Belgian gas carrier Exmar has reported a fall in 1H15 net profit ahead of major transformation of the group.
Net profit fell to USD21.6 million in 1H15 from USD51.9 million in the same period last year and revenues dipped to USD70.5 million from USD71.8 million. It did not provide 2Q figures.
Exmar and Flex LNG plus Geveran Trading earlier in the summer announced the merger of their LNG carrier interests in a new company called Exmar LNG, in which Exmar will have a 65% stake. The company currently has 15 LNG vessels in all.
“All four of Exmar’s current operational FSRUs (floating storage and regasification units) remain fully committed on long-term charter until between 2025 and 2034. Two of these vessels are receiving upgrades in terms of regasification equipment this year, with Exmar assisting with similar client upgrades on other FSRUs,” the company said in a statement.
“The group’s LPG fleet that comprises 30 ships plus 12 newbuildings on order recorded an operational result of USD14.6 million during the first six months of the year. EBIT for the first semester was affected by 93 dry-docking days [83 days in first half 2014].”
High activity in the midsize segment and a very firm Baltic Freight Index for VLGC strongly contributed to the results in the second quarter and are expected to continue doing so during the remainder of 2015.
In the midsize segment the market remains very active in key trades, which has resulted in high vessel employment levels, mainly for LPG West of Suez. “The tight shipping supply conditions are likely to remain throughout 2015 with the majority of the global midsize fleet being on time charter both for LPG and Ammonia trading,” Exmar said.
In the pressurised business the market remains difficult due a general oversupply of tonnage, particularly in the smaller size range. “In the Far East demand for shipping has been negatively impacted by the growth of land-based PDH (propane dehydrogenation) processing plants in China that are used for local petrochemical production,” the company said.
“The outlook for 2015 remains largely unchanged. 90% of Exmar’s pressurised fleet is committed for the remainder of 2015 with first-class counterparts.”