The car carrier market continues humming along for Hoegh Autoliners.
The Oslo-listed owner on Friday reported cargo volumes and rates in line with the last several months, continuing a recent performance that pushed the company to max out its dividend in the second quarter.
“August was another good month for Hoegh Autoliners,” chief executive Andreas Enger said.
“The general market for our transportation services is strong and we continue to fill our vessels with a good mix of contract cargo and spot cargo, both for the car segment and the [high and heavy and breakbulk] segment.”
In August, Hoegh Autoliners transported 1.3m cbm of cargo on a pro-rated basis.
Volumes were down slightly from May and July, when it moved 1.4m cbm of cargo, but in line with June.
Average gross freight rates for August were flat from July at $88.70 per cbm and up from the $87.30 per cbm reported in June and the $88.30 per cbm reported in May.
Average net freight rates hit a four-month high at $78.20 per cbm.
Those figures have climbed steadily from May, when the company reported $76.30 per cbm. Rates fell to $73.70 per cbm in June and hit $77.70 per cbm in July.
Fearnley Securities analyst Oystein Vaagen said the slight dip in volumes was down to trade mix — high and heavy and breakbulk volumes were 26% of cargoes in August, up from the 25% average for the last three months — and congestion.
“We see limited risk on volumes going forward as car sales and export data (as well as leading indicators) continues to be strong but note that trade mix and congestion may have a larger impact on volumes in the coming months,” he said.
Both Vaagen and Enger also pointed out the Panama Canal as an issue.
Enger said congestion there helped pull down volumes and Vaagen said the freshwater shortage there could be a bottleneck for trading and is something to watch in the coming weeks.
In the second quarter, the company reported a $133m profit and paid a $0.35 per share dividend, totalling $67m and approximately 50% of its net adjusted profit.
The company has a policy of paying between 30% and 50% of its profit to shareholders.
In early trading on Friday, Hoegh Autoliners shares rose NOK 1.10 ($0.10) from the open and NOK 2 to NOK 78.80.
