Norway-based FSRU provider, Höegh LNG, reported a profit of $1.1 million for the third quarter of 2017, down from the $3.3 million in the corresponding period last year.
The company’s total income for the period reached $64 million, rising above the $58 million reported in the third quarter of 2016, Höegh LNG’s quarterly report shows.
Commenting on the third quarter, president and CEO of Höegh LNG Sveinung Støhle said, “Disregarding non-recurring items, we are pleased that the underlying results for the quarter are record high with EBITDA of around USD 41 million and a net profit of around $11 million.”
The company experienced delays regarding FSRU contracts with future start-up dates during 2017, but, despite that, Støhle added the activity in the FSRU and LNGC markets is high.
The company signed a time charter deal with Gas Natural SDG, under which it will provide an FSRU to GNF’s portfolio of assets.
Höegh LNG will earn an LNG carrier spot-market-linked day rate until GNF puts the FSRU into regasification operations, after which it will earn a pre-defined rate, the company said adding the time-charter starts in early 2018 with an initial term of three years, or longer if on FSRU terms. The vessel assigned to the contract initially is the FSRU Höegh Giant.
All seven of Höegh LNG’s FSRUs and two LNG carriers operated in accordance with their respective contracts with technical availability at 100 percent. The FSRUs in operation delivered 17 percent more gas in the third quarter than in the second quarter of 2017, the report shows.
Höegh LNG added that the long-term outlook for the FSRU market remains solid because of increasing LNG supply and attractive pricing of the commodity.