Golar LNG Partners L.P: Interim Results for the Period Ended September, 2013
(Thomson Reuters ONE) -
Highlights
* Golar LNG Partners LP ("Golar Partners" or the "Partnership") reports net
income attributable to unit holders of $35.4 million and operating income of
$55.8 million for the third quarter of 2013
* Generated distributable cash flow of $38.9 million for the third quarter of
2013 with a coverage ratio of 1.25
* Declared distribution of $0.5225 per unit for the third quarter of 2013, an
increase of 1.5% over the prior quarter
* Golar Winter drydocking and modification works completed and vessel
delivered to new location in Brazil. Uplifted hire rate of approximately
$2.2 million per annum takes effect
* Golar LNG Limited ("Golar") secures two FSRU contracts that represent
attractive near and medium term acquisition prospects
* Entered into $100 million interest rate swaps with a tenor of 5 years
Financial Results Overview
Golar Partners reports net income attributable to unit holders of $35.4 million
and operating income of $55.8 million for the third quarter of 2013 ("the third
quarter"), as compared to net income attributable to unit holders of $28.0
million and operating income of $44.4 million for the second quarter of 2013
("the second quarter") and net income attributable to unit holders of $34.6
million and operating income of $52.0 million for the third quarter of 2012(1).
Improved operating results for the third quarter of 2013 compared to the same
period in 2012 are due in part to a biennial uplift to the capital component of
the Golar Spirit and Golar Winter time charter rates that took effect in the
second quarter of 2013 coupled with a further increase in the Golar Winter rate
that took effect mid-way through the third quarter to compensate for the
modification works recently completed. Most of the improvement in operating
results, however, reflects the contribution from the Golar Maria. Comparable
results for 2012 do not reflect the contribution of Golar Maria as this vessel
was not under the common control of Golar at the time of her acquisition by the
Partnership in the first quarter of 2013. The improved results are partially
offset by increased depreciation and amortisation reflecting the additional
investment in the Golar Winter modifications and four vessel drydocks over the
intervening 12 months.
(1)Following the acquisition of the Golar Grand and NR Satu from Golar, the
comparative results for the third quarter ended 2012 assume that the Golar Grand
and NR Satu were wholly owned by the Partnership for the entire period that the
vessels were under the common control of Golar.
An absence of any drydocks since June 2013 has meant that operating results for
the third quarter constitute a significant improvement over the second quarter
when one LNG carrier, the Methane Princess, and one FSRU, the Golar Winter were
in drydock incurring both offhire and positioning costs. Cumulative second
quarter offhire in respect of these two vessels amounted to approximately 10
weeks. A third vessel, the Golar Mazo, also drydocked during the second
quarter, however, the impact of this was limited to a relatively modest
positioning cost. No such offhire or positioning costs were incurred in respect
of any vessel during the third quarter. Additional revenue receivable in
respect of the Golar Winter modifications commenced in early August.
Net interest expenses increased to $11.1 million for the third quarter of 2013
compared to $10.3 million for the second quarter. This is largely due to the
impact of the new $275 million facility, secured by the Golar Winter and the
Golar Grand, entered into at the end of the second quarter. The facility is
larger and accrues interest at a higher rate than the two leases it replaces,
whilst the benefit of the cash discount on termination of the two leases has
been reflected in full in the prior period. The facility is split into two
tranches, a $225 million term loan and a further $50 million revolver, of which
$45 million remains undrawn as of September 30, 2013.
Other financial items for the third quarter of 2013 recorded a loss of $4.1
million compared with a small loss of $0.1 million in the second quarter. Non-
cash mark-to-market valuation losses on interest rate swaps of $0.2 million in
the third quarter compared to a gain of $4.8 million in the second quarter. This
gain however was substantially offset by the write off of deferred financing
fees associated with the June refinancing of the Golar Winter and Golar Grand
leases.
The Partnership's Distributable Cash Flow(2) for the third quarter of 2013 was
$38.9 million as compared to $26.4 million in the second quarter and the
coverage ratio was 1.25 as compared to 0.86 for the second quarter as a result
of the improved operating results.
