Norwegian floating LNG giant Höegh LNG reported a net profit of US$11.4 million for the first quarter, rising significantly $828,000 from the last three months in 2016.
According to the latest quarterly report, Höegh LNG’s profit jumped 81.6 percent from the $6.3 million reported in the first quarter of 2016.
The company attributed the higher profit to the higher earnings before interest, tax, depreciation and amortization (EBITDA), lower net financial expenses and a reduction in taxes.
Höegh LNG reported EBITDA of $36.7 million for the first quarter of 2017, compared with $31.2 million for the previous quarter.
The increase reflects the start-up of Höegh Grace under the long-term FSRU contract with SPEC in December 2016, offset by higher operating expenses and lower management income.
All six FSRUs and two LNG carriers in Höegh LNG’s fleet operated in accordance with contracts during the quarter, Höegh LNG said in its report adding that the FSRUs in operation delivered 17 percent more gas to their charterers than in the fourth quarter of 2016, and 43 percent more than in the first quarter of 2016.
The company is currently in discussion with several potential counterparties in projects at various stages of development to secure new deals.
Currently, Höegh LNG has three FSRUs under construction at Hyundai Heavy Industries and Samsung Heavy Industries.
Reflecting on the LNG market, the report shows that the LNG demand rose by 13 percent from levels in the first quarter of 2016 to around 75 million tons for the first quarter of 2017.
The greatest contributors to year-on-year demand growth are Japan, South Korea, China, Turkey, Pakistan, Thailand and Portugal, while Australia and the USA are the two largest drivers behind LNG supply growth.
Höegh LNG now has a total of 10 FSRUs in operation and on order and remains confident it will reach its goal of a fleet of 12 units in operation or under construction by 2019.