Excelerate reports higher net income in 2023

US FSRU player Excelerate Energy reported higher net income and adjusted Ebitda in 2023 mainly due to new charters in Finland and Germany.

Besides new charters, net income rose 58.5 percent to $126.8 million in 2023 due to higher rates on charters in Brazil, Argentina, and the UAE, higher direct margin on gas sales, and lower operating lease expense due to the acquisition of the FSRU Sequoia, Excelerate said.

Adjusted Ebitda rose to $346.8 million in 2023 from $296.4 million in the year before, while revenues dropped from $2.47 billion in 2022 to $1.16 billion last year.

Last year, Excelerate Energy’s 150,900-cbm FSRU Exemplar, which serves Gasgrid’s import facility in Finland’s Inkoo, started supplying gas to the grid.

Excelerate’s FSRU Excelsior is currently located at the Navantia yard in El Ferrol, Spain for a planned technical stop ahead of the start of its job in Germany where it will serve the second DET-operated terminal in Wilhelmshaven later this year.

The US firm operates ten FSRUs, one of the world’s largest fleets of such vessels, and these units are located around the globe, including in Europe, Brazil, Bangladesh, and Pakistan.

Excelerate also ordered one 174,000-cbm FSRU at South Korea’s Hyundai Heavy Industries in 2022. It will pay about $332 million for the vessel which is scheduled for delivery by June 2026.

The company expects full year 2024 Adjusted Ebitda to range between $315 million and $335 million, and it authorized up to $50 million of Class A common stock repurchases through February 2026.

Excelerate expects committed growth capex, which is defined as capital allocated and committed to specific investments currently in execution, to range between $70 million and $80 million in 2024.

“Exceptionally strong” year

Steven Kobos, president and CEO of Excelerate said that the firm delivered an “exceptionally strong” year of financial results in 2023.

“The consistent earnings contribution from our core regasification business and the solid performance of our contracts in Brazil highlighted the unique potential of our integrated strategy,” he said.

“In 2024, Excelerate Energy is committed to moving from strategy to action. We remain focused on executing our growth strategy and optimizing our business to deliver superior returns for our shareholders,” he said.

“Additionally, we will be using our balance sheet to return capital to shareholders through a new $50 million share repurchase program while maintaining the flexibility to pursue our organic and inorganic growth opportunities,” Kobos said.

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