Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Höegh LNG Partners LP |
Entity Central Index Key | 0001603016 |
Current Fiscal Year End Date | --12-31 |
Document Annual Report | true |
Document Registration Statement | false |
Document Shell Company Report | false |
Document Transition Report | false |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Filer Category | Accelerated Filer |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity File Number | 001-36588 |
Entity Incorporation, State or Country Code | 1T |
Entity Address, Address Line One | Canon’s Court |
Entity Address, Address Line Two | 22 Victoria Street |
Entity Address, Postal Zip Code | HM 12 |
Entity Address, City or Town | Hamilton |
Entity Address, Country | BM |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Håvard Furu |
Entity Address, Address Line One | Canon’s Court |
Entity Address, Address Line Two | 22 Victoria Street |
Entity Address, Postal Zip Code | HM 12 |
Entity Address, City or Town | Hamilton |
Entity Address, Country | BM |
Contact Personnel Email Address | havard.furu@hoeghlng.com |
City Area Code | 47 |
Local Phone Number | 9-912-3443 |
Common Stock [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Common units representing limited partner interests |
Trading Symbol | HMLP |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 33,308,439 |
Series A Preferred Stock [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Series A cumulative redeemable preferred units representing limited partner interests |
Trading Symbol | HMLP PRA |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 6,752,333 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUES | |||
Time charter revenues | $ 143,095 | $ 145,321 | $ 144,952 |
Other revenue | 0 | 115 | 1,609 |
Total revenues | 143,095 | 145,436 | 146,561 |
OPERATING EXPENSES | |||
Vessel operating expenses | (24,072) | (30,870) | (24,195) |
Administrative expenses | (9,740) | (9,861) | (8,916) |
Depreciation and amortization | (20,937) | (21,477) | (21,146) |
Total operating expenses | (54,749) | (62,208) | (54,257) |
Equity in earnings (losses) of joint ventures | 6,420 | 6,078 | 17,938 |
Operating income (loss) | 94,766 | 89,306 | 110,242 |
FINANCIAL INCOME (EXPENSE), NET | |||
Interest income | 605 | 947 | 725 |
Interest expense | (24,430) | (27,692) | (26,814) |
Gain (loss) on debt extinguishment | 0 | 1,030 | 0 |
Gain (loss) on derivative instruments | 0 | 0 | 4,681 |
Other items, net | (2,232) | (3,575) | (2,907) |
Total financial income (expense), net | (26,057) | (29,290) | (24,315) |
Income (loss) before tax | 68,709 | 60,016 | 85,927 |
Income tax benefit (expense) | (5,564) | (7,275) | (8,305) |
Net income (loss) | 63,145 | 52,741 | 77,622 |
Preferred unitholders' interest in net income | 14,802 | 13,850 | 12,303 |
Limited partners' interest in net income (loss) | 48,343 | 38,891 | 65,319 |
Common units public [Member] | |||
FINANCIAL INCOME (EXPENSE), NET | |||
Net income (loss) | $ 25,333 | $ 20,186 | $ 34,409 |
Earnings per unit | |||
Earnings per share, basic and diluted | $ 1.40 | $ 1.12 | $ 1.93 |
Common units Hegh LNG [Member] | |||
FINANCIAL INCOME (EXPENSE), NET | |||
Net income (loss) | $ 23,010 | $ 12,973 | $ 4,257 |
Earnings per unit | |||
Earnings per share, basic and diluted | $ 1.51 | $ 1.84 | $ 2.03 |
Subordinated unit Hegh LNG [Member] | |||
FINANCIAL INCOME (EXPENSE), NET | |||
Net income (loss) | $ 0 | $ 5,732 | $ 26,653 |
Earnings per unit | |||
Earnings per share, basic and diluted | $ 0 | $ 0.70 | $ 2.03 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income (loss) | $ 63,145 | $ 52,741 | $ 77,622 |
Unrealized gains (losses) on cash flow hedge | (11,367) | (12,217) | (2,290) |
Income tax benefit (expense) | (262) | (389) | (299) |
Other comprehensive income (loss) | (11,629) | (12,606) | (2,589) |
Comprehensive income (loss) | 51,516 | 40,135 | 75,033 |
Preferred unitholders' interest in net income | 14,802 | 13,850 | 12,303 |
Limited partners' interest in comprehensive income (loss) | $ 36,714 | $ 26,285 | $ 62,730 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 31,770 | $ 39,126 |
Restricted cash | 7,198 | 8,066 |
Trade receivables | 415 | 735 |
Amounts due from affiliates | 3,639 | 4,296 |
Advances to joint ventures | 3,284 | 0 |
Inventory | 0 | 463 |
Current portion of net investment in financing lease | 4,969 | 4,551 |
Prepaid expenses and other receivables | 3,883 | 2,534 |
Total current assets | 55,158 | 59,771 |
Long-term assets | ||
Restricted cash | 12,095 | 12,627 |
Accumulated earnings of joint ventures | 9,690 | 3,270 |
Advances to joint ventures | 869 | 3,831 |
Vessels, net of accumulated depreciation | 619,620 | 640,431 |
Other equipment | 109 | 256 |
Intangibles and goodwill | 14,056 | 17,108 |
Net investment in financing lease | 269,288 | 274,353 |
Long-term deferred tax asset | 102 | 217 |
Other long-term assets | 823 | 936 |
Total long-term assets | 926,652 | 953,029 |
Total assets | 981,810 | 1,012,800 |
Current liabilities | ||
Current portion of long-term debt | 59,119 | 44,660 |
Trade payables | 467 | 533 |
Amounts due to owners and affiliates | 2,600 | 2,513 |
Value added and withholding tax liability | 1,445 | 1,476 |
Derivative instruments | 6,945 | 2,907 |
Accrued liabilities and other payables | 7,232 | 11,164 |
Total current liabilities | 77,808 | 63,253 |
Long-term liabilities | ||
Long-term debt | 355,470 | 412,301 |
Revolving credit facility due to owners and affiliates | 18,465 | 8,792 |
Derivative instruments | 19,530 | 12,028 |
Long-term tax liability | 2,668 | 2,283 |
Long-term deferred tax liability | 14,430 | 12,549 |
Other long-term liabilities | 124 | 84 |
Total long-term liabilities | 410,687 | 448,037 |
Total liabilities | 488,495 | 511,290 |
EQUITY | ||
Accumulated other comprehensive income (loss) | (29,572) | (17,943) |
Total partners' capital | 493,315 | 501,510 |
Total equity | 493,315 | 501,510 |
Total liabilities and equity | 981,810 | 1,012,800 |
8.75% Series A Preferred Units [Member] | ||
EQUITY | ||
Total partners' capital | 167,760 | 164,482 |
Total equity | 167,760 | 164,482 |
Common units public [Member] | ||
EQUITY | ||
Total partners' capital | 308,850 | 315,176 |
Total equity | 308,850 | 315,176 |
Common units Hegh LNG [Member] | ||
EQUITY | ||
Total partners' capital | 46,277 | 39,795 |
Total equity | 46,277 | 39,795 |
Subordinated unit Hegh LNG [Member] | ||
EQUITY | ||
Total equity | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
8.75% Series A Preferred Units [Member] | ||
General Partners' Capital Account, Units Issued | 6,752,333 | 6,625,590 |
