Exmar Avoids Loss By Divesting FSRUs

Belgian shipowner Exmar said it made a net profit of $28mn last year, down from a 2016 profit of $40mn.

In its results statement, headed 'Rough Seas Make Good Sailors', the company said that LNG carriers on the spot market in 2017 were impacted by low energy prices, an oversupply of fleet tonnage and delayed LNG deliveries from new liquefaction plants. It said day-rates for modern carriers were below $30,000 on average last year while older units were below $20,000/d.

Exmar sold its 50% interests in four floating storage and regasification (FSRU) vessels -- Excelerate, Explorer (shown in banner image), Express and Excelsior – during 2017 to their original charterer Excelerate Energy, achieving a capital gain of $70mn on three of these vessels. In contrast, its divestment of an older LNG carrier, Excel, led to an impairment of $22.5mn.

Exmar said that its floating liquefaction barge CFLNG, originally intended for Pacific Rubiales in Colombia but cancelled, was successfully commissioned in 2017 and is "awaiting final deployment with several candidate projects under consideration however no income is expected in 2018."

Exmar took delivery of a barge-based FSRU in December 2017 and now says it is undergoing site-specific modifications before the start of its operations, it did not say where, in 2H 2018.