MODEC (6269) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of $4,186MM in FY2024, up 17% year-over-year, driven by FPSO project progress and improved charter business profitability.

• Net income reached $220MM, a 128% increase from FY2023 and 110% of revised guidance.

• Adjusted EBITDA rose 50% to $328MM, and operating profit increased 67% to $323MM.

• Major milestones included new FEED contracts, first oil at Sangomar FPSO, and a secondary share offering.

• Order backlog declined 23% to $12.94B due to project progress and lack of new large-scale orders.

Financial highlights

• Revenue increased by $611MM year-over-year; net income up $123MM; adjusted EBITDA up $109MM.

• Gross profit rose to $393MM from $250MM; share of profit from equity-method investments up 20% to $154MM.

• EPCI and O&M gross profits reached $344MM, a $136MM increase from FY2023.

• Charter profits totaled $237MM, with five new FPSOs entering charter phase since 2021.

• Total assets grew to $4,496MM, equity at $1,180MM, and net debt at -$738MM.

Outlook and guidance

• FY2025 revenue forecasted at $3,700MM, lower due to EPCI project timing, but net income expected to rise to $270MM.

• Operating income and earnings before tax projected to increase to $410MM and $420MM, respectively.

• FY2024 year-end dividend to increase from JPY30 to JPY50 per share; FY2025 annual dividend guidance set at JPY120 per share.

• FY2026 targets revised upward: net income $300MM, ROE 20%, adjusted EBITDA $300–450MM.

• Basic EPS forecasted at $3.95 for 2025.