Pangaea Logistics Solutions Ltd.

Previous wording

The Baltic Dry Index (“BDI”), a broader market measure of the cost to transport drybulk commodities by sea, offers a market view into global supply demand trends and is considered the standard benchmark for drybulk cargo pricing. The BDIaveraged 1,118 for the first quarter of 2025, down approximately 39%, compared to an average of 1,824 for the same quarter of 2024. The average published market rates for Panamax, Supramax, and Handysize vessels, reflecting the composition of the company's fleet, also decreased approximately 37%, from an average of $13,671 in the first quarter of 2024 to $8,548 in the same period of 2025.

Current wording

The Baltic Dry Index (“BDI”), a broader market measure of the cost to transport drybulk commodities by sea, offers a market view into global supply demand trends and is considered the standard benchmark for drybulk cargo pricing. The BDIaveraged 1,467 for the second quarter of 2025, down approximately 21%, compared to an average of 1,853 for the same quarter of 2024. The average published market rates for Panamax, Supramax, and Handysize vessels, reflecting the composition of the company's fleet, also decreased approximately 31%, from an average of $15,104 in the second quarter of 2024 to $10,347 in the same period of 2025.

Previous wording

In addition to broader market pressures, our operating results for the first quarter of 2025 also reflect the impact of fleet expansion. At December 30, 2024, the Company acquired 15 vessels to its owned fleet, representing a 58% increase in total vessel count. As a result, available owned shipping days increased by 1,275 days in the current quarter compared to the same period in 2024, which should be considered when comparing period-over-period performance metrics.

Current wording

In addition to broader market pressures, our operating results for the second quarter of 2025 also reflect the impact of fleet expansion. At December 30, 2024, the Company acquired 15 vessels to its owned fleet, representing a 58% increase in total vessel count. As a result, available owned shipping days increased by 1,365 days in the current quarter compared to the same period in 2024, which should be considered when comparing period-over-period performance metrics.

Previous wording

For the three months ended March 31, 2025, the Company's TCE rates were down 36% to $11,390 from $17,697 for the three months ended March 31, 2024. The Company's achieved TCE rates declined from the previous quarter as the overall dry bulk market rates weakened for the three months ended March 31, 2025. The Company's achieved TCE rate for the three months ended March 31, 2025 outperformed the average of the Baltic panamax, supramax, and handysize market indexes and exceeded the average market rates by approximately 33% due to its long-term contracts of affreightment, ("COAs"), its specialized fleet and its cargo-focused strategy.

Current wording

For the three months ended June 30, 2025, the Company's TCE rates were down 25% to $12,108 from $16,223 for the three months ended June 30, 2024. The Company's achieved TCE rates declined from the previous quarter as overall dry bulk market rates weakened for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The Company's achieved TCE rate for the three months ended June 30, 2025 outperformed the average of the Baltic panamax, supramax, and handysize market indexes by approximately 17% due to its long-term contracts of affreightment, ("COAs"), its specialized fleet and its cargo-focused strategy.

Previous wording

•Net loss attributable to Pangaea Logistics Solutions Ltd. was approximately $2.0 million for three months ended March 31, 2025 as compared to net income of approximately $11.7 million for the same period of 2024.

Current wording

•Net loss attributable to Pangaea Logistics Solutions Ltd. was approximately $2.7 million for three months ended June 30, 2025 as compared to net income of approximately $3.7 million for the same period of 2024.

Previous wording

•Net loss per share was $0.03 for three months ended March 31, 2025, as compared to diluted net income per share of $0.25 for the same period in 2024.

Current wording

•Net loss per share was $0.04 for three months ended June 30, 2025, as compared to diluted net income per share of $0.08 for the same period in 2024.

Previous wording

•Pangaea's TCE rates were $11,390 for the three months ended March 31, 2025 and $17,697 for the three months ended March 31, 2024.

Current wording

•Pangaea's TCE rates were $12,108 for the three months ended June 30, 2025 and $16,223 for the three months ended June 30, 2024.

Previous wording

•At the end of the quarter, Pangaea had $63.9 million in cash, and cash equivalents.

Current wording

•At the end of the quarter, Pangaea had $59.3 million in cash, and cash equivalents.

