Hoegh Lng Partners Lp · OTC:HMLPF
Hoegh Lng Partners Lp — Q2 2020 Earnings Presentation
35 slides from Hoegh Lng Partners Lp's earnings presentation, Aug 20, 2020
Slide 1: Höegh LNG Partners LP – 2Q20 Financial Results
Höegh LNG Partners LP – The Floating LNG Infrastructure MLP 2Q20 Financial Results August 20, 2020
Slide 2: Agenda
Agenda 1 Q2 2020 Review – Mr. Steffen Føreid 2 Market update – Mr. Sveinung Støhle 3 Summary – Mr. Steffen Føreid 4 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 Second Quarter 2020 Highlights
HMLP Second Quarter 2020 Highlights ▪ Implemented 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 ▪ Tot
Slide 6: Key figures: Strong Operating Performance in the Second Quarter 2020
Key figures: Strong Operating Performance in the Second Quarter 2020 Three months ended June 30, (in thousands of U.S. dollars) 2020 2019 Total revenues $ 34,436 $ 33,777 Operating income (loss) 27,746 15,277 Net income 19,681 6,156 Limited partners' interest in net income (loss) $ 16,013 $ 2,778 Ex
Slide 7: 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 15 8 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 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q
Slide 8: Income Statement
Income Statement Three months ended June 30, (in thousands of U.S. dollars) 2020 2019 REVENUES Time charter revenues $ 34,436 $ 33,777 Total revenues $ 34,436 $ 33,777 OPERATING EXPENSES Vessel operating expenses (5,776) (9,064) Administrative expenses (2,155) (2,272) Depreciation and amortization (
Slide 9: Balance Sheet
Balance Sheet As of As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 ASSETS Current assets Cash and cash equivalents $ 25,623 $ 39,126 Restricted cash 6,021 8,066 Other current assets 18,057 12,579 Total current assets 49,701 59,771 Long-term assets Restricted cash 12,369 12,627
Slide 10: More Than 9.0 Years Average Remaining Contract Length; Full Contract Coverage Through 2025
More Than 9.0 Years Average Remaining Contract Length (4); Full Contract Coverage Through 2025 Built Ownership Region Charterer 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Höegh LNG Partners Neptune 2009 50 % WW trading Total (2) Cape Ann 2010 50 % India
Slide 11: Agenda
Agenda 1 Q2 2020 Review – Mr. Steffen Føreid 2 Market update – Mr. Sveinung Støhle 3 Summary – Mr. Steffen Føreid 4 Q&A 11
Slide 12: Höegh LNG Holding Active in Several Exclusive Negotiations and Ongoing Tenders
Höegh LNG Holding Active in Several Exclusive Negotiations and Ongoing Tenders Selected as FSRU provider ▪ Secured pipeline access Ongoing tenders Bilateral projects ▪ HLNG exclusivity FSRU ▪ Indian subcontinent ▪ Atlantic basin project ▪ FID targeted in 2020 #4 ▪ EES approval expected H1 − Ongoing
Slide 13: 6.5% Growth in Global LNG Trade in H1 2020
6.5% Growth in Global LNG Trade in H1 2020 Global monthly LNG trade 40 35 Global LNG trade up 6.5% y-o-y in H1 2020 Million tonnes 30 Europe continues to be the main growth market 25 Chinese LNG import growth bounced back in Q2 20 2020 with 20% y-o-y 15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov De
Slide 14: LNG Expected to Continue Being a Growth Market
LNG Expected to Continue Being a Growth Market Impact of H1 2020 market shock on near-term LNG 440 demand 10.9 420 2020 expected demand growth revised due to Covid-19 4.2 400 4.6 4.0 Million tonnes 380 LNG demand growth expected to return from 2021 11.9 360 Growth led by China and emerging markets i
Slide 15: Spot LNG is Now Cheaper than Coal
Spot LNG is Now Cheaper than Coal Fuel price comparison, LNG vs liquids and coal (USD / MMBtu) 18 16 MGO, Global 20 ports average (USD/MMBtu) 14 HFO / IFO380, Global 20 ports average (USD/MMBtu) 12 LNG Platts Japan Korea Marker (USD/MMBtu) 10 LNG Platts Mediterranean (USD/MMBtu) 8 LNG Platts North W
Slide 16: 37 FSRUs on the Water – 8 Units in Orderbook
