EXMAR (EXM) Q2 2024 earnings summary

Executive summary

• Consolidated profit for H1 2024 reached USD 69.5 million, up from USD 21.0 million in H1 2023, driven by a gain on the sale of Bexco NV and improved segment performance.

• Achieved full employment on infrastructure assets and improved shipping performance due to firmer market conditions.

• Completed divestment of Bexco NV and advanced fleet renewal with sales and newbuild confirmations.

• Engineering affiliate signed a major contract with BP for the OPTI design in the US Gulf of Mexico.

Financial highlights

• Revenue: USD 194.1 million (H1 2024) vs. USD 200.2 million (H1 2023); proportionate revenue was USD 237.4 million, down from USD 273.7 million.

• EBITDA: USD 67.8 million (H1 2024) vs. USD 30.4 million (H1 2023); Adjusted EBITDA: USD 48.2 million (H1 2024) vs. USD 30.4 million (H1 2023); proportionate EBITDA: USD 104.3 million vs. USD 63.5 million.

• Operating result (EBIT): USD 50.1 million (H1 2024) vs. USD 9.6 million (H1 2023); proportionate EBIT: USD 70.6 million vs. USD 28.9 million.

• Net income: USD 69.5 million (H1 2024) vs. USD 21.0 million (H1 2023).

• Basic EPS: USD 1.21 (H1 2024) vs. USD 0.37 (H1 2023).

Outlook and guidance

• Shipping segment expects stable freight markets for the remainder of 2024, with 95% coverage for LPG/NH3 shipping; MGC fleet is 100% employed for 2024 and 63% for 2025, pressurized fleet is 92% and 30% employed for 2024 and 2025, respectively.

• Freight rates for pressurized vessels expected to remain strong due to limited orderbook and aging fleet.

• Infrastructure segment anticipates performance testing of TANGO FLNG in Q4 2024; new FLNG and FSRU projects in development.

• Continued focus on core business, operational efficiency, and new floating LNG projects after divesting Bexco.