Höegh LNG Partners LP Reports Preliminary Financial Results for the Quarter Ended December 31, 2020
Höegh LNG Partners LP (NYSE: HMLP) reported preliminary financial results for Q4 2020 with time charter revenues of $36.1 million, down from $38.5 million in Q4 2019. Net income was $18.5 million, compared to $18.7 million a year earlier. Operating income decreased to $25.5 million, influenced by unrealized gains on derivatives. Segment EBITDA rose to $34.9 million. Despite challenges from COVID-19, the Partnership maintained 100% availability of its FSRUs and paid a distribution of $0.44 per unit for Q4 2020.
- Achieved 100% availability of FSRUs in Q4 2020, ensuring reliable service.
- Segment EBITDA increased to $34.9 million from $34.6 million year-over-year.
- Successful execution of cost-saving measures led to a $2.6 million reduction in total operating expenses.
- Time charter revenues declined by $2.4 million compared to Q4 2019.
- Net income decreased by $0.2 million year-over-year, indicating minor profitability erosion.
HAMILTON, Bermuda, Feb. 25, 2021 /PRNewswire/ -- Höegh LNG Partners LP (NYSE: HMLP) (the "Partnership") today reported its preliminary financial results for the quarter ended December 31, 2020.
Highlights
- Continued measures to mitigate the risks from the COVID-19 pandemic and ensure health and safety of crews and staff, customers and suppliers, whose wellbeing is the Partnership's highest priority
100% availability of FSRUs for the fourth quarter of 2020- Reported time charter revenues of
$36.1 million for the fourth quarter of 2020, compared to$38.5 million of time charter revenues for the fourth quarter of 2019 - Generated operating income of
$25.5 million , net income of$18.5 million and limited partners' interest in net income of$14.7 million for the fourth quarter of 2020 compared to operating income of$27.9 million , net income of$18.7 million and limited partners' interest in net income of$15.1 million for the fourth quarter of 2019 - Operating income, net income and limited partners' interest in net income were impacted by unrealized gains on derivative instruments for the fourth quarter of 2020 and 2019, mainly on the Partnership's share of equity in earnings of joint ventures
- Excluding the impact of the unrealized gains on derivative instruments for the fourth quarter of 2020 and 2019 impacting the equity in earnings of joint ventures, operating income for the three months ended December 31, 2020 would have been
$24.3 million , an increase of$0.5 million from$23.8 million for the three months ended December 31, 2019 - Generated Segment EBITDA1 of
$34.9 million for the fourth quarter of 2020 compared to$34.6 million for the fourth quarter of 2019 - On February 12, 2021, paid a
$0.44 per unit distribution on the common units with respect to the fourth quarter of 2020, equivalent to$1.76 per unit on an annualized basis - On February 16, 2021, paid a
$0.54 6875 per unit distribution on the8.75% Series A cumulative redeemable preferred units ("Series A preferred units") for the period commencing on November 15, 2020 to February 14, 2021
Sveinung J.S. Støhle, Chief Executive Officer, stated, "Höegh LNG Partners delivered a solid fourth quarter performance marked by
Støhle continued, "Meanwhile, the Partnership's parent, Höegh LNG Holdings, is making important progress in developing future growth opportunities. In addition to securing a dropdown-eligible, long-term FSRU contract for Höegh Giant in India with scheduled startup in the coming weeks, Höegh LNG Holdings has initiated a new Clean Energy initiative with the goal of providing infrastructure solutions for the transportation, storage and distribution of hydrogen and ammonia, as well as developing floating Carbon Capture and Storage solutions, and this will support Höegh LNG's leading industrial platform and high-quality, modern assets in driving forward the energy transition well into the future."
