Qatar Gas Transport Company (QGTS) Q2 2024 earnings summary

Executive summary

• Net profit for 2Q24/H1 2024 reached QAR 829M, up ~7% year-over-year, driven by lower depreciation and finance costs.

• Revenue for 2Q24/H1 2024 was QAR 2.29B, remaining stable year-over-year, with shipping segment growth offsetting lower shipyard activity.

• EBITDA for 2Q24 was QAR 1.83B, a slight decrease of 0.6% year-over-year due to reduced shipyard activities.

• Interim cash dividend of QAR 0.07 per share for 1H24 proposed, pending approval.

• Major vessel fleet expansion underway, including new subsidiaries established in H1 2024.

Financial highlights

• Revenue from wholly owned vessels was QAR 1.80B, up from QAR 1.77B year-over-year.

• Share of results from joint ventures declined to QAR 344.9M from QAR 383.0M year-over-year.

• Depreciation expense decreased to QAR 409.8M from QAR 449.9M.

• EPS for 2Q24/H1 2024 was QAR 0.15; annualized ROE at 13.5%.

• Total comprehensive income increased to QAR 884.6M from QAR 845.6M year-over-year.

Outlook and guidance

• Fleet expansion includes 9 QC-Max LNG vessels, 25 conventional LNG vessels, and 6 new gas vessel orders in 2024.

• LNG fleet to reach 105 vessels and LPG fleet to 8 upon delivery of newbuilds.

• Shipyard segment expected to generate sustainable profit.

• LNG market fundamentals strong, with global liquefaction capacity projected to rise from 408 mmtpa in 2023 to 732 mmtpa by 2030.

• Results for the six-month period are not necessarily indicative of full-year 2024 performance.