Du är här

2016-02-16

Höegh LNG : Putting FLNG activities on hold and allocating all resources to FSRUs

Höegh LNG Holdings Ltd. ("Höegh LNG" or the "Company") today announced its
decision to put all FLNG activities on hold and to allocate all resources and
capital to its core business; FSRUs, because this is where the Company sees
the highest return on invested capital and the most promising market
prospects. The Company's decision is a consequence of the oversupplied LNG
market and deteriorating energy and financial markets, which mean that
investment decisions for new LNG production facilities, including the FLNG
segment, will continue to be challenging for the foreseeable future. However,
the market conditions for FSRUs continue to be favourable driven by the
strong growth in new LNG supplies at very competitive prices. The Company
sees a high level of project activity for new FSRU projects, promoted by both
LNG producers as well as LNG importers and downstream gas consumers.

Höegh LNG will not engage in further new FLNG developments, however, will
complete its obligations towards existing FLNG customers. All FLNG employees
will be transferred to the FSRU business. The Company has consequently
decided to impair the book value of its FLNG assets for an amount of USD 37
million in the fourth quarter of 2015. These intangible assets are
substantially all related to the offshore FLNG FPSO FEED study that the
Company completed in 2009, prior to the IPO in 2011. Furthermore, the
strategic change is expected to lead to a reduction in annual net SG&A
expenses of approximately USD 3 million going forward.

Sveinung J.S. Støhle, President&CEO of Höegh LNG, stated "given the overall
market outlook for LNG and the current state of the financial markets, we
believe focusing solely on FSRUs is financially and commercially the best
strategy for Höegh LNG. We are fully committed to build on our position as
the leading FSRU provider, and will take this opportunity to sharpen our
focus and strengthen our FSRU team to ensure that we reach our ambition of
growing our fleet to 12 FSRUs by 2019."

* * *

About Höegh LNG:

Höegh LNG provides floating energy solutions and operates world-wide with a
leading position as owner and operator of floating LNG import terminals;
floating storage and regasification units (FSRUs). The Company has developed
low-cost solutions for floating liquefaction terminals (FLNG) and is one of
the most experienced operators of LNG Carriers (LNGCs). Höegh LNG's vision is
to be the industry leader of floating LNG solutions and the strategy is to
continue to focus its growth plans on the FSRU and the FLNG market, with the
objective of securing long-term contracts with strong counterparts at
attractive returns. Höegh LNG is a Bermuda based company with established
presence in Oslo, Singapore, London, Miami, Jakarta, Klaipeda and Cairo. The
company employs approximately 110 office staff and 500 seafarers

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
Birgitte Hjertum, VP Strategy and Investor Relations, Telephone +47 975 57 432

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

---------------------------------------

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Höegh LNG via Globenewswire

HUG#1986238

Författare WKR

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.