Golar Lng Partners Lp 8.75% Cum Red Pfd Unit Ser A · OTC:GMLPF
Golar Lng Partners Lp 8.75% Cum Red Pfd Unit Ser A — Golar LNG Partners — Debt Investor Presentation (April 2020)
38 slides from Golar Lng Partners Lp 8.75% Cum Red Pfd Unit Ser A's debt investor presentation, Apr 2, 2020
Slide 1: Presentation to bondholders April 2020
© Golar LNG Partners LP Presentation to bondholders 1 April 2020
Slide 2: Disclaimer
Disclaimer 2 © Golar LNG Partners LP This presentation (the " Presentation ") contains financial, operational, legal and other information concerning Golar LNG Partners LP ( “GMLP ” or the “Company ”) , its subsidiaries and the combined business of the group in which the Company is the parent (the “
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) 3 © Golar LNG Partners LP This Presentation speaks as of 1 April 2020. The information contained herein is subject to change, completion, or amendment without notice. There may have been changes in matters which affect the Company subsequent to the date of this Presentation. Neit
Slide 4: Summary of risk factors
Summary of risk factors 4 © Golar LNG Partners LP The Company’s ability to service its debt (the Bonds included), will depend upon, among other things, the Group’s future financial and operating performance, which will be affected by prevailing economic conditions and financial business, regulatory
Slide 5: Transaction overview
3 4 5 6 1 2 5 © Golar LNG Partners LP Transaction overview Company update Market overview The Golar Group Risk factors Appendix
Slide 6: Transaction overview: background and capital structure
Transaction overview Background Capital structure FY 2019 Adjusted EBITDA (1) Secured debt (2) 1,239 Unsecured bonds Obligation under capital lease Adjusted total debt 1,762 Cash and cash equivalents Debt / lease related restricted cash (3) Other restricted cash Adjusted net debt (1) 1,532 Due to th
Slide 7: Proposed amendments provide time to get long-term refinancing in place
The proposed amendments will provide GMLP with time to get a long - term refinancing in place Strong cash flow coverage and visibility… …but capital markets currently closed 0 200 400 600 800 1 , 00 0 1 , 20 0 1 , 40 0 1 , 60 0 1 , 80 0 2 , 00 0 2 , 20 0 2 , 40 0 1 , 00 0 1 , 20 0 1 , 40 0 1 , 60 0
Slide 8: Proposed amendments to GOLP02
Proposed amendments to GOLP02 (ISIN NO 0010736481) 8 © Golar LNG Partners LP Existing Bond Terms Proposed amendments Maturity Date 22 May 2020 22 November 2021 (the “ New Maturity Date ”) Coupon 3 months Libor + 440bps 3 months Libor + 625bps Maturity price 100% 105% Call options None - 100% of par
Slide 9: Proposed amendments to GOLP03
Proposed amendments to GOLP03 (ISIN NO 0010786056) 9 © Golar LNG Partners LP Existing Bond Terms Proposed amendments Maturity Date 15 May 2021 15 November 2022 (the “ New Maturity Date ”) Coupon 3 months Libor + 625bps 3 months Libor + 810bps Maturity price 100% 105% Call options None - 100% of par
Slide 10: Equity distribution cut of 95%, cash flow reallocated to bond amortization
Equity distribution cut of 95%, operating cash flow relocated for bond amortization Capital re - allocation from equity distributions to bond amortization Dividend reduction of 95% will retain cash flow to address upcoming maturities and allow for the proposed total USD 90 million amortization of GO
Slide 11: Recent developments
Recent developments USD ~520m of new contract awards and extensions 95% dividend cut Progressing on debt refinancing Feb 20: Golar Grand charter extended for a further year from May 2020 Nov 19: Two - year charter for LNG carrier Golar Maria commencing November 2020 Oct 19: Two - year charter for FS
Slide 12: Market overview
3 4 5 6 1 2 12 © Golar LNG Partners LP Transaction overview Company update Market overview The Golar Group Risk factors Appendix
Slide 13: Owns and operates a fleet of FSRUs, LNGCs and 50% of an FLNG
