Norway: Hoegh LNG Posts Q2 Results

Höegh LNG announced results for the period ended 30 June 2011.

Highlights

– Höegh LNG reports operating profit before depreciation of USD 7.3 million and a net loss before tax of USD 3.0 million for the second quarter 2011

– Firm orders placed for two Floating Storage and Regasification Units (FSRU) with options for 1+1+2

– Firm financing offers received for a USD 272 million debt facility for the financing of two FSRUs

– Höegh LNG selected the preferred bidder for the Medan FSRU project in North Sumatra, Indonesia. Exclusive negotiations with the project owner, Perusahaan Gas Negara (PGN), on-going

– USD 132 million in new equity raised and the Company’s shares listed on the Oslo Stock Exchange

– Agreement to purchase the LNG carrier “LNG Libra” entered into

– Pre-qualified for the next FSRU project in Indonesia (Central Java)

Höegh LNG Holdings Ltd. reported USD 26.5 million in total consolidated income for the second quarter 2011, up from USD 23.2 million in the same quarter last year. The increase is mainly due to higher time-charter income following delivery of GDF Suez Cape Ann and higher management income following delivery of STX Frontier, both in June 2010.

Operating expenses increased to USD 7.3 million in the second quarter 2011 from USD 6.2 million in the same period last year. The increase is mainly due to the delivery of GDF Suez Cape Ann. Operating expenses are covered by the charterer on a pass-through basis for all but one vessel.

Administrative expenses totalled USD 3.7 million in the second quarter 2011, compared to USD 2.4 million in the second quarter 2010. The increase reflects a decline in the USD/NOK exchange rate increasing the cost of administrative expenses paid in NOK, expensed transaction costs relating to the initial public offering (“IPO”) of the shares in the Company, and additions of resources in particular in the regasification area in order to facilitate further growth.

Project development expenses were USD 3.2 million in the second quarter 2011, up from USD 2.1 million in the same quarter last year. The increase mainly reflects the transition from a technical to a commercial stage in the various development projects, whereby costs relating to commercial activities are expensed. The total amount spent on project development (expensed and capitalized) is lower in the second quarter 2011 compared to the same period last year.

Interest expenses totalled USD 6.1 million for the second quarter, compared to USD 5.0 million in the same quarter last year. The increase reflects interest expenses relating to the financing of GDF Suez Cape Ann from its delivery.

For the first half of 2011, total income was USD 52.5 million, an increase from USD 43.8 million in the first half of 2010. Net loss before tax was USD 7.3 million in the first half of 2011, compared to a net loss of USD 3.1 million in the first half of 2010.

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Source: Höegh LNG, September 2, 2011;