Golar LNG’s net loss deepens in second quarter
Bermuda-based Golar LNG on Wednesday reported a net loss of $73.8 million for the second quarter of this year.
The company’s operating revenues, however, shown a slight increase from $25.1 million in the first quarter to $28.4 million during the quarter under review.
The shipping market remained relatively flat for most of the second quarter Golar LNG said, noting a pickup in utilization toward the end of the quarter which contributed to a small rise in time charter revenues that increased from $20.1 million in the first quarter to $24.0 million in the second quarter.
Subsequent to the second quarter, and as anticipated, chartering activity has improved as some projects commence and ramp up production.
Owner expectations are firming in response and this is contributing to a gradual recovery in shipping rates, the re-emergence of round trip economics and a widening bid-ask spread for 2018 fixtures, the company said.
Whilst approximately 55 vessels are expected to deliver in 2017, the tonnage required to meet incremental production is greater. The disconnect between vessel deliveries and increasing LNG production is expected to positively widen in 2018, Golar LNG said.
Looking forward, the predicted third quarter upturn in the shipping business is now underway and appears to be on a more sustainable footing. July 2017 represented the most active month for spot voyages on record.
While the short term outlook for the company has been negatively influenced by the indicated 6-week delay to Hilli Episeyo start-up and financing delays in respect of the Fortuna FLNG project, Golar LNG said its long-term outlook has improved considerably.