Hoegh LNG has whet investor appetite for a fresh round of FSRU contract awards and suggested a conventional LNG carrier newbuilding could be up for conversion.
Chief executive Sveinung Stohle says the owner is hopeful of securing work for its FSRU#7, which is set for delivery in March 2017.
Stohle explained on the owner’s first quarter earnings call it is bidding for three separate projects for the vessel and sees no reason why a contract will not be in place way before delivery.
He identified several other commercial opportunities in the 2017 and 2018 window.
“We are looking at our options how to potentially win additional contracts and one of the main options we look at is conversions of a new-built LNG carrier,” Stohle said.
Conversions are a popular theme in the sector at present, with Cardiff Marine and Dynagas among those holding similar ambitions.
Analysts at DNB Markets say Hoegh could secure two new FSRU contracts in the next 12 months, having gone for a year without revealing any new business.
“There are three FSRU projects with expected start-up dates which match the delivery of FSRU#7 in March 2017,” analysts Nicolay Dyvik, Oyvind Berle and Petter Haugen said.
“With that backdrop in mind, we find it encouraging that Hoegh LNG has opened the way for a LNGC conversion if it secures a FSRU award on its newbuild delivering in March 2017.”
Bjorn Kristian Roed of Danske Bank now estimates long term FSRU rates at $125,000 per day, down from $140,000 per day previously.
“Our thesis on upcoming FSRU project awards and our view on FSRUs being the main beneficiary of the LNG oversupply era remains, with upcoming contract awards set to accelerate in pace in the next 12-18 months,” he said in a post results report.