General Partners' Capital Account, Units Outstanding | 6,752,333 | 6,625,590 |
Common units public [Member] | ||
General Partners' Capital Account, Units Issued | 18,050,941 | 18,028,786 |
General Partners' Capital Account, Units Outstanding | 18,050,941 | 18,028,786 |
Common units Hegh 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 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands | 8.75% Series A Preferred Units [Member] | Common units public [Member] | Common units Hegh LNG [Member] | Subordinated unit Hegh LNG [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Dec. 31, 2017 | $ 113,404 | $ 317,149 | $ 6,513 | $ 40,341 | $ (2,748) | $ 474,659 |
Net income | 12,303 | 34,409 | 4,257 | 26,653 | 0 | 77,622 |
Cash distributions to unitholders | (13,107) | (31,211) | (3,881) | (24,298) | 0 | (72,497) |
Repayment of indemnifications received from Hoegh LNG | 0 | 0 | (325) | (2,028) | 0 | (2,353) |
Cash distributions from Hegh LNG | 0 | 0 | 234 | 1,467 | 0 | 1,701 |
Other comprehensive income | 0 | 0 | 0 | 0 | (2,589) | (2,589) |
Net proceeds from issuance of common units | 0 | 4,563 | 0 | 0 | 0 | 4,563 |
Net proceeds from issuance of Series A Preferred Units | 38,659 | 0 | 0 | 0 | 0 | 38,659 |
Issuance of units for Board of Directors' fees | 0 | 200 | 0 | 0 | 0 | 200 |
Other and contributions from owners | 0 | 140 | 46 | 286 | 0 | 472 |
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) |
Repayment of indemnifications received from Hoegh 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 | 14,802 | 25,333 | 23,010 | 0 | 0 | 63,145 |
Cash distributions to unitholders | (14,698) | (31,737) | (28,451) | 0 | 0 | (74,886) |
Cumulative change in accounting principle (Note 2) | 0 | (84) | (72) | 0 | 0 | (156) |
Repayment of indemnifications received from Hoegh LNG | 0 | |||||
Other comprehensive income | 0 | 0 | 0 | 0 | (11,629) | (11,629) |
Net proceeds from issuance of Series A Preferred Units | 3,174 | 0 | 0 | 0 | 0 | 3,174 |
Issuance of units for Board of Directors' fees | 0 | 181 | 0 | 0 | 0 | 181 |
Contribution from Hegh LNG | 0 | 0 | 11,850 | 0 | 0 | 11,850 |
Other and contributions from owners | 0 | (19) | 145 | 0 | 0 | 126 |
Balance at Dec. 31, 2020 | $ 167,760 | $ 308,850 | $ 46,277 | $ 0 | $ (29,572) | $ 493,315 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 63,145 | $ 52,741 | $ 77,622 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 20,937 | 21,477 | 21,146 |
Equity in (earnings) losses of joint ventures | (6,420) | (6,078) | (17,938) |
Changes in accrued interest income on advances to joint ventures | (321) | (295) | (273) |
Amortization of deferred debt issuance cost and fair value of debt assumed | 2,289 | 2,361 | 700 |
Amortization in revenue for above market contract | 3,052 | 3,631 | 3,631 |
Expenditure for drydocking | 0 | (3,107) | 0 |
(Gain) loss on debt extinguishment | 0 | (1,030) | 0 |
Changes in accrued interest expense | (435) | 2,246 | (605) |
Receipts from repayment of principal on financing lease | 4,551 | 4,168 | 0 |
Unrealized foreign exchange losses (gains) | (380) | 360 | 181 |
Gain (loss) on the settlement of the derivatives | 0 | (199) | 0 |
Proceeds from settlement of derivative instruments | 0 | 1,398 | 0 |
Unrealized loss (gain) on derivative instruments | 173 | 21 | (4,681) |
Non-cash revenue: tax paid directly by charterer | (867) | (867) | (852) |
Non-cash income tax expense: tax paid directly by charterer | 867 | 867 | 852 |
Deferred tax expense and provision for tax uncertainty | 2,118 | 3,707 | 5,272 |
Issuance of units for Board of Directors' fees | 181 | 194 | 200 |
Other adjustments | 123 | 512 | 472 |
Changes in working capital: | |||
Trade receivables | 176 | 543 | 6,344 |
Inventory | 463 | 183 | 22 |
Prepaid expenses and other receivables | (1,168) | (2,081) | (72) |
Trade payables | (80) | (10) | 155 |
Amounts due to owners and affiliates | 744 | 244 | 842 |
Value added and withholding tax liability | (633) | 2,827 | 4,257 |
Accrued liabilities and other payables | (2,690) | 1,439 | (5,594) |
Net cash provided by (used in) operating activities | 85,825 | 85,252 | 91,681 |
INVESTING ACTIVITIES | |||
Expenditure for vessel and other equipment | (8) | (269) | (747) |
Receipts from repayment of principal on financing lease | 0 | 0 | 3,814 |
Net cash provided by (used in) investing activities | (8) | (269) | 3,067 |
FINANCING ACTIVITIES | |||
Proceeds from long term debt | 0 | 368,300 | 0 |
Proceeds from revolving credit facility due to owners and affiliates | 21,750 | 3,500 | 5,400 |
Repayment of long-term debt | (44,660) | (342,416) | (45,458) |
Payment of debt issuance costs | 0 | (5,797) | 0 |
Repayment of revolving credit facility due to owners and affiliates | 0 | (34,000) | (17,500) |
Repayment of customer loan for funding of value added liability on import | 0 | (438) | (4,993) |
Net proceeds from issuance of common units | 0 | 1,029 | 4,563 |
Net proceeds from issuance of Series A preferred units | 3,174 | 13,065 | 38,659 |
Cash distributions to limited partners and preferred unitholders | (74,886) | (73,804) | (72,497) |
Proceeds from indemnifications received from Hoegh LNG | 0 | 0 | 1,701 |
Repayment of indemnifications received from Hoegh LNG | 0 | (64) | (2,353) |
Net cash provided by (used in) financing activities | (94,622) | (70,625) | (92,478) |
Increase (decrease) in cash, cash equivalents and restricted cash | (8,805) | 14,358 | 2,270 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 49 | 7 | (97) |
Cash, cash equivalents and restricted cash, beginning of period | 59,819 | 45,454 | 43,281 |
Cash, cash equivalents and restricted cash, end of period | $ 51,063 | $ 59,819 | $ 45,454 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | $ 31,770 | $ 39,126 | $ 26,326 | $ 22,679 |
Restricted cash - current asset | 7,198 | 8,066 | 6,003 | 6,962 |
Restricted cash - non-current asset | 12,095 | 12,627 | 13,125 | 13,640 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 51,063 | $ 59,819 | $ 45,454 | $ 43,281 |
Description of business
Description of business | 12 Months Ended |
Dec. 31, 2020 | |
Description of business | |
