IN A case of unfortunate timing Höegh Autoliners yesterday announced a reduction in dividends, attributable to the additional costs to be incurred by USTR port charges on foreign-owned PCTCs, literally moments before presidents Trump and Xi declared a 12-month pause.
Höegh shares fell on the Oslo Bourse after the dividend news, which was released at the company’s third-quarter results briefing. The company estimated the charges would cost USD 60-70 million and warned tariffs would likely affect trade volumes.
Nevertheless Höegh Autoliners said it continued to report solid financial performance in the third quarter of 2025. The gross revenue was USD 370 million/NOK 3,941 million, operating profit (EBITDA) was USD 155 million/NOK 1,650 million, and net profit after tax was USD 131 million/NOK 1,395 million.
Highlights of the quarter:
CEO Andreas Enger said: “Q3 is another strong quarter, however, our operating costs have been adversely impacted by weakening trade balance, a trend that is likely to persist.”
With regard to the outlook, the company said tariffs may over time result in lower volumes transported. “Significant changes to new U.S. port fees were announced 10 October with implementation from 14 October. The yearly impact is estimated to ~USD 60-70 million; the company is working diligently to mitigate the impact.
“Q4 operational performance is projected slightly below the Q3 EBITDA. In addition, USTR impact is expected to be ~USD 20 million for the quarter.”
Höegh Autoliners has adjusted the calculation method for its dividend distributions to reflect actual cash generated above a targeted minimum cash balance at the end of each preceding quarter. The underlying dividend policy remains unchanged, with the intent to distribute all excess cash generation.
“This adjustment reflects the need to navigate a rapidly changing market environment with reduced visibility and supports strengthened liquidity management. As a result, there will be a one-off periodization of payouts, reducing the distribution for Q3 2025. As of the reporting date, the company has no other intended uses for capital allocation beyond shareholder distributions.”
Höegh Autoliners named the sixth of its new Aurora class of PCTCs Höegh Moonlight in Gothenburg on 3 September and the vessel has recently called Australian and NZ ports on its inaugural trip from Eurpe to Oceania.
The eighth of the class, Höegh Rainbow was launched in China last week and concludes the LNG dual-fuel set of PCTCs, with the following four ships to be delivered from 2027 as ammonia dual-fuelled.