Höegh reports first quarter results 2022
Höegh Autoliners recently reported the interim results for the first quarter of 2022.
Höegh Autoliners had a strong first quarter despite market volatility and supply chain disruptions. While volumes and utilisation were slightly down compared to the previous quarter due to seasonal fluctuations, the Company experienced further net rate increase and improved HH shares, reflecting continuously strong underlying market.
Adjusted EBITDA of USD 78 million, up 105% Y-o-Y. Net profit of USD 36 million, significantly up from negative USD 7 million in Q1 2021. Solid operational results further strengthened the balance sheet, with book equity ratio of 49% supported by increase in vessel values of 19% since year end 2021.
In January 2022, the Company signed a contract with China Merchants Heavy Industry (Jiangsu) Co., Ltd. (CMHI) to build the first four multi-fuel and zero carbon 9 100 CEU Aurora class vessels, with option for another eight vessels until July 2023 (as of May 2022, the option to build vessels 5 to 8 have been declared by the Company). The Company expects delivery of two Aurora vessels every six months starting from the second half of 2024.
Fleet optimisation continued in the first quarter 2022 through disposal of three non-core smaller vessels and extension of charter party for two medium size vessels. Network size is planned to remain around 39-40 vessels in 2022.
CEO of Höegh Autoliners, Andreas Enger, says: “I am very pleased with our first quarter results as well as the progress we have made on our strategic objectives, not least our continuous commitment to being the leader in zero emissions shipping. Extending our green fleet renewal program to eight zero carbon ready Aurora class vessels this quarter, with the possibility of ordering another eight, was a major step on our path to zero. At Höegh Autoliners we don’t just talk about sustainability and becoming green. We continue to act on it.”
The strong market fundamentals with tight supply demand balance and increased freight rates have continued into Q2. The sharp increase in bunker prices towards the end of Q1 will have negative impact in Q2 as the compensation (BAF) is delayed with 3-4 months.
Geopolitical developments, in particular the conflict in Ukraine, COVID-19 lockdown in China and supply chain issues, are closely monitored. So far, we have not seen any financial impact on our business but due to limited visibility, this may change.
Höegh Autoliners has a robust financial platform that will be further strengthened following the completion of the refinancing of the existing mortgage debt. On 2 May 2022, Höegh Autoliners’ shares were uplisted to the Oslo Stock Exchange’s main list.
Based on current earnings outlook for 2022, the Company is considering commencing dividend payments in the second half of the year.
Please find Q1 2022 report here.
The results were presented by CEO Andreas Enger and CFO Per Øivind Rosmo on 5 May 2022.
