Höegh LNG falls to second quarter loss

Norway’s floating storage and regasification unit (FSRU) giant Höegh LNG has slipped to a loss for the second quarter of 2019 due to seasonal variations and dry-docking costs.

Höegh LNG said on Thursday that the loss for the quarter reached $3.6 million, below the red line when compared with the $7.8 million profit the company reported in the corresponding quarter of 2017, and the $4.5 million profit from the first quarter.

The company’s total income was around the same figure as it reported $75.5 million in the quarter, which is a slight drop from the to $75.8 million in the second quarter of 2018.

The president and CEO of Höegh LNG Sveinung Støhle said: “Höegh LNG’s results for Q219 are negatively affected by seasonal variations and dry docking costs. Adjusted for these effects, our underlying numbers are in line with previous quarters.

“I am very pleased to see that the LNG market continues its rapid growth by increasing 16 percent in the first half of 2019, driven by the continued coal to gas switch and ample LNG supplies available at very competitive prices across the market.

“This is further reflected by the important progress being made on all FSRU projects where the company is already selected as the FSRU provider or has won exclusivity.

“In addition, the company is engaged in negotiations and business development activities that aims to see its complete fleet of FSRUs on long-term FSRU contracts by the end of 2021.“