Höegh Autoliners announced its Chief Financial Officer is stepping down to take up a dual senior executive role as Executive Chair of Höegh Autoliners activities in Manila and as Chief Controlling Officer.
The company said in an announcement:
Our Manila office is by far the largest of our offices and is a key contributor to our operational performance and efficiency. It plays a key role in Finance, Accounting, Legal, IT, HR and Customer Service in addition to being our center for Crewing, Technical Management, Fleet Operations and Newbuilds. With such importance in our global operating model, we have decided to strengthen the corporate leadership and support to ensure optimal development of the next generation of leaders in Manila.
On the same date, Espen Stubberud will become Chief Financial Officer. Espen holds a Master´s degree from the Norwegian School of Economics and Business Administration (NHH) and did earlier this year complete the Advanced Management Program at INSEAD in Singapore. He joined Höegh Autoliners as a Maritime Trainee in 2007 and comes from the role as Chief Trade & Capacity Officer where he has led our capacity allocation, repricing, and more recently divestments of some older vessels. In August, he was replaced by John Syvertsen in this role to work with the CEO on capacity strategy. Espen will bring valuable insight into the CFO role at a time when active asset management will be a more important value lever for the company. After almost 2 decades of holding key management roles in Norway, the US and Greater China, Espen will in his new role benefit from deep knowledge of our global organization and key business value levers.
Moreover, the company revealed it plans to pay USD 245 million in dividends, subject to approval at an extraordinary meeting next month.
More specifically, an announcement on Q3 results reads:
Höegh Autoliners reported another solid financial performance in the third quarter of 2024. The gross revenue was USD 349 million/NOK 3,738 million, operating profit (EBITDA) was USD 177 million/NOK 1,898 million, and net profit after tax was USD 193 million/NOK 2,063 million.
Highlights of the quarter
o Operating profit (EBITDA) of USD 177 million and net profit after tax of USD
193 million.
o Gross freight rate increased by 5% compared to Q2 2024 to USD 101.5 per cbm.
o Delivery of the first Aurora Class vessel, Höegh Aurora in August.
o Höegh New York agreed to be sold for USD 61 million. Will be delivered to new
owners within Q1 2025.
o Höegh Kobe and Höegh Chiba sold for USD 119 million with a booked accounting
gain of USD 52 million. Both vessels were debt free.
o Q2 2024 dividend of USD 127 million paid in August 2024.
o Proposed dividend for Q3 2024 of USD 245 million subject to resolution by an
the extraordinary general meeting (see separate notice).
In order to increase the Company’s dividend capacity and keep distributing dividend in accordance with the Company’s dividend policy, an extraordinary general meeting will be called for the purpose of approving an interim balance sheet, the proposed Q3 dividend and a reduction in the share capital. See separate notice regarding the extraordinary general meeting.
Andreas Enger, CEO of Höegh Autoliners, comments: “Höegh Autoliners continued to deliver solid results for the third quarter of 2024.While net rates continued to increase, the Red Sea rerouting, together with periodic vessel maintenance, negatively impacted the capacity available for transporting cargo. In September, the Company announced the sale of a 19 year-old vessel – Höegh New York, to further optimize the fleet and take advantage of the heated charter market. In the same quarter, we also took delivery of Höegh Aurora – one of the largest and most environmentally friendly vessels on the water today. This marks a new chapter for the Company, taking us one step close to our net zero emission goal in 2040. Creating value for our shareholders remains a primary focus for Höegh Autoliners, and the Board of Directors has proposed for the extraordinary general meeting on November 20 to approve a dividend of USD 245 million for Q3 to be paid in December. I would like to extend my heartfelt gratitude to all our employees, partners and customers for your unwavering support and confidence in our vision.”
Outlook
The general market remains strong, and we do not expect that to change much for the last three months of 2024. We have secured more cargo under long term contracts, securing freight rates at high levels also for this period. Capacity has been a constraint both for us and the general market. With both Höegh Aurora and Höegh Borealis now in operation, we expect our lifting capacity to increase somewhat in Q4. The deliveries of newbuilds to other operators as well, will gradually take away some of the pressure seen in our industry. The geopolitical and macro economic situation in the world continues to be challenging, but we do not foresee that to change the market dynamics or impact the results in Q4. We expect an EBITDA result for Q4 in line with the last nine months run rate.