Both Excelerate Energy and Höegh Evi have expressed optimism for the future of the FSRU sector.
Excelerate Energy reported net income of $45.5 mill for the third quarter of this year.
Net income increased sequentially from the last quarter, primarily due to lower operating costs across several regasification projects, higher gas sales margins and lower depreciation expense.
Adjusted EBITDA also increased sequentially to $92.3 mill, primarily due to the lower operating costs and higher gas sales margins.
However, third quarter net income and adjusted EBITDA decreased from 3Q23, primarily due to the transition of the FSRU ’Sequoia’ to a timecharter party agreement in 1Q24, increased costs primarily related to business development activities, and a decrease in other gas sales opportunities, partially offset by higher interest income.
Excelerate raised and narrowed its full year 2024 adjusted EBITDA guidance, which is now expected to range between $335 mill and $345 mill.
“Excelerate delivered another quarter of solid financial and operational performance. Our ability to deliver consistent results and generate strong cash flow is driven by the high quality of our FSRU and terminals business,” claimed Steven Kobos, President and CEO. “Our core regasification business provides us with the financial foundation necessary to execute our growth strategy.
“As a US LNG company with a global presence, we are focused on expanding our reach in both new and existing markets around the world. We continue to execute a disciplined capital allocation plan with the aim of driving value creation for our shareholders,” he said.
In 3Q24, Excelerate signed medium-term agreements for LNG purchases and sales in one of the Atlantic Basin regions in which it conducts business. In total, under the terms of the agreements, the company will purchase and sell around 0.65 mill tonnes of LNG, the pricing of which will be based on a major European natural gas index.
The first purchase is expected to be made during 4Q24.
Vietnam interest
In September 2024, Excelerate and PetroVietnam Technical Services Corp (PTSC) signed a partnership agreement to jointly study FSRU-based technical solutions for LNG imports into Vietnam.
PTSC is a subsidiary of Vietnam Oil and Gas Group (PetroVietnam) and the leading provider of oil, gas and industrial services in Vietnam.
Excelerate said that this partnership was an important next step in the company’s broader strategy to invest in the rapidly growing Vietnamese LNG market.
As of 30th September, 2024, Excelerate had $608.4 mill in cash and cash equivalents and the company had issued $0.1 mill in letters of credit under its revolver. All of the $349.9 mill of undrawn capacity under the revolver was available for additional borrowings as of that date.
As for Höegh Evi, in a short statement the company said that third quarter EBITDA came in at $83 mill, compared to $75 mill for 2Q24.
Following the quarter’s end, Höegh closed a new seven year loan facility of $625 mill, consisting of a $375 mill term loan and a $250 mill revolving credit line.
The term loan proceeds have been used to repay the outstanding amounts under existing debt facilities for ‘Hoegh Giant, ‘Grace’ and ‘Gallant’.
