Jinhui Shipping and Transportation (JIN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $41.2 million, up 81% year-over-year, with net profit at $9 million; H1 2024 revenue totaled $69.1 million and net profit $11.2 million, reflecting a strong dry bulk market recovery and higher chartering revenue.

• Basic EPS was $0.081 for Q2 and $0.103 for H1 2024.

• Chartering revenue surged 81% year-over-year in Q2, driven by robust freight rates and increased fleet utilization.

• No interim dividend declared for Q2 2024.

Financial highlights

• Q2 2024 EBITDA was $21 million; H1 2024 EBITDA was $34 million.

• Average TCE for Q2 2024 was $15,407 per day, up 52% year-over-year; Panamax TCE $17,702, Ultramax/Supramax $15,110.

• Shipping-related expenses increased by $5.4 million due to more chartered-in vessels.

• Net gain on financial assets was $1.7 million; $3.5 million settlement income from a legal dispute contributed to other operating income.

• Finance costs rose to $1.4 million in Q2, mainly from lease liabilities.

Outlook and guidance

• Management is cautiously optimistic, citing low new vessel supply, steady demand, and strong second-hand vessel values.

• Freight market expected to remain robust for the rest of 2024, with positive tonne mile effects and balanced supply-demand.

• Focus remains on fleet renewal, opportunistic vessel acquisitions, and maintaining a strong financial position.

• Will consider selling older ships if market conditions are favorable.