Oslo-listed Hoegh LNG Holdings has seen profit plunge in the first quarter as financial expenses rose, but its numbers still measured up well with market expectations.
It said net earnings were $4.5m, from $13.21m a year earlier, but beating the $1.1m consensus.
Revenue grew to $84.29m from $72.29m, but finance costs hit $23.52m against $11.51m in 2018 due to higher depreciation and interest expenses.
Core operating profit of $84.5m was 5% clear of what analysts had projected, according to DNB Markets.
Sveinung Stohle, chief executive of the shipowner, said: "Hoegh LNG continues to deliver steady quarterly results, and we are very pleased with the progress we are making across the Asia-pacific region in securing new long-term FSRU contracts for our expanding fleet.
"The LNG market has a positive momentum, underpinned by the growing supply of LNG and the widespread drive to use natural gas as the back-up for renewable energy and to replace coal and oil with cleaner -burning and competitively priced natural gas."
Class renewal completed afloat
Class renewal for the FSRU Independence (built 2014) was completed afloat, the company said.
"Time out-of-service was minimised to the benefit of its charterer by conducting this survey on-site in Klaipeda without positioning to a dry dock," it said.
"Through this procedure, Hoegh LNG has gained significant experience as a pioneer in conducting renewal surveys afloat. This is not yet an established industry practice, demonstrating the group’s leading technical capabilities."
The shipowner has been selected for three long-term FSRU projects under development and is in the final stage of one other ongoing tender process.
All four of these projects are making "important progress", it said, not least the two FSRU projects in Australia where Hoegh LNG has been selected as the provider.
The company added it continues to operate in a market with solid demand for LNG and many business opportunities globally.
Operating results in the second quarter of 2019 are likely to be affected by fewer days in FSRU mode for the regasification unit Hoegh Esperanza (built 2018), since it will serve as an LNG carrier for CNOOC on fixed terms during the summer months.
