Exmar: Excel LNG Tanker Charter Free from July (Belgium)

EXMAR of Belgium said in a statement that its board of directors reviewed the results for the year ending 31st December 2011 and that they are in line with the results announced on 26th January with the exception of a USD 11.5 million tax provision on the sale of the OPTI-EX® that was brought down to zero .

The operating result (EBIT) for the year amounts to USD 37.6 million (USD 87.4 million in 2010), positively influenced by the profit realized on the sale of the OPTI-EX® (USD 41.2 million) but negatively impacted by the swap of assets with BW Gas (USD -26.7 million).

The financial result has been negatively impacted by the change in fair value of interest rate derivatives entered to hedge the interest rate exposure on long-term financing of the fleet, which resulted in a non-cash unrealized loss of USD -34,0 million (USD -15.9 million in 2010), and by a USD -1.1 million unrealized USD / EUR exchange loss (USD 0.3 million profit in 2010).

The consolidated result after taxation for 2011 amounts to USD -34,0 million (USD 14.4 million in 2010). Excluding the change in fair value of hedging instruments (mark-to-market), the consolidated result after tax would have been USD 1,1 million.

Prospects 2012

‐ The LPG fleet will keep enjoying the support of a solid contract portfolio with creditworthy counterparties. As spot market conditions for the Midsize segment are improving, one must take into account the positive evolution of the market value of the vessels. Our North Sea operations are enjoying operational and financial strengths and the vessels committed to this particular trade are benefiting from premium rates. The outlook for the LPG market and in particular the Midsize Fleet is positive for the medium term with more cargoes available.

‐ The majority of the LNG fleet is expected to perform as per the underlying time-charter contracts. However the EXCEL will be charter free as from July 2012 and thanks to the positive upside in LNG charter rates, could favorably impact the LNG contribution to the group.

‐ The Offshore division will continue to further strengthen its position with the delivery later this year of an FSO to Sonangol and a barge to Nigeria. All those contracts will cover a good portion of 2012 with some optional extensions. The KISSAMA will be delivered to TOTAL GABON end of March for a 6 months firm contract with extensions options. The result of the offshore division will be positively influenced by the balance (USD 24 million) of the profit on the sale of the OPTI-EX® booked in the first quarter 2012.

[mappress]

LNG World News Staff, March 29, 2012