Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Document And Entity Information | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | Hoegh LNG Partners LP |
Entity Central Index Key | 0001603016 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-36588 |
Entity Address, Address Line One | Wessex House, 5th Floor |
Entity Address, Address Line Two | 45 Reid Street |
Entity Address, City or Town | Hamilton |
Entity Address, Country | BM |
CONDENSED INTERIM CONSOLIDATED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
REVENUES | ||||
Time charter revenues | $ 34,436 | $ 33,777 | $ 71,122 | $ 69,852 |
Other revenue | 0 | 0 | 0 | 64 |
Total revenues | 34,436 | 33,777 | 71,122 | 69,916 |
OPERATING EXPENSES | ||||
Vessel operating expenses | (5,776) | (9,064) | (11,283) | (14,957) |
Administrative expenses | (2,155) | (2,272) | (4,583) | (4,848) |
Depreciation and amortization | (5,234) | (5,589) | (10,516) | (10,912) |
Total operating expenses | (13,165) | (16,925) | (26,382) | (30,717) |
Equity in earnings (losses) of joint ventures | 6,475 | (1,575) | (3,572) | (1,223) |
Operating income (loss) | 27,746 | 15,277 | 41,168 | 37,976 |
FINANCIAL INCOME (EXPENSE), NET | ||||
Interest income | 163 | 297 | 335 | 496 |
Interest expense | (6,322) | (7,148) | (12,833) | (13,984) |
Gain (loss) on debt extinguishment | 0 | 0 | 0 | 1,030 |
Other items, net | (487) | (759) | (1,134) | (1,806) |
Total financial income (expense), net | (6,646) | (7,610) | (13,632) | (14,264) |
Income (loss) before tax | 21,100 | 7,667 | 27,536 | 23,712 |
Income tax expense | (1,419) | (1,511) | (2,381) | (3,421) |
Net income (loss) | 19,681 | 6,156 | 25,155 | 20,291 |
Preferred unitholders' interest in net income | 3,668 | 3,378 | 7,337 | 6,742 |
Limited partners' interest in net income (loss) | $ 16,013 | $ 2,778 | 17,818 | $ 13,549 |
Common Unit Public [Member] | ||||
FINANCIAL INCOME (EXPENSE), NET | ||||
Net income (loss) | $ 9,218 | |||
Earnings per unit | ||||
Earnings per share, basic and diluted | $ 0.47 | $ 0.07 | $ 0.51 | $ 0.38 |
Common units Hoegh LNG [Member] | ||||
FINANCIAL INCOME (EXPENSE), NET | ||||
Net income (loss) | $ 8,600 | |||
Earnings per unit | ||||
Earnings per share, basic and diluted | 0.50 | 0.10 | $ 0.56 | 0.44 |
Subordinated Units Hoegh LNG [Member] | ||||
FINANCIAL INCOME (EXPENSE), NET | ||||
Net income (loss) | $ 0 | |||
Earnings per unit | ||||
Earnings per share, basic and diluted | $ 0 | $ 0.10 | $ 0 | $ 0.44 |
CONDENSED INTERIM CONSOLIDATE_2
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income (loss) | $ 19,681 | $ 6,156 | $ 25,155 | $ 20,291 |
Unrealized gains (losses) on cash flow hedge | (694) | (7,574) | (15,814) | (12,934) |
Income tax benefit (expense) | (53) | (54) | (129) | (117) |
Other comprehensive income (loss) | (747) | (7,628) | (15,943) | (13,051) |
Comprehensive income (loss) | 18,934 | (1,472) | 9,212 | 7,240 |
Preferred unitholders' interest in net income | 3,668 | 3,378 | 7,337 | 6,742 |
Limited partners' interest in comprehensive income (loss) | $ 15,266 | $ (4,850) | $ 1,875 | $ 498 |
CONDENSED INTERIM CONSOLIDATE_3
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 25,623 | $ 39,126 |
Restricted cash | 6,021 | 8,066 |
Trade receivables | 4,266 | 735 |
Amounts due from affiliates | 5,701 | 4,296 |
Inventory | 0 | 463 |
Current portion of net investment in financing lease | 4,756 | 4,551 |
Prepaid expenses and other receivables | 3,334 | 2,534 |
Total current assets | 49,701 | 59,771 |
Long-term assets | ||
Restricted cash | 12,369 | 12,627 |
Accumulated earnings of joint ventures | 405 | 3,270 |
Advances to joint ventures | 3,988 | 3,831 |
Vessels, net of accumulated depreciation | 630,030 | 640,431 |
Other equipment | 105 | 256 |
Intangibles and goodwill | 15,444 | 17,108 |
Net investment in financing lease | 271,827 | 274,353 |
Long-term deferred tax asset | 197 | 217 |
Other long-term assets | 849 | 936 |
Total long-term assets | 935,214 | 953,029 |
Total assets | 984,915 | 1,012,800 |
Current liabilities | ||
Current portion of long-term debt | 44,660 | 44,660 |
Trade payables | 394 | 533 |
Amounts due to owners and affiliates | 3,627 | 2,513 |
Value added and withholding tax liability | 1,091 | 1,476 |
Derivative instruments | 7,208 | 2,907 |
Accrued liabilities and other payables | 7,756 | 11,164 |
Total current liabilities | 64,736 | 63,253 |
Long-term liabilities | ||
Accumulated losses of joint ventures | 707 | 0 |
Long-term debt | 391,141 | 412,301 |
Revolving credit facility due to owners and affiliates | 4,749 | 8,792 |
Derivative instruments | 23,652 | 12,028 |
Long-term tax liability | 2,476 | 2,283 |
Long-term deferred tax liability | 13,298 | 12,549 |
Other long-term liabilities | 68 | 84 |
Total long-term liabilities | 436,091 | 448,037 |
Total liabilities | 500,827 | 511,290 |
EQUITY | ||
Accumulated other comprehensive income (loss) | (33,886) | (17,943) |
Total partners' capital | 484,088 | 501,510 |
Total equity | 484,088 | 501,510 |
Total liabilities and equity | 984,915 | 1,012,800 |
8.75% Series A Preferred Units [Member] | ||
EQUITY | ||
Total partners' capital | 166,607 | 164,482 |
Total equity | 166,607 | 164,482 |
Common Unit Public [Member] | ||
EQUITY | ||
Total partners' capital | 308,509 | 315,176 |
Total equity | 308,509 | 315,176 |
Common units Hoegh LNG [Member] | ||
EQUITY | ||
Total partners' capital | 42,858 | 39,795 |
Total equity | $ 42,858 | $ 39,795 |
CONDENSED INTERIM CONSOLIDATE_4
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jun. 30, 2020 | Dec. 31, 2019 |
8.75% Series A Preferred Units [Member] | ||
General Partners' Capital Account, Units Issued | 6,707,999 | 6,625,590 |
General Partners' Capital Account, Units Outstanding | 6,707,999 | 6,625,590 |
Common Unit Public [Member] | ||
General Partners' Capital Account, Units Issued | 18,028,786 | 18,028,786 |
General Partners' Capital Account, Units Outstanding | 18,028,786 | 18,028,786 |
Common units Hoegh LNG [Member] | ||
General Partners' Capital Account, Units Issued | 15,257,498 | 15,257,498 |
General Partners' Capital Account, Units Outstanding | 15,257,498 | 15,257,498 |
CONDENSED INTERIM CONSOLIDATE_5
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands | 8.75% Series A Preferred Units [Member] | Common Unit Public [Member] | Common units Hoegh LNG [Member] | Subordinated Units Hoegh LNG [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Dec. 31, 2018 | $ 151,259 | $ 325,250 | $ 6,844 | $ 42,421 | $ (5,337) | $ 520,437 |
Net income | 13,850 | 20,186 | 12,973 | 5,732 | 0 | 52,741 |
Cash distributions to unitholders | (13,692) | (31,663) | (10,051) | (18,398) | 0 | (73,804) |
Refund of indemnification received from Hegh LNG | 0 | 0 | (9) | (55) | 0 | (64) |
Conversion of subordinated units to common units | 0 | 0 | 29,837 | (29,837) | 0 | 0 |
Other comprehensive income | 0 | 0 | 0 | 0 | (12,606) | (12,606) |
Net proceeds from issuance of common units | 0 | 1,029 | 0 | 0 | 0 | 1,029 |
Net proceeds from issuance of Series A Preferred Units | 13,065 | 0 | 0 | 0 | 0 | 13,065 |
Issuance of units for Board of Directors' fees | 0 | 194 | 0 | 0 | 0 | 194 |
Other and contributions from owners | 0 | 180 | 201 | 137 | 0 | 518 |
Balance at Dec. 31, 2019 | 164,482 | 315,176 | 39,795 | 0 | (17,943) | 501,510 |
Net income | 7,337 | 9,218 | 8,600 | 0 | 0 | 25,155 |
Cash distributions to unitholders | (7,337) | (15,865) | (14,226) | 0 | 0 | (37,428) |
Refund of indemnification received from Hegh LNG | 0 | |||||
Cumulative change in accounting principle (Note 2) | 0 | (84) | (72) | 0 | 0 | (156) |
Cash contribution from Hoegh LNG | 0 | 0 | 8,600 | 0 | 0 | 8,600 |
Other comprehensive income | 0 | 0 | 0 | 0 | (15,943) | (15,943) |
Net proceeds from issuance of Series A Preferred Units | 2,125 | 0 | 0 | 0 | 0 | 2,125 |
Other and contributions from owners | 0 | 64 | 161 | 0 | 0 | 225 |
Balance at Jun. 30, 2020 | $ 166,607 | $ 308,509 | $ 42,858 | $ 0 | $ (33,886) | $ 484,088 |
CONDENSED INTERIM CONSOLIDATE_6
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES | ||||
Net income (loss) | $ 19,681 | $ 6,156 | $ 25,155 | $ 20,291 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 5,234 | 5,589 | 10,516 | 10,912 |
Equity in losses (earnings) of joint ventures | (6,475) | 1,575 | 3,572 | 1,223 |
Changes in accrued interest income on advances to joint ventures | (79) | (73) | (157) | (143) |
Amortization of deferred debt issuance cost and fair value of debt assumed | 578 | 639 | 1,170 | 1,115 |
Amortization in revenue for above market contract and extension | 759 | 905 | 1,664 | 1,800 |
Expenditure for drydocking | 0 | (2,862) | 0 | (2,862) |
(Gain) loss on debt extinguishment | 0 | 0 | 0 | (1,030) |
Changes in accrued interest expense | (102) | (628) | (142) | 2,178 |
Receipts from repayment of principal on financing lease | 1,125 | 1,030 | 2,226 | 2,038 |
Unrealized foreign exchange losses (gains) | (41) | 52 | (68) | 50 |
Gain (loss) on the settlement of the derivatives | 0 | 0 | 0 | (199) |
Proceeds from settlement of derivatives | 0 | 0 | 0 | 1,398 |
Unrealized loss (gain) on derivative instruments | 21 | 24 | 112 | 6 |
Non-cash revenue: tax paid directly by charterer | (218) | (220) | (423) | (422) |
Non-cash income tax expense: tax paid directly by charterer | 218 | 220 | 423 | 422 |
Deferred tax expense and provision for tax uncertainty | 940 | 910 | 834 | 1,973 |
Issuance of units for Board of Directors' fees | 0 | 155 | 0 | 155 |
Other adjustments | 120 | 159 | 222 | 264 |
Changes in working capital: | ||||
Trade receivables | 764 | 973 | (3,683) | (3,209) |
Inventory | 463 | 185 | 463 | 185 |
Prepaid expenses and other receivables | (164) | 1,179 | (739) | (623) |
Trade payables | (241) | (130) | (141) | (48) |
Amounts due to owners and affiliates | 238 | 1,862 | (291) | 3,237 |
Value added and withholding tax liability | 148 | 760 | (859) | 1,843 |
Accrued liabilities and other payables | 356 | (754) | (2,518) | (973) |
Net cash provided by (used in) operating activities | 23,325 | 17,706 | 37,336 | 39,581 |
INVESTING ACTIVITIES | ||||
Expenditure for vessel and other equipment | (8) | (140) | (8) | (140) |
Net cash provided by (used in) investing activities | (8) | (140) | (8) | (140) |
FINANCING ACTIVITIES | ||||
Proceeds from long-term debt | 0 | 0 | 0 | 320,000 |
Proceeds from loans due to owners and affiliates | 4,500 | 3,500 | 4,500 | 3,500 |
Repayment of long-term debt | (11,166) | (11,165) | (22,330) | (320,086) |
Payment of debt issuance costs | 0 | 0 | 0 | (5,797) |
Net proceeds from issuance of common units | 0 | 1,029 | 0 | 1,029 |
Net proceeds from issuance of 8.75% Series A Preferred Units | 0 | 1,316 | 2,125 | 1,316 |
Cash distributions to limited partners and preferred unitholders | (18,714) | (18,407) | (37,428) | (36,766) |
Repayment of indemnifications received from Hoegh LNG | 0 | (64) | 0 | (64) |
Net cash provided by (used in) financing activities | (25,380) | (23,791) | (53,133) | (36,868) |
Increase (decrease) in cash, cash equivalents and restricted cash | (2,063) | (6,225) | (15,805) | 2,573 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 102 | (13) | (1) | 8 |
Cash, cash equivalents and restricted cash, beginning of period | 45,974 | 54,273 | 59,819 | 45,454 |
Cash, cash equivalents and restricted cash, end of period | $ 44,013 | $ 48,035 | $ 44,013 | $ 48,035 |
CONDENSED INTERIM CONSOLIDATE_7
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
Cash and cash equivalents | $ 25,623 | $ 39,126 | $ 27,137 | $ 26,326 | ||
Restricted cash - current asset | 6,021 | 8,066 | 8,011 | 6,003 | ||
Restricted cash - non-current asset | 12,369 | 12,627 | 12,887 | 13,125 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 44,013 | $ 45,974 | $ 59,819 | $ 48,035 | $ 54,273 | $ 45,454 |
Description of business
Description of business | 6 Months Ended |
Jun. 30, 2020 | |
Description of business | |
Description of business | l 1. Description of business Höegh LNG Partners LP (the “Partnership”) is a publicly traded Marshall Islands limited partnership initially formed for the purpose of acquiring from Höegh LNG Holdings Ltd. (“Höegh LNG”) its interests in Hoegh LNG Lampung Pte. Ltd., PT Hoegh LNG Lampung (the owner of the PGN FSRU Lampung Neptune Cape Ann The interests in SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., collectively, are referred to as the “joint ventures” and the remaining entities owned by the Partnership, as reflected in the table below are, collectively, referred to as the “subsidiaries” in these consolidated financial statements. The PGN FSRU Lampung Höegh Gallant Höegh Grace Neptune Cape Ann PGN FSRU Lampung Höegh Gallant Höegh Grace The Neptune Cape Ann PGN FSRU Lampung Höegh Gallant Höegh Gallant Höegh Gallant Höegh Grace The following table lists the entities included in these consolidated financial statements and their purpose as of June 30, 2020. Jurisdiction of Incorporation Name or Registration Purpose Höegh LNG Partners LP Marshall Islands Holding Company Höegh LNG Partners Operating LLC (100% owned) (3) Marshall Islands Holding Company Hoegh LNG Services Ltd (100% owned) United Kingdom Administration Services Company Hoegh LNG Lampung Pte. Ltd. (100% owned) Singapore Owns 49% of PT Hoegh LNG Lampung PT Hoegh LNG Lampung (49% owned) (1) Indonesia Owns PGN FSRU Lampung SRV Joint Gas Ltd. (50% owned) (2) Cayman Islands Owns Neptune SRV Joint Gas Two Ltd. (50% owned) (2) Cayman Islands Owns Cape Ann Hoegh LNG Cyprus Limited (100% owned) Cyprus Owns Höegh Gallant Hoegh LNG Cyprus Limited Egypt Branch (100% owned) Egypt Branch of Hoegh LNG Cyprus Limited Höegh LNG Colombia Holding Ltd. (100% owned) Cayman Islands Owns 100% of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S. Höegh LNG FSRU IV Ltd. (100% owned) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (100% owned) Colombia Operating Company (1) PT Hoegh LNG Lampung is a variable interest entity, which is controlled by Hoegh LNG Lampung Pte. Ltd. and is, therefore, 100% consolidated in the consolidated financial statements. (2) The remaining 50% interest in each joint venture is owned by Mitsui O.S.K. Lines, Ltd. and Tokyo LNG Tanker Co. (3) On January 31, 2019, Höegh LNG FSRU III Ltd. transferred its ownership in Hoegh LNG Cyprus Limited to Höegh LNG Partners Operating LLC. Höegh LNG FSRU III Ltd. was formally dissolved on May 4, 2020 . |
Significant accounting policies
Significant accounting policies | 6 Months Ended |
Jun. 30, 2020 | |
Significant accounting policies | |
Significant accounting policies | 2. Significant accounting policies Basis of presentation The accompanying unaudited condensed interim consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information. In the opinion of Management, all adjustments considered necessary for a fair presentation, which are of a normal recurring nature, have been included. All inter-company balances and transactions are eliminated. The footnotes are condensed and do not include all the disclosures required for a complete set of financial statements. Therefore, the unaudited condensed interim consolidated financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2019, included in the Partnership’s Annual Report on Form 20-F (the “Annual Report”). It has been determined that PT Hoegh LNG Lampung, Hoegh LNG Cyprus Limited, Höegh LNG Colombia Holding Ltd., SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. are variable interest entities. A variable interest entity (“VIE”) is defined by US GAAP as a legal entity where either (a) the voting rights of some investors are not proportional to their rights to receive the expected residual returns of the entity, their obligations to absorb the expected losses of the entity, or both, and substantially all of the entity's activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity's residual risks and rewards. The guidance requires a VIE to be consolidated if any of its interest holders are entitled to a majority of the entity's residual returns or are exposed to a majority of its expected losses. Based upon the criteria set forth in US GAAP, the Partnership has determined that PT Hoegh LNG Lampung is a VIE, as the equity holders, through their equity investments, may not participate fully in the entity's expected residual returns and substantially all of the entity's activities either involve, or are conducted on behalf of, the Partnership. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of PT Hoegh LNG Lampung are included in the consolidated financial statements. Dividends may only be paid if the retained earnings are positive and a statutory reserve has been established equal to 20% of its paid-up capital under Indonesian law. As of June 30, 2020, PT Hoegh LNG Lampung is in the process of establishing the required statutory reserves and therefore is currently unable to make dividend payments under Indonesia law. Under the Lampung facility, there are limitations on cash dividends and loan distributions that can be made to the Partnership. Refer to note 9. The Partnership has also determined that Hoegh LNG Cyprus Limited is a VIE, as the equity investment does not provide sufficient equity to permit the entity to finance its activities without intercompany loans. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of Hoegh LNG Cyprus Limited are included in the consolidated financial statements. Under Cyprus law, dividends may only be distributed out of profits and not from the share capital of the company. The Partnership has determined that Höegh LNG Colombia Holding Ltd. is a VIE since the entity would not be able to finance its activities without intercompany loans to its subsidiary to finance the Höegh Grace Dividends and other distributions from Höegh LNG Cyprus Limited, Hoegh LNG Colombia Ltd. and Höegh LNG FSRU IV Ltd. may only be distributed if after the dividend payment, the Partnership would remain in compliance with the financial covenants under the $385 million facility. Refer to note 9. In addition, the Partnership has determined that the two joint ventures, SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., are VIEs since each entity did not have a sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support. The entities have been financed with third party debt and subordinated shareholders loans. The Partnership is not the primary beneficiary, as the Partnership cannot make key operating decisions considered to be most significant to the VIEs but has joint control with the other equity holders. Therefore, the joint ventures are accounted for under the equity method of accounting as the Partnership has significant influence. The Partnership's carrying value is recorded in advances to joint ventures and accumulated earnings (losses) of joint ventures in the consolidated balance sheets. For SRV Joint Gas Ltd., the Partnership had a receivable for the advances of $3.2 million and $3.0 million, respectively, as of June 30, 2020 and December 31, 2019. The Partnership’s accumulated earnings, or its share of net assets, was $0.4 million and $2.6 million, respectively, as of June 30, 2020 and December 31, 2019. The Partnership's carrying value for SRV Joint Gas Two Ltd. consists of a receivable for the advances of $0.8 million, as of both June 30, 2020 and December 31, 2019. The Partnership’s accumulated losses, or its share of net liabilities of $0.7 million as of June 30, 2020 and the Partnership’s accumulated earnings, or its share of net assets, was $0.7 million as of December 31, 2019. The major reason that the Partnership has historically had accumulated losses in the joint ventures, or net liabilities, is due to the fair value adjustments for the interest rate swaps recorded as liabilities on the combined balance sheets of SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. and eliminations for consolidation to the balance sheet. The maximum exposure to loss is the carrying value of the receivables, which is subordinated to the joint ventures’ long-term bank debt, the investments in the joint ventures (accumulated earnings or losses), as the shares are pledged as security for the joint ventures’ long-term bank debt, and Höegh LNG’s commitment under long-term bank loan agreements to fund its share of drydocking costs and remarketing efforts in the event of an early termination of the charters. If the charters terminate for any reason that does not result in a termination fee, the joint ventures’ long-term bank debt would be subject to mandatory repayment. Dividend distributions require a) agreement of the other joint venture owners; b) fulfilment of requirements of the long-term bank loans; c) and under Cayman Islands law may be paid out of profits or capital reserves subject to the joint venture being solvent after the distribution. Refer to notes 7 and 8 for additional discussion on dividend distributions. Significant accounting policies The accounting policies used in the preparation of the unaudited condensed interim consolidated financial statements are consistent with those applied in the audited financial statements for the year ended December 31, 2019 included in the Partnership’s Annual Report, except as described below. Changes to the accounting policies as a result of adopting revised guidance for expected credit losses is as follows: Allowance for expected credit losses Recently adopted accounting pronouncements On January 1, 2020, the Partnership adopted the Financial Accounting Standards Board's ("FASB") revised guidance on Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss methodology with a current expected loss (CECL) methodology that requires consideration of a broader range of reasonable and supportable information to estimate credit losses. The new guidance is applicable to financial assets measured at amortized cost, including trade receivables, contract assets and net investment in financing leases and applied with a modified retrospective method. The Partnership recorded a net decrease to retained earnings of $0.16 million as of January 1, 2020 for the cumulative effect of adopting the new standard. The cumulative effect includes allowances for expected credit losses recognized of $0.1 million related to the net investment in financing lease and a $0.06 million related to trade receivables. Refer to note 4. For the six months ended June 30, 2020, there was no change in the allowance for expected credit losses following the cumulative effect of adopting the new standard. On January 1, 2020, the Partnership adopted FASB's revised guidance for Intangibles - Goodwill and Other: Simplifying the test for Goodwill Impairment , which simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The adoption of the standard did not have an impact on the consolidated financial statements. Recently issued accounting pronouncements In December 2019, FASB issued revised guidance for Income Taxes - Simplifying the Accounting for Income Taxes In March 2020, FASB issued final guidance for Reference Rate Reform Other recently issued accounting pronouncements are not expected to materially impact the Partnership. |
Segment information
Segment information | 6 Months Ended |
Jun. 30, 2020 | |
Segment information | |
