Golar LNG posts loss in Q3
Bermuda-based Golar LNG on Monday posted a net loss of $143 million for the third quarter of this year.
Golar LNG’s charter revenues rose to $24.3 million in the third quarter from $16.9 due to an increase in utilization of the company’s fleet that was at 44 percent compared to 33 percent in the previous quarter, the company’s quarterly report reveals.
The “Cool Pool” formation comprising Golar, Gaslog and Dynagas was completed and commenced operations on October 1, with 10 of the 17 spot voyage charters concluded globally during October being with the Cool Pool.
According to Golar’s report, the LNG carrier spot market is now showing the first real signs of recovery on the back of new production capacity starting up and the “very welcome acceptance” by the market of the Cool Pool. The speed of this recovery will in part be a function of how trade patterns evolve over the coming months.
The market for FSRU’s has entered into a new phase. Whereas, previously, potential new FSRU projects were frustrated by the inability to secure LNG supply, Golar said the holders of uncontracted LNG supply are motivated to accelerate FSRU projects in an effort to reduce their exposure.
The company expects the uncontracted FSRU capacity to be absorbed shortly based on the customer inquiries.
Golar LNG forecasts an improvement in its operating earnings in the coming quarters, driven by an improved shipping market and Golar Tundra commencing operations in the second quarter of 2016.
It also expects positive outcomes from the ongoing contract discussions in the FLNG business within the next six months.
GoFLNG Hilli conversion progress remains on schedule as during the quarter the vessel re-entered Keppel drydock and prefabricated sponsons are in the process of being attached to the hull which will continue for the remainder of this year.
Pre-fabrication of the process topside modules and pipe racks has now commenced with most major equipment items for the conversion now delivered to the shipyard.
LNG World News Staff; Image: Golar LNG