Hoegh Lng Partners Lp · OTC:HMLPF
Hoegh Lng Partners Lp — Q3 2020 Earnings Presentation
36 slides from Hoegh Lng Partners Lp's earnings presentation, Nov 19, 2020
Slide 1: 3Q20 Financial Results
Höegh LNG Partners LP – The Floating LNG Infrastructure MLP 3Q20 Financial Results November 19, 2020
Slide 2: Agenda
Agenda 1 3Q 2020 Highlights 2 3Q 2020 Financials 3 Market update 4 Summary 5 Q&A 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements This report 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 results, per
Slide 4: 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 “PGN” – Perusahaan Gas Negara “SPEC” – Sociedad Portuaria El Cayao S.A. E.S.
Slide 5: HMLP Third Quarter 2020 Highlights
HMLP Third Quarter 2020 Highlights Continued measures to mitigate the risks from the COVID-19 pandemic and ensure the health and safety of crews and staff, whose wellbeing are of highest priority All units operating according to contract and at 100% technical availability in the quarter Total
Slide 6: Over 8.5 Years Average Remaining Contract Length; Full Contract Coverage Through 1H 2025
Over 8.5 Years Average Remaining Contract Length (5) ; Full Contract Coverage Through 1H 2025 Built Ownership Region Charterer 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Höegh LNG Partners Neptune 2009 50 % WW trading Total (2) Cape Ann 2010 50 % W
Slide 7: Agenda
Agenda 1 3Q 2020 Highlights 2 3Q 2020 Financials 3 Market update 4 Summary 5 Q&A 7
Slide 8: Key Figures: Strong Operating Performance in the Third Quarter 2020
Key Figures: Strong Operating Performance in the Third Quarter 2020 (1) Adjusts for share of (gains) losses on derivatives held by joint ventures for operating income (2) Adjusted Net Income, Segment EBITDA and Distributable Cash Flow are non-GAAP financial measures. For a definition of each of thes
Slide 9: Long-term Contracts, Utility Customers, Stable Cash Flow
Long-term Contracts, Utility Customers, Stable Cash Flow(1) Segment EBITDA(1)(2), $m Adj. Net Income(1), $m 40 18 35 16 30 14 25 12 20 10 8 15 6 10 4 5 2 0 0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 1Q15 2Q15 3Q15 4Q15 1Q16 2Q
Slide 10: Income Statement
Income Statement (in thousands of U.S. dollars) REVENUES ‘Time charter revenues Total revenues OPERATING EXPENSES Vessel operating expenses Administrative expenses Total operating expenses Equity in eamings (losses) of joint ventures Operating income (loss) FINANCIAL INCOME (EXPENSE), NET Total fina
Slide 11: Balance Sheet
Balance Sheet (As of As of September 30, December 31, (in thousands of U.S. dollars) 2020 2019 ASSETS Current assets Cash and cash equivalents $ 25,048 $ 39.126 Restricted cash 6,524 8,066 Other current assets 16,174 12,579 Total current assets 47,746. 59,771 Long-term assets Restricted cash 12,210
Slide 12: Agenda
Agenda 1 3Q 2020 Highlights 2 3Q 2020 Financials 3 Market update 4 Summary 5 Q&A 12
Slide 13: 2.3% Growth in Global LNG Trade YTD 2020 Despite the Impact of COVID-19
2.3% Growth in Global LNG Trade YTD 2020 Despite the Impact of COVID-19 Global monthly LNG trade 40 35 Global LNG trade up 2.3% y-o-y YTD 2020 Million tonnes 30 European imports fell by 10% y-o-y 25 Chinese LNG import growth continued in Q3, up 20 13% y-o-y 15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 14: LNG is a Growth Market for the Long Term
LNG is a Growth Market for the Long Term Forecasted Global LNG demand by region 800 700 600 500 Million tonnes 400 300 200 100 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Japan, South Korea, and Taiwan Europe North America Other Asi
Slide 15: 38 FSRUs on the Water – 8 Units in Orderbook
38 FSRUs on the Water – 8 Units in Orderbook 38 FSRUs on water 4 purpose built FSRUs on order – 2Botas assumed open 4 conversions on order – all captive for projects 1: Including purpose built FSRUs and conversions, barges excluded 15 2. Orderbook defined as confirmed orders, excluding LOIs, options
