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Hoegh LNG sinks to a deeper full year loss

Hoegh LNG sinks to a deeper full year loss
Hoegh LNG has sank to a deeper loss in 2014 over the previous year due mainly to an impairment charge, interest and other expenses.

Net profit for the year ended 31 December 2014 widened to $87.1m compared to a deficit of $20.8m in 2013. The bigger loss was primarily due to a one-time impairment charge of $44.84m, as well as a $23.14m interest and other expenses compared to just $4.64m a year earlier.

Revenue, however, increased 11.7% to $162.68m compared to $145.62m in the previous year.

Hoegh LNG commented that should oil prices establish themselves at a new and lower level compared to the previous five years, LNG prices will also remain low.

But in general, lower LNG prices will normally lead to higher demand for LNG, especially in price sensitive markets such as India and China, and this should increase demand for new LNG import capacity.

The company added that together with a significant increase in LNG supply over the next three years, the increased LNG demand creates a “solid foundation” for continued growth in demand for FSRUs.

“With the leading position in the FSRU market and a strong track-record of securing new contracts, the company is well positioned to succeed with its slated growth strategy for the FSRU segment and to have doubled its FSRUs fleet on the water and on order to 12 units by 2019,” Hoegh LNG said.