability team are supported by a Sustainability Management Committee in coordinating and enhancing our approach to sustainable business practices, ensuring compliance with evolving ESG and regulatory requirements, and embedding more deliberate and consistent sustainability thinking into strategy and day‑to‑day operations. Together, these arrangements strengthen accountability, enhance risk awareness and capital discipline, and reinforce our confidence that Pacific Basin is well positioned to deliver resilient performance and sustainable long‑term value for shareholders and other stakeholders.

This disciplined approach extends to the way we structure, govern and locate our organization so that it remains robust, compliant and globally accessible in the face of evolving geopolitical and protectionist risks. As reported in our Third Quarter Trading Update, we took proactive steps to reduce the impact of new US special port fees on Chinese‑linked ships and reciprocal Chinese fees on US‑linked ships. We expanded our Singapore structure so that about half our owned fleet will be under Singaporean ownership and flag, we shifted ultimate strategic leadership and commercial decision‑making to Singapore while daily management continues across our global offices, and we adjusted our Board composition. These measures help protect our business and ensure Pacific Basin can continue serving global customers freely and competitively across all safe ports, including in China and the United States.

Looking to 2026, we have set clear strategic priorities centered on growth, efficiency and cost optimisation. These include pursuing disciplined fleet renewal and growth opportunities; protecting our cost competitiveness through productivity and optimisation initiatives; leveraging greater value from fuels and the energy transition; deepening voyage and fuel optimisation through advanced technologies; and further strengthening performance management to maximise value for customers and shareholders alike. Together, these priorities reflect a measured, value‑focused approach to growth that builds on our platform and supports long‑term sustainable returns.

Effective Platform for a Sustainable Business

Taken together, our people, culture, governance, assets, financial discipline and partnerships form a distinctive and hard‑to‑replicate platform that underpins Pacific Basin’s long‑term sustainability and value creation. This platform – built on scale, specialisation, operational excellence, data‑driven optimisation and a customer‑centric global operating model – enables us to perform consistently across cycles while managing risk and supporting the transition to a lower‑carbon future. Reinforced by strong governance, disciplined capital allocation and a clear set of strategic priorities, this platform gives us the confidence to navigate uncertainty, invest prudently and continue compounding value for our shareholders and wider stakeholders.

We are fortunate to have excellent and dedicated people across the Pacific Basin family both at sea and ashore who I thank sincerely for their professionalism, resilience and commitment. They are true ambassadors for Pacific Basin. I thank also our shareholders, customers and other stakeholders for their continued trust and support.