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Golar LNG losses continue into Q3

Golar LNG losses continue into Q3
The currently depressed liquefied natural gas market continues to impact Golar LNG, with low prices having put many liquefaction projects on hold, leading to a build-up in oversupply of LNG vessels.

The company suffered Q3 net losses of $24.2m compared with a $7.7m profit in the corresponding period in 2014.

Losses narrowed from $43.4m in Q2, however, partly due to spot fleet utilization increasing to 43% versus 33% in the previous quarter, with average spot charter rates reaching $35,000 per day.

Looking ahead, the company anticipates improved results thanks in part to introduction of the LNG ‘Cool Pool’ which started operation at the beginning of October. Golar is contributing eight carriers versus three each for partners Gaslog and Dynagas.

“The Pool has been very well received by the market,” said Golar LNG in a statement. “Of the 17 spot voyage charters concluded globally during October, 10 were with the Cool Pool.

“Improved scheduling ability including the ability to fix forward and reduced positioning costs and cost efficiencies as a result of the common marketing of vessels are expected to result in continuing improvements in vessel utilisation and further reductions to voyage costs in Q4,” the company added.