Golar Partners swings to profit in third quarter

Nasdaq-listed Golar Partners, a limited partnership formed by Golar LNG, reported a net of $7.9 million for the third quarter of 2019.

This compares to a net loss of $5.5 million reported in the second quarter of 2019 and net income of $49.0 million for the corresponding quarter of 2018, Golar Partners said in its statement.

As a result of one additional day in the quarter, operating revenues, increased $0.7 million from $105.7 million in the second quarter to $106.4 million in the quarter under review.

Although the spot market for steam turbine vessels remained subdued for most of the third quarter, a rapid tightening of the shipping market in late September meant that these vessels have since represented the only available tonnage on more than one occasion.  The Golar Maria secured close to full utilization in the quarter and the Golar Grand operated under its time charter at a  higher average daily rate whilst the Golar Mazo remained idle throughout the quarter.

Collectively, the third-quarter average daily TCE achieved by these three carriers was at $18,200, approximately 9 percent lower than the previous quarter..

The partnership added that no vessels were drydocked during the third quarter and fleet utilization at 88 percent was in line with the prior quarter.

FSRU  Golar Eskimo is currently undergoing an in-water class renewal, akin to a drydock. As this is taking place during a scheduled maintenance window no off-
hire is expected. Golar Mazo is scheduled to be drydocked in early 2020.

Looking ahead, Golar Partners said the fourth quarter distribution coverage ratio is expected to be approximately in line with third-quarter levels.

Further ahead,  new business for the  Golar Maria and the FSRU  Golar Igloo reduces re-contracting risk and adds to revenue backlog, which now stands at $2.1 billion as of September 30, 2019. The Partnership continues to pursue opportunities to redeploy the Golar Spirit and Golar Mazo.