Hoegh LNG enters deal to charter one of its FSRUs

Floating player Hoegh LNG said it has entered into a deal to charter one of the company’s floating storage and regasification units (FSRUs).

The firm said in its third-quarter report on Thursday it had signed a binding heads of agreement with a “large utility customer” to charter one FSRU.

Hoegh LNG did not reveal any additional information.

The group’s fleet consists of ten modern FSRUs and two LNG carriers. Hoegh LNG Partners operates five of these vessels and recently chartered Hoegh Gallant FSRU to Wes Edens-led New Fortress Energy.

Hoegh LNG said its main commercial focus is to conclude firm long-term FSRU employment for its three units currently trading on interim LNG carrier contracts.

According to the quarterly report, Esperanza, chartered by Vitol, Gannet, chartered by Trafigura, but also the Cheniere-chartered Galleon are the vessels in question.

The FSRU Hoegh Galleon should go on a long-term contract with Australian Industrial Energy for the latter’s proposed Port Kembla import terminal in New South Wales.

However, AIE, owned by Australian businessman Andrew Forrest’s Squadron Energy, still needs to take a final investment decision on the project.

Net loss

The company logged a net loss of $3.1 million in the third quarter, compared to a loss of $2.5 in the same quarter last year and $19.4 million in the second quarter.

Hoegh LNG reported a total income of $86.1 million for the quarter, compared with $81.7 million in the corresponding quarter and $87 million in the prior quarter.

Also, Hoegh LNG said its Ebitda had reached $56.1 million, down from 52.9 million in the corresponding quarter but up from $52.7 million in the preceding three months.

Hoegh LNG’s CEO Sveinung Støhle stepped down from the position on November 1 after 15 years at the helm of the floating LNG player.

Greek shipping giant Angelicoussis Group appointed Stohle as the company’s new deputy chief executive officer.

Hoegh LNG said its board “is undertaking a process to select a successor for this position.”

The firm has appointed Thor Jørgen Guttormsen to act as the company’s interim president and CEO in the meantime.

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