OceanPact Serviços Marítimos (OPCT3) Q2 2024 earnings summary

Executive summary

• Net revenue reached R$378 million in 2Q24, up 9% year-over-year, with adjusted EBITDA at R$136 million and a 36% margin, reflecting higher daily rates and strong Services segment performance.

• Significant contract extensions for RSV vessels resulted in a 33% increase in daily rates, and backlog stood at R$2.8 billion, supported by new contracts and renewals.

• Net loss of R$4.7 million in 2Q24 was mainly due to deferred income tax and exchange rate impacts.

• Sustainability initiatives included a new R&D project for mangrove restoration in partnership with Qatar Energy.

• Reviewed financial statements for the three and six months ended June 30, 2024, with no exceptions noted by independent auditors.

Financial highlights

• Consolidated net revenue (excluding Reach) was R$378 million in 2Q24, up 9% year-over-year, but down 9% sequentially; 6M24 revenue was R$873.6 million, up from R$734.1 million in 6M23.

• Adjusted EBITDA reached R$136 million in 2Q24, up 36% year-over-year, with a margin of 36%; 6M24 EBITDA was R$287.3 million.

• Service segment net revenue rose 29% year-over-year to R$148 million, with a 42% EBITDA margin.

• Vessel segment net revenue (excluding partnerships) was R$231 million, with a 32% EBITDA margin.

• Net income for 2Q24 was a loss of R$4.7 million, compared to a profit of R$72.2 million in 2Q23.

Outlook and guidance

• Vessel utilization rate is projected at 81% for 2024, consistent with previous guidance.

• Management remains optimistic about vessel and service demand, citing limited new vessel supply and strong contract selectivity.

• Service segment expected to see a modest third quarter due to vessel docking, but a strong rebound is anticipated in the fourth quarter.

• No major supply-side changes expected in Brazil or globally; focus remains on cost management and contract quality.

• Management affirms business continuity based on market prospects and positive working capital, despite lower net income.