LNG

Exmar, the Belgian shipping company with a fleet of more than 40 gas carriers and floating terminal expertise and assets, improved its revenues with an LNG production project in West Africa and a floating import terminal in the Netherlands in a year when the company was transformed by a takeover.

Exmar, the listed Belgian shipping company with a fleet of more than 40 gas carriers and floating LNG terminal expertise and assets, has named Carl-Antoine Saverys as the new Chief Executive from January and current CEO Francis Mottrie will become Chief Operating Officer to help guide the new team and be on the board.

Belgian shipping company Exmar has reported on the progress of the liquefied natural gas barge for regasification deployed at Eemshaven in the Netherlands and advances made in the floating LNG production venture in the Republic of Congo.

Belgian shipping company Exmar reported improved annual results amid key floating liquefied natural gas charter and sales deals for its LNG barges that left the Antwerp-based operator free of net debts.

Belgian shipping company Exmar reported improved first-half earnings in 2022 compared with the same period in 2021 as rates rose and the business was heading for the future benefits of a key charter deal signed for an LNG regasification barge in The Netherlands and the sale of a liquefaction barge.

Belgian shipping company Exmar reported modest earnings though expects company finances to improve after a charter deal for its LNG storage and regasification unit (FSRU) barge to be the new Dutch LNG import terminal at the port of Eemshaven.

Belgian shipping company Exmar, owner of the “Tango FLNG” vessel last deployed in Argentina, has returned steady first-half results and said it was still pursuing opportunities for the LNG production barge as well as for a floating storage and regasification unit.

Exmar gave details of the LNG developments as it posted a 23 percent increase in third-quarter gross earnings for the shipping division of $4.4 million compared to $3.6 million in the same three months of 2020.

The earnings for the infrastructure division, comprising the two floating LNG vessels, was negatively affected by the current unemployment of the regasification vessel, known as “FSRU S188”.

This is because the same period of 2020 was boosted by the recognition of a provision of $16.4M on uncollected revenues from Argentine energy company YPF on the “Tango FLNG” charter cancellation.

The earnings, however, did includes an early termination fee of $56.8M for the “FSRU S188” charter agreement by global commodities company Gunvor.

“Exmar’s marketing efforts for employment of ‘Tango FLNG’ confirm strong market interest in our liquefaction barge,” stated the Antwerp-based company.

“Current high oil and gas prices further increase the interest in ‘Tango FLNG’. Term sheet discussions are ongoing with various parties. The monthly settlement payments from YPF are diligently being honoured,” added Exmar in reference to the settlement accord with YPF.

“Following the termination of the charter party with Gunvor earlier this year, the search for employment for the ‘FSRU S188’ is ongoing,” stated Exmar.

“Technical and commercial discussions for several opportunities are ongoing,” it added.

Additionally, Exmar noted that the company’s only conventional LNG carrier, the “Excalibur”, remains under time charter to US company Excelerate Energy and is expected to be redelivered at the beginning of 2022.

“The current strong LNG product market and LNG freight rates give us confidence we will be able to secure further employment either trading or as a conversion candidate,” said the company.

Exmar has slowly withdrawn from the LNG market but its gas fleet still numbers 40 vessels, about half comprising liquefied petroleum gas (LPG) tankers, as well 10 pressurized tankers and as some eight other ships, including very large gas carriers.

The company said it expected a further strengthening of its liquidity position in the next few months.

One of its two new VLGCs, the “Flanders Innovation”, was put into operation and the “Flanders Pioneer” is expected to be delivered at the end of the third quarter of 2021.

“The lease financing for both vessels has been arranged and for both a minimum five-year charter with Equinor ASA (Norway) has been signed,” added Exmar. 

Belgian shipping company Exmar, owner of the “Tango FLNG” barge last deployed in Argentina, said it was actively pursuing various employment opportunities and had also had a settlement in the dispute with commodities firm Gunvor over a newbuild regasification vessel.

Belgian shipping company Exmar, owner of the “Tango FLNG” barge last deployed in Argentina and now up for re-charter, reported annual gross cash flow from operations of US$239.9 million, including a $150M settlement fee paid by Argentine energy company YPF for the “Tango FLNG” charter cancellation.

Exmar said it was getting its finances back on track after payments from YPS and financing deals for other parts of its fleet.

Exmar, based in the port of Antwerp, said it still posted a loss of $7.8M for its operating result versus a profit of $14.5M in 2019.

“Earnings were negatively impacted by an impairment of $28.5M on older vessels,” explained Exmar.

“The year 2020 will be remembered as being dominated by the unprecedented pandemic which distorted economic activities worldwide and made big impacts on daily lives. The reality is that overall, seaborne gas markets fared relatively well,” stated Exmar.

Exmar’s FLNG vessel, built at the Chinese Wison shipyard in Nantong, China, formally started its operations at Bahia Blanca port in Argentina in mid-2019 and a 10-year charter term began in September 2019.

The Belgian company's FLNG barge has production capacity of around 500,000 tonnes per annum. 

“Since the effective termination of the contract with YPF in October 2020, marketing is in full swing and, given its status as a fully-proven facility, there is a healthy interest from the market for a ‘Tango FLNG’ redeployment,” said Exmar.

“The fact that the start of 2021 saw increased price levels of oil and gas globally will certainly benefit the opportunities for reactivation,” it stated.

The company added that the Exmar LNG carrier “Excalibur” was under a time-charter contract until early 2022.

Exmar also noted some highlights at the end of 2020 and the start of 2021, including the $40M replenishment a debt agreement with Bank of China and the refinancing of a bank facility with Nordea bank of Finland for Exmar’s liquefied petroleum gas (LPG) midsize fleet for an amount of $310M, of which $290M has been drawn.

Additionally, Exmar said that at the start of the first quarter of 2021 it signed lease financing for two Very Large Gas Carriers (VLGCs) under construction.

Exmar said its average time-charter equivalent rates for the midsize (38,115 cubic metres capacity) LPG fleet rose to $21,680 per day from $18,587 per day in 2019.

For VLGCs (83,300 cbm) it was $30,605 per day, up from $28,527 per day in the previous year.

Pressurized vessel (5,000 cbm) rates came to $7,865 versus $8,861 in 2019.

“Exmar will take delivery of two LPG-fuelled 88,000 cbm VLGC newbuildings, to be named ‘Flanders Innovation’ and ‘Flanders Pioneer’, in the second and third quarter of 2021 that will enter into a long-term time-charter to Equinor ASA (Norway),” said the company.

“These vessels were the first VLGCs ordered at the time with dual-fuel engines able to burn LPG on the main engine, substantially reducing emissions and underlining Exmar’s continued and consistent ability to innovate,” added Exmar.

Exmar, the Belgian shipping company with more than 40 vessels in its fleet focused on the liquefied petroleum gas business, narrowed its third-quarter net losses to $16.3 million as its drawback from LNG activities has been hampered by an arbitration case brought by commodities firm Gunvor, offset by a successful LNG production vessel charter to Argentina.