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 December 31, 2020, each of the Partnership's FSRUs have had
The Partnership reported net income for the three months ended December 31, 2020 of
Excluding the impact of the unrealized gains on derivative instruments, net income for the three months ended December 31, 2020 would have been
Preferred unitholders' interest in net income was
Equity in earnings of joint ventures for the three months ended December 31, 2020 was
Operating income for the three months ended December 31, 2020 was
Segment EBITDA1 was
Total operating expenses for the three months ended December 31, 2020 were
Total financial expense, net for the three months ended December 31, 2020 was
Effective January 1, 2020, the Partnership adopted the new accounting standard, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, with recognition of a net decrease to retained earnings of
Segments
The Partnership has two operating segments. The segment profit measure is Segment EBITDA, which is defined as earnings before interest, taxes, depreciation, amortization, impairment and other financial items (gain (loss) on debt extinguishment, gain (loss) on derivative instruments and other items, net). 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
Segment EBITDA for the Majority held FSRUs for the three months ended December 31, 2020 and December 31, 2019 was
Segment EBITDA for the Joint venture FSRUs for the three months ended December 31, 2020 was
For Other, Segment EBITDA consists of administrative expenses. Administrative expenses for the three months ended December 31, 2020 were
Financing and Liquidity
As of December 31, 2020, the Partnership had cash and cash equivalents of
As of December 31, 2020, the Partnership has no material commitments for capital expenditures. No off-hire occurred during the fourth quarter of 2020. However, procedures for the on-water class renewal survey for the Höegh Grace were performed during the fourth quarter of 2020 and are expected to be completed in the first half of 2021. Incurred expenditures of approximately
The Partnership is indemnified by Höegh LNG for its share of the cash impact of the settlement, the arbitration costs and any legal expenses, the technical modifications of the vessels and any prospective boil-off claims or other direct impacts of the settlement agreement. On April 8, and December 11, 2020, the Partnership was indemnified by Höegh LNG for its share of the joint ventures boil-off settlement payments by a reduction of
During the fourth quarter of 2020, the Partnership made quarterly repayments of
The Partnership's book value and outstanding principal of total long-term debt was
As of December 31, 2020, the Partnership's total current liabilities exceeded total current assets by
The Partnership believes its current resources, including the undrawn balances under the
As of December 31, 2020, the Partnership's Indonesian subsidiary is subject to examination by the Indonesian tax authorities for its corporate income tax returns for up to five years following the completion of a fiscal year. As a result, it is likely there will be an examination by the Indonesian tax authorities for the tax return for 2016 during 2021. Based upon the Partnership's experience in Indonesia, tax regulations, guidance and interpretation may not always be clear and may be subject to alternative interpretations or changes in interpretations over time. The examinations may lead to ordinary course adjustments or proposed adjustments to the subsidiary's income taxes with respect to years under examination. Future examinations may or may not result in changes to the Partnership's provisions on tax filings from 2016 through 2020. As of December 31, 2020, the unrecognized tax benefits for uncertain tax positions were
As of December 31, 2020, 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 line "accumulated earnings in joint ventures" on the consolidated balance sheet and are not included in the balance sheet figures disclosed above.
On October 23, 2020, the Partnership drew
On November 13, 2020, the Partnership paid a distribution of
On November 16, 2020, the Partnership paid a distribution of
On December 11, 2020, the joint ventures paid the charterer a total of
For the period from October 1, 2020 to December 31, 2020, the Partnership sold an aggregate of 32,951 Series A preferred units under the ATM program at an average gross sales price of
On February 12, 2021, the Partnership paid a distribution of
On February 16, 2021, the Partnership paid a distribution of
For the period from January 1, 2021 to February 25, 2021, the Partnership sold an aggregate of 336,992 Series A preferred units under the ATM program at an average gross sales price of
Cash Flows
Net cash provided by operating activities was
There was no net cash provided by investing activities for the three months ended December 31, 2020 and December 31, 2019.
Net cash used in financing activities for the three months ended December 31, 2020 was
As a result of the foregoing, cash and cash equivalents increased by
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 February 25, 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 ("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 February 25, 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. Accordingly, the Partnership has commenced the process to refinance the Lampung facility which is expected to take place before the due date of the commercial tranche in October 2021. Detailed discussions are currently ongoing with the Partnership's banks. The Partnership expects to be successful in the refinancing, but as of February 25, 2021, no firm and final commitment letters have been signed in connection with the contemplated refinancing. The Joint venture FSRUs' debt facilities are also approaching maturity dates towards the end of 2021 and in 2022 respectively, and the Partnership has commenced the planning of the refinancing of these facilities together with its joint venture partners. Should the Partnership be unable to obtain the refinancing for the debt maturities, 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 and financial condition.
The outbreak of 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 COVID-19 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 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 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 risks of outbreaks. To date, the Partnership has not had service interruptions on the Partnership's vessels. 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.
Pursuant to the omnibus agreement that the Partnership entered into with Höegh LNG at the time of the initial public offering, Höegh LNG is obligated to offer to the Partnership any floating storage and regasification unit ("FSRU") or LNG carrier operating under a charter of five or more years.
Höegh LNG is actively pursuing the following projects that are subject to a number of conditions, outside its control, impacting the timing and the ability of such projects to go forward. The Partnership may have the opportunity in the future to acquire the FSRUs listed below, when operating under a charter of five years or more, if one of the following projects is fulfilled:
- On December 21, 2018, Höegh LNG announced that it had entered a contract with AGL Shipping Pty Ltd. ("AGL"), a subsidiary of AGL Energy Ltd., to provide a FSRU to service AGL's proposed import facility in Victoria, Australia. The contract is for a period of 10 years and is subject to AGL's final investment decision by the board of directors of AGL Energy Ltd. for the project and obtaining necessary regulatory and environmental approvals.
- Höegh LNG has also won exclusivity to provide a FSRU for potential projects for Australian Industrial Energy ("AIE") at Port Kembla, Australia and for another company in the Asian market. Both projects are dependent on a variety of regulatory approvals or permits as well as final investment decisions.