Previous wording

Pangaea’s revenues are derived predominately from voyage, time charters, and terminal and stevedore revenue. Total revenue for the three months ended March 31, 2025, was $122.8 million, compared to $104.7 million for the same period in 2024, an 17% increase. The increase in revenues was primarily driven by a 41% rise in total shipping days, reaching 5,210 days for the three months ended March 31, 2025, compared to 3,685 days for the same period in 2024. However, this was partially offset by a decrease in the market rates for freight and time charters in the first quarter of 2025.

Current wording

Pangaea’s revenues are derived predominately from voyage, time charters, and terminal and stevedore revenue. Total revenue for the three months ended June 30, 2025, was $156.7 million, compared to $131.5 million for the same period in 2024, a 19% increase. The increase in revenues was primarily driven by a 51% rise in total shipping days, reaching 6,222 days for the three months ended June 30, 2025, compared to 4,117 days for the same period in 2024. However, this was partially offset by a decrease in the market rates for freight and time charters in the second quarter of 2025.

Previous wording

Voyage Revenues: Voyage revenues increased by 26% for the three months ended March 31, 2025 to $109.7 million compared to $87.3 million for the same period in 2024. The increase in voyage revenues was primarily due to a 48% increase in voyage days from 2,830 in the three months ended March 31, 2024 to 4,196 for the three months ended March 31, 2025. The increase is also attributable to the increase in the Company's fleet size as a result of the acquisition of 15 vessels in 2024 from Strategic Shipping, Inc. This was offset by a decline in market freight rates as discussed above.

Current wording

Voyage Revenues: Voyage revenues increased by 18% for the three months ended June 30, 2025 to $146.3 million compared to $124.1 million for the same period in 2024. The increase in voyage revenues was primarily due to a 43% increase in voyage days from 3,910 in the three months ended June 30, 2024 to 5,575 for the three months ended June 30, 2025. The increase is also attributable to the increase in the Company's fleet size as a result of the acquisition of 15 vessels in December 2024 from Strategic Shipping, Inc. This was offset by a decline in market freight rates as discussed above.

Previous wording

Charter Revenues: Charter revenues decreased to $10.0 million from $15.0 million, or 34%, for the three months ended March 31, 2025 compared to the same period in 2024. The decrease in charter revenues was due to lower charter hire rates, with the panamax, supramax and handysize vessel index declining 37% from $13,671 per day for three months ended March 31, 2024 to $8,548 per day, over the same period of 2025. However, time charter days increased by 19% year-over-year, from 855 days to 1,014 days. Our flexible chartering strategy enables the Company to selectively release excess ship days, if any, into the market under time charter arrangements rather than voyage days.

Current wording

Charter Revenues: Charter revenues increased by 78%, or $3.1 million, to $6.9 million for the three months ended June 30, 2025, compared to $3.8 million for the same period in 2024. The increase was primarily driven by a 213% increase in time charter days, which rose from 207 to 647 days. This was partially offset by a 31% decline in average market charter rates, with the panamax, supramax, and handysize index decreasing from $15,104 per day to $10,347 per day year-over-year. The Company’s flexible chartering strategy enables the Company to selectively release excess ship days, if any, into the market under time charter arrangements rather than voyage days.

Previous wording

Terminal & Stevedore Revenues: Terminal & Stevedore revenues increased by 30% for the three months ended March 31, 2025 to $3.1 million compared to $2.4 million for the same period in 2024. The increase in revenues was primarily due to the timing of certain significant customer contracts, which did not contribute to revenues in the first quarter of 2024. This timing shift of contracts that contribute materially to port revenues resulted in an increase for the current period.

Current wording

Terminal & Stevedore Revenues: Terminal & Stevedore revenues remained stable at $3.6 million for the three months ended June 30, 2025, compared to the same period in 2024.

Previous wording

Charter Hire Expenses: Charter hire expenses for the three months ended March 31, 2025 were $17.6 million, compared to $27.1 million for the same period in 2024, a 35% decrease. The decrease in charter hire expenses was predominantly driven by lower market rates for charter-in vessels. Specifically, the average published market rates for Supramax, Panamax and Handysize vessels decreased approximately 37% declining from an average of $13,671 in the first quarter of 2024 to $8,548 in the same period of 2025. Chartered-in days increased 14% from 1,535 days in the three months ended March 31, 2024 to 1,745 days for the three months ended March 31, 2025. Charter hire expenses on a per day basis were $10,108 for the three months ended March 31, 2025 and $17,683 for the same period in 2024. The Company's flexible charter-in strategy allows it to supplement its owned fleet with short term chartered-in tonnage at prevailing market prices, when needed, to meet cargo demand.

