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Golar LNG Partners LP preliminary fourth quarter and financial year 2020 results

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Rhea-AI Summary

Golar LNG Partners LP reported a net income of $20.7 million for Q4 2020, a rise from $17.4 million in Q3 2020, but down from $30.4 million in Q4 2019. The operating income was $32.2 million, compared to $32.1 million in Q3 2020 and $36.3 million a year earlier. The Partnership's distributable cash flow reached $31.6 million, with a distribution coverage ratio of 22.09. Golar Partners has entered into a merger agreement with New Fortress Energy, valued at $3.55 per common unit, with the merger approved by unitholders on February 24, 2021.

Positive
  • Net income increased to $20.7 million in Q4 2020 from $17.4 million in Q3 2020.
  • Operating income for Q4 2020 remained stable at $32.2 million.
  • Distributable cash flow reached $31.6 million with a robust coverage ratio of 22.09.
Negative
  • Net income decreased from $30.4 million in Q4 2019 to $20.7 million in Q4 2020.
  • Operating income fell from $36.3 million in Q4 2019 to $32.2 million in Q4 2020.

Highlights and subsequent events

  • Golar LNG Partners LP (“Golar Partners” or “the Partnership”) generated operating income of $32.2 million for the fourth quarter of 2020, exclusive of its interest in FLNG Hilli Episeyo.
  • The Partnership reported net income attributable to unit holders of $20.7 million for the fourth quarter after accounting for $0.4 million of non-cash mark-to-market interest rate swap gains.
  • The Partnership generated distributable cash flow1 of $31.6 million for the fourth quarter resulting in a distribution coverage ratio1 of 22.09.
  • Golar Partners entered into an agreement and plan of merger ("the merger", "the merger agreement", or "the transaction") with New Fortress Energy Inc. and certain of its subsidiaries ("NFE") whereby NFE will acquire all of the Partnership's common units for $3.55 per unit.
  • In addition, Golar LNG Limited (“Golar”) entered into an agreement with NFE to transfer all the membership interests in Golar GP LLC to NFE for $5.1 million in cash, equivalent to $3.55 per general partner unit ("the GP Transfer agreement").
  • The Partnership's common unitholders voted to approve the merger with NFE on February 24, 2021. The closing of the merger is also conditioned upon receipt of a number of other approvals and consents.
  • The Partnership declared a distribution for the fourth quarter of $0.0202 per common unit.

Financial Results Overview

Golar Partners reports net income attributable to unit holders of $20.7 million and operating income (which excludes its share of Hilli Episeyo which is accounted for under the equity method) of $32.2 million for the fourth quarter of 2020 (“the fourth quarter” or “Q4”), as compared to net income attributable to unit holders of $17.4 million and operating income of $32.1 million for the third quarter of 2020 (“the third quarter”, "prior quarter" or “Q3”) and net income attributable to unit holders of $30.4 million and operating income of $36.3 million for Q4 2019.

Consolidated GAAP Financial Information
(in thousands of $)Q4 2020Q3 2020Q4 2019
Total Operating Revenue71,692  71,113  76,563  
Vessel Operating Expenses(13,291) (14,015) (14,495) 
Voyage and Commission Expenses(1,872) (1,571) (2,484) 
Administrative Expenses(4,310) (3,427) (3,185) 
Operating Income32,215  32,117  36,348  
Interest Income 4,046  4,203  4,804  
Interest Expense(16,440) (17,805) (18,555) 
Gains/(Losses) on derivative instruments, net436  (1,051) 9,610  
Net income attributable to Golar LNG Partners LP Owners20,716  17,360  30,395  


Non-GAAP Financial Information1
(in thousands of $)Q4 2020Q3 2020Q4 2019
Adjusted Interest Income89  114  758  
Adjusted Net Debt 1,399,340  1,438,258  1,532,040  


Segment Information2
 Q4 2020Q3 2020Q4 2019
(in thousands of $)FSRU*LNG Carrier*FLNG**Total FSRU*LNG Carrier*FLNG**Total FSRU*LNG Carrier*FLNG**Total
Total Operating Revenues58,780  12,912  26,217  97,909  58,276  12,837  26,018  97,131  58,975  17,588  26,018  102,581  
Amount invoiced under sales-type lease 4,600  —  —  4,600  4,600  —  —  4,600  4,600  —  —  4,600  
Adjusted Operating Revenues 163,380  12,912  26,217  102,509  62,876  12,837  26,018  101,731  63,575  17,588  26,018  107,181  
Voyage and Commission Expenses(915) (957) —  (1,872) (1,450) (121) —  (1,571) (1,231) (1,253) —  (2,484) 
Vessel Operating Expenses(8,923) (4,368) (5,039) (18,330) (9,627) (4,388) (6,048) (20,063) (9,574) (4,921) (5,240) (19,735) 
Administrative Expenses(2,668) (1,642) (1,035) (5,345) (2,093) (1,334) (121) (3,548)  { "@context": "https://schema.org", "@type": "FAQPage", "name": "Golar LNG Partners LP preliminary fourth quarter and financial year 2020 results FAQs", "mainEntity": [ { "@type": "Question", "name": "What were the financial results for Golar Partners in Q4 2020?", "acceptedAnswer": { "@type": "Answer", "text": "Golar Partners reported a net income of $20.7 million and an operating income of $32.2 million for Q4 2020." } }, { "@type": "Question", "name": "What is the distribution coverage ratio for Golar Partners?", "acceptedAnswer": { "@type": "Answer", "text": "The distribution coverage ratio for Golar Partners in Q4 2020 was 22.09." } }, { "@type": "Question", "name": "What was the merger agreement between Golar Partners and New Fortress Energy?", "acceptedAnswer": { "@type": "Answer", "text": "Golar Partners entered a merger agreement with New Fortress Energy to acquire all of the Partnership's common units for $3.55 per unit." } }, { "@type": "Question", "name": "When was the merger with New Fortress Energy approved by unitholders?", "acceptedAnswer": { "@type": "Answer", "text": "The merger was approved by Golar Partners' unitholders on February 24, 2021." } }, { "@type": "Question", "name": "How did Golar Partners' Q4 2020 net income compare to previous quarters?", "acceptedAnswer": { "@type": "Answer", "text": "Net income in Q4 2020 was $20.7 million, up from $17.4 million in Q3 2020 but down from $30.4 million in Q4 2019." } } ] }

FAQ

What were the financial results for Golar Partners in Q4 2020?

Golar Partners reported a net income of $20.7 million and an operating income of $32.2 million for Q4 2020.

What is the distribution coverage ratio for Golar Partners?

The distribution coverage ratio for Golar Partners in Q4 2020 was 22.09.

What was the merger agreement between Golar Partners and New Fortress Energy?

Golar Partners entered a merger agreement with New Fortress Energy to acquire all of the Partnership's common units for $3.55 per unit.

When was the merger with New Fortress Energy approved by unitholders?

The merger was approved by Golar Partners' unitholders on February 24, 2021.

How did Golar Partners' Q4 2020 net income compare to previous quarters?

Net income in Q4 2020 was $20.7 million, up from $17.4 million in Q3 2020 but down from $30.4 million in Q4 2019.

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