Höegh Autoliners: Third quarter results and distribution of dividends

Höegh Autoliners ship
DATE 27.10.2022

CEO of Höegh Autoliners, Andreas Enger, says: “This was yet another very strong quarter for Höegh Autoliners, delivering good results and positioning us well in the sector. The period was spiked by port congestions, trade route disruptions and cargo capacity shortages in the market, which our team handled professionally, with solid performance"

Highlights of the quarter

Höegh Autoliners ASA ("Höegh Autoliners" or the "Company", ticker code: "HAUTO) reported solid financial results for the third quarter: Operating profit (EBITDA) of USD 114 million (up 15% Q-o-Q), net profit after tax of USD 92 million (up 73% Q-o-Q).

Volumes decreased by 0.2 million CBM (down 4% Q-o-Q) while the net rate increased to a new high level of $62.5 per CBM (up 1% Q-o-Q). The slight decrease in volumes was mainly due to capped capacity following the sale of two non-core vessels, while net rate improvement was a result of a good cargo mix and continuous repricing in several markets.

During the third quarter of 2022, the Company received a Gold Medal rating from EcoVadis – the world’s largest provider of business sustainability ratings. Höegh Autoliners simultaneously joined the First Movers Coalition, committed to running at least 5 % of our deep-sea operations on either green ammonia or green methanol by 2030.

The sale of two non-core vessels Höegh Maputo and Höegh Singapore concluded during the third quarter, resulting in a profit-sharing gain of USD 21 million. The Company also took decisive action to limit the exposure to the expensive charter hire market by exercising the purchase option for Höegh Tracer at a price well below the current market values.

“This was yet another very strong quarter for Höegh Autoliners, delivering good results and positioning us well in the sector. The period was spiked by port congestions, trade route disruptions and cargo capacity shortages in the market, which our team handled professionally, with solid performance"
“Höegh Autoliners proudly joined the First Movers Coalition (FMC) this quarter. FMC was initiated by World Economic Forum and the US Special Presidential Envoy for Climate John Kerry to accelerate demand for zero-carbon technology. Our commitments through the coalition are another important part of our sustainability strategy to become carbon-neutral by 2040. It underlines our strong ambitions to be a maritime frontrunner sailing for sustainability and changing the industry to become greener,” says Höegh Autoliners CEO Andreas Enger.

The Board of Directors has approved a cash dividend of USD 20 million (USD 0.105 per share) for the third quarter of 2022, equal to roughly 30% of the net profit after tax adjusted for extraordinary items for the period. Detailed information about the dividend payment will follow in a separate Stock Exchange Notice.

Outlook

The general market fundamentals remain very positive with a tight tonnage situation and repricing of cargo in most trade lines. There is still volatility when it comes to delays, port congestions and supply chain disruptions but this is easing somewhat.

The global situation with high inflation and fear for recession has so far not impacted the financial performance of our business but this is something we closely monitor. Most of the increase in bunker prices earlier this year is from Q3 covered by BAF and will not impact the results much going forward unless prices move drastically from current levels.

The strong balance sheet in combination with current cash generation makes the Company very resilient for a temporary setback if an eventual recession should impact volumes negatively. The general market for our freight continues to be strong. Increasing freight rates in combination with lower bunker expenses are expected to give an increase in EBITDA in Q4 compared to Q3.

The results was presented by CEO Andreas Enger and CFO Per Øivind Rosmo. Link to the webcast: https://players.brightcove.net/2866239767001/experience_6346c57840bd3f0024f58178/share.html

Please find the Q3 report here: https://www.hoeghautoliners.com/investors/reports-and-presentations

For further information, please contact:

Andreas Enger, CEO
andreas.enger@hoegh.com
+47 901 31 228

Per Øivind Rosmo, CFO
per.oivind.rosmo@hoegh.com
+ 47 400 39 938

Investor Relations: ir@hoegh.com

Media contact:
camilla.knappskog, Head of Communications
camilla.knappskog@hoegh.com
+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.

Höegh Trapper

23 November 2022

Höegh Autoliners exercises our option to purchase Höegh Trapper for a price of USD 53,200,000

Höegh Autoliners ASA through its subsidiary Höegh Autoliners Shipping AS, has declared an option pursuant to a certain bareboat charter party to purchase the vessel Höegh Trapper for a purchase price of USD 53,200,000 from Ocean Yield. The average market value of the vessel estimated by three different brokers was USD 96 million by the end of Q3 and the Company is working on financing the purchase of the vessel.

Read next

Latest news

Olaf Tufte

16 February 2024

Together towards the Olympics – and beyond

It is a pleasure to announce that Höegh Autoliners will be sponsoring the Norwegian Rowing Federation. We will be supporting the athletes and the federation towards the Olympics and Paralympics in Paris this coming summer and will be onboard after the Games in France towards the 2028 Olympics.

Read more
Dr. Mirjam Peters

22 January 2024

Andreas Enger further strengthens his management team 

We are pleased to announce that Dr. Mirjam Peters will take on a new role as Chief Customer Sustainability Officer in Höegh Autoliners from 1 May 2024. Mirjam will be part of the Executive leadership team and will be based in our office in Germany.

Read more
Höegh Autoliners ship at night

17 January 2024

Höegh Autoliners signs new contract with major East Asian car producer

Höegh Autoliners ASA has signed a new contract with a major East Asian car producer for the transport of cars, mainly electronic vehicles (EVs), from Asia to Europe. The contract is valid for shipments until the end of 2028.

Read more