Photo: Courtesy of Hoegh LNG

Hoegh LNG logs quarterly net loss

Norway-based Hoegh LNG recorded a net loss in the first quarter saying it had a limited impact on its operations from the Covid-19 coronavirus pandemic.

Hoegh LNG vessels
Image courtesy of Hoegh LNG

Höegh LNG posted a net loss of $1 million for the first quarter this year, compared to a profit of 4.5 million in the same quarter a year ago and 4 million in the preceding quarter.

The Norwegian LNG company and its units had a total income of $86.7 million in the quarter, compared with $94.2 million in the preceding quarter.

Hoegh LNG attributed the decline to idle time and scheduled off-hire for two vessels trading as LNG carriers, and a net foreign exchange loss due to the weakening of the Norwegian krone against the US dollar.

The Norwegian company says outbreak of the Covid-19 virus created significant uncertainty and volatility in both commodity and
financial markets during the quarter.

Despite this, global LNG trade continued to grow in the quarter, but forecasts for near-term demand growth have been revised downwards, it said.

Höegh LNG has experienced no known cases of Covid-19 infection among any employees onshore or offshore and saw “limited impact” on its operations.

The only direct effect on the company’s operations are delays in crew changes but the situation is improving and the company has conducted crew changes on three of its vessels in recent weeks.

All of the company’s FSRUs and LNG carriers are fully operational and crewed in accordance with relevant safety requirements.

The Norwegian company also saw its contract coverage rising to close to 100 per cent for 2020 and secured two new FSRU contracts in Latin America.

“While the Covid-19 crisis has caused major disruptions and uncertainties to the energy markets, the demand for FSRUs does not appear to have been significantly affected, as can be seen by the selection of Hoegh LNG as preferred bidder for two new FSRU projects in the quarter”, Höegh LNG chief executive Sveinung J.S. Støhle said.

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