Norway’s Hoegh LNG sees revenue dip in Q1
Norway’s Hoegh LNG said May 27 that quarterly revenues declined 5% year-on-year.
Total time charter revenues for the three-month period ending March 21 dipped to $34.8mn from $36.7mn in Q1 2020. Total Ebidta of $34.5mn for Q1 was lower than the $36.1mn recorded this time last year.
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The company in its forward outlook said its primary risk stemmed from questions about cash flow from its long-term charter contracts. Elsewhere, the company said it remained wary of the lingering strains of the pandemic.
While its operations have not been affected so far, the company said the duration of the global pandemic leaves it with a degree of uncertainty regarding its operations and financial condition.
Shareholders of the Norwegian floating storage and regasification unit (FSRU) operator backed a proposal to take the company back into private hands.
Hoegh LNG's board recommended the move in early March, which will involve Norwegian shipowner Leif Hoegh & Co and Morgan Stanley acquiring a 50.4% stake in the vessel operator. Leif Hoegh & Co already controls the remaining 49.6% interest.
The acquisition has already received bondholder approval, and is on track for completion by mid-year
Hoegh LNG posted a modest growth in operating income last year to $113mn, despite the impact of the coronavirus pandemic on gas markets, although its net profit came to only $146,000, owing to increased financial costs.