FSRU owner and operator, Excelerate Energy has reported a net loss of $4 mill for the second quarter of this year, which reflected an expected $21.8 mill one-off charge for an IPO-related FSRU acquisition.
Adjusted net income, excluding the expected one-off charge and IPO-related restructuring expenses, was $20.4 mill for the period and adjusted EBITDAR was $75.2 mill.
As a result, Excelerate’s Board declared the company’s inaugural quarterly dividend at $0.025 per share.
In May, Excclerate commenced seasonal regasification services at Bahia Blanca GasPort in Argentina.
In addition, the company expanded the downstream reach of the planned Albanian Vlora terminal project through a gas sales MOU with Bulgaria’s Overgas and progressed Finland’s regasification project, which remains on schedule to commence service in 4Q22.
Bangladesh projects
Advanced negotiations are also underway for the Moheshkhali LNG expansion and Payra LNG projects in Bangladesh, the company said.
“Our second quarter financial results demonstrate the continued strong momentum of our integrated business model,” said President and CEO, Steven Kobos. “We are executing our strategy to deploy our flexible LNG infrastructure and pursue downstream opportunities to expand our reach in both new and existing markets.
“Importantly, the strategic expansion downstream of our floating terminals is accelerating the growth of our gas sales business and positioning Excelerate for increased profitability.
“This past year has highlighted the important role flexible access to LNG plays in providing energy security and supporting the de-carbonisation efforts of countries around the world.
“Excelerate is committed to delivering stable, reliable energy, so countries and industries can keep the lights on and homes can stay warm in the winter. We look forward to continuing to develop our geostrategic asset base to meet the energy needs of customers in the future, while delivering meaningful value creation for our stakeholders,” he said.
The one-off charge related to was the early cessation of the FSRU ’Excellence’ lease as part of the IPO-related acquisition that was closed concurrently with the company’s IPO in April, 2022.
This charge represented the difference between the amount paid for the ’Excellence’, compared to the lease liability at the time of the acquisition.
Second quarter adjusted EBITDA and adjusted EBITDAR increased over 2Q21, primarily due to incremental gas sales margins at the Bahia Terminal in Brazil, which commenced in December last year.
The sequential increase was driven by the commencement of regasification services at Bahia Blanca in Argentina in May, the ‘Express’ resuming operations under its long-term regasification charter in early April, and higher gas sales volumes at the Bahia terminal, all of which were partially offset by higher vessel operating costs, Excelerate said.
As of 30th June, 2022, Excelerate had $386 mill in cash and cash equivalents. The company also reaffirmed its previous guidance and expects adjusted EBITDA to range between $249 mill and $269 mill for this year.
In addition, it expects adjusted EBITDAR to range between $285 mill and $305 mill.
