Golar LNG Partners profit jumps quarter-on-quarter

Golar LNG Partners profit jumps quarter-on-quarterImage courtesy of Golar LNG Partners

Nasdaq-listed Golar LNG Partners, a limited partnership formed by Golar LNG, reported a net income of $28.4 million. 

This compares to net income of $14.8 million for the first quarter of 2018 and $53.8 million for the second quarter of 2017, the company said in its report.

Total operating revenues increased, from $74.2 million in the first quarter to $84.2 million in the quarter under review.

Two developments contributed to the $10 million increase, first being the contractual seasonal downtime for the FSRU Golar Igloo resulted in 55 days off-hire during the first quarter. This FSRU was on hire for all of the second quarter.

Secondly, as part of an ongoing claim, a further tranche of previously overpaid Brazilian withholding tax in respect of the FSRUs Golar Spirit and Golar Winter was refunded.

The partnership’s fleet achieved 100 percent availability for scheduled operations during the quarter.  After accounting for the warm layup of Golar Mazo and idle time in the spot market for Golar Maria, utilization of 85 percent was recorded for the quarter.

Partnership’s two vessels are scheduled to undergo drydocking during the third quarter with the FSRU Golar Freeze undergoing certain modifications to ensure compatibility with the vessel’s new receiving terminal. Works are expected to be completed in October. The second vessel is the LNG carrier Methane Princess that is expected to be off hire for 33 days.

Looking at the future, the company noted that the shipping market is expected to recover with a “material step-up in inquiries for long-term vessel charters, the recent ten-month fixture for the Golar Maria, the emerging interest in charters for the Golar Mazo and the lower than theoretical rate differential between steam turbine and newer vessels are all reassuring indicators of an underlying recovery.” 

The recovering shipping market also represents a solid backstop should the FSRU Golar Igloo contract not be renewed by her current charterer, the partnership said.

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