Norway’s floating LNG giant Höegh LNG reported a $45 million net profit for the fourth quarter of the year 2018, as momentum in the FSRU market gained pace. 

The company noted the profit rose from $6 million in the previous quarter and $20 million in the quarter ending December 31, 2017.

The company added in its report that the total income reached $122 million for the quarter under review, which compares to $82.3 million in the previous quarter.

Höegh LNG said the momentum in the FSRU market reflected the overall LNG dynamics in 2018.

“The number of FSRU contract awards rose in line with strong growth in LNG consumption, the sanctioning of additional liquefaction capacity and an increase in shipping rates,” the statement reads.

The company said it made progress with the conditional long-term contract with AGL for the Crib Point FSRU project in Australia, installed the Höegh Esperanza as China’s sole FSRU, and is reaching the final rounds in several ongoing tender processes.

For the full year ended 2018, Höegh LNG reported $352.7 million in total revenues, compared with $279.4 million for the previous year.

The increase reflects a larger fleet, improved market conditions for LNG carriers, charter hire for Höegh Esperanza and the revenue recognition of remaining contractual commitments from Egas under the amended contract structure.

Net profit for the year rose to $72 million from $40.1 million in 2017.

Höegh LNG said the market is showing solid demand for LNG with a number of business opportunities, especially in Asia.

Operating results in the first quarter of 2019 are likely to be positively affected by Höegh Esperanza operating in FSRU mode for the full quarter, a full quarter of revenue contribution from Höegh Gannet and the implementation of IFRS 16, which will see parts of the charter hire costs for the two LNG carriers in the fleet split into an interest element and a depreciation element, the company said.

Such positive elements will be partly offset by operating expenses and depreciation for Höegh Gannet, accelerated depreciation of Independence and the elimination of revenue earned under the suspension and settlement agreement with Egas since this was fully recognized in the fourth quarter of 2018.