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Hoegh LNG narrows first half loss, improves revenue

Hoegh LNG narrows first half loss, improves revenue
Hoegh LNG has narrowed its first half loss and stayed in the red even as it generated a profit in the second quarter on higher revenue.

First half net loss attributable to equity owners of the parent was recorded at $266,000 compared to a much wider loss of $13.08m in the same period of last year.

Revenue in the first six months was reported at $101.53m, an increase of 21.5% from $83.59m seen in the previous corresponding period.

The higher revenue was a combination of higher freight income, absence of construction contract expenses and a gain of $3.12m on reversal of impairment.

Despite booking a second quarter profit of $4m, as against the loss of $8.58m in the previous year’s quarter, Hoegh LNG failed to lift its first half results out of the red.

The company has expressed optimism ahead in view of two large waves of additional LNG liquefaction capacity that will enter the market over the next five years, bringing about lower energy and LNG prices, as well as higher dmand for LNG and consequently FSRUs to receive the LNG.

Hoegh LNG noted that FSRUs have become the preferred solution for new importers, and that it is well positioned to capture the market growth.

The company is currently bidding on three new FSRU projects and has a shortlist of an additional five to six active FSRU projects at an early stage of development.

“Within FLNG, the company is continuing to focus on its North American projects where it believes that it should be able to offer a competitive unit price and increased flexibility compared to US landbased LNG liquefaction terminals,” Hoegh LNG said.