Höegh LNG Partners LP Reports Financial Results for the Quarter Ended March 31, 2021
Höegh LNG Partners LP (HMLP) reported financial results for Q1 2021, showing net income of $23.8 million, a significant increase from $5.5 million in Q1 2020. Total time charter revenues were $34.8 million, down from $36.7 million year-over-year. Operating income rose to $31.7 million from $13.4 million in the prior year, while Segment EBITDA decreased to $34.5 million. The company maintained 100% availability of its fleet, ensuring consistent cash flows. The partnership faces refinancing needs in October 2021 but expects sufficient resources for working capital in the next twelve months.
- Net income surged to $23.8 million in Q1 2021, up from $5.5 million in Q1 2020.
- Achieved 100% availability of FSRUs, ensuring steady cash flows.
- Operating income increased to $31.7 million, indicating operational resilience.
- Total time charter revenues decreased to $34.8 million, down from $36.7 million in Q1 2020.
- Segment EBITDA declined to $34.5 million from $36.1 million year-over-year.
- Increased operating expenses of $14.1 million, up from $13.2 million.
HAMILTON, Bermuda, May 27, 2021 /PRNewswire/ -- Höegh LNG Partners LP (NYSE: HMLP) (the "Partnership") today reported its financial results for the quarter ended March 31, 2021.
Highlights
- Continued measures to mitigate the risks from the COVID-19 pandemic and ensure health and safety of crews and staff, whose wellbeing is our highest priority
- No reported cases of COVID-19;
100% availability of FSRUs for the first quarter of 2021 - Reported total time charter revenues of
$34.8 million for the first quarter of 2021 compared to$36.7 million of time charter revenues for the first quarter of 2020 - Generated operating income of
$31.7 million , net income of$23.8 million and limited partners' interest in net income of$20.0 million for the first quarter of 2021 compared to operating income of$13.4 million , net income of$5.5 million and limited partners' interest in net income of$1.8 million for the first quarter of 2020 - Operating income, net income and limited partners' interest in net income were impacted by unrealized gains on derivative instruments for the first quarter of 2021 compared with unrealized losses on derivative instruments for the first quarter of 2020 mainly on the Partnership's share of equity in earnings (losses) of joint ventures
- Excluding the impact of unrealized gains (losses) on derivative instruments for the first quarter of 2021 and 2020 impacting the equity in earnings (losses) of joint ventures, operating income would have been
$24.1 million for the three months ended March 31, 2021, a decrease of$1.1 million from$25.2 million for the three months ended March 31, 2020 - Generated Segment EBITDA1 of
$34.5 million for the first quarter of 2021, a decrease of$1.6 million from$36.1 million for the first quarter of 2020 - On May 14, 2021, paid a
$0.44 per unit distribution on common units with respect to the first quarter of 2021, equivalent to$1.76 per unit on an annualized basis - On May 17, 2021, paid a distribution of
$0.54 6875 per8.75% Series A cumulative redeemable preferred unit (the "Series A preferred unit"), for the period commencing on February 15, 2021 to May 14, 2021
Sveinung Støhle, Chief Executive Officer stated: "In the first quarter of 2021, Höegh LNG Partners' fleet of modern, full-size FSRUs once again achieved
1 Segment EBITDA is a non-GAAP financial measure used by investors to measure financial and operating performance. Please see Appendix A for a reconciliation of Segment EBITDA to net income, the most directly comparable GAAP financial measure.
Financial Results Overview
For the three months ended March 31, 2021, each of the Partnership's FSRUs have had
The Partnership reported net income for the three months ended March 31, 2021 of
Excluding the impact of all of the unrealized gains and losses on derivative instruments, net income for the three months ended March 31, 2021 would have been
Preferred unitholders' interest in net income was
Equity in earnings of joint ventures for the three months ended March 31, 2021 was
Operating income for the three months ended March 31, 2021 was
Segment EBITDA1 was
Total operating expenses for the three months ended March 31, 2021 were
Total financial expense, net for the three months ended March 31, 2021 was
Financing and Liquidity
As of March 31, 2021, the Partnership had cash and cash equivalents of
As of March 31, 2021, the Partnership has no material commitments for capital expenditures. However, during the first quarter of 2021, part of the procedures for the on-water class renewal survey for the Höegh Grace were performed. No off-hire is expected during the second quarter of 2021. The remainder of the on-water class renewal survey is expected to be completed during the second quarter of 2021. Incurred expenditures of approximately
During the first quarter of 2021, the Partnership made quarterly repayments of
The Partnership's book value and outstanding principal of total long-term debt was
As of March 31, 2021, the Partnership's total current liabilities exceeded total current assets by
Assuming the refinancing of the Lampung facility on a timely basis, the Partnership believes its current resources, including the undrawn balances under the
As of March 31, 2021, the Partnership had outstanding interest rate swap agreements for a total notional amount of
The Partnership's share of the joint ventures is accounted for using the equity method. As a result, the Partnership's share of the joint ventures' cash, restricted cash, outstanding debt, interest rate swaps and other balance sheet items are reflected net on the lines "accumulated earnings in joint ventures" and "accumulated losses in joint ventures" on the consolidated balance sheet and are not included in the balance sheet figures disclosed above.
