Höegh Autoliners (HAUTO) Q2 2024 earnings summary

Executive summary

• EBITDA and net profit reached $174 million in Q2 2024, up 51% from Q1, supported by extraordinary items and a 6% increase in transported volume.

• Declared a quarterly dividend of $127 million for August, following a $109 million payout in May.

• Delivered the first Aurora Class vessel, the world's largest and most environmentally friendly car carrier, with more new builds in the pipeline.

• Secured NOK 255 million in Enova funding for zero-carbon Aurora Class vessels, supporting decarbonization strategy.

• Continued strong contract portfolio growth, prioritizing long-term contracts and signing a 5-year deal with a major international car producer.

Financial highlights

• Q2 2024 revenue was $341 million, up from $328 million in Q1, with EBITDA at $174 million and net profit after tax at $174 million, boosted by a $38 million tax income.

• Gross rate per CBM was $96.3, down 2% quarter-over-quarter, while net rate remained high at $83.2 per CBM.

• EBITDA margin improved to 51% in Q2, reflecting operational efficiency.

• Cash balance at quarter-end was $195 million, with $204 million in undrawn credit facilities.

• Net interest-bearing debt at $354 million; equity ratio increased to 65%.

Outlook and guidance

• Market supply remains tight; new vessel deliveries are not expected to significantly impact capacity in 2024.

• Q3 2024 is expected to be strong and broadly in line with Q2, though monthly volumes and rates may be volatile.

• Rate environment is stable, with contract renewals at attractive levels and increased contract duration.

• Macro events and geopolitics create demand-side uncertainty, but no major impact on cargo access is anticipated.