Höegh LNG - Interim results for quarter ended 30 June 2014

By Joseph R. Fonseca
Sunday, August 24, 2014


Höegh LNG reported USD 32.3 million in total income in the second quarter 2014, down from USD 42.7 million in the second quarter 2013. The decrease is mainly due to USD 16.2 million lower construction contract revenues.

"We reached an important milestone when the complex FSRU and Mooring project in Lampung reached mechanical completion and the FSRU commenced commercial operation in August 2014," Sveinung J.S. Støhle, President and Chief Executive Officer stated. "Another important milestone was met in August 2014 with the successful IPO and NYSE listing of Höegh LNG Partners. The IPO was six times oversubscribed and priced at a yield of 6.75%, the best pricing ever achieved for a maritime MLP IPO. I am proud of what the Company has accomplished on the technical and financial side so far this year and excited about the growth prospects for the Company now that the MLP is in place."

The Company’s consolidated operating loss before depreciation was USD 0.3 million in the quarter compared to a loss of USD 2.4 million in the same period last year. The improvement is explained by higher contribution from LNG Libra as she was off-hire in April and May 2013 (USD 6.4 million) and contribution from FLNG studies (USD 0.8 million). The improvement is offset by expenses relating to the pre-operation of PGN FSRU Lampung and Independence (USD 2.1 million), lower results from investments in joint ventures (USD 1.1 million) as Norman Lady was sold for green recycling in the fourth quarter 2013 and higher administrative cost (USD 1.2 million).

The loss after tax was USD 8.5 million in the quarter compared to a loss of USD 6.1 million in the same period last year.

Total cash flow in the quarter was USD 61.3 million compared to USD 25.7 million in the second quarter 2013. The cash flow in the quarter includes proceeds from the sale of the mooring system to PT PGN LNG (USD 96.5 million), proceeds from borrowings (USD 348.7 million), investments in newbuildings and vessels (USD 368.8 million) and payment of debt issuance cost (USD 4.8 million). During the second quarter 2013, proceeds from the sale of marketable securities was USD 80.0 million, proceeds from borrowings were NIL while investments in newbuildings and mooring system costs totalled USD 37.8 million.

At the end of the second quarter 2014, Höegh LNG held USD 141.1 million in restricted and unrestricted cash and marketable securities (USD 81.5 million at 31 March 2014). The book equity after adjusting for mark-to-market of hedging reserves was USD 445.2 million, equivalent to an adjusted book equity ratio of 40% compared to an adjusted equity ratio of 61% on 31 March 2014. On 30 June 2014, net interest bearing debt was USD 433.7 million compared to USD 145.5 million at 31 March 2014.

On 30 June 2014, the Company recognized its investments in joint ventures as non-current assets and liabilities in an amount of USD 0.2 million and USD 91.9 million, respectively. The Company’s joint ventures are recognized as liabilities in the statement of financial position mainly due to negative mark-to-market valuations of interest rate swap hedges in the joint ventures, totalling USD 89.1 million at the end of the second quarter 2014 and USD 93.9 million as at 30 June 2013.

During the first half of 2014, total income was USD 83.6 million compared to USD 63.4 million in the first half of 2013. The increase is manly driven by higher construction contract revenue from the mooring contract with PT PGN LNG and time charter revenue from LNG Libra. The increase is offset by higher costs relating to the listing of Höegh LNG Partners LP (USD 2.5 million) and reduced share of profit from joint ventures (USD 2.4 million) following the green recycling of Norman Lady in the fourth quarter 2013. During the first half 2014, Höegh FLNG generated a net loss before taxes of USD 1.7 million, compared to a loss of USD 3.9 million in the same period in 2013.

Net loss before tax was USD 12.8 million compared to a net loss of USD 13.5 million in the same period in 2013.

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


Russian Minister to Intervene with Gazprom on Slovakia Gas Flow

Russia's Energy Minister Alexander Novak will intervene with Gazprom to raise reduced gas shipments to Slovakia to contracted levels, Slovakia's economy ministry

Total Names Refining Boss to Replace de Margerie

French oil company Total has appointed refining boss Patrick Pouyanne as chief executive to succeed Christophe de Margerie who was killed in a plane crash in Moscow this week.

Asia-Pacific Solar Collaboration Conference

The Australian Photovoltaic Institute is holding the inaugural Asia-Pacific Solar Research Conference at the University of New South Wales in Sydney from 8-10 December 2014.


Video: USCG Medevacs Navy Sailor off Virginia

The U.S. Coast Guard (USCG) medevaced a man Wednesday from a Navy vessel off the Virginia coast after watchstanders at Coast Guard Sector Hampton Roads in Portsmouth

VT Halter Begins Building LNG-powered ConRo Ships for Crowley

VT Halter Marine, Inc., a subsidiary of Vision Technologies Systems, Inc. (VT Systems), has commenced construction on the first of two liquefied natural gas (LNG)-powered,

New Research Vessel Delivered on the Great Lakes

The new oceanographic research and fisheries assessment vessel, Arcticus, completed her sea trials and was delivered to the U.S. Geological Survey's Great Lakes Science Center on October 17.

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1099 sec (9 req/sec)