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EXMAR NV
Earnings Release • Nov 8, 2024
3948_10-q_2024-11-08_e302879b-4767-4eae-8717-8893d407487f.pdf
Earnings Release
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The Executive Committee of EXMAR NV today reports its third quarter results of 2024.
HIGHLIGHTS
- EXMAR has opened a new French entity, EXMAR LPG France, which will own and operate 6 newbuild dual fuel LPG/NH3 Midsize Gas Carriers (MGC), being constructed at HMD MIPO dockyard in Korea.
- EXMAR has sold and delivered one MGC (WARINSART) and has sold 4 fully pressurized ships (SABRINA, HELANE, MAGDALENA, DEBBIE) for delivery throughout 4Q 2024 and 1Q 2025.
- EXMAR's engineering affiliate, EXMAR Offshore Company (EOC), has signed an engineering contract with BP for an Opti-Ex design. This marks the 5th EXMAR Opti-Ex design that will be deployed in the US Gulf of Mexico.
SUBSEQUENT EVENTS
- The existing revolving credit facility at EXMAR LPG was upsized to 382 Million USD and extended until 2029.
- Financing for the 6 HMD MIPO dockyard MGCs was closed in October.
CONSOLIDATED KEY FIGURES (unaudited)
| International Financial Reporting Standards (IFRS) (1) |
Management reporting based on proportionate consolidation (2) |
|||
|---|---|---|---|---|
| Consolidated results (in millions of USD) | September 30, 2024 |
September 30, 2023 |
September 30, 2024 |
September 30, 2023 |
| Revenue | 278.9 | 345.4 | 343.7 | 412.6 |
| EBITDA | 95.7 | 54.4 | 149.0 | 104.5 |
| Adjusted EBITDA | 76.1 | 54.4 | 129.4 | 104.5 |
| Depreciations and amortisations | -27.7 | -29.4 | -51.1 | -50.1 |
| Operating result (EBIT) | 68.0 | 25.0 | 97.9 | 54.4 |
| Net finance result | 2.3 | -1.0 | -7.5 | -11.0 |
| Share of result of equity accounted investees (net of income tax) | 22.7 | 19.4 | 2.7 | 0.1 |
| Result before income tax | 93.0 | 43.4 | 93.0 | 43.4 |
| Income tax expense | -11.1 | -4.0 | -11.2 | -4.0 |
| Result for the period | 81.9 | 39.5 | 81.9 | 39.5 |
| Of which Group share | 81.9 | 39.4 | 81.9 | 39.4 |
| Information per share (in USD per share) | ||||
| Weighted average number of shares of the period | 57,543,987 | 57,415,904 | 57,543,987 | 57,415,904 |
| EBITDA | 1.66 | 0.95 | 2.59 | 1.82 |
| Adjusted EBITDA | 1.32 | 0.95 | 2.25 | 1.82 |
| Operating result (EBIT) | 1.18 | 0.44 | 1.70 | 0.95 |
| Result for the period | 1.42 | 0.69 | 1.42 | 0.69 |
| Information per share (in EUR per share) | ||||
| Exchange rate | 1.0849 | 1.0824 | 1.0849 | 1.0824 |
| EBITDA | 1.53 | 0.88 | 2.39 | 1.68 |
| Adjusted EBITDA | 1.22 | 0.88 | 2.07 | 1.68 |
| Operating result (EBIT) | 1.09 | 0.40 | 1.57 | 0.88 |
| Result for the period | 1.31 | 0.64 | 1.31 | 0.64 |
(1) The figures in these columns have been prepared in accordance with IFRS as adopted by the EU.
(2) The figures in these columns reflect management presentation and include the joint-ventures based on the proportionate consolidation method instead of the equity method.
Press Release | Third quarter 2024 results Contact: Hadrien Bown | CFO | +32 3 247 50 74 or Jan Van den Eynde | Investor Relations | +32 3 247 56 55 www.EXMAR.be
Antwerp 08/11/2024 – 6.00 PM Regulated information
KEY EVENTS THIRD QUARTER 2024 AND OUTLOOK
The figures discussed below are all based on the proportionate consolidation method.
| December 31, 2023 |
|---|
| 252.1 |
| September 30, 2023 |
| 20.4 |
| 36.9 |
| -2.9 |
| 54.4 |
SHIPPING:
| Proportionate consolidation - SHIPPING (In millions of USD) |
September 30, 2024 | September 30, 2023 |
|---|---|---|
| Revenue | 109.8 | 110.6 |
| EBITDA | 72.2 | 55.6 |
| Adjusted EBITDA | 72.2 | 55.6 |
| Operating result (EBIT) | 34.4 | 20.4 |
| Segment result for the period | 8.5 | -1.8 |
Revenue (including intersegment revenue) for the first nine months of 2024 was USD 0.8 million lower than in the same period of 2023. EBITDA for the Shipping segment in 2024 is USD 16.6 million above 2023, which was negatively impacted by a claim provision.
