Exmar Posts Q1 Results

Exmar of Belgium said its consolidated result for the first quarter of this year amounted to USD 14.2 million compared to USD 65.8 million for the first quarter 2013.

As a reminder, the result for the first quarter 2013 included a capital gain (USD 52.8 million) realized on the sale of 50% of Exmar LPG to Teekay LNG Partners.

Exmar also revealed that it  has applied a new depreciation policy for its LNG fleet as of January 1st 2014. The economic life for the company’s LNG vessels has been extended from 30 to 35 years.

“This change in accounting estimate is reflected as from January 1, 2014 and comparative figures have not been restated. Depreciation cost relating to LNG vessels is, therefore, lower by USD 0.8 million for the first quarter of 2014,”  the company said in a statement.

Exmar’s all LNG’s and LNGRV’s were in service and have fully contributed during this first quarter under their respective time-charters, except for EXCEL who has been idle since mid-December, due to tight product and longer tonnage markets with the increasing number of larger more efficient newbuildings being delivered.

Despite such market environment ConocoPhillips confirmed the charter of the vessel for 6 months (+2 months option) starting in the second quarter 2014, the company added.