Exmar’s profit up
Belgian-based gas carrier and offshore services shipowner Exmar increased its operating profit for the first nine months of the year by US$33.6m, to US$86.9m, compared to the same period last year.
Exmar’s LPG fleet put in a Q3 operating profit of US$16.5m, against US$6.4m in Q£ 2005. The result was boosted by a US$4m profit realised as a result of the early termination of the Polar Belgica time-charter. Exmar notes: “LPG freights for long-haul movements on VLGC vessels were firm during the summer months but came under increasing pressure and reached a bottom at the end of the third quarter due to Middle Eastern LPG being priced excessively high compared to substitute petroleum products. This downward effect on the fourth quarter VLGC results is expected to be softened by a cover of 50% on the VLGC fleet at satisfactory levels for the balance of the year. Despite the current volatility in VLGC rates the inherent strength of this segment remains unaffected on the back of anticipated LPG export growth. The Midsize segment suffered from substantial idle time mainly due to reduced Ammonia imports into US related to comparatively low local Natural Gas prices however freight levels remained generally firm and, by the end of the quarter, the activity level increased significantly.” It added that 75% of the fleet is covered at “satisfactory” levels for the balance of the year.
The LNG sector contributed US$8.2m to the operating profit in Q3 compared to US$ 4.0m for the third quarter of 2005. Exmar says that “expressions of interest” for the EXMAR LNGRV’s are growing and the company is confident that long-term employment of the two LNGRV’s ordered in March this year will be concluded in the near future.Exmar’s offshore activities contributed US$2.2m to operating profit compared to US$1.0m for the third quarter 2005. Exmar notes: “This positive trend is mainly due to the increased activity of the engineering and offshore services. During the third quarter of 2006, EXMAR has made substantial progress with the OPTI-EX, its production semi submersible project. EXMAR has reached an agreement for the construction for both the hull and the topsides with Samsung Heavy Industry (Korea) and Kiewit Offshore Services (Texas, US), respectively.”The company still plans to spin off the offshore operation as a separate listing.
