Hoegh Autoliners publishes Q4 resultsComments Off on Hoegh Autoliners publishes Q4 results
“We are proud to wrap up 2022 with a very strong fourth quarter and increase dividends to shareholders to a new high level.”
“The strong financial results further strengthen Höegh Autoliners’ leading position in the sector. We continue to offer our customers the greenest transportation options, and according to the 2022 IMO standard, around 50% of our fleet received a CII score of A or B. Thank you to all our seafarers, onshore employees, partners, and customers for yet another strong and eventful quarter. As we continue sailing for sustainability, the future looks both bright and green for Höegh Autoliners”, says Andreas Enger, CEO of Höegh Autoliners
Höegh Autoliners ASA reported the strongest quarterly financial results ever for the last quarter of 2022 with Operating profit (EBITDA) of USD 156 million (up 37% Q-o-Q), net profit after tax of USD 118 million (up 28% Q-o-Q).
The volume development was flat while the net rate increased to a new high level of USD 68.3 per CBM (up 9% Q-o-Q). Net rate improvement was a result of continuous repricing of contract volumes and a strong spot market.
During the fourth quarter of 2022, the Company declared a purchase option for two vessels currently on bareboat charter: Höegh Trapper and Höegh St. Petersburg for USD 53.2 million and USD 29.7 million respectively. Ownership of Höegh St. Petersburg was transferred in December 2022, and the Company expects to take delivery of Höegh Trapper during the second quarter of 2023. Höegh Autoliners also successfully raised USD 130 million at favourable terms to finance the purchase option of the two abovementioned vessels and Höegh Tracer.
The Board of Directors has approved a cash dividend of USD 44 million (USD 0.231 per share) for the fourth quarter of 2022, representing an increase of 120% from Q3 dividend of USD 20 million. The dividend represents 40% of net profit after tax is adjusted for extraordinary items. Detailed information about the dividend payment will follow in a separate stock exchange notice.
Höegh Autoliners expects the general market for transportation of cars and HH/BB to be strong in 2023. Very few newbuilds will be delivered and the general expectation is that deep-sea transport volumes will increase compared to 2022. Höegh Autoliners is well positioned in the segment with a stable fleet and well-balanced trade systems. The contract portfolio is gradually renewed at higher rates and the Company also has available capacity to benefit from the strong spot market. The Company is in a strong financial position following the IPO, the refinancing of the mortgage debt and the strong cash generation through 2022. Q1 2023 has started well, and we expect to report another strong quarter. The general global macro situation is closely monitored and especially a potential recession scenario with continued high interest rates that could negatively impact the demand for the Company’s services.
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