Hoegh LNG Partners (HMLP) Misses Q1 EPS Views

Hoegh LNG Partners (NYSE: HMLP) reported Q1 EPS of ($0.04), $0.49 worse than the analyst estimate of $0.45. Revenue for the quarter came in at $21.7 million versus the consensus estimate of $23.52 million.

Excluding all unrealized gains (losses) on derivative instruments, net income for the three months ended March 31, 2016 was $7.6 million, an increase of $1.2 million or 18.8% from $6.4 million for the three months ended March 31, 2015. Excluding the unrealized gains (losses) on derivative instruments, the increase is primarily due to the inclusion of the results of the Höegh Gallant which is partially offset by the reduction of the interest income on the demand note cancelled as part of the acquisition price.

The PGN FSRU Lampung was on-hire for the entire first quarter of 2016. The Höegh Gallant was off-hire 15 days due to scheduled maintenance in the first quarter of 2016.

Equity in losses of joint ventures, which own the vessels GDF Suez Neptune and the GDF Suez Cape Ann, for the three months ended March 31, 2016 was $6.7 million, an increase of $4.6 million from equity in losses of joint ventures of $2.1 million for the three months ended March 31, 2015. The reason for the increased losses was higher unrealized losses on derivative instruments in the Partnership's share of the joint ventures for the three months ended March 31, 2016 of $9.0 million, compared to unrealized losses on derivative instruments of $3.9 million for three months ended March 31, 2015. The joint ventures do not apply hedge accounting for interest rate swaps and all changes in fair value are included in equity in earnings (losses) of joint ventures. For the three months ended March 31, 2016, the Partnership's share of operating income in the joint ventures was $6.1 million compared to $5.8 million for the three months ended March 31, 2015.

Operating income for the three months ended March 31, 2016 was $6.2 million, an increase of $1.2 million from $5.0 million for the three months ended March 31, 2015. Excluding the impact of the unrealized losses on derivative instruments for the three months ended March 31, 2016 and 2015 impacting the equity in earnings of joint ventures, operating income for the three months ended March 31, 2016 would have been $15.2 million, an increase of $6.2 million from $9.0 million for the three months ended March 31, 2015. The increase for the three months ended March 31, 2016 is primarily due to the inclusion of the results of the Höegh Gallant acquired on October 1, 2015.

Adjusted EBITDA was $25.2 million for the three months ended March 31, 2016, an increase of $9.3 million from $15.9 million for the three months ended March 31, 2015 reflecting the inclusion of the results of the Höegh Gallant acquired on October 1, 2015.

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

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