Hoegh LNG Partners (HMLP) Misses Q1 EPS by 30c, Slight Beat on Revenues

Hoegh LNG Partners (NYSE: HMLP) reported Q1 EPS of $0.07, $0.30 worse than the analyst estimate of $0.37. Revenue for the quarter came in at $36.69 million versus the consensus estimate of $36.56 million.

Highlights

• Implemented measures to mitigate the risks from the COVID-19 pandemic and ensure the health and safety of our crews and staff, whose wellbeing are our highest priority
• No reported cases of COVID-19; 100% availability of FSRUs for the first quarter of 2020
• Reported time charter revenues of $36.7 million for the first quarter of 2020, compared to $36.1 million of time charter revenues for the first quarter of 2019
• Generated operating income of $13.4 million, net income of $5.5 million and limited partners' interest in net income of $1.8 million for the first quarter of 2020 compared to operating income of $22.7 million, net income of $14.1 million and limited partners' interest in net income of $10.8 million for the first quarter of 2019
• Operating income, net income and limited partners' interest in net income were impacted by higher unrealized losses on derivative instruments for the first quarter of 2020 compared with the first quarter of 2019 mainly on the Partnership's share of equity in earnings (losses) of joint ventures
• Excluding the impact of unrealized losses on derivative instruments for the first quarter of 2020 and 2019 impacting the equity in earnings (losses) of joint ventures, operating income would have been $25.2 million for both the three months ended March 31, 2020 and 2019
• Generated Segment EBITDA1 of $36.1 million for both the first quarter of 2020 and 2019
• On April 30, 2020, entered a lease and maintenance agreement (the "Subsequent Charter") with a subsidiary of Höegh LNG for the time charter of the Höegh Gallant. The Subsequent Charter commenced on May 1, 2020 and expires on July 31, 2025
• On May 15, 2020, paid a $0.44 per unit distribution on common units with respect to the first quarter of 2020, equivalent to $1.76 per unit on an annualized basis
• On May 15, 2020, paid a $0.546875 per unit distribution on the 8.75% Series A cumulative redeemable preferred units ("Series A preferred units") for the period commencing on February 15, 2020 to May 14, 2020, equivalent to $2.1875 per unit on an annualized basis

Steffen Føreid, Chief Executive Officer and Chief Financial Officer stated: "We have implemented measures to mitigate the risks from the COVID-19 pandemic and ensure the health and safety of our crews and staff, whose wellbeing are our highest priority. All our crew and staff have continued to work hard to deliver what is required in these unprecedented circumstances caused by the COVID-19 pandemic. As a result, Höegh LNG Partners delivered consistent operational excellence and achieved 100% availability of our FRSUs, ensuring strong distribution coverage from our long-term, fixed-rate contracts. With the execution of our 5-year option for the Höegh Gallant during the quarter, we have further ensured the long-term stability of the partnership's cash flows. With more than 9 years of average remaining contracted duration, Höegh LNG Partners is well positioned to continue providing our unitholders with predictable distributions."

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

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