LNG

Avenir LNG, the London-headquartered global energy supplier for small-scale projects and gas carriers, has awarded the management of three LNG bunker vessels to Wilhelmsen Ship Management of Norway.

Stolt-Nielsen Limited, the Oslo-listed and London-based owner of a small tanker fleet including for LNG through its stake in Avenir LNG, reported fiscal first quarter net profits of $99.8 million as it also sold a stake in LNG shipping firm CoolCo.

Stolt-Nielsen’s profits were well up on the $52.3M posted in the same three months last year.

Quarterly revenues were $708.7M compared with $606.2M in the prior-year quarter for a business that also spans energy storage, terminals, tank containers and fish farms as well as natural gas.

The Stolt-Nielsen Gas unit reported a wider operating loss of $3.4M compared with a loss of $2.9M.

CoolCo shares sold

During the quarter ending on February 28, 2023, the group said it disposed of 923,565 shares in shipping company CoolCo for $11.7M, resulting in a gain on the sale of $2.5M which has been transferred from the fair value reserve to retained earnings.

CoolCo is listed on the Euronext Growth Oslo exchange. Stolt-Nielsen also owns a stake in Golar LNG Limited.

Stolt-Nielsen is additionally a founder of Avenir LNG in 2018 and still holds its stake in Avenir, the owner of a small-scale import terminal on the Italian island of Sardinia and in a small-scale LNG carrier fleet.

The two other shareholders in Avenir are Norwegian shipping companies Golar and Höegh LNG.

In its earnings statement, Stolt-Nielsen said that the Stolt Tankers unit reported operating profit of $87.1M, up from $78.2M, largely driven by higher contract rates and improved spot volumes.

The Stolthaven Terminals business reported operating profit of $25.1M to the end of February 2023 versus the previous quarter’s $20.8M as operating revenue at the terminals in the US and Brazil improved.

Niels G. Stolt-Nielsen, Chief Executive of Stolt-Nielsen, said the quarter continued where 2022 ended with a solid performance from all businesses during what was typically the seasonally weakest quarter of the year.

“Stolt Tankers improved on the prior quarter results as we began to see the impact of contract renewals on our earnings. Results at Stolthaven Terminals improved on the back of continued high utilisation, although throughput volume was down slightly,” the CEO explained.

“At Stolt Tank Containers a decrease in container liner freight rates impacted the rates we charge our customers, and with the easing of logistics bottlenecks customers are returning tanks more quickly, reducing demurrage revenue,” he added.

Avenir LNG, the European small-scale LNG fleet owner, terminals operators and a supplier to off-grid customers, has joined with a Chinese bunkering company to deliver LNG fuel to a ship in Shanghai owned by Israel’s ZIM Integrated Shipping Services.

Feb 2 (LNGJ) - Stolt-Nielsen Limited, the London-based terminals and shipping company listed on the Oslo bourse and a stakeholder in the Avenir LNG joint venture for small-scale carriers and other assets, reported increased net profits of $95.3 million versus $35.02 in the 2021 quarter and with higher quarterly revenues of $732.5M. Net profits for the full year amounted to $280.8M compared with $78.8M in 2021.

   “The fourth quarter capped a stellar year, where all businesses performed well,” said Niels G. Stolt-Nielsen, Chief Executive. “The improvements seen in our markets were key, as well as our steadfast focus during recent years on implementing and delivering on our strategies for each of the businesses. Stolt Tankers’ net profit improved for the fourth consecutive quarter as chemical tanker spot rates and volumes continued to improve,” he added.

May 18 (LNG) - SNAM, the Italian natural gas grid operator and LNG import terminal stakeholder, has signed a contract with shipping and project company Golar LNG to charter the carrier “Golar Arctic” as a floating storage and regasification unit (FSRU) to be deployed in the port area of Portovesme on the Italian island of Sardinia. The Mediterranean island already has a small-scale onshore import facility owned by Avernir LNG.