Segment information | 3. Segment information There are two operating segments. The segment profit measure is Segment EBITDA, which is defined as earnings before interest, taxes, depreciation, amortization and other financial items (gain (loss) on debt extinguishment, gain (loss) on derivative instruments and other items, net). Segment EBITDA is reconciled to operating income and net income in the segment presentation below. The two segments are “Majority held FSRUs” and “Joint venture FSRUs.” In addition, unallocated corporate costs, interest income from advances to joint ventures and interest expense related to the outstanding balances on the $85 million revolving credit facility and the $385 million facility is included in “Other.” For the three and six months ended June 30, 2020 and 2019, Majority held FSRUs includes the financing lease related to the PGN FSRU Lampung Höegh Gallant Höegh Grace For the three and six months ended June 30, 2020 and 2019, Joint venture FSRUs include two 50% owned FSRUs, the Neptune Cape Ann The accounting policies applied to the segments are the same as those applied in the consolidated financial statements, except that i) Joint venture FSRUs are presented under the proportional consolidation method for the segment note and under equity accounting for the consolidated financial statements and ii) internal interest income and interest expense between the Partnership's subsidiaries that eliminate in consolidation are not included in the segment columns for the other financial income (expense), net line. Under the proportional consolidation method, 50% of the Joint venture FSRUs’ revenues, expenses and assets are reflected in the segment note. Management monitors the results of operations of joint ventures under the proportional consolidation method and not the equity method of accounting. In time charters, the charterer, not the Partnership, controls the choice of locations or routes the FSRUs serve. Accordingly, the presentation of information by geographical region is not meaningful. The following tables include the results for the segments for the three and six months ended June 30, 2020 and 2019. Three months ended June 30, 2020 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations Reporting Time charter revenues $ 34,436 12,139 — 46,575 (12,139) (1) $ 34,436 Total revenues 34,436 12,139 — 46,575 34,436 Operating expenses (6,616) (2,660) (1,315) (10,591) 2,660 (1) (7,931) Equity in earnings (losses) of joint ventures — — — — 6,475 (1) 6,475 Segment EBITDA 27,820 9,479 (1,315) 35,984 Depreciation and amortization (5,234) (2,490) — (7,724) 2,490 (1) (5,234) Operating income (loss) 22,586 6,989 (1,315) 28,260 27,746 Gain (loss) on derivative instruments — 2,295 — 2,295 (2,295) (1) — Other financial income (expense), net (2,236) (2,921) (4,410) (9,567) 2,921 (1) (6,646) Income (loss) before tax 20,350 6,363 (5,725) 20,988 21,100 Income tax benefit (expense) (1,419) 112 — (1,307) (112) (1,419) Net income (loss) $ 18,931 6,475 (5,725) 19,681 — $ 19,681 Preferred unitholders’ interest in net income — — — — 3,668 (2) 3,668 Limited partners’ interest in net income (loss) $ 18,931 6,475 (5,725) 19,681 (3,668) (2) $ 16,013 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership's share of the Joint venture FSRUs net income (loss) to Equity in earnings (losses) of joint ventures. (2) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. Three months ended June 30, 2019 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other Reporting Eliminations reporting Time charter revenues $ 33,777 10,752 — 44,529 (10,752) (1) $ 33,777 Total revenues 33,777 10,752 — 44,529 33,777 Operating expenses (9,885) (2,233) (1,451) (13,569) 2,233 (1) (11,336) Equity in earnings (losses) of joint ventures — — — — (1,575) (1) (1,575) Segment EBITDA 23,892 8,519 (1,451) 30,960 Depreciation and amortization (5,589) (2,452) — (8,041) 2,452 (1) (5,589) Operating income (loss) 18,303 6,067 (1,451) 22,919 15,277 Gain (loss) on derivative instruments — (4,649) — (4,649) 4,649 (1) — Other financial income (expense), net (2,689) (2,993) (4,921) (10,603) 2,993 (1) (7,610) Income (loss) before tax 15,614 (1,575) (6,372) 7,667 7,667 Income tax expense (1,511) — — (1,511) (1,511) Net income (loss) $ 14,103 (1,575) (6,372) 6,156 — $ 6,156 Preferred unitholders’ interest in net income — — — — 3,378 (2) 3,378 Limited partners' interest in net income (loss) $ 14,103 (1,575) (6,372) 6,156 (3,378) (2) $ 2,778 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership's share of the Joint venture FSRUs net income (loss) to Equity in earnings (losses) of joint ventures. (2) Allocates the preferred unitholders' interest in net income to the preferred unitholders. Six months ended June 30, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations Reporting Time charter revenues $ 71,122 22,666 — 93,788 (22,666) (1) $ 71,122 Total revenues 71,122 22,666 — 93,788 71,122 Operating expenses (12,846) (5,812) (3,020) (21,678) 5,812 (1) (15,866) Equity in earnings (losses) of joint ventures — — — — (3,572) (1) (3,572) Segment EBITDA 58,276 16,854 (3,020) 72,110 Depreciation and amortization (10,516) (4,984) — (15,500) 4,984 (1) (10,516) Operating income (loss) 47,760 11,870 (3,020) 56,610 41,168 Gain (loss) on derivative instruments — (9,490) — (9,490) 9,490 (1) — Other financial income (expense), net (4,781) (5,952) (8,851) (19,584) 5,952 (1) (13,632) Income (loss) before tax 42,979 (3,572) (11,871) 27,536 27,536 Income tax expense (2,381) — — (2,381) — (2,381) Net income (loss) $ 40,598 (3,572) (11,871) 25,155 — $ 25,155 Preferred unitholders’ interest in net income — — — — 7,337 (2) 7,337 Limited partners' interest in net income (loss) $ 40,598 (3,572) (11,871) 25,155 (7,337) (2) $ 17,818 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership's share of the Joint venture FSRUs net income (loss) to Equity in earnings (losses) of joint ventures. (2) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. As of June 30, 2020 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other Reporting Eliminations Reporting Vessels, net of accumulated depreciation $ 630,030 247,201 — 877,231 (247,201) (1) $ 630,030 Net investment in financing lease 276,583 — — 276,583 — 276,583 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,988 3,988 — 3,988 Total assets 979,367 272,396 5,548 1,257,311 (272,396) (1) 984,915 Accumulated earnings of joint ventures — — 25 25 380 (1) 405 Accumulated losses of joint ventures — — 25 25 (732) (1) (707) Expenditures for vessels & equipment 8 68 — 76 (68) (2) 8 Expenditures for drydocking — 2 — 2 (2) (2) — Principal repayment financing lease 2,226 — — 2,226 — 2,226 Amortization of above market & contract extension $ 1,664 — — 1,664 — $ 1,664 (1) Eliminates the proportional share of the Joint venture FSRUs' Vessels, net of accumulated depreciation, and Total assets and reflects the Partnership's share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated earnings (losses) of joint ventures. (2) Eliminates the Joint venture FSRUs' Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Six months ended June 30, 2019 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 69,852 21,081 — 90,933 (21,081) (1) $ 69,852 Other revenue 64 (3) — — 64 (1) 64 Total revenues 69,916 21,081 — 90,997 69,916 Operating expenses (16,583) (4,112) (3,222) (23,917) 4,112 (1) (19,805) Equity in earnings (losses) of joint ventures — — — — (1,223) (1) (1,223) Segment EBITDA 53,333 16,969 (3,222) 67,080 Depreciation and amortization (10,912) (5,005) — (15,917) 5,005 (1) (10,912) Operating income (loss) 42,421 11,964 (3,222) 51,163 37,976 Gain (loss) on debt extinguishment 1,030 — — 1,030 (1) 1,030 Gain (loss) on derivative instruments — (7,190) — (7,190) 7,190 (1) — Other financial income (expense), net (6,926) (5,997) (8,368) (21,291) 5,997 (1) (15,294) Income (loss) before tax 36,525 (1,223) (11,590) 23,712 23,712 Income tax expense (3,421) — — (3,421) (3,421) Net income (loss) $ 33,104 (1,223) (11,590) 20,291 — $ 20,291 Preferred unitholders’ interest in net income — — — — 6,742 (2) 6,742 Limited partners’ interest in net income (loss) $ 33,104 (1,223) (11,590) 20,291 (6,742) (2) $ 13,549 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership's share of the Joint venture FSRUs net income (loss) to Equity in earnings (loss) of joint ventures. (2) Allocates the preferred unitholders' interest in net income to the preferred unitholders. (3) Other revenue consists of insurance proceeds received for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs related to the Mooring, subject to repayment to the extent recovered from insurance proceeds. The amount was refunded to Höegh LNG during the second quarter of 2019. Refer to notes 4, 11 and 14. As of December 31, 2019 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations Reporting Vessels, net of accumulated depreciation $ 640,431 252,789 — 893,220 (252,789) (1) $ 640,431 Net investment in financing lease 278,904 — — 278,904 — 278,904 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,831 3,831 — 3,831 Total assets 996,201 284,174 16,599 1,296,974 (284,174) (1) 1,012,800 Accumulated earnings of joint ventures — — 50 50 3,220 (1) 3,270 Expenditures for vessels & equipment 211 195 — 406 (195) (2) 211 Expenditures for drydocking 3,107 913 — 4,020 (913) (2) 3,107 Impairment/retirement of equipment — (75) — (75) 75 (2) — Principal repayment financing lease 4,168 — — 4,168 — 4,168 Amortization of above market contract $ 3,631 — — 3,631 — $ 3,631 (1) Eliminates the proportional share of the Joint venture FSRUs’ Vessels, net of accumulated depreciation, and Total assets and reflects the Partnership’s share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated earnings of joint ventures. (2) Eliminates (a) the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership and (b) impairment/retirement of equipment to reflect the Partnership's consolidated assets. |
Time charter revenues and relat
Time charter revenues and related contract balances | 6 Months Ended |
Jun. 30, 2020 | |
Time charter revenues and related contract balances | |
Time charter revenues and related contract balances | 4. Time charter revenues and related contract balances The Partnership presents its revenue by segment, disaggregated by revenue recognized in accordance with accounting standards on leasing and on revenue from contracts with customers for time charter services. In addition, material elements where the nature, amount, timing and uncertainty of revenue and cash flows differ from the monthly invoicing under time charter contracts are separately presented. Revenue recognized for the Majority held FSRUs includes the amortization of above market contract intangibles. Revenue recognized for Joint venture FSRUs includes the amortization of deferred revenues related to the charterer's reimbursements for certain vessel modifications and drydocking costs. As a result, the timing of cash flows differs from monthly time charter invoicing. The Partnership believes the nature of its time charter contracts are the same, regardless of whether the contracts are accounted for as financing leases or operating leases for accounting purposes. As such, the Partnership did not apply the practical expedient in the lease guidance to combine lease and services components for operating leases because this would result in inconsistent disclosure for the time charter contracts. The following tables summarize the disaggregated revenue of the Partnership by segment for the three and six months ended June 30, 2020 and 2019: Three months ended June 30, 2020 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 21,935 6,405 — 28,340 (6,405) $ 21,935 Time charter service revenues, excluding amortization 13,260 5,054 — 18,314 (5,054) 13,260 Amortization of above market & contract extension intangibles (759) — — (759) (759) Amortization of deferred revenue for modifications & drydock — 680 — 680 (680) — Total revenues (4) $ 34,436 12,139 — 46,575 (12,139) $ 34,436 Three months ended June 30, 2019 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 21,239 6,405 — 27,644 (6,405) $ 21,239 Time charter service revenues, excluding amortization 13,433 3,713 — 17,156 (3,713) 13,443 Amortization of above market contract intangibles (905) — — (905) (905) Amortization of deferred revenue for modifications & drydock — 634 — 634 (634) — Total revenues (4) $ 33,777 10,752 — 44,529 (10,752) $ 33,777 Six months ended June 30, 2020 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 44,393 12,810 — 57,203 (12,810) $ 44,393 Time charter service revenues, excluding amortization 28,393 8,507 — 36,900 (8,507) 28,393 Amortization of above market & contract extension intangibles (1,664) — — (1,664) — (1,664) Amortization of deferred revenue for modifications & drydock — 1,349 — 1,349 (1,349) — Total revenues (4) $ 71,122 22,666 — 93,788 (22,666) $ 71,122 Six months ended June 30, 2019 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) Reporting Lease revenues, excluding amortization (2) $ 43,614 12,739 — 56,353 (12,739) $ 43,614 Time charter service revenues, excluding amortization 28,038 6,990 — 35,028 (6,990) 28,038 Amortization of above market contract intangibles (1,800) — — (1,800) — (1,800) Amortization of deferred revenue for modifications & drydock — 1,352 — 1,352 (1,352) — Other revenue (3) 64 — — 64 — 64 Total revenues (4) $ 69,916 21,081 — 90,997 (21,081) $ 69,916 (1) Eliminations reverse the proportional amounts of revenue for Joint venture FSRUs to reflect the consolidated revenues included in the consolidated income statement. The Partnership's share of the Joint venture FSRUs revenues is included in Equity in earnings (loss) of joint ventures on the consolidated income statement. (2) The financing lease revenues comprise about one-fourth of the total lease revenues for the three and six months ended June 30, 2020 and 2019. (3) Other revenue consists of insurance proceeds received for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs related to the Mooring, subject to repayment to the extent recovered from insurance proceeds. Refer to notes 11 and 14. (4) Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of total revenues and is disclosed separately in the consolidated statement of cash flows. The Partnership’s risk and exposure related to uncertainty of revenues or cash flows related to its long-term time charter contracts primarily relate to the credit risk associated with the individual charterers. Payments are due under time charter contracts regardless of the demand for the charterers’ gas output or the utilization of the FSRU. The consolidated trade receivables, contract assets, contract liabilities and refund liabilities included in the tables below, exclude the balances for the Joint venture FSRUs. The Partnership’s share of net assets in the Joint venture FSRUs is recorded in the consolidated balance sheet using the equity method on the line accumulated losses in joint ventures. The following table summarizes the allocation of consolidated receivables between lease and service components: As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Trade receivable for lease $ 5,233 $ 2,898 Trade receivable for time charter services 4,794 2,133 Allowance for expected credit losses (60) — Total trade receivable and amounts due from affiliates $ 9,967 $ 5,031 Refer to note 2 for information related to the allowance for expected credit losses recorded on January 1, 2020. For the three and six months ended June 30, 2020, there was no change in the allowance for expected credit losses following the cumulative effect of adopting the new standard. There were no impairment losses for trade receivables for lease or time charter services or contract assets for the year ended December 31, 2019. The following tables summarize the consolidated contract assets, contract liabilities and refund liabilities to customers for the six months ended June 30, 2020 and for the year ended December 31, 2019: Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2020 $ 279 $ (125) Additions — (718) Reduction for receivables recorded (18) — Reduction for revenue recognized from previous years — 48 Repayments of refund liabilities to charterer — 17 Balance June 30, 2020 $ 261 $ (778) Services related Contract Refund liability (in thousands of U.S. dollars) Asset to charters Balance as of January 1, 2019 $ — $ (1,834) Additions 279 (65) Reduction for receivables recorded — 89 Reduction for revenue recognized from previous years — 497 Repayments of refund liabilities to charterer — 1,188 Balance as of December 31, 2019 $ 279 $ (125) Contract assets are reported in the consolidated balance sheet as a component of prepaid expenses and other receivables. Refund liabilities are reported in the consolidated balance sheet as a component of accrued liabilities and other payables. The service-related contract asset reflected in the balance sheet relates to accrued revenue for reimbursable costs from charterers. Refund liabilities to charterers include invoiced revenue to be refunded to charterers for estimated reimbursable costs that exceeded the actual cost incurred and for non-compliance with performance warranties in the time charter contracts that result in reduction of hire, liquidated damages or other performance related payments. During the year ended December 31, 2019, the major changes in the refund liability to charterers related to the settlement of a 2018 performance claim of $1,101 and the recognition of $497 of revenue related to conclusion of an audit by a charterer related to 2018 reimbursable expenses. Net investment in financing lease The lease element of time charter hire for the financing lease is recognized over the lease term using the effective interest rate method and is included in time charter revenues. The financing lease is reflected on the consolidated balance sheets as net investment in financing lease, a receivable, as follows: As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Minimum lease payments $ 589,074 $ 589,074 Unguaranteed residual value 146,000 146,000 Unearned income (440,345) (440,345) Initial direct cost, net 3,095 3,095 Net investment in financing lease 297,824 297,824 Principal repayment and amortization (21,145) (18,920) Allowance for credit loss (96) — Net investment in financing lease at period end 276,583 278,904 Less: Current portion (4,756) (4,551) Long term net investment in financing lease $ 271,827 $ 274,353 Net investment in financing lease consists of: Financing lease receivable $ 235,906 $ 240,000 Unguaranteed residual value 40,677 38,904 Net investment in financing lease at period end $ 276,583 $ 278,904 Refer to note 2 for information related to the allowance for expected credit losses recorded on January 1, 2020. For the three and six months ended June 30, 2020, there was no change in the allowance for expected credit losses following the cumulative effect of adopting the new standard. There were no impairment losses for financing lease receivable for the year ended December 31, 2019. The Partnership monitors quarterly actual credit losses, forecasts of LNG demand and changes in charterer or guarantor specific publicly available financial and credit information in developing expected credit losses. The Partnership has never incurred actual credit losses related to the net investment in financing lease. The Partnership measures the allowance for credit losses for the net investment in financing lease using the probability of default and loss given default method. |
Financial income (expense), net
Financial income (expense), net | 6 Months Ended |
Jun. 30, 2020 | |
Financial income (expense), net | |
Financial income (expense), net | 5. Financial income (expense), net The components of financial income (expense), net are as follows: Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2020 2019 2020 2019 Interest income $ 163 $ 297 $ 335 $ 496 Interest expense: Interest expense (5,710) (6,361) (11,594) (12,609) Commitment fees (34) (148) (69) (260) Amortization of debt issuance cost and fair value of debt assumed (578) (639) (1,170) (1,115) Total interest expense (6,322) (7,148) (12,833) (13,984) Gain (loss) on debt extinguishment — — — 1,030 Other items, net: Foreign exchange gain (loss) 166 (36) 214 (55) Bank charges, fees and other (41) (85) (127) (138) Withholding tax on interest expense and other (612) (638) (1,221) (1,613) Total other items, net (487) (759) (1,134) (1,806) Total financial income (expense), net $ (6,646) $ (7,610) $ (13,632) $ (14,264) Interest income related to cash balances and interest accrued on the advances to the joint ventures for each of the three and six months ended June 30, 2020 and 2019. As of January 1, 2019, interest expense includes reclassifications from accumulated other comprehensive income and other gains or losses from derivatives due to the adoption of the revised guidance for derivatives and hedging. Refer to note 13 for additional information on the types of gains and losses on derivatives included in interest expense. Interest expense also includes interest related to the revolving credit facility from Höegh LNG, the Lampung facility and the $385 million facility. The gain on debt extinguishment relates to the refinancing of the Gallant/Grace facility in January 2019 with the $385 million facility. When the entities owning the Höegh Gallant Höegh Grace |
Income tax
Income tax | 6 Months Ended |
Jun. 30, 2020 | |
Income tax | |
Income tax | 6. Income tax The Partnership is not subject to Marshall Islands corporate income taxes. The Partnership is subject to tax for earnings of its subsidiaries incorporated in Singapore, Indonesia, Cyprus and for certain Colombian source income. The income tax expense recorded in the consolidated income statements was $1,419 and $1,511 for the three months ended June 30, 2020 and 2019, respectively, and $2,381 and $3,421 for the six months ended June 30, 2020 and 2019, respectively. The main reason for the decrease for the six months ended June 30, 2020 was the reduction of the tax rate in Indonesia which was enacted on March 31, 2020. The tax rate decreased from 25 % for 2019 to 22% for 2020 and 2021 with further reductions to occur thereafter. The effect of changes in tax rates on deferred tax assets and liabilities is recognized at the date of enactment. For the three and six months ended June 30, 2020 and 2019, the income tax expense principally related to subsidiaries in Indonesia, Singapore and Colombia. The Singapore subsidiary’s taxable income mainly arises from internal interest income. The charterer in Colombia pays certain taxes directly to the Colombian tax authorities on behalf of the Partnership’s subsidiaries that own and operate the Höegh Grace 30, 2020 and 2019, respectively. The amount of non-cash income tax expense was $423 and $422 for the six months ended June 30, 2020 and 2019, respectively. Benefits of uncertain tax positions are recognized when it is more-likely-than-not that a tax position taken in a tax return will be sustained upon examination based on the technical merits of the position. For the three months ended June 30, 2020 and 2019, there were increases in uncertain tax positions of $96 and $101, respectively. For the six months ended June 30, 2020 and 2019, there were increases in uncertain tax positions of $193 and $211, respectively. As of June 30, 2020, and December 31, 2019, the unrecognized tax benefits were $2,476 and $2,283, respectively. |
Investments in joint ventures
Investments in joint ventures | 6 Months Ended |
Jun. 30, 2020 | |
Investments in joint ventures | |
Investments in joint ventures | 7. Investments in joint ventures As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Accumulated earnings of joint ventures $ 405 $ 3,270 Accumulated losses of joint ventures $ (707) $ — The Partnership has a 50% interest in each of SRV Joint Gas Ltd. (owner of the Neptune Two Cape Ann Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2020 2019 2020 2019 Time charter revenues $ 24,278 $ 21,504 $ 45,331 $ 42,162 Operating expenses (5,319) (4,467) (11,623) (8,226) Depreciation and amortization (5,133) (5,058) (10,275) (10,317) Operating income 13,826 11,979 23,433 23,619 Unrealized gain (loss) on derivative instruments 4,589 (9,297) (18,979) (14,379) Other financial expense, net (5,842) (5,985) (11,905) (11,994) Income (loss) before tax 12,573 (3,303) (7,451) (2,754) Income tax expense 223 — — — Net income (loss) $ 12,796 $ (3,303) $ (7,451) $ (2,754) Share of joint ventures owned 50 % 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations 6,398 (1,652) (3,726) (1,377) Eliminations 77 77 154 154 Equity in earnings (losses) of joint ventures $ 6,475 $ (1,575) $ (3,572) $ (1,223) As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Cash and cash equivalents $ 14,763 $ 17,897 Restricted cash 8,681 9,250 Other current assets 1,033 973 Total current assets 24,477 28,120 Restricted cash 25,913 34,650 Vessels, net of accumulated depreciation 509,576 521,060 Total long-term assets 535,489 555,710 Current portion of long-term debt 29,186 28,297 Amounts and loans due to owners and affiliates 886 629 Derivative instruments 15,011 13,089 Refund liabilities (1) 7,643 26,691 Other current liabilities 9,445 10,327 Total current liabilities 62,171 79,033 Long-term debt 360,434 375,091 Loans due to owners and affiliates 7,976 7,663 Derivative instruments 76,127 59,070 Other long-term liabilities 38,689 40,952 Total long-term liabilities 483,226 482,776 Net assets (liabilities) $ 14,569 $ 22,021 Share of joint ventures owned 50 % 50 % Share of joint ventures net assets (liabilities) before eliminations 7,285 11,011 Eliminations (7,587) (7,741) Accumulated earnings (losses) of joint ventures $ (302) $ 3,270 (1) Refund liabilities include the liability for the boil-off claim (refer to note 14) and other refundable amounts due to the charterer. |
Advances to joint ventures
Advances to joint ventures | 6 Months Ended |
Jun. 30, 2020 | |
Advances to joint ventures | |
Advances to joint ventures | 8. Advances to joint ventures As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Current portion of advances to joint ventures $ — $ — Long-term advances to joint ventures 3,988 3,831 Advances/shareholder loans to joint ventures $ 3,988 $ 3,831 The Partnership had advances of $3.2 million and $3.0 million due from SRV Joint Gas Ltd. as of June 30, 2020 and December 31, 2019, respectively. The Partnership had advances of $0.8 million due from SRV Joint Gas Two Ltd. as of June 30, 2020 and December 31, 2019. The joint ventures repaid the original principal of all shareholder loans during 2016. As of June 30, 2020, and December 31, 2019, the outstanding balances are accrued interest on the shareholder loans. As of September 30, 2017, the joint ventures suspended payments on the shareholder loans pending the outcome of the boil-off claim. As of April 1, 2020, the joint ventures reached an agreement on the boil-off claim requiring settlement during 2020. The suspension of payments on the shareholder loans will be re-evaluated as the claim is settled. Accordingly, the outstanding balance on the shareholder loans is classified as long-term as of June 30, 2020 and December 31, 2019. Refer to note 14 under “Joint ventures claims and accruals.” The advances, which are composed of accrued interest on the original principal, can be repaid based on available cash after servicing of long-term bank debt. There are no financial covenants in the joint ventures’ bank debt facilities, but certain other covenants and restrictions apply. Certain conditions apply to making distributions for the shareholder loans or dividends, including meeting a 1.20 historical and projected debt service coverage ratio. As of June 30, 2020, both the 1.20 historical and projected debt service coverage ratios were met by SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. |
