Höegh LNG’s fourth quarter profit edges up

Norway’s floating storage and regasification unit (FSRU) giant Höegh LNG reported improved figures for the last quarter of 2019. 

The company said in its quarterly report that the net profit edged up from $3.2 million in the third quarter of 2019 to $4 million in the quarter under review.

Höegh LNG reported a total income of $94.2 million for the fourth quarter of 2019, compared with $82.2 million in the preceding quarter.

This increase mainly reflects the first full quarter of operations for Höegh Galleon, a higher spot rate achieved for Höegh Giant in the fourth quarter and operation of Höegh Esperanza in FSRU mode for approximately half the quarter.

However, for the full year 2019, Höegh LNG’s net profit fell to $8 million from $72 million in 2018. The decrease in net profit is mainly due to the one-off revenue recognition from the Egas contract in 2018.

The president and CEO of Höegh LNG Sveinung Støhle noted, “I am pleased to report that Höegh LNG’s results for Q4 2019 improved compared to the previous quarter due to solid operating performance across the fleet, seasonal variations in the rate for Höegh Esperanza and Höegh Galleon contributing for a full quarter.”

He added that the outlook for the industry is optimistic since global LNG trade continues to grow.

“The competitive LNG price clearly has a positive effect on LNG demand, supporting the demand for additional import facilities, where FSRUs have an advantage due to the short time to market. Looking forward we are obviously concerned with the potential effects of the Coronavirus outbreak, but this has not had any direct effect on HLNG’s personnel, operations or revenues,” concluded Støhle.

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