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    Exmar Makes Provision for Tango LNG


But two of its FLNG tankers are the objects of legal disputes.

by: William Powell

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Natural Gas & LNG News, Liquefied Natural Gas (LNG), Corporate, Litigation, Financials, News By Country, Argentina

Exmar Makes Provision for Tango LNG

Belgian shipping operator Exmar announced pre-tax profit (Ebit) September 11 of $19.2mn for first-half trading, which includes a provision for uncollected revenue from Argentine state YPF for the hire of its Tango FLNG vessel (pictured, courtesy Exmar). At $17.7mm, this provision was almost as much as the profit.

YPF declared force majeure earlier in the year, blaming the Covid-19 pandemic for its inability to pay the invoices due for the vessel. When it was working however, it delivered five shipments or 624,000 m³ of LNG with an availability of 99%, Exmar said. For the same period last year Exmar reported Ebit of $16.4mn. including a capital gain of $19.3mn. 

Exmar said: "As of the date of this report the amounts outstanding amount to $30.3mn of which $24.1mn are overdue. As a consequence of the YPF situation part of the revolving credit facility of €18 ($21.3)mn granted by KBC, BNPP Fortis and Belfius (and guaranteed by Gigarant for 50%) has been temporally suspended."

Another FSRU has been the object of a dispute with trading house Gunvor for a year, but the payments have not stopped. "Management assumes that the charter remains in full force and effect and is of the opinion that the hire paid is effectively earned," it said.

The only LNG carrier on its fleet is Excalibur, which is on charter to Excelerate until end 2021/ beginning 2022. Exmar said this charter was "at rewarding levels."