Ocean Yield (OCY) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong financial results with adjusted EBITDA of USD 96.6 million and net profit of USD 24.3 million, reflecting robust operational performance and a solid balance sheet.

• Entered the LNG segment through the acquisition of a 34% economic interest in France LNG Shipping, adding 12 LNG carriers on long-term charters and enhancing diversification.

• All 74 vessels in the fleet are employed on long-term charters, supporting stable cash flows and high earnings visibility.

• Portfolio optimization included vessel sales and exercised purchase options, such as Bulk Seoul, Höegh Jacksonville, Poliegos, and Navigator Aurora.

• Available liquidity at quarter end was USD 246 million, rising to USD 277 million post-quarter end due to refinancing activities.

Financial highlights

• Adjusted EBITDA reached USD 96.6 million, with reported EBITDA at USD 58.5 million for Q2 2024.

• Net profit was USD 24.3 million, and total revenues were USD 63.7 million, slightly up from Q1.

• EBITDA backlog pro forma for LNG investment at USD 4.7 billion, with an average charter tenor of 10.1 years.

• Equity ratio improved to 34.9% at quarter end, with total equity of USD 772 million.

• No cash dividend declared for Q2 2024 as funds are allocated to new investments.

Outlook and guidance

• The LNG platform is expected to serve as a base for future accretive growth and increased diversification.

• CapEx for new LNG vessels is spread over several years, with no immediate financing needs before closing.

• Financial position remains robust with strong access to financing and ongoing investments in modern vessels with long-term charters.