Description of business | 1. Description of business Höegh LNG Partners LP (the “Partnership”) was formed under the laws of the Marshall Islands on April 28, 2014 as an indirect 100% owned subsidiary of Höegh LNG Holdings Ltd. (“Höegh LNG”) for the purpose of acquiring Höegh LNG’s interests in Hoegh LNG Lampung Pte. Ltd., PT Hoegh LNG Lampung (the owner of the PGN FSRU Lampung Neptune Cape Ann On August 12, 2014, the Partnership completed its IPO. Prior to the closing of the IPO, Höegh LNG contributed to the Partnership all of its equity interests and loans and promissory notes due to it and affiliates in each of the entities owning the Neptune Cape Ann PGN FSRU Lampung Under the partnership agreement, the general partner has irrevocably delegated to the Partnership’s board of directors the power to oversee and direct the operations of, manage and determine the strategies and policies of the Partnership. Four of the seven board members were elected by the common unitholders at the Partnership’s first annual meeting of unitholders held on September 24, 2014. As a result, Höegh LNG, as the owner of the general partner, does not have the power to control the Partnership’s board of directors or the Partnership, and the Partnership is not considered to be under the control of Höegh LNG for United States generally accepted accounting principles (“US GAAP”) purposes. Therefore, the sale of a business from Höegh LNG to the Partnership is a change of control. As a result, the Partnership accounts for acquisitions of businesses under the purchase method of accounting and not as transfers of entities under common control. On October 1, 2015, the Partnership closed the acquisition of 100% of the shares in Höegh LNG FSRU III Ltd., the entity that indirectly owned the floating storage and regasification unit (“FSRU”) the Höegh Gallant Höegh Gallant Höegh Gallant In December 2016, the Partnership issued and sold 6,588,389 common units in an underwritten public offering for net proceeds of $111.5 million primarily to fund the purchase price of the acquisition of a 51% ownership interest in Höegh LNG Colombia Holding Ltd., the owner of the entities that own and operate the FSRU Höegh Grace Höegh Grace , On January 3, 2017, the Partnership closed the acquisition of a 51% ownership interest in Höegh Colombia Holding Ltd. On January 1, 2017, the Partnership entered into an agreement with Höegh LNG, under which Höegh LNG granted to the Partnership the authority to make decisions about operations of Höegh LNG Colombia Holding Ltd. from January 1, 2017 to the closing date of the acquisition. As a result, the Partnership has recorded the results of operations of the Höegh Grace On October 5, 2017, the Partnership issued 4,600,000 8.75% Series A cumulative redeemable preferred units (the “Series A preferred units”) for proceeds, net of underwriting discounts and expenses, of $110.9 million. Refer to note 20. A portion of the net proceeds was used to repay outstanding debt under the seller’s credit note related to the Höegh Gallant On December 1, 2017, the Partnership closed the acquisition of the remaining 49% ownership interest in the Höegh Grace 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. 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 10 10 The following table lists the entities included in these consolidated financial statements and their purpose as of December 31, 2020. Jurisdiction of Incorporation Name or Registration Purpose Höegh LNG Partners LP Marshall Islands Holding Company Höegh LNG Partners Operating LLC (100% owned) 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% indirectly owned) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (100% indirectly 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. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Significant accounting policies | 2. Significant accounting policies Basis of presentation The consolidated financial statements are prepared in accordance with US GAAP. All intercompany balances and transactions are eliminated. The consolidated financial statements have been prepared assuming that the Partnership will continue as a going concern. Please refer to note 22 for the Partnership’s plan to refinance the Lampung debt facility. 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. PT Hoegh LNG Lampung had not established the required statutory reserves as of December 31, 2020 and 2019. Therefore, PT Hoegh LNG Lampung cannot make dividend payments under Indonesian law. Under the Lampung facility, there are limitations on cash dividends and intercompany loans that can be made to the Partnership. Refer to note 12. As of December 31, 2020 and 2019, restricted net assets of the consolidated subsidiaries were $179.9 million and $169.8 million, respectively. The Partnership has 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 financial support. 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. As of December 31, 2020 and 2019, restricted net assets of the consolidated subsidiaries were $0.0 million. The Partnership has also determined that Höegh LNG Colombia Holding Ltd. is a VIE since the entity would not be able to finance its activities without financial support and financial guarantees under its subsidiary’s facility to finance the Höegh Grace Dividends and other distributions from Hoegh LNG Cyprus Limited, Höegh LNG Colombia Holding 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 12. 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 shareholder 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 $3.3 million and $3.0 million as of December 31, 2020 and 2019, respectively. The Partnership’s accumulated earnings, or its share of net assets, was $5.5 million and $2.6 million, respectively, as of December 31, 2020 and 2019. The Partnership’s carrying value for SRV Joint Gas Two Ltd. consists of a receivable for the advances of $0.9 million and $0.8 million as of December 31, 2020 and 2019, respectively. The Partnership’s accumulated earnings, or its share of net assets, was $4.2 million and $0.7 million, respectively, as of December 31, 2020 and 2019. The major reason that the Partnership had low accumulated earnings in the joint ventures as of December 31, 2019 and the major reason that the Partnership historically has 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 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. Significant accounting policies Foreign currencies The reporting currency in the consolidated financial statements is the U.S. dollar, which is the functional currency of the FSRU-owning entities. Nearly all revenues are received in U.S. dollars and a majority of the Partnership’s expenditures for investments and all of the long-term debt are denominated in U.S. dollars. Transactions denominated in other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the time of the transactions. Monetary assets and liabilities that are denominated in currencies other than the U.S. dollar are translated at the exchange rates in effect at the balance sheet date. Resulting gains or losses are reflected in the accompanying consolidated statements of income. Business combinations and asset acquisitions