Höegh LNG in the black

Thursday, 04 March 2021
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Höegh LNG Holdings has reported a net profit of $0.8 mill for the fourth quarter of last year, while EBITDA was $55.2 mill, an increase of just over $2 mill.

The group saw an income increase from $81.8 mill to $84.4 mill in 4Q20, while the EBITDA increase explained most of the improvement in the net result from a loss of $2.6 mill to a profit of $0.8 mill in the quarter.

Net income for 4Q20 was $18.5 mill, a decrease of $0.2 mill from the net income reported in 4Q19.

Operating income for the three month period was $25.5 mill, a decrease of $2.4 mill on 4Q19.

Cash flow from operations increased from $51.2 mill to $54.4 mill, mainly explained by the improved EBITDA quarter-on-quarter.

Segment EBITDA was $34.9 mill, an increase of $0.3 mill on 4Q19. Segment EBITDA for the majority held FSRUs for both quarters was $28.3 mill, while segment EBITDA for the joint venture FSRUs was $8.3 mill, an increase of $0.2 mill from the previous year.

As of 31st December, 2020, the Partnership had cash and cash equivalents of $31.8 mill. The Partnership's total current liabilities exceeded total current assets by $22.7 mill, partly a result of the current portion of long-term debt of $59.1 mill being classified as current while restricted cash of $12.1 mill associated with the Lampung facility is classified as long-term.

As of 25th February, 2021, the Partnership had not experienced any reduced or non-payments for obligations under the timecharter contracts.

Höegh LNG has indemnified the Partnership for the joint ventures' boil-off settlement, leased the ’Höegh Gallant’ under a lease and maintenance agreement with a subsidiary of Höegh LNG and provided the Partnership the $85 mill revolving credit facility.

Stable operations

The company also reported stable operations despite the continued challenges from Covid-19.

During the period, Höegh LNG secured a new long-term FSRU contract in Jaigarh, India for the ‘Hoegh Giant’ and subsequently, signed interim LNGC contracts for three FSRUs.

In January, the company issued new common units and Series A preferred units under its ATM programme equal to $9.1 mill in net proceeds.

President and CEO, Sveinung Støhle, commented: “In addition to securing the long-term FSRU contract for ‘Höegh Giant’ in India with scheduled start-up in the coming weeks, Höegh LNG is making good progress in completing additional long term FSRU employment for its fleet, and the objective is to conclude firm long-term FSRU contracts by the end of 2021 for the units currently on short-term contracts.

“In line with its strong sustainability strategy, the company has established a Clean Energy business area focused on developing infrastructure solutions for the transportation, storage and distribution of green hydrogen and ammonia, as well as developing floating carbon capture and storage solutions.

“This initiative will support Höegh LNG’s leading industrial platform and high-quality, modern assets in driving forward the energy transition well into the future,” he said.

For 4Q20, each of the Partnership's FSRUs have had 100% availability, due to the diligent efforts of the crew and staff to ensure all aspects of operations continued to function smoothly in spite of challenges as a result of the COVID-19 pandemic. 

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