Very Large Gas Carriers (VLGC)
The VLGCs FLANDERS PIONEER and FLANDERS INNOVATION continued under their current timecharter with Equinor. VLGC BW TOKYO is employed in the BW VLGC pool. The VLGC market saw a good start of the year. Meanwhile, rates have normalized versus last year's record earnings. The arbitrage remains open providing good demand with increased production output.
Midsize Gas Carriers (MGC)
Time charter (TC) rates for MGC's continued at healthy levels whilst the spot market saw a decline in activity, due to VLGC rates being under pressure. The ammonia market saw an uplift in pricing which created additional activity. Owners are still avoiding the Red Sea leading to long voyages from Arabian Gulf to Europe. EXMAR managed to keep its MGC fleet well employed on TC.
The LPG carrier WARINSART was delivered to her Buyer and has been chartered back to EXMAR.
Pressurized
In Europe spot rates came under pressure over summer but are anticipated to increase due to winter seasonality. Time charter rates are strong following limited capacity and strong demand for mainly 5,000 m3 ships. Levels in the East remained flat.
EXMAR owns and operates 10 pressurized ships globally, however 4 ships have been sold for delivery between the last quarter of 2024 and the first quarter or 2025.
Press Release | Third quarter 2024 results Contact: Hadrien Bown | CFO | +32 3 247 50 74 or Jan Van den Eynde | Investor Relations | +32 3 247 56 55 www.EXMAR.be
Antwerp 08/11/2024 – 6.00 PM Regulated information
| Time Charter Equivalent (in USD per day) | 2024 | 2023 |
|---|---|---|
| Midsize (100 pool points - reference vessel Waasmunster) |
26,812 | 25,640 |
| VLGC (Average) | 31,403 | 44,681 |
| Pressurized (Average)(3,500 m3 ) |
7,769 | 7,835 |
| Pressurized (Average)(5,000 m3 ) |
8,499 | 9,184 |
INFRASTRUCTURE:
| Proportionate consolidation - INFRASTRUCTURE (In millions of USD) |
September 30, 2024 | September 30, 2023 |
|---|---|---|
| Revenue | 174.2 | 261.5 |
| EBITDA | 52.2 | 49.9 |
| Adjusted EBITDA | 52.2 | 49.9 |
| Operating result (EBIT) | 42.3 | 36.9 |
| Segment result for the period | 40.8 | 29.3 |
Revenue in the Infrastructure segment decreased in 2024 by USD 87.3 million to USD 174.2 million due to the completion of the engineering, procurement and construction works for the Marine XII project in Congo.
All Infrastructure assets performed as expected in the third quarter and have generated stable EBITDA.
The engineering activities were awarded a new contract for the hull a new floating production facility for BP's Kaskida development in the US Gulf of Mexico. EOC's activities and revenues are high with two fully fledged projects running in parallel. EXMAR's engineering offshore affiliate DV Offshore has a solid orderbook. Its unique mooring expertise is of increasing use for infrastructure projects.
Building on the recent successes EXMAR continues to work on the development of various new Floating LNG Liquefaction, Floating LNG Regasification prospects and Floating Storage projects.
SUPPORTING SERVICES:
| Proportionate consolidation - SUPPORTING SERVICES (In millions of USD) |
September 30, 2024 | September 30, 2023 |
|---|---|---|
| Revenue | 67.3 | 51.5 |
| EBITDA | 24.5 | -1.1 |
| Adjusted EBITDA | 4.9 | -1.1 |
| Operating result (EBIT) | 21.3 | -2.9 |
| Segment result for the period | 32.5 | 11.9 |
Revenues in the Supporting Services segment are impacted by the increased revenue from operations and maintenance agreements (appr. USD 25 million) partially offset by the decrease in revenues generated by Bexco NV, following its sale, effective April 30, 2024, that brings revenues down by USD -9 million. The gain on the sale of the shares of Bexco NV of USD 19.6 million – excluded from Adjusted EBITDA - boosts the performance of Supporting Services in the first nine months of 2024.
Antwerp 08/11/2024 – 6.00 PM Regulated information
EXMAR Ship Management
EXMAR Ship Management continues to deliver high-quality service to both internal and external clients. In the shipping division, while the fleet size has reduced due to asset sales by Owners, EXMAR Shipmanagement is actively looking to expand 3rd party management and continue to support EXMAR LPG with the fleet renewal. Efforts to grow our footprint in third-party LNG infrastructure operations and maintenance (O&M) are ongoing, as EXMAR Shipmanagement continues to benefit from the long-term commitments in FSRU and FLNG infrastructure assets.
Investments
EXMAR increased its shareholding in Ventura Offshore Holding, which now amounts to 7.40%. Ventura owns three ultra deepwater drilling assets and manages two other ultra deepwater assets. Ventura is listed on the Euronext Growth platform under VTURA.
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GLOSSARY
- EBITDA: Earnings before interests, taxes, depreciation, amortization and impairment.
- Adjusted EBITDA: EBITDA adjusted for certain non-recurring transactions for which management believes that excluding these provides better insights in the actual performance of the Group.
- EBIT: Earnings before interests and taxes.
- Net financial debt/(cash): borrowings minus (restricted) cash and cash equivalents.
- FVTPL: Fair value through profit and loss
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