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Golar LNG swings back to the black in H1

Golar LNG swings back to the black in H1
Golar LNG has swung back to the black in the first half ended 30 June 2015 despite a loss in the second quarter, aided by higher revenue and the first quarter gain on disposals.

Profit in the first six months was recorded at $24.39m, a reversal from the loss of $11.24m in the same period of last year.

Revenue during the period rose by 24.4% year-on-year to $52.3m, aided by a stronger charter income from the first quarter.

During the second quarter from April to June 2015, Golar LNG reported a relatively small loss of $177,000 compared to the larger deficit of $24.23m in the year-ago period.

Aided by the first quarter net gain on disposals of $103.66m, Golar LNG rode on the performance to report healthy first half results.

The company noted that chartering acitivity and rates in the LNG shipping and FSRU sectors have remained low for much of April and May.

“July through to the present date has progressed in a similar manner to the end of 2Q. Albeit at low levels, there is a steady flow of fixtures which are being serviced by ample tonnage and this is keeping rates under pressure,” Golar LNG said.

“The LNG shipping market remains under pressure and rates so far in 3Q have remained at levels around $25,000-30,000 per day. Utilisation of the shipping fleet has however improved in 3Q versus 2Q.”

The company also noted that the lower gas price environment is triggering lower cost LNG production and this would create additional demand.