Business combinations are accounted for under the purchase method of accounting. Under this method, the purchase price is allocated to identifiable assets acquired and liabilities assumed based on their fair values as of the acquisition date. Any excess of the purchase price over the fair values of net assets is recognized as goodwill. Acquisition related costs are expensed as incurred. The results of entity acquired are included in the consolidated financial statements from the date of acquisition. Dependent upon facts and circumstances, the assessment of a transaction may be considered the acquisition of an asset, when substantially all of the fair value of assets acquired is concentrated in a single identifiable asset, rather than a business combination. Asset acquisitions are accounted for by allocating the cost of the acquisition to the individual assets acquired and liabilities assumed on a relative fair value basis. Acquisition related costs are capitalized as a component of the cost of the assets acquired. Time charter revenue, related contract balances and related expenses Time charter revenues and related contract balances : The Partnership is required to evaluate whether two or more contracts should be combined and accounted for as a single contract, whether the contract promises to deliver more than one distinct good or service, or performance obligations, and/or a lease, determine the transaction price under the contract, allocate the transaction price to the lease and the performance obligations and recognize revenue as the performance obligation is satisfied. 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, when adopting the revised guidance on leases as of January 1, 2019, the Partnership did not elect to apply the practical expedient to not separate lease and services components for operating leases because this would result in inconsistent disclosure for the time charter contracts. Performance obligations : The Partnership determined that its time charter contracts contain a lease and a performance obligation for the provision of time charter services. The lease of the vessel, representing the use of the vessel without any associated performance obligations or warranties, is accounted for in accordance with the provisions of Accounting Standards Codification ("ASC") 842, Leases The provision of time charter services, including guarantees for the level of performance provided by the time charter contracts, is considered a distinct service and is accounted for in accordance with the provision of ASC 606, Revenue from Contracts with Customers. Time charter services revenue can be recognized as the performance obligation is satisfied over the 24-hour interval to the performance standards specified under the time charter contract. If the performance standards are not met, off-hire, reduced hire, liquidated damages or other performance payments may result. Contract terms, determination of transaction price and allocation to performance obligations : The Partnership’s time charter contracts for all FSRUs, except the Höegh Gallant ● Fixed element : The fixed element is a fixed per day fee intended to cover remuneration for use of the vessel and the provision of time charter services. ● Operating expense reimbursement element : The operating expense reimbursement element is a rate per day intended to cover the operating costs of the vessel, including the crew, insurance, consumables, miscellaneous services, spares and maintenance and repairs costs and management services and fees. The amount of the operating expense reimbursement element may be based on actual cost incurred, or fees subject to indexing or other adjustments after a defined period, or a combination of both. ● Tax reimbursement element : The tax reimbursement element may be a rate per day, based on the estimated liability for the year divided by the number of days in the year, subject to adjustment for actual taxes incurred, or a reimbursement of the costs as the taxes are incurred. The tax reimbursement element may cover withholding taxes, payroll taxes, other local taxes and current income tax expense for the jurisdiction in which the vessel operates as defined by the provisions of the individual time charter contract. ● Performance warranties element : The performance warranties element includes defined operational capacity and standards that can result in the FSRUs being off-hire or require compensation to the charterer through provision of reduced hire, liquidated damages or performance payments. Examples of performance warranties include the ability to discharge regasified LNG at specified performance rates, guaranteed minimum fuel consumption, guaranteed minimum boil-off rates and the ability to accept cargos. The Höegh Gallant Höegh Gallant The hire rates for the PGN FSRU Lampung Höegh Gallant Höegh Grace The transaction price is estimated as the standalone selling price for the lease and the time charter services components of the fixed day rate element. Variable consideration per day for operating expense and tax reimbursements is estimated at the most likely amount to which the Partnership is expected to be entitled to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty related to the variable consideration is resolved. When there is significant uncertainty related to that amount of variable consideration to be received, that variable consideration is considered constrained. Typically, variable reimbursements and performance warranties are known at the end of each 24-hour interval, or as subsequently reassessed at the end of the reporting period. However, to the extent interpretations of contractual provisions are complex and/or disputed with the customer, this could give rise to constrained variable consideration. Constrained variable consideration is not estimated. Variable consideration is allocated entirely to one performance obligation when the variable day rate relates specifically to the efforts to satisfy the single performance obligation. The default method of the relative standalone selling price method was used to allocate the remaining transaction price, principally the fixed element, between the lease and the time charter services. The total estimated transaction price for time charter services is considered variable consideration because it may be reduced by performance warranties. The Partnership has made a policy election to exclude from the measurement of the transaction price all taxes assessed by a government entity on revenues and collected on behalf of that government entity from customers, such as sales or value added