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Investing.com -- Höegh Autoliners (OL:HAUTO) on Friday said it expects second-quarter EBITDA to be in line with the first quarter, while warning that recently announced U.S. tariffs and port fees could lower transported volumes and raise operating costs for vessels calling at U.S. ports.
“The potential for significant tariffs on imports to the U.S. presented risk for both market participants in the U.S. and for knock-on impacts to markets around the world based on the unknown macroeconomic implications,” the company said in a statement.
“Vehicle affordability and slow-to-fall interest rates continued to be other major factors influencing demand in Q1. Vehicle demand in the revised 2025 forecast is estimated to remain flat at 89 million units,” the company added.
The Oslo-based shipping company reported a net profit of $155 million for the January-March period, up from $115 million in the same quarter last year and $138 million in the fourth quarter of 2024. The result included a $41 million gain from the sale of the vessel Höegh New York.
Total (EPA:TTEF) revenues reached $329 million, compared with $328 million a year earlier and $352 million in the previous quarter.
EBITDA was $155 million, down from $162 million in the first quarter of 2024 and $179 million in the final quarter of last year. Adjusted EBITDA was also $155 million.
The company cited lower freight rates and higher charter expenses following the chartering of Grand Dahlia in January as factors behind the decline from the prior quarter.
Cash flow from operations fell to $121 million, down from $165 million in the same period last year and $184 million in the fourth quarter.
Capital expenditures totaled $34 million, mainly tied to newbuilding installments, dry dock expenses and vessel upgrades.
Cash and cash equivalents stood at $233 million at the end of March, up from $207 million a year earlier.
Net interest-bearing debt declined to $527 million from $581 million at the end of December, but rose from $338 million in the first quarter of 2024.
The equity ratio was 59%, compared with 62% a year ago and 56% in the fourth quarter.
During the quarter, Höegh Autoliners signed two long-term contracts with international carmakers, each worth more than $100 million.
It exercised an option to purchase the leased vessel Höegh Copenhagen and delivered Höegh New York to new owners.
The company declared a dividend of $158 million to be paid in May, following a $90 million payout in March based on fourth-quarter results.
Höegh Autoliners said it continues to divert vessels around the Cape of Good Hope, avoiding the Red Sea. It said it does not expect to return to Red Sea trading in the near term.