On February 12, 2021, the Partnership paid a distribution of
On February 16, 2021, the Partnership paid a distribution of
On May 7, 2021, the Partnership drew
On May 14, 2021, the Partnership paid a distribution of
On May 17, 2021 the Partnership paid a distribution of
For the period from April 1, 2021 to May 27, 2021, no Series A preferred units or common units were sold under the Partnership's ATM program. The Partnership sold 336,992 Series A preferred units and 52,603 common units under the ATM program in the first quarter of 2021.
Outlook
The Partnership believes its primary risk and exposure related to uncertainty of cash flows from its long-term time charter contracts is due to the credit risk associated with the individual charterers. Payments are due under time charter contracts regardless of the demand for the charterer's gas output or the utilization of the FSRU. It is therefore possible that charterers may not make payments for time charter services in times of reduced demand. As of May 27, 2021, the Partnership has not experienced any reduced or non-payments for obligations under the Partnership's time charter contracts. In addition, the Partnership has not provided concessions or made changes to the terms of payment for its customers. Höegh LNG has indemnified the Partnership for the joint ventures' boil-off settlement, leased the Höegh Gallant under lease and maintenance agreement with a subsidiary of Höegh LNG (the "Subsequent Charter") and provided the Partnership the
If financial institutions providing the Partnership's interest rate swaps or lenders under the revolving credit facility are unable to meet their obligations, the Partnership could experience a higher interest expense or be unable to obtain funding. If the Partnership's charterers or lenders are unable to meet their obligations under their respective contracts or if the Partnership is unable to fulfill its obligations under time charters, its financial condition, results of operations and ability to make cash distributions to unitholders could be materially adversely affected.
Since implementing its prior ATM program in January 2018 until May 27, 2021, the Partnership has sold preferred units and common units for total net proceeds of
The Partnership has long term debt maturing in October 2021 when the commercial tranche of the Lampung facility becomes due and export credit tranche can be called if the commercial tranche is not refinanced. To address the liquidity needs, the Partnership is at an advanced stage of the process to refinance the Lampung facility. As of May 27, 2021, the loan documentation had been finalized and is now subject to satisfaction of closing conditions before drawdown. We currently expect the refinancing to be completed before the due date of the commercial tranche in October 2021. In addition, planning has commenced in relation to the refinancing of the Neptune Facility with its joint venture partner. Should the Partnership be unable to satisfy the conditions to close the new Lampung facility or to obtain refinancing for the Neptune Facility or its other debt maturities on a timely basis or at all, it may not have sufficient funds or other assets to satisfy all its obligations, which would have a material adverse effect on its business, results of operations, financial condition and ability to make distributions to unitholders.
The outbreak of Coronavirus (COVID-19) has negatively affected economic conditions in many parts of the world which may impact the Partnership's operations and the operations of its customers and suppliers. Although the Partnership's operations have not been materially affected by the Coronavirus outbreak to date, the ultimate length and severity of the COVID-19 outbreak and its potential impact on the Partnership's operations and financial condition is uncertain at this time. Furthermore, should there be an outbreak of the COVID-19 on board one of the Partnership's FSRUs or an inability to replace critical supplies or replacement parts due to disruptions to third-party suppliers, adequate crewing or supplies may not be available to fulfill the Partnership's obligations under its time charter contracts. This could result in off-hire or warranty payments under performance guarantees which would reduce revenues for the impacted period. To date, the Partnership has mitigated the risk of an outbreak of the COVID-19 on board its vessels by extending time between crew rotations on the vessels and developing mitigating actions for crew rotations. As a result, the Partnership expects that it may incur somewhat higher crewing expenses to ensure appropriate mitigation actions are in place to minimize the risk of outbreaks. To date, the Partnership had not had service interruptions on the Partnership's FSRUs. Management and administrative staffs have largely transitioned to working remotely from home to address the specific COVID-19 situation in the applicable geographic location. The Partnership has supported staffs by supplying needed internet boosters and office equipment to facilitate an effective work environment.
