Belgian shipowner Exmar saw its bottom line hit by the absence of charter income from its lone floating liquefaction vessel in the first quarter.
The Euronext Brussels-listed company reported Ebitda of $3.4m between January and March, compared with $16.1m in the same period of 2020.
Revenue fell to $33.5m during the period, down from $44.6m a year earlier.
Argentina’s YPF declared force majeure on Exmar’s barge-based Tango FLNG (built 2017) last June, claiming the Covid-19 pandemic had hindered its ability to perform its obligations under the charter agreement.
Both sides eventually settled for an early termination fee of $150m, which was fully recognised in Exmar’s 2020 results.
The vessel, which can produce 500,000 tonnes per annum of LNG, is now at a sheltered location in Uruguay and available for other projects.
“Marketing of the liquefaction barge is in full swing and Exmar’s infrastructure team is actively working on several specific prospects for re-employment,” the shipowner said.
Arctic Securities said the weaker first-quarter results should be “expected by the market” and “neutral for the credit”.
Following the earnings release, Exmar’s share price fell nearly 6% to €3.31 ($3.99) in early trading on Friday.
Good shipping business
The company’s profitability was cushioned by healthy earnings of its LPG carriers.
Its shipping operations achieved earnings before interest and tax of $7.7m in the first quarter, up from $5.2m in Ebit during the same period of last year.
Exmar revealed a 79% coverage for its midsize gas carrier fleet and 76% for pressurised LPG fleet for the remainder of the year.
“The [midsize] market has remained stable during the first quarter and well into April,” the company said. ”Market forecasts point to stable or improving market conditions for the balance of the year.”
“It is expected that freight markets [for pressurised LPG carriers] will gradually recover with economic activity improving.”
Its only VLGC in operation — the 83,300-cbm BW Tokyo (built 2009) — will be employed until the fourth quarter.
Exmar is due to take delivery of two LPG-fuelled, 88,000-cbm VLGCs from Jiangnan Shipyard in June and August.
The Flanders Innovation and the Flanders Pioneer will be on long-term charters to Norway’s Equinor.
