Hoegh LNG slices Q4 loss

Norway’s Höegh LNG has reduced its net loss in the fourth quarter of 2015 despite booking US$37 million in impairments after it halted its FLNG operations.

Höegh LNG posted a net loss after tax of $33 million in the fourth quarter, compared to $59.3 million in the same quarter a year before.  For the full year 2015, net loss after tax was at $26.8 million, as compared to $93 million in the year before.

In the fourth quarter last year, Höegh LNG reported an EBITDA of $24.6 million, as compared to $26.6 million in the previous quarter, and $5.4 million in the fourth quarter of 2014.

“The stable EBITDA is a result of the company’s strong operating performance, currently with five FSRUs in operations world-wide,” Höegh LNG’ CEO, Sveinung J. S. Støhle, said in a statement on Friday.

“We continue to see very favourable market conditions for the FSRU segment, driven by ample LNG supplies and low LNG prices, which is why Höegh LNG will focus on its objective of reaching 12 FSRUs by 2019,” Støhle added.

FSRU business

According to Höegh LNG, all its five FSRUs have operated according to contract and without incidents during the quarter.

The company’s next FSRU project, for SPEC in Colombia, is proceeding “according to schedule”, with all the required permits being obtained and the construction of the associated infrastructure in the port of Cartagena “in line with plans”, the company said.

The FSRU Höegh Grace is due to be delivered from HHI’s yard in South Korea at the end of first quarter 2016, and to arrive in Cartagena in the third quarter 2016. Commercial operations are expected to commence in the fourth quarter 2016.

Höegh LNG is currently pursuing three FSRU projects that have an expected start-up date matching the delivery of its seventh FSRU in the first quarter of 2017. In addition, the company is pursuing several FSRU projects for growth beyond the current firm newbuilding program, and in line with its option arrangements with shipyards, Höegh LNG said.