Long-term debt
Long-term debt | 6 Months Ended |
Jun. 30, 2020 | |
Long-term debt | |
Long-term debt | 9. Long-term debt As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Lampung facility: Export credit tranche $ 86,767 $ 94,210 FSRU tranche 20,724 22,812 $385 million facility: Commercial tranche 240,170 249,635 Export credit tranche 47,833 51,167 Revolving credit facility 48,300 48,300 Outstanding principal 443,794 466,124 Lampung facility unamortized debt issuance cost (3,633) (4,309) $385 million facility unamortized debt issuance cost (4,360) (4,854) Total debt 435,801 456,961 Less: Current portion of long-term debt (44,660) (44,660) Long-term debt $ 391,141 $ 412,301 Lampung facility PT Hoegh LNG Lampung is the Borrower and Höegh LNG is the guarantor for the Lampung facility. The primary financial covenants under the Lampung facility are as follows: ● Borrower must maintain a minimum debt service coverage ratio of 1.10 to 1.00 for the preceding nine-month period tested on each quarterly repayment date; ● Guarantor’s book equity must be greater than the higher of (i) $200 million and (ii) 25% of total assets; and ● Guarantor’s free liquid assets (cash and cash equivalents or available draws on credit facilities) must be greater than $20 million. As of June 30, 2020, the borrower and the guarantor were in compliance with the financial covenants under the Lampung facility. The Lampung facility requires cash reserves that are held for specifically designated uses, including working capital, operations and maintenance and debt service reserves. Distributions are subject to “waterfall” provisions that allocate revenues to specified priorities of use (such as operating expenses, scheduled debt service, targeted debt service reserves and any other reserves) with the remaining cash being distributable only on certain dates and subject to satisfaction of certain conditions, including meeting a 1.20 historical debt service coverage ratio, no default or event of default then continuing or resulting from such distribution and the guarantor not being in breach of the financial covenants applicable to it. The Lampung facility limits, among other things, the ability of the Borrower to change its business, sell or grant liens on its property including the PGN FSRU Lampung $385 million facility Höegh LNG Partners LP is the borrower (the “Borrower”) for the senior secured term loan and revolving credit facility (the “$385 million facility”). Hoegh LNG Cyprus Limited, which owns the Höegh Gallant Höegh Grace The primary financial covenants under the $385 million facility are as follows: ● The Partnership must maintain o Consolidated book equity (excluding hedge reserves and mark to market value of derivatives) equal to the greater of ◾ 25% of total assets, and ◾ $150 million o Consolidated working capital (current assets, excluding intercompany receivables and marked-to-market value of any financial derivative, less current liabilities, excluding intercompany payables, marked-to-market value of any financial derivative and the current portion of long-term debt) shall at all times be greater than zero o Minimum liquidity (cash and cash equivalents and available draws under a bank credit facility for a term of more than 12 months) equal to the greater of ◾ $15 million, and ◾ $2.5 million multiplied by the number of vessels owned or leased by the Partnership (prorate for partial ownership), subject to a cap of $20 million ● The Vessel Owners must maintain a ratio of combined EBITDA to debt service (principal repayments, guarantee commission, commitment fees and interest expense) for the preceding twelve months of a minimum of 115% In addition, a security maintenance ratio based on the aggregate market value of the Höegh Gallant Höegh Grace As of June 30, 2020, the borrower and the Vessel Owners were in compliance with the financial covenants. Under the $385 million facility, cash accounts are freely available for the use of the Borrower and the guarantors, unless there is an event of default. Cash can be distributed as dividends or to service loans of owners and affiliates provided that after the distribution the Borrower and the guarantors would remain in compliance with the financial covenants. The $385 million facility limits, among other things, the ability of the Borrower and the guarantors to change their business, grant liens on the Höegh Gallant Höegh Grace pari passu |
Accrued liabilities and payable
Accrued liabilities and payables | 6 Months Ended |
Jun. 30, 2020 | |
Accrued liabilities and payables | |
Accrued liabilities and payables | 10. Accrued liabilities and payables As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Accrued administrative and operating expenses $ 3,143 $ 3,314 Accrued interest 2,651 2,850 Refund liabilities 778 125 Accrued property tax 489 3,033 Current tax payable 418 818 Lease liability 45 75 Other accruals and payables 232 949 Total accrued liabilities and other payables $ 7,756 $ 11,164 |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related party transactions | |
Related Party Transactions | 11. Related party transactions Income (expenses) from related parties As described in Related party agreements PGN FSRU Lampung Höegh Gallant Höegh Grace Höegh Gallant Related party amounts included in the consolidated statements of income for the three and six months ended June 30, 2020 and 2019 or in the consolidated balance sheets as of June 30, 2020 and December 31, 2019 are as follows: Three months ended Six months ended Statement of income: June 30, June 30, (in thousands of U.S. dollars) 2020 2019 2020 2019 Revenues Time charter revenue Höegh Gallant $ 11,112 $ 10,131 $ 23,415 $ 22,310 Operating expenses Vessel operating expenses (2) (5,192) (5,417) (9,531) (10,706) Hours, travel expense and overhead (3) and Board of Directors’ fees (4) (982) (773) (2,129) (2,131) Financial (income) expense Interest income from joint ventures (5) 79 73 157 143 Interest expense to Höegh LNG (6) (57) (686) (196) (1,354) Total $ 4,960 $ 3,328 $ 11,716 $ 8,262 As of Balance sheet June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Equity Contributions from Höegh LNG (7) $ 8,600 $ — Repayment of indemnification received from Höegh LNG (8) — (64) Issuance of units for Board of Directors’ fees (4) — 194 Other and contribution from owner (9) 225 485 Total $ 8,825 $ 615 1) Time charter revenue Höegh Gallant: Subsidiaries of Höegh LNG have leased the Höegh Gallant . 2) Vessel operating expenses: Subsidiaries of Höegh LNG provide ship management of vessels, including crews and the provision of all other services and supplies. 3) Hours, travel expenses and overhead: Subsidiaries of Höegh LNG provide management, accounting, bookkeeping and administrative support under administrative service agreements. These services are charged based upon the actual hours incurred for each individual as registered in the time-write system based on a rate which includes a provision for overhead and any associated travel expenses. 4) Board of Directors’ fees: Part of the board compensation is awarded as common units of the Partnership. Effective June 4, 2019 a total of 11,180 common units were awarded to non-employee directors under the Höegh LNG Partners LP Long Term Incentive Plan as compensation of $194 for part of the directors' fees. The awards were recorded as administrative expense and as an issuance of common units. Common units are recorded when issued. 5) Interest income from joint ventures: The Partnership and its joint venture partners have provided subordinated financing to the joint ventures as shareholder loans. Interest income for the Partnership’s shareholder loans to the joint ventures is recorded as interest income. 6) Interest expense to Höegh LNG and affiliates: Höegh LNG and its affiliates provided an $85 million revolving credit facility for general partnership purposes. The Partnership incurred interest expense on the drawn balance. 7) Non-cash contribution from Höegh LNG: As described under "Indemnifications" below, on April 8, 2020, the Partnership was indemnified by Höegh LNG for its share of the joint ventures boil-off settlement payments by a reduction of $8.6 million on its outstanding balance on the $85 million revolving credit facility from Höegh LNG. This non-cash settlement from Höegh LNG was recorded as an increase in equity. 8) Cash contribution from/distribution to Höegh LNG: As described under “Indemnifications” below, Höegh LNG made indemnification payments to the Partnership or received refunds of indemnification from the Partnership which were recorded as contributions or distributions to equity. 9) Other and contribution from owner: Höegh LNG granted share-based incentives to certain key employees whose services benefit the Partnership. Related expenses are recorded as administrative expenses and as a contribution from owner since the Partnership is not invoiced for this employee benefit. Effective March 26, 2020, March 21, 2019 and September 14, 2018, the Partnership granted or extended the terms for 8,100 , 10,917 and 28,018 phantom units , respectively, to the Chief Executive Officer and Chief Financial Officer of the Partnership. Related expenses are recorded over the vesting period as an administrative expense and as an increase in equity. On August 6, 2020, the Partnership announced that the Partnership's Chief Executive Officer and Chief Financial Officer resigned which will result in 15,378 of the phantom units not vesting. The remaining unvested phantom units will be 9,723 which will vest in 2020 and 2021. Dividends to Höegh LNG: Receivables and payables from related parties Amounts due from affiliates As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Amounts due from affiliates $ 5,701 $ 4,296 The amount due from affiliates relates to a receivable for time charter hire from subsidiaries of Höegh LNG for the Höegh Gallant Amounts due to owners and affiliates As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Amounts due to owners and affiliates $ 3,627 $ 2,513 As of June 30, 2020, and December 31, 2019, amounts due to owners and affiliates principally relate to trade payables for services provided by subsidiaries of Höegh LNG. Revolving credit facility due to owners and affiliates As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Revolving credit facility $ 4,749 $ 8,792 In August 2014, upon the closing of the IPO, the Partnership entered into an $85 million revolving credit facility with Höegh LNG, to be used to fund acquisitions and working capital requirements of the Partnership. The credit facility is unsecured and was repayable on January 1, 2020. On May 28, 2019, the repayment date on the $85 million revolving credit facility was extended to January 1, 2023 and the terms amended for the interest rate to be LIBOR plus a margin of 1.4% in 2019, 3.0% in 2020 and 4.0% thereafter. On April 8, 2020, the Partnership was indemnified by Höegh LNG for its share of the joint ventures boil-off settlement payments by a reduction of $8.6 million on its outstanding balance on the revolving credit facility. On April 24, 2020, the Partnership drew $4.5 million on the revolving credit facility. Related party agreements In connection with the IPO the Partnership entered into several agreements including: (i) An $85 million revolving credit facility with Höegh LNG, which was undrawn at the closing of the IPO; (ii) An omnibus agreement with Höegh LNG, the general partner, and Höegh LNG Partners Operating LLC (the “operating company”) governing, among other things: a. To what extent the Partnership and Höegh LNG may compete with each other; b. The Partnership’s rights of first offer on certain FSRUs and LNG carriers operating under charters of five or more years; and c. Höegh LNG’s provision of certain indemnities to the Partnership. (iii) An administrative services agreement with Hoegh LNG Services Ltd., UK (“Höegh UK”), pursuant to which Höegh UK provided certain administrative services to the Partnership. This agreement expired during 2019; and (iv) Höegh UK entered into administrative services agreements with Höegh LNG AS (“Höegh Norway”) and Leif Höegh (U.K.) Limited, pursuant to which Höegh Norway and Leif Höegh (U.K.) Limited provided Höegh UK certain administrative services. Additionally, the operating company entered into an administrative services agreement with Leif Höegh (U.K.) Limited to allow Leif Höegh (U.K.) Limited to provide services directly to the operating company. Each of these agreements expired , or were terminated by mutual agreement, during 2019. Existing agreements remained in place following the IPO for provision of certain services to the Partnership's vessel owning joint ventures or entity, of which the material agreements are as follows: ● The joint ventures are parties to ship management agreements with Höegh LNG Fleet Management AS (“Höegh LNG Management”) pursuant to which Höegh LNG Management provides the joint ventures with technical and maritime management and crewing of the Neptune and the Cape Ann , and Höegh Norway is a party to a sub-technical support agreement with Höegh LNG Management pursuant to which Höegh LNG Management provides technical support services with respect to the PGN FSRU Lampung ; and ● The joint ventures are parties to commercial and administration management agreements with Höegh Norway, and PT Hoegh LNG Lampung is a party to a technical information and services agreement with Höegh Norway. Subsequent to the IPO, the Partnership has acquired vessel owning entities. Existing agreements remained in place following the acquisition for the time charter of the Höegh Gallant ● Hoegh LNG Cyprus Limited acting through its Egyptian Branch had a Lease and Maintenance Agreement (the “time charter”) with EgyptCo for the lease and maintenance of the Höegh Gallant and the provision of crew and certain ship management services for a combined daily hire rate. The time charter started in April 2015 and expired in April 2020; ● Hoegh LNG Cyprus Limited is party to a ship management agreement with Höegh LNG Management pursuant to which Höegh LNG Management provides the technical management of the Höegh Gallant , and Hoegh LNG Maritime Management Pte. Ltd. (“Höegh Maritime Management”) is a party to a secondment agreement, as amended, with Hoegh LNG Cyprus Limited pursuant to which Höegh Maritime Management provides qualified crew for the Höegh Gallant ; and ● Hoegh LNG Cyprus Limited is party to a management agreement with Höegh Norway, pursuant to which Höegh Norway provides administrative, commercial and technical management services, each as instructed from time to time by Hoegh LNG Cyprus Limited. Existing agreements remained in place for the time charter of the Höegh Grace ● a ship management agreement with Höegh LNG Management pursuant to which Höegh LNG Management provides technical and maritime management services; ● a manning agreement with Höegh Fleet Services Philippines Inc. to recruit and engage crew for the vessel; ● a technical services agreement with Höegh Norway to provide technical services for the vessel; ● a management consulting agreement with Höegh Norway to provide support related to certain management activities; ● a crew recruitment consulting services agreement with Höegh Maritime Management to provide professional consulting services in connection with recruitment of crew and other employees; ● an agreement for provision of professional payment services with Höegh Maritime Management to provide services in connection with the payment of monthly salaries to the crew and employees working on the vessel; and ● a spare parts procurement and insurance services agreement with Höegh LNG Management to arrange for the supply of spare parts and the insurance coverage for the vessel. In December 2019, the Partnership and the operating company entered an administrative services agreement with Höegh Norway, pursuant to which Höegh Norway provides certain administrative services to the Partnership. On April 30, 2020, the Partnership entered a Lease and Maintenance Agreement with a subsidiary of Höegh LNG for the time charter of the Höegh Gallant Indemnifications Environmental indemnifications: Under the omnibus agreement, Höegh LNG agreed to indemnify the Partnership until August 12, 2019 against certain environmental and toxic tort liabilities with respect to the assets contributed or sold to the Partnership to the extent arising prior to the time they were contributed or sold to the Partnership. No indemnification claims were filed for environmental liabilities under the agreement prior to its expiration. Other indemnifications: Pursuant to a letter agreement dated August 12, 2015, Höegh LNG confirmed that the indemnification provisions of the omnibus agreement include indemnification for all non-budgeted, non-creditable Indonesian value added taxes and non-budgeted Indonesian withholding taxes, including any related impact on cash flow from PT Hoegh LNG Lampung and interest and penalties associated with any non-timely Indonesian tax filings related to the ownership or operation of the PGN FSRU Lampung PGN FSRU Lampung PGN FSRU Lampung No indemnification claims were filed or received for the three or six months ended June 30, 2020 and 2019. In the first quarter of 2019, insurance proceeds of approximately $0.06 million were received related to repairs under the warranty for the Mooring. The Partnership had been indemnified by Höegh LNG for all warranty provisions at the time the costs were incurred, and the Partnership refunded the amount recovered by insurance to Höegh LNG in the second quarter of 2019. Refer to note 14. Under the contribution, purchase and sale agreement entered into with respect to the purchase of the Höegh Gallant , 1. losses from breach of warranty; 2. losses related to certain environmental and tax liabilities attributable to the operation of the Höegh Gallant prior to the closing date; 3. all capital gains tax or other export duty incurred in connection with the transfer of the Höegh Gallant outside of Höegh LNG Cyprus Limited’s permanent establishment in a Public Free Zone in Egypt; 4. any recurring non-budgeted costs owed to Höegh LNG Management with respect to payroll taxes; 5. any non-budgeted losses suffered or incurred in connection with the commencement of services under the time charter with EgyptCo or EgyptCo’s time charter with EGAS; and 6. liabilities under the Gallant/Grace facility not attributable to the Höegh Gallant. No indemnification claims were filed or received for the three or six months ended June 30, 2020 and 2019. Under the contribution, purchase and sale agreements entered into with respect to the acquisitions of the 51% and 49% ownership interests in the Höegh Grace 1. losses from breach of warranty; 2. losses related to certain environmental liabilities, damages or repair costs and tax liabilities attributable to the operation of the Höegh Grace prior to the closing date; 3. any recurring non-budgeted costs owed to tax authorities with respect to payroll taxes, taxes related to social security payments, corporate income taxes (including income tax for equality and surcharge on income tax for equality), withholding tax, port associations, local Cartagena tax, and financial transaction tax, including any penalties associated with taxes to the extent not reimbursed by the charterer; and 4. any non-budgeted losses suffered or incurred in connection with commencement of services under the Höegh Grace charter with SPEC. No indemnification claims were filed or received for the three or six months ended June 30, 2020 and 2019. On September 27, 2017, the Partnership entered into an indemnification agreement with Höegh LNG with respect to the boil-off claims under the Neptune Cape Ann Neptune Cape Ann |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments | |
Financial Instruments | 12. Financial Instruments Fair value measurements The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents and restricted cash Amounts due from (to) owners and affiliates Derivative instruments – Advances (shareholder loans) to joint ventures – Lampung and $385 million facilities – Revolving credit due to owners and affiliates – The fair value estimates are categorized by a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the financial instruments that are not accounted for at a fair value on a recurring basis. Trade payables and receivables for which the estimated fair values are equivalent to carrying values are not specified below. As of As of June 30, 2020 December 31, 2019 Carrying Fair Carrying Fair amount value amount Value Asset Asset Asset Asset (in thousands of U.S. dollars) Level (Liability) (Liability) (Liability) (Liability) Recurring: Cash and cash equivalents 1 $ 25,623 25,623 39,126 $ 39,126 Restricted cash 1 18,390 18,390 20,693 20,693 Derivative instruments 2 (30,860) (30,860) (14,935) (14,935) Other: Amounts due from affiliate 2 5,701 5,701 4,296 4,296 Advances (shareholder loans) to joint ventures 2 3,988 4,121 3,831 4,029 Current amounts due to owners and affiliates 2 (3,627) (3,627) (2,513) (2,513) Lampung facility 2 (103,858) (109,270) (112,713) (119,598) $385 million facility 2 (331,943) (340,686) (344,248) (352,219) Revolving credit facility due to owners & affiliates 2 $ (4,749) (4,735) (8,792) $ (8,717) |
Risk management, derivative ins
Risk management, derivative instruments and concentrations of risk | 6 Months Ended |
Jun. 30, 2020 | |
Risk management, derivative instruments and concentrations of risk | |
