Höegh Autoliners: Fourth quarter results and distribution of dividends
"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
Highlights of the quarter
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.
The results were presented by CEO Andreas Enger and CFO Per Øivind Rosmo. Link to the webcast: https://players.brightcove.net/2866239767001/experience_63d79c4ac57fca0025c8ac59/share.html
Please find the Q4 report here: https://www.hoeghautoliners.com/investors/reports-and-presentations
For further information, please contact:
Andreas Enger, CEO
+47 901 31 228
Per Øivind Rosmo, CFO
+ 47 400 39 938
Investor Relations: firstname.lastname@example.org
camilla.knappskog, Head of Communications
+47 926 66 156
About Höegh Autoliners:
Höegh Autoliners is a leading global provider of RoRo (Roll On Roll Off) transportation services delivering cars, high and heavy and breakbulk cargoes across the world. The Company operates around 40 RoRo vessels in global trade systems and makes about 3 000 port calls each year. Our purpose is to develop innovative solutions for greener and more sustainable deep sea transportation. We are on a path to a zero emissions future and are working closely with customers and partners to achieve this. Höegh Autoliners has its head office in Oslo, Norway and employs around 375 people in its 16 offices worldwide and around 1 250 seafarers.
This statement contains certain forward-looking statements concerning future events. Forward-looking statements are statements that are not historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in investment levels and need for the Company's services, changes in the general economic, political and market conditions in the markets in which the Company operates, the Company's ability to attract, retain and motivate qualified personnel, changes in the Company's ability to engage in commercially acceptable acquisitions and strategic investments, and changes in laws and regulation and the potential impact of legal proceedings and actions. Such risks, uncertainties, contingencies and other important factors include, but are not limited to, the possibility that we will determine not to, or be unable to, issue any equity securities, and could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Andreas Enger, CEO, Höegh Autoliners
Per Øivind Rosmo, CFO. Höegh Autoliners