Current wording

Charter Hire Expenses: Charter hire expenses for the three months ended June 30, 2025 were $31.4 million, compared to $32.7 million for the same period in 2024, a 4% decrease. The decrease in charter hire expenses was predominantly driven by lower market rates for charter-in vessels. Specifically, the average published market rates for Supramax, Panamax and Handysize vessels decreased approximately 31% declining from an average of $15,104 in the second quarter of 2024 to $10,347 in the same period of 2025. Chartered-in days increased 35% from 1,971 days in the three months ended June 30, 2024 to 2,660 days for the three months ended June 30, 2025. Charter hire expenses on a per day basis were $11,813 for the three months ended June 30, 2025 and $16,583 for the same period in 2024. The Company's flexible charter-in strategy allows it to supplement its owned fleet with short term chartered-in tonnage at prevailing market prices, when needed, to meet cargo demand.

Previous wording

Vessel Operating Expenses: Vessel operating expenses for the three months ended March 31, 2025 were $22.2 million, compared to $12.7 million for the same period in 2024, an increase of approximately 75%. The ownership days increased as a result of the acquisition of vessels in the prior year, with 3,690 days for the three months ended March 31, 2025 compared to 2,184 days in 2024, reflecting an increase of 61%. Excluding technical management fees, vessel operating expenses on a per day basis were $5,528 for the three months ended March 31, 2025, up from $5,300 for the three months ended March 31, 2024. Technical management fees amounted to approximately $1.8 million and $1.1 million for the three months ended March 31, 2025 and 2024, respectively. The increase in technical management fees reflects the expansion of the owned fleet.

Current wording

Vessel Operating Expenses: Vessel operating expenses for the three months ended June 30, 2025 were $23.4 million, compared to $14.7 million for the same period in 2024, an increase of approximately 59%. The ownership days increased as a result of the acquisition of vessels in the prior year, with 3,822 days for the three months ended June 30, 2025 compared to 2,184 days in 2024, reflecting an increase of 66%. Excluding technical management fees, vessel operating expenses on a per day basis were $5,876 for the three months ended June 30, 2025,down from $6,246 for the three months ended June 30, 2024. Technical management fees were approximately $0.9 million in the second quarter of 2025, down from $1.1 million in 2024, primarily due to the consolidation of Seamar Management, partially offset by the increase in the number of owned vessels.

Previous wording

Terminal & Stevedore Expenses: Terminal & Stevedore expenses increased by 23% for the three months ended March 31, 2025 to $2.6 million compared to $2.1 million for the same period in 2024. The increase was in line with increased terminal revenue.

Current wording

Terminal & Stevedore Expenses: Terminal & Stevedore expenses increased by 7% to $5.2 million for the six months ended June 30, 2025, compared to $4.9 million for the same period in 2024. This increase was in line with the higher terminal and stevedore revenue during the period.

Previous wording

The Company concluded that no triggering event had occurred during the first quarter of 2025 and 2024, which would require impairment testing.

Current wording

The Company concluded that no triggering event had occurred during the first half 2025 and 2024, which would require impairment testing.

Previous wording

As of March 31, 2025, and December 31, 2024, the Company’s working capital was $66.9 million and $82.9 million, respectively.

Current wording

As of June 30, 2025, and December 31, 2024, the Company’s working capital was $58.0 million and $82.9 million, respectively.

Previous wording

During the three months ending March 31, 2025, there was a net cash outflow of $4.36 million from operating activities, contrasting with the net cash inflow of $9.0 million recorded for the same period in 2024. The reduction in cash flow from operating activities, totaling $13.36 million when compared to the previous year, was mainly due to a net loss for the three months ending March 31, 2025. This loss was adjusted for non-cash elements, coupled with a diminished cash generation from alterations in operating assets and liabilities.

