Höegh LNG Partners, the Bermuda-based limited partnership formed by Norway’s floating giant Höegh LNG, reported a drop in profit for the first three months of the year.
The partnership reported a net income of $14.1 million for the three months ended March 31, 2019, dropping 35 percent from $21.7 million reported in the corresponding quarter last year.
In its quarterly report, the partnership said the net profit was impacted by unrealized losses on derivative instruments for the first quarter of 2019 and unrealized gains on derivative instruments for the first quarter of 2018.
Steffen Føreid, CEO and CFO said, “Höegh LNG Partners’ assets performed according to contract during the first quarter with 100 percent availability, underpinning the partnership’s well-supported distribution. The previously announced refinancing on attractive terms also had a positive bearing.”
He added that with new LNG production facilities in the US and around the world coming on stream, global LNG trade continues to increase. This, together with competitive LNG pricing and environmental arguments, are driving interest in FSRUs world-wide.
Looking forward, the partnership expects a number of off-hire days as its FSRUs PGN FSRU Lampung and the Höegh Gallant enter planned drydocks or class surveys during the second quarter of 2019.
In addition, the partnership will have the right to purchase four FSRUs owned by its parent company Höegh LNG, should certain conditions be met. The partnership will have the right to purchase the Höegh Giant, the Höegh Esperanza, Höegh Gannet and SHI Hull No. 2220 following acceptance by the respective charterer of the related FSRU under a contract of five years or more, subject to reaching an agreement with Höegh LNG regarding the purchase price.