Stena (S) Q2 2024 earnings summary

Executive summary

• Revenue from operations rose to SEK 27,006 million for YTD Q2 2024, up SEK 590 million year-over-year, with growth in all segments except Shipping.

• EBITDA increased to SEK 7,441 million, a rise of SEK 982 million compared to the same period last year, while operational EBITDA declined to SEK 6,166 million from SEK 6,356 million.

• Net gain on sale of assets/vessels was SEK 1,221 million, significantly higher than last year, driven by LNG and other vessel divestments.

• Income from operations reached SEK 3,603 million, up SEK 1,085 million year-over-year.

• EBT improved to SEK 2,028 million from SEK 892 million, reflecting strong operational and asset sale performance.

Financial highlights

• Total revenues for YTD Q2 2024 were SEK 28,281 million, up SEK 1,764 million year-over-year.

• Direct operating expenses rose by SEK 523 million to SEK 17,552 million, mainly due to higher costs in Ferry, Drilling, and New Businesses.

• Cash flow from operating activities was SEK 3,122 million, down from SEK 4,737 million in the prior year.

• Available liquidity as of June 30, 2024, stood at SEK 18.1 billion, with 51% in cash.

• Depreciation increased marginally due to a restatement, impacting income from operations.

Outlook and guidance

• Committed capex for newbuildings totals SEK 8.1 billion, with SEK 1.8 billion due in 2024 and major deliveries through 2027, primarily in RoPax and RoRo segments.

• Management expects current operating performance and available funds to be sufficient for debt service, capex, and working capital.

• Stena RoRo is positioned for future growth with five newbuildings to be delivered by 2027.