Steamships Trading Company (SST) H2 2024 earnings summary

Executive summary

• Revenue grew 9.3% year-over-year to K717.4 million, with 11.1% top line growth in H2 2024, despite challenging trading conditions and delayed resource projects.

• Net profit attributable to shareholders fell 21.2% to K45.8 million, impacted by significant items including insurance proceeds, ERP costs, and property disposals.

• Underlying profit attributable to shareholders dropped 36.5% to K31.9 million, reflecting higher depreciation and interest expenses.

• Net operating cash flow increased 29.6% to K134.3 million, while year-end cash balance was K3.9 million.

• Total dividend for the year is 70 toea per share, down from 95 toea per share in 2023.

Financial highlights

• Sales revenue: K717.4 million (up 9.3% year-over-year).

• Net profit attributable to shareholders: K45.8 million (down 21.2% year-over-year).

• Basic & diluted EPS: 147.8 toea (down from 187.5 toea in 2023).

• Depreciation: K113.5 million (up from K104.5 million in 2023).

• Capital expenditure: K231.1 million (up from K222.8 million in 2023).

• Final dividend proposed: 30 toea per share; total dividend: 70 toea per share.

Outlook and guidance

• Optimism for resource project activity from H2 2025, with cautious capital commitment until final investment decisions.

• Expectation of improved economic demand as major projects progress.