taxes. Lease revenue recognition : Leases are classified based upon defined criteria either as sale-type/direct financing leases (“financing leases”) or operating leases. A lease that transfers substantially all of the benefits and risks of the FSRU to the charterer is accounted for as a financing lease by the lessor. All other leases that do not meet the criteria are classified as operating leases. On January 1, 2019, when adopting the revised leasing guidance, the Partnership elected the package of practical expedients and did not reassess conclusions under the previous standard about whether any existing contracts are, or contain leases, lease classification, and initial direct costs for any existing leases. Accordingly, outstanding leases on January 1, 2019, continue to be classified in accordance with the prior lease guidance. The lease component of time charters that are accounted for as operating leases is recognized on a straight-line basis over the term of the charter. The Höegh Gallant’s five Höegh Grace’s The lease component of time charters that are accounted for as financing leases is recognized over the lease term using the effective interest rate method and is included in time charter revenues. Origination costs related to the time charter are a component of the net investment in financing lease and amortized over the lease term using the effective interest method. Financing leases are reflected on the consolidated balance sheets as net investments in financing leases. The PGN FSRU Lampung Time charter services revenue recognition : Variable consideration for the time charter services performance obligation, including amounts allocated to time charter services, estimated reimbursements for vessel operating expenses and estimated reimbursements of certain types of costs and taxes, are recognized as revenues as the performance obligation for the 24-hour interval is fulfilled, subject to adjustment for off-hire and performance warranties. Constrained variable consideration is recognized as revenue on a cumulative catch-up basis when the significant uncertainty related to that amount of variable consideration to be received is resolved. Estimates for variable consideration, including constrained variable consideration, are reassessed at the end of each period. Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes directly related to the provision of the time charter services are recorded as a component of time charter service revenues. The amount of non-cash revenue is disclosed separately in the consolidated statement of cash flows. Joint venture FSRUs lease and time charter services revenue recognition : The Partnership’s interest in the Joint venture FSRUs’ net income is included in the consolidated financial statements under the equity method of accounting, however, the Joint venture FSRUs’ results are presented under the proportional consolidation method for the segment note (note 3) and the time charter revenue note (note 4). The Neptune’s Cape Ann’s twenty The accounting policy for time charter services for the joint ventures is the same as described above. Significant judgments in revenue recognition : The Partnership does not provide stand-alone bareboat leases or time charter services for FSRUs. As a result, observable stand-alone transaction prices for the performance obligations are not available. The estimation of the transaction price for the lease and the time charter service performance obligation is complex, subject to a number of input factors, such as market conditions when the contract is entered into, internal return objectives and pricing policies, and requires substantial judgment. Significant changes in the transaction price between the two performance obligations could impact conclusions on the accounting for leases as financing or operating leases. In addition, variable consideration is estimated at the most likely amount that the Partnership expects to be entitled to. Variable consideration is reassessed at the end of the reporting period taking into account performance warranties. The time charter contracts include provisions for performance guarantees that can result in off-hire, reduced hire, liquidated damages or other payments for performance warranties. Measurement of some of the performance warranties can be complex and require properly calibrated equipment on the vessel, complex conversions and computations based on substantial judgment in the interpretation of the contractual provisions. Conclusions on compliance with performance warranties impact the amount of variable consideration recognized for time charter services. Contract assets: Revenue recognized in excess of the monthly invoiced amounts, or accrued revenue, is recorded as contract assets on the consolidated balance sheet. The contract assets are reported in the consolidated balance sheet as a component of prepaid expenses and other receivables. Contract liabilities: Advance payments in excess of revenue recognized, or prepayments, and deferred revenue is recorded as contract liabilities on the consolidated balance sheet. Contract assets and liabilities are reported in a net position for each customer contract or combined contracts at the end of each reporting period. Contract liabilities are classified as current or non-current based on the expected timing of recognition of the revenue. Current and non-current contract liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables and other long-term liabilities, respectively. Refund liabilities: Amounts invoiced or paid by the customer that are expected to be refunded to the customer are recorded as refund liabilities on the consolidated balance sheet. Refund liabilities may include invoiced amounts for estimated reimbursable operating expenses or other costs and taxes that exceeded the actual costs incurred, or off-hire, reduced hire, liquidated damages, or other payments for performance warranties. Refund liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables. Remaining performance obligations : Remaining performance obligations represent the transaction price of contracts with customers under the scope of ASC 606 for which work has not been performed excluding unexercised contract options to extend the term. The Partnership qualifies for and has elected to apply the exemption to disclose the aggregate amount of remaining transaction price allocated to unsatisfied performance obligations at the end of the reporting period as consideration for time charter services is variable and allocated entirely to wholly satisfied performance obligations. Related expenses : Voyage