Risk management, derivative instruments and concentrations of risk | 13. Risk management, derivative instruments and concentrations of risk Derivative instruments can be used in accordance with the overall risk management policy. Interest rate risk, derivative instruments and cash flow hedges Cash flow hedging strategy The Partnership is exposed to fluctuations in cash flows from floating interest rate exposure on its long-term debt used principally to finance its vessels. Interest rate swaps are used for the management of the floating interest rate risk exposure. The interest rate swaps have the effect of converting a portion of the outstanding debt from a floating to a fixed rate over the life of the interest rate swaps. Interest rate swaps exchange a receipt of floating interest for a payment of fixed interest which reduces the exposure to interest rate variability on the Partnership's outstanding floating-rate debt over the life of the interest rate swaps. As of June 30, 2020 and 2019, there were interest rate swap agreements related to the Lampung facility ("Lampung interest rate swaps") and the commercial tranche of the $385 million facility ("$385 million interest rate swaps") floating rate debt that are designated as cash flow hedges for accounting purposes. As of June 30, 2020, the following interest rate swap agreements were outstanding: Fair value Interest carrying Fixed Rate Notional amount Interest (in thousands of U.S. dollars) Index amount liability Term Rate(1) LIBOR-based debt Lampung interest rate swaps (2) LIBOR $ 107,491 (7,011) Sep 2026 2.800 % $385 million facility swaps (2) LIBOR $ 59,130 (6,369) Jan 2026 2.941 % $385 million facility swaps (2) LIBOR $ 59,130 (5,961) Oct 2025 2.838 % $385 million facility swaps (2) LIBOR $ 59,130 (5,864) Jan 2026 2.735 % $385 million facility swaps (2) LIBOR $ 59,130 (5,655) Jan 2026 2.650 % 1) Excludes the margins paid on the floating-rate debt. 2) All interest rate swaps are U.S. dollar denominated and principal amount reduces quarterly from the effective date of the interest rate swaps. The Borrower under the Lampung facility entered five forward starting swap agreements with identical terms for a total notional amount of $237.1 million with an effective date of March 17, 2014. The swaps amortize over 12 years to match the outstanding balance of the Lampung facility and exchange 3-month USD LIBOR variable interest payments for fixed rate payments at 2.8%. The interest rate swaps were designated for accounting purposes as cash flow hedges of the variable interest payments on the Lampung facility. As of December 29, 2014, a prepayment of $7.9 million on the Lampung facility occurred which resulted in an amendment of the original interest rate swaps and the hedge was de-designated for accounting purposes. The other terms of the amended interest rate swaps did not change but the nominal amount of the interest rate swaps was reduced to match the outstanding debt. The amended interest rate swaps were re-designated as a cash flow hedge for accounting purposes. As of December 31, 2018, the Partnership had entered into forward starting interest rate swaps with a nominal amount of $130.0 million to hedge part of the interest rate risk on the floating element of the interest rate for the commercial tranches of the $385 million facility. The Partnership makes fixed payments of 2.941% and 2.838%, based on a nominal amount of $65.0 million for each , in exchange for floating payments. The interest rate swaps were designated for accounting purposes as cash flow hedges of the variable interest payments for $130.0 million of the commercial tranches of the $385 million facility which was expected to be drawn and was drawn on January 31, 2019. In February 2019, the Partnership entered into interest rate swaps related to the $385 million facility with a nominal amount of $127.7 million for which the Partnership makes fixed payments of 2.735% and 2.650% based on nominal amount of $63.8 million for each . The interest rate swaps were designated for accounting purposes as cash flow hedges of the variable interest payments for $127.7 million of the commercial tranches of the $385 million facility. The swaps amortize over approximately 7 years to match the outstanding balances of the commercial tranches of the $385 million facility until the maturity dates. The export credit tranches have a fixed interest rate and, therefore, no variability in cash flows as a result of changes in interest rates. The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the consolidated balance sheets. All derivatives are designated as cash flow hedging instruments. Fair value of derivative instruments Current Long-term Current Long-term assets: assets: liabilities: liabilities: Derivative Derivative derivative derivative (in thousands of U.S. dollars) instruments Instruments instruments instruments As of June 30, 2020 Interest rate swaps $ — $ — $ (7,208) $ (23,652) As of December, 2019 Interest rate swaps $ — $ — $ (2,907) $ (12,028) The following effects of cash flow hedges relating to interest rate swaps are included in interest expense and income tax expense in the consolidated statements of income which are the same lines as the earnings effects of the hedged item for the three and six months ended June 30, 2020 and 2019. Effect of cash flow hedge accounting on the consolidated statement of income Three months ended Six months ended June 30, 2020 June 30, 2020 Income Interest tax Interest Income tax (in thousands of U.S. dollars) expense benefit expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (1,022) $ — $ (1,810) $ — Amortization of amount excluded from hedge effectiveness 235 — 400 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (256) 53 (512) 129 Total gains (losses) on derivative instruments $ (1,043) $ 53 $ (1,922) $ 129 Three months ended Six months ended June 30, 2019 June 30, 2019 Interest Income tax Interest Income tax (in thousands of U.S. dollars) expense benefit expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (113) $ — $ (112) $ — Amortization of amount excluded from hedge effectiveness 224 — 468 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (248) 54 (475) 117 Settlement of cash flow hedge — — 199 — Total gains (losses) on derivative instruments $ (137) $ 54 $ 80 $ 117 The settlement of cash flow hedge related to the interest rate swaps for Gallant/Grace facility. The Gallant/Grace interest rate swaps were terminated when the facility was extinguished on January 31, 2019. Due to the termination, the counterparties of the Gallant/Grace interest rate swaps paid settlement amounts resulting in a gain on the settlement of the cash flow hedge. The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income, changes in accumulated other comprehensive income (“OCI”) and on earnings is as follows as of and for the period ended June 30, 2020. Effect of cash flow hedge accounting on accumulated other comprehensive income (OCI) and earnings Cash Flow Hedge Accumulated other comprehensive income Earnings Before tax Tax gains benefit Net of Interest Tax (in thousands of U.S. dollars) (losses) (expense) tax expense benefit Balance as of December 31, 2019 $ (18,119) 176 $ (17,943) Effective portion of unrealized loss on cash flow hedge (18,136) — (18,136) Reclassification from accumulated other comprehensive income included in hedge effectiveness 1,810 — 1,810 (1,810) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 512 (129) 383 (512) 129 Other comprehensive income for period (15,814) (129) (15,943) Balance as of June 30, 2020 $ (33,933) 47 $ (33,886) Gain (loss) reclassified to earnings $ (2,322) $ 129 The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income, changes in accumulated other comprehensive income (“OCI”) and on earnings is as follows as of and for the period ended June 30, 2019. Effect of cash flow hedge accounting on accumulated other comprehensive income (OCI) and earnings Cash Flow Hedge Accumulated other comprehensive income Earnings Before tax Tax gains benefit Net of Interest Tax (in thousands of U.S. dollars) (losses) (expense) tax expense benefit Balance as of December 31, 2018 $ (5,902) 565 $ (5,337) Initial value of interest rate swap to be recognized in earnings on amortization approach (625) — (625) Effective portion of unrealized loss on cash flow hedge (12,896) — (12,896) Reclassification from accumulated other comprehensive income included in hedge effectiveness 112 — 112 (112) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 475 (117) 358 (475) 117 Other comprehensive income for period (12,934) (117) (13,051) Balance as of June 30, 2019 $ (18,836) 448 $ (18,388) Gain (loss) reclassified to earnings $ (587) $ 117 Other comprehensive income for the period from July 1, 2019 to December 31 2019 717 (272) 445 Balance as of December 31, 2019 $ (18,119) 176 $ (17,943) As of June 30, 2020, the estimated amounts to be reclassified from accumulated other comprehensive income to earnings during the next twelve months is $8.2 million for amortization of accumulated other comprehensive income. Foreign exchange risk All financing, interest expenses from financing and most of the Partnership’s revenue and expenditures for vessel improvements are denominated in U.S. dollars. Certain operating expenses can be denominated in currencies other than U.S. dollars. For the six months ended June 30, 2020 and the year ended December 31, 2019, no derivative instruments have been used to manage foreign exchange risk. Credit risk Credit risk is the exposure to credit loss in the event of non-performance by the counterparties related to cash and cash equivalents, restricted cash, trade receivables , net investment in financing lease and interest rate swap agreements. In order to minimize counterparty risk, bank relationships are established with counterparties with acceptable credit ratings at the time of the transactions. Credit risk related to receivables is limited by performing ongoing credit evaluations of the customers’ financial condition. PGN guarantees PGN LNG’s obligations under the PGN FSRU Lampung Höegh Gallant Concentrations of risk Financial instruments, which potentially subject the Partnership to significant concentrations of credit risk, consist principally of cash and cash equivalents, restricted cash, trade receivables and derivative contracts (interest rate swaps). The maximum exposure to loss due to credit risk is the book value at the balance sheet date. The Partnership does not have a policy of requiring collateral or security. Cash and cash equivalents and restricted cash are placed with qualified financial institutions. Periodic evaluations are performed of the relative credit standing of those financial institutions. In addition, exposure is limited by diversifying among counterparties. There are three charterers so there is a concentration of risk related to trade receivables. While the maximum exposure to loss due to credit risk is the book value of trade receivables at the balance sheet date, should the time charters for the PGN FSRU Lampung Höegh Grace Höegh Gallant PGN FSRU Lampung , |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and contingencies | |
Commitments and contingencies | 14. Commitments and contingencies Contractual commitments As of June 30, 2020, the Partnership has no material commitments for capital expenditures. Claims and Contingencies Joint ventures boil-off settlement Under the Neptune Cape Ann In February 2020, each of the joint ventures and the charterer reached a commercial settlement addressing all the past and future claims related to boil-off with respect to the Neptune Cape Ann The Partnership will be indemnified by Höegh LNG for its share of the cash impact of the settlement, the arbitration costs and legal expenses, the technical modifications of the vessels and any prospective boil-off claims or other direct impacts of the settlement agreement. On April 7, 2020, the joint ventures paid the charterer a total of $17.2 million as part of the settlement of the boil-off claim. The Partnership’s 50% share was $8.6 million. The remaining amount of the settlement of $6.5 million is due no later than December 15, 2020. On April 8, 2020, the Partnership was indemnified by Höegh LNG for its share of the joint ventures boil-off settlement payments by a reduction of $8.6 million on its outstanding balance on the revolving credit facility due to owners and affiliates. Indonesian corporate income tax Based upon the Partnership’s experience in Indonesia, tax regulations, guidance and interpretation in Indonesia may not always be clear and may be subject to alternative interpretations or changes in interpretations over time. The Partnership’s Indonesian subsidiary is subject to examination by the Indonesian tax authorities for corporate income tax for up to five years following the completion of a fiscal year. As a result, it is likely that there will be an examination by the Indonesian tax authorities for the tax return for 2015 during 2020. The Indonesian subsidiary requested a refund for overpayment of corporate income taxes for 2019 when it filed the 2019 tax return which will result in an automatic examination of the tax return for the year ended December 31, 2019. The examinations may lead to ordinary course adjustments or proposed adjustments to the subsidiary’s income taxes with respect to years under examination. Future examinations may or may not result in changes to the Partnership’s provisions on tax filings from 2015 through 2019. As of June 30, 2020, and December 31, 2019, the unrecognized tax benefits for uncertain tax positions were $2.5 million and $2.3 million, respectively. Indonesian property tax The Partnership’s Indonesian subsidiary was assessed for Land and Building tax (“property tax”) and penalties of $3.0 million by the Indonesian authorities for the period from 2015 through 2019. The assessment was due to the issuance of the Indonesian Minister of Finance’s Decree No. 186/PMK.03/2019 (“PMK 186/2019”) which defines FSRUs as a “Building” subject to the tax. The Partnership’s Indonesian subsidiary has appealed the assessment. Depending on the level of appeal pursued, the appeal process could take a number of years to conclude. There can be no assurance of the result of the appeal or whether the Indonesian subsidiary will prevail. As a result, the property tax and penalties were expensed as a component of vessel operating expenses during the fourth quarter of 2019. Until the appeal is concluded, the Indonesian subsidiary will be required to pay an annual property tax expected to be approximately $0.6 million. PGN LNG claims and refunds The Partnership was indemnified by Höegh LNG for certain non-budgeted expenses (including warranty costs associated with repairs of the Mooring). No indemnification claims were filed or received for the three and six months ended June 30, 2020 and 2019. In the first quarter of 2019, insurance proceeds of approximately $0.06 million were received related to repairs under the warranty for the Mooring. The Partnership had been indemnified by Höegh LNG for all warranty provisions at the time the costs were incurred, and the Partnership refunded the amount recovered by insurance to Höegh LNG in the second quarter of 2019. Refer to note 11. |
Supplemental cash flow informat
Supplemental cash flow information | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental cash flow information | |
Supplemental cash flow information | 15 . Supplemental cash flow information Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2020 2019 2020 2019 Supplemental disclosure of non-cash investing activities Non-cash expenditures for vessel and other equipment $ — (43) — $ (43) Supplemental disclosure of non-cash financing activities Non-cash indemnifications received $ 8,600 — 8,600 $ — Refer to note 11 for non-cash indemnification received information. |
Issuance of common units and Se
Issuance of common units and Series A Preferred Units | 6 Months Ended |
Jun. 30, 2020 | |
Issuance of common units and Series A Preferred Units | |
Issuance of common units and Series A Preferred Units | 16. Issuance of common units and Series A Preferred Units On January 26, 2018, the Partnership entered into sales agreement with B. Riley FBR Inc. (the "Agent"). Under the terms of the sales agreement, the Partnership could offer and sell up to $120 million aggregate offering amount of common units and Series A preferred units through the Agent, acting as agent for the Partnership (the "Prior ATM Program"). On October 18, 2019, the Partnership entered into a sales agreement with the Agent for a new ATM program and terminated the Prior ATM Program. Under the terms of the new sales agreement, the Partnership may offer and sell up to $120 million aggregate offering amount of common units and Series A preferred units, from time to time, through the Agent, acting as an agent for the Partnership. Sales of such units may be made in negotiated transactions that are deemed to be “at the market” offerings, including sales made directly on the New York Stock Exchange or through a market maker other than on an exchange. For the period January 1, 2020 to March 31, 2020, the Partnership sold 82,409 Series A preferred units under the new ATM program at an average gross sales price of $26.25 per unit and received net proceeds, after sales commissions, of $2.1 million. The Partnership paid an aggregate of $0.04 million in sales commissions to the Agent in the period from January 1, 2020 to March 31, 2020 in connection with such sales. The Partnership did not From the commencement of the Prior ATM program in January 2018 through June 30, 2020, the Partnership sold 2,107,999 Series A preferred units and 306,266 common units and received net proceeds of $53.9 million and $5.6 million, respectively. The compensation paid to the Agent for such sales was $1.0 million. Six months ended June 30, 2020 Series A Preferred (in thousands of U.S. dollars) Common units Units Total Gross proceeds for units issued $ — 2,163 $ 2,163 Less: Commissions — (38) (38) Net proceeds for units issued $ — 2,125 $ 2,125 The Partnership did not issue any Series A preferred units or common units for the period ended March 31, 2019. For the period April 1, 2019 to June 30, 2019, the Partnership sold 51,267 Series A preferred units under the Prior ATM program at an average gross sales price of $26.14 per unit and received net proceeds, after sales commissions, of $1.3 million. For the period from April 1, 2019 to June 30, 2019, the Partnership sold 53,160 common units under the Prior ATM program at an average sales price of $19.60 per unit and received net proceeds, after sales commissions, of $1.0 million. The Partnership paid an aggregate of $0.04 million in sales commissions to the Agent in connection with such sales in the period from April 1, 2019 to June 30, 2019. |
Common, subordinated and prefer
Common, subordinated and preferred units | 6 Months Ended |
Jun. 30, 2020 | |
Common, subordinated and preferred units | |
Common, subordinated and preferred units | 17. Common, subordinated and preferred units The following table shows the movements in the number of common units, subordinated units and preferred units from December 31, 2018 until June 30, 2020: Common Common 8.75% Series A Units Units Subordinated Preferred (in units) Public Höegh LNG Units Units December 31, 2018 17,944,701 2,101,438 13,156,060 6,129,070 June 4, 2019; Awards to non-employee directors as compensation for directors’ fees 8,944 — — — July 16, 2019; Awards to non-employee directors as compensation for directors’ fees 2,236 — — — August 16, 2019; Subordinated units converted to common units — 13,156,060 (13,156,060) — Phantom units issued to CEO/CFO during 2019 19,745 — — — ATM program (from January 1, 2019 to December 31, 2019) 53,160 — — 496,520 December 31, 2019 18,028,786 15,257,498 — 6,625,590 ATM program (from January 1, 2020 to June 30, 2020) — — — 82,409 June 30, 2020 18,028,786 15,257,498 — 6,707,999 The subordination period, as defined in the Second Amended and Restated Agreement of Limited Partnership of Höegh LNG Partners LP, for the subordinated units ended on August 16, 2019. All of the subordinated units, which were owned by Höegh LNG, converted to common units on a one-for-one basis. As of June 30, 2020, and December 31, 2019, Höegh LNG owned 15,257,498 common units. Refer to note 18 for information on distributions to common unitholders. The Series A preferred units represent perpetual equity interests in the Partnership and, unlike the Partnership’s debt, do not give rise to a claim for payment of a principal amount at a particular date. The Series A preferred units rank senior to the Partnership’s common units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up but junior to all the Partnership’s debt and other liabilities. The Series A preferred units have a liquidation preference of $25.00 per unit. At any time on or after October 5, 2022, the Partnership may redeem, in whole or in part, the Series A preferred units at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of redemption. The distribution rate on the Series A preferred units is 8.75% per annum of the $25.00 per unit value (equivalent to $2.1875 per annum per unit). The distributions are cumulative and recorded when declared. However, since the Series A preferred units rank senior to the Partnership’s common units, the portion of net income, equivalent to the Series A preferred units paid and undeclared distributions for that period, is reflected as Preferred unitholders’ interest in net income on the consolidated statement of income. Distributions are payable quarterly, when, and if declared by the Partnership’s board of directors out of legally available funds for such purpose. Holders of the Series A preferred units generally have no voting rights. However, if and whenever distributions payable on the Series A preferred units are in arrears for six or more quarterly periods, whether or not consecutive, holders of Series A preferred units will be entitled to replace one of the members of the Partnership's board of directors appointed by the general partner with a person nominated by such holders. |
Earning per unit and cash distr
Earning per unit and cash distributions | 6 Months Ended |
Jun. 30, 2020 | |
Earning per unit and cash distributions | |
Earning per unit and cash distributions | 18. Earning per unit and cash distributions The calculation of basic and diluted earnings per unit are presented below: Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars, except per unit numbers) 2020 2019 2020 2019 Net income $ 19,681 $ 6,156 $ 25,155 $ 20,291 Adjustment for: Preferred unitholders’ interest in net income 3,668 3,378 7,337 6,742 Limited partners’ interest in net income 16,013 2,778 17,818 13,549 Less: Dividends paid or to be paid (1) (15,045) (15,036) (30,091) (30,068) Under (over) distributed earnings 968 (12,258) (12,273) (16,519) Under (over) distributed earnings attributable to: Common units public 524 (6,636) (6,647) (8,942) Common units Höegh LNG 444 (774) (5,626) (1,044) Subordinated units Höegh LNG (4) — (4,848) — (6,533) $ 968 $ (12,258) $ (12,273) $ (16,519) Basic weighted average units outstanding (in thousands) Common units public 18,029 17,978 18,029 17,962 Common units Höegh LNG 15,257 2,101 15,257 2,101 Subordinated units Höegh LNG (4) — 13,156 — 13,156 Diluted weighted average units outstanding (in thousands) Common units public 18,039 17,996 18,039 17,976 Common units Höegh LNG 15,257 2,101 15,257 2,101 Subordinated units Höegh LNG (4) — 13,156 — 13,156 Earnings per unit (2): Common unit public (basic and diluted) $ 0.47 $ 0.07 $ 0.51 $ 0.38 Common unit Höegh LNG (basic and diluted) (3) $ 0.50 $ 0.10 $ 0.56 $ 0.44 Subordinated unit Höegh LNG (basic and diluted) (3) (4) $ — $ 0.10 $ — $ 0.44 (1) Includes all distributions paid or to be paid in relationship to the period, regardless of whether the declaration and payment dates were prior to the end of the period and is based the number of units outstanding at the period end. (2) Effective March 26, 2020, granted 8,100 phantom units to the CEO/CFO of the Partnership, one-third of such phantom units vest as of November 30, 2021, 2022 and 2023, respectively. Effective March 21, 2019, granted 10,917 phantom units to the CEO/CFO of the Partnership. One-third of such phantom units vest as of November 30, 2019, 2020 and 2021, respectively. Effective March 23, 2018, the Partnership granted 14,584 phantom units to the then-serving CEO/CFO of the Partnership. One-third of such phantom units vest as of November 30, 2019, 2020 and 2021, respectively. On September 14, 2018, the plan was amended to extend the terms and conditions of unvested units for the grants effective March 23, 2017 and June 3, 2016 of the then-serving CEO/CFO that resigned as CEO/CFO of the Partnership. The phantom units impact the diluted weighted average units outstanding. As a result of the resignation of the CEO/CFO of the Partnership in August 2020 (refer to note 19), a total of 15,378 of the unvested phantom units will terminate which will impact the diluted weighted average units outstanding for the third quarter of 2020. (3) Includes total amounts attributable to incentive distributions rights of $399 and $798 for the three and six months ended June 30, 2020, respectively. For the three and six months ended June 30, 2020, the full amount was attributable to common units owned by Höegh LNG. For the three and six months ended June 30, 2019, respectively, $55 and $110 were attributed to common units owned by Höegh LNG. Total amounts attributable to incentive distributions rights of $344 and $688 for the three and six months ended June 30, 2019, respectively, were attributed to subordinated units owned by Höegh LNG. (4) On August 16, 2019, all subordinated units converted into common units on a one-for-one basis. Earnings per unit is calculated by dividing net income by the weighted average number of common and subordinated units outstanding during the applicable period. The common unitholders’ interest in net income is calculated as if all net income were distributed according to terms of the Partnership’s Second Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”), regardless of whether those earnings would or could be distributed. The Partnership Agreement does not provide for the distribution of net income; rather, it provides for the distribution of available cash. Available cash, a contractual defined term, generally means all cash on hand at the end of the quarter after deduction for cash reserves established by the board of directors and the Partnership’s subsidiaries to i) provide for the proper conduct of the business (including reserves for future capital expenditures and for the anticipated credit needs); ii) comply with applicable law, any of the debt instruments or other agreements; iii) provide funds for payments on the Series A preferred units; and iv) provide funds for distributions to the unitholders for any one or more of the next four quarters. Therefore, the earnings per unit are not indicative of future cash distributions that may be made. Unlike available cash, net income is affected by non-cash items, such as depreciation and amortization, unrealized gains or losses on derivative instruments and unrealized gains or losses on foreign exchange transactions. In addition, Höegh LNG currently holds all the IDRs in the Partnership. IDRs represent the rights to receive an increasing percentage of quarterly distributions of available cash for operating surplus after the minimum quarterly distribution and the target distribution levels have been achieved. Distributions of available cash from operating surplus are to be made among the unitholders and the holders of the IDRs in the following manner for any quarter after the subordination period: ● first , 100.0% to all common unitholders, pro rata, until each such unitholder receives a total of $0.388125 per unit for that quarter; ● second , 85.0% to all common unitholders, pro rata, and 15.0% to the holders of the IDRs, pro rata, until each such unitholder receives a total of $0.421875 per unit for that quarter; ● third , 75.0% to all common unitholders, pro rata, and 25.0% to the holders of the IDRs, pro rata, until each such unitholder receives a total of $0.50625 per unit for that quarter; and ● thereafter , 50.0% to all common unitholders, pro rata, and 50.0% to the holders of the IDRs, pro rata. In each case, the percentage interests set forth above assume that the Partnership does not issue additional classes of equity securities. |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent events | |
