Norway’s floating regasification specialist Hoegh LNG is making a push to expand into new areas including ammonia, hydrogen and carbon capture and storage.
Announcing its results today, the company said it is “actively seeking” areas where it can contribute to the transition to a low-carbon world while growing its business in a commercially sustainable manner.
The company listed that it is looking at floating ammonia terminal solutions, ammonia to hydrogen, blue hydrogen production and carbon capture & storage solutions (CCS).
Hoegh LNG said it is also participating in a development project for an industrial-scale ammonia cracker which will be sited on a floating terminal for the supply of hydrogen to end consumers.
The company, Wartsila and its partners have been granted approximately EUR 5.9m in project funding from Norwegian Government covering about 50% of the expected costs for developing the technical solution for large-scale conversion of ammonia to hydrogen.
Hoegh logged a second quarter net profit of $19.6m, a turnaround on a loss of $7.5m in the same three months of 2022.
Total income for the period was up at $126.9m from $86.9m in the same three months of last year.
First-half figures were also higher with a net profit of $53.6m compared to a loss of $5.5m in 2022 and total income for the six months of $264.3m up from $178.6m a year earlier.
The company said the improvement reflects the contribution from vessels contracted at higher charter rates with less idle time and the acquisition of the 160,000-cbm Hoegh Gandria (built 2013, ex-Golar Seal) in March 2023.
In June 2023, Hoegh said it completed a new three-year term loan facility of $111m financing a portion of the investment in its newly acquired Hoegh Gandria.
Hoegh LNG said its near-term focus is to ensure its FSRU projects commence operations as planned with its customers in Germany, France, and Brazil over the coming months.
It said demand for FSRUs is expected to remain strong, adding that the acquisition of the LNG carrier Hoegh Gandria earlier this year provides flexibility to pursue FSRU conversion opportunities.
The company said: “Hoegh LNG’s business development team is in active dialogue with several potential new projects looking for FSRU capacity.”
The regasification specialist said its vessel, the 170,000-cbm Hoegh Giant (built 2017) was idle during most of second quarter but started its long-term hire with TSRP/Compass in Brazil from beginning of the third quarter.
It said the 170,000-cbm Hoegh Galleon (built 2019) is currently employed on a time charter which is scheduled to end in September. The unit is expected to commence its long-term FSRU contract with AIE in Australia during the fourth quarter of this year.
The Hoegh Gandria kicked off a one-year LNGC trading contract in late April 2023.
A long-running arbitration process with the charterer of the 170,000-cbm PGN FSRU Lampung (built 2014) in Indonesia remains ongoing.
Hoegh’s fleet comprises 10 FSRUs and three LNG carriers all of which is either operating under or committed to long-term contracts, with the exception of the Hoegh Gandria’s employment on a one-year deal.
The company is committed to reduce total CO2 emissions by 50% and have the first net zero-carbon FSRU in operation in 2030.
It said: “Energy management, monitoring and optimization of our operations are one of the main drivers to reduce emissions in our current fleet.”