Hoegh Autoliners H1 profit dips despite revenue growth

Höegh Autoliners has reported a mixed set of results for the first half of 2025, with an increase in revenue overshadowed by a year-on-year decline in net profit. The Norwegian vehicle carrier operator’s performance was buoyed by higher cargo volumes and a rising contract share, but the bottom line was impacted by a large, one-off tax income that had inflated the previous year's results.

For the three months ending June 30, the company posted total revenues of $367 million, an increase from the $341 million recorded in the second quarter of 2024. Despite the higher revenue, net profit for the period fell to $123 million, down from $174 million in the prior-year quarter. The company noted that the 2024 figure had included a tax income of $39 million.

The trend was similar for the full first half of the year. For the six months ending June 30, revenues grew to $697 million from $669 million in the first half of 2024. Net profit for the period was $278 million, a slight decrease from the $289 million earned in the corresponding period last year, which had included a tax income of $42 million.

Chief Executive Officer Andreas Enger described the second quarter as "another strong quarter" for the company. He stated, "Our performance in 2025 benefits from our strategy of 'going long on cargo' towards the end of 2024, where we gradually increase volume and have lifted our contract share from 73 per cent in 2024 to 81 per cent in H1 2025." The quarter also saw the delivery of two new vessels.

Looking ahead, the company expects its third-quarter earnings before interest, tax, depreciation, and amortisation (EBITDA) to be in line with the first half of 2025. In a continued commitment to shareholder returns, the company declared a dividend of $137 million for the second quarter.