Pangaea Logistics : PANL Q2 2023 Earnings Presentation

2Q23

Earnings Call Presentation

Safe Harbor

2Q23 Earnings Call Presentation

This presentation may include certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Pangaea's and managements' current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of Pangaea's business. These risks, uncertainties and contingencies include: business conditions; weather and natural disasters; changing interpretations of GAAP; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments; requirements or changes adversely affecting the business in which Pangaea is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of logistics and shipping services; general economic conditions; geopolitical events and regulatory changes; and other factors set forth in Pangaea's filings with the Securities and Exchange Commission and the filings of its predecessors. The information set forth herein should be read in light of such risks. Further, investors should keep in mind that certain of Pangaea's financial results are unaudited and do not conform to SEC Regulation S-X and as a result such information may fluctuate materially depending on many factors. Accordingly, Pangaea's financial results in any particular period may not be indicative of future results. Pangaea is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

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2Q23 Performance Summary

Strong operating results highlight flexible, value-oriented business model

Superior TCE rate driven by long-term COAs and cargo-focused strategy resulted in TCE rates exceeding the benchmark average Baltic Panamax and Supramax indices by 49%+ in 2Q23.

Amid a 60% Y-o-Y decrease in market rates caused by normalizing supply conditions, delivered consistent operating cash flow generation of $2.0 million during 2Q23 and Adjusted EBITDA of $15.9 million compared to record quarterly profitability in 2Q22.

Completed the purchase of the Bulk Prudence, a 61,00 dwt Ultramax vessel for $26.7 million of cash. The purchase takes the total number of owned vessels to 25.

Expect to continue to deliver premium market returns and consistent cash flow generation through the second half of the year, underpinned seasonal ice class demand in Q3. Through August 8, 2023, 3,500 days performed at an average of $16,700/day.

Continue to execute on key capital allocation priorities, maintaining cash dividend of $0.10 per common share, paid on September 15th.

Completed the strategic acquisition of additional Port and Terminal operations in key U.S markets for $7.2 million. Continue to focus on opportunistic expansion of terminal and logistics business.

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2Q23 Performance Summary

2Q23

Adjusted

EBITDA

$s in Millions

2Q22

2Q23

TCE Rate

$s per Shipping Day

2Q22

4

$16

2Q23

Adjusted EPS

$s per Share

$44

2Q22

$15,5582Q23

Operating

Cash Flow

$s in Millions

$27,139	2Q22

$0.10

$0.64

$2.0

$37.2

Outperforming Industry Benchmark

Our TCE has exceeded the market by an average of 30% on a trailing 5-year basis

Cargo Focused

Business Model

Consistently

Delivers Above-

Market

Performance

• Current 3Q23 projected TCE rate of $16,700, a 96% premium to the market average through the quarter*.
• Our niche, higher- margin trades remain a key area of differentiation

TCE Rate ($s per Shipping Day)

PANL Total Shipping Days		PANL TCE Rate		Market Average Rate**

$35,000

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

$-

6,000

5,000

4,000

3,000

2,000

1,000

-

Days

• Q3 23 estimated TCE performance based on shipping days performed through August 8, 2023 **Average of the published Panamax and Supramax indices, net of commission

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