Owns and operates a fleet of 6 floating storage and regasification units (“ FSRUs ”), 4 liquid natural gas carriers (“ LNGCs ”) and 50% interest in 1 floating liquefaction unit (“ FLNG ”) (1) 45+ years LNG industry experience and long - term relationships with major energy companies 99% average util
Slide 14: Golar LNG Partners a leading LNG infrastructure player
Golar LNG Partners a leading LNG infrastructure player International owner and operator of liquefied natural gas (“LNG”) infrastructure, focused on the midstream segments of the LNG value chain Fleet of six floating storage and regasification units (“FSRUs”), four LNG carriers (“LNGCs”) and a 50% in
Slide 15: Maintained solid revenue backlog
(1) As at December 31, 2019. Revenue backlog represents revenue from our executed contracts and includes our proportionate share of Hilli LLC’s revenue backlog. The USD 2.1bn does not include any “options”, assumes no exercise Maintained solid revenue backlog Recent successful redeployments demonstr
Slide 16: USD 2.1bn of revenue backlog
(1) As at 31 December 2019, Revenue backlog represents revenue from our executed contracts and includes our proportionate share of Hilli LLC’s revenue backlog. The USD 2.1bn does not include any “options” as highlighted in the above graph, assumes no exercise of customer termination rights and does
Slide 17: Stable financial profile through the cycle
Stable financial profile through the cycle Adjusted net debt (1) Adjusted EBITDA (1) Adjusted EBITDA (1) / debt service (2) Adjusted Net debt (1) /Adj. EBITDA (1) 351 368 341 294 309 2016 2015 2017 2018 2019 1,240 1,264 1,069 1,578 1,532 2015 2019 2018 2017 2016 Debt management U S D m U S D m 3 . 5
Slide 18: USD ~152 million in scheduled amortizations next months
USD ~152 million in scheduled amortizations next 12 months GMLP intends to address the 2021 debt maturities once the financial markets return to normal Dividend cut of 95% will retain cash flow to support the upcoming maturities and reduce refinancing risk GMLP estimates that the cash balance in May
Slide 19: Natural gas has a critical role in providing cleaner energy
We believe that Natural Gas has a critical role to play in providing cleaner energy for many years to come: » Natural gas is a highly complimentary companion fuel to renewables » Provides significant emission savings compared to other fossil fuels » Most relevant in remote communities that currently
Slide 20: Market overview
3 4 5 6 1 2 20 © Golar LNG Partners LP Transaction overview Company update Market overview The Golar Group Risk factors Appendix
Slide 21: LNG volumes set to expand rapidly
450 400 350 300 250 200 150 100 50 0 0 5 10 15 20 25 New LNG export projects up to end of 2028 (2) LNG volumes set to expand rapidly (1) (1) BP energy outlook 2018 (2) Clarksons Governments are encouraging a cleaner energy mix by setting targets for gas share, taxing dirtier fossil fuels and applyin
Slide 22: Growing number of LNG importing nations
Growing number of LNG importing nations Key Market Drivers FSRU current world fleet and newbuild orders 4 1 1 6 4 3 3 Ot he r Hoegh LNG 4 Excelerate 8 Golar LNG BW LNG Ne w bu ild orders 4 FSRU Converted FSRU 10 9 Source: Clarkson Research Services 2 3 2 2 5 1 6 3 8 1 2 3 4 2016 2014 2012 2011 2010
Slide 23: Floating LNG advantages
Construction Time: Approximately 40 months from FID vs. 50 - 60+ months for land based Flexibility: Assets allow more flexible commercial structures and potentially longer life Ability to redeploy liquefaction vessel allows monetization of smaller reserves Limited yard capacity: High entry barriers
Slide 24: Shipping: Tightening market balance
29 25 12 2 6 - 11 - 7 - 9 - 37 30 20 10 0 - 10 - 20 - 30 - 40 - 50 - 60 - 70 2022 2017 2015 2016 Source: Fearnley LNG 2019 2018 2020 2021 2023 - 65 2024 Declining newbuild orders; earliest delivery of a vessel ordered today is 2H 2022 # of vessels Increasing ton miles drive vessel demand Estimated L
Slide 25: The Golar Group