Höegh LNG has four operating FSRUs, the Höegh Giant (HHI Hull No. 2552), delivered from the shipyard on April 27, 2017, the Höegh Esperanza (HHI Hull No. 2865), delivered from the shipyard on April 5, 2018, Höegh Gannet (HHI Hull No. 2909), delivered from the shipyard on December 6, 2018, and the Höegh Galleon (SHI Hull No. 2220), delivered from the shipyard on August 27, 2019. The Höegh Giant is operating on a contract with Naturgy. On November 19, 2020, Höegh LNG announced a binding commitment to supply H-Energy with a FSRU in Jaigarh, India in the first quarter of 2021. All documentation was completed and signed in February 2021. Höegh Giant will serve this agreement, which is for a period of 10 years with annual termination options for the charterer after year five. The Höegh Esperanza is operating on a contract that commenced on June 7, 2018 with CNOOC Gas & Power Trading and Marketing Ltd. ("CNOOC"). The Höegh Gannet serves on a 12-month LNG carrier contract that commenced in May 2020. The Höegh Galleon operates on an interim LNG carrier contract with Cheniere Marketing International LLP ("Cheniere") that commenced in September 2019.
Pursuant to the terms of the omnibus agreement, the Partnership will have the right to purchase the Höegh Giant, the Höegh Esperanza, the Höegh Gannet and the Höegh Galleon following acceptance by the respective charterer of the related FSRU under a contract of five years or more, subject to reaching an agreement with Höegh LNG regarding the purchase price.
In addition to securing a dropdown-eligible, long-term FSRU contract for Höegh Giant in India with scheduled startup in March 2021, Höegh LNG Holdings has initiated a new Clean Energy initiative with the goal of providing infrastructure solutions for the transportation, storage and distribution of hydrogen and ammonia, as well as developing floating Carbon Capture and Storage solutions.
There can be no assurance that the Partnership will acquire any vessels from Höegh LNG or of the terms upon which any such acquisition may be made.
Presentation of Fourth Quarter 2020 Results
A presentation will be held today, Thursday, February 25, 2021, at 08:30 A.M. (ET) to discuss financial results for the fourth quarter of 2020. 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/942/39873
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 March 4, 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: | 10152102 |
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," "future," "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 its customers, suppliers and lenders;
- market conditions and trends for FSRUs and 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 the Partnership's 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 subsidiaries' ability to make distributions;
- the ability of Höegh LNG to meet its financial obligations to the Partnership pursuant to the Subsequent Charter, its guarantee and indemnification obligations;
- the Partnership's ability to compete successfully for future chartering 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, 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 the Partnership's 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;
- the Partnership's ability to compete successfully for future chartering and newbuilding opportunities;
- 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;
- the availability and cost of low sulfur fuel oil compliant with the International Maritime Organization ("IMO") sulfur emission limit reductions generally referred to as "IMO 2020" that took effect January 1, 2020 and, absent the installation of expensive scrubbers, reduced the maximum allowable sulfur content for fuel oil used in the marine sector, including the Partnership's vessels, from
3.5% to0.5% ; - 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 off-hire 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 the Partnership's 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 its 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 the Partnership's common units, Series A preferred units and other securities in the public market;
- the Partnership's business strategy and other plans and objectives for future operations;
- the 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, 2019 and subsequent annual reports on Form 20-F and quarterly reports on Form 6-K.
