Hoegh LNG Partners (HMLP) Misses Q2 EPS by 26c

August 25, 2016 6:49 AM EDT
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Hoegh LNG Partners (NYSE: HMLP) reported Q2 EPS of $0.16, $0.26 worse than the analyst estimate of $0.42. Revenue for the quarter came in at $22.8 million versus the consensus estimate of $23.47 million.

Outlook

Due to an issue identified in scheduled maintenance inspections for the Höegh Gallant during first quarter of 2016, further maintenance is expected to result in several days of reduced hire for the Höegh Gallant in the third quarter of 2016.

Pursuant to the omnibus agreement that the Partnership entered into with Höegh LNG at the time of the IPO (i) Höegh LNG is obligated to offer to the Partnership any FSRU or LNG carrier operating under a charter of five or more years and (ii) the Partnership has a right to purchase from Höegh LNG all or a portion of its interests in the Independence within 24 months after the acceptance of the vessel by her charterer, AB Klaipedos Nafta ("ABKN") subject to reaching an agreement with Höegh LNG regarding the purchase price and other terms of the transaction and subject to the consent of ABKN.

Accordingly, the Partnership has, or may in the future have, the opportunity to acquire the FSRUs listed below:

  • On May 26, 2015, Höegh LNG signed a contract for a term of twenty years with Octopus LNG SpA ("Octopus") to provide an FSRU to service the Penco-Lirquen LNG import terminal to be located in Concepcion Bay, Chile. The contract is subject to Octopus completing financing and obtaining necessary environmental approvals. Höegh LNG is expected to service the contract with Hull No. 2865 which is currently being constructed by Hyundai Heavy Industries Co., Ltd. ("HHI"). The contract is expected to commence in the second quarter of 2018.
  • On November 1, 2014, Höegh LNG signed a contract for a minimum term of ten years with Sociedad Portaria El Cayao S.A.E.S.P ("SPEC") to provide an FSRU (the Höegh Grace) to service a new LNG import terminal in Columbia. The Höegh Grace was delivered by the shipyard in the first quarter of 2016, and its contract is expected to commence in the fourth quarter of 2016.
  • On December 5, 2014, the Independence began operating under its time charter with ABKN. The Partnership and Höegh LNG continue to pursue, but have not received, ABKN's consent to the acquisition of the Independence by the Partnership.

In addition to the FSRU under construction for Octopus, Höegh LNG has one additional FSRU (Hull No. 2552) on order which is scheduled to be delivered in mid-2017. The newbuilding has not yet been contracted.

There can be no assurance that the Partnership will acquire any vessels from Höegh LNG or of the terms upon which any such acquisition may be made.

For earnings history and earnings-related data on Hoegh LNG Partners (HMLP) click here.



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