Hoegh LNG posts quarterly net loss

Norway’s Hoegh LNG recorded a net loss in the first quarter saying it had a “limited” impact on its operations from the Covid-19 coronavirus pandemic.

Höegh LNG posted a net loss of $1 million for the first quarter this year, compared to a profit of 4.5 million in the same quarter a year ago and 4 million in the preceding quarter.

The Norwegian LNG company and its units had a total income of $86.7 million in the quarter, compared with $94.2 million in the preceding quarter.

Hoegh LNG attributed the decline to idle time and scheduled off-hire for two vessels trading as LNG carriers, and a net foreign exchange loss due to the weakening of the Norwegian krone against the US dollar.

“Limited” impact from Covid-19

The Norwegian company says outbreak of the Covid-19 virus created significant uncertainty and volatility in both commodity and
financial markets during the quarter.

Despite this, global LNG trade continued to grow in the quarter, but forecasts for near-term demand growth have been revised downwards, it said.

Höegh LNG has experienced no known cases of Covid-19 infection among any employees onshore or offshore and saw “limited impact” on its operations.

The only direct effect on the company’s operations are delays in crew changes but the situation is improving and the company has conducted crew changes on three of its vessels in recent weeks.

All of the company’s FSRUs and LNG carriers are fully operational and crewed in accordance with relevant safety requirements.

The Norwegian company also saw its contract coverage rising to close to 100 per cent for 2020 and secured two new FSRU contracts in Latin America.

“While the Covid-19 crisis has caused major disruptions and uncertainties to the energy markets, the demand for FSRUs does not appear to have been significantly affected, as can be seen by the selection of Hoegh LNG as preferred bidder for two new FSRU projects in the quarter,” Hoegh LNG chief executive Sveinung Støhle said.

Most Popular

Another steam LNG carrier sold for demolition

An NYK-managed steam liquefied natural gas (LNG) carrier has been sold for demolition, according to brokers.

Abaxx sees significant volume growth in its LNG futures

Abaxx Commodity Futures Exchange, a wholly owned subsidiary of Abaxx Technologies (CBOE:ABXX) has seen significant volume growth in its physically deliverable LNG futures during the past summer months, according to Abaxx Exchange Chief Commercial Officer Joe Raia.

Shell’s LNG Canada expansion project to get boost from government

Canadian Prime Minister Mark Carney named the planned second phase of Shell's LNG Canada export project as one of the major projects the federal government would help fast-track.

More News Like This

DET: FSRU Hoegh Gannet to get upgrades at Danish yard

The 170,000-cbm FSRU Hoegh Gannet, which serves the Elbehafen LNG import terminal in Germany’s Brunsbüttel, will be relocated to the Danish Fayard shipyard from September 18 until mid-November, according to German LNG terminal operator DET.

VTTI, Hoegh Evi move forward with permitting process for Dutch LNG terminal

Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, and Norwegian FSRU player Hoegh Evi have completed the first phase of the permit procedure for their FSRU-based facility in the Netherlands.

Wartsila bags regas module gig from Hoegh Evi

A unit of Finnish tech firm Wartsila has secured a contract from Norway's Hoegh Evi to supply a regasification module, which will be installed onboard the LNG carrier Hoegh Gandria. Once converted, the FSRU will serve in Egypt.

Seatrium scores FSRU conversion job from Hoegh Evi

Singapore’s Seatrium has secured a contract from Norway's Hoegh Evi to convert the latter's LNG carrier Hoegh Gandria into a floating storage and regasification unit.