On March 8, 2021, Höegh LNG announced a recommended offer by Leif Höegh & Co. Ltd. ("LHC") and funds managed by Morgan Stanley Infrastructure Partners ("MSIP") through a 50/50 joint venture, Larus Holding Limited ("JVCo"), to acquire the remaining issued and outstanding shares of Höegh LNG not currently owned by LHC or its affiliates (the "Amalgamation"). The Amalgamation was approved by Höegh LNG's shareholders and bondholders and closed on May 4, 2021. Höegh LNG is now wholly owned by JVCo, and the common shares of Höegh LNG will be delisted from the Oslo Stock Exchange. Following the consummation of the Amalgamation, some provisions of the omnibus agreement entered into in connection with the IPO (the "omnibus agreement") terminated by their terms, including (i) the prohibition on Höegh LNG from acquiring, owning, operating or chartering any Five-Year Vessels (as defined in the omnibus agreement), (ii) the prohibition on us from acquiring, owning, operating or chartering any Non-Five-Year Vessels (as defined in the omnibus agreement), and (iii) the rights of first offer associated with those rights. As a consequence, following the consummation of the Amalgamation, Höegh LNG is not required to offer us Five-Year Vessels and is permitted to compete with us.
While Höegh LNG is under no obligation to offer FSRUs or other vessels to us, it has indicated that it remains focused on ways to further enhance the partnership between Höegh LNG and us and remains open to the opportunity to offer opportunities to us if market conditions warrant.
Presentation of First Quarter 2021 Results
A presentation will be held today, Thursday, May 27, 2021, at 08:30 A.M. (EST) to discuss financial results for the first quarter of 2021. The results and presentation material will be available for download at http://www.hoeghlngpartners.com.
The presentation will be immediately followed by a Q&A session. Participants will be able to join this presentation using the following details:
a. Webcast
https://www.webcaster4.com/Webcast/Page/942/41407
b. Teleconference
International call: | +1-412-542-4123 |
US Toll Free call: | +1-855-239-1375 |
Canada Toll Free call: | +1-855-669-9657 |
Participants should ask to be joined into the Höegh LNG Partners LP call.
There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session.
For those unable to participate in the conference call, a replay will be available from one hour after the end of the conference call until June 3, 2021.
The replay dial-in numbers are as follows:
International call: | +1-412-317-0088 |
US Toll Free call: | +1-877-344-7529 |
Canada Toll Free call: | +1-855-669-9658 |
Replay passcode: | 10156741 |
Financial Results on Form 6-K
The Partnership has filed a Form 6-K with the SEC with detailed information on the Partnership's results of operations for the three months ended March 31, 2021, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and unaudited condensed interim consolidated financial statements. The Form 6-K can be viewed on the SEC's website: http://www.sec.gov and at HMLP's website: http://www.hoeghlngpartners.com.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning future events and the Partnership's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "will be," "will continue," "will likely result," "plan," "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Partnership's control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially include, but are not limited to:
- the effects of outbreaks of pandemic or contagious diseases, including the length and severity of the recent worldwide outbreak of COVID-19, including its impact on the Partnership's business liquidity, cash flows and operations as well as operations of our customers, suppliers and lenders;
- market conditions and trends for floating storage and regasification units ("FSRUs") and liquefied natural gas ("LNG") carriers, including hire rates, vessel valuations, technological advancements, market preferences and factors affecting supply and demand of LNG, LNG carriers, and FSRUs;
- the Partnership's distribution policy and ability to make cash distributions on our units or any increases in the quarterly distributions on the Partnership's common units;
- restrictions in the Partnership's debt agreements and pursuant to local laws on the Partnership's joint ventures' and the subsidiaries' ability to make distributions;
- the ability of Höegh LNG to meet its financial obligations to us pursuant to the Subsequent Charter, its guarantee and indemnification obligations;
- the change in the ability of Höegh LNG to compete with the Partnership as a result of its completion of the Amalgamation;
- the Partnership's ability to compete successfully for future chartering and newbuilding opportunities;
