Höegh LNG Partners Sinks to Loss in Q1
Image Courtesy: Hoegh LNG PartnersHöegh LNG Partners LP reported a net loss of USD 1 million for the first quarter of this year, a decrease of USD 3.6 million from net income of USD 2.6 million reported in the corresponding period in 2015.
The net loss was impacted by the unrealized gains on derivative instruments mainly on the Partnership’s share of equity in earnings of joint ventures, the company said.
The equity in losses of joint ventures, which own the vessels GDF Suez Neptune and the GDF Suez Cape Ann, was USD 6.7 million in Q1, 2016, an increase of USD 4.6 million year-on-year.
Operating income for the three months ended March 31, 2016 was USD 6.2 million, up by USD 1.2 million with adjusted EBITDA at USD 25.2 million, an increase of USD 9.3 million when compared to a year earlier.
“During the first quarter of 2016, Höegh LNG Partners achieved record LNG regas volumes, which underscores the strategic and economic benefits of our floating LNG terminals. Taking into consideration the scheduled maintenance on the Höegh Gallant and fewer operating days in the first quarter, we generated consistent financial performance compared to the previous quarter. The Partnership’s stable cash flows are generated by long-term contracts that are fixed rate and have an average remaining term of 14 years,” Richard Tyrrell, Chief Executive Officer and Chief Financial Officer said.
According to Tyrrell, the company expects to have an opportunity to acquire the Höegh Grace once it goes on contract in the second half of this year.
