Hoegh Autoliners is looking to cut their investors a cheque as it predicts a strong close to the year.
The Oslo-listed car carrier owner plans to pay $245m in dividends, subject to approval at an extraordinary meeting next month, it said in its third-quarter earnings announcement.
The decision follows a $193m quarterly profit, up from $142m recorded for the same period last year.
“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,” the company said.
“Capacity has been a constraint both for us and the general market.”
For the quarter, Hoegh Autoliners earned $101.50 per cbm of cargo, up 5% sequentially and up from the $90.50 per cbm earned in the third quarter of 2023.
Volumes fell to 3.5m cbm for the quarter, roughly flat from the second quarter and down 3.9m cbm year over year.
It left the company with $349m in revenue, down from $355m.
The company said rerouting away from the Red Sea, which lengthens voyages and reduces effective ship supply, was impacting volumes, as was vessel maintenance.
The extraordinary general meeting will be held on 20 November.
At the meeting, shareholders will be asked to approve an interim balance sheet and reduce the share capital in addition to the dividend.
The company also announced a shift in its executive team effective 1 January.
Current chief financial officer Per Oyvind Rosmo is shifting into a chief controlling officer role along with executive chairman for the Manila office.
Chief trade and capacity officer Espen Stubberud will take over.