- demand in the FSRU sector or the LNG shipping sector; including demand for the Partnership's vessels;
- the Partnership's ability to purchase additional vessels from Höegh LNG in the future;
- the Partnership's ability to integrate and realize the anticipated benefits from acquisitions;
- the Partnership's anticipated growth strategies; including the acquisition of vessels;
- the Partnership's anticipated receipt of dividends and repayment of indebtedness from subsidiaries and joint ventures;
- effects of volatility in global prices for crude oil and natural gas;
- the effect of the worldwide economic environment;
- turmoil in the global financial markets;
- fluctuations in currencies and interest rates;
- general market conditions, including fluctuations in hire rates and vessel values;
- changes in the Partnership's operating expenses, including drydocking, on-water class surveys, insurance costs and bunker costs;
- the Partnership's ability to comply with financing agreements and the expected effect of restrictions and covenants in such agreements;
- the financial condition, liquidity and creditworthiness of the Partnership's existing or future customers and their ability to satisfy their obligations under the Partnership's contracts;
- the Partnership's ability to replace existing borrowings (including the Lampung facility and the Neptune facility), make additional borrowings and to access public equity and debt capital markets;
- planned capital expenditures and availability of capital resources to fund capital expenditures;
- the exercise of purchase options by our customers;
- the Partnership's ability to perform under its contracts and maintain long-term relationships with its customers;
- the Partnership's ability to leverage Höegh LNG's relationships and reputation in the shipping industry;
- the Partnership's continued ability to enter into long-term, fixed-rate charters and the hire rate thereof;
- the operating performance of the Partnership's vessels and any related claims by Total S.A. or other customers;
- the Partnership's ability to maximize the use of its vessels, including the redeployment or disposition of vessels no longer under long-term charters;
- timely acceptance of the Partnership's vessels by their charterers;
- termination dates and extensions of charters;
- the cost of, and the Partnership's ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by its charterers applicable to its business;
- economic substance laws and regulations adopted or considered by various jurisdictions of formation or incorporation of the Partnership and certain of its subsidiaries;
- availability and cost of skilled labor, vessel crews and management, including possible disruptions, including but not limited to the supply chain of spare parts and service engineers, caused by the COVID-19 outbreak;
- the number of offhire days and drydocking requirements, including the Partnership's ability to complete scheduled drydocking on time and within budget;
- the Partnership's general and administrative expenses as a publicly traded limited partnership and fees and expenses payable under the Partnership's ship management agreements, the technical information and services agreement and the administrative services agreements;
- the anticipated taxation of the Partnership, its subsidiaries and affiliates and distributions to unitholders;
- estimated future maintenance and replacement capital expenditures;
- the Partnership's ability to hire or retain key employees;
- customers' increasing emphasis on environmental and safety concerns;
- potential liability from any pending or future litigation;
- risks inherent in the operation of the partnership's vessels including potential disruption due to accidents, political events, piracy or acts by terrorists;
- future sales of Partnership's common units, Series A preferred units and other securities in the public market;
- Partnership's business strategy and other plans and objectives for future operations;
- Partnership's ability to maintain effective internal control over financial reporting and effective disclosure controls and procedures; and
- other factors listed from time to time in the reports and other documents that the Partnership files with the SEC, including the Partnership's Annual Report on Form 20-F for the year ended December 31, 2020 and subsequent quarterly reports on Form 6-K.
All forward-looking statements included in this press release are made only as of the date of this release. New factors emerge from time to time, and it is not possible for the Partnership to predict all of these factors. Further, the Partnership cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. The Partnership does not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.