Subsequent events | 19. Subsequent events On August 6, 2020, the Partnership 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, the Partnership 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. The Partnership expects to incur severance costs related to Mr. Føreid’s departure equal to nine months base salary. On August 7, 2020, the Partnership drew $6.6 million on the $85 million revolving credit facility from HLNG. On August 14, 2020, the Partnership paid a cash distribution of $15.0 million, or $0.44 per common unit, with respect to the quarter ended June 30, 2020. On August 17, 2020, the Partnership paid a distribution of $3.7 million, or $0.546875 per Series A preferred unit, for the period commencing on May 15, 2020 to August 14, 2020. After the balance sheet date, there continues to be significant macroeconomic uncertainty as a result of the Coronavirus (COVID-19) outbreak. The scale and duration of this development remains uncertain and could materially impact the Partnership's earnings and cash flow. |
Significant accounting polici_2
Significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Significant accounting policies | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed interim consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information. In the opinion of Management, all adjustments considered necessary for a fair presentation, which are of a normal recurring nature, have been included. All inter-company balances and transactions are eliminated. The footnotes are condensed and do not include all the disclosures required for a complete set of financial statements. Therefore, the unaudited condensed interim consolidated financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2019, included in the Partnership’s Annual Report on Form 20-F (the “Annual Report”). It has been determined that PT Hoegh LNG Lampung, Hoegh LNG Cyprus Limited, Höegh LNG Colombia Holding Ltd., SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. are variable interest entities. A variable interest entity (“VIE”) is defined by US GAAP as a legal entity where either (a) the voting rights of some investors are not proportional to their rights to receive the expected residual returns of the entity, their obligations to absorb the expected losses of the entity, or both, and substantially all of the entity's activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity's residual risks and rewards. The guidance requires a VIE to be consolidated if any of its interest holders are entitled to a majority of the entity's residual returns or are exposed to a majority of its expected losses. Based upon the criteria set forth in US GAAP, the Partnership has determined that PT Hoegh LNG Lampung is a VIE, as the equity holders, through their equity investments, may not participate fully in the entity's expected residual returns and substantially all of the entity's activities either involve, or are conducted on behalf of, the Partnership. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of PT Hoegh LNG Lampung are included in the consolidated financial statements. Dividends may only be paid if the retained earnings are positive and a statutory reserve has been established equal to 20% of its paid-up capital under Indonesian law. As of June 30, 2020, PT Hoegh LNG Lampung is in the process of establishing the required statutory reserves and therefore is currently unable to make dividend payments under Indonesia law. Under the Lampung facility, there are limitations on cash dividends and loan distributions that can be made to the Partnership. Refer to note 9. The Partnership has also determined that Hoegh LNG Cyprus Limited is a VIE, as the equity investment does not provide sufficient equity to permit the entity to finance its activities without intercompany loans. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of Hoegh LNG Cyprus Limited are included in the consolidated financial statements. Under Cyprus law, dividends may only be distributed out of profits and not from the share capital of the company. The Partnership has determined that Höegh LNG Colombia Holding Ltd. is a VIE since the entity would not be able to finance its activities without intercompany loans to its subsidiary to finance the Höegh Grace Dividends and other distributions from Höegh LNG Cyprus Limited, Hoegh LNG Colombia Ltd. and Höegh LNG FSRU IV Ltd. may only be distributed if after the dividend payment, the Partnership would remain in compliance with the financial covenants under the $385 million facility. Refer to note 9. In addition, the Partnership has determined that the two joint ventures, SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., are VIEs since each entity did not have a sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support. The entities have been financed with third party debt and subordinated shareholders loans. The Partnership is not the primary beneficiary, as the Partnership cannot make key operating decisions considered to be most significant to the VIEs but has joint control with the other equity holders. Therefore, the joint ventures are accounted for under the equity method of accounting as the Partnership has significant influence. The Partnership's carrying value is recorded in advances to joint ventures and accumulated earnings (losses) of joint ventures in the consolidated balance sheets. For SRV Joint Gas Ltd., the Partnership had a receivable for the advances of $3.2 million and $3.0 million, respectively, as of June 30, 2020 and December 31, 2019. The Partnership’s accumulated earnings, or its share of net assets, was $0.4 million and $2.6 million, respectively, as of June 30, 2020 and December 31, 2019. The Partnership's carrying value for SRV Joint Gas Two Ltd. consists of a receivable for the advances of $0.8 million, as of both June 30, 2020 and December 31, 2019. The Partnership’s accumulated losses, or its share of net liabilities of $0.7 million as of June 30, 2020 and the Partnership’s accumulated earnings, or its share of net assets, was $0.7 million as of December 31, 2019. The major reason that the Partnership has historically had accumulated losses in the joint ventures, or net liabilities, is due to the fair value adjustments for the interest rate swaps recorded as liabilities on the combined balance sheets of SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. and eliminations for consolidation to the balance sheet. The maximum exposure to loss is the carrying value of the receivables, which is subordinated to the joint ventures’ long-term bank debt, the investments in the joint ventures (accumulated earnings or losses), as the shares are pledged as security for the joint ventures’ long-term bank debt, and Höegh LNG’s commitment under long-term bank loan agreements to fund its share of drydocking costs and remarketing efforts in the event of an early termination of the charters. If the charters terminate for any reason that does not result in a termination fee, the joint ventures’ long-term bank debt would be subject to mandatory repayment. Dividend distributions require a) agreement of the other joint venture owners; b) fulfilment of requirements of the long-term bank loans; c) and under Cayman Islands law may be paid out of profits or capital reserves subject to the joint venture being solvent after the distribution. Refer to notes 7 and 8 for additional discussion on dividend distributions. |
Significant accounting policies | Significant accounting policies The accounting policies used in the preparation of the unaudited condensed interim consolidated financial statements are consistent with those applied in the audited financial statements for the year ended December 31, 2019 included in the Partnership’s Annual Report, except as described below. |
Allowance for expected credit losses | Allowance for expected credit losses |
Recently adopted accounting pronouncements and Recently issued accounting pronouncements | Recently adopted accounting pronouncements On January 1, 2020, the Partnership adopted the Financial Accounting Standards Board's ("FASB") revised guidance on Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss methodology with a current expected loss (CECL) methodology that requires consideration of a broader range of reasonable and supportable information to estimate credit losses. The new guidance is applicable to financial assets measured at amortized cost, including trade receivables, contract assets and net investment in financing leases and applied with a modified retrospective method. The Partnership recorded a net decrease to retained earnings of $0.16 million as of January 1, 2020 for the cumulative effect of adopting the new standard. The cumulative effect includes allowances for expected credit losses recognized of $0.1 million related to the net investment in financing lease and a $0.06 million related to trade receivables. Refer to note 4. For the six months ended June 30, 2020, there was no change in the allowance for expected credit losses following the cumulative effect of adopting the new standard. On January 1, 2020, the Partnership adopted FASB's revised guidance for Intangibles - Goodwill and Other: Simplifying the test for Goodwill Impairment , which simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The adoption of the standard did not have an impact on the consolidated financial statements. Recently issued accounting pronouncements In December 2019, FASB issued revised guidance for Income Taxes - Simplifying the Accounting for Income Taxes In March 2020, FASB issued final guidance for Reference Rate Reform Other recently issued accounting pronouncements are not expected to materially impact the Partnership. |
Description of business (Tables
Description of business (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Description of business | |
Schedule of entities | The following table lists the entities included in these consolidated financial statements and their purpose as of June 30, 2020. Jurisdiction of Incorporation Name or Registration Purpose Höegh LNG Partners LP Marshall Islands Holding Company Höegh LNG Partners Operating LLC (100% owned) (3) Marshall Islands Holding Company Hoegh LNG Services Ltd (100% owned) United Kingdom Administration Services Company Hoegh LNG Lampung Pte. Ltd. (100% owned) Singapore Owns 49% of PT Hoegh LNG Lampung PT Hoegh LNG Lampung (49% owned) (1) Indonesia Owns PGN FSRU Lampung SRV Joint Gas Ltd. (50% owned) (2) Cayman Islands Owns Neptune SRV Joint Gas Two Ltd. (50% owned) (2) Cayman Islands Owns Cape Ann Hoegh LNG Cyprus Limited (100% owned) Cyprus Owns Höegh Gallant Hoegh LNG Cyprus Limited Egypt Branch (100% owned) Egypt Branch of Hoegh LNG Cyprus Limited Höegh LNG Colombia Holding Ltd. (100% owned) Cayman Islands Owns 100% of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S. Höegh LNG FSRU IV Ltd. (100% owned) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (100% owned) Colombia Operating Company (1) PT Hoegh LNG Lampung is a variable interest entity, which is controlled by Hoegh LNG Lampung Pte. Ltd. and is, therefore, 100% consolidated in the consolidated financial statements. (2) The remaining 50% interest in each joint venture is owned by Mitsui O.S.K. Lines, Ltd. and Tokyo LNG Tanker Co. (3) On January 31, 2019, Höegh LNG FSRU III Ltd. transferred its ownership in Hoegh LNG Cyprus Limited to Höegh LNG Partners Operating LLC. Höegh LNG FSRU III Ltd. was formally dissolved on May 4, 2020 . |
Segment information (Tables)
Segment information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment information | |
Schedule of results of segments | The following tables include the results for the segments for the three and six months ended June 30, 2020 and 2019. Three months ended June 30, 2020 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations Reporting Time charter revenues $ 34,436 12,139 — 46,575 (12,139) (1) $ 34,436 Total revenues 34,436 12,139 — 46,575 34,436 Operating expenses (6,616) (2,660) (1,315) (10,591) 2,660 (1) (7,931) Equity in earnings (losses) of joint ventures — — — — 6,475 (1) 6,475 Segment EBITDA 27,820 9,479 (1,315) 35,984 Depreciation and amortization (5,234) (2,490) — (7,724) 2,490 (1) (5,234) Operating income (loss) 22,586 6,989 (1,315) 28,260 27,746 Gain (loss) on derivative instruments — 2,295 — 2,295 (2,295) (1) — Other financial income (expense), net (2,236) (2,921) (4,410) (9,567) 2,921 (1) (6,646) Income (loss) before tax 20,350 6,363 (5,725) 20,988 21,100 Income tax benefit (expense) (1,419) 112 — (1,307) (112) (1,419) Net income (loss) $ 18,931 6,475 (5,725) 19,681 — $ 19,681 Preferred unitholders’ interest in net income — — — — 3,668 (2) 3,668 Limited partners’ interest in net income (loss) $ 18,931 6,475 (5,725) 19,681 (3,668) (2) $ 16,013 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership's share of the Joint venture FSRUs net income (loss) to Equity in earnings (losses) of joint ventures. (2) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. Three months ended June 30, 2019 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other Reporting Eliminations reporting Time charter revenues $ 33,777 10,752 — 44,529 (10,752) (1) $ 33,777 Total revenues 33,777 10,752 — 44,529 33,777 Operating expenses (9,885) (2,233) (1,451) (13,569) 2,233 (1) (11,336) Equity in earnings (losses) of joint ventures — — — — (1,575) (1) (1,575) Segment EBITDA 23,892 8,519 (1,451) 30,960 Depreciation and amortization (5,589) (2,452) — (8,041) 2,452 (1) (5,589) Operating income (loss) 18,303 6,067 (1,451) 22,919 15,277 Gain (loss) on derivative instruments — (4,649) — (4,649) 4,649 (1) — Other financial income (expense), net (2,689) (2,993) (4,921) (10,603) 2,993 (1) (7,610) Income (loss) before tax 15,614 (1,575) (6,372) 7,667 7,667 Income tax expense (1,511) — — (1,511) (1,511) Net income (loss) $ 14,103 (1,575) (6,372) 6,156 — $ 6,156 Preferred unitholders’ interest in net income — — — — 3,378 (2) 3,378 Limited partners' interest in net income (loss) $ 14,103 (1,575) (6,372) 6,156 (3,378) (2) $ 2,778 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership's share of the Joint venture FSRUs net income (loss) to Equity in earnings (losses) of joint ventures. (2) Allocates the preferred unitholders' interest in net income to the preferred unitholders. Six months ended June 30, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations Reporting Time charter revenues $ 71,122 22,666 — 93,788 (22,666) (1) $ 71,122 Total revenues 71,122 22,666 — 93,788 71,122 Operating expenses (12,846) (5,812) (3,020) (21,678) 5,812 (1) (15,866) Equity in earnings (losses) of joint ventures — — — — (3,572) (1) (3,572) Segment EBITDA 58,276 16,854 (3,020) 72,110 Depreciation and amortization (10,516) (4,984) — (15,500) 4,984 (1) (10,516) Operating income (loss) 47,760 11,870 (3,020) 56,610 41,168 Gain (loss) on derivative instruments — (9,490) — (9,490) 9,490 (1) — Other financial income (expense), net (4,781) (5,952) (8,851) (19,584) 5,952 (1) (13,632) Income (loss) before tax 42,979 (3,572) (11,871) 27,536 27,536 Income tax expense (2,381) — — (2,381) — (2,381) Net income (loss) $ 40,598 (3,572) (11,871) 25,155 — $ 25,155 Preferred unitholders’ interest in net income — — — — 7,337 (2) 7,337 Limited partners' interest in net income (loss) $ 40,598 (3,572) (11,871) 25,155 (7,337) (2) $ 17,818 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership's share of the Joint venture FSRUs net income (loss) to Equity in earnings (losses) of joint ventures. (2) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. As of June 30, 2020 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other Reporting Eliminations Reporting Vessels, net of accumulated depreciation $ 630,030 247,201 — 877,231 (247,201) (1) $ 630,030 Net investment in financing lease 276,583 — — 276,583 — 276,583 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,988 3,988 — 3,988 Total assets 979,367 272,396 5,548 1,257,311 (272,396) (1) 984,915 Accumulated earnings of joint ventures — — 25 25 380 (1) 405 Accumulated losses of joint ventures — — 25 25 (732) (1) (707) Expenditures for vessels & equipment 8 68 — 76 (68) (2) 8 Expenditures for drydocking — 2 — 2 (2) (2) — Principal repayment financing lease 2,226 — — 2,226 — 2,226 Amortization of above market & contract extension $ 1,664 — — 1,664 — $ 1,664 (1) Eliminates the proportional share of the Joint venture FSRUs' Vessels, net of accumulated depreciation, and Total assets and reflects the Partnership's share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated earnings (losses) of joint ventures. (2) Eliminates the Joint venture FSRUs' Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Six months ended June 30, 2019 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 69,852 21,081 — 90,933 (21,081) (1) $ 69,852 Other revenue 64 (3) — — 64 (1) 64 Total revenues 69,916 21,081 — 90,997 69,916 Operating expenses (16,583) (4,112) (3,222) (23,917) 4,112 (1) (19,805) Equity in earnings (losses) of joint ventures — — — — (1,223) (1) (1,223) Segment EBITDA 53,333 16,969 (3,222) 67,080 Depreciation and amortization (10,912) (5,005) — (15,917) 5,005 (1) (10,912) Operating income (loss) 42,421 11,964 (3,222) 51,163 37,976 Gain (loss) on debt extinguishment 1,030 — — 1,030 (1) 1,030 Gain (loss) on derivative instruments — (7,190) — (7,190) 7,190 (1) — Other financial income (expense), net (6,926) (5,997) (8,368) (21,291) 5,997 (1) (15,294) Income (loss) before tax 36,525 (1,223) (11,590) 23,712 23,712 Income tax expense (3,421) — — (3,421) (3,421) Net income (loss) $ 33,104 (1,223) (11,590) 20,291 — $ 20,291 Preferred unitholders’ interest in net income — — — — 6,742 (2) 6,742 Limited partners’ interest in net income (loss) $ 33,104 (1,223) (11,590) 20,291 (6,742) (2) $ 13,549 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership's share of the Joint venture FSRUs net income (loss) to Equity in earnings (loss) of joint ventures. (2) Allocates the preferred unitholders' interest in net income to the preferred unitholders. (3) Other revenue consists of insurance proceeds received for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs related to the Mooring, subject to repayment to the extent recovered from insurance proceeds. The amount was refunded to Höegh LNG during the second quarter of 2019. Refer to notes 4, 11 and 14. As of December 31, 2019 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations Reporting Vessels, net of accumulated depreciation $ 640,431 252,789 — 893,220 (252,789) (1) $ 640,431 Net investment in financing lease 278,904 — — 278,904 — 278,904 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,831 3,831 — 3,831 Total assets 996,201 284,174 16,599 1,296,974 (284,174) (1) 1,012,800 Accumulated earnings of joint ventures — — 50 50 3,220 (1) 3,270 Expenditures for vessels & equipment 211 195 — 406 (195) (2) 211 Expenditures for drydocking 3,107 913 — 4,020 (913) (2) 3,107 Impairment/retirement of equipment — (75) — (75) 75 (2) — Principal repayment financing lease 4,168 — — 4,168 — 4,168 Amortization of above market contract $ 3,631 — — 3,631 — $ 3,631 (1) Eliminates the proportional share of the Joint venture FSRUs’ Vessels, net of accumulated depreciation, and Total assets and reflects the Partnership’s share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated earnings of joint ventures. (2) Eliminates (a) the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership and (b) impairment/retirement of equipment to reflect the Partnership's consolidated assets. |
Time charter revenues and rel_2
Time charter revenues and related contract balances (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Time charter revenues and related contract balances | |
Summary of disaggregated revenue | The following tables summarize the disaggregated revenue of the Partnership by segment for the three and six months ended June 30, 2020 and 2019: Three months ended June 30, 2020 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 21,935 6,405 — 28,340 (6,405) $ 21,935 Time charter service revenues, excluding amortization 13,260 5,054 — 18,314 (5,054) 13,260 Amortization of above market & contract extension intangibles (759) — — (759) (759) Amortization of deferred revenue for modifications & drydock — 680 — 680 (680) — Total revenues (4) $ 34,436 12,139 — 46,575 (12,139) $ 34,436 Three months ended June 30, 2019 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 21,239 6,405 — 27,644 (6,405) $ 21,239 Time charter service revenues, excluding amortization 13,433 3,713 — 17,156 (3,713) 13,443 Amortization of above market contract intangibles (905) — — (905) (905) Amortization of deferred revenue for modifications & drydock — 634 — 634 (634) — Total revenues (4) $ 33,777 10,752 — 44,529 (10,752) $ 33,777 Six months ended June 30, 2020 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 44,393 12,810 — 57,203 (12,810) $ 44,393 Time charter service revenues, excluding amortization 28,393 8,507 — 36,900 (8,507) 28,393 Amortization of above market & contract extension intangibles (1,664) — — (1,664) — (1,664) Amortization of deferred revenue for modifications & drydock — 1,349 — 1,349 (1,349) — Total revenues (4) $ 71,122 22,666 — 93,788 (22,666) $ 71,122 Six months ended June 30, 2019 Joint venture Majority FSRUs Total Held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) Reporting Lease revenues, excluding amortization (2) $ 43,614 12,739 — 56,353 (12,739) $ 43,614 Time charter service revenues, excluding amortization 28,038 6,990 — 35,028 (6,990) 28,038 Amortization of above market contract intangibles (1,800) — — (1,800) — (1,800) Amortization of deferred revenue for modifications & drydock — 1,352 — 1,352 (1,352) — Other revenue (3) 64 — — 64 — 64 Total revenues (4) $ 69,916 21,081 — 90,997 (21,081) $ 69,916 (1) Eliminations reverse the proportional amounts of revenue for Joint venture FSRUs to reflect the consolidated revenues included in the consolidated income statement. The Partnership's share of the Joint venture FSRUs revenues is included in Equity in earnings (loss) of joint ventures on the consolidated income statement. (2) The financing lease revenues comprise about one-fourth of the total lease revenues for the three and six months ended June 30, 2020 and 2019. (3) Other revenue consists of insurance proceeds received for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs related to the Mooring, subject to repayment to the extent recovered from insurance proceeds. Refer to notes 11 and 14. (4) Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of total revenues and is disclosed separately in the consolidated statement of cash flows. |
Schedule of consolidated receivables between lease and service components | The following table summarizes the allocation of consolidated receivables between lease and service components: As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Trade receivable for lease $ 5,233 $ 2,898 Trade receivable for time charter services 4,794 2,133 Allowance for expected credit losses (60) — Total trade receivable and amounts due from affiliates $ 9,967 $ 5,031 |
Summary of contract assets, contract liabilities and refund liabilities to customers | The following tables summarize the consolidated contract assets, contract liabilities and refund liabilities to customers for the six months ended June 30, 2020 and for the year ended December 31, 2019: Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2020 $ 279 $ (125) Additions — (718) Reduction for receivables recorded (18) — Reduction for revenue recognized from previous years — 48 Repayments of refund liabilities to charterer — 17 Balance June 30, 2020 $ 261 $ (778) Services related Contract Refund liability (in thousands of U.S. dollars) Asset to charters Balance as of January 1, 2019 $ — $ (1,834) Additions 279 (65) Reduction for receivables recorded — 89 Reduction for revenue recognized from previous years — 497 Repayments of refund liabilities to charterer — 1,188 Balance as of December 31, 2019 $ 279 $ (125) |
Summary of direct financing lease | The financing lease is reflected on the consolidated balance sheets as net investment in financing lease, a receivable, as follows: As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Minimum lease payments $ 589,074 $ 589,074 Unguaranteed residual value 146,000 146,000 Unearned income (440,345) (440,345) Initial direct cost, net 3,095 3,095 Net investment in financing lease 297,824 297,824 Principal repayment and amortization (21,145) (18,920) Allowance for credit loss (96) — Net investment in financing lease at period end 276,583 278,904 Less: Current portion (4,756) (4,551) Long term net investment in financing lease $ 271,827 $ 274,353 Net investment in financing lease consists of: Financing lease receivable $ 235,906 $ 240,000 Unguaranteed residual value 40,677 38,904 Net investment in financing lease at period end $ 276,583 $ 278,904 |
Financial income (expense), n_2
Financial income (expense), net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial income (expense), net | |
Schedule of components of financial income (expense), net | The components of financial income (expense), net are as follows: Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2020 2019 2020 2019 Interest income $ 163 $ 297 $ 335 $ 496 Interest expense: Interest expense (5,710) (6,361) (11,594) (12,609) Commitment fees (34) (148) (69) (260) Amortization of debt issuance cost and fair value of debt assumed (578) (639) (1,170) (1,115) Total interest expense (6,322) (7,148) (12,833) (13,984) Gain (loss) on debt extinguishment — — — 1,030 Other items, net: Foreign exchange gain (loss) 166 (36) 214 (55) Bank charges, fees and other (41) (85) (127) (138) Withholding tax on interest expense and other (612) (638) (1,221) (1,613) Total other items, net (487) (759) (1,134) (1,806) Total financial income (expense), net $ (6,646) $ (7,610) $ (13,632) $ (14,264) |
