LNG shipper Golar saw its second-quarter income figures bounce back from a loss in the previous quarter.
The company reported a net income of $36.3 million which compares to a net loss of $21 million during the first three months of the year.
However, Golar’s time charter equivalent (TCE) rates were at $19,600 per day during the quarter under review compared to $36,000 per day in the first quarter and $14,600 per day in the second quarter of 2017.
A reduction in rates from the first quarter was anticipated and is the result of a seasonal softening in activity and utilization and a corresponding reduction in rates. The market reached its seasonal trough in early May, with around 30 available vessels in the spot market before strengthening as a result of increasing LNG prices driven by strong demand from China and Korea.
As of today, JKM and European gas prices are up 84 percent and 61 percent, respectively, year-on-year. Charterers seeking winter coverage have also entered the market and interest in multi-month and multi-year charters is picking up.
With the new projects coming online bringing additional nameplate capacity of 72 mtpa, and Golar LNG said this would require more than 100 vessels for transportation.
Over the same time horizon, 66 vessels are scheduled to deliver. Leading brokers currently estimate that the market will be undersupplied by 40 vessels in 2020, Golar LNG said.