HÖEGH LNG PARTNERS LP | ||||||||
UNAUDITED CONDENSED INTERIM CONSOLIDATED | ||||||||
STATEMENTS OF INCOME | ||||||||
(in thousands of U.S. dollars, except per unit amounts) | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
REVENUES | ||||||||
Time charter revenues | $ | 34,776 | $ | 36,686 | ||||
Total revenues | 34,776 | 36,686 | ||||||
OPERATING EXPENSES | ||||||||
Vessel operating expenses | (6,172) | (5,507) | ||||||
Administrative expenses | (2,735) | (2,428) | ||||||
Depreciation and amortization | (5,210) | (5,282) | ||||||
Total operating expenses | (14,117) | (13,217) | ||||||
Equity in earnings (losses) of joint ventures | 11,073 | (10,047) | ||||||
Operating income (loss) | 31,732 | 13,422 | ||||||
FINANCIAL INCOME (EXPENSE), NET | ||||||||
Interest income | 133 | 172 | ||||||
Interest expense | (5,658) | (6,511) | ||||||
Other items, net | (653) | (647) | ||||||
Total financial income (expense), net | (6,178) | (6,986) | ||||||
Income (loss) before tax | 25,554 | 6,436 | ||||||
Income tax expense | (1,716) | (962) | ||||||
Net income (loss) | $ | 23,838 | $ | 5,474 | ||||
Preferred unitholders' interest in net income | 3,877 | 3,668 | ||||||
Limited partners' interest in net income (loss) | $ | 19,961 | $ | 1,806 | ||||
Earnings per unit | ||||||||
Common unit public (basic and diluted) | $ | 0.59 | $ | 0.04 | ||||
Common unit Höegh LNG (basic and diluted) | $ | 0.61 | $ | 0.07 | ||||
HÖEGH LNG PARTNERS LP | ||||||||
UNAUDITED CONDENSED INTERIM CONSOLIDATED | ||||||||
BALANCE SHEETS | ||||||||
(in thousands of U.S. dollars) | ||||||||
As of | ||||||||
March 31, | December 31, | |||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 27,070 | $ | 31,770 | ||||
Restricted cash | 7,116 | 7,198 | ||||||
Trade receivables | 4,585 | 415 | ||||||
Amounts due from affiliates | 3,722 | 3,639 | ||||||
Advances to joint ventures | 3,350 | 3,284 | ||||||
Current portion of net investment in financing lease | 5,080 | 4,969 | ||||||
Prepaid expenses and other receivables | 4,698 | 3,883 | ||||||
Total current assets | 55,621 | 55,158 | ||||||
Long-term assets | ||||||||
Restricted cash | 11,994 | 12,095 | ||||||
Accumulated earnings of joint ventures | 20,763 | 9,690 | ||||||
Advances to joint ventures | 886 | 869 | ||||||
Vessels, net of accumulated depreciation | 614,415 | 619,620 | ||||||
Other equipment | 85 | 109 | ||||||
Intangibles and goodwill | 13,376 | 14,056 | ||||||
Net investment in financing lease | 267,976 | 269,288 | ||||||
Long-term deferred tax asset | 99 | 102 | ||||||
Other long-term assets | 823 | 823 | ||||||
Total long-term assets | 930,417 | 926,652 | ||||||
Total assets | $ | 986,038 | $ | 981,810 | ||||
HÖEGH LNG PARTNERS LP | ||||||||
UNAUDITED CONDENSED INTERIM CONSOLIDATED | ||||||||
BALANCE SHEETS | ||||||||
(in thousands of U.S. dollars) | ||||||||
As of | ||||||||
March 31, | December 31, | |||||||
2021 | 2020 | |||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Current portion of long-term debt | $ | 58,075 | $ | 59,119 | ||||
Trade payables | 426 | 467 | ||||||
Amounts due to owners and affiliates | 2,531 | 2,600 | ||||||
Value added and withholding tax liability | 1,210 | 1,445 | ||||||
Derivative instruments | 6,661 | 6,945 | ||||||
Accrued liabilities and other payables | 8,793 | 7,232 | ||||||
Total current liabilities | 77,696 | 77,808 | ||||||
Long-term liabilities | ||||||||
Long-term debt | 345,872 | 355,470 | ||||||
Revolving credit facility due to owners and affiliates | 18,191 | 18,465 | ||||||
Derivative instruments | 13,417 | 19,530 | ||||||
Long-term tax liability | 1,605 | 2,668 | ||||||
Long-term deferred tax liability | 15,123 | 14,430 | ||||||
Other long-term liabilities | 114 | 124 | ||||||
Total long-term liabilities | 394,322 | 410,687 | ||||||
Total liabilities | 472,018 | 488,495 | ||||||
EQUITY | ||||||||
7,089,325 units issued and outstanding at March 31, 2021 and 6,752,333 units issued and outstanding at December 31, 2020 | 176,078 | 167,760 | ||||||
Common units public: 18,103,544 units issued and outstanding at March 31, 2021 and 18,050,941 units issued and outstanding at December 31, 2020 | 312,320 | 308,850 | ||||||
Common units Höegh LNG: 15,257,498 units issued and outstanding at March 31, 2021 and December 31, 2020 | 48,825 | 46,277 | ||||||
Accumulated other comprehensive income (loss) | (23,203) | (29,572) | ||||||
Total partners' capital | 514,020 | 493,315 | ||||||
Total equity | 514,020 | 493,315 | ||||||
Total liabilities and equity | $ | 986,038 | $ | 981,810 | ||||
HÖEGH LNG PARTNERS LP | ||||||||
UNAUDITED CONDENSED INTERIM CONSOLIDATED | ||||||||
STATEMENTS OF CASH FLOWS | ||||||||