Slide 16: Pipeline of Potential Modern Acquisition Candidates with the Parent (Höegh LNG Holdings)
Pipeline of Potential Modern Acquisition Candidates with the Parent (Höegh LNG Holdings) Built Charterer 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Höegh LNG Holdings Höegh Giant 2017 Naturgy Höegh Esperanza 2018 CNOOC / AGL AGL - Conditional on FI
Slide 17: Project pipeline
Project pipeline Selected as FSRU provider Ongoing tenders Bilateral projects Squadron Energy sole owner Signed lease with NSW Ports FSRU Indian subcontinent Atlantic basin project FID targeted in Q1 2021 In final TCP negotiations − Existing LNG import terminal #4 Planned start-up: Q3
Slide 18: Agenda
Agenda 1 3Q 2020 Highlights 2 3Q 2020 Financials 3 Market update 4 Summary 5 Q&A 18
Slide 19: Höegh LNG Partners LP (NYSE:HMLP) – Investment Summary
Höegh LNG Partners LP (NYSE:HMLP) – Investment Summary No Material Impact from COVID-19 to Date – 100% Availability of all Assets During the Quarter Stable Operating Performance in the Quarter with Segment EBITDA of $36.4 million Robust Distribution Ratio Supported by More than 8.5 Years Average Rem
Slide 20: Agenda
Agenda 1 3Q 2020 Highlights 2 3Q 2020 Financials 3 Market update 4 Summary 5 Q&A 20
Slide 21: Appendix
A HOEGH LNG PARTNERS LP
Slide 22: Segment Reporting – 3Q 2020
Segment Reporting – 3Q 2020 (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 22 ventures. (2) Allocates the prefer
Slide 23: Segment Reporting – 3Q 2019
Segment Reporting – 3Q 2019 (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. 23 (2) Allocates the prefer
Slide 24: Non-GAAP Financial Measures
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 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Income and Limited Partners’ Interest in Adjusted Net Income (cont.) 25
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Income and Limited Partners’ Interest in Adjusted Net Income (cont.) 26
Slide 27: 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, taxes depreciation, amortization, impairment and other financial items. Other financial items cons
Slide 28: Segment EBITDA - historical
Segment EBITDA - historical (1) Other financial items consist of gains and losses on derivative instruments and other items, net including foreign exchange gains or losses and withholding tax on interest expense. 28
Slide 29: Segment EBITDA – 2018, 2019 and 2020
Segment EBITDA – 2018, 2019 and 2020 (1) Other financial items consist of gains and losses on derivative instruments and other items, net including foreign exchange gains or losses and withholding tax on interest expense. 29
Slide 30: 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 financing lease, amortization in revenues for above market contracts less non-cash revenue: tax paid directly by charterer, amortization of
Slide 31: Distributable Cash Flow
Distributable Cash Flow Three months ended March31, June 30, September 20, Decenber31, March3l, June 30, September 30, December 31, March 31, June30,_September30, ‘December 31, (Ga thousands of US. dollars) 2015, 2015 2015 2015 2016 2016 2015 2016 2017 2017 2017 2017 ‘Segment EBITDA s 15,187 15,233
Slide 32: Distributable Cash Flow (cont.)
Distributable Cash Flow (cont.) 32
Slide 33: Reconciliation of Distributable Cash Flow to Net Cash Provided by Operating Activities
Reconciliation of Distributable Cash Flow to Net Cash Provided by Operating Activities 33
Slide 34: Reconciliation of Distributable Cash Flow to Net Cash Provided by Operating Activities (cont.)
Reconciliation of Distributable Cash Flow to Net Cash Provided by Operating Activities (cont.) 34
Slide 35: Net Interest Bearing Debt
Net Interest Bearing Debt Net Debt. Net Debt is defined as long-term debt plus revolving credit and seller’s credit due to owners and affiliates net of cash and cash equivalents, restricted cash and cash designated for acquisition Net Debt is used as a supplemental financial measure used by manageme
Slide 36: Contact
Contact: www.hoeghlngpartners.com ir@hoeghlngpartners.com