Atlas (ATCO) investor relations material

Executive summary

• 2023 revenue rose 7.3% to $1,820.7M, while net earnings fell to $403.0M from $622.3M, reflecting higher interest expense and a smaller derivative gain.

• Vessel leasing growth from fleet additions offset lower mobile power revenue as utilization declined; adjusted EBITDA was $1,200.7M across segments.

• Growth plans center on completing contracted vessel deliveries and measured investment, supported by $18.2B in gross contracted cash flows and diversified financing sources.

Financial highlights

• Revenue was $1,820.7M in 2023 versus $1,697.4M in 2022; operating earnings were $782.3M versus $751.4M.

• Net earnings were $403.0M versus $622.3M; net earnings before tax were $411.3M versus $624.7M, while interest expense rose to $375.6M from $235.4M.

• Operating cash flow increased to $1,023.8M from $856.3M; investing used $2,941.3M and financing provided $2,014.4M.

• Cash and cash equivalents were $385.3M at year-end, up from $280.0M; total assets were $13,713.0M versus $11,302.4M.

Outlook and guidance

• 40 contracted newbuilds, including 36 containerships and four PCTCs, were scheduled for delivery through 2027; total purchase price was estimated at $3.8B.

• Growth priorities include completing newbuild deliveries, selectively pursuing risk-adjusted opportunities, capital recycling, maintaining liquidity and managing leverage toward long-term targets.

• 2024 liquidity was considered sufficient for near-term requirements: $765.3M, excluding $3.3B of committed but undrawn newbuild financing, at December 31, 2023.