(in thousands of U.S. dollars) | ||||||||
Three months ended March 31, | ||||||||
2021 | 2020 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | 23,838 | $ | 5,474 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 5,210 | 5,282 | ||||||
Equity in losses (earnings) of joint ventures | (11,073) | 10,047 | ||||||
Changes in accrued interest income on advances to joint ventures | (83) | (78) | ||||||
Amortization of deferred debt issuance cost | 523 | 592 | ||||||
Amortization in revenue for above market contract | 679 | 905 | ||||||
Changes in accrued interest expense | (156) | (40) | ||||||
Receipts from repayment of principal on financing lease | 1,202 | 1,101 | ||||||
Unrealized foreign exchange losses (gains) | 12 | (27) | ||||||
Unrealized loss (gain) on derivative instruments | 45 | 91 | ||||||
Non-cash revenue: tax paid directly by charterer | (208) | (205) | ||||||
Non-cash income tax expense: tax paid directly by charterer | 208 | 205 | ||||||
Deferred tax expense and provision for tax uncertainty | 665 | (106) | ||||||
Other adjustments | 2 | 102 | ||||||
Changes in working capital: | ||||||||
Trade receivables | (4,201) | (4,447) | ||||||
Prepaid expenses and other receivables | (823) | (575) | ||||||
Trade payables | (40) | 100 | ||||||
Amounts due to owners and affiliates | (152) | (529) | ||||||
Value added and withholding tax liability | (613) | (1,007) | ||||||
Accrued liabilities and other payables | 1,117 | (2,874) | ||||||
Net cash provided by (used in) operating activities | 16,152 | 14,011 | ||||||
INVESTING ACTIVITIES | ||||||||
Net cash provided by (used in) investing activities | — | — | ||||||
FINANCING ACTIVITIES | ||||||||
Repayment of long-term debt | (11,165) | (11,164) | ||||||
Net proceeds from issuance of common units | 818 | — | ||||||
Net proceeds from issuance of Series A preferred units | 8,318 | 2,125 | ||||||
Cash distributions to limited partners and preferred unitholders | (18,956) | (18,714) | ||||||
Net cash provided by (used in) financing activities | (20,985) | (27,753) | ||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (4,833) | (13,742) | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (50) | (103) | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 51,063 | 59,819 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 46,180 | $ | 45,974 | ||||
HÖEGH LNG PARTNERS LP
UNAUDITED SEGMENT INFORMATION FOR THE QUARTER ENDED MARCH 31, 2021 AND 2020
(in thousands of U.S. dollars)
Segment information
There are two operating segments. The segment profit measure is Segment EBITDA, which is defined as earnings before interest, taxes, depreciation, amortization and impairment, and other financial items (gain (loss) on debt extinguishment, gain (loss) on derivative instruments and other items, net). Segment EBITDA is reconciled to operating income and net income in the segment presentation below. The two segments are "Majority held FSRUs" and "Joint venture FSRUs." In addition, unallocated corporate costs, interest income from advances to joint ventures and interest expense related to the outstanding balances on the
For the three months ended March 31, 2021 and 2020, Majority held FSRUs includes the financing lease related to the PGN FSRU Lampung and the operating leases related to the Höegh Gallant and the Höegh Grace.
For the three months ended March 31, 2021 and 2020, Joint venture FSRUs include two
The accounting policies applied to the segments are the same as those applied in the financial statements, except that i) Joint venture FSRUs is presented under the proportional consolidation method for the segment note to the Partnership's financial statements and in the tables below, and under equity accounting for the consolidated financial statements and ii) internal interest income and interest expense between the Partnership's subsidiaries that eliminate in consolidation are not included in the segment columns for the other financial income (expense), net line. Under the proportional consolidation method,
HÖEGH LNG PARTNERS LP | |||||||||||||||||||||||||
UNAUDITED SEGMENT INFORMATION FOR THE QUARTER ENDED MARCH 31, 2021 | |||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||
Three months ended March 31, 2021 | |||||||||||||||||||||||||
Joint venture | |||||||||||||||||||||||||
Majority | FSRUs | Total | |||||||||||||||||||||||
held | (proportional | Segment | Consolidated | ||||||||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | Eliminations | reporting | |||||||||||||||||||
Time charter revenues | $ | 34,776 | 10,459 | — | 45,235 | (10,459) | (1) | $ | 34,776 | ||||||||||||||||
Total revenues | 34,776 | 10,459 | — | 45,235 | 34,776 | ||||||||||||||||||||
Operating expenses | (6,985) | (1,871) | (1,922) | (10,778) | 1,871 | (1) | (8,907) | ||||||||||||||||||