   The Golar charter contract was valued at €269 million ($282.5M) and includes the vessel and the costs to Golar of converting the “Golar Arctic” into an FSRU with storage capacity for up to 140,000 cubic metres. “Further to the full conversion of the vessel, the FSRU will be sold to the SNAM Group,” said the Italian company.

Avenir LNG, the Norwegian-listed LNG operator and vessel owner, will charter one of its small-scale LNG carriers to Shell after it is delivered from a Chinese shipyard next year.

Avenir said it had entered into a Time Charter Party (TCP) with Shell North America LLC for the “Avenir Achievement”, a newbuild with 20,000 cubic metres capacity.

Avenir is a joint venture owned by London-based Stolt-Nielsen and partners Höegh LNG and Golar LNG Ltd.

The supply vessel is expected to be delivered to Avenir in the second quarter of 2022 and the time charter to Shell is expected to begin at the start of 2023 for a period of three years and with an option to extend for up to five years.

This charter, including options, increases Avenir’s overall vessel charter revenues backlog to $81.0 million as of December 2021.

“The vessel will be equipped with boil-off gas reliquefication and simultaneous operations (SIMOPs) capabilities, making her the world’s largest, most efficient and versatile LNG bunker supply vessel,” said Avenir.

Commenting on the deal, Peter Mackey, Chief Executive of Avenir, said he was delighted with the charter deal and to see “Avenir Achievement” playing an important role in expanding Shell’s LNG bunkering capabilities.

“This deal marks another major achievement in Avenir’s development as we fix the last vessel in our current newbuilding programme. We are thrilled to welcome a world-class organisation like Shell as the latest customer for Avenir,” added Mackey.

In its most recent earnings, Avenir posted a nine-month operating profit of $291,000 compared with an operating loss of $4.84 million in the same period of 2020.

There was a narrowing of Avenir’s net losses for the first nine months of 2021 to $1.28M versus $4.32M in the same prior-year period for the business focused on providing infrastructure to support the development of LNG as a marine fuel and supplying the off-grid power generation and transport fuel sectors.

Avenir’s revenues increased by $9.7M compared with the previous nine months of 2020 to $10.5M following the delivery of its first two small-scale LNG carriers, the “Avenir Advantage” and the “Avenir Accolade”, in October 2020 and March 2021 respectively.

Avenir LNG, the small-scale LNG supplier with an import terminal on the Italian island of Sardinia and a small fleet of vessels, has just reported a positive operating profit for the first nine months of 2021.

Avenir LNG, the Norwegian small-scale LNG business, said the carrier “Avenir Accolade” would deliver the commissioning cargo to the latest Italian regasification terminal on the Mediterranean island of Sardinia after making its way from Asia.

Avenir, a joint venture between London-based Stolt-Nielsen and partners Höegh LNG and Golar LNG Ltd., took delivery of the 7,500 cubic metres capacity dual-purpose LBV “Avenir Accolade” in March 2021 from the Keppel Offshore and Marine shipyard in the Chinese port of Nantong.

The “Avenir Accolade” has an overall length of 124 metres and her beam is 18 metres.

Avenir said a ship-to-ship bunkering of the “Avenir Accolade” was carried out on April 26 by its sister ship, the “Avenir Advantage”, off Pengerang in the southern part of Peninsular Malaysia.

The Maltese-flagged “Avenir Accolade” is scheduled to transit the Suez Canal on May 15 into the East Mediterranean, according to shipping data.

“We’re thrilled to see the ‘Avenir Advantage’ alongside the ‘Avenir Accolade’, the first time they are back together since leaving the shipyard in Nantong,” said Peter Mackey, Chief Executive of Avenir LNG Ltd.

Schedule

“We look forward to welcoming the ‘Avenir Accolade’ to our HIGAS terminal in Sardinia in a few weeks’ time with the commissioning cargo onboard,” added Mackey.

“We continue to make significant strides in executing our strategy for Avenir LNG,” the CEO explained.

“The Avenir team and the crews onboard our vessels deserve a huge amount of praise for all they have accomplished during these enormously challenging times,” he stated.

