Hoegh Lng Partners Lp · OTC:HMLPF
Hoegh Lng Partners Lp — Q4 2020 Earnings Presentation
36 slides from Hoegh Lng Partners Lp's earnings presentation, Feb 25, 2021
Slide 1: 4Q20 Financial Results
Höegh LNG Partners LP – The Floating LNG Infrastructure MLP 4Q20 Financial Results February 25, 2021
Slide 2: Agenda
Agenda 1 4Q 2020 Highlights 2 4Q 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 Fourth Quarter 2020 Highlights
HMLP Fourth 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 the highest priority All units operating according to contract and at 100% availability in the quarter Total reven
Slide 6: Over 8 Years Average Remaining Contract Length; Full Contract Coverage Through 1H 2025
Over 8 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 % WW
Slide 7: Agenda
Agenda 1 4Q 2020 Highlights 2 4Q 2020 Financials 3 Market update 4 Summary 5 Q&A 7
Slide 8: Key Figures: Strong Operating Performance in the Fourth Quarter 2020
Key Figures: Strong Operating Performance in the Fourth Quarter 2020 Three months ended December 31, (in thousands of U.S. dollars) 2020 2019 Total revenues $ 36,059 $ 38,538 Operating income (loss) 25,537 27,939 Net income 18,513 18,746 Limited partners' interest in net income (loss) $ 14,728 $ 15,
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 4Q20 1Q15 2Q15 3Q15 4Q15 1Q
Slide 10: Income Statement
Income Statement Three months ended December 31, (in thousands of U.S. dollars) 2020 2019 REVENUES Time charter revenues $ 36,059 $ 38,487 Other revenues — 51 Total revenues $ 36,059 $ 38,538 OPERATING EXPENSES Vessel operating expenses (6,826) (9,214) Administrative expenses (2,703) (2,785) Depreci
Slide 11: Balance Sheet
Balance Sheet As of As of December 31, December 31, (in thousands of U.S. dollars) 2020 2019 ASSETS Current assets Cash and cash equivalents $ 31,770 $ 39,126 Restricted cash 7,198 8,066 Other current assets 16,190 12,579 Total current assets 55,158 59,771 Long-term assets Restricted cash 12,095 12,
Slide 12: Agenda
Agenda 1 4Q 2020 Highlights 2 4Q 2020 Financials 3 Market update 4 Summary 5 Q&A 12
Slide 13: 1.5% Growth in Global LNG Trade in 2020 Despite the Impact of Covid-19
1.5% Growth in Global LNG Trade in 2020 Despite the Impact of Covid-19 Global monthly LNG trade 40 35 Global LNG trade up 1.5% in 2020 Million tonnes 30 Asia continues to be the high-growth import region 25 20 Chinese LNG imports grew by 11% in 2020 15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 14: LNG is a Growth Market for the Long Term
LNG is a Growth Market for the Long Term LNG demand revisions 800 700 Global LNG demand is resilient 600 Million tonnes 500 50% growth in demand expected from 2020 to 2030 400 Will drive demand for new regas capacity 300 200 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 Pre-COVID demand out
Slide 15: FSRUs on the Water – Units in Orderbook
39 FSRUs on the Water – 7 Units in Orderbook FSRU fleet1 and orderbook2 - by owner 12 VPower 10 39 FSRUs on water El Salvador KARMOL 8 KARMOL Botas 3 purpose built FSRUs on order – 2Botas assumed open Units 6 Java Satu SWAN 4 Dynagas Kol / Kal 4 conversions on order – all captive for projects Dynaga
Slide 16: Pipeline of Potential Modern Acquisition Candidates with the Parent
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 H-Energy Höegh Esperanza 2018 CNOOC / AGL AGL - Conditional on F
Slide 17: Project Pipeline
Project Pipeline Selected as FSRU Ongoing tenders Bilateral projects provider AIE signed pipeline FSRU FSRU Latin America MoU Indian subcontinent project project HLNG shortlisted In final TCP FID targeted in H2 2021 #4 #5 FID targeted H1 2021 negotiations EES hearing Use of existin
Slide 18: Agenda
Agenda 1 4Q 2020 Highlights 2 4Q 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 $34.9 million Robust Distribution Ratio Supported by More than 8 Years Average Remai
Slide 20: Agenda
Agenda 1 4Q 2020 Highlights 2 4Q 2020 Financials 3 Market update 4 Summary 5 Q&A 20
Slide 21: Appendix
A HOEGH LNG PARTNERS LP
Slide 22: Segment Reporting – 4Q 2020
Segment Reporting – 4Q 2020 Three months ended December 31, 2020 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 $ 36,059 10,012 — 46,071 (10,012) (1) $ 36,05
Slide 23: Segment Reporting – 4Q 2019
Segment Reporting – 4Q 2019 Three months ended December 31, 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 $ 38,487 10,533 — 49,020 (10,533) (1) $ 38,48
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.) 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 26: Non-GAAP Financial Measures
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) 2019 2019 2019 2019 2020 2020 2020 2020 Net Inco
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 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) 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 Reconciliation to n
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.) Three months ended March 31, June 30, September December 31, March 31, June 30, September 30, December 31, March 31, September December (in thousands of U.S. dollars) 2018 2018 30, 2018 2018 2019 2019 2019 2019 2020 June 30, 2020 30, 2020 31, 2020 Segment EBITDA $ 34,
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 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
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.) Three months ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, September December 31, (in thousands of U.S. dollars) 2018 2018 2018 2018 2
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 [email protected]