All forward-looking statements included in this press release are made only as of the date of this press 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 CONSOLIDATED | ||||||||||||||||
STATEMENTS OF INCOME | ||||||||||||||||
(in thousands of U.S. dollars, except per unit amounts) | ||||||||||||||||
Three months ended | Year ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
REVENUES | ||||||||||||||||
Time charter revenues | $ | 36,059 | $ | 38,487 | $ | 143,095 | $ | 145,321 | ||||||||
Other revenue | — | 51 | — | 115 | ||||||||||||
Total revenues | 36,059 | 38,538 | 143,095 | 145,436 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Vessel operating expenses | (6,826) | (9,214) | (24,072) | (30,870) | ||||||||||||
Administrative expenses | (2,703) | (2,785) | (9,740) | (9,861) | ||||||||||||
Depreciation and amortization | (5,210) | (5,280) | (20,937) | (21,477) | ||||||||||||
Total operating expenses | (14,739) | (17,279) | (54,749) | (62,208) | ||||||||||||
Equity in earnings (losses) of joint ventures | 4,217 | 6,680 | 6,420 | 6,078 | ||||||||||||
Operating income (loss) | 25,537 | 27,939 | 94,766 | 89,306 | ||||||||||||
FINANCIAL INCOME (EXPENSE), NET | ||||||||||||||||
Interest income | 136 | 262 | 605 | 947 | ||||||||||||
Interest expense | (5,583) | (6,751) | (24,430) | (27,692) | ||||||||||||
Gain (loss) on debt extinguishment | — | — | — | 1,030 | ||||||||||||
Other items, net | (252) | (915) | (2,232) | (3,575) | ||||||||||||
Total financial income (expense), net | (5,699) | (7,404) | (26,057) | (29,290) | ||||||||||||
Income (loss) before tax | 19,838 | 20,535 | 68,709 | 60,016 | ||||||||||||
Income tax expense | (1,325) | (1,789) | (5,564) | (7,275) | ||||||||||||
Net income (loss) | $ | 18,513 | $ | 18,746 | $ | 63,145 | $ | 52,741 | ||||||||
Preferred unitholders' interest in net income | 3,785 | 3,626 | 14,802 | 13,850 | ||||||||||||
Limited partners' interest in net income (loss) | $ | 14,728 | $ | 15,120 | $ | 48,343 | $ | 38,891 | ||||||||
Earnings per Unit | ||||||||||||||||
Common unit public (basic and diluted) | $ | 0.43 | $ | 0.44 | $ | 1.40 | $ | 1.12 | ||||||||
Common unit Höegh LNG (basic and diluted) | $ | 0.46 | $ | 0.47 | $ | 1.51 | $ | 1.84 | ||||||||
Subordinated unit Höegh LNG (basic and diluted) | $ | — | $ | — | $ | — | $ | 0.70 | ||||||||
HÖEGH LNG PARTNERS LP | ||||||||
UNAUDITED CONDENSED CONSOLIDATED | ||||||||
BALANCE SHEETS | ||||||||
(in thousands of U.S. dollars) | ||||||||
As of | ||||||||
December 31, | December 31, | |||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 31,770 | $ | 39,126 | ||||
Restricted cash | 7,198 | 8,066 | ||||||
Trade receivables | 415 | 735 | ||||||
Amounts due from affiliates | 3,639 | 4,296 | ||||||
Advances to joint ventures | 3,284 | — | ||||||
Inventory | — | 463 | ||||||
Current portion of net investment in financing lease | 4,969 | 4,551 | ||||||
Prepaid expenses and other receivables | 3,883 | 2,534 | ||||||
Total current assets | 55,158 | 59,771 | ||||||
Long-term assets | ||||||||
Restricted cash | 12,095 | 12,627 | ||||||
Accumulated earnings of joint ventures | 9,690 | 3,270 | ||||||
Advances to joint ventures | 869 | 3,831 | ||||||
Vessels, net of accumulated depreciation | 619,620 | 640,431 | ||||||
Other equipment | 109 | 256 | ||||||
Intangibles and goodwill | 14,056 | 17,108 | ||||||
Net investment in financing lease | 269,288 | 274,353 | ||||||
Long-term deferred tax asset | 102 | 217 | ||||||
Other long-term assets | 823 | 936 | ||||||
Total long-term assets | 926,652 | 953,029 | ||||||
Total assets | $ | 981,810 | $ | 1,012,800 | ||||
HÖEGH LNG PARTNERS LP | ||||||||
UNAUDITED CONDENSED CONSOLIDATED | ||||||||
BALANCE SHEETS | ||||||||
(in thousands of U.S. dollars) | ||||||||
As of | ||||||||
December 31, | December 31, | |||||||
2020 | 2019 | |||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Current portion of long-term debt | $ | 59,119 | $ | 44,660 | ||||
Trade payables | 467 | 533 | ||||||
Amounts due to owners and affiliates | 2,600 | 2,513 | ||||||
Value added and withholding tax liability | 1,445 | 1,476 | ||||||
Derivative instruments | 6,945 | 2,907 | ||||||
Accrued liabilities and other payables | 7,232 | 11,164 | ||||||
Total current liabilities | 77,808 | 63,253 | ||||||
Long-term liabilities | ||||||||
Long-term debt | 355,470 | 412,301 | ||||||
Revolving credit facility due to owners and affiliates | 18,465 | 8,792 | ||||||
Derivative instruments | 19,530 | 12,028 | ||||||
Long-term tax liability | 2,668 | 2,283 | ||||||
Long-term deferred tax liability | 14,430 | 12,549 | ||||||
Other long-term liabilities | 124 | 84 | ||||||
Total long-term liabilities | 410,687 | 448,037 | ||||||
Total liabilities | 488,495 | 511,290 | ||||||
EQUITY | ||||||||
