Hunter Group (HUNT) Q2 2024 earnings summary

Executive summary

• Reported a net loss of USD 0.36m in Q2 2024, mainly due to a net time charter (TC) loss, partially offset by an unrealized gain on TC contracts.

• Achieved 100% vessel utilization for 182 days in the quarter; average spot-linked TC-out rate was USD 43,270/d, while average fixed TC-in rate was USD 51,750/d.

• Awarded a grant of up to NOK 100 million from Enova for potential construction of two next-generation zero-emission CSOVs.

• No subsequent events reported after the quarter.

Financial highlights

• Net TC result (loss) of USD (1.54m); unrealized gain on TC position of USD 1.52m.

• Total operating expenses were USD 0.54m, with USD 0.37m as run-rate G&A costs.

• Operating loss of USD 0.56m and net loss of USD 0.36m for Q2 2024.

• Cash and working capital at quarter-end stood at USD 19.16m.

• Q2 2024 revenues impacted by negative TC margin of USD (8,480)/d.

Outlook and guidance

• VLCC market expected to improve in Q3 and winter months due to historical seasonality.

• OPEC+ scheduled to unwind 2.2 mbd voluntary cuts from September 2024, potentially increasing VLCC demand.

• Chinese oil consumption forecasted to rise by 1.6 mbd in H2 2024, supporting tanker demand.

• Oil demand growth expected to outpace supply, leading to inventory draws and lower forward coverage.

• VLCC supply outlook remains supportive, with low fleet growth and significant scrapping expected.