Letter from the CEO
Delivering customer and shareholder value
Throughout 2024 we experienced strong demand from our customers for our deep sea services. Operational challenges such as canal re-routing and port delays have limited available capacity, and our team has worked hard to deliver the best possible product to our trusted customers. We are extremely thankful for their cooperation and understanding during a challenging year.
Our commercial focus over the past few years have been to offer high quality deep-sea services to clients wanting to engage with us on a long-term basis. During 2024 we announced five contracts with a total value of USD 2 billion, all with a value above USD 100 million. We are pleased to enter 2025 with the largest and most attractive contract backlog we have ever had in the Company´s history. A long-term contract backlog enables us to optimize our deep sea network and to offer improved services to our customers.
Our strong financial performance has created substantial value to our shareholders, having paid out dividends of NOK 47.61 per share in 2024.
Aurora delivery and optimizing fleet
Following the delivery of the first four Aurora Class vessels during 2024, we currently operate the largest and most carbon-efficient car carriers in our industry. The vessels reduce emissions per car transported with up to 58% compared to a conventional car carrier. A highlight during the past year was to welcome the Norwegian Prime Minister and high-ranking Chinese government officials at the naming of “Höegh Borealis” at the CMHI shipyard last September.
To capitalize on the high market values as well as to optimize the fuel performance of the future fleet, three older ships were sold during the past year.
Advancing sustainability
Höegh Autoliners has taken a decisive leadership position in decarbonizing deep sea shipping. Through our ongoing fleet efficiency program, we have achieved a year-on-year AER improvement of more than 3%, through initiatives such as changing of propellers, de-rating, modification of grids and more. Our newbuilding program has established a new market standard for size and efficiency of PCTCs, and is key to reach our targeted emission reduction of more than 30% by 2030 and to become a net-zero vessel operator by 2040. Our aspiration to take delivery of the world’s first PCTC vessel to run on ammonia in 2027 has been converted into firm contracts during 2024 and is progressing according to plan.
Investing in our people
Our strong performance in 2024 is a testament to the dedication and expertise of our employees. Our long standing commitment to in-house crewing and technical management has been essential to be allow us to lead the way in introducing larger, multi-fuel vessels to the global PCTC fleet. We are committed to providing our team opportunities to build skills and develop their careers in meaningful ways.
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.
I extend my heartfelt gratitude to our seafarers, onshore employees, customers, and partners for their support. Together, we are steering Höegh Autoliners towards a sustainable future and delivering on our mission to “make the impossible possible”
Sign.
Andreas Enger, CEO
