Hoegh LNG is trawling for new floating storage and regasification unit business after locking away all its existing vessels.
In a third-quarter results statement, the regasification specialist said: “The demand for FSRUs is expected to remain strong. While Hoegh LNG has secured long-term contracts for its entire fleet of FSRUs, the business development team is in active dialogue with several potential new projects looking for FSRU capacity.”
The company said its purchase of the 160,000-cbm LNG carrier Hoegh Gandria (ex-Golar Seal, built 2013) earlier this year provides flexibility to pursue FSRU conversion opportunities.
At the start of the quarter, the company said its 170,000-cbm FSRU Hoegh Giant (built 2017) began a long-term contract with TSRP/Compass in Brazil.
The 170,000-cbm FSRU Hoegh Galleon (built 2019) ended its short-term time charter contract in the LNG carrier market at the end of September and kicked off its long-term contract with Australia’s AIE at the beginning of the fourth quarter.
In the third quarter, the 170,000-cbm Hoegh Gannet (built 2018) continued its commissioning work in Germany, completing this and starting regasification operations in November.
The 145,000-cbm FSRU Cape Ann (built 2010), which is employed on a long-term charter with TotalEnergies, completed its commissioning in Le Havre and started to deliver natural gas to the grid as France’s first FSRU.
The company is also pursuing a floating ammonia terminal development and working with Aker BP on a carbon transport and storage offering for industrial CO2 emitters in northern Europe.
Hoegh LNG reported a net profit of $27.5m for the third quarter, turning round a net loss of $45.9m in the corresponding three months of 2022.
Income also climbed to $131m from $96.1m a year ago.
The company said the full employment of Hoegh Giant and Hoegh Gandria had pulled in higher time charter revenues during the quarter.
But the increase was partly offset by some days of idle time for Hoegh Galleon as it completed an interim charter as an LNG carrier at the end of September, and by an increase in administrative expenses.
The company said a large part of its $5.7m net cash outflows was related to investment in new equipment for FSRUs.
The $249.3m spent on its financing activities was primarily for the repayment of the HLNG03 bond.
The company continues to await the conclusion of a long-running arbitration process with the Indonesian charterer of the 170,000-cbm PGN FSRU Lampung (built 2014).
The Hoegh LNG Holdings group’s fleet comprises 10 FSRUs and three LNG carriers. All the vessels are operating under or committed to long-term contracts, except new acquisition Hoegh Gandria, which is employed on a one-year contract as an LNG carrier ending in March 2024.
The average remaining contract length per vessel was seven years at the end of September.
Hoegh LNG has said it wants to halve total CO2 emissions and have the first net zero carbon FSRU in operation in 2030.(Copyright)
