Golar LNG Partners LP - Interim Results For The Period Ended June 30, 2012
(Thomson Reuters ONE) -
Highlights
* Golar LNG Partners reports net income attributable to unit holders of $19.8
million and operating income of $33.0 million for the second quarter of 2012
* Generated distributable cash flow of $20.2 million for the second quarter of
2012
* Dividend increased to $0.44 per unit for the second quarter of 2012
Subsequent events
* Successfully completed first public follow-on equity offering raising total
net proceeds of $223 million
* Completion of acquisition of interests in the companies that own and operate
the floating storage and regasification unit ("FSRU") Nusantara Regas Satu.
Financial Results Overview
Golar LNG Partners L.P ("Golar Partners" or the "Partnership") reports net
income attributable to unit holders of $19.8 million and operating income of
$33.0 million for the second quarter of 2012, as compared to $18.2 million and
$31.9 million, respectively for the second quarter of 2011[1].
Operating results for the second quarter of 2012 improved compared to the same
period in 2011 due largely to lower operating costs offset in part by higher
administrative expenses. All vessels operated well throughout the quarter with
100 per cent utilization.
Net interest expenses increased to $7.8 million for the second quarter of 2012
compared to $3.8 million for the same period in 2011. This is principally due to
additional interest cost associated with the $222 million loan from Golar LNG
Limited ("Golar") in connection with the acquisition of the Golar Freeze.
Other financial items decreased by $4.7 million to a loss of $2.5 million for
the second quarter of 2012 compared to the same period in 2011. The variance
mainly relates to the changes in non-cash mark-to-market valuations of financial
derivative instruments, principally interest rate swaps that are hedges against
future interest rate movements.
The Partnership's Distributable Cash Flow[2] for the second quarter of 2012 was
$20.2 million as compared to $19.0 million in the first quarter of 2012. This
improvement is mainly due to the reduction in operating costs in the second
quarter of 2012 compared to the first quarter offset in part by higher
administrative expenses. Operating costs were higher in the first quarter of
2012 partly as a result of annual scheduled maintenance work on the two FSRU
vessels operating in Brazil.
Golar Partners declared an increased dividend for the second quarter of $0.44
per unit, representing a 2.3% increase from the first quarter of 2012. The
dividend was paid on August 15, 2012.
Follow-on Equity Offering
In July 2012, the Partnership closed a follow on public offering (the
"Offering") of 5,500,000 common units representing limited partner interests at
a price of $30.95 per common unit. Additionally, the Underwriters exercised in
full their option to purchase an additional 825,000 common units in the
Offering. The total number of common units sold in the Offering was therefore
6,325,000 and the net public proceeds raised was $188 million. Golar GP LLC,
the Partnership's general partner, contributed a further $4.6 million to the
Partnership to maintain its 2.0% general partner interest in the Partnership.
The Partnership also closed a private placement of 969,305 common units to Golar
at a price of $30.95 per common unit.
Floating Storage and Regasification Unit Nusantara Regas Satu (formerly Khannur)
In July 2012, the Partnership completed its acquisition of interests in the
companies that own and operate the floating storage and regasification unit
("FSRU") Nusantara Regas Satu ("NR Satu") from Golar for a purchase price of
$385 million. The vessel left the shipyard, following its FSRU retrofit, in
April 2012 and was delivered to its charterers, Nusantara Regas, in early May
2012. Upon delivery, the NR Satu began operating under a charter with an initial
term expiring at the end of 2022. Acceptance and delivery tests were
successfully completed in July 2012. The FSRU is expected to contribute annual
net cash from operations (before deduction of interest cost) of approximately
$42m-$44m during the life of its charter.
The Partnership financed the acquisition of NR Satu with the $223 million in
total net proceeds of its recent equity offering, cash on hand of $7 million and
vendor financing from Golar in the amount of $155 million. The Partnership
expects to refinance the loan from Golar with a bank financing during the third
quarter of 2012.
Potential future growth opportunities
The Board believes that Golar Partners has significant further potential growth
opportunities; in particular with regards to the possible acquisition of
additional assets from Golar. Golar has two modern LNG carriers that are due for
re-contracting within the next nine months and a fleet of eleven newbuild LNG
carriers and two FSRU's with delivery dates commencing in 2013. Given the tight
shipping market and strong market fundamentals Golar Partners is optimistic that
further acquisition candidates will materialise within the next twelve months.