Equity in earnings (losses) of joint ventures | — | — | — | — | 11,073 | (1) | 11,073 | ||||||||||||||||||
Segment EBITDA | 27,791 | 8,588 | (1,922) | 34,457 | |||||||||||||||||||||
Depreciation, amortization and impairment | (5,210) | (2,492) | — | (7,702) | 2,492 | (1) | (5,210) | ||||||||||||||||||
Operating income (loss) | 22,581 | 6,096 | (1,922) | 26,755 | 31,732 | ||||||||||||||||||||
Gain (loss) on derivative instruments | — | 7,673 | — | 7,673 | (7,673) | (1) | — | ||||||||||||||||||
Other financial income (expense), net | (2,114) | (2,696) | (4,064) | (8,874) | 2,696 | (1) | (6,178) | ||||||||||||||||||
Income (loss) before tax | 20,467 | 11,073 | (5,986) | 25,554 | 25,554 | ||||||||||||||||||||
Income tax benefit (expense) | (1,716) | — | — | (1,716) | — | (1,716) | |||||||||||||||||||
Net income (loss) | $ | 18,751 | 11,073 | (5,986) | 23,838 | — | $ | 23,838 | |||||||||||||||||
Preferred unitholders' interest in net income | — | — | — | — | 3,877 | (2) | 3,877 | ||||||||||||||||||
Limited partners' interest in net income (loss) | $ | 18,751 | 11,073 | (5,986) | 23,838 | (3,877) | (2) | $ | 19,961 | ||||||||||||||||
(1) | Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership's share of the Joint venture FSRUs net income (loss) to Equity in earnings (loss) of joint ventures. |
(2) | Allocates the preferred unitholders' interest in net income to the preferred unitholders. |
HÖEGH LNG PARTNERS LP | |||||||||||||||||||||||||
UNAUDITED SEGMENT INFORMATION FOR THE QUARTER ENDED MARCH 31, 2020 | |||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||
Three months ended March 31, 2020 | |||||||||||||||||||||||||
Joint venture | |||||||||||||||||||||||||
Majority | FSRUs | Total | |||||||||||||||||||||||
held | (proportional | Segment | Consolidated | ||||||||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | Eliminations | reporting | |||||||||||||||||||
Time charter revenues | $ | 36,686 | 10,527 | — | 47,213 | (10,527) | (1) | $ | 36,686 | ||||||||||||||||
Total revenues | 36,686 | 10,527 | — | 47,213 | 36,686 | ||||||||||||||||||||
Operating expenses | (6,230) | (3,152) | (1,705) | (11,087) | 3,152 | (1) | (7,935) | ||||||||||||||||||
Equity in earnings (losses) of joint ventures | — | — | — | — | (10,047) | (1) | (10,047) | ||||||||||||||||||
Segment EBITDA | 30,456 | 7,375 | (1,705) | 36,126 | |||||||||||||||||||||
Depreciation, amortization and impairment | (5,282) | (2,495) | — | (7,777) | 2,495 | (1) | (5,282) | ||||||||||||||||||
Operating income (loss) | 25,174 | 4,880 | (1,705) | 28,349 | 13,422 | ||||||||||||||||||||
Gain (loss) on derivative instruments | — | (11,784) | — | (11,784) | 11,784 | (1) | — | ||||||||||||||||||
Other financial income (expense), net | (2,544) | (3,031) | (4,442) | (10,017) | 3,031 | (1) | (6,986) | ||||||||||||||||||
Income (loss) before tax | 22,630 | (9,935) | (6,147) | 6,548 | 6,436 | ||||||||||||||||||||
Income tax benefit (expense) | (962) | (112) | — | (1,074) | 112 | (962) | |||||||||||||||||||
Net income (loss) | $ | 21,668 | (10,047) | (6,147) | 5,474 | — | $ | 5,474 | |||||||||||||||||
Preferred unitholders' interest in net income | — | — | — | — | 3,668 | (2) | 3,668 | ||||||||||||||||||
Limited partners' interest in net income (loss) | $ | 21,668 | (10,047) | (6,147) | 5,474 | (3,668) | (2) | $ | 1,806 | ||||||||||||||||
(1) | Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership's share of the Joint venture FSRUs net income (loss) to Equity in earnings (loss) of joint ventures. |
(2) | Allocates the preferred unitholders' interest in net income to the preferred unitholders. |
HÖEGH LNG PARTNERS LP | ||||||||
UNAUDITED SCHEDULE OF FINANCIAL INCOME AND EXPENSE | ||||||||
(in thousands of U.S. dollars) | ||||||||
The following table includes the financial income (expense), net for the three months ended March 31, 2021 and 2020. | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
(in thousands of U.S. dollars) | 2021 | 2020 | ||||||
Interest income | $ | 133 | $ | 172 | ||||
Interest expense: | ||||||||
Interest expense | (5,056) | (5,793) | ||||||
Amortization and gain (loss) on cash flow hedge | (45) | (91) | ||||||
Commitment fees | (34) | (34) | ||||||
Amortization of debt issuance cost and fair value of debt assumed | (523) | (593) | ||||||
Total interest expense | (5,658) | (6,511) | ||||||
Other items, net: | ||||||||
Unrealized foreign exchange gain (loss) | (12) | 27 | ||||||
Realized foreign exchange gain (loss) | (7) | 21 | ||||||
Bank charges, fees and other | (54) | (85) | ||||||
Withholding tax on interest expense and other | (580) | (610) | ||||||
Total other items, net | (653) | (647) | ||||||
Total financial income (expense), net | $ | (6,178) | $ | (6,986) | ||||