6,752,333 units issued and outstanding at December 31, 2020 and 6,625,590 units issued and outstanding at December 31, 2019 | 167,760 | 164,482 | ||||||
Common units public 18,050,941 units issued and outstanding at December 31, 2020 and 18,028,786 units issued and outstanding at December 31, 2019 | 308,850 | 315,176 | ||||||
Common units Höegh LNG 15,257,498 units issued and outstanding at December 31, 2020 and December 31, 2019 | 46,277 | 39,795 | ||||||
Accumulated other comprehensive income (loss) | (29,572) | (17,943) | ||||||
Total partners' capital | 493,315 | 501,510 | ||||||
Total equity | 493,315 | 501,510 | ||||||
Total liabilities and equity | $ | 981,810 | $ | 1,012,800 | ||||
HÖEGH LNG PARTNERS LP | ||||||||
UNAUDITED CONDENSED CONSOLIDATED | ||||||||
STATEMENTS OF CASH FLOWS | ||||||||
(in thousands of U.S. dollars) | ||||||||
Three months ended | ||||||||
December 31, | ||||||||
2020 | 2019 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | 18,513 | $ | 18,746 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 5,210 | 5,280 | ||||||
Equity in losses (earnings) of joint ventures | (4,217) | (6,680) | ||||||
Changes in accrued interest income on advances to joint ventures | (82) | (76) | ||||||
Amortization of deferred debt issuance cost and fair value of debt assumed | 552 | 615 | ||||||
Amortization in revenue for above market contract and extension | 695 | 915 | ||||||
Expenditure for drydocking | — | 39 | ||||||
Changes in accrued interest expense | (146) | 14 | ||||||
Receipts from repayment of principal on financing lease | 1,175 | 1,077 | ||||||
Unrealized foreign exchange losses (gains) | (402) | 255 | ||||||
Unrealized loss (gain) on derivative instruments | 37 | — | ||||||
Non-cash revenue: tax paid directly by charterer | (229) | (231) | ||||||
Non-cash income tax expense: tax paid directly by charterer | 229 | 231 | ||||||
Deferred tax expense and provision for tax uncertainty | 475 | 803 | ||||||
Issuance of units for Board of Directors' fees | 53 | — | ||||||
Other adjustments | (14) | 81 | ||||||
Changes in working capital: | ||||||||
Trade receivables | 4,120 | 3,755 | ||||||
Prepaid expenses and other receivables | (603) | (705) | ||||||
Trade payables | 197 | (49) | ||||||
Amounts due to owners and affiliates | 192 | (315) | ||||||
Value added and withholding tax liability | 476 | (18) | ||||||
Accrued liabilities and other payables | (551) | 2,503 | ||||||
Net cash provided by (used in) operating activities | $ | 25,680 | $ | 26,240 | ||||
INVESTING ACTIVITIES | ||||||||
Expenditure for vessel and other equipment | — | — | ||||||
Net cash provided by (used in) investing activities | $ | — | $ | — | ||||
HÖEGH LNG PARTNERS LP | ||||||||
UNAUDITED CONDENSED CONSOLIDATED | ||||||||
STATEMENTS OF CASH FLOWS | ||||||||
(in thousands of U.S. dollars) | ||||||||
Three months ended | ||||||||
December 31, | ||||||||
2020 | 2019 | |||||||
FINANCING ACTIVITIES | ||||||||
Proceeds from revolving credit facility due to owners and affiliates | $ | 10,650 | $ | — | ||||
Repayment of long-term debt | (11,165) | (11,165) | ||||||
Net proceeds from issuance of | 781 | 10,346 | ||||||
Cash distributions to limited partners and preferred unitholders | (18,745) | (18,621) | ||||||
Net cash provided by (used in) financing activities | (18,479) | (19,440) | ||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 7,201 | 6,800 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 80 | 51 | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 43,782 | 52,968 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 51,063 | $ | 59,819 | ||||
HÖEGH LNG PARTNERS LP
UNAUDITED SEGMENT INFORMATION FOR THE QUARTERS ENDED DECEMBER 31, 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, 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 December 31, 2020 and 2019, 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 December 31, 2020 and 2019, Joint venture FSRUs includes 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 DECEMBER 31, 2020 | ||||||||||||||||||||||||
(in thousands of U.S. dollars) | ||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||
Joint venture | ||||||||||||||||||||||||
Majority | FSRUs | Total | ||||||||||||||||||||||
held | (proportional | Segment | Consolidated | |||||||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | Eliminations | reporting | ||||||||||||||||||
Time charter revenues | $ | 36,059 | 10,012 | — | 46,071 | (10,012) | (1) | $ | 36,059 | |||||||||||||||
Total revenues | 36,059 | 10,012 | — | 46,071 | 36,059 | |||||||||||||||||||
Operating expenses | (7,786) | (1,685) | (1,743) | (11,214) | 1,685 | (1) | (9,529) | |||||||||||||||||
Equity in earnings (losses) of joint ventures | — | — | — | — | 4,217 | (1) | 4,217 | |||||||||||||||||
