Höegh LNG Finds Work for FSRU Höegh Esperanza

Höegh LNG has agreed terms for a three-year FSRU/LNGC contract for its recently delivered FSRU unit Höegh Esperanza, the company informed. 

The charter for the 170,000 cbm Höegh Esperanza, which was delivered in April this year, is expected to start in mid-2018.

Following the delivery, Höegh Esperanza was vetted by oil majors for LNG trading and entered a spot charter under which it loaded its maiden cargo at Queensland Curtis LNG in Australia on May 21, 2018, Höegh LNG said.

As explained, the contract will ensure a minimum annual utilization of the unit in FSRU mode with corresponding rates, while the balance of the year is in LNGC mode.

In April, the company said it was in “advanced negotiations” for intermediate employment of Höegh Esperanza until the anticipated start date of its intended long-term FSRU contract in Chile.

The new charter was revealed in Höegh LNG’s financial results for Q1 2018 which show that the company delivered higher profit year over year. In the three-month period ended March 31, 2018, profit rose to USD 13.2 million from USD 11.4 million reported in the corresponding quarter a year earlier.

In addition, EBITDA stood at USD 38.1 million in Q1 2018, against USD 36.7 million seen in the first quarter of 2017.

During the quarter, all seven FSRUs and two LNG carriers in Höegh LNG’s fleet operated in accordance with contracts and the group’s technical availability was 100%.

Höegh LNG said that its main commercial focus is to secure long-term employment for the two uncommitted FSRUs under construction, which are due for delivery in December 2018 and May 2019, respectively.

“Höegh LNG competes for the most attractive floating regasification projects currently in tender stage, and it is pursuing multiple chartering opportunities with the objective of putting contracts in place by the time of delivery of the newbuildings,” the company said.