The second quarter loss pushed the company to a $13.1m loss in the first half of 2014 compared to a restated $20.8m loss in the first half of 2013. Total income fell from $42.7m in the second quarter last year to $32.3m in Q2 2014, affected by $16.2m lower construction contract revenues.
Pre-operating expenses for PGN FSRU Lampung and Independence of $2.1m and lower results from joint ventures put pressure on the company's earnings, as well as an increase in administrative costs.
Since the reporting period the PGN FSRU Lampung has received its first LNG cargo and entered its final commissioning phase, while the FSRU Independence embarked on a short time charter before it begins a long term deployment in Lithuania at the end of the year.
Höegh's master limited partnership (MLP) Höegh LNG Partners LP closed its IPO of 11.04m shares on the New York Stock Exchange during August, raising $220.8m. Höegh retains general partner and 58% of the limited partner interests in the MLP.
The partnership has a 50% interest in the GDF Suez Neptune, 50% interest in the GDF Suez Cape Ann and 100% economic interest in the PGN FSRU Lampung. At the partnership's first AGM in September the MLP will be deconsolidated from Höegh for accounting purposes.
A letter of intent was signed with Egyptian National Gas Holding Company for the use of FSRU Höegh Gallant, with operation expected to start at the end of this year. Aside from the Gallant and LNG Libra, which has a charter to the end of this year, all of Höegh's built fleet is covered through until at least 2024.
Höegh forecasts continued oversupply in the LNG carrier sector until 2016-2017, as the LNG orderbook of 120 vessels is delivered ahead of the expected increased demand for LNG.
For the FSRU sector, where only four uncommitted FSRUs are on order, there are more than 30 projects in the pipeline. Höegh will focus on the FSRU sector for its growth strategy.
Höegh's single uncommitted FSRU, due for delivery in March 2015, is currently bidding on three projects and expects awards to be announced by the end of the year.
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