Höegh LNG’s FSRU fleet is rapidly approaching completion and it sees ‘steady progress’ in upcoming projects
In a results call on 22 August, the Oslo-headquartered floating storage and regasification unit (FSRU) and LNG carrier owner-operator announced earnings before interest, tax, depreciation and amortisation (EBITDA) of US$45.7M and net losses of US$3.6M in its Q2 results presentation.
“Höegh LNG’s results for Q2 2019 are negatively affected by seasonal variations and drydocking costs,” said chief executive Sveninung Støhle, adding “Adjusted for these effects our underlying numbers are in line with previous quarters.”
Mr Støhle noted that on delivery of FSRU Höegh Galleon, which is due to be delivered from South Korea’s Samsung Heavy Industries Co “in a few days,” the company’s newbuild programme of eight FSRUs will be complete and its FSRU fleet will comprise 10 vessels. Mr Støhle also noted Höegh Galleon has already been contracted by Houston-based Cheniere Energy on an interim time charter basis, as announced in July.
In addition to Höegh Galleon’s completion, class renewals have also been completed for FSRUs Höegh Gallant and PGN FSRU Lampung, Mr Støhle added.
Höegh LNG is involved with four near-term FSRU projects, which Mr Støhle also provided updates on.
The most advanced of these is the Port Kembla project with Australian Industrial Energy, which is on schedule for a final investment decision (FID) by the end of 2019. The project has received governmental approval and had a construction contract signed and has also achieved its first gas sales agreement.
The Crib Point project with AGL, also in Australia, is also quite advanced with the environmental approval process, the main milestone that needs to be achieved before FID, well under way, Mr Støhle said.
Höegh has exclusivity in a long-term contract in a third project, for which the unnamed client is seeking permitting and governmental approval; and is in a tender round with one other company for a fourth project.
“All in all, we are pleased with the process,” said Mr Støhle, adding “We also see that market activity is picking up, as an example [of which] we have seen three new FSRU projects coming to market.”
“That for me is a sign there is a strong response on the import side from the fact that LNG is available and at very competitive prices,” he said.