Excelerate reports lower Q1 net income, in talks for LNG infrastructure investments

US FSRU player Excelerate Energy reported lower net income and adjusted Ebitda in the first quarter of this year compared to the same quarter last year. The company said it is in “advanced” talks with “several counterparties” for LNG infrastructure investments and strategic partnerships.

Excelerate said net income reached $28.1 million in the first quarter, down from $30.7 million in the comparable quarter last year and up from $20 million in the prior quarter.

Adjusted Ebitda dropped to $75.4 million in the first quarter from $79.9 million in the comparable quarter and it rose compared to $71.4 million in the prior quarter, while revenues dropped from $211.1 million in the first quarter last year to $200.1 million in the first quarter this year.

Revenues also dropped compared to $240.1 million in the prior quarter.

Excelerate said net income and Adjusted Ebitda for the first quarter of 2024 decreased from the prior year first quarter primarily due to the drydocking of the FSRU Summit LNG in Bangladesh, and a decrease in Brazil gas sales as the FSRU Sequoia transitioned to a time charter party agreement in Brazil.

This was partially offset by a full quarter of Excelerate’s charter with Germany, the commencement of the FSRU Sequoia time charter party agreement in Brazil, and the impact of various charter rate increases executed during 2023, it said.

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

Compared to the prior quarter, net Income and Adjusted Ebitda increased primarily due to the timing of vessel operating costs, and the timing of certain selling, general and administrative expenses, including business development expenditures, Excelerate said.

Guidance reaffirmed

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.

Excelerate is reaffirming its 2024 guidance range.

The company expects full year 2024 Adjusted Ebitda to range between $315 million and $335 million.

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.

LNG infrastructure investments

Steven Kobos, president and CEO of Excelerate said that the firm delivered “strong” first quarter financial results.

“Our performance during the quarter reflects the fundamental earnings power of Excelerate’s core regasification business that provides us with the financial strength and flexibility to pursue new opportunities around the world,” he said.

Kobos said Excelerate is committed to advancing its “powerful growth story”.

“We are in advanced discussions with several counterparties for LNG infrastructure investments and strategic partnerships that would expand our global presence and could serve as catalysts to build on our expected earnings growth,” he said.

Kobos did not provide further details.

Excelerate will hold its earnings call later on Thursday.

Earlier this year, state-owned LNG giant QatarEnergy has signed a long-term contract with Excelerate to supply Bangladesh with LNG.

Under the SPA, Excelerate will buy up to one million tons per annum of LNG from QatarEnergy to be delivered to floating storage and regasification units in Bangladesh for 15 years starting in January 2026, according to QatarEnergy.

Excelerate Energy signed in November last year a 15-year LNG supply deal with Bangladesh’s state-owned Petrobangla.

Under the SPA, Petrobangla has agreed to purchase 0.85 to 1 Mtpa of LNG from Excelerate beginning in January 2026.

Excelerate will deliver 0.85 Mtpa of LNG in 2026 and 2027 and 1 Mtpa from 2028 to 2040.

Bangladesh currently imports LNG via its first LNG import facility, Moheshkhali Floating LNG or MLNG, operated by Petrobangla, and via Summit Group’s FSRU-based terminal.

Both of these facilities feature Excelerate’s FSRUs and the US firm is also developing the Payra project in Bangladesh.

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