Investments in joint ventures (
Investments in joint ventures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments | As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Accumulated earnings of joint ventures $ 405 $ 3,270 Accumulated losses of joint ventures $ (707) $ — |
SRV Joint Gas Ltd and SRV Joint Gas Two Ltd [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of financial Statement Information of Joint Ventures on aggregated basis | Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2020 2019 2020 2019 Time charter revenues $ 24,278 $ 21,504 $ 45,331 $ 42,162 Operating expenses (5,319) (4,467) (11,623) (8,226) Depreciation and amortization (5,133) (5,058) (10,275) (10,317) Operating income 13,826 11,979 23,433 23,619 Unrealized gain (loss) on derivative instruments 4,589 (9,297) (18,979) (14,379) Other financial expense, net (5,842) (5,985) (11,905) (11,994) Income (loss) before tax 12,573 (3,303) (7,451) (2,754) Income tax expense 223 — — — Net income (loss) $ 12,796 $ (3,303) $ (7,451) $ (2,754) Share of joint ventures owned 50 % 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations 6,398 (1,652) (3,726) (1,377) Eliminations 77 77 154 154 Equity in earnings (losses) of joint ventures $ 6,475 $ (1,575) $ (3,572) $ (1,223) As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Cash and cash equivalents $ 14,763 $ 17,897 Restricted cash 8,681 9,250 Other current assets 1,033 973 Total current assets 24,477 28,120 Restricted cash 25,913 34,650 Vessels, net of accumulated depreciation 509,576 521,060 Total long-term assets 535,489 555,710 Current portion of long-term debt 29,186 28,297 Amounts and loans due to owners and affiliates 886 629 Derivative instruments 15,011 13,089 Refund liabilities (1) 7,643 26,691 Other current liabilities 9,445 10,327 Total current liabilities 62,171 79,033 Long-term debt 360,434 375,091 Loans due to owners and affiliates 7,976 7,663 Derivative instruments 76,127 59,070 Other long-term liabilities 38,689 40,952 Total long-term liabilities 483,226 482,776 Net assets (liabilities) $ 14,569 $ 22,021 Share of joint ventures owned 50 % 50 % Share of joint ventures net assets (liabilities) before eliminations 7,285 11,011 Eliminations (7,587) (7,741) Accumulated earnings (losses) of joint ventures $ (302) $ 3,270 |
Advances to joint ventures (Tab
Advances to joint ventures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Advances to joint ventures | |
Schedule of Investments in and Advances to Affiliates | As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Current portion of advances to joint ventures $ — $ — Long-term advances to joint ventures 3,988 3,831 Advances/shareholder loans to joint ventures $ 3,988 $ 3,831 |
Long-term debt (Tables)
Long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Long-term debt | |
Schedule of long-term debt | As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Lampung facility: Export credit tranche $ 86,767 $ 94,210 FSRU tranche 20,724 22,812 $385 million facility: Commercial tranche 240,170 249,635 Export credit tranche 47,833 51,167 Revolving credit facility 48,300 48,300 Outstanding principal 443,794 466,124 Lampung facility unamortized debt issuance cost (3,633) (4,309) $385 million facility unamortized debt issuance cost (4,360) (4,854) Total debt 435,801 456,961 Less: Current portion of long-term debt (44,660) (44,660) Long-term debt $ 391,141 $ 412,301 |
Accrued liabilities and payab_2
Accrued liabilities and payables (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accrued liabilities and payables | |
Schedule of accrued liabilities and payables | As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Accrued administrative and operating expenses $ 3,143 $ 3,314 Accrued interest 2,651 2,850 Refund liabilities 778 125 Accrued property tax 489 3,033 Current tax payable 418 818 Lease liability 45 75 Other accruals and payables 232 949 Total accrued liabilities and other payables $ 7,756 $ 11,164 |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Schedule of related party transactions | Amounts due from affiliates As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Amounts due from affiliates $ 5,701 $ 4,296 Amounts due to owners and affiliates As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Amounts due to owners and affiliates $ 3,627 $ 2,513 Revolving credit facility due to owners and affiliates As of June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Revolving credit facility $ 4,749 $ 8,792 |
Hoegh LNG and Subsidiaries [Member] | |
Schedule of related party transactions | As described in Related party agreements PGN FSRU Lampung Höegh Gallant Höegh Grace Höegh Gallant Related party amounts included in the consolidated statements of income for the three and six months ended June 30, 2020 and 2019 or in the consolidated balance sheets as of June 30, 2020 and December 31, 2019 are as follows: Three months ended Six months ended Statement of income: June 30, June 30, (in thousands of U.S. dollars) 2020 2019 2020 2019 Revenues Time charter revenue Höegh Gallant $ 11,112 $ 10,131 $ 23,415 $ 22,310 Operating expenses Vessel operating expenses (2) (5,192) (5,417) (9,531) (10,706) Hours, travel expense and overhead (3) and Board of Directors’ fees (4) (982) (773) (2,129) (2,131) Financial (income) expense Interest income from joint ventures (5) 79 73 157 143 Interest expense to Höegh LNG (6) (57) (686) (196) (1,354) Total $ 4,960 $ 3,328 $ 11,716 $ 8,262 As of Balance sheet June 30, December 31, (in thousands of U.S. dollars) 2020 2019 Equity Contributions from Höegh LNG (7) $ 8,600 $ — Repayment of indemnification received from Höegh LNG (8) — (64) Issuance of units for Board of Directors’ fees (4) — 194 Other and contribution from owner (9) 225 485 Total $ 8,825 $ 615 1) Time charter revenue Höegh Gallant: Subsidiaries of Höegh LNG have leased the Höegh Gallant . 2) Vessel operating expenses: Subsidiaries of Höegh LNG provide ship management of vessels, including crews and the provision of all other services and supplies. 3) Hours, travel expenses and overhead: Subsidiaries of Höegh LNG provide management, accounting, bookkeeping and administrative support under administrative service agreements. These services are charged based upon the actual hours incurred for each individual as registered in the time-write system based on a rate which includes a provision for overhead and any associated travel expenses. 4) Board of Directors’ fees: Part of the board compensation is awarded as common units of the Partnership. Effective June 4, 2019 a total of 11,180 common units were awarded to non-employee directors under the Höegh LNG Partners LP Long Term Incentive Plan as compensation of $194 for part of the directors' fees. The awards were recorded as administrative expense and as an issuance of common units. Common units are recorded when issued. 5) Interest income from joint ventures: The Partnership and its joint venture partners have provided subordinated financing to the joint ventures as shareholder loans. Interest income for the Partnership’s shareholder loans to the joint ventures is recorded as interest income. 6) Interest expense to Höegh LNG and affiliates: Höegh LNG and its affiliates provided an $85 million revolving credit facility for general partnership purposes. The Partnership incurred interest expense on the drawn balance. 7) Non-cash contribution from Höegh LNG: As described under "Indemnifications" below, on April 8, 2020, the Partnership was indemnified by Höegh LNG for its share of the joint ventures boil-off settlement payments by a reduction of $8.6 million on its outstanding balance on the $85 million revolving credit facility from Höegh LNG. This non-cash settlement from Höegh LNG was recorded as an increase in equity. 8) Cash contribution from/distribution to Höegh LNG: As described under “Indemnifications” below, Höegh LNG made indemnification payments to the Partnership or received refunds of indemnification from the Partnership which were recorded as contributions or distributions to equity. 9) Other and contribution from owner: Höegh LNG granted share-based incentives to certain key employees whose services benefit the Partnership. Related expenses are recorded as administrative expenses and as a contribution from owner since the Partnership is not invoiced for this employee benefit. Effective March 26, 2020, March 21, 2019 and September 14, 2018, the Partnership granted or extended the terms for 8,100 , 10,917 and 28,018 phantom units , respectively, to the Chief Executive Officer and Chief Financial Officer of the Partnership. Related expenses are recorded over the vesting period as an administrative expense and as an increase in equity. On August 6, 2020, the Partnership announced that the Partnership's Chief Executive Officer and Chief Financial Officer resigned which will result in 15,378 of the phantom units not vesting. The remaining unvested phantom units will be 9,723 which will vest in 2020 and 2021. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments | |
Schedule of estimated fair value and carrying value of assets and liabilities | The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the financial instruments that are not accounted for at a fair value on a recurring basis. Trade payables and receivables for which the estimated fair values are equivalent to carrying values are not specified below. As of As of June 30, 2020 December 31, 2019 Carrying Fair Carrying Fair amount value amount Value Asset Asset Asset Asset (in thousands of U.S. dollars) Level (Liability) (Liability) (Liability) (Liability) Recurring: Cash and cash equivalents 1 $ 25,623 25,623 39,126 $ 39,126 Restricted cash 1 18,390 18,390 20,693 20,693 Derivative instruments 2 (30,860) (30,860) (14,935) (14,935) Other: Amounts due from affiliate 2 5,701 5,701 4,296 4,296 Advances (shareholder loans) to joint ventures 2 3,988 4,121 3,831 4,029 Current amounts due to owners and affiliates 2 (3,627) (3,627) (2,513) (2,513) Lampung facility 2 (103,858) (109,270) (112,713) (119,598) $385 million facility 2 (331,943) (340,686) (344,248) (352,219) Revolving credit facility due to owners & affiliates 2 $ (4,749) (4,735) (8,792) $ (8,717) |
Risk management, derivative i_2
Risk management, derivative instruments and concentrations of risk (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Risk management, derivative instruments and concentrations of risk | |
Schedule of interest rate swap agreements | As of June 30, 2020, the following interest rate swap agreements were outstanding: Fair value Interest carrying Fixed Rate Notional amount Interest (in thousands of U.S. dollars) Index amount liability Term Rate(1) LIBOR-based debt Lampung interest rate swaps (2) LIBOR $ 107,491 (7,011) Sep 2026 2.800 % $385 million facility swaps (2) LIBOR $ 59,130 (6,369) Jan 2026 2.941 % $385 million facility swaps (2) LIBOR $ 59,130 (5,961) Oct 2025 2.838 % $385 million facility swaps (2) LIBOR $ 59,130 (5,864) Jan 2026 2.735 % $385 million facility swaps (2) LIBOR $ 59,130 (5,655) Jan 2026 2.650 % 1) Excludes the margins paid on the floating-rate debt. 2) All interest rate swaps are U.S. dollar denominated and principal amount reduces quarterly from the effective date of the interest rate swaps. |
Schedule of fair value of derivative instruments | The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the consolidated balance sheets. All derivatives are designated as cash flow hedging instruments. Fair value of derivative instruments Current Long-term Current Long-term assets: assets: liabilities: liabilities: Derivative Derivative derivative derivative (in thousands of U.S. dollars) instruments Instruments instruments instruments As of June 30, 2020 Interest rate swaps $ — $ — $ (7,208) $ (23,652) As of December, 2019 Interest rate swaps $ — $ — $ (2,907) $ (12,028) |
Schedule of effect of cash flow hedge accounting on the consolidated statement of income | The following effects of cash flow hedges relating to interest rate swaps are included in interest expense and income tax expense in the consolidated statements of income which are the same lines as the earnings effects of the hedged item for the three and six months ended June 30, 2020 and 2019. Effect of cash flow hedge accounting on the consolidated statement of income Three months ended Six months ended June 30, 2020 June 30, 2020 Income Interest tax Interest Income tax (in thousands of U.S. dollars) expense benefit expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (1,022) $ — $ (1,810) $ — Amortization of amount excluded from hedge effectiveness 235 — 400 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (256) 53 (512) 129 Total gains (losses) on derivative instruments $ (1,043) $ 53 $ (1,922) $ 129 Three months ended Six months ended June 30, 2019 June 30, 2019 Interest Income tax Interest Income tax (in thousands of U.S. dollars) expense benefit expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (113) $ — $ (112) $ — Amortization of amount excluded from hedge effectiveness 224 — 468 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (248) 54 (475) 117 Settlement of cash flow hedge — — 199 — Total gains (losses) on derivative instruments $ (137) $ 54 $ 80 $ 117 |
Schedule of effect of cash flow hedge accounting on accumulated other comprehensive income (OCI) and earnings | Effect of cash flow hedge accounting on accumulated other comprehensive income (OCI) and earnings Cash Flow Hedge Accumulated other comprehensive income Earnings Before tax Tax gains benefit Net of Interest Tax (in thousands of U.S. dollars) (losses) (expense) tax expense benefit Balance as of December 31, 2019 $ (18,119) 176 $ (17,943) Effective portion of unrealized loss on cash flow hedge (18,136) — (18,136) Reclassification from accumulated other comprehensive income included in hedge effectiveness 1,810 — 1,810 (1,810) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 512 (129) 383 (512) 129 Other comprehensive income for period (15,814) (129) (15,943) Balance as of June 30, 2020 $ (33,933) 47 $ (33,886) Gain (loss) reclassified to earnings $ (2,322) $ 129 The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income, changes in accumulated other comprehensive income (“OCI”) and on earnings is as follows as of and for the period ended June 30, 2019. Effect of cash flow hedge accounting on accumulated other comprehensive income (OCI) and earnings Cash Flow Hedge Accumulated other comprehensive income Earnings Before tax Tax gains benefit Net of Interest Tax (in thousands of U.S. dollars) (losses) (expense) tax expense benefit Balance as of December 31, 2018 $ (5,902) 565 $ (5,337) Initial value of interest rate swap to be recognized in earnings on amortization approach (625) — (625) Effective portion of unrealized loss on cash flow hedge (12,896) — (12,896) Reclassification from accumulated other comprehensive income included in hedge effectiveness 112 — 112 (112) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 475 (117) 358 (475) 117 Other comprehensive income for period (12,934) (117) (13,051) Balance as of June 30, 2019 $ (18,836) 448 $ (18,388) Gain (loss) reclassified to earnings $ (587) $ 117 Other comprehensive income for the period from July 1, 2019 to December 31 2019 717 (272) 445 Balance as of December 31, 2019 $ (18,119) 176 $ (17,943) |
Supplemental cash flow inform_2
Supplemental cash flow information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental cash flow information | |
Schedule of supplemental cash flow information | Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2020 2019 2020 2019 Supplemental disclosure of non-cash investing activities Non-cash expenditures for vessel and other equipment $ — (43) — $ (43) Supplemental disclosure of non-cash financing activities Non-cash indemnifications received $ 8,600 — 8,600 $ — |
Issuance of common units and _2
Issuance of common units and Series A Preferred Units (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Issuance of common units and Series A Preferred Units | |
Schedule of net proceeds for units issued | Six months ended June 30, 2020 Series A Preferred (in thousands of U.S. dollars) Common units Units Total Gross proceeds for units issued $ — 2,163 $ 2,163 Less: Commissions — (38) (38) Net proceeds for units issued $ — 2,125 $ 2,125 |
Common, subordinated and pref_2
Common, subordinated and preferred units (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Common, subordinated and preferred units | |
Schedule of movements in the number of units, subordinated units and preferred units | The following table shows the movements in the number of common units, subordinated units and preferred units from December 31, 2018 until June 30, 2020: Common Common 8.75% Series A Units Units Subordinated Preferred (in units) Public Höegh LNG Units Units December 31, 2018 17,944,701 2,101,438 13,156,060 6,129,070 June 4, 2019; Awards to non-employee directors as compensation for directors’ fees 8,944 — — — July 16, 2019; Awards to non-employee directors as compensation for directors’ fees 2,236 — — — August 16, 2019; Subordinated units converted to common units — 13,156,060 (13,156,060) — Phantom units issued to CEO/CFO during 2019 19,745 — — — ATM program (from January 1, 2019 to December 31, 2019) 53,160 — — 496,520 December 31, 2019 18,028,786 15,257,498 — 6,625,590 ATM program (from January 1, 2020 to June 30, 2020) — — — 82,409 June 30, 2020 18,028,786 15,257,498 — 6,707,999 |
Earning per unit and cash dis_2
Earning per unit and cash distributions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earning per unit and cash distributions | |
Schedule of calculation of basic and diluted earnings per unit | Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars, except per unit numbers) 2020 2019 2020 2019 Net income $ 19,681 $ 6,156 $ 25,155 $ 20,291 Adjustment for: Preferred unitholders’ interest in net income 3,668 3,378 7,337 6,742 Limited partners’ interest in net income 16,013 2,778 17,818 13,549 Less: Dividends paid or to be paid (1) (15,045) (15,036) (30,091) (30,068) Under (over) distributed earnings 968 (12,258) (12,273) (16,519) Under (over) distributed earnings attributable to: Common units public 524 (6,636) (6,647) (8,942) Common units Höegh LNG 444 (774) (5,626) (1,044) Subordinated units Höegh LNG (4) — (4,848) — (6,533) $ 968 $ (12,258) $ (12,273) $ (16,519) Basic weighted average units outstanding (in thousands) Common units public 18,029 17,978 18,029 17,962 Common units Höegh LNG 15,257 2,101 15,257 2,101 Subordinated units Höegh LNG (4) — 13,156 — 13,156 Diluted weighted average units outstanding (in thousands) Common units public 18,039 17,996 18,039 17,976 Common units Höegh LNG 15,257 2,101 15,257 2,101 Subordinated units Höegh LNG (4) — 13,156 — 13,156 Earnings per unit (2): Common unit public (basic and diluted) $ 0.47 $ 0.07 $ 0.51 $ 0.38 Common unit Höegh LNG (basic and diluted) (3) $ 0.50 $ 0.10 $ 0.56 $ 0.44 Subordinated unit Höegh LNG (basic and diluted) (3) (4) $ — $ 0.10 $ — $ 0.44 (1) Includes all distributions paid or to be paid in relationship to the period, regardless of whether the declaration and payment dates were prior to the end of the period and is based the number of units outstanding at the period end. (2) Effective March 26, 2020, granted 8,100 phantom units to the CEO/CFO of the Partnership, one-third of such phantom units vest as of November 30, 2021, 2022 and 2023, respectively. Effective March 21, 2019, granted 10,917 phantom units to the CEO/CFO of the Partnership. One-third of such phantom units vest as of November 30, 2019, 2020 and 2021, respectively. Effective March 23, 2018, the Partnership granted 14,584 phantom units to the then-serving CEO/CFO of the Partnership. One-third of such phantom units vest as of November 30, 2019, 2020 and 2021, respectively. On September 14, 2018, the plan was amended to extend the terms and conditions of unvested units for the grants effective March 23, 2017 and June 3, 2016 of the then-serving CEO/CFO that resigned as CEO/CFO of the Partnership. The phantom units impact the diluted weighted average units outstanding. As a result of the resignation of the CEO/CFO of the Partnership in August 2020 (refer to note 19), a total of 15,378 of the unvested phantom units will terminate which will impact the diluted weighted average units outstanding for the third quarter of 2020. (3) Includes total amounts attributable to incentive distributions rights of $399 and $798 for the three and six months ended June 30, 2020, respectively. For the three and six months ended June 30, 2020, the full amount was attributable to common units owned by Höegh LNG. For the three and six months ended June 30, 2019, respectively, $55 and $110 were attributed to common units owned by Höegh LNG. Total amounts attributable to incentive distributions rights of $344 and $688 for the three and six months ended June 30, 2019, respectively, were attributed to subordinated units owned by Höegh LNG. (4) On August 16, 2019, all subordinated units converted into common units on a one-for-one basis. |
Description of business - Entit
Description of business - Entities (Details) | 6 Months Ended | |
Jun. 30, 2020 | ||
Hoegh LNG Partners LP [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Marshall Islands | |
Purpose | Holding Company | |
Hoegh LNG Partners Operating LLC [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Marshall Islands | |
Purpose | Holding Company | |
Hoegh LNG Services Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | United Kingdom | |
Purpose | Administration Services Company | |
Hoegh LNG Lampung Pte. Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Singapore | |
Purpose | Owns 49% of PT Hoegh LNG Lampung | |
PT Hoegh LNG Lampung [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Indonesia | [1] |
Purpose | Owns PGN FSRU Lampung | [1] |
SRV Joint Gas Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cayman Islands | [2] |
Purpose | Owns Neptune | [2] |
SRV Joint Gas Two Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cayman Islands | [2] |
Purpose | Owns Cape Ann | [2] |
Hoegh LNG Cyprus Limited [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cyprus | |
Purpose | Owns Höegh Gallant | |
Hoegh LNG Cyprus Limited Egypt Branch [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Egypt | |
Purpose | Branch of Hoegh LNG Cyprus Limited | |
Hoegh LNG Colombia Holding Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cayman Islands | |
Purpose | Owns 100% of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S. | |
Hoegh LNG FSRU IV Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cayman Islands | |
Purpose | Owns Höegh Grace | |
Hoegh LNG Colombia S A S [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Colombia | |
Purpose | Operating Company | |
[1] | PT Hoegh LNG Lampung is a variable interest entity, which is controlled by Hoegh LNG Lampung Pte. Ltd. and is, therefore, 100% consolidated in the consolidated financial statements. | |
[2] | The remaining 50% interest in each joint venture is owned by Mitsui O.S.K. Lines, Ltd. and Tokyo LNG Tanker Co. |
Description of business - Addit
Description of business - Additional information (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Hoegh LNG Lampung Pte. Ltd [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% |
Mitsui O.S.K. Lines, Ltd. and Tokyo LNG Tanker Co. [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Hoegh LNG FSRU IV Ltd [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Non Cancellable Lease Expiration Term | 10 years |
Lease Expiration Term | 10 years |
Lease Initial Term | 20 years |
Hoegh LNG FSRU IV Ltd [Member] | Maximum [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Lease Expiration Term | 15 years |
Hoegh LNG FSRU IV Ltd [Member] | Minimum [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Lease Expiration Term | 10 years |
SRV Joint Gas Ltd [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Sociedad Portuaria El Cayao [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership Interest By Private Equity Investors | 49.00% |
Sociedad Portuaria El Cayao [Member] | Promigas S.A. ESP [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 51.00% |
Significant accounting polici_3
Significant accounting policies (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Significant Accounting Policies [Line Items] | |||
Debt Instrument, Financial Covenants | $ 385,000 | ||
Allowance for credit loss | 96 | $ 0 | |
Allowance for Credit Loss on Trade Receivables and Amount Due from Affiliates | 60 | 0 | |
SRV Joint Gas Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Advances to Affiliate | 3,200 | 3,000 | |
SRV Joint Gas Two Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Advances to Affiliate | $ 800 | 800 | |
ASU 2016-13 | |||
Significant Accounting Policies [Line Items] | |||
Cumulative Effect on Retained Earnings, Net of Tax | $ 160 | ||
Allowance for credit loss | 100 | ||
Allowance for Credit Loss on Trade Receivables and Amount Due from Affiliates | $ 60 | ||
PT Hoegh LNG Lampung [Member] | |||
Significant Accounting Policies [Line Items] | |||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | ||
Statutory Reserve on Paid Up Capital Percentage | 20.00% | ||
Hoegh LNG Cyprus Limited [Member] | |||
Significant Accounting Policies [Line Items] | |||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | ||