expenses include bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls and agency fees. Voyage expenses are all expenses unique to a particular voyage and when a vessel is on hire under time charters are generally the responsibility of, and paid directly by the charterers, and not included in the statement of income. When the vessel is off-hire, voyage expenses, principally fuel, may also be incurred and are paid by the FSRU-owning entity. Vessel operating expenses, reflected in expenses in the statement of income, include crewing, repairs and maintenance, insurance, stores, lube oils, communication expenses and management fees. Vessel operating expenses also include bunker fuel expenses when the vessel is on hire and the expenses are not directly paid and owed by the charterers. When the vessel is on hire, vessel operating expenses are invoiced as time charter service fees to the charterer or are covered by time charter rates. When the vessel is off-hire, vessel operating expenses are not invoiced to the charterer. Voyage expenses, if applicable, and vessel operating expenses are expensed when incurred. Loss contingencies, insurance and other claims Accruals are recorded for loss contingencies or claims when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. Significant judgment is required to determine the probability and the estimated amount of loss. Such assessments involve complex judgments about future events and estimates and assumptions that are deemed reasonable by management. Accruals are reviewed quarterly and adjusted to reflect the impact of additional information such as the impact of negotiations, advice of legal counsel or settlements. Insurance claims for property damage are recorded, net of any deductible amounts, for recoveries up to the amount of loss recognized when the claims to insurance carriers are probable of recovery. Claims for property damage in excess of the loss recognized and for loss of revenue during off-hire, whether from insurance providers or indemnification from Höegh LNG, are considered gain contingencies, which are recognized when the proceeds are received. Indemnification proceeds from Höegh LNG that cover the Partnership’s costs are accounted for following the guidance of the Securities and Exchange Commission’s Staff Accounting Bulletin (“SAB”) Topic 1.B and SAB Topic 5.T. SAB Topic 1.B provides that the separate financial statements of a subsidiary should reflect any costs of its operations which are incurred by the owner on its behalf. SAB Topic 5.T provides that costs should be reflected as an expense in the subsidiary’s financial statements with a corresponding credit to contributed equity. Income taxes Income taxes are accounted for using the liability method. 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 income tax expense. The amount of non-cash income tax expense is disclosed separately in the consolidated statement of cash flows. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the tax and the book bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. 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. If the more-likely-than-not recognition criterion is met, a tax position is measured based on the cumulative amount that is more-likely-than-not of being sustained upon examination by tax authorities to determine the amount of benefit to be recognized in the consolidated financial statements. Interest and penalties related to uncertain tax positions is recognized in income tax expense in the consolidated statement of income. Cash and cash equivalents Cash, banks deposits, time deposits and highly liquid investments with original maturities of three months or less are recognized as cash and cash equivalents. Restricted cash Restricted cash includes balances deposited with a bank as required under debt facilities to settle withholding tax, other tax liabilities and other current obligations of the entity, and principal and interest payments as required by the debt facilities. Restricted cash is classified as long-term when the settlement is more than 12 months from the balance sheet date. Trade receivables and allowance for expected credit losses Trade receivables are recorded at the invoiced amount and do not bear interest. Trade receivables, contract assets and the net investment in a financing lease is initially recorded by including the current expected credit loss of the asset over the life of the contract. The allowance for expected credit losses is a valuation account that is deducted from the amortized cost of the asset to present the net amount expected to be collected. Each period the allowance for expected credit losses is adjusted through earnings to reflect the revised expected credit losses over the remaining lives of the assets. Receivable amounts are written off against the allowance when the asset is confirmed uncollectible. Expected credit losses are estimated using historical credit loss experience, relevant available information, from internal and external sources, relating to current conditions and reasonable and supportable forecasts of economic conditions impacting the collectability of the assets. Investments in accumulated earnings or losses of and advances to joint ventures Investments in joint ventures are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for the Partnership’s proportionate share of earnings or losses and dividend distributions. As of December 31, 2020 and 2019, the Partnership had an accumulated share of earnings and the balance is classified on the consolidated balance sheet as an asset on the line accumulated earnings of joint ventures. Advances to joint ventures represent loan receivables due from the joint ventures and are recorded at cost. Interest on the advances to joint ventures is recorded to interest income in the consolidated statements of income as incurred. The quarterly payments from joint ventures included a payment of interest for the first month of the quarter and repayment of principal. Interest is accrued for the last two months of the quarter for repayment at the end of the loans after the original principal was fully repaid. The joint ventures repaid the original principal of all shareholder loans during 2016. Payments of interest, including accrued interest repaid at the end of the loans, are treated as return on investment and included as a component of net cash provided by operating activities in the consolidated statement of cash flows. Payments of principal are included as a component of net cash provided by investing activities in the consolidated statement of cash flows. Investments in joint ventures are evaluated for impairment when events or circumstances indicate that the carrying value of such investments may have experienced an other-than-temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the consolidated statement of income. Loan receivables are impaired when, based on current information and events, it is probable that the full amount of the receivable will not be collected. The amount of the impairment is measured as the difference between the present value of expected future cash flows discounted at the loan’s effective interest rate and the carrying amount. The resulting impairment amount is recognized in earnings. Inventory Inventory consists of bunker fuel maintained on the FSRUs, if it is owned by the FSRU-owning entity. Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. Vessels All costs incurred during the construction of newbuildings, including interest and supervision and technical costs, are capitalized. The cost of an acquired vessel is the fair value. Vessels are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over a vessel’s estimated useful life, less an estimated residual value. Depreciation is calculated using an estimated useful life of 35 years for the FSRUs. Modifications to the vessels, including the addition of new equipment, which improves or increases the operational efficiency, functionality or safety of the vessels, are capitalized. These expenditures are amortized over the estimated useful life of the modification. Expenditures covering recurring routine repairs and maintenance are expensed as incurred. Drydocking expenditures are capitalized when incurred and amortized over the period until the next anticipated drydocking. For vessels that are newly built, the "built-in overhaul" method of accounting is applied. Under the built-in overhaul method, costs of the newbuilding are segregated into costs that should be depreciated over the useful life of the vessel and costs that require drydocking at periodic intervals. The drydocking component is amortized until the date of the first drydocking following the delivery, upon which the actual drydocking cost is capitalized and the process is repeated. Costs of drydocking incurred to meet regulatory requirements or improve the vessel’s operating efficiency, functionality or safety are generally capitalized. Costs incurred related to routine repairs and maintenance performed during drydocking are expensed. Impairment of long-lived assets Vessels are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. When such events or changes in circumstances are present, the recoverability of vessels is assessed by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the vessel’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, the carrying amount of the asset is reduced to its estimated fair value. An impairment loss is recognized based on the excess of the carrying amount over the fair value of the vessel. Intangibles and goodwill Intangible assets are initially measured at their fair value as of the acquisition date of a business combination. All intangible assets of the Partnership have a definite life. Intangible assets with a definite life are amortized ov |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 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 impairment, 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 balance on the $85 million revolving credit facility and the $385 million facility are included in “Other.” For the years ended December 31, 2020, 2019 and 2018, Majority held FSRUs includes the financing lease related to the PGN FSRU Lampung Höegh Gallant Höegh Grace As of December 31, 2020, 2019 and 2018, 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 years ended December 31, 2020, 2019 and 2018. Year ended December 31, 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 $ 143,095 43,572 — 186,667 (43,572) (1) $ 143,095 Total revenues 143,095 43,572 — 186,667 143,095 Operating expenses (27,462) (9,452) (6,350) (43,264) 9,452 (1) (33,812) Equity in earnings (losses) of joint ventures — — — — 6,420 (1) 6,420 Segment EBITDA 115,633 34,120 (6,350) 143,403 Depreciation, amortization and impairment (20,937) (9,965) — (30,902) 9,965 (1) (20,937) Operating income (loss) 94,696 24,155 (6,350) 112,501 94,766 Gain (loss) on derivative instruments — (6,073) — (6,073) 6,073 (1) — Other financial income (expense), net (9,072) (11,662) (16,985) (37,719) 11,662 (1) (26,057) Income (loss) before tax 85,624 6,420 (23,335) 68,709 — 68,709 Income tax expense (5,564) — — (5,564) — (5,564) Net income (loss) $ 80,060 6,420 (23,335) 63,145 — $ 63,145 Preferred unitholders’ interest in net income — — — — 14,802 (2) 14,802 Limited partners’ interest in net income (loss) $ 80,060 6,420 (23,335) 63,145 (14,802) (2) $ 48,343 (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 December 31, 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 $ 619,620 242,226 — 861,846 (242,226) (1) $ 619,620 Net investment in financing lease 274,257 — — 274,257 — 274,257 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 4,153 4,153 — 4,153 Total assets 969,278 267,003 12,532 1,248,813 (267,003) (1) 981,810 Accumulated earnings of joint ventures — — 50 50 9,640 (1) 9,690 Expenditures for vessels & equipment 8 75 — 83 (75) (2) 8 Expenditures for drydocking — 2 — 2 (2) (2) — Principal repayment financing lease 4,551 — — 4,551 — 4,551 Amortization of above market contract $ 3,052 — — 3,052 — $ 3,052 (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 the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Year ended December 31, 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 $ 145,321 42,433 — 187,754 (42,433) (1) $ 145,321 Other revenue 115 — — 115 (1) 115 Total revenues 145,436 42,433 — 187,869 145,436 Operating expenses (2) (34,266) (9,044) (6,465) (49,775) 9,044 (1) (40,731) Equity in earnings (losses) of joint ventures — — — — 6,078 (1) 6,078 Segment EBITDA 111,170 33,389 (6,465) 138,094 Depreciation, amortization and impairment (21,477) (10,030) — (31,507) 10,030 (1) (21,477) Operating income (loss) 89,693 23,359 (6,465) 106,587 89,306 Gain (loss) on debt extinguishment 1,030 — — 1,030 (1) 1,030 Gain (loss) on derivative instruments — (5,209) — (5,209) 5,209 (1) — Other financial income (expense), net (12,511) (12,072) (17,809) (42,392) 12,072 (1) (30,320) Income (loss) before tax 78,212 6,078 (24,274) 60,016 — 60,016 Income tax expense (7,278) — 3 (7,275) — (7,275) Net income (loss) $ 70,934 6,078 (24,271) 52,741 — $ 52,741 Preferred unitholders’ interest in net income — — — — 13,850 (3) 13,850 Limited partners’ interest in net income (loss) $ 70,934 6,078 (24,271) 52,741 (13,850) (3) $ 38,891 (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) The Partnership's Indonesian subsidiary was assessed a property tax and penalties of $3.0 million by the Indonesian authorities for the period from 2015 through 2019. The retroactive assessment was as a result of the issuance of a new regulation in 2019, defining FSRUs as subject to the existing Indonesian property tax law. The property tax and penalties were recorded as a component of vessel operating expenses. (3) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. 