EXMAR Reports Improved 9-Month Revenues

The Executive Committee of EXMAR NV today reports its year-to-date 30 September 2022 results.Revenue (including intersegment revenue) during the nine months of 2022 was USD 6.5 million higher than in the same period of 2021 mainly thanks to the entry of the VLGC’s in the fleet, partly offset by the unemployment of the LNG-carrier EXCALIBUR.

The operating result for the Shipping segment in 2022 was higher than in 2021 as 2022 was positively impacted by higher revenue, lower operating charges and lower net depreciations and impairments.

Very Large Gas Carriers (VLGC)

Two VLGCs continued to perform under their current contracts. BW TOKYO is still employed in a pool and despite high volatility in 2022 the average return in the spot VLGC market has been beneficial. Although the orderbook of newbuilds that will enter the market is substantial, the prospects into 2023 are promising with increased production and export of LPG expected, mainly out of USA.

Midsize Gas Carriers (MGC)

The Midsize market remained stable with slight improvement during 2022 and prospects are positive for the remainder of the year despite uncertainties on ammonia caused by the conflict in Ukraine. We observe an increase in LPG production, especially in the USA, and a replacement of the loss of Russian export of ammonia by longer ton mile sourced ammonia from Middle East and Far East. For these reasons, we are optimistic for 2023 even with an order book of about 30 percent of the global fleet entering the market.

The LPG carrier EUPEN (1999) was sold and delivered to its new owner in October 2022.

The joint-venture between EXMAR and SEAPEAK, signed on August 29, 2022, newbuilding contracts for the delivery of two new enlarged design 46,000 m3 Midsize LPG/ammonia carriers with dual fuel LPG propulsion. Delivery is scheduled end 2024, early 2025. EXMAR also has the option for two additional 46,000 m3 vessels with the possibility of having them equipped with dual fuel ammonia propulsion. These would be the world’s first sea going ammonia fueled vessels.

Pressurized

Due to refinery cuts and demand destruction in the Far East, pressure was put on shipping rates. In Europe, the sanctioning of Russian LPG increased ton mile and gave support to the market.

LNG

Our LNG-carrier EXCALIBUR has been delivered to ENI in October

Revenue in the Infrastructure segment decreased in 2022 by USD 43.5 million as 2021 included an early termination fee of USD 56.8 million and charter income under a previous contract.

In March 2022, EXMAR reached an agreement for a five-year charter for the employment of its floating storage and regasification unit FSRU S188 with GASUNIE LNG Holdings BV (“GASUNIE”). As per the contractual stipulations, hire income has started from mid-August, 2022. The FSRU S188, which has been renamed EEMSHAVEN LNG, has arrived at its employment location in October 2022, and is currently preparing for commissioning and start of LNG operations.

2021 EBIT included a USD 19.0 million impairment charge on the EEMSHAVEN LNG as a result of its unemployment, while in 2022 the market significantly improved and USD 18.3 million was reversed.

On August 5, 2022 EXMAR entered into a share purchase agreement to sell the shares of Export LNG Ltd, the owner of the TANGO FLNG, to ENI. On August 26, 2022 EXMAR received USD 646.4 million upon closing of the transaction.

EBITDA and EBIT were positively impacted by a USD 315.7 million gain on the sale of TANGO FLNG to ENI.

ENI intends to use the TANGO FLNG in the Republic of Congo. As part of this project, ENI and EXMAR also agreed a 10-year charter for a Floating Storage Unit (FSU) based on the conversion of a LNG carrier. In this respect, EXMAR acquired the 50% share from the joint venture partner SEAPEAK of the LNG carrier EXCALIBUR.

Furthermore, EXMAR also concluded a contract with ENI for engineering services, related to the same project.

EXMAR’s engineering subsidiaries continue to see high utilization of project management and engineering services supporting various contracts for the development and implementation of different deep-water offshore developments, mainly in the Gulf of Mexico.
Source: EXMAR