37 FSRUs on the Water – 8 Units in Orderbook FSRU fleet1 and orderbook2 - by owner 12 10 37 FSRUs on water VPower 8 El Salvador KARMOL 4 purpose built FSRUs onBotas order Units 6 Botas Java-1 4 Dynagas SWAN 4 conversions on order Dynagas Kol / Kal 2 Maran Gazprom MOL OLT 0 HMLP/HLNG Höegh LNG Excele
Slide 17: Agenda
Agenda 1 Q2 2020 Review – Mr. Steffen Føreid 2 Market update – Mr. Sveinung Støhle 3 Summary – Mr. Steffen Føreid 4 Q&A 17
Slide 18: Höegh LNG Partners LP – Investment Summary
Höegh LNG Partners LP (NYSE:HMLP) – Investment Summary No Material Operational Impact from COVID-19 to Date – 100% Availability of all Assets During Quarter Stable Operating Performance in the Quarter with Segment EBITDA of $36.0 million Coverage Ratio of 1.24x Underpinning the Stable Distribution i
Slide 19: Agenda
Agenda 1 Q2 2020 Review – Mr. Steffen Føreid 2 Market update – Mr. Sveinung Støhle 3 Summary – Mr. Steffen Føreid 4 Q&A 19
Slide 20: Appendix
TRA HOEGH LNG PARTNERS LP
Slide 21: Segment Reporting – 2Q 2020
Segment Reporting – 2Q 2020 Three months ended June 30, 2020 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) O ther reporting ations reporting T ime charter revenues $ 34,436 12,139 — 46,575 (12,139) (1) $ 34,436
Slide 22: Segment Reporting – 2Q 2019
Segment Reporting – 2Q 2019 Three months ended June 30, 2019 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 $ 33,777 10,752 — 44,529 (10,752) (1) $ 33,777 To
Slide 23: 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 24: Non-GAAP Financial Measures: 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, March 31, June 30, September 30, December 31, (in thousands of U.S. dollars) 2017 2017 2017 2017 2018 2018 2018 2018 Net Inco
Slide 25: Non-GAAP Financial Measures: 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, March 31, June 30, (in thousands of U.S. dollars) 2019 2019 2019 2019 2020 2020 Net Income (Loss) 14,134 6,156 13,704 18,754
Slide 26: 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 27: Segment EBITDA - historical
Segment EBITDA - historical Three months ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, (in thousands of U.S. dollars) 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 Reconciliation to net in
Slide 28: Segment EBITDA – 2018, 2019 and 2020
Segment EBITDA – 2018, 2019 and 2020 Three months ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31 June 30 (in thousands of U.S. dollars) 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Reconciliation to net income (loss) Net income (loss)
Slide 29: 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 30: Distributable Cash Flow
Distributable Cash Flow Three months ended March 31, June 30, September December March 31, June 30, September 30, December March 31, June 30, September 30, December 31, (in thousands of U.S. dollars) 2015 2015 30, 2015 31, 2015 2016 2016 2016 31, 2016 2017 2017 2017 2017 Segment EBITDA $ 15,187 15,2
Slide 31: Distributable Cash Flow (cont.)
Distributable Cash Flow (cont.) Three months ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, (in thousands of U.S. dollars) 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Segment EBITDA $ 34,868 36,914 36,444 37,464 36,120 30,96
Slide 32: 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, September 30, December 31, March 31, September 30, December 31, March 31, September 30, December 31, June 30, 2015 June 30, 2016 June 30, 2017 (in thousands of U.S. dollars) 2015 2015
Slide 33: 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.) Three months ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, (in thousands of U.S. dollars) 2018 2018 2018 2018 2019 2019 2019 2019 2020
Slide 34: 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 35: Contact
Contact: www.hoeghlngpartners.com ir@hoeghlngpartners.com