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 the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Year ended December 31, 2018 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 144,952 43,169 — 188,121 (43,169) (1) $ 144,952 Other revenue 1,609 — — 1,609 (1) 1,609 Total revenues 146,561 43,169 — 173,846 146,561 Operating expenses (27,294) (10,932) (5,817) (44,043) 10,932 (1) (33,111) Equity in earnings (losses) of joint ventures — — — — 17,938 (1) 17,938 Segment EBITDA 119,267 32,237 (5,817) 145,687 Depreciation and amortization (21,146) (9,725) — (30,871) 9,725 (1) (21,146) Operating income (loss) 98,121 22,512 (5,817) 114,816 110,242 Gain (loss) on derivative instruments 4,681 8,496 — 13,177 (8,496) (1) 4,681 Other financial income (expense), net (26,381) (13,070) (2,615) (42,066) 13,070 (1) (28,996) Income (loss) before tax 76,421 17,938 (8,432) 85,927 — 85,927 Income tax benefit (expense) (8,253) — (52) (8,305) — (8,305) Net income (loss) $ 68,168 17,938 (8,484) 77,622 — $ 77,622 Preferred unitholders’ interest in net income — — — — 12,303 (2) 12,303 Limited partners’ interest in net income (loss) $ 68,168 17,938 (8,484) 77,622 (12,303) (2) $ 65,319 (1) Eliminations reverse each of the income statement line items of the proportional consolidation 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. For the years ended December 31, 2020, 2019 and 2018, the percentage of consolidated total revenues from the following customers accounted for over 10% of the Partnership’s consolidated total revenues: Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 PT PGN LNG Indonesia 33 % 33 % 33 % Höegh LNG 30 % 31 % 31 % Sociedad Portuaria El Cayao S.A. E.S.P. 37 % 36 % 36 % |
Time charter revenues and relat
Time charter revenues and related contract balances | 12 Months Ended |
Dec. 31, 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 include 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 twelve months ended December 31, 2020, 2019 and 2018: Year ended December 31, 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) $ 87,948 25,760 — 113,708 (25,760) $ 87,948 Time charter service revenues, excluding amortization 58,199 15,098 — 73,297 (15,098) 58,199 Amortization of above market contract intangibles (3,052) — — (3,052) — (3,052) Amortization of deferred revenue for modifications & drydock — 2,714 — 2,714 (2,714) — Total revenues (4) $ 143,095 43,572 — 186,667 (43,572) $ 143,095 Year ended December 31, 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) $ 88,889 25,690 — 114,579 (25,690) $ 88,889 Time charter service revenues, excluding amortization 60,063 14,095 — 74,158 (14,095) 60,063 Amortization of above market contract intangibles (3,631) — — (3,631) — (3,631) Amortization of deferred revenue for modifications & drydock — 2,648 — 2,648 (2,648) — Other revenue (3) 115 — — 115 — 115 Total revenues (4) $ 145,436 42,433 — 187,869 (42,433) $ 145,436 Year ended December 31, 2018 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 $ 89,215 25,690 — 114,905 (25,690) $ 89,215 Time charter service revenues, excluding amortization 59,368 15,078 — 74,446 (15,078) 59,368 Amortization of above market contract intangibles (3,631) — — (3,631) — (3,631) Amortization of deferred revenue for modifications & drydock — 2,401 — 2,401 (2,401) — Other revenue (3) 1,609 — — 1,609 — 1,609 Total revenues (4) $ 146,561 43,169 — 189,730 (43,169) $ 146,561 (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 (losses) of joint ventures on the consolidated income statement. (2) The financing lease revenues comprise about one-fourth of the total lease revenues for the years ended December 31, 2020 and 2019. (3) Other revenue consists of insurance proceeds received for prior period claims related to repairs under the Mooring warranty and for repairs for the Höegh Gallant . 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 3 and 17. (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 table below, exclude the balances for the Joint venture FSRUs. The Partnership’s share of net assets in the Joint venture FSRUs are 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 December 31, (in thousands of U.S. dollars) 2020 2019 Trade receivable for lease $ 2,608 $ 2,898 Trade receivable for time charter services 1,506 2,133 Allowance for expected credit losses (60) — Total trade receivable and amounts due from affiliates $ 4,054 $ 5,031 Refer to note 2 for information related to the allowance for expected credit losses recorded on January 1, 2020. For the year ended December 31, 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 table summarizes the consolidated contract assets, contract liabilities and refund liabilities to customers, as of December 31, 2020 and 2019: Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2020 $ 279 $ (125) Additions — (841) Reduction for receivables recorded (18) — Reduction for revenue recognized (excluding amortization) — 10 Reduction for revenue recognized from previous years — 48 Repayments of refund liabilities to charterer — 17 Balance December 31, 2020 $ 261 $ (891) Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance 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 December 31, 2019 $ 279 $ (125) Contract assets are reported in the consolidated balance sheet as a component of prepaid expenses and other receivables. Current and non-current contract liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables and other long-term liabilities, respectively. 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. Minimum contractual future revenues : As of December 31, 2020, the minimum contractual future revenues to be received under the time charters for the PGN FSRU Lampung, Höegh Gallant Höegh Grace (in thousands of U.S. dollars) Service related Lease related Total 2021 $ 32,369 90,441 $ 122,810 2022 32,369 90,441 122,810 2023 32,369 90,441 122,810 2024 32,369 90,441 122,810 2025 27,091 77,717 104,808 Thereafter 96,683 286,467 383,150 Total - undiscounted $ 253,250 725,948 $ 979,198 Operating lease $ 321