Variable Interest Entity, Primary Beneficiary [Member] | SRV Joint Gas Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Net assets (liabilities) | $ 400 | 2,600 | |
Variable Interest Entity, Primary Beneficiary [Member] | SRV Joint Gas Two Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Net assets (liabilities) | $ 700 | $ 700 |
Segment information - Results f
Segment information - Results for the segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Time charter revenues | $ 34,436 | $ 33,777 | $ 71,122 | $ 69,852 | |
Other revenue | 0 | 0 | 0 | 64 | |
Total revenues | 34,436 | 33,777 | 71,122 | 69,916 | |
Operating expenses | (7,931) | (11,336) | (15,866) | (19,805) | |
Equity in earnings (losses) of joint ventures | 6,475 | (1,575) | (3,572) | (1,223) | |
Depreciation and amortization | (5,234) | (5,589) | (10,516) | (10,912) | |
Operating income (loss) | 27,746 | 15,277 | 41,168 | 37,976 | |
Gain (loss) on debt extinguishment | 0 | 0 | 0 | 1,030 | |
Gain (loss) on derivative instruments | 0 | 0 | 0 | 0 | |
Other financial income (expense), net | (6,646) | (7,610) | (13,632) | (15,294) | |
Income (loss) before tax | 21,100 | 7,667 | 27,536 | 23,712 | |
Income tax benefit (expense) | (1,419) | (1,511) | (2,381) | (3,421) | |
Net income (loss) | 19,681 | 6,156 | 25,155 | 20,291 | |
Preferred unitholders' interest in net income | 3,668 | 3,378 | 7,337 | 6,742 | |
Limited partners' interest in net income (loss) | 16,013 | 2,778 | 17,818 | 13,549 | |
Vessels, net of accumulated depreciation | 630,030 | 630,030 | $ 640,431 | ||
Net investment in financing lease | 276,583 | 276,583 | 278,904 | ||
Goodwill | 251 | 251 | 251 | ||
Advances to joint ventures | 3,988 | 3,988 | 3,831 | ||
Total assets | 984,915 | 984,915 | 1,012,800 | ||
Accumulated earnings of joint ventures | 405 | 405 | 3,270 | ||
Accumulated losses of joint ventures | (707) | (707) | 0 | ||
Expenditures for vessels & equipment | 8 | 8 | 211 | ||
Expenditures for drydocking | 0 | 0 | 3,107 | ||
Impairment/retirement of equipment | 0 | ||||
Principal repayment direct financing lease | 2,226 | 2,226 | 4,168 | ||
Amortization of above market & contract extension | 759 | 905 | 1,664 | 1,800 | 3,631 |
Majority held FSRUs [Member] | |||||
Time charter revenues | 34,436 | 33,777 | 71,122 | 69,852 | |
Other revenue | 64 | ||||
Total revenues | 34,436 | 33,777 | 71,122 | 69,916 | |
Operating expenses | (6,616) | (9,885) | (12,846) | (16,583) | |
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | 27,820 | 23,892 | 58,276 | 53,333 | |
Depreciation and amortization | (5,234) | (5,589) | (10,516) | (10,912) | |
Operating income (loss) | 22,586 | 18,303 | 47,760 | 42,421 | |
Gain (loss) on debt extinguishment | 1,030 | ||||
Gain (loss) on derivative instruments | 0 | 0 | 0 | 0 | |
Other financial income (expense), net | (2,236) | (2,689) | (4,781) | (6,926) | |
Income (loss) before tax | 20,350 | 15,614 | 42,979 | 36,525 | |
Income tax benefit (expense) | (1,419) | (1,511) | (2,381) | (3,421) | |
Net income (loss) | 18,931 | 14,103 | 40,598 | 33,104 | |
Preferred unitholders' interest in net income | 0 | 0 | 0 | 0 | |
Limited partners' interest in net income (loss) | 18,931 | 14,103 | 40,598 | 33,104 | |
Vessels, net of accumulated depreciation | 630,030 | 630,030 | 640,431 | ||
Net investment in financing lease | 276,583 | 276,583 | 278,904 | ||
Goodwill | 251 | 251 | 251 | ||
Advances to joint ventures | 0 | 0 | 0 | ||
Total assets | 979,367 | 979,367 | 996,201 | ||
Accumulated earnings of joint ventures | 0 | 0 | 0 | ||
Accumulated losses of joint ventures | 0 | 0 | |||
Expenditures for vessels & equipment | 8 | 8 | 211 | ||
Expenditures for drydocking | 0 | 0 | 3,107 | ||
Impairment/retirement of equipment | 0 | ||||
Principal repayment direct financing lease | 2,226 | 2,226 | 4,168 | ||
Amortization of above market & contract extension | 759 | 905 | 1,664 | 1,800 | 3,631 |
Joint venture FSRUs [Member] | |||||
Time charter revenues | 12,139 | 10,752 | 22,666 | 21,081 | |
Other revenue | 0 | ||||
Total revenues | 12,139 | 10,752 | 22,666 | 21,081 | |
Operating expenses | (2,660) | (2,233) | (5,812) | (4,112) | |
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | 9,479 | 8,519 | 16,854 | 16,969 | |
Depreciation and amortization | (2,490) | (2,452) | (4,984) | (5,005) | |
Operating income (loss) | 6,989 | 6,067 | 11,870 | 11,964 | |
Gain (loss) on debt extinguishment | 0 | ||||
Gain (loss) on derivative instruments | 2,295 | (4,649) | (9,490) | (7,190) | |
Other financial income (expense), net | (2,921) | (2,993) | (5,952) | (5,997) | |
Income (loss) before tax | 6,363 | (1,575) | (3,572) | (1,223) | |
Income tax benefit (expense) | 112 | 0 | 0 | 0 | |
Net income (loss) | 6,475 | (1,575) | (3,572) | (1,223) | |
Preferred unitholders' interest in net income | 0 | 0 | 0 | 0 | |
Limited partners' interest in net income (loss) | 6,475 | (1,575) | (3,572) | (1,223) | |
Vessels, net of accumulated depreciation | 247,201 | 247,201 | 252,789 | ||
Net investment in financing lease | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Advances to joint ventures | 0 | 0 | 0 | ||
Total assets | 272,396 | 272,396 | 284,174 | ||
Accumulated earnings of joint ventures | 0 | 0 | 0 | ||
Accumulated losses of joint ventures | 0 | 0 | |||
Expenditures for vessels & equipment | 68 | 68 | 195 | ||
Expenditures for drydocking | 2 | 2 | 913 | ||
Impairment/retirement of equipment | (75) | ||||
Principal repayment direct financing lease | 0 | 0 | 0 | ||
Amortization of above market & contract extension | 0 | 0 | 0 | 0 | 0 |
Other Segments [Member] | |||||
Time charter revenues | 0 | 0 | 0 | 0 | |
Other revenue | 0 | ||||
Total revenues | 0 | 0 | 0 | 0 | |
Operating expenses | (1,315) | (1,451) | (3,020) | (3,222) | |
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | (1,315) | (1,451) | (3,020) | (3,222) | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income (loss) | (1,315) | (1,451) | (3,020) | (3,222) | |
Gain (loss) on debt extinguishment | 0 | ||||
Gain (loss) on derivative instruments | 0 | 0 | 0 | 0 | |
Other financial income (expense), net | (4,410) | (4,921) | (8,851) | (8,368) | |
Income (loss) before tax | (5,725) | (6,372) | (11,871) | (11,590) | |
Income tax benefit (expense) | 0 | 0 | 0 | 0 | |
Net income (loss) | (5,725) | (6,372) | (11,871) | (11,590) | |
Preferred unitholders' interest in net income | 0 | 0 | 0 | 0 | |
Limited partners' interest in net income (loss) | (5,725) | (6,372) | (11,871) | (11,590) | |
Vessels, net of accumulated depreciation | 0 | 0 | 0 | ||
Net investment in financing lease | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Advances to joint ventures | 3,988 | 3,988 | 3,831 | ||
Total assets | 5,548 | 5,548 | 16,599 | ||
Accumulated earnings of joint ventures | 25 | 25 | 50 | ||
Accumulated losses of joint ventures | 25 | 25 | |||
Expenditures for vessels & equipment | 0 | 0 | 0 | ||
Expenditures for drydocking | 0 | 0 | 0 | ||
Impairment/retirement of equipment | 0 | ||||
Principal repayment direct financing lease | 0 | 0 | 0 | ||
Amortization of above market & contract extension | 0 | 0 | 0 | 0 | 0 |
Total Segments reporting [Member] | |||||
Time charter revenues | 46,575 | 44,529 | 93,788 | 90,933 | |
Other revenue | 64 | ||||
Total revenues | 46,575 | 44,529 | 93,788 | 90,997 | |
Operating expenses | (10,591) | (13,569) | (21,678) | (23,917) | |
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | 35,984 | 30,960 | 72,110 | 67,080 | |
Depreciation and amortization | (7,724) | (8,041) | (15,500) | (15,917) | |
Operating income (loss) | 28,260 | 22,919 | 56,610 | 51,163 | |
Gain (loss) on debt extinguishment | 1,030 | ||||
Gain (loss) on derivative instruments | 2,295 | (4,649) | (9,490) | (7,190) | |
Other financial income (expense), net | (9,567) | (10,603) | (19,584) | (21,291) | |
Income (loss) before tax | 20,988 | 7,667 | 27,536 | 23,712 | |
Income tax benefit (expense) | (1,307) | (1,511) | (2,381) | (3,421) | |
Net income (loss) | 19,681 | 6,156 | 25,155 | 20,291 | |
Preferred unitholders' interest in net income | 0 | 0 | 0 | 0 | |
Limited partners' interest in net income (loss) | 19,681 | 6,156 | 25,155 | 20,291 | |
Vessels, net of accumulated depreciation | 877,231 | 877,231 | 893,220 | ||
Net investment in financing lease | 276,583 | 276,583 | 278,904 | ||
Goodwill | 251 | 251 | 251 | ||
Advances to joint ventures | 3,988 | 3,988 | 3,831 | ||
Total assets | 1,257,311 | 1,257,311 | 1,296,974 | ||
Accumulated earnings of joint ventures | 25 | 25 | 50 | ||
Accumulated losses of joint ventures | 25 | 25 | |||
Expenditures for vessels & equipment | 76 | 76 | 406 | ||
Expenditures for drydocking | 2 | 2 | 4,020 | ||
Impairment/retirement of equipment | (75) | ||||
Principal repayment direct financing lease | 2,226 | 2,226 | 4,168 | ||
Amortization of above market & contract extension | 759 | 905 | 1,664 | 1,800 | 3,631 |
Eliminations [Member] | |||||
Time charter revenues | (12,139) | (10,752) | (22,666) | (21,081) | |
Other revenue | 0 | ||||
Total revenues | (12,139) | (10,752) | (22,666) | (21,081) | |
Operating expenses | 2,660 | 2,233 | 5,812 | 4,112 | |
Equity in earnings (losses) of joint ventures | 6,475 | (1,575) | (3,572) | (1,223) | |
Depreciation and amortization | 2,490 | 2,452 | 4,984 | 5,005 | |
Gain (loss) on derivative instruments | (2,295) | 4,649 | 9,490 | 7,190 | |
Other financial income (expense), net | 2,921 | 2,993 | 5,952 | 5,997 | |
Income tax benefit (expense) | (112) | 0 | |||
Net income (loss) | 0 | 0 | 0 | 0 | |
Preferred unitholders' interest in net income | 3,668 | 3,378 | 7,337 | 6,742 | |
Limited partners' interest in net income (loss) | (3,668) | $ (3,378) | (7,337) | (6,742) | |
Vessels, net of accumulated depreciation | (247,201) | (247,201) | (252,789) | ||
Net investment in financing lease | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Advances to joint ventures | 0 | 0 | 0 | ||
Total assets | (272,396) | (272,396) | (284,174) | ||
Accumulated earnings of joint ventures | 380 | 380 | 3,220 | ||
Accumulated losses of joint ventures | (732) | (732) | |||
Expenditures for vessels & equipment | (68) | (68) | (195) | ||
Expenditures for drydocking | (2) | (2) | (913) | ||
Impairment/retirement of equipment | 75 | ||||
Principal repayment direct financing lease | $ 0 | 0 | 0 | ||
Amortization of above market & contract extension | $ 0 | $ 0 | $ 0 |
Segment information - Additiona
Segment information - Additional information (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 | May 28, 2019 | Jan. 29, 2018 | Aug. 31, 2014 |
Revolving credit facility | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85 | $ 85 | $ 85 | ||
Revolving credit facility | Hoegh LNG [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85 | ||||
$385 Million Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385 | ||||
Neptune and the Cape Ann | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Time charter revenues and rel_3
Time charter revenues and related contract balances - Disaggregated revenue by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Lease revenues, excluding amortization | $ 21,935 | $ 21,239 | $ 44,393 | $ 43,614 | |
Time charter service revenues, excluding amortization | 13,260 | 13,443 | 28,393 | 28,038 | |
Amortization of above market & contract extension intangibles | (759) | (905) | (1,664) | (1,800) | $ (3,631) |
Amortization of deferred revenue for modifications & drydock | 0 | 0 | 0 | 0 | |
Other revenue | 0 | 0 | 0 | 64 | |
Total revenues | 34,436 | 33,777 | 71,122 | 69,916 | |
Majority held FSRUs [Member] | |||||
Lease revenues, excluding amortization | 21,935 | 21,239 | 44,393 | 43,614 | |
Time charter service revenues, excluding amortization | 13,260 | 13,433 | 28,393 | 28,038 | |
Amortization of above market & contract extension intangibles | (759) | (905) | (1,664) | (1,800) | (3,631) |
Amortization of deferred revenue for modifications & drydock | 0 | 0 | 0 | 0 | |
Other revenue | 64 | ||||
Total revenues | 34,436 | 33,777 | 71,122 | 69,916 | |
Joint venture FSRUs [Member] | |||||
Lease revenues, excluding amortization | 6,405 | 6,405 | 12,810 | 12,739 | |
Time charter service revenues, excluding amortization | 5,054 | 3,713 | 8,507 | 6,990 | |
Amortization of above market & contract extension intangibles | 0 | 0 | 0 | 0 | 0 |
Amortization of deferred revenue for modifications & drydock | 680 | 634 | 1,349 | 1,352 | |
Other revenue | 0 | ||||
Total revenues | 12,139 | 10,752 | 22,666 | 21,081 | |
Other Segments [Member] | |||||
Lease revenues, excluding amortization | 0 | 0 | 0 | 0 | |
Time charter service revenues, excluding amortization | 0 | 0 | 0 | 0 | |
Amortization of above market & contract extension intangibles | 0 | 0 | 0 | 0 | 0 |
Amortization of deferred revenue for modifications & drydock | 0 | 0 | 0 | 0 | |
Other revenue | 0 | ||||
Total revenues | 0 | 0 | 0 | 0 | |
Total Segments reporting [Member] | |||||
Lease revenues, excluding amortization | 28,340 | 27,644 | 57,203 | 56,353 | |
Time charter service revenues, excluding amortization | 18,314 | 17,156 | 36,900 | 35,028 | |
Amortization of above market & contract extension intangibles | (759) | (905) | (1,664) | (1,800) | (3,631) |
Amortization of deferred revenue for modifications & drydock | 680 | 634 | 1,349 | 1,352 | |
Other revenue | 64 | ||||
Total revenues | 46,575 | 44,529 | 93,788 | 90,997 | |
Eliminations [Member] | |||||
Lease revenues, excluding amortization | (6,405) | (6,405) | (12,810) | (12,739) | |
Time charter service revenues, excluding amortization | (5,054) | (3,713) | (8,507) | (6,990) | |
Amortization of above market & contract extension intangibles | 0 | 0 | $ 0 | ||
Amortization of deferred revenue for modifications & drydock | (680) | (634) | (1,349) | (1,352) | |
Other revenue | 0 | ||||
Total revenues | $ (12,139) | $ (10,752) | $ (22,666) | $ (21,081) |
Time charter revenues and rel_4
Time charter revenues and related contract balances - Allocation of consolidated receivables between lease and service (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2020 | |
Time charter revenues and related contract balances | ||
Trade receivable for lease | $ 2,898 | $ 5,233 |
Trade receivable for time charter services | 2,133 | 4,794 |
Allowance for expected credit losses | 0 | (60) |
Total trade receivable and amounts due from affiliates | 5,031 | $ 9,967 |
Impairment losses for trade receivables | $ 0 |
Time charter revenues and rel_5
Time charter revenues and related contract balances - Consolidated contract assets, contract liabilities and refund liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Reduction for revenue recognized from previous years | $ 497 | |
Repayments of refund liabilities to charterer | 1,101 | |
Time Charter Services [Member] | ||
Beginning Balance | $ 279 | 0 |
Additions | 0 | 279 |
Reduction for receivables recorded | (18) | 0 |
Reduction for revenue recognized from previous years | 0 | 0 |
Repayments of refund liabilities to charterer | 0 | |
Ending Balance | 261 | 279 |
Beginning Balance | (125) | (1,834) |
Additions | (718) | (65) |
Reduction for receivables recorded | 0 | 89 |
Reduction for revenue recognized from previous years | 48 | 497 |
Repayments of refund liabilities to charterer | 17 | 1,188 |
Ending Balance | $ (778) | $ (125) |
Time charter revenues and rel_6
Time charter revenues and related contract balances - Direct financing lease receivable and unguaranteed residual value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2020 | |
Direct financing lease | ||
Minimum lease payments | $ 589,074 | $ 589,074 |
Unguaranteed residual value | 146,000 | 146,000 |
Unearned income | (440,345) | (440,345) |
Initial direct cost, net | 3,095 | 3,095 |
Net investment in direct financing lease | 297,824 | 297,824 |
Principal repayment and amortization | (18,920) | (21,145) |
Allowance for credit loss | 0 | (96) |
Net investment in direct financing lease at period end | 278,904 | 276,583 |
Less: Current portion | (4,551) | (4,756) |
Long term net investment in direct financing lease | 274,353 | 271,827 |
Net investment in direct financing lease consists of: | ||
Financing lease receivable | 240,000 | 235,906 |
Unguaranteed residual value | 38,904 | 40,677 |
Net investment in direct financing lease at period end | 278,904 | $ 276,583 |
Impairment losses for financing lease | $ 0 |
Financial income (expense), n_3
Financial income (expense), net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Financial income (expense), net | ||||
Interest income | $ 163 | $ 297 | $ 335 | $ 496 |
Interest expense: | ||||
Interest expense | (5,710) | (6,361) | (11,594) | (12,609) |
Commitment fees | (34) | (148) | (69) | (260) |
Amortization of debt issuance cost and fair value of debt assumed | (578) | (639) | (1,170) | (1,115) |
Total interest expense | (6,322) | (7,148) | (12,833) | (13,984) |
Gain (loss) on debt extinguishment | 0 | 0 | 0 | 1,030 |
Other items, net: | ||||
Foreign exchange gain (loss) | 166 | (36) | 214 | (55) |
Bank charges, fees and other | (41) | (85) | (127) | (138) |
Withholding tax on interest expense and other | (612) | (638) | (1,221) | (1,613) |
Total other items, net | (487) | (759) | (1,134) | (1,806) |
Total financial income (expense), net | (6,646) | $ (7,610) | (13,632) | $ (14,264) |
Debt Instrument, Financial Covenants | $ 385,000 | $ 385,000 |
Income tax (Details)
Income tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2019 | |
Income tax expense | $ 1,419 | $ 1,511 | $ 2,381 | $ 3,421 | ||
Reduction of the tax rate | 22.00% | 25.00% | ||||
Non-cash income tax expense | 218 | 220 | $ 423 | 422 | ||
Increases in uncertain tax positions | 96 | $ 101 | 193 | $ 211 | ||
Unrecognized tax benefits | $ 2,476 | $ 2,476 | $ 2,283 | |||
Scenario, Forecast [Member] | ||||||
Reduction of the tax rate | 22.00% |
Investments in joint ventures_2
Investments in joint ventures (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Investments in joint ventures | ||
Accumulated earnings of joint ventures | $ 405 | $ 3,270 |
Accumulated losses of joint ventures | $ (707) | $ 0 |
Investments in joint ventures -
Investments in joint ventures - Additional Information (Details) | Jun. 30, 2020 |
SRV Joint Gas Ltd [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
SRV Joint Gas Two Ltd [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Investments in joint ventures_3
Investments in joint ventures - Combined joint ventures on an aggregated basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Time charter revenues | $ 34,436 | $ 33,777 | $ 71,122 | $ 69,852 | ||
Operating expenses | (7,931) | (11,336) | (15,866) | (19,805) | ||
Depreciation and amortization | (5,234) | (5,589) | (10,516) | (10,912) | ||
Operating income | 27,746 | 15,277 | 41,168 | 37,976 | ||
Unrealized gain (loss) on derivative instruments | 0 | 0 | 0 | 0 | ||
Income (loss) before tax | 21,100 | 7,667 | 27,536 | 23,712 | ||
Income tax expense | 1,419 | 1,511 | 2,381 | 3,421 | ||
Net income (loss) | 19,681 | 6,156 | 25,155 | 20,291 | ||
Equity in earnings (losses) of joint ventures | 6,475 | (1,575) | (3,572) | (1,223) | ||
Cash and cash equivalents | 25,623 | 27,137 | 25,623 | 27,137 | $ 39,126 | $ 26,326 |
Restricted cash | 6,021 | 8,011 | 6,021 | 8,011 | 8,066 | 6,003 |
Total current assets | 49,701 | 49,701 | 59,771 | |||
Restricted cash | 12,369 | 12,887 | 12,369 | 12,887 | 12,627 | $ 13,125 |
Vessels, net of accumulated depreciation | 630,030 | 630,030 | 640,431 | |||
Total long-term assets | 935,214 | 935,214 | 953,029 | |||
Current portion of long-term debt | 44,660 | 44,660 | 44,660 | |||
Derivative financial instruments | 7,208 | 7,208 | 2,907 | |||
Refund liabilities | 778 | 778 | 125 | |||
Total current liabilities | 64,736 | 64,736 | 63,253 | |||
Long-term debt | 391,141 | 391,141 | 412,301 | |||
Derivative instruments | 23,652 | 23,652 | 12,028 | |||
Total long-term liabilities | 436,091 | 436,091 | 448,037 | |||
Accumulated losses of joint ventures | (707) | (707) | $ 0 | |||
Srv Joint Gas Limited And Srv Joint Gas Two Limited [Member] | ||||||
Time charter revenues | 24,278 | 21,504 | 45,331 | 42,162 | ||
Operating expenses | (5,319) | (4,467) | (11,623) | (8,226) | ||
Depreciation and amortization | (5,133) | (5,058) | (10,275) | (10,317) | ||
Operating income | 13,826 | 11,979 | 23,433 | 23,619 | ||
Unrealized gain (loss) on derivative instruments | 4,589 | (9,297) | (18,979) | (14,379) | ||
Other financial expense, net | (5,842) | (5,985) | (11,905) | (11,994) | ||
Income (loss) before tax | 12,573 | (3,303) | (7,451) | (2,754) | ||
Income tax expense | 223 | 0 | 0 | 0 | ||
Net income (loss) | $ 12,796 | $ (3,303) | $ (7,451) | $ (2,754) | ||
Share of joint ventures owned | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |
Share of joint ventures net income (loss) before eliminations | $ 6,398 | $ (1,652) | $ (3,726) | $ (1,377) | ||
Eliminations | 77 | 77 | 154 | 154 | ||
Equity in earnings (losses) of joint ventures | 6,475 | $ (1,575) | (3,572) | $ (1,223) | ||
Cash and cash equivalents | 14,763 | 14,763 | $ 17,897 | |||
Restricted cash | 8,681 | 8,681 | 9,250 | |||
Other current assets | 1,033 | 1,033 | 973 | |||
Total current assets | 24,477 | 24,477 | 28,120 | |||
Restricted cash | 25,913 | 25,913 | 34,650 | |||
Vessels, net of accumulated depreciation | 509,576 | 509,576 | 521,060 | |||
Total long-term assets | 535,489 | 535,489 | 555,710 | |||
Current portion of long-term debt | 29,186 | 29,186 | 28,297 | |||
Amounts and loans due to owners and affiliates | 886 | 886 | 629 | |||
Derivative financial instruments | 15,011 | 15,011 | 13,089 | |||
Refund liabilities | 7,643 | 7,643 | 26,691 | |||
Other current liabilities | 9,445 | 9,445 | 10,327 | |||
Total current liabilities | 62,171 | 62,171 | 79,033 | |||
Long-term debt | 360,434 | 360,434 | 375,091 | |||
Loans due to owners and affiliates | 7,976 | 7,976 | 7,663 | |||
Derivative instruments | 76,127 | 76,127 | 59,070 | |||
Other long-term liabilities | 38,689 | 38,689 | 40,952 | |||
Total long-term liabilities | 483,226 | 483,226 | 482,776 | |||
Net liabilities | 14,569 | 14,569 | 22,021 | |||
Share of joint ventures net liabilities before eliminations | 7,285 | 7,285 | 11,011 | |||
Eliminations | (7,587) | (7,587) | (7,741) | |||
Accumulated losses of joint ventures | $ (302) | $ (302) | $ 3,270 |
Advances to joint ventures (Det
Advances to joint ventures (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Advances to joint ventures | ||
Current portion of advances to joint ventures | $ 0 | $ 0 |
Long-term advances to joint ventures | 3,988 | 3,831 |
Advances/shareholder loans to joint ventures | $ 3,988 | $ 3,831 |
Advances to joint ventures - Ad
Advances to joint ventures - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 3,988 | $ 3,831 |
Debt Service Coverage Ratio | 1.20% | |
SRV Joint Gas Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 3,200 | 3,000 |
Debt Service Coverage Ratio | 1.20% | |
SRV Joint Gas Two Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 800 | $ 800 |
Long-term debt (Details)
Long-term debt (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Outstanding principal | $ 443,794 | $ 466,124 |
Total debt | 435,801 | 456,961 |
Less: Current portion of long-term debt | (44,660) | (44,660) |
Long-term debt | 391,141 | 412,301 |
Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (3,633) | (4,309) |
Total debt | 103,858 | 112,713 |
$385 Million Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (4,360) | (4,854) |
Commercial tranche [Member] | $385 Million Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 240,170 | 249,635 |
Export Credit Tranche [Member] | Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 86,767 | 94,210 |
Export Credit Tranche [Member] | $385 Million Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 47,833 | 51,167 |
FSRU Tranche [Member] | Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 20,724 | 22,812 |
Revolving credit facility | $385 Million Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 48,300 | $ 48,300 |
Long-term debt - Additional Inf
Long-term debt - Additional Information 1 (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2020 | May 28, 2019 | Jan. 29, 2018 | Aug. 31, 2014 | |
Line of Credit Facility [Line Items] | ||||
Loan Covenant, Security Maintenance Percentage to Loans Outstanding | 125.00% | |||
$385 Million Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate borrowing capacity | $ 385 | |||
Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate borrowing capacity | $ 85 | $ 85 | $ 85 |
Accrued liabilities and payab_3
Accrued liabilities and payables (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accrued liabilities and payables | ||
Accrued administrative and operating expenses | $ 3,143 | $ 3,314 |
Accrued interest | 2,651 | 2,850 |
Refund liabilities | 778 | 125 |
Accrued property tax | 489 | 3,033 |
Current tax payable | 418 | 818 |
Lease liability | 45 | 75 |
Other accruals and payables | 232 | 949 |
Total accrued liabilities and other payables | $ 7,756 | $ 11,164 |
Related party transactions - St
Related party transactions - Statement of income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Time charter revenue Hoegh Gallant | $ 34,436 | $ 33,777 | $ 71,122 | $ 69,852 |
Operating expenses | ||||
Vessel operating expenses | (5,776) | (9,064) | (11,283) | (14,957) |
Interest income from joint ventures | 163 | 297 | 335 | 496 |
Interest expense and commitment fees to Hoegh LNG | (6,322) | (7,148) | (12,833) | (13,984) |
Total | 19,681 | 6,156 | 25,155 | 20,291 |
