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Höegh LNG announces Covid-19 precautionary measures

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LNG Industry,

In light of the uncertain business environment caused by the Covid-19 virus situation, the Board of Directors of Höegh LNG Holdings Ltd. has decided to take precautionary measures to preserve liquidity and reduce costs.

The precautionary measures being taken include the following:

  • Future dividends from Höegh LNG Holdings Ltd. are suspended in full until further notice.
  • Bonus scheme for executive management and onshore personnel is suspended for 2020.
  • Implementation of a cost saving plan with special focus on overhead and vessel operating costs, targeting US$9 million to US$11 million in savings for 2020, compared with the company’s original plans and budgets for this year. The estimated effect includes the elimination of bonus and other costs, as well as deferring costs, scheduled maintenance and projects to subsequent periods. Approximately one third of the estimated effect relates to costs being postponed to 2021.
  • The impact of the Covid-19 crisis on the company’s operations and business outlook will be continuously monitored and evaluated, and further cost reduction and liquidity preservation measures could be implemented at future dates.

In addition, Chairman of the Board Morten W. Høegh and Director Leif O. Høegh have waived their board remuneration for 2019, payable in 2020, including, in the case of Morten W. Høegh, also the board remuneration payable by Höegh LNG Partners LP.

CEO comments

Sveinung J. S. Støhle, CEO & President of Höegh LNG has stated:

“As reported on 24 March 2020, Höegh LNG’s operations and business development activities are running close to normal. However, the Covid-19 virus crisis is unprecedented in scale and uncertainty, and therefore the board and management are taking steps to preserve both the liquidity and solidity of Höegh LNG through these challenging times.”

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