On October 24, 2013, Golar Partners declared a distribution for the second
quarter of 2013 of $0.5225 per unit, representing a 1.5% increase from the
second quarter, which was paid on November 14, 2013.
(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.
Financing and Liquidity
As of September 30, 2013 the Partnership had cash and cash equivalents of $49.8
million and undrawn revolving credit facilities of $65 million. Total debt and
capital lease obligations net of restricted cash was $986.6 million as of
September 30, 2013.
Based on the above debt amount and annualized(3) third quarter 2013 adjusted
EBITDA(4 )Golar Partners has a debt to adjusted EBITDA multiple of 3.4 times.
As of September 30, 2013, Golar Partners had interest rate swaps with a notional
outstanding value of approximately $993.7 million (including swaps of notional
amount of $227.2 million in connection with the Partnership's bonds)
representing approximately 101% of total debt and capital lease obligations, net
of restricted cash. The average fixed interest rate of swaps related to bank
debt is approximately 2.4% with average maturity of approximately 3.1 years as
of September 30, 2013.
Subsequent to the quarter end the Partnership entered into a $100 million seven
year swap at a fixed rate of 2.206% and a further $100 million of forward start
swaps with a five year duration, a start date of October 1, 2015 and a fixed
rate of 2.955%. These swaps were entered into to cover maturing swaps. As of
September 30, 2013 the Partnership had outstanding bank debt of $764.5 million
with average margins, in addition to LIBOR or fixed swap rates, of approximately
2.3%. In addition, the Partnership has bonds of $216.1 million with a fixed rate
of 6.485%.
(3)Annualized means the figure for the quarter 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.
Outlook
The announcement during the quarter by Golar that it had contracted the FSRU
vessels Golar Igloo and Golar Eskimo for periods of 5 years or more provides
Golar Partners its first two potential acquisitions from Golar's fleet of 13
newbuildings.
The Golar Igloo is scheduled to deliver from the yard on time in December 2013
and is contracted to Kuwait National Petroleum Company ("KNPC") for an initial
period of 5 years. The contract comprises the provision of portside FSRU
services for an anticipated nine months of the year together with a three month
window where the vessel is free to pursue spot carrier and other short term
business opportunities. Winter scheduling of the three month stand-down period
together with favourable positioning mean that the vessel should have realistic
trading prospects. The contract is set to commence in March 2014.
The Golar Eskimo has been contracted to the Government of Jordan and will be
moored at a purpose built structure that is to be constructed by the Aqaba
Development Corporation off the Red Sea port of Aqaba. The FSRU is scheduled to
be ready for service in the latter part of the fourth quarter 2014 and its ten
year contract is due to commence during the first quarter of 2015.
As expected, following the recent completion of a series of 4 drydockings,
operating results in the third quarter have improved significantly from the
second quarter. Operating results for the fourth quarter of 2013 are also
expected to be strong and approximately in line with the third quarter.
The Partnerships' coverage ratio for the third quarter stands at 1.25 times and
leverage as at the end of the third quarter at 3.4 times adjusted EBITDA is
decreased from 3.8 times at the same time last year.
The Partnership has performed better than it anticipated at the time of its IPO
and distributions have increased by 36%. The increased coverage ratio and reduce
net debt to adjusted EBITDA ratio has increased the Partnerships financial
flexibility for future acquisitions and distribution growth.
With this solid financial position and with the recent FSRU contract
announcements by Golar LNG together with its remaining newbuild fleet of 11 as
yet uncontracted vessels, the Board is increasingly confident that Golar
Partners can continue to strongly grow its earnings and distributions over the
longer term.
November 27, 2013
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
GMLP THIRD QUARTER 2013 RESULTS:
http://hugin.info/147317/R/1746192/587798.pdf
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Source: Golar LNG Partners L.P. via GlobeNewswire
[HUG#1746192]
Datum: 27.11.2013 - 15:31 Uhr
Sprache: Deutsch
News-ID 320819
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