Golar LNG Partners posts higher net profit in Q3

Image courtesy of Golar LNG Partners
Image courtesy of Golar LNG Partners

Golar LNG Partners, a limited partnership formed by Golar LNG, said its net income rose 71 percent in the third quarter as compared to the same period in the year before.

The MLP posted a net income of US$56 million in the third quarter, compared to $32.7 million in 2015.

Total operating revenues dropped to $113.8 million from $114.1 million in the third quarter last year.

When compared to the quarter before, revenues rose by $2 million due to “an additional calendar day in the quarter as well as a positive effect of time charter rate operating expense element escalation for certain vessels,” Golar LNG Partners said.

FSRU Golar Tundra still at anchor off Ghana

The MLP said that the FSRU Golar Tundra charterers, West Africa Gas Limited (“WAGL”) received parliamentary approval for their 10-year gas sales agreement with the government of Ghana in October. However, the vessel still remains at anchor off the coast of Ghana.

“Golar have commenced legal proceedings in order to collect amounts due under the charter,” Golar LNG Partners said, noting that talks continue to find a mutually agreeable way forward that bridges the original and later required start dates.

Golar has already received the first payment from WAGL for amounts due under the charter on November 29, 2016. The Partnership will continue to receive a daily fee plus operating costs from Golar, totalling approximately $2.6 million per month.

It was, however, said that should the situation continue beyond May 23, 2017, the Partnership will have the option to put the FSRU back to Golar.

Shipping market on the path of recovery

The number of cargoes traded in 2016 has increased by approximately 60 percent compared to 2015.

There are clear signs that the shipping market is on a path to recovery and this should improve the Partnership’s negotiating position in respect of the three LNG carriers that come off contract at the end of 2017, the Golar Grand, Golar Maria and the 60 percent owned Golar Mazo.

The MLP added that the improvement in “short-term sentiment is also encouraging charterers’ interest in longer-term charters.”

 

LNG World News Staff

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