Jinhui Shipping and Transportation (JIN) Q4 2024 earnings summary

Executive summary

• Full year 2024 revenue reached $159 million, EBITDA $74 million, and net profit $24 million, reversing a prior year net loss of $55 million, aided by a $6.5 million non-cash impairment reversal.

• Q4 2024 revenue was $44 million, EBITDA $19 million, and net profit $5.2 million, including a $6.5 million non-cash reversal of impairment loss.

• Basic EPS for Q4 was $0.047 and for the full year $0.22; a final dividend of $0.03 per share is proposed.

• Significant performance improvement was driven by dry bulk demand growth, limited vessel supply, and fleet expansion.

• Settlement of major litigation with Parakou resulted in $23.8 million received, with further payments in early 2025.

Financial highlights

• Q4 2024 revenue rose 80% year-over-year; full-year revenue increased 94% to $159 million.

• Average TCE for Q4 2024 was $15,567, up 46% from Q4 2023; full year TCE was $14,741, up 63% from 2023.

• Net gain on financial assets at fair value through P&L was $4.9 million.

• Shipping-related expenses increased to $84.4 million, mainly due to higher hire payments for chartered-in vessels.

• Daily running cost for owned vessels in 2024 was $5,606, a slight increase from $5,569 in 2023.

Outlook and guidance

• Industry supply-demand fundamentals remain favorable, but management is cautious due to global uncertainties, interest rate volatility, and geopolitical risks.

• 100% of Capesize and Panamax vessel days covered for Q1 2025 at average daily rates of $24,750 and $13,528, respectively.

• Management intends to maintain low gearing and be conservative with CapEx and windfall cash, monitoring market conditions closely.

• Freight demand may decline if the Russia-Ukraine war ends, but risk is managed by balancing owned and chartered-in tonnage.

• Focus remains on fleet renewal and maintaining financial strength.