Höegh LNG Optimistic on FSRU Demand as It Posts Black in Q416

Image Courtesy: Höegh LNG

Floating energy solutions provider Höegh LNG posted a profit after tax of USD 0.8 million in the fourth quarter of 2016, returning to black when compared to the same period from 2015 when a loss of USD 33 million was reported.

EBITDA for the fourth quarter of 2016 amounted to USD 31.2 million, compared with USD 25 million for the corresponding period in 2015.

According to the group, the increase in EBITDA reflects the start-up of Höegh Grace under the long-term floating storage and regasification unit (FSRU) contract with Sociedad Portuaria El Cayao S.A. E.S.P. (SPEC) in December 2016. The rise in EBITDA was also due to reduced operating expenses and the fact that all units were operated in accordance with their long-term contracts in 4Q 2016.

During the fourth quarter of 2016, Höegh LNG signed a contract with Quantum Power Ghana Gas Limited to provide an FSRU for the Tema LNG import terminal located close to Accra in Ghana. Following this, the company’s capital was freed up by the partial sale of Höegh Grace to Höegh LNG Partners.

Höegh LNG subsequently entered into a letter of intent for a new FSRU with Samsung Heavy Industries, before a new 20-year contract was inked with Global Energy Infrastructure Limited (GEIL) in Pakistan and an additional FSRU shipbuilding contract was placed at Hyundai Heavy Industries.

Furthermore, Höegh LNG placed NOK 1,500 million (USD 179 million) in the Nordic bond market, with the proceeds being partially used to refinance a NOK 750 million bond which matures in October 2017.

The company said it continues to operate in a positive market environment, since accelerating LNG exports are being mirrored by an increase in the number of FSRU contract awards.

“With a solid operational and financial platform in place, and backed by a positive market environment, Höegh LNG continues to pursue additional business opportunities,” Höegh LNG said in its outlook for 2017.

By placing new orders in 4Q 2016, the company moves forward towards its goal of 12 FSRUs by 2019. Currently, the firm has 10 FSRUs in operation or under construction.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jan 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >