Photo: Image courtesy of Höegh LNG

Höegh LNG’s second-quarter profit dips

Höegh LNG's second quarter profit dips
Image courtesy of Höegh LNG

Norway’s floating storage and regasification unit (FSRU) giant Höegh LNG’s profit for the second quarter slipped on depreciation and increased interest expenses. 

The profit for the quarter reached $7.8 million, down from $8.5 million in the corresponding quarter of 2017, and compared to the $13.2 million in the first quarter.

The company’s total income rose from $72.3 million in the second quarter of 2017 to $75.8 million in the quarter under review, Höegh LNG said in its report.

The president and CEO of Höegh LNG Sveinung Støhle said, “during the quarter we commenced commercial operations under the three-year time charter with CNOOC for Höegh Esperanza and have subsequently reached a financial milestone by securing commitments for the debt financing for FSRU #9.”

Combined with good progress being made towards securing the debt financing for the tenth FSRU, Höegh LNG expects to be fully financed by both debt and equity well in advance of scheduled deliveries, he said.

The LNG market continues to grow as the rapidly increasing supply of LNG is absorbed by growing demand from Asian buyers. Mirroring the solid momentum in overall LNG markets, the FSRU tendering market remains active and many projects are moving forward with their plans to import LNG through floating import terminals.

Höegh LNG said in its report it is involved in several FSRU tenders with start-up in the 2019 to 2020 timeframe and has been chosen as the FSRU provider for the AIE project in Port Kembla, Australia with a targeted start-up in the first quarter of 2020.

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