Hoegh LNG Partners (HMLP) Tops Q2 EPS by 16c, Revenues Miss

Hoegh LNG Partners (NYSE: HMLP) reported Q2 EPS of $0.50, $0.16 better than the analyst estimate of $0.34. Revenue for the quarter came in at $34.44 million versus the consensus estimate of $35.3 million.

Highlights

• Implemented measures to mitigate the risks from the COVID-19 pandemic and ensure health and safety of crews and staff, whose wellbeing is the Partnership's highest priority
• 100% availability of FSRUs for the second quarter of 2020
• Reported total time charter revenues of $34.4 million for the second quarter of 2020 compared to $33.8 million of time charter revenues for the second quarter of 2019
• Generated operating income of $27.7 million, net income of $19.7 million and limited partners' interest in net income of $16.0 million for the second quarter of 2020 compared to operating income of $15.3 million, net income of $6.2 million and limited partners' interest in net income of $2.8 million for the second quarter of 2019
• Operating income, net income and limited partners' interest in net income were impacted by unrealized gains on derivative instruments for the second quarter of 2020 compared with unrealized losses on derivative instruments for the second quarter of 2019 mainly on the Partnership's share of equity in earnings (losses) of joint ventures in the second quarter of 2020 and 2019
• Excluding the impact of unrealized gains (losses) on derivative instruments for the second quarter of 2020 and 2019 impacting the equity in earnings (losses) of joint ventures, operating income would have been $25.5 million for the three months ended June 30, 2020 compared with $19.9 million for the three months ended June 30, 2019
• Generated Segment EBITDA1 of $36.0 million and $31.0 million for the second quarter of 2020 and 2019, respectively
• On April 30, 2020, entered into 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 August 6, 2020, announced that Mr. Steffen Føreid intends to step down from his position as the Partnership's Chief Executive Officer and Chief Financial Officer. On August 19, 2020, announced that Mr. Føreid's resignation will take effect on August 21, 2020 (the "Effective Date"). As of the Effective Date, the President & CEO of Höegh LNG Holdings Ltd., Sveinung J.S. Støhle, will become the Partnership's Chief Executive Officer and Håvard Furu, the Chief Financial Officer of Höegh LNG Holdings Ltd., will become the Partnership's Chief Financial Officer
• On August 14, 2020, paid a $0.44 per unit distribution on common units with respect to the second quarter of 2020, equivalent to $1.76 per unit on an annualized basis
• On August 17, 2020, paid a cash distribution of $0.546875 per 8.75% Series A cumulative redeemable preferred units (the "Series A preferred unit"), for the period commencing on May 15, 2020 to August 14, 2020

Steffen Føreid, Chief Executive Officer and Chief Financial Officer stated: "Thanks to the hard work of all our crew and staff, we have continued to provide safe and reliable services through these unprecedented times caused by the COVID-19 pandemic. The consistent operational excellence has resulted in stable cash flows and strong distribution coverage for the quarter from the Partnership's portfolio of fixed-rate contracts. With the completion of the Subsequent Charter for the Höegh Gallant during the quarter, the average remaining contract length of the Partnership's long term contract portfolio stands at more than 9 years, ensuring that Höegh LNG Partners is well-positioned to continue generating stable and predictable cash flows."

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

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