Höegh Autoliners (HAUTO) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered adjusted EBITDA of $178 million and net profit of $193 million, both up sequentially, supported by vessel sales and robust contract renewals.

• Gross rate per CBM increased 5% quarter-over-quarter to $101.5, despite a 2.7% drop in transported volume.

• First Aurora Class vessel delivered in August, enhancing fleet efficiency, with another operational and two more expected by year-end.

• Proposed dividend of $245 million to be paid in December 2024, following a $127 million dividend paid in August.

• Announced planned organizational changes, including CFO transition and increased executive focus on the Manila office.

Financial highlights

• Revenue increased to $349 million in Q3, up from $341 million in Q2, driven by higher contract rates despite a 2.8% volume decline.

• EBITDA margin remained strong at around 50-51%.

• Net profit before tax reached a record $196 million, including $52 million in gains from vessel sales.

• Liquidity reserve at quarter-end was $551 million, with $344 million in cash.

• Net interest-bearing debt decreased to $255 million, with an undrawn credit facility of $208 million.

Outlook and guidance

• Market expected to remain strong for the rest of 2024, with Q4 EBITDA expected to align with recent run rates.

• Contract coverage at 75%, targeting 80% in 2024.

• Additional capacity from new Aurora Class vessels expected in Q4.

• Geopolitical and macroeconomic challenges persist but are not expected to impact Q4 results.

• Continued focus on securing longer-term contracts at strong rates.