3 4 5 6 1 2 © Golar LNG Partners LP 25 Transaction overview Company update Market overview The Golar Group Risk factors Appendix
Slide 26: Golar group fleet and structure
S hipping Production & Liquefaction R e g a s ific a tion FLNG FSRU LNG Carriers Golar Maria Golar Grand Methane Princess Golar Mazo Golar Bear Golar Kelvin Golar Crystal Golar Seal Golar Frost Golar Snow Golar Glacier Golar Ice Golar Viking Golar Arctic Golar Spirit NR Regas Satu Golar Freeze Golar
Slide 27: Golar Power and growth projects
27 1 0 ,0 00 1 5 ,0 00 2 0 ,0 00 LNG demand in Bcf/yr LNG volumes Earnings backlog in $millions 750 1,742 4,116 3,649 6 , 618 6 , 558 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2014 2015 Contract earnings Backlog 2016 2017 Upside for Barcarena Power and small scale 2018 5 , 0 00 2019 … 2023 x
Slide 28: Risk factors
3 4 5 6 1 2 28 © Golar LNG Partners LP Transaction overview Company update Market overview The Golar Group Risk factors Appendix
Slide 29: Risk factors
Risk factors 29 © Golar LNG Partners LP RISK FACTORS The risks and uncertainties described in the Presentation are risks of which the Company is aware and considers to be material to its business. The list of risk factors is not exhaustive and there may be other risks relevant to the Company , the G
Slide 30: Risk factors (cont'd)
Risk factors (cont’d) 30 © Golar LNG Partners LP • The Company depends on Golar LNG Limited’s subsidiaries, Golar Management Ltd. and Golar Management Norway AS, to manage the Group’s business. The Group’s ability to enter into new charters and expand its customer relationships will depend largely o
Slide 31: Risk factors (cont'd)
Risk factors (cont’d) 31 © Golar LNG Partners LP Organisational risks • The Company is organized as a limited partnership under the laws of the Republic of the Marshall Islands, which does not have a well - developed body of partnership law. • Because the Company is organized under the laws of the R
Slide 32: Appendix
3 4 5 6 1 2 32 © Golar LNG Partners LP Transaction overview Company update Market overview The Golar Group Risk factors Appendix
Slide 33: LNG: the cleanest marine fuel
LNG is the cleanest fuel available to vessels. We also utilise recycled cargo boil off, enabling us to utilise energy that would otherwise be wasted LNG use can reduce emissions of nitrogen oxide by up to 90 % , and particulate matter by up to 99 % . Emissions of sulphur oxide can be eliminated almo
Slide 34: LNG as the cleanest and most cost-efficient transition fuel
Although energy consumption is set to rise by between 1% and 1.3% per year until 2040 (1) , it is imperative that global emissions are reduced in order to combat the climate crisis – enabling the transition LNG supports action against a significant social problem in its biggest market: poor air qual
Slide 35: Corporate structure
All holdings are 100% unless otherwise indicated Corporate structure Golar Winter Corporation Golar Winter (Marshall Islands) Golar Partners Operating LLC (Marshall Islands) Golar LNG 2215 Corporation Methane Princess (Marshall Islands) Golar Grand Corporation Golar Grand (Marshall Islands) Golar LN
Slide 36: Distributable cash flow definitions
Distributable cash flow: Distributable cash flow represents Total Segment EBITDA adjusted for the cash components of interest, derivatives, tax and earnings from affiliates. We also include an adjustment for maintenance and replacement capital expenditures (including expenditure on dry docking). Thi
Slide 37: Contract earnings backlog definitions
Relevant to Golar LNG: Contract earnings backlog: Contract earnings backlog represents Golar’s share of contracted fee income for executed contracts less forecasted operating expenses for these contracts. In calculating forecasted operating expenditure, management has assumed that where there is an
Slide 38: Thank you
THANK YOU 38 © Golar LNG Partners LP
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