Segment EBITDA | 28,273 | 8,327 | (1,743) | 34,857 | ||||||||||||||||||||
Depreciation, amortization and impairment | (5,210) | (2,492) | — | (7,702) | 2,492 | (1) | (5,210) | |||||||||||||||||
Operating income (loss) | 23,063 | 5,835 | (1,743) | 27,155 | 25,537 | |||||||||||||||||||
Gain (loss) on derivative instruments | — | 1,191 | — | 1,191 | (1,191) | (1) | — | |||||||||||||||||
Other financial income (expense), net | (1,876) | (2,809) | (3,823) | (8,508) | 2,809 | (1) | (5,699) | |||||||||||||||||
Income (loss) before tax | 21,187 | 4,217 | (5,566) | 19,838 | — | 19,838 | ||||||||||||||||||
Income tax benefit (expense) | (1,325) | — | — | (1,325) | — | (1,325) | ||||||||||||||||||
Net income (loss) | $ | 19,862 | 4,217 | (5,566) | 18,513 | — | $ | 18,513 | ||||||||||||||||
Preferred unitholders' interest in net income | — | — | — | — | 3,785 | (2) | 3,785 | |||||||||||||||||
Limited partners' interest in net income (loss) | $ | 19,862 | 4,217 | (5,566) | 18,513 | (3,785) | (2) | $ | 14,728 | |||||||||||||||
(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 DECEMBER 31, 2019 | ||||||||||||||||||||||||
(in thousands of U.S. dollars) | ||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||
Joint venture | ||||||||||||||||||||||||
Majority | FSRUs | Total | ||||||||||||||||||||||
held | (proportional | Segment | Consolidated | |||||||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | Eliminations | reporting | ||||||||||||||||||
Time charter revenues | $ | 38,487 | 10,533 | — | 49,020 | (10,533) | (1) | $ | 38,487 | |||||||||||||||
Other revenue | 51 | (3) | — | — | 51 | 51 | ||||||||||||||||||
Total revenues | 38,538 | 10,533 | — | 49,071 | 38,538 | |||||||||||||||||||
Operating expenses | (10,194) | (2,452) | (1,805) | (14,451) | 2,452 | (1) | (11,999) | |||||||||||||||||
Equity in earnings (losses) of joint ventures | — | — | — | — | 6,680 | (1) | 6,680 | |||||||||||||||||
Segment EBITDA | 28,344 | 8,081 | (1,805) | 34,620 | ||||||||||||||||||||
Depreciation, amortization and impairment | (5,280) | (2,498) | — | (7,778) | 2,498 | (1) | (5,280) | |||||||||||||||||
Operating income (loss) | 23,064 | 5,583 | (1,805) | 26,842 | 27,939 | |||||||||||||||||||
Gain (loss) on derivative instruments | — | 4,145 | — | 4,145 | (4,145) | (1) | — | |||||||||||||||||
Other financial income (expense), net | (2,745) | (3,048) | (4,659) | (10,452) | 3,048 | (1) | (7,404) | |||||||||||||||||
Income (loss) before tax | 20,319 | 6,680 | (6,464) | 20,535 | — | 20,535 | ||||||||||||||||||
Income tax benefit (expense) | (1,792) | — | 3 | (1,789) | — | (1,789) | ||||||||||||||||||
Net income (loss) | $ | 18,527 | 6,680 | (6,461) | 18,746 | — | $ | 18,746 | ||||||||||||||||
Preferred unitholders' interest in net income | — | — | — | — | 3,626 | (2) | 3,626 | |||||||||||||||||
Limited partners' interest in net income (loss) | $ | 18,527 | 6,680 | (6,461) | 18,746 | (3,626) | (2) | $ | 15,120 | |||||||||||||||
(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. | |
(3) | Other revenue relates to a final insurance settlement for the 2018 technical issues on the Höegh Gallant. |
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 December 31, 2020 and 2019. | ||||||||
Three months ended | ||||||||
December 31, | ||||||||
(in thousands of U.S. dollars) | 2020 | 2019 | ||||||
Interest income | $ | 136 | $ | 262 | ||||
Interest expense: | ||||||||
Interest expense | (4,997) | (6,101) | ||||||
Commitment fees | (35) | (35) | ||||||
Amortization of debt issuance cost and fair value of debt assumed | (551) | (615) | ||||||
Total interest expense | (5,583) | (6,751) | ||||||
Other items, net: | ||||||||
Unrealized foreign exchange gain (loss) | 402 | (255) | ||||||
Realized foreign exchange gain (loss) | (15) | 19 | ||||||
Bank charges, fees and other | (56) | (49) | ||||||
Withholding tax on interest expense and other | (583) | (630) | ||||||
Total other items, net | (252) | (915) | ||||||
Total financial income (expense), net | $ | (5,699) | $ | (7,404) | ||||
Appendix A: Segment EBITDA
Non-GAAP Financial Measures
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, amortization, impairment, 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 investors 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 | ||||||||||||||||||||||||
Joint venture | ||||||||||||||||||||||||
Majority | FSRUs | Total | ||||||||||||||||||||||
held | (proportional | Segment | Consolidated | |||||||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | Eliminations(1) | reporting | ||||||||||||||||||
Reconciliation to net income (loss) | ||||||||||||||||||||||||
Net income (loss) | $ | 19,862 | 4,217 | (5,566) | 18,513 | $ | 18,513 | (3) | ||||||||||||||||
Interest income | (52) | — | (84) | (136) | — | (4) | (136) | |||||||||||||||||
