Golar LNG posted a net loss of $38.0 million for the fourth quarter 2014, compared to a $7.8 million net profit in Q3.
The company said in a statement that the net loss is predominantly driven by significant non-cash financial and other non-recurring charges amounting to $32.7 million.
During the quarter, Golar LNG has taken delivery of LNG newbuilds, Golar Frost and Golar Glacier as well as the FSRU Golar Eskimo. The company informed that the utilization of the spot fleet increased 1% to 57% increasing company’s revenue to $32.6 million compared to the $26.0 million in Q3.
Golar LNG added that the conversion of the Golar Hilli into an FLNG vessel was ahead of schedule by end-January at 30.3%. During the third quarter, the company also signed the contract to convert a second LNG carrier, the Gimi, into a floating liquefaction vessel.
The market for chartering of LNG shipping is expected to be weak for the first half of 2015. The start-up of Queensland Curtis in December 2014, the continued successful ramp up of the new Papua New Guinea project and increasing pressure to retire additional less efficient first generation carriers may provide some support, the company said.
Golar’s target is to maximize the utilization of the fleet in this period. In the second half of 2015 significant new LNG production capacity is expected to start up. Together with the limited influence of new tonnage entering the market and the seasonal strengthening, Golar expects the LNG carrier market for the second half of the year to show clear improvements.
The current low oil price is also reducing substantially the bunker costs for idling and positioning spot vessels, Golar added.
LNG World News Staff; Image: GNL Quintero