Belgian natural gas shipping company Exmar believes it will at least break even at the operating level this year despite extremely weak spot prices.
Belgian natural gas shipping company Exmar believes it will at least break even at the operating level this year despite extremely weak spot prices, its chief executive told. Nicolas Saverys told the newspaper in an interview published on Friday that due to the effects of a variety of hedging products, such as for long-term interest rates and currencies, Exmar would have "a good result". "But in reality the results will be less good. The spot rates in LNG and LPG play tricks on us. There is too little activity," he continued.
In LPG (liquefied petroleum gas), Exmar has only three ships operating on the spot market, but that was enough to make life difficult, according to Saverys. In LNG (liquefied natural gas), Exmar has one ship reliant on the spot market. The company would get $25,000 to $30,000 per day for chartering out a standard LNG carrier, Saverys said, but it needed $55,000 to $60,000 to break even. Exmar's first-quarter operating profit dropped 34 percent from a year earlier to $9.2 million, saying weak spot earnings for a limited part of ts LPG were to blame.