Hoegh Lng Partners Lp · OTC:HMLPF
Hoegh Lng Partners Lp — Q4 2018 Earnings Presentation
29 slides from Hoegh Lng Partners Lp's earnings presentation, Feb 27, 2019
Slide 1: Höegh LNG Partners LP – 4Q18 Financial Results
Höegh LNG Partners LP – The Floating LNG Infrastructure MLP 4Q18 Financial Results February 27, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements concerning future events and our operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future result
Slide 3: Glossary
Glossary “HMLP” – Höegh LNG Partners LP “HLNG” or “Höegh LNG”– Höegh LNG Holdings Ltd. “Höegh LNG Group” – HMLP and HLNG “LNGC” – Liquefied Natural Gas Carrier “FSRU” – Floating Storage and Regasification Unit “EGAS” – Egyptian Natural Gas Holding Company and counterparty to EgyptCo “E
Slide 4: HMLP Fourth Quarter Highlights
HMLP Fourth Quarter Highlights Reported total revenues of $37.8 million, net income of $16.1 million and limited partners’ interest in net income of $12.8 million for the fourth quarter of 2018 Segment EBITDA(1) of $37.5 million for the fourth quarter of 2018 compared to $33.7 million for the fo
Slide 5: Key figures fourth quarter 2018 versus fourth quarter 2017
Key figures fourth quarter 2018 versus fourth quarter 2017 Three months ended December 31, (in thousands of U.S. dollars) 2018 2017 Total revenues 37,762 37,574 Operating income (loss) 22,235 29,712 Net income 16,111 25,381 Limited partners' interest in net income (loss) 12,759 20,948 Excluding unre
Slide 6: Long-term Contracts, Utility Customers, Stable Cash Flow
Long-term Contracts, Utility Customers, Stable Cash Flow(1) Segment EBITDA(1)(2), $m Indemnity(3) Adj. Net Income(1), $m 40 18 35 16 30 14 25 12 10 20 8 15 6 10 4 5 2 0 0 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 Distributable Cash Flow (1), $m Distribution, $/u
Slide 7: HMLP Fourth Quarter Highlights (cont.)
HMLP Fourth Quarter Highlights (cont.) Three months ended Year ended December 31, December 31, (in thousands of U.S. dollars) 2018 2017 2018 2017 Total revenues $ 37,762 37,574 146,561 $ 143,531 Vessel operating expenses (7,185) (6,077) (24,195) (23,791) Construction contract expenses — — — (151) Ad
Slide 8: Balance Sheet
Balance Sheet As of As of December 31, December 31, (in thousands of U.S. dollars) 2018 2017 ASSETS Current assets Cash and cash equivalents $ 26,326 $ 22,679 Restricted cash 6,003 6,962 Other current assets 14,536 16,785 Total current assets 46,865 46,426 Long-term assets Restricted cash 13,125 13,
Slide 9: Refinancing of Höegh Grace/Höegh Gallant at improved terms
Refinancing of Höegh Grace/Höegh Gallant at improved terms Original facility Refinancing $303 million $ 320 million term- outstanding under Tranches loans original $412 million + $ 63 million RCF facility Tenor 5 years 7 years Profile 15 years 15 years Fixed interest 5% 5% Refinancing of maturing de
Slide 10: Ten Year Average Contract Length and Contract Coverage To 2025
Ten Year Average Contract Length and Contract Coverage To 2025 18 20 22 24 26 28 30 32 34 36 38 Unit Type Ownership Built Region Charterer 20 20 20 20 20 20 20 20 20 20 20 Current HMLP Fleet Neptune FSRU 50% 2009 Turkey Total(2) 18 20 22 24 26 28 30 32 34 36 38 20 20 20 20 20 20 20 20 20 20 20 Type
Slide 11: Sponsor with attractive asset base in active tendering market
Sponsor with attractive asset base in active tendering market 18 20 22 24 26 28 30 32 34 36 38 Unit Type Ownership Built Region Charterer 20 20 20 20 20 20 20 20 20 20 20 HLNG FSRU Fleet Independence FSRU 100% 2014 Lithuania KN Höegh Giant FSRU 100% 2017 WW trading Naturgy Höegh Esperanza FSRU 100%
Slide 12: Global LNG trade accelerating, fuelled by increasing production capacity
Global LNG trade accelerating, fuelled by increasing production capacity Solid outlook for global Global LNG supply and demand LNG demand 800 Impasse on investment 700 decisions for new 600 liquefaction capacity ended Million tonnes 500 LNG Canada: 14 mtpa1 FID2 400 Golden Pass: 16 mtpa FID
Slide 13: 2018: Turning point in LNG and FSRU markets
2018: Turning point in LNG and FSRU markets Year ended 31 December 2017 Year ended 31 December 2018 LNG trade 292 million tonnes 320 million tonnes Liquefaction FIDs 4.5 million tonnes 19 million tonnes 5-year+ Sale-and-Purchase Agreements (excluding non-binding 15 million tonnes 43 million tonnes a
Slide 14: Large number of FSRU projects backed by increasing LNG supplies
Large number of FSRU projects backed by increasing LNG supplies and diverse drivers of demand Enabler Demand drivers FSRU projects1 under Security of supply development 10 Proposed Under development Back-up for hydro 9 8 7 Seasonal demand 6 Increasing 5 supply of 4 Transportation 3 attractively pric
Slide 15: Höegh LNG Partners LP (NYSE:HMLP) – Investment Summary
Höegh LNG Partners LP (NYSE:HMLP) – Investment Summary The Only Publicly Listed Pure Play Owner and Operator of FSRUs Rapidly Growing Supply of Inexpensive LNG Driving FSRU Adoption Modern Assets Providing Critical Energy Infrastructure Portfolio of Long-Term Contracts Supports Strong Distribution C
Slide 16: Appendix
LAGAN HOEGH LNG PARTNERS LP 2s s © ® Q Q x
Slide 17: Non-GAAP Financial Measures: Adjusted Net Income
Non-GAAP Financial Measures Adjusted Net Income and Limited partners’ interest in Adjusted Net Income Adjusted Net Income is defined as net income adjusted for unrealized gains and losses on derivative instruments and foreign exchange gains and losses. Limited partners’ interest in Adjusted Net Inco
Slide 18: Adjusted Net Income (cont.)
