Excelerate Energy is planning to purchase LNGCs for conversion to FSRUs, due to the strong charter market.
The company also revealed in its second quarter 2023 results presentation that it was seeing a steady performance in its core regasification business.
Second quarter net income was $29.6 mill and adjusted EBITDA came in at $88.6 mill.
During the period, Excelerate won contracts to sell four spot LNG cargoes to Bangladesh this year, two of which were delivered in the second quarter.
In May, seasonal regasification services were restarted at the Bahia Blanca GasPort in Argentina, utilising the FSRU ‘Excelsior’.
The ‘Excelsior’ will return to her original Germany charter in the third quarter of this year.
Due to the strong results, the company declared a quarterly dividend of $0.025 per share, payable on 7th September, 2023.
President and CEO, Steven Kobos, commented: “The strong financial results we delivered in the second quarter of 2023 are a testament to the steady performance of our core regasification business and the demand for FSRUs around the world. With global markets continuing to emphasise the need for energy security, the value of our services has never been greater.
“I am proud of the great work the Excelerate team is doing every day to provide essential regasification services and develop integrated LNG solutions for customers across our global footprint.
“We remain committed to building a company that is known for generating predictable earnings and cash flows, while providing opportunistic upside from LNG and gas sales. We are confident this balanced approach is the right strategy to drive growth and maximise value for our shareholders,” he said.
Second quarter 2023 net income and adjusted EBITDA increased compared with the previous year, primarily due to higher rates on charters in Finland and Argentina, a contract extension at a higher rate in the UAE, and lower operating lease expense resulting from the acquisition of the FSRU ‘Sequoia’.
Net income increase was also driven by the early payment of the FSRU ‘Excellence’ finance lease liability, as part of the vessel’s acquisition last year.
Adjusted EBITDA increased sequentially, mainly due to a full quarter of operations with the FSRU ‘Excelsior’, following the completion of her scheduled drydocking in 1Q23, lower operating lease expense for the ‘Sequoia’, and the two spot Bangladesh LNG cargo sales.
The third and fourth cargoes are expected to be delivered in the third quarter of 2023.
As of 30th June, 2023, Excelerate had $462 mill in cash and cash equivalents, $80.9 mill of letters of credit issued and no outstanding borrowings under its $350 mill revolving credit facility.
The company also narrowed its full year 2023 guidance range. Adjusted EBITDA is now expected to range between $325 mill and $335 mill for the full year 2023. Maintenance capex for 2023 is expected to range between $20 mill and $30 mill.
