Financial performance
Höegh Autoliners reports consolidated financial information pursuant to the International Financial Reporting Standards (IFRS). In accordance with the requirements of Norwegian accounting legislation, the Board confirms that the requirements for the going concern assumption have been met and that the annual accounts have been prepared on this basis.
Result 2024
The Group reported total revenues in 2024 of USD 1 371 million (USD 1 446 million in 2023) and an operating profit (EBITDA) of USD 692 million (USD 736 million in 2023). The strong operating result is reflecting the high net rates in a strong spot market and successful repricing of contracts, although it was partially offset by lower volumes and increased costs due to the re-routing south of the Cape of Good Hope throughout the year.
The vessels Höegh Kobe and Höegh Chiba were sold in 2024 with a total gain of USD 52 million.
Interest expenses are lower in 2024 than in 2023, mainly due to capitalisation of interest on newbuildings. A debt modification loss of USD 11 million was expensed in relation to the refinancing in March 2024. A tax income of USD 35 million reflects the reversal of deferred tax liabilities following rationalisation of the group structure and settlement of intra-group loans and receivables. The net profit after tax amounted to USD 620 million (USD 590 million in 2023).
Basic earnings per share amounted to USD 3.25 (2023: USD 3.09).
Financial position
Höegh Autoliners entered into two new credit facilities in March 2024; a USD 720 million credit facility for the purpose of refinancing the existing USD 820 million Credit Facility, and a new USD 200 million Revolving Credit Facility for general corporate purposes. Gross interest-bearing mortgage debt increased from USD 346 million in 2023 to USD 708 million at year-end 2024, mainly due to drawdown on the loan facility related to the newbuilding program and debt related to the sale and leaseback arrangements with Bank of Communications. Net interest-bearing debt increased from USD 52 million in 2023 to USD 581 million in 2024. For more information on the interest-bearing debt, see Note 18 in the consolidated accounts.
The cash balance at the end of the year was USD 208 million, which was down from USD 458 million at the end of 2023. The strong financial results through 2024 have enabled the Group to maintain a strong cash position at year-end 2024, even after distributing dividends to shareholders of USD 841 million.
The book equity totalled USD 1 177 million in 2024, a decrease from USD 1 412 million in 2023. Book equity represented 56% of total equity and liabilities on 31 December 2024. The Group’s covenants relating to the USD 720 million loan facility are related to a minimum book equity ratio, working capital and a minimum liquidity. The Group complied with these requirements at year-end 2024.
Net cash flow from operating, investing and financing activities was negative with USD 249 million (2023: positive with USD 275 million). The net cash flow from operations amounted to USD 708 million (2023: USD 746 million). Cash flow from investing activities was negative with USD 280 million (2023: negative USD 103 million). The increase from 2023 is mainly due to the newbuilding instalments for Aurora vessels of USD 357 million and net proceeds of USD 120 million from sale of vessels. Net cash flow used in financing activities was negative with USD 677 million (2023: negative USD 369 million), whereof USD 841 million was related to dividend payments to shareholders, USD 131 million (2023: USD 161 million) was related to payment of lease liabilities. The mortgage debt payments in 2024 amounted to USD 46 million (2023: USD 51 million).
In November 2024, the Company purchased 330 000 own shares to meet obligations from the Company’s share bonus program. Of these, 326 348 shares were delivered to the participants following the completion of the vesting period for the first award. The Company has 3 652 own shares at 31 December 2024.
Allocation of result
The net profit for 2024 for the parent company Höegh Autoliners ASA amounted to USD 952 million (2023: USD 33 million). The Company has a total equity of USD 1 245 million and an equity ratio of 70%. The Company has during 2024 distributed cash dividends to the shareholders of USD 841 million. On 31 December 2024, USD 90 million in dividend paid in March 2025 has been recorded as current liability. The Board of Directors has proposed that the net profit for 2024 is transferred to retained earnings. Dividends will be distributed regularly in 2025 following an authorisation given to the Board of Directors.
Financial risks
Interest rate risk
The interest rate risk can be reduced through interest rate swaps. The Group currently evaluates the exposure to interest rate risk as limited, and at year-end 2024, the Group did not have any interest rate swaps.
Foreign exchange rate risk
The Group is only to a limited extent exposed to currency fluctuations as the majority of its income and expenses are in USD. The largest non-USD costs are in EUR and relate to port and cargo operations. Fluctuations in EUR constitute a smaller risk, however; this is partly balanced, as parts of the Group’s costs and revenues are both Euro-denominated. The Group has active currency hedges at the end of 2024 (no currency hedges at end of 2023). See note 14 for more details.
Bunker price risk
The Group has Bunker Adjustment Factor (BAF) clauses in most commercial contracts, designed to adjust for changes in bunker prices. Due to time lag, the Group will not be fully compensated in periods of rapidly changing prices, but the BAF will give reasonable compensation in most periods. The Group has no bunker derivatives at year-end 2024 (no bunker derivatives at end of 2023).
The risk of losses on receivables is considered to be low. The Group has not experienced any significant losses on receivables in recent years.
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to liquidity management is to ensure, to the extent possible, that the liquidity at any time can meet on-going obligations, both under normal and stressful conditions. The liquidity reserve shall be kept solid with targeted minimum cash holding relative to the size of the operation, cash flow development and capital commitments. The Group will seek to have the majority of its liquidity in bank deposits. Total bank deposits at 31 December 2024 amount to USD 208 million.
For more information on financial risks, see Note 14 in the consolidated accounts.
With around 80% of global trade enabled by maritime shipping, the shipping sector is responsible for about 3% of all global greenhouse gases (GHG). In the coming decades the shipping industry will need to undergo a radical transformation if it is to meet challenging targets to cut greenhouse emissions and to comply with future emission and environmental regulations.
As a global shipping company, Höegh Autoliners acknowledge that climate change, including the actions and measures taken by regulatory institutions and industry participants may impose a significant financial impact on our business. Read more about climate risk and our sustainability topics in the Sustainability Statements in this report.
Organisation
Höegh Autoliners had 469 land-based employees at the end of 2024, located across 16 offices and 1 212 seafarers. Absence through illness continues to be low and well below industry average. In 2024, the number of days registered as “absence due to illness” represented 0.7% for employees in Norway (2023: 0.5%). For more information on employees, working environment and other social matters, see Social information in our Sustainability Statements.
Directors and officers’ liability insurance
Höegh Autoliners has a directors’ and officers’ liability insurance. For more information see the Corporate Governance statement.
Events after the balance sheet date
Dividend
On 13 February 2025, the Board of Directors resolved to distribute a cash dividend of USD 0.4718 per share. The dividend was paid out in March 2025.
Share capital reduction
Following the resolution at the Extraordinary General Meeting for Höegh Autoliners ASA in November 2024 and the requisite creditor notice period having been served, the Company has filed the final confirmation of the share capital reduction with the Norwegian Register of Business Enterprises. The reduction in share capital from NOK 2 823 392 285.20 to NOK 190 769 749 has been transferred to other paid-in equity.
Fleet update
On 12 March 2025, an option to purchase the leased vessel, Höegh Copenhagen, was declared. The purchase price is USD 36.5 million and Höegh Autoliners Shipping AS will take ownership of the vessel in August 2025.
Looking ahead
Geopolitical and macroeconomic uncertainties are on the rise at the start of 2025. Our efforts to build a solid balance sheet, an attractive contract backlog, a market leading fleet and further develop our world class operating platform makes us well positioned to continue delivering quality service, opportunities and financial value to our stakeholders.