Interest expense | 1,773 | 2,804 | 3,810 | 8,387 | (2,804) | (4) | 5,583 | |||||||||||||||||
Depreciation, amortization and impairment | 5,210 | 2,492 | — | 7,702 | (2,492) | (5) | 5,210 | |||||||||||||||||
Other financial items (2) | 155 | (1,186) | 97 | (934) | 1,186 | (6) | 252 | |||||||||||||||||
Income tax (benefit) expense | 1,325 | — | — | 1,325 | — | 1,325 | ||||||||||||||||||
Equity in earnings of JVs: Interest (income) expense, net | — | — | — | — | 2,804 | (4) | 2,804 | |||||||||||||||||
Equity in earnings of JVs: Depreciation, amortization and impairment | — | — | — | — | 2,492 | (5) | 2,492 | |||||||||||||||||
Equity in earnings of JVs: Other financial items (2) | — | — | — | — | (1,186) | (6) | (1,186) | |||||||||||||||||
Segment EBITDA | $ | 28,273 | 8,327 | (1,743) | 34,857 | $ | 34,857 | |||||||||||||||||
Three months ended | ||||||||||||||||||||||||
Joint venture | ||||||||||||||||||||||||
Majority | FSRUs | Total | ||||||||||||||||||||||
held | (proportional | Segment | Consolidated | |||||||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | Eliminations(1) | reporting | ||||||||||||||||||
Reconciliation to net income (loss) | ||||||||||||||||||||||||
Net income (loss) | $ | 18,527 | 6,680 | (6,461) | 18,746 | $ | 18,746 | (3) | ||||||||||||||||
Interest income | (130) | (73) | (132) | (335) | 73 | (4) | (262) | |||||||||||||||||
Interest expense | 2,010 | 3,114 | 4,741 | 9,865 | (3,114) | (4) | 6,751 | |||||||||||||||||
Depreciation, amortization and impairment | 5,280 | 2,498 | — | 7,778 | (2,498) | (5) | 5,280 | |||||||||||||||||
Other financial items (2) | 865 | (4,138) | 50 | (3,223) | 4,138 | (6) | 915 | |||||||||||||||||
Income tax (benefit) expense | 1,792 | — | (3) | 1,789 | 1,789 | |||||||||||||||||||
Equity in earnings of JVs: Interest (income) expense, net | — | — | — | — | 3,041 | (4) | 3,041 | |||||||||||||||||
Equity in earnings of JVs: Depreciation, amortization and impairment | — | — | — | — | 2,498 | (5) | 2,498 | |||||||||||||||||
Equity in earnings of JVs: Other financial items | — | — | — | — | (4,138) | (6) | (4,138) | |||||||||||||||||
Segment EBITDA | $ | 28,344 | 8,081 | (1,805) | 34,620 | $ | 34,620 | |||||||||||||||||
(1) | Eliminations reverse each of the income statement reconciling line items of the proportional amounts for Joint venture FSRUs that are reflected in the consolidated net income for the Partnership's share of the Joint venture FSRUs net income (loss) on the Equity in earnings (loss) of joint ventures line item in the consolidated income statement. Separate adjustments from the consolidated net income to Segment EBITDA for the Partnership's share of the Joint venture FSRUs are included in the reconciliation lines starting with "Equity in earnings of JVs." | |
(2) | Other financial items consist of gains and losses on derivative financial instruments and other items, net including foreign exchange gains and losses and withholding tax on interest expense. | |
(3) | There is no adjustment between net income for Total Segment reporting and the Consolidated reporting because the net income under the proportional consolidation and equity method of accounting is the same. | |
(4) | Interest income and interest expense for the Joint venture FSRUs is eliminated from the Total Segment reporting to agree to the interest income and interest expense in the Consolidated reporting and reflected as a separate adjustment to the equity accounting on the line Equity in earnings of JVs: Interest (income) expense for the Consolidated reporting. | |
(5) | Depreciation, amortization and impairment for the Joint venture FSRUs is eliminated from the Total Segment reporting to agree to the depreciation, amortization and impairment in the Consolidated reporting and reflected as a separate adjustment to the equity accounting on the line Equity in earnings of JVs: Depreciation, amortization and impairment for the Consolidated reporting. | |
(6) | Other financial items for the Joint venture FSRUs is eliminated from the Segment reporting to agree to the Other financial items in the Consolidated reporting and reflected as a separate adjustment to the equity accounting on the line Equity in earnings of JVs: Other financial items for the Consolidated reporting. |
Appendix B: Distributable Cash Flow
