Golar LNG’s earnings jump on improving market

LNG shipper Golar reported a net income of $66.2 million, nearly doubling on the previous quarter’s $36.3 million. 

Rising LNG production and ton-miles together with a seasonal increase in trading activity absorbed vessels resulting in improving utilization and increasing charter rates.

Fleet utilization increased from 62 percent in the second quarter to 86 percent in the third quarter, Golar LNG said in a quarterly report.

JKM and European gas prices ended the quarter up 86 percent and 43 percent respectively year-on-year, driven by strong demand from China and Korea.

Comprised of a TCE of $48,100 in respect of its TFDE fleet and $11,000 for its two steam vessels, Golar recorded a third-quarter TCE of $41,200 per day, up 210 percent on the $13,300 per day achieved in the third quarter of 2017 and 110 percent on the $19,600 achieved in the previous quarter.

The company expects the trend to continue predicting TCE rates for the quarter to reach anywhere between $70,000 and $80,000 and even up to $95,000 for TDFE vessels.