Non-GAAP Financial Measures Adjusted Net Income and Limited partners’ interest in Adjusted Net Income (cont.) Three months ended March 31, June 30, September 30, December 31, (in thousands of U.S. dollars) 2018 2018 2018 2018 Net Income (Loss) $ 21,686 19,944 19,882 16,111 Loss (gain) on derivatives
Slide 19: Non-GAAP Financial Measures: Segment EBITDA
Non-GAAP Financial Measures Segment EBITDA Segment EBITDA. EBITDA is defined as earnings before interest, depreciation and amortization and taxes. Segment EBITDA is defined as earnings before interest, depreciation and amortization, taxes and other financial items less non-controlling interest in Se
Slide 20: Segment EBITDA - historical
Segment EBITDA - historical Three months ended September December September December September December March 31, June 30, 30, 31, March 31, June 30, 30, 31, March 31, June 30, 30, 31, (in thousands of U.S. dollars) 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 Reconciliation to net in
Slide 21: Segment EBITDA - 2018
Segment EBITDA - 2018 Three months ended March 31, June 30, September 30, December 31, (in thousands of U.S. dollars) 2018 2018 2018 2018 Reconciliation to net income (loss) Net income (loss) $ 21,686 19,944 19,882 $ 16,111 Interest income (187) (174) (179) (185) Interest expense 6,864 6,918 6,655 6
Slide 22: Segment Reporting – 4Q 2018
Segment Reporting – 4Q 2018 Three months ended December 31, 2018 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Time charter revenues $ 37,257 11,137 — 48,394 (11,137) (2) $ 37,25
Slide 23: Segment Reporting – 4Q 2017
Segment Reporting – 4Q 2017 Three months ended December 31, 2017 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Time charter revenues $ 37,574 10,557 — 48,131 (10,557) (2) $ 37,57
Slide 24: Non-GAAP Financial Measures: Distributable Cash Flow
Non-GAAP Financial Measures Distributable Cash Flow Distributable cash flow represents Segment EBITDA adjusted for cash collections on principal payments on the direct financing lease, amortization in revenues for above market contracts less non-cash revenue: tax paid directly by charterer, amortiza
Slide 25: Distributable Cash Flow
Distributable Cash Flow Three months ended March 31, June 30, September December March 31, June 30, Septembe December March 31, June 30, September December (in thousands of U.S. dollars) 2015 2015 30, 2015 31, 2015 2016 2016 r 30, 2016 31, 2016 2017 2017 30, 2017 31, 2017 Segment EBITDA $ 15,187 15,
Slide 26: Distributable Cash Flow (cont.)
Distributable Cash Flow (cont.) Three months ended March 31, September 30, December 31, (in thousands of U.S. dollars) 2018 June 30, 2018 2018 2018 Segment EBITDA $ 34,868 36,914 36,444 $ 37,464 Cash collection/Principal payment on direct financing lease 920 943 965 986 Amortization in revenues for
Slide 27: Reconciliation of Distributable Cash Flow to Net Cash Provided by Operating Activities
Reconciliation of Distributable Cash Flow to Net Cash Provided by Operating Activities Three months ended March 31, June 30, September December March 31, June 30, September December March 31, June 30, September December (in thousands of U.S. dollars) 2015 2015 30, 2015 31, 2015 2016 2016 30, 2016 31
Slide 28: Reconciliation of Distributable Cash Flow to Net Cash (cont.)
Reconciliation of Distributable Cash Flow to Net Cash Provided by Operating Activities (cont.) Three months ended March 31, September 30, December 31, (in thousands of U.S. dollars) 2018 June 30, 2018 2018 2018 Distributable cash flow $ 17,255 17,955 17,392 $ 18,744 Estimated maintenance and replace
Slide 29: Contact
Contact: www.hoeghlngpartners.com ir@hoeghlngpartners.com