LNG

Sept 20 (LNGJ) - Belgian shipping company Exmar, which chartered a regasification barge to the Netherlands and sold a floating LNG production vessel to Italy’s Eni for deployment in Africa, is set to be taken over by Saverex NV, the holding company of the family of Exmar Executive Chairman Nicolas Saverys.

   Exmar, based in Antwerp, had reopened the acceptance period to September 15 for the voluntary public takeover bid launched by Saverex for all shares and share options not already controlled by the bidder. As a result, Saverex now owns 47.81 million shares, representing 80.36 percent of Exmar. Taking into account the shares held by Chairman Saverys and Exmar itself Saverex controls 49.83M shares, representing 83.76 percent of Exmar. “The payment of the bid price for the shares (€12.10 per share and €2.48 per share option) offered during the voluntary reopening is scheduled for October 2, 2023,” said Exmar.

Excelerate Energy, the US company that led the global development of floating LNG import terminals, has completed the successful transition of its entire fleet of floating storage and regasification units to Excelerate Technical Management.

“Congratulations to our ship management team overseeing this effort and the 600 plus seafarers that supported,” said Steven Kobos, President and Chief Executive of Excelerate Energy.

“Transitioning 10 ships in 10 months is a tremendous accomplishment in any year, but especially in 2020,” added Kobos.

“Through ETM, we look forward to continuing to provide the seamless service our customers have come to know and expect,” he stated.

Excelerate began transitioning its fleet in February 2020 with the FSRU “Experience” after the Republic of the Marshall Islands and the Government of Belgium awarded Interim Documents of Compliance (DoC) under the International Safety Management (ISM) Code to ETM.

Excelerate completed the transition of the 10th and final FSRU “Excellence” on October 28.
As each FSRU undergoes scheduled maintenance and upgrades, Excelerate plans to repaint its vessels in the corporate brand colors and design.

“At Excelerate, we hold ourselves to the highest standards, and this transition gives us an opportunity to enhance our already rigorous safety management programs,” said Cal Bancroft, Executive Vice President and Chief Operating Officer of Excelerate.

“It also demonstrates our commitment to stewardship, accountability, improvement, and leadership and providing more flexible and seamless services to clients,” added Bancroft.

Excelerate explained that with the transition to the new ship management subsidiary, customers can continue to expect
consistency of operations and high performance of personnel development, both seagoing and shore-based.

Houston-based Excelerate began developing its ETM ship management services in February 2020.

In early June 2020, it named Bancroft as the COO to help oversee the unit.

He holds a B.S. in Nautical Science from Maine Maritime Academy and an M.B.A. in International Business and Marketing Management from the University of St. Thomas in Houston. He also served in the US Naval Reserve. 

Belgian shipping company Exmar, owner of the “Tango FLNG” barge from Argentina now up for re-charter, reported increased third-quarter consolidated earnings.

Exmar, based in the port of Antwerp, said its operating result came to $22 million in the three months to September compared with $21M in the same quarter of 2019.

The company’s gross quarterly earnings jumped to $58.8M from $27.4M in the prior-year quarter.

Exmar is led by Chief Executive Nicolas Saverys and also continues to manage 10 LNG floating storage and regasification units, though is not directly involved in regasification projects with former partner Excelerate Energy of the US.

The company said that its Midsize Gas Carriers business continued on its upward trend while pressurized-ships spot market was suffering due to low refinery activity.

Exmar announced in October that it had reached a settlement deal with Argentine oil and gas company YPF SA over the dispute under the “Tango FLNG” charter agreement that blew up in June 2020. The LNG production barge was now available for re-hire.

Under the accord, YPF has agreed to pay Exmar $150M in consideration of the early termination of their charter agreement and the withdrawal of arbitration proceedings.

The Belgian company's FLNG barge has production capacity of around 500,000 tonnes per annum. It was first deployed at the Bahia Blanca port in Argentina.

In addition to owning an LNG FSRU and its FLNG interests, Exmar owns and manages a fleet of almost 40 other vessels including liquefied petroleum gas (LPG) carriers.

The FLNG vessel, bullt at the Chinese Wison shipyard in Nantong, China, formally started its operations in Argentina in mid-2019 and a 10-year charter term began in September 2019.

Exmar said the “Tango FLNG” had delivered five shipments, or 624,000 cubic metres of LNG to date with an availability of 99 percent.

In its latest earnings, Exmar added that its infrastructure division posted an operating result of $4.1 compared with $700,000 in the same three months of last year.

The earnings had been “negatively affected” by the recognition of a provision of $16.4M on uncollected revenues from YPF for the “ Tango FLNG” barge.

However, the settlement deal will be reflected in fourth-quarter earnings for October to be published in 2021.

The loan agreement with Bank of China and Deutsche Bank with respect to the “Tango FLNG” financing foresees a replenishment of the Debt Service Reserve Account for an amount up to $40M, of which $22M has already been paid.

“The modalities for the payment of the balance are still under discussions,” added Exmar.

The company said that the FLNG barge was now being prepared for demobilization. “Commercial leads for new employment are actively being pursued,” stated Exmar.

A second Exmar vessel, a floating storage and regasfication unit, continues serving under a charter party with global commodities firm Gunvor, even though it is not yet deployed.