In addition there are positive developments in the FSRU market. On July 5, 2012
Golar announced that it had been awarded the Gas Atacama Mejillones Seaport's
FSRU Project ("Gas Atacama"). The initial term of the contract, which is subject
to certain Charterer conditions being met by the end of 2012, is for 15 or 20
years and is expected to generate an average annual earnings before interest,
tax, depreciation and amortization of approximately US$47-US$48 million. On top
of the initial term, Gas Atacama has three five-year contract extension options.
Subject to the conditions being met, the FSRU is expected to be delivered to the
project in the fourth quarter of 2015.
Financing and Liquidity
As of June 30, 2012 the Partnership had cash and cash equivalents of $47.1
million and undrawn revolving credit facilities of $40 million. Total debt and
capital lease obligations net of restricted cash was $701 million as of June
30, 2012.
Based on the above debt amount and annualized[3] second quarter 2012 adjusted
EBITDA[4] Golar Partners has a debt to adjusted EBITDA multiple of 4.3 times.
As of June 30, 2012, Golar Partners had interest rate swaps with a notional
outstanding value of $454 million representing approximately 95% of senior bank
debt and capital lease obligations, net of restricted cash. The average fixed
interest rate of these swaps is approximately 2.7%. Average margins paid on
outstanding debt in addition to the interest rate are approximately 1.5%. The
fixed rate of interest paid on the $222 million Golar LNG loan is 6.75%.
Outlook
The acquisition of NR Satu represents the Partnership's second accretive
acquisition. As a result of this acquisition, Golar Partners' management
recommended to the Board an increase in distribution of 10.5% to $0.475 per unit
effective for the quarter ended September 30, 2012. This would represent an
increase in the Partnership's unit distribution of 23% since its initial public
offering.
Following the acquisition, the Partnership's contracted revenue backlog stands
at approximately $2.3 billion and its average contract term is approximately 9
years.
LNG production capacity is expected to grow by in excess of 6% a year through to
2017 and at a likely faster rate to the end of the decade. . This could mean a
requirement for in excess of 180 new LNG carriers by 2020. There are currently
75 LNG carriers on order and 349 vessels in the existing fleet (excluding
FSRU's). Of the existing fleet 46 vessels are more than 30 years old.
The Board is pleased with the development of Golar Partners and its two
accretive acquisitions since its IPO in April 2011. During this time market
fundamentals have strengthened and the fleet of potential dropdown candidates
from Golar has increased with seven further vessel orders in addition to the
fleet of seven existing operational vessels and six newbuildings. The Board is
optimistic that Golar Partners can continue its high growth rate and thereby
continue to increase distributions over the long-term. .
August 23, 2012
Golar LNG Partners L.P.
Hamilton, Bermuda.
Questions should be directed to:
C/o Golar Management Ltd - +44 207 063 7900
Brian Tienzo or Graham Robjohns
--------------------------------------------------------------------------------
[1] Following the acquisition of the Golar Freeze from Golar, the comparative
results for the second quarter of 2011 assume that the Golar Freeze was wholly
owned by the Partnership for the entire period that the vessel has been under
the common control of Golar.
[2]Distributable cash flow is a non-GAAP financial measure used by investors to
measure the performance of master limited partnerships. Please see Appendix A
for a reconciliation to the most directly comparable GAAP financial measure.
[3] Annualized means the year-to-date figure divided by the number of quarters
to date multiplied by 4.
[4] Adjusted EBITDA: Earnings before interest, other financial items, taxes,
non-controlling interest, depreciation and amortization. Adjusted EBITDA is a
non-GAAP financial measure used by investors to measure our performance. Please
see Appendix A for a reconciliation to the most directly comparable GAAP
financial measure.
Golar LNG Partners LP Results Q2 2012:
http://hugin.info/147317/R/1635939/525611.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Golar LNG Partners L.P. via Thomson Reuters ONE
[HUG#1635939]
Datum: 23.08.2012 - 15:22 Uhr
Sprache: Deutsch
News-ID 177165
Anzahl Zeichen: 11227
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 229 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Golar LNG Partners LP - Interim Results For The Period Ended June 30, 2012"
steht unter der journalistisch-redaktionellen Verantwortung von
Golar LNG Partners L.P. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
