Höegh Autoliners (HAUTO) Q2 2024 earnings summary

Executive summary

• EBITDA and net profit after tax 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 Q2, following a $109 million payout in May 2024.

• Delivered the world's largest and most environmentally friendly car carrier, Höegh Aurora, ahead of schedule, and secured NOK 255 million in Enova funding for four Aurora Class vessels.

• Sale of Höegh Kobe for $59 million and purchase of Höegh Jacksonville for $43.2 million optimized fleet composition.

• Continued strong market demand, with vessels running at full capacity and high utilization.

Financial highlights

• Q2 2024 revenue was $341 million, up from $328 million in Q1, with EBITDA margin improving to 51%.

• Net profit after tax was $174 million, boosted by a $38 million tax income from deferred tax reversal.

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

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

• Equity ratio increased to 65%, with book value of equity up by $65 million in Q2.

Outlook and guidance

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

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

• Rate environment is stable, with a focus on securing longer-term contracts over spot market exposure.

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