Higher Charter Rates Boost EXMAR’s First Half Results

The Board of Directors of EXMAR has approved the interim accounts for the period ending June 30, 2024. The interim condensed consolidated financial statements have not been subjected to an audit or a review by the statutory auditor.

HIGHLIGHTS

• Full employment on infrastructure assets.
• The shipping business unit performance reflects firmer market conditions.
• Divestment of Bexco NV to Bekaert NV.
• Fleet renewal has been progressing through the sale of two MGCs (WAREGEM and WARINSART), and the confirmation of two newbuild MGCs on timecharter with Nissen, resulting in a total orderbook of twelve dual-fuel vessels.
• EXMAR’s engineering affiliate, EXMAR Offshore Company, has signed with BP an engineering contract for the OPTI. This marks the 5th time that the OPTI design will be deployed in the US Gulf of Mexico.

SUBSEQUENT EVENTS

• On August 20th, 2024 EXMAR closed the financing of the FSU EXCALIBUR. Under the form of a lease structure the group raised USD 100.5 million with China Merchants Financial Lease.
• On August 26th, 2024 EXMAR signed 3 memoranda of agreement for the sale of pressurized vessels (DEBBIE, HELANE and MAGDALENA).

Revenue (including intersegment revenue) for the first six months of 2024 was USD 1.8 million higher than in the same period of 2023 mainly thanks to higher time-charter rates for all the MGC fleet and the VLGC BW TOKYO. EBITDA for the Shipping segment in 2024 has an EBIT that is USD 15 million above 2023.

Very Large Gas Carriers (VLGC)

The VLGCs FLANDERS PIONEER and FLANDERS INNOVATION continued under their current time charter with Equinor. VLGC BW TOKYO is employed in the BW VLGC pool and still benefits from rewarding revenues achieved in the VLGC segment.

Midsize Gas Carriers (MGC)

The MGC rates have also been firm on the back of the strong VLGC market, with a strong demand from LPG whilst the demand and tonne mile for ammonia transport was reduced from last year’s strength due to lower natural gas prices. The MGC fleet is for respectively 100% and 63% employed for 2024 and 2025 on term contracts.

The LPG carrier WARINSART has been sold and chartered back in the second quarter of 2024. The LPG carrier WAREGEM has been sold in the second quarter of 2024, but not yet delivered.

Pressurized

With virtually no orderbook in the 3500-5000 m3 segment, expectations are that freight will remain strong for this ageing fleet, especially in Europe as older tonnage will eventually be phased out and relocate to other areas. Also with stronger activity in the Far East market, although at a slower pace, more activity was noted as well in the pressurized market. In general however, the Eastern market has in comparison not been equally rewarding as the West.

EXMAR owns and operates 10 pressurized ships globally, that are employed for respectively 92% and 30% for 2024 and 2025 on a term basis.

Revenue in the Infrastructure segment decreased in 2024 by USD 9.4 million to USD 135.2 million. This is due to the Marine XII project in Congo being remunerated as per value of the works performed and the project being in commissioning phase in the first half of 2024.

All Infrastructure assets are fully employed.

EEMSHAVEN LNG continues to perform as per expectations and EXCALIBUR is fully embedded in the Marine XII project of ENI in Congo and generating stable revenues under its bareboat charter. With the arrival of the FLNG and the FSU in Congo, the Marine XII Project focus in 1H2024 has been on the on-site commissioning.

WARIBOKO, a floating accommodation barge, was sold in April at favorable conditions.

Building on the success in Eemshaven and in Congo, EXMAR continues to work on various new Floating LNG Liquefaction projects and Floating LNG Regasification projects.

EXMAR Offshore Company has been awarded a contract to design and engineer a fifth OPTI based hull for the new floating production facility for BP’s Kaskida development in the US Gulf of Mexico.

Both EXMAR’s engineering subsidiaries EXMAR Offshore Company in Houston and DV Offshore in Paris sustained high utilization rates for their third-party engineering services.

Results in the Supporting Services segment are impacted by the sale of Bexco NV, effective April 30 2024 and bring revenues down by USD 1.2m. 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 six months of 2024. Further improvement thanks to third party Operations & Maintenance revenues.

EXMAR Ship Management

EXMAR Ship Management continues to benefit from the long-term commitments for the FSRU and FLNG infrastructure business.

Investments

EXMAR increased its shareholding in Ventura Offshore Holding, which now amounts to 5.86%. Ventura owns three Ultra Deepwater Drilling assets and manages two other ultra deepwater assets. Ventura is listed on the Euronext Growth platform under VTURA.
Source: EXMAR