Oscar Spieler-led LNG shipowner Golar LNG Ltd. (GLNG) on Tuesday reported a loss of $80.1 million in its first quarter.
The results did not meet Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for a loss of 41 cents per share.
The operator of carriers for natural gas shipping posted revenue of $18.6 million in the period, also falling short of Street forecasts. Four analysts surveyed by Zacks expected $23.1 million.
The early part of 2016 has witnessed a continuation of the weak LNG freight market, says a company statement. The majority of fixtures have been in the Pacific basin, however they have tended to be for relatively short periods, and this is also where the largest number of idle vessels are located.
Owners' economics have remained under pressure as charterers have taken full advantage of this over capacity. In the Atlantic there are fewer vessels but there have also been fewer fixtures as reload activity from Europe remains subdued.
Middle Eastern activity was light during 1Q but has picked up as we approach mid-year when Middle East and South American importers increase gas demand.
The company has entered into a MoU with Schlumberger to co-operate globally on the development of green field, brown field and stranded gas reserves using GoFLNG vessels.
Golar's existing fleet of six operating FSRUs, all of which reside within Golar Partners but managed by the Company, have maintained operational excellence achieving 100% availability during scheduled 1Q operations.
Toward the end of 1Q the FSRU Golar Tundra proceeded to Keppel Shipyard for the minor modifications required to ensure compatibility with receiving facilities inside the port of Tema, Ghana.
The vessel modifications were completed in May and the Tundra is now proceeding to Ghana where it is due to arrive shortly. The Partnership is preparing to tender notice of readiness in the very near future and payments under the contract commence 30 days thereafter.