Westshore Terminals Investment (WTE) Q2 2024 earnings summary

Executive summary

• Q2 2024 profit rose to $34.6M from $28.1M year-over-year, driven by higher coal loading revenue and tonnage shipped, despite increased finance costs and inflationary pressures.

• Six-month profit declined to $49.9M from $61.0M year-over-year, mainly due to higher operating, administrative, and finance costs, and absence of a one-time customer shortfall payment recognized in 2023.

• Major capital investment continues in the potash project for BHP, with construction progressing and expected to commence handling potash in 2026.

Financial highlights

• Q2 2024 revenue increased 13.5% to $105.6M; six-month revenue was $190.4M, slightly down from $192.0M year-over-year.

• Q2 2024 tonnage shipped rose 9.1% to 7.3M tonnes; year-to-date tonnage fell 2.2% to 13.3M tonnes.

• Q2 2024 EPS was $0.56 (vs $0.45); six-month EPS was $0.80 (vs $0.98).

• Q2 2024 dividends declared per share were $0.375 (vs $0.35); six-month dividends per share were $1.10 (vs $0.70).

• Q2 2024 net finance costs increased to $4.2M from $1.3M, mainly due to lease revaluation.

Outlook and guidance

• 2024 throughput volumes expected at ~27.0M tonnes with an average loading charge of ~$13.65/tonne.

• Potash project remains on schedule, with construction continuing into 2026 and handling to begin that year.

• BHP’s Jansen Stage 2 expansion could further increase future volumes, with first production expected in 2029.