LNG

Excelerate Energy Inc., the specialist US company for LNG floating storage and regasification projects from South America to the Nordic region and South Asia, increased annual and quarterly earnings because of new charters in Finland and Germany and increased gas sales.

The Texas-based company reported net income of $126.8 million for the full year 2023, up from $80M in 2022.

For the fourth quarter net income was $122.68M, an increase on the $33.9M posted in the same three months of 2022.

However, Excelerate’s revenues for the year decreased to $1.16 billion from $2.47Bln in the previous year as natural gas prices dropped.

Gas Sales

The company said that income and adjusted gross earnings for the year increased primarily due to new charters in Finland and Germany, higher rates on charters in Brazil, Argentina, and the United Arab Emirates and higher direct margins on gas sales and lower operating lease expense due to the acquisition of the “FSRU Sequoia’, partially offset by drydocking expense for the “FSRU Excellence”.

Excelerate explained that net Income and gross earnings in the fourth quarter decreased from the previous third quarter primarily due to drydocking expenses related to the “FSRU Excellence” and spot LNG cargo sales during that period did not reoccur.

In commercial updates in January 2024, Excelerate noted that a 15-year LNG sales and purchase agreement was signed with QatarEnergy.

Under the accord, Excelerate will purchase between 850,000 and 1 million tonnes per annum of LNG from Qatar on a delivered ex-ship basis beginning in January 2026.

“This contract is expected to provide reliable LNG supply for Excelerate’s previously announced SPA with Petrobangla in Bangladesh,” the company explained.

Excelerate had signed a long-term LNG SPA in November 2023 with Petrobangla for the volumes later secured from Qatar.

Bangaldesh plans

Excelerate will deliver to Bangladesh 850,000 MTPA of LNG in 2026 and 2027 and 1 MTPA from 2028 to 2040.

The take-or-pay LNG volumes are expected to be delivered through Excelerate’s two existing floating terminals in the West Asian nation, the “Excellence” and the “Summit LNG” FSRUs.

Excelerate has additionally signed a 20-year SPA for volumes from the Louisiana LNG projects of Gulf Coast developer and exporter Venture Global.

“The consistent earnings contribution from our core regasification business and the solid performance of our contracts in Brazil highlighted the unique potential of earnings our integrated strategy,” said Steven Kobos, President and Chief Executive of Excelerate.

“In 2024, Excelerate is committed to moving from strategy to action. We remain focused on executing our growth strategy and optimizing our business to deliver superior returns for our shareholders,” Kobos stated.

Excelerate’s full-year earnings per share rose to $1.11 per share from $0.51 per share in 2022.

The Excelerate Board of Directors has authorized a share repurchase programme under which the company may repurchase up to $50M of its outstanding Class A common stock through February 2026. 

Excelerate Energy, the leading US provider of floating LNG import terminals with increased demand from Europe, reported soaring revenues linked to operations in Finland and South America and with an imminent project start in Germany.

Fortum, the Finnish energy and power company with European Union-wide operations and with plans to give Finland its first floating LNG import terminal, is the majority shareholder in the troubled German utility Uniper but has refused to put any more cash into the Duesseldorf-based company.

May 20 (LNGJ) - Excelerate Energy, the US floating storage and regasification unit (FSRU) specialist, has signed a 10-year contract in Helsinki to deploy the 150,900 cubic metres capacity FSRU “Exemplar” to supply LNG to Finland, Estonia and the Baltic Sea region.

   Excelerate President and Chief Executive Steven Kobos, Gasgrid Finland CEO Olli Sipilä and Gasgrid Finland Chairman Kai-Petteri Purhonen signed the contract at the Government Palace in Helsinki in a ceremony also attended by Finnish Minister of Finance Annika Saarikko and US Ambassador to Finland Douglas Hickey. “Flexible access to LNG is a critical component of European energy security,” said Kobos. “We are honored to collaborate with Gasgrid Finland to deliver essential energy infrastructure that will benefit Finland and more broadly the Baltic Sea region,” added the Excelerate CEO.