Höegh LNG - Exercises option to purchase 50% of the LNG carrier STX Frontier
Höegh LNG has on 28 September 2012 exercised an option to purchase 50% of the LNG carrier STX Frontier. The vessel is a 153,600 cubic meter LNG carrier with tri fuel, diesel electric propulsion. Höegh LNG is very pleased with the vessel's performance after having operated it since its delivery from the Hanjin shipyard in 2010. The vessel will be owned by a 50/50 joint-venture between Höegh LNG and STX Pan Ocean. The vessel will be delivered to the joint-venture between April 2013 and October 2013, upon completion of its current charter to Repsol.
Due to the strong backwardation in the LNG shipping market, Höegh LNG will primarily focus its commercial activities for STX Frontier on the medium term market, i.e., in the 3-5 years time charter market, because this is the segment which offers the best returns. Höegh LNG is currently in discussions with several potential customers, both existing and new, for chartering of the vessel.
President and CEO Sveinung J.S. Støhle says in a comment: "We are very pleased to be adding the STX Frontier to our fleet in cooperation with STX Pan Ocean. The 50% ownership has been acquired at an attractive price, the timing of the delivery by mid next year is in a good window, and we are very confident that STX Frontier will be a solid contributor to Höegh LNG's net profit starting in October 2013, at the latest."
About Höegh LNG
Höegh LNG is a fully integrated floating LNG services company with almost 40 years experience, offering long-term floating production, transportation, regasification and terminal solutions for the liquefied natural gas (LNG) market.
The company operates a fleet of six LNG carriers and two floating storage and regasification units (FSRUs). In addition Höegh LNG has three FSRUs under construction at Hyundai Heavy Industries. The company holds a significant project development portfolio for floating regasification as well as floating LNG production (FLNG).
Höegh LNG is a Bermuda company, which has also established presence in Oslo, Singapore, London and Tampa. In total the Company employs about 80 office staff and about 350 sea farers.
Contacts:
Sveinung J. S. Støhle, President and Chief Executive Officer, Telephone +47 975 57 402
Steffen Føreid, Chief Financial Officer, Telephone + 47 975 57 406
Arild Jæger, Head of Investor Relations, Telephone +47 975 57 408
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act or the Continuing Obligations of Oslo Børs.