Höegh LNG swings to profit in Q3

Norway’s floating storage and regasification unit (FSRU) giant Höegh LNG reported a return to profit in the third quarter of the year. 

The company reported a net profit of $3.2 million for the quarter ending September 30, 2019, which compares to a $3.6 million loss in the previous quarter.

However, compared to the corresponding quarter in 2018, when the company reported a net income of $5.9 million, this is a 46.9 percent drop.

The company’s total income for the period reached $82.2 million, up from the $75.5 million in the previous quarter, and flat compared to the corresponding quarter last year.

The quarter-on-quarter increase mainly reflects the delivery of Höegh Galleon and a higher spot rate achieved for Höegh Giant in the third quarter, as well as the off-hire of Höegh Gallant in the second quarter, Höegh LNG said in its report.

The president and CEO of Höegh LNG Sveinung Støhle said, “Höegh LNG’s results for Q3 2019 shows strong improvement compared to the previous quarter due to no negative one-off effects and solid operating performance across the fleet.”

He added that there is a “continued healthy demand for FSRUs in the market, as reflected by two new projects where Höegh LNG is participating in the formal tender process.”

The rapid growth in the LNG market continues with 15 percent volume growth year to date driven by more LNG coming to the market at competitive prices, which supports continued demand for LNG, particularly in the high growth economies in Asia, he said.