Liquefied natural gas carrier Golar LNG has posted a net income of $51.7 million for the third quarter of 2008, up from a $9 million net loss a year ago on earnings from its floating “re-gasifyer” in Brazil and the sale of a ship.
The Golar Frost sold in the quarter for $78.1 million, although the result was also up on revenues that reached $58.1 million, up about six million dollars year-on-year with rising spot market day rates for LNG carriers.
The result might have been better if “variable rate contracts” with Shell for two ships had produced less idle time.
On the postive side, Golar managers said they will earn $450 million for the eventual charter of new-build Golar Freeze, the building of which has been financed by the company itself. The company is confident banks will want to further finance the ship.
Ominously, however, the company expects the Asian market to switch to oil-based fuels now that the price of oil is in free-fall. Big LNG users Japan and Korea have stockpiled all they need for their winter, and in a statement, Golar said it’ll have to sell leftover LNG in North America.
“In India there exists the flexibility for buyers to switch from LNG to naphtha, and with the falling oil price LNG is being priced out of this market,” a statement said.
Another warning followed: “In stark contrast to recent times, the reduction in LNG demand is taking place just as several large new LNG producers intend to bring on new capacity.”
The world LNG tanker fleet stands at 288 with 110 carriers on order.
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