US-listed Excelerate Energy remains on track to start up a new floating storage and regasification unit-based terminal for Finland and its Baltic neighbours in the fourth quarter of 2022 as European gas buyers fast-track their facilities in advance of the winter and energy supply concerns.
Announcing second-quarter results as the US market closed on Wednesday, Excelerate said project developer Gasgrid Finland has started the development of a new jetty in southern Finland near the Balticconnector pipeline where Excelerate’s 150,900-cbm FSRU Exemplar (built 2010) will be moored.
Excelerate, which was listed on the New York Stock Exchange in April, reported a second-quarter net loss of $4m a reversal on the $3.6m recorded in the corresponding period a year ago.
The company said the red ink reflects an expected $21.8m one-time charge for FSRU acquisitions related to its initial public offering in April 2022. Excelerate said the cost represents the difference between the amount paid for the 138,120-cbm Excellence (built 2005) compared to the lease liability at the time of the acquisition.
It said excluding this charge and IPO-related expenses the company’s adjusted net income was $20.4m.
Revenue for the quarter was logged at $622.9m a jump from $192.8m in the same period of 2021.
Excelerate said its adjusted Ebitda for the quarter was higher than in the previous year large due to incremental gas sales margins at the Bahia Terminal in Brazil which started in December of 2021.
This was driven by the start of regasification services at Bahia Blanca in Argentina in May with the FSRU Exemplar, its FSRU Express resuming operations under its long-term regasification charter in early April, and higher gas sales volumes at the Bahia terminal in Brazil. But the company said this was partially offset by higher vessel operating costs.
Excelerate said it is continuing to advance commercial negotiations with the government of Bangladesh for the expansion of the Moheshkhali LNG terminal, the extension of its existing regasification agreement by five years to 2038, and a multi-year LNG supply agreement.
The company said it is also moving forward with its planned Payra LNG offshore FSRU terminal and an onshore pipeline to the city of Khulna in southwest Bangladesh.
Excelerate president and chief executive Steven Kobos said the company is pursuing downstream opportunities to expand its reach in both new and existing markets.
“… the strategic expansion downstream of our floating terminals is accelerating the growth of our gas sales business and positioning Excelerate for increased profitability,” Kobos said.
“This past year has highlighted the important role flexible access to LNG plays in providing energy security and supporting the decarbonisation efforts of countries around the world,” he added.
The company reaffirmed its guidance of an adjusted Ebitda in the range of $249m to $269m for 2022.
Excelerate’s board declared an inaugural quarterly dividend for the company of $0.025 per share.
