Nov 15 | 2021
Listing to Fund First Four Ammonia-fueled PCTCs
Global roll-on, roll-off vessel operator Höegh Autoliners ASA said Nov. 12 that it plans to launch a private placement of new shares in the company, which will be listed on Euronext Growth Oslo.
Proceeds, which could reach NOK 1 billion (US$115 million) would finance four new multi-fuel and ammonia-capable pure car and truck carriers, of PCTCs, in line with the carrier’s pledge to deliver low-to-no emission transportation services.
Höegh Autoliners, which operates a fleet of about 40 PCTCs, with annual carrying capacity of about 6,700 car-equivalents per vessel – though the carrier also handles high-and-heavy machinery and breakbulk cargoes – said the placement and listing will also be used to strengthen customer service and its decarbonation and cargo efficiency efforts.
“Listing on the Euronext Growth confirms our ambitions and capability as a company,” said Andreas Enger, CEO of Höegh Autoliners. “The global market in our sector is rapidly strengthening through increased volumes and decreasing global capacity. We have secured yard slots to build the first four ammonia ready multifuel vessel, making us the undisputed frontrunner in our industry’s path to a zero emissions future.”
The carrier has entered into a letter of intent with China Merchants Heavy Industry to build the four multi-fuel and ammonia-ready Aurora-class vessels. The first two would be delivered in the second half of 2024 and an additional two vessels in the first half of 2025. Höegh Autoliners has options for up to another eight four Aurora-class vessels.
With a capacity to carry up to 9,100 cars, the Aurora class will be the world’s largest and most environmentally friendly PCTCs.
“We are very pleased to announce our intention to list Höegh Autoliners and open the next chapter in its history,” said Leif O. Høegh, chairman of Höegh Autoliners. “By raising capital and listing the company, we will be able to accelerate investments and further strengthen our customer service and leading position in decarbonization and cargo efficiency.”
Höegh Autoliners has a solid history of delivering emission cuts and long-term sustainability results. Since 2008, the company has achieved an improved carbon intensity of 37 percent across its fleet, putting it at the forefront of sustainable shipping and substantially ahead of the IMO 2030-target of 40 percent reduction.
Four cornerstone investors: LHC, KLP Kapitalforvaltning AS, Intertrade Shipping AS and Global Value Investment Corp., have undertaken to subscribe for shares totaling about NOK 425 million (US$ 50 million). LHC has committed NOK 250 million, subject to certain conditions and for a price per share of up to NOK 21, which equates to a pre-money equity value of the Company of NOK 2.77 billion (US$ 325 million). In addition, Höegh Autoliners “has received significant anchor interest from several international shipping sector specialists as well as other local and international generalist investors,” the company said in a release.
Höegh Autoliners is owned by Leif Höegh & Co Holdings AS, with 60.5 percent; A.P. Møller - Mærsk A/S with 38.2; and CEO Andreas Enger, with 1.3 percent.
The company has seen strong improvement in performance through 2021, and expects adjusted EBITDA for the full-year 2021 to be in the range of US$195 million to US$200 million, and further anticipates a strong outlook for 2022.
Photo 1: An artist's rendition of the Aurora-class vessels Höegh Autoliner will have built. CREDIT HOEGH AUTOLINERS
Photo 2: Andreas Enger, CEO of Höegh Autoliners. CREDIT HOEGH AUTOLINERS
Photo 3: Leif O. Høegh, chairman of Höegh Autoliners. CREDIT HOEGH AUTOLINERS