Distributable cash flow represents Segment EBITDA adjusted for cash collections on principal payments on the financing lease, amortization in revenues for above market contracts less non-cash revenue: tax paid directly by charterer, amortization of deferred revenues for the joint ventures, interest income, interest expense less amortization of debt issuance cost, amortization and gain on cash flow hedges included in interest expense and proceeds from settlement of derivatives, other items (net), unrealized foreign exchange losses (gains), current income tax benefit (expense), net of uncertain tax position less non-cash income tax: tax paid directly by charterer, and other adjustments such as indemnification paid or to be paid by Höegh LNG for legal expenses related to the boil-off claim, non-budgeted expenses or losses, or prior period indemnifications refunded to, or to be refunded to, Höegh LNG for amounts recovered from insurance or the charterer, distributions on the Series A preferred units and estimated maintenance and replacement capital expenditures. Cash collections on the financing lease investment with respect to the PGN FSRU Lampung consist of the difference between the payments under time charter and the revenues recognized as a financing lease (representing the payment of the principal recorded as a receivable). Amortization in revenues for above market contracts consist of the non-cash amortization of the intangible for the above market time charter contract related to the acquisitions of the Höegh Gallant and Höegh Grace. Amortization of deferred revenues for the joint ventures accounted for under the equity method consist of non-cash amortization to revenues of charterer payments for modifications and drydocking to the vessels. Non-cash revenue: tax paid directly by charterer and non-cash income tax: tax paid directly by charterer consists of certain taxes paid by the charterer directly to the Colombian tax authorities on behalf of the Partnership's subsidiaries which is recorded as a component of time charter revenues and current income tax expenses. Estimated maintenance and replacement capital expenditures, including estimated expenditures for drydocking, represent capital expenditures required to maintain over the long-term the operating capacity of, or the revenue generated by, the Partnership's capital assets.
Distributable cash flow is presented starting with Segment EBITDA taken from the total segment reporting using the proportional consolidation method for the Partnership's
(in thousands of U.S. dollars) | Three months ended | |||
Segment EBITDA | $ | 34,857 | ||
Cash collection/Principal payment on financing lease | 1,175 | |||
Amortization in revenues for above market contracts | 695 | |||
Non-cash revenue: Tax paid directly by charterer | (229) | |||
Equity in earnings of JVs: Amortization of deferred revenue | (683) | |||
Interest income (1) | 136 | |||
Interest expense (1) | (8,387) | |||
Amortization of debt issuance cost (1) | 592 | |||
Amortization and gain on cash flow hedges included in interest expense | 37 | |||
Other items, net | (257) | |||
Unrealized foreign exchange losses (gains) | (402) | |||
Current income tax benefit (expense), net of uncertain tax position | (850) | |||
Non-cash income tax: Tax paid directly by charter | 229 | |||
Indemnification paid by Höegh LNG for non-budgeted expenses & losses | 315 | |||
Other adjustments: | ||||
Distributions relating to Series A preferred units (2) | (3,785) | |||
Estimated maintenance and replacement capital expenditures | (5,350) | |||
Distributable cash flow | $ | 18,093 | ||
Reconciliation of distributable cash flows to net cash provided by (used in) operating activities | ||||
(in thousands of U.S. dollars) | Three months ended | |||
Distributable cash flow | $ | 18,093 | ||
Estimated maintenance and replacement capital expenditures | 5,350 | |||
Distributions relating to Series A preferred units (2) | 3,785 | |||
Indemnification paid by Höegh LNG for non-budgeted expenses & losses | (315) | |||
Equity in earnings of JVs: Amortization of deferred revenue | 683 | |||
Equity in earnings of JVs: Amortization of debt issuance cost | (40) | |||
Equity in earnings of JVs: Depreciation, amortization and impairment | (2,492) | |||
Equity in earnings of JVs: Gain (loss) on derivative instruments | 1,191 | |||
Equity in losses (earnings) of joint ventures | (4,217) | |||
Changes in accrued interest expense and interest income | (228) | |||
Other adjustments | 39 | |||
Changes in working capital | 3,831 | |||
Net cash provided by (used in) operating activities | $ | 25,680 | ||
(1) | The Partnership's interest in the joint ventures' net interest expense and amortization of debt issuance cost is | |
(2) | Represents distributions payable on Series A preferred units related to the three months ended December 31, 2020 |
Media contact:
The IGB Group, Bryan Degnan, +1 (646) 673-9701 / Leon Berman, +1 (212) 477-8438
Knut Johan Arnholdt, VP IR and Strategy, +47 922 59 131
www.hoeghlngpartners.com
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SOURCE Hoegh LNG Partners LP
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