MODEC (6269) Q2 2024 earnings summary

Executive summary

• Revenue for 1H 2024 reached $1,877.7MM, up 18% year-over-year, driven by FPSO project progress.

• Net income hit $124MM, a 421% increase year-over-year, surpassing full-year guidance and marking a record high.

• Adjusted EBITDA rose 35% to $210MM compared to 1H 2023.

• Operating profit surged 278% year-over-year to $186.7MM, reflecting steady project execution.

• Major operational milestones include first oil at Sangomar FPSO and a new FEED contract for Shell Gato do Mato FPSO.

Financial highlights

• Gross profit increased to $197.7MM from $85.9MM in 1H 2023.

• Charter profits rose to $123MM, up from $81MM in 1H 2023.

• Total assets grew to $4,005.6MM as of June 2024, with equity attributable to owners at $1,104.9MM.

• Cash and cash equivalents increased by $130MM to $1,143MM since December 2023.

• Net cash provided by operating activities was $375.7MM, a significant improvement from a $40.5MM outflow in the prior year.

Outlook and guidance

• FY2024 revenue forecast revised upward to $4,300MM (+$400MM), and net income to $200MM (+$80MM).

• Operating profit is projected at $290MM, a 50% increase year-over-year.

• Basic earnings per share forecast is $2.93 for the full year.

• Interim dividend increased from JPY10 to JPY30 per share, with year-end dividend maintained at JPY30.

• Dividend forecast revised to ¥60 per share for 2024.