Qatar Gas Transport Company (QGTS) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached QAR 829.4 million, up 7% year-over-year, with EPS at QAR 0.15.

• Total revenue for the first six months was QAR 2.29 billion, remaining stable compared to the prior year.

• Interim cash dividend of QAR 388 million (QAR 0.07 per share) proposed for H1 2024, pending approval.

• Major fleet expansion underway, with 40 new LNG vessels in the newbuild program, including 9 Q-Max vessels announced in Q2 2024.

• Maintains a modern fleet of 69 LNG carriers, 4 LPG carriers, 1 FSRU, with 36 LNG and 4 LPG/ammonia newbuilds on order.

Financial highlights

• EBITDA for H1 2024 was QAR 1.83 billion, down 0.6% year-over-year due to reduced shipyard activity.

• Depreciation and amortization fell 8.9%, mainly due to a one-off accounting treatment in 2023.

• Finance expense decreased by 4.1% to QAR 595 million, driven by scheduled debt repayments.

• Vessel operating expenses rose 2.9% to QAR 408 million, in line with inflation.

• EPS for H1 2024 was QAR 0.15; annualized ROE at 13.5%.

Outlook and guidance

• Shipyard segment expected to improve in H2 2024 due to increased dry dock activity.

• Confident in continued profit growth and stable financial performance for the remainder of 2024.

• No significant increase in CapEx expected in H2 2024; most installments already covered.

• LNG fleet to reach 105 vessels and LPG fleet to 8 upon delivery of newbuilds.

• Enhanced earnings visibility with 887 years of firm contracts across wholly-owned vessels.