Hoegh LNG reports record quarterly Ebitda

Hoegh LNG Holdings reported a record quarterly Ebitda, while the firm works to ensure its FSRU projects start operations as planned in Germany, France, and Brazil over the coming months.

The group and its units reported a total income of $137.4 million and an Ebitda of $91.9 million for the first quarter of 2023, compared to $106.1 million and $51.9 million for the preceding quarter.

The company’s CEO Erik Nyheim said that Hoegh LNG has delivered the “strongest quarterly Ebitda reported by the company.”

According to Hoegh LNG, the increase in Ebitda of $40 million was mainly a result of Hoegh Giant, Hoegh Esperanza, and Hoegh Gannet being fully employed during the quarter, Hoegh LNG said.

Moreover, Hoegh Giant earned a “very strong” charter rate in the first quarter of 2023, and the unit is currently idle after it finalized its interim LNG carrier time charter party, Hoegh LNG said.

This 170,000-cbm FSRU Hoegh Giant will later this year head to Brazil to start the previously signed contract with a unit of Brazilian energy company Cosan.

The FSRU is expected to start the contract from beginning of the third quarter this year, according to Hoegh LNG.

Esperanza and Gannet are serving the FSRU-based facilities in Wilhelmshaven and Brunsbuettel in Germany.

Hoegh LNG recorded a profit after tax of $34.1 million for the first quarter of 2023, up $38 million from a net loss after tax of $4 million in the preceding quarter.

Hoegh Gandria

The group’s fleet comprises ten FSRUs and three LNG carriers.

Hoegh LNG said that the entire fleet is either operating under or committed to long-term contracts with “strong” counterparties, except for the recently acquired Hoegh Gandria.

In March, Hoegh LNG completed the purchase of the 2013-built LNG carrier Golar Seal from CoolCo for about $184.3 million.

Hoegh LNG renamed the LNG carrier to Hoegh Gandria and this vessel has subsequently been at a yard in April for its 10th anniversary class renewal, it said.

From late April, the vessel started employment on a one-year time charter contract, Hoegh LNG said.

“Hoegh LNG’s business development team is in active dialogue with several potential new projects looking for FSRU capacity which, amongst others, could provide potential opportunities to convert Hoegh Gandria to FSRU,” the firm said.

Focus on FSRU contracts

Höegh LNG said its near-term focus is to ensure its FSRU projects start operations as planned by its customers in Germany, France, and Brazil over the coming months.

Furthermore, the company is planning for start of the contract with AIE in Australia with expected launch towards the end of this year.

Last year, Hoegh and Australian Industrial Energy (AIE), a unit of Squadron Energy, confirmed a long-term FSRU charter deal for the latter’s Port Kembla import terminal in New South Wales.

The group expects that the Ebitda for the second quarter of 2023 will be “somewhat lower than for the first quarter mainly due to expected idle time between end of interim LNGC contract and commencement of firm long-term FSRU contract for Hoegh Giant, and the very strong charter rate earned by Hoegh Giant in the first quarter.”

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