Current wording

During the six months ended June 30, 2025, net cash provided by operating activities was $10.0 million, compared to $18.0 million for the same period in 2024. The $7.9 million decrease in cash flows from operating activities was primarily attributable to a net loss for the six months ended June 30, 2025, as adjusted for non-cash items, and a decrease in cash generated from changes in operating assets and liabilities.

Previous wording

Net cash used in investing activities during the three months ended March 31, 2025, was $0.5 million compared to $0.2 million for the same period in 2024.

Current wording

Net cash used in investing activities during the six months ended months ended June 30, 2025, was $2.4 million, compared to $9.1 million for the same period in 2024. The $6.73 million decrease was primarily attributable to the advance of $8.5 million advance made in the prior year for the purchase of a vessel.

Previous wording

Net cash used in financing activities decreased to $11.96 million for the three months ended March 31, 2025, compared to $18.04 million for the same period in 2024. The $6.08 million decrease was primarily due to the following:

Current wording

Net cash used in financing activities decreased to $29.9 million for the six months ended June 30, 2025, compared to $35.2 million for the same period in 2024, representing a decrease of $5.3 million. This decrease was primarily due to the following:

Previous wording

The Company’s capital expenditures relate to the purchase of vessels and interests in vessels, capital improvements to its vessels which are expected to enhance the revenue earning capabilities and safety of these vessels, as well as port & terminal operations. As of March 31, 2025, the Company owned three Panamax, two Ultramax Ice Class 1C, two Ultramax, nine Supramax and four Post-Panamax Ice Class 1A drybulk vessels. The Company owns two-thirds of its consolidated subsidiary Nordic Bulk Holding Company Ltd. (“NBHC”) which owns a fleet of six Panamax Ice Class 1A drybulk vessels. In addition, the Company owns fifteen Handysize vessels acquired through the merger with Strategic Shipping Inc., completed on December 30, 2024. The Company also holds a 50% equity interest in the owner of a deck barge and operates port and terminal facilities in Fort Lauderdale, Florida, and Baltimore, Maryland.

Current wording

The Company’s capital expenditures relate to the purchase of vessels and interests in vessels, capital improvements to its vessels which are expected to enhance the revenue earning capabilities and safety of these vessels, as well as port & terminal operations. As of June 30, 2025, the Company owned three Panamax, two Ultramax Ice Class 1C, two Ultramax, nine Supramax andfour Post-Panamax Ice Class 1A drybulk vessels. The Company owns two-thirds of its consolidated subsidiary Nordic Bulk Holding Company Ltd. (“NBHC”) which owns a fleet ofsix Panamax Ice Class 1A drybulk vessels. In addition, the Company owns fifteen Handysize vessels acquired through the merger with Strategic Shipping Inc., completed on December 30, 2024. The Company also holds a 50% equity interest in the owner of a deck barge and operates port and terminal facilities in Fort Lauderdale, Florida, and Baltimore, Maryland.

Previous wording

In addition to vessel acquisitions that the Company may undertake in future periods, its other major capital expenditures include funding its program of regularly scheduled drydockings necessary to make improvements to its vessels, as well as to comply with international shipping standards and environmental laws and regulations. Funding expenses associated with these requirements will be met with cash from operations. The Company anticipates that this process of recertification will require it to reposition these vessels from a discharge port to shipyard facilities, which will reduce the Company’s available days and operating days during that period. The Company capitalized drydocking costs totaling approximately $6.4 million and $1.3 million the three months ended March 31, 2025 and 2024, respectively. The Company expensed drydocking costs of $79,940 and $37,080, respectively, in the three months ended March 31, 2025 and 2024.

Current wording

In addition to vessel acquisitions that the Company may undertake in future periods, its other major capital expenditures include funding its program of regularly scheduled drydockings necessary to make improvements to its vessels, as well as to comply with international shipping standards and environmental laws and regulations. Funding expenses associated with these requirements will be met with cash from operations. The Company anticipates that this process of recertification will require it to reposition these vessels from a discharge port to shipyard facilities, which will reduce the Company’s available days and operating days during that period. The Company capitalized drydocking costs totaling approximately $11.9 million and $3.2 million the six months ended June 30, 2025 and 2024, respectively. The Company expensed drydocking costs of $170,000 and $141,000, respectively, in the six months ended months ended June 30, 2025 and 2024.