Höegh reports loss amid takeover and mixed tender and project results

Tuesday, 08 June 2021
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LNG News Editor: 

Höegh LNG Holdings, the Norwegian shipping company acquired in a takeover by Norwegian interests and a unit of US investment bank Morgan Stanley, posted a wider loss in the first quarter of 2021 as it reported setbacks in its tenders for projects.

Höegh reported a net loss of $2.26 million compared with a loss of $1.02M in the first three months of 2020.

Floating terminals

Total quarterly income also declined to $83.97M versus $86.73M in the prior-year quarter.

Höegh noted that it still had a “healthy pipeline” of floating storage and regasification unit (FSRU) projects at various stages of development.

It said the most important developments since the previous quarterly report related to the two Australian projects .

Höegh reported that the negotiations for the time-charter with Australian Industrial Energy for the Port Kembla project in New South Wales was in the final stages.

However, a second Australian venture at Crib Point in the Australian state of Victoria would not be proceeding after permits were refused.

Another project the company missed out on was in the Philippines after the first quarter ended.

“In April 2021, First Gen awarded the conditional FSRU contract for their Batangas LNG project in the Philippines to a competitor of Höegh,” said the company.

Höegh also cited another issue of the “Höegh Galleon” commencing the extension of the charter with Cheniere Energy of the US at a lower time-charter rate.

“These factors were partly offset by ‘Arctic Lady’ operating for the full quarter and ‘Höegh Esperanza’ operating in FSRU mode (at Tianjin in China) during the quarter,” explained Höegh.

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