Belgian shipowner has indicated that it is not done with gas shipping newbuildings just days after announcing two LPG carrier newbuildings.
In a results statement, the company said: “Exmar is actively looking at ordering newbuilds and has already ordered two midsize gas carriers, with LPG and, if available, ammonia as a fuel.”
Last week, Exmar revealed it had contracted two 46,000-cbm midsize LPG and ammonia carriers with dual-fuel LPG propulsion at $69m each with options for an additional pair of vessels. The firm newbuildings are due for delivery at the end of 2024 and in early 2025.
The company said in its interim results presentation that it is also discussing several leads for CO2 transportation with corporates who will become active in capture and storage.
Exmar said its fleet remained well employed, having term charters with established customers and 92% coverage for the remainder of 2022.
The company said freight markets are expected to stay firm throughout the remainder of 2022 and said it will be “interesting” to see what premiums the mostly LPG-fuelled, 40,000-cbm ships will be traded at.
It said the new European Union and the International Maritime Organization regulations that kick in from 2023 will have an effect on the midsize gas carrier market, “mainly by reducing their speed and therefore reducing the availability of ships”.
Exmar’s interim net result dropped to $9.7m from $32.7m in the first half of 2021.
Revenue for the first six months of the year almost halved to $57.1m from $107.9m a year earlier.
Exmar said shipping revenue for the period was up $1.1m on the back of the contribution of its two new VLGCs and higher rates across all vessel types.
But the company’s returns were “partially offset” by the unemployment of its 138,000-cbm LNG carrier Excalibur (built 2002) and fewer midsize vessels in its fleet.
Exmar confirmed speculation that after its dry-docking, the Excalibur will be converted into a floating storage unit and employed under a 10-year contract for Eni’s floating LNG project in the Congo.
Revenue in the company’s infrastructure segment decreased by $57.4m from first half 2021 and included an early termination fee of $56.8m.
Exmar had a busy quarter.
The company highlighted its five-year charter agreement of its LNG regasification barge, the newly named Eemshaven LNG (built 2017), with Dutch energy company Gasunie.
Exmar said the charter deal started delivering hire income from mid-August.
During the quarter, the company sold its 35,454-cbm LPG carrier Brussels (built 1997) and confirmed an agreement to sell the 38,961-cbm Eupen (built 1999) and 35,229-cbm Bastogne (built 2002).
The company also closed the sale of its FLNG barge Tango FLNG to Eni at a price in the range of $572m to $694m.
It also repaid a loan on the 10-year bareboat charter agreement for the Excalibur.