Stolt-Nielsen started up the small-scale LNG sector firm Avenir in 2015 and its two main investors, Golar and Höegh, each have 22.5 percent of Avenir.

In addition to its growing small-scale fleet Avenir has an 80 percent stake in the small-scale Higas terminal being commissioned in May.

The terminal is located at the Port of Oristano and includes a jetty capable of receiving LNG vessels up to 20,000 cubic metres, an unloading arm, six horizontal cryogenic holding tanks of 1,500 cubic metres capacity each, two LNG truck-loading bays and a natural gas power generation system.

The Sardinian terminal will be capable of loading around 8,000 LNG trucks each year for subsequent distribution to smaller satellite stations across the island in a classic version of a targeted small-scale LNG project.

Sardinia currently lacks a system of access to natural gas and only a small number of industrial customers receive LNG by truck which is brought to the island by ferry.

Stolt-Nielsen, the London-headquartered Norwegian company with terminal, shipping and Avenir LNG project interests, reported stable first-quarter earnings amid US disruptions and said the LNG import terminal on the Italian island of Sardinia would come on line in May.

Norwegian-listed company Stolt-Nielsen said its natural gas unit was still pursuing its small-scale liquefied natural gas projects through Avenir LNG, including the delivery of six small-scale carriers.

Stolt-Nielsen Gas is continuing to invest in opportunities in LNG shipping and distribution, said the company with offices in London in its business review just published of all its divisions.

Its assets currently include 45 percent of Avenir LNG, a 2.3 percent stake in Golar LNG and six small-scale LNG carriers newbuilds under construction.

“Avenir’s strategy is to source, ship, store, distribute and sell LNG to small-scale, stranded communities that do not have access to a natural gas grid,” said Niels G. Stolt-Nielsen, the Chief Executive of the Stolt-Nielsen group.

Two strategic partners joined SNG as investors in Avenir, Golar LNG Ltd and Höegh LNG, each taking a 22.5 percent stake with Stolt-Nielsen retaining 45 percent.

Avenir has four 7,500 cubic metres capacity LNG vessels and two 20,000 cubic metre capacity carriers on order as it also continues to develop its first LNG terminal on the Italian island of Sardinia.

Stolt-Nielsen has LNG in its portfolio along with its tanker, storage, containers and sea farm businesses.

The Norwegian company with a presence in worldwide locations has its ordinary shares listed on the Oslo stock exchange.

The company reiterated in the annual report that its small-scale carriers were still on track for delivery in 2020 and 2021. 

Keppel Marine of Singapore is scheduled to deliver two 7,500 cubic metre LNG vessels by mid-2020, from their affiliated yards in Nantong, China. 

In 2021, Sinopacific Offshore & Engineering (SOE) will deliver two more 7,500 cubic metres capacity carriers as well as two with 20,000 cubic metres capacity from their yards, also in Nantong. 

Each of the ships is designed to perform safe ship-to-ship bunkering.

In October 2019, together with Malaysian shipping company, MISC Berhard, Avenir signed a term charter with Malaysia’s national oil and LNG production company Petronas.

The first 7,500 cubic metres capacity carrier will be based in Malaysia, enabling Petronas to provide bunkering to LNG-fueled vessels, plus transport services for small-scale terminals in the region. 

Avenir announced another a term charter in November 2019 with Golar Power to deliver LNG using the second 7,500 cubic metres capacity vessel to various ports in Brazil, as well as providing ship-to-ship bunkering. 

“Over the longer term, Avenir plans to develop new markets through small-scale LNG import solutions, invest in additional tonnage where necessary and expand its network of strategic bunkering locations,” said SNG.

The Stolt-Nielsen unit reported an operating loss of $4.1 million for 2019. 

“The losses were mainly attributable to costs related to the continued development of various small-scale LNG projects,” it added.

The company noted that during the fourth quarter of 2019, Stolt-Nielsen sold its investment in Avance Gas Holdings Ltd for $25.9 million. The $10.8 million gain on the sale was recorded to retained earnings.