The group’s fleet comprises ten FSRUs and three LNG carriers.
Hoegh LNG’s entire fleet is operating under long-term contracts, except the LNG carrier Hoegh Gandria which is currently employed on a five-month LNGC charter ending in September 2024.
The company’s 170,000-cbm FSRU Hoegh Galleon is currently serving a contract in Egypt’s Ain Sohna.
Following the execution of the agreement with Australian Industrial Energy and EGAS for FSRU deployment of Hoegh Galleon in Egypt in May, the vessel was delivered to EGAS in June in accordance with the delivery window and completed its commissioning as planned, Hoegh LNG said in its second-quarter report.
“Otherwise, activity levels remain high with focus remaining on the Zeeland energy terminal in Vlissingen, Netherlands as well as other origination leads both in Europe and other parts of the world,” the company said.
“In addition, there are several formal tender processes that we expect will be coming to the
market shortly and commence processes for selection of terminal solution and partners,” Hoegh LNG said.
In December last year, Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, joined forces with Hoegh LNG to develop and operate the Zeeland energy terminal, in the Vlissingen port area, southern Netherlands.
The terminal will be based on an FSRU, which in time, plans to transition from import of LNG to hydrogen, the partners said.
Fleet delivered “stable” operating performance
Hoegh LNG said the fleet overall has delivered a “stable” operating performance in the second quarter.
The average remaining contract length per vessel was 7.3 years at the end of June 2024.
As previously mentioned, only Hoegh Gandria trades on a LNGC time charter.
Höegh LNG intends to employ Hoegh Gandria on another LNGC time charter upon expiry of the existing contract, it said.
During the second quarter, Hoegh Galleon, Independence, PGN FSRU Lampung, and Hoegh Gallant completed class renewal surveys and related maintenance, Hoegh LNG said.
All vessels remained on hire during the survey and maintenance work.
Additionally, Hoegh Giant completed FSRU commissioning in Santos, Brazil on April 26.
Results
Höegh LNG reported a total income of $130.2 million and an Ebitda of $74.9 million.
This represents a slight increase in total income from the previous quarter’s $128.6 million, while Ebitda decreased from $79.0 million.
The decrease in Ebitda is primarily due to positioning and project cost for Hoegh Galleon before operations in Egypt, as well as lower income from Hoegh Gandria, Hoegh LNG said.
However, this was partially offset by higher charter income from Hoegh Galleon and lower administrative expenses, it said.
In the second quarter of 2024, the group’s profit after tax was $18.7 million, reflecting a $1 million decrease from the preceding quarter’s $19.7 million.