Hoegh Gallant [Member] | ||||
Revenues | ||||
Time charter revenue Hoegh Gallant | 11,112 | 10,131 | 23,415 | 22,310 |
Hoegh LNG and Subsidiaries [Member] | ||||
Operating expenses | ||||
Vessel operating expenses | (5,192) | (5,417) | (9,531) | (10,706) |
Hours, travel expense and overhead and Board of Directors' fees | (982) | (773) | (2,129) | (2,131) |
Interest income from joint ventures | 79 | 73 | 157 | 143 |
Interest expense and commitment fees to Hoegh LNG | (57) | (686) | (196) | (1,354) |
Total | $ 4,960 | $ 3,328 | $ 11,716 | $ 8,262 |
Related party transactions - Ba
Related party transactions - Balance sheet (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Contribution from Hegh LNG | $ 8,600 | ||||
Repayment of indemnifications received from Hoegh LNG | $ 0 | $ (64) | 0 | $ (64) | $ (64) |
Issuance of units for Board of Directors' fees | 194 | ||||
Other and contribution from owner | 225 | 225 | 485 | ||
Equity: Total | $ 8,825 | 8,825 | 615 | ||
Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Issuance of units for Board of Directors' fees | 0 | 194 | |||
Hoegh LNG and Subsidiaries [Member] | |||||
Related Party Transaction [Line Items] | |||||
Contribution from Hegh LNG | 8,600 | 0 | |||
Repayment of indemnifications received from Hoegh LNG | $ 0 | $ (64) |
Related party transactions - Re
Related party transactions - Receivables and payables from related parties (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Related party transactions | ||
Amounts due from affiliates | $ 5,701 | $ 4,296 |
Amounts due to owners and affiliates | $ 3,627 | $ 2,513 |
Related party transactions - _2
Related party transactions - Revolving credit facility (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Related party transactions | ||
Revolving credit facility due to owners and affiliates | $ 4,749 | $ 8,792 |
Related party transactions - Ad
Related party transactions - Additional Information (Details) - USD ($) $ in Thousands | Aug. 06, 2020 | Apr. 24, 2020 | Apr. 08, 2020 | Mar. 26, 2020 | Jun. 04, 2019 | May 28, 2019 | Mar. 21, 2019 | Sep. 14, 2018 | Mar. 23, 2018 | Aug. 31, 2020 | Mar. 21, 2019 | Aug. 31, 2014 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jan. 29, 2018 | Dec. 01, 2017 | Jan. 03, 2017 |
Related Party Transaction [Line Items] | |||||||||||||||||||||
Partners' Capital Account, Unit-based Compensation | $ 194 | ||||||||||||||||||||
Repayment of Indemnifications Received From Hoegh Lng | $ 0 | $ 64 | $ 0 | $ 64 | 64 | ||||||||||||||||
Director [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Partners' Capital Account, Unit-based Compensation | $ 0 | $ 194 | |||||||||||||||||||
Chief Executive Officer Chief Financial Officer [Member] | Phantom Units [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Units granted | 15,378 | 8,100 | 10,917 | 28,018 | 14,584 | 15,378 | 10,917 | 9,723 | |||||||||||||
Hoegh LNG [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Insurance Recoveries | $ 60 | ||||||||||||||||||||
Revolving credit facility | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85,000 | $ 85,000 | $ 85,000 | ||||||||||||||||||
Line of Credit Facility, Original Expiration Date | Jan. 1, 2020 | ||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jan. 1, 2023 | ||||||||||||||||||||
Hoegh LNG and Subsidiaries [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 14,200 | $ 14,200 | |||||||||||||||||||
LP Long Term Incentive Plan [Member] | Director [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Partners' Capital Account, Units, Unit-based Compensation | 11,180 | ||||||||||||||||||||
Total Board of Directors' fees | $ 194 | ||||||||||||||||||||
Hoegh LNG [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Reduction of loan | $ 8,600 | ||||||||||||||||||||
Amount drew | $ 4,500 | ||||||||||||||||||||
Insurance Recoveries | $ 60 | ||||||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 51.00% | |||||||||||||||||||
Hoegh LNG [Member] | Revolving credit facility | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85,000 | $ 85,000 | |||||||||||||||||||
Interest rate basis spread | 3.00% | 1.40% | |||||||||||||||||||
Hoegh LNG [Member] | Revolving Credit Facility Maturing at 2021 and Thereafter [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Interest rate basis spread | 4.00% |
Financial Instruments - Estimat
Financial Instruments - Estimated fair value and carrying value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 25,623 | $ 39,126 | $ 27,137 | $ 26,326 |
Restricted cash | 18,390 | 20,693 | ||
Amounts due from affiliate | 5,701 | 4,296 | ||
Derivative instruments | (30,860) | (14,935) | ||
Advances (shareholder loans) to joint ventures | 3,988 | 3,831 | ||
Current amounts due to owners and affiliates | (3,627) | (2,513) | ||
Long-term Debt | (435,801) | (456,961) | ||
Revolving credit facility due to owners and affiliates | (4,749) | (8,792) | ||
Lampung Facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | (103,858) | (112,713) | ||
385 million facility | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
$385 million facility | (331,943) | (344,248) | ||
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 25,623 | 39,126 | ||
Restricted cash | 18,390 | 20,693 | ||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative instruments | (30,860) | (14,935) | ||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amounts due from affiliate | 5,701 | 4,296 | ||
Advances (shareholder loans) to joint ventures | 4,121 | 4,029 | ||
Current amounts due to owners and affiliates | (3,627) | (2,513) | ||
Revolving credit facility due to owners and affiliates | (4,735) | (8,717) | ||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | Lampung Facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | (109,270) | (119,598) | ||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | 385 million facility | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
$385 million facility | $ (340,686) | $ (352,219) |
Risk management, derivative i_3
Risk management, derivative instruments and concentrations of risk - Interest rate swap agreements (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
2.941% Interest Rate [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional amount | $ 59,130 |
Derivative Liability, Fair Value carrying amount assets | $ (6,369) |
Derivative, Term | Jan 2026 |
Derivative, Fixed interest rate | 2.941% |
2.838% Interest Rate [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional amount | $ 59,130 |
Derivative Liability, Fair Value carrying amount assets | $ (5,961) |
Derivative, Term | Oct 2025 |
Derivative, Fixed interest rate | 2.838% |
2.735% Interest Rate [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional amount | $ 59,130 |
Derivative Liability, Fair Value carrying amount assets | $ (5,864) |
Derivative, Term | Jan 2026 |
Derivative, Fixed interest rate | 2.735% |
2.650% Interest Rate [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional amount | $ 59,130 |
Derivative Liability, Fair Value carrying amount assets | $ (5,655) |
Derivative, Term | Jan 2026 |
Derivative, Fixed interest rate | 2.65% |
Lampung [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional amount | $ 107,491 |
Derivative Liability, Fair Value carrying amount assets | $ (7,011) |
Derivative, Term | Sep 2026 |
Derivative, Fixed interest rate | 2.80% |
Risk management, derivative i_4
Risk management, derivative instruments and concentrations of risk - Fair value of derivative instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | $ (7,208) | $ (2,907) |
Derivative Liability, Noncurrent | (23,652) | (12,028) |
Interest rate swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 0 | 0 |
Derivative Asset, Noncurrent | 0 | 0 |
Derivative Liability, Current | (7,208) | (2,907) |
Derivative Liability, Noncurrent | $ (23,652) | $ (12,028) |
Risk management, derivative i_5
Risk management, derivative instruments and concentrations of risk - Cash flow hedge accounting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Gain (loss) on interest rate swaps in cash flow hedging relationships: | ||||
Reclassification from accumulated other comprehensive income included in hedge effectiveness | $ 1,810 | $ (112) | ||
Reclassification from accumulated other comprehensive income included in hedge effectiveness, tax | $ 0 | $ 0 | 0 | 0 |
Amortization of amount excluded from hedge effectiveness, tax | 0 | 0 | 0 | 0 |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach | 512 | 475 | ||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, tax | 53 | 54 | 129 | 117 |
Settlement of cash flow hedge, tax | 0 | 0 | ||
Total gains (losses) on derivative instruments, tax | 53 | 54 | 129 | 117 |
Interest Expense [Member] | ||||
Gain (loss) on interest rate swaps in cash flow hedging relationships: | ||||
Reclassification from accumulated other comprehensive income included in hedge effectiveness | (1,022) | (113) | (1,810) | (112) |
Amortization of amount excluded from hedge effectiveness | 235 | 224 | 400 | 468 |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach | (256) | (248) | (512) | (475) |
Settlement of cash flow hedge | 0 | 199 | ||
Total gains (losses) on derivative instruments | $ (1,043) | $ (137) | $ (1,922) | $ 80 |
Risk management, derivative i_6
Risk management, derivative instruments and concentrations of risk - Effect of cash flow hedge accounting on accumulated other comprehensive income (OCI) and earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Beginning Balance, Before tax gains (losses) | $ (18,119) | $ (18,836) | $ (5,902) | ||
Initial value of interest rate swap to be recognized in earnings on amortization approach, Before tax gains (losses) | (625) | ||||
Effective portion of unrealized loss on cash flow hedge, Before tax gains (losses) | (18,136) | (12,896) | |||
Reclassification from accumulated other comprehensive income included in hedge effectiveness | 1,810 | (112) | |||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Before tax gains (losses) | 512 | 475 | |||
Other comprehensive income for period, Before tax gains (losses) | (15,814) | 717 | (12,934) | ||
Ending Balance, Before tax gains (losses) | $ (33,933) | $ (18,836) | (33,933) | (18,119) | (18,836) |
Beginning Balance, Tax benefit (expense) | 176 | 448 | (565) | ||
Initial value of interest rate swap to be recognized in earnings on amortization approach, Tax benefit (expense) | 0 | 0 | 0 | 0 | |
Effective portion of unrealized loss on cash flow hedge, Tax benefit (expense) | 0 | 0 | |||
Reclassification of amortization of cash flow hedge to earnings, Tax benefit (expense) | 0 | 0 | 0 | 0 | |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Tax benefit (expense) | (53) | (54) | (129) | (117) | |
Other comprehensive income for period, Tax benefit (expense) | (129) | (272) | (117) | ||
Ending Balance, Tax benefit (expense) | 47 | 448 | 47 | 176 | 448 |
Beginning Balance, Net of tax | (17,943) | (18,388) | (5,337) | ||
Initial value of interest rate swap to be recognized in earnings on amortization approach, Net of tax | (625) | ||||
Effective portion of unrealized loss on cash flow hedge, Net of tax | (18,136) | (12,896) | |||
Reclassification of amortization of cash flow hedge to earnings, Net of tax | 112 | ||||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Net of tax | 1,810 | ||||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Net of tax | 383 | 358 | |||
Other comprehensive income for period, Net of tax | (15,943) | 445 | (13,051) | ||
Ending Balance, Net of tax | (33,886) | (18,388) | (33,886) | (17,943) | (18,388) |
Gain (loss) reclassified to earnings, tax | 129 | 117 | 117 | ||
Estimated amortization of accumulated other comprehensive income to earnings for the next twelve months | 8,200 | ||||
Interest Expense [Member] | |||||
Reclassification from accumulated other comprehensive income included in hedge effectiveness | (1,022) | (113) | (1,810) | (112) | |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Before tax gains (losses) | $ (256) | $ (248) | (512) | (475) | |
Reclassification of amortization of cash flow hedge to earnings, Net of tax | $ (112) | ||||
Gain (loss) reclassified to earnings | $ (2,322) | $ (587) |
Risk management, derivative i_7
Risk management, derivative instruments and concentrations of risk - Additional Information (Details) - USD ($) $ in Millions | Mar. 17, 2014 | Dec. 29, 2014 | Dec. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Feb. 28, 2019 |
Debt Instrument, Financial Covenants | $ 385 | |||||
$385 million facility [Member] | ||||||
Derivative, Notional Amount | $ 130 | $ 127.7 | ||||
Derivative, Term of Contract | 7 years | |||||
Debt Instrument, Financial Covenants | $ 385 | $ 385 | ||||
2.941% rate [Member] | ||||||
Derivative, Notional Amount | $ 65 | |||||
2.838% rate [Member] | ||||||
Derivative, Notional Amount | $ 65 | |||||
Lampung Facility [Member] | ||||||
Derivative, Notional Amount | $ 237.1 | |||||
Derivative, Term of Contract | 12 years | |||||
Derivative, Fixed Interest Rate | 2.80% | |||||
Repayments of Secured Debt | $ 7.9 | |||||
Interest rate swap [Member] | ||||||
Derivative, Notional Amount | 127.7 | |||||
Interest rate swap [Member] | $385 million facility [Member] | ||||||
Derivative, Notional Amount | 63.8 | |||||
Interest rate swap [Member] | 2.735% Fixed interest [Member] | ||||||
Derivative, Notional Amount | $ 63.8 | |||||
Interest rate swap [Member] | Maximum [Member] | $385 million facility [Member] | ||||||
Derivative, Fixed Interest Rate | 2.941% | 2.65% | ||||
Interest rate swap [Member] | Minimum [Member] | $385 million facility [Member] | ||||||
Derivative, Fixed Interest Rate | 2.838% | 2.735% |
Commitments and contingencies (
Commitments and contingencies (Details) - USD ($) $ in Thousands | Apr. 08, 2020 | Apr. 07, 2020 | Sep. 30, 2017 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Repayment of Indemnifications Received From Hoegh Lng | $ 0 | $ 64 | $ 0 | $ 64 | $ 64 | |||||
Settlement of boil-off claim | $ 8,600 | |||||||||
Annual Property Tax Payable | $ 600 | |||||||||
Unrecognized tax benefits for uncertain tax positions | 2,476 | $ 2,283 | $ 2,476 | $ 2,283 | ||||||
Income tax examination, year under examination | 5 years | |||||||||
Exposure to property tax and penalties | $ 3,000 | |||||||||
Corporate Joint Venture [Member] | ||||||||||
Loss Contingency, Liability associated with the Boil of Claim | $ 23,700 | 23,700 | 23,700 | |||||||
Settlement of boil-off claim | 17,200 | |||||||||
Remaining settlement due | $ 6,500 | |||||||||
Hoegh LNG [Member] | ||||||||||
Insurance Recoveries | $ 60 | |||||||||
Reduction of loan | $ 8,600 | |||||||||
Hoegh LNG [Member] | ||||||||||
Insurance Recoveries | $ 60 | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 50.00% | |||||||||
Hoegh LNG [Member] | Corporate Joint Venture [Member] | ||||||||||
Loss Contingency Accrual | $ 11,900 | $ 11,900 | $ 11,900 | |||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 50.00% | 50.00% |
Supplemental cash flow inform_3
Supplemental cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental disclosure of non-cash investing activities | ||||
Non-cash expenditures for vessel and other equipment | $ 0 | $ (43) | $ 0 | $ (43) |
Supplemental disclosure of non-cash financing activities | ||||
Non-cash indemnifications received | $ 8,600 | $ 0 | $ 8,600 | $ 0 |
Issuance of common units and _3
Issuance of common units and Series A Preferred Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 30 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Oct. 18, 2019 | Jan. 26, 2018 | |
Proceeds from Issuance of Common Limited Partners Units | $ 0 | $ 1,029 | $ 0 | $ 1,029 | ||||
Compensation Paid to Agent | $ 1,000 | |||||||
Maximum Offering Amount | $ 120,000 | $ 120,000 | ||||||
Agent [Member] | ||||||||
Sales Commissions | $ 40 | $ 40 | ||||||
Common Stock [Member] | ||||||||
Partners' Capital Account, Units, Sale of Units | 0 | 53,160 | 306,266 | |||||
Proceeds from Issuance of Common Limited Partners Units | $ 1,000 | $ 5,600 | ||||||
Average Gross Sales Price Per Share | $ 0 | $ 19.60 | $ 0 | |||||
8.75% Series A Preferred Units [Member] | ||||||||
Partners' Capital Account, Units, Sale of Units | 82,409 | 51,267 | 2,107,999 | |||||
Proceeds from Issuance of Preferred Limited Partners Units | $ 2,100 | $ 1,300 | $ 53,900 | |||||
Average Gross Sales Price Per Share | $ 26.25 | $ 26.14 |
Issuance of common units and _4
Issuance of common units and Series A Preferred Units - Net proceeds (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Gross proceeds for units issued | $ 2,163 |
Less: Commissions | (38) |
Net proceeds for units issued | 2,125 |
Common units [Member] | |
Gross proceeds for units issued | 0 |
Less: Commissions | 0 |
Net proceeds for units issued | 0 |
8.75% Series A Preferred Units [Member] | |
Gross proceeds for units issued | 2,163 |
Less: Commissions | (38) |
Net proceeds for units issued | $ 2,125 |
Common, subordinated and pref_3
Common, subordinated and preferred units - Movements (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Common Unit Public [Member] | ||
Common And Subordinated Units [Line Items] | ||
Beginning Balance | 18,028,786 | 17,944,701 |
Awards to non-employee directors as compensation for directors' fees | 8,944 | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 0 | |
ATM program | 0 | 53,160 |
Ending Balance | 18,028,786 | 18,028,786 |
Common Unit Public [Member] | Director [Member] | ||
Common And Subordinated Units [Line Items] | ||
Awards to non-employee directors as compensation for directors' fees | 2,236 | |
Common Unit Public [Member] | Phantom Share Units (PSUs) [Member] | ||
Common And Subordinated Units [Line Items] | ||
Phantom units issued | 19,745 | |
Common units Hoegh LNG [Member] | ||
Common And Subordinated Units [Line Items] | ||
Beginning Balance | 15,257,498 | 2,101,438 |
Awards to non-employee directors as compensation for directors' fees | 0 | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 13,156,060 | |
ATM program | 0 | 0 |
Ending Balance | 15,257,498 | 15,257,498 |
Common units Hoegh LNG [Member] | Director [Member] | ||
Common And Subordinated Units [Line Items] | ||
Awards to non-employee directors as compensation for directors' fees | 0 | |
Common units Hoegh LNG [Member] | Phantom Share Units (PSUs) [Member] | ||
Common And Subordinated Units [Line Items] | ||
Phantom units issued | 0 | |
Subordinated Units Hoegh LNG [Member] | ||
Common And Subordinated Units [Line Items] | ||
Beginning Balance | 0 | 13,156,060 |
Awards to non-employee directors as compensation for directors' fees | 0 | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | (13,156,060) | |
ATM program | 0 | 0 |
Ending Balance | 0 | 0 |
Subordinated Units Hoegh LNG [Member] | Director [Member] | ||
Common And Subordinated Units [Line Items] | ||
Awards to non-employee directors as compensation for directors' fees | 0 | |
Subordinated Units Hoegh LNG [Member] | Phantom Share Units (PSUs) [Member] | ||
Common And Subordinated Units [Line Items] | ||
Phantom units issued | 0 | |
8.75% Series A Preferred Units [Member] | ||
Common And Subordinated Units [Line Items] | ||
Beginning Balance | 6,625,590 | 6,129,070 |
Awards to non-employee directors as compensation for directors' fees | 0 | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 0 | |
ATM program | 82,409 | 496,520 |
Ending Balance | 6,707,999 | 6,625,590 |
8.75% Series A Preferred Units [Member] | Director [Member] | ||
Common And Subordinated Units [Line Items] | ||
Awards to non-employee directors as compensation for directors' fees | 0 | |
8.75% Series A Preferred Units [Member] | Phantom Share Units (PSUs) [Member] | ||
Common And Subordinated Units [Line Items] | ||
Phantom units issued | 0 |
Common, subordinated and pref_4
Common, subordinated and preferred units - Additional information (Details) - $ / shares | Oct. 05, 2022 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Series A Preferred Stock [Member] | Scenario, Forecast [Member] | ||||
Common And Subordinated Units [Line Items] | ||||
Preferred Stock, Liquidation Preference Per Share | $ 25 | |||
Preferred Stock, Redemption Price Per Share | $ 25 | |||
Preferred stock distribution rate, Percentage | 8.75% | |||
Partners Capital Distribution Amount Per Unit | $ 2.1875 | |||
Preferred Stock, Par or Stated Value Per Share | $ 25 | |||
Common units Hoegh LNG [Member] | ||||
Common And Subordinated Units [Line Items] | ||||
Partners Capital Account, Units | 15,257,498 | 15,257,498 | 2,101,438 | |
Subordinated Units Hoegh LNG [Member] | ||||
Common And Subordinated Units [Line Items] | ||||
Partners Capital Account, Units | 15,257,498 |
Earning per unit and cash dis_3
Earning per unit and cash distributions - Calculation of basic and diluted earnings per unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 19,681 | $ 6,156 | $ 25,155 | $ 20,291 |
Adjustment for: | ||||
Preferred unitholders' interest in net income | 3,668 | 3,378 | 7,337 | 6,742 |
Limited partners' interest in net income | 16,013 | 2,778 | 17,818 | 13,549 |
Less: Dividends paid or to be paid | (15,045) | (15,036) | (30,091) | (30,068) |
Under (over) distributed earnings attributable to: | ||||
Distributed Earnings | 968 | (12,258) | (12,273) | (16,519) |
Common Unit Public [Member] | ||||
Under (over) distributed earnings attributable to: | ||||
Distributed Earnings | $ 524 | $ (6,636) | $ (6,647) | $ (8,942) |
Basic weighted average units outstanding | ||||
Weighted Average Number of Shares Outstanding, Basic | 18,029 | 17,978 | 18,029 | 17,962 |
Diluted weighted average units outstanding | ||||
Weighted Average Number of Shares Outstanding, Diluted | 18,039 | 17,996 | 18,039 | 17,976 |
Earnings per unit: | ||||
Earnings per share, basic and diluted | $ 0.47 | $ 0.07 | $ 0.51 | $ 0.38 |
Common units Hoegh LNG [Member] | ||||
Under (over) distributed earnings attributable to: | ||||
Distributed Earnings | $ 444 | $ (774) | $ (5,626) | $ (1,044) |
Basic weighted average units outstanding | ||||
Weighted Average Number of Shares Outstanding, Basic | 15,257 | 2,101 | 15,257 | 2,101 |
Diluted weighted average units outstanding | ||||
Weighted Average Number of Shares Outstanding, Diluted | 15,257 | 2,101 | 15,257 | 2,101 |
Earnings per unit: | ||||
Earnings per share, basic and diluted | $ 0.50 | $ 0.10 | $ 0.56 | $ 0.44 |
Subordinated Units Hoegh LNG [Member] | ||||
Under (over) distributed earnings attributable to: | ||||
Distributed Earnings | $ 0 | $ (4,848) | $ 0 | $ (6,533) |
Basic weighted average units outstanding | ||||
Weighted Average Number of Shares Outstanding, Basic | 0 | 13,156 | 0 | 13,156 |
Diluted weighted average units outstanding | ||||
Weighted Average Number of Shares Outstanding, Diluted | 0 | 13,156 | 0 | 13,156 |
Earnings per unit: | ||||
Earnings per share, basic and diluted | $ 0 | $ 0.10 | $ 0 | $ 0.44 |
Earning per unit and cash dis_4
Earning per unit and cash distributions - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 06, 2020 | Mar. 26, 2020 | Mar. 21, 2019 | Sep. 14, 2018 | Mar. 23, 2018 | Aug. 31, 2020 | Mar. 21, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Incentive Distribution Right Target Distribution | $ 399 | $ 344 | $ 798 | $ 688 | |||||||
Phantom Units [Member] | Chief Executive Officer Chief Financial Officer [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 15,378 | 8,100 | 10,917 | 28,018 | 14,584 | 15,378 | 10,917 | 9,723 | |||
Second Target Distribution [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Incentive Distribution Right Target Distribution Per Unit | $ 0.421875 | ||||||||||
Distribution Percentage To All Unit Holders | 85.00% | ||||||||||
Distribution Percentage To Holders Of Incentive Distribution Rights | 15.00% | ||||||||||
Third Target Distribution [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Incentive Distribution Right Target Distribution Per Unit | $ 0.50625 | ||||||||||
Distribution Percentage To All Unit Holders | 75.00% | ||||||||||
Distribution Percentage To Holders Of Incentive Distribution Rights | 25.00% | ||||||||||
After Target Distribution [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Distribution Percentage To All Unit Holders | 50.00% | ||||||||||
Distribution Percentage To Holders Of Incentive Distribution Rights | 50.00% | ||||||||||
Common Unit Public [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Incentive Distribution Right Target Distribution Per Unit | $ 0.388125 | ||||||||||
Distribution Percentage To Holders Of Incentive Distribution Rights | 100.00% | ||||||||||
Common units Hoegh LNG [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Incentive Distribution Right Target Distribution | $ 55 | $ 110 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 17, 2020 | Aug. 14, 2020 | Aug. 07, 2020 | May 28, 2019 | Jan. 29, 2018 | Aug. 31, 2014 |
Revolving credit facility | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85 | $ 85 | $ 85 | |||
Subsequent Event [Member] | Revolving credit facility | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85 | |||||
Proceeds from Lines of Credit | $ 6.6 | |||||
Subsequent Event [Member] | Series A Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ 0.546875 | |||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 3.7 | |||||
Subsequent Event [Member] | Common and Subordinated Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ 0.44 | |||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 15 |