Höegh LNG posts end of 2014 loss

Höegh LNG has reported a loss before tax of US$56.4 million for the fourth quarter of 2014, mainly due to impairment charges and one-off costs.

The company’s total income for the quarter was US$45.5 million and operating profit before depreciation was US$6.8 million.

Highlights

• FSRU Independence started generating income under the ten-year contract with Klaipedos Nafta.
• Höegh LNG signed a contract with Sociedad Portuaria El Cayao (SPEC) for a new FSRU import terminal in Colombia.
• The company signed a five-year FSRU contract with Egypt’s EGAS.
• Höegh Gallant was delivered from Hyundai Heavy Industries (HHI) and directly employed on a short-term charter as an LNG carrier.
• The company placed an order for its seventh FSRU with delivery due in the first quarter of 2017.
• Höegh LNG signed a joint development agreement with the project sponsor for a second North American FLNG project.
• Bondholders approved proposed amendments to the NOK750 million bond agreement, giving the company increased flexibility in executing its growth strategy.

Comments

Commenting on the quarterly results, Sveinung J.S. Støhle, President and CEO, said: "This quarter was marked by several significant milestones, including that the FSRU Independence started generating income and contributed to an improved EBITDA. The net result is, however, adversely impacted by impairment charges, of which the majority relates to intangible assets capitalised pre-IPO in 2008 and 2009.

The FSRU Independence.

“HLNG has now entered the operating phase of its current FSRU expansion program and expects to grow the company's EBITDA several times over the next couple of years. This transition of the company is further marked by our first quarterly dividend payment of US$0.1 per share.

"And, most importantly, as shown by the decision to order our [seventh] FSRU, we will continue to leverage our position as the leading provider of FSRU services in order to reach our objective of doubling our fleet within the next 4 year period."

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/floating-lng/26022015/hoegh-lng-reports-4q14-results-325/