“Arbitration with respect to a dispute under the contract is ongoing without financial impact,” Exmar explained.

Exmar, the Belgian shipping line, has reached a settlement agreement with Argentine oil and gas company YPF SA over the dispute under the “Tango FLNG” charter agreements that blew up in June 2020 and the production barge is now available for hire.

The Belgian company said a settlement amount of US$150 million will be paid by YPF to Exmar in consideration of the early termination of their charter agreements and the withdrawing of arbitration proceedings.

“A first instalment of $22m was remitted on October 19. The balance of $128M is payable in 18 monthly instalments backed by adequate financial security,” said Exmar.

The loan agreement with Bank of China and Deutsche Bank with respect to the “Tango FLNG” foresees a replenishment of the Debt Service Reserve Account for an amount up to $40M.

“The specific modalities are currently being discussed with the lenders,” said Exmar.

The Belgian company stated that the FLNG barge with production capacity of around 500,000 tonnes per annum was now available for other projects.

“The FLNG’s immediate availability, proven track record and operational experience are the right elements to rapidly unlock new markets for gas exports,” said Exmar.

“Commercial leads for new employment are being actively pursued,” it added.

In addition to owning an LNG FSRU and its FLNG management interests, Exmar owns and manages a fleet of almost 40 other vessels including liquefied petroleum gas (LPG) carriers.

The “Tango FLNG” was first deployed at Bahai Blanca port in Argentina.

The vessel was built at the Chinese Wison shipyard in Nantong and delivered to Exmar in 2017. It had initially been destined for a project in Colombia in South America that was cancelled.

The vessel formally started its operations in Argentina in mid-2019 and a 10-year charter term began in September 2019.

Exmar said the “Tango FLNG” had delivered five shipments, or 624,000 cubic metres of LNG to date with an availability of 99 percent.

The winter season then started in the Southern Hemisphere and liquefaction activities were stopped by YPF in May 2020.

Exmar first announced a YPF “force majeure” for the vessel on June 25, 2020.

YPF used pipeline natural gas to produce the LNG and export it, as a possible prelude to being a future LNG exporter from its huge onshore Vaca Meurta shale gas resources. 

Exmar is led by Chief Executive Nicolas Saverys and has suffered some financial difficulties for several years. However, it continues to manage 10 LNG FSRUs for former partner Excelerate Energy of the US, with whom it started many LNG import projects.

Exmar, the Belgian fleet owner with LNG assets such as the “Tango FLNG” production hull operating at Bahia Blanca in Argentina, said it had repaid a senior unsecured bond as it reorganised some of its finances and cut costs to underpin its financial future.

Exmar said in an update on its finances that it had repaid the unsecured bond funded partially with a new unsecured two-year bond of 650 million Norwegian crowns ($75 million) and partly with available resources.

The company, led by Chief Executive Nicolas Saverys, currently manages a fleet of 10 LNG carriers and FSRUs and owns two FLNG barges. The company, like many others, has suffered over the last few years from the shipping industry downturn.

Exmar also operates in the liquefied petroleum gas market, where it owns or operates around 30 vessels. It has been expanding in the LPG sector while consolidating its LNG interests.

Antwerp-based Exmar said in the financial update that it organized the payments on the Floating Storage and Regasification Unit (FSRU) barge in the second quarter of 2019.

The financing is approved by the credit committee of China State Shipbuilding Corporation (CSSC), where the vessel was built, but due to a delay in the finance documentation with CSSC, the financing is not yet concluded.

“The completion of the documentation is expected in the course of the third quarter of 2019,” said Exmar.

The company also explained that further to the successful performance acceptance tests of the “Tango FLNG” in June 2019, Exmar met all conditions for the partial release of the debt service reserve amounts for the repayment of the $200M loan with Bank of China and Deutsche Bank ($40M in a first phase).

“This repayment is subject to the approval of Sinosure (export credit insurer), the latter taking more time than previously communicated,” it explained.

“Exmar will do its utmost to expedite this repayment, expected to occur in the course of the third quarter of 2019,” stated the Belgian company.

The “Tango FLNG” plant is chartered by Argentina energy company YPF under a 10-year agreement. The vessel was built at the Chinese Wison shipyard in Nantong and delivered to Exmar in 2017.

The vessel is the former floating liquefaction unit, “Caribbean FLNG”, constructed for a cancelled venture in the South American state of Colombia and renamed before being sent to Argentina.

Pending the settlement of both the Chinese credit issues, Exmar said it acquired a bridging loan for $30M to temporarily increase its liquidity.

Additionally, Exmar has signed an agreement with Compagnie Maritime Belge (CMB) for the sale of 50 percent of its shares in Reslea, owner of the office buildings in Antwerp.

Exmar will realize a capital gain of about $19M and therefore reinforce its liquidity position.

The company also gave the instruction to pay the first instalment for the construction of two Very Large Gas Carriers (VLGCs) in accordance with the shipbuilding contract with Jiangnan Shipyard in China.

“Both vessels are under construction in Shanghai and will serve under a firm contract of five years with Equinor after delivery in 2021,” said Exmar.

“Exmar expects and believes that as per December 2019 it is foreseen that all (financial) covenants will be met,” it added.

Exmar posted an annual pre-tax loss of $14.2 million compared with a profit of $29.3M the previous year, though said it was confident of a sound financial future.