Appendix A: Segment EBITDA
Non-GAAP Financial Measure
Segment EBITDA. EBITDA is defined as earnings before interest, depreciation and amortization and taxes. Segment EBITDA is defined as earnings before interest, taxes depreciation, amortization, impairment and other financial items. Other financial items consist of gain (loss) on debt extinguishment, gain (loss) on derivative instruments and other items, net (including foreign exchange gains and losses and withholding tax on interest expenses). Segment EBITDA is used as a supplemental financial measure by management and external users of financial statements, such as the Partnership's lenders, to assess its financial and operating performance. The Partnership believes that Segment EBITDA assists its management and investors by increasing the comparability of its performance from period to period and against the performance of other companies in the industry that provide Segment EBITDA information. This increased comparability is achieved by excluding the potentially disparate effects between periods or companies of interest, depreciation and amortization, taxes, and other financial items, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. The Partnership believes that including Segment EBITDA as a financial and operating measure benefits investor in (a) selecting between investing in it and other investment alternatives and (b) monitoring its ongoing financial and operational strength in assessing whether to continue to hold common units or preferred units. Segment EBITDA is a non-GAAP financial measure and should not be considered an alternative to net income, operating income or any other measure of financial performance presented in accordance with U.S. GAAP. Segment EBITDA excludes some, but not all, items that affect net income, and these measures may vary among other companies. Therefore, Segment EBITDA as presented below may not be comparable to similarly titled measures of other companies. The following tables reconcile Segment EBITDA for each of the segments and the Partnership as a whole to net income (loss), the comparable U.S. GAAP financial measure, for the periods presented:
Three months ended March 31, 2021 | |||||||||||||||||||||||||||
Joint venture | |||||||||||||||||||||||||||
Majority | FSRUs | Total | |||||||||||||||||||||||||
held | (proportional | Segment | Elimin- | Consolidated | |||||||||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | ations(1) | reporting | |||||||||||||||||||||
Reconciliation to net income (loss) | |||||||||||||||||||||||||||
Net income (loss) | $ | 18,751 | 11,073 | (5,986) | 23,838 | $ | 23,838 | (3) | |||||||||||||||||||
Interest income | (50) | — | (83) | (133) | — | (4) | (133) | ||||||||||||||||||||
Interest expense | 1,563 | 2,692 | 4,095 | 8,350 | (2,692) | (4) | 5,658 | ||||||||||||||||||||
Depreciation, amortization and impairment | 5,210 | 2,492 | — | 7,702 | (2,492) | (5) | 5,210 | ||||||||||||||||||||
Other financial items (2) | 601 | (7,669) | 52 | (7,016) | 7,669 | (6) | 653 | ||||||||||||||||||||
Income tax (benefit) expense | 1,716 | — | — | 1,716 | — | 1,716 | |||||||||||||||||||||
Equity in earnings of JVs: Interest (income) expense, net | — | — | — | — | 2,692 | (4) | 2,692 | ||||||||||||||||||||
Equity in earnings of JVs: Depreciation, amortization and impairment | — | — | — | — | 2,492 | (5) | 2,492 | ||||||||||||||||||||
Equity in earnings of JVs: Other financial items (2) | — | — | — | — | (7,669) | (6) | (7,669) | ||||||||||||||||||||
Segment EBITDA | $ | 27,791 | 8,588 | (1,922) | 34,457 | $ | 34,457 | ||||||||||||||||||||
Three months ended March 31, 2020 | |||||||||||||||||||||||||||
Joint venture | |||||||||||||||||||||||||||
Majority | FSRUs | Total | |||||||||||||||||||||||||
held | (proportional | Segment | Elimin- | Consolidated | |||||||||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | ations(1) | reporting | |||||||||||||||||||||
Reconciliation to net income (loss) | |||||||||||||||||||||||||||
Net income (loss) | $ | 21,668 | (10,047) | (6,147) | 5,474 | $ | 5,474 | (3) | |||||||||||||||||||
Interest income | (60) | (51) | (112) | (223) | 51 | (4) | (172) | ||||||||||||||||||||
Interest expense | 1,997 | 3,079 | 4,514 | 9,590 | (3,079) | (4) | 6,511 | ||||||||||||||||||||
Depreciation, amortization and impairment | 5,282 | 2,495 | — | 7,777 | (2,495) | (5) | 5,282 | ||||||||||||||||||||
Other financial items (2) | 607 | 11,787 | 40 | 12,434 | (11,787) | ||||||||||||||||||||||
FAQ
What were Höegh LNG Partners' financial results for Q1 2021?
How does Q1 2021 net income compare to Q1 2020 for HMLP?
What risks does Höegh LNG Partners face moving forward?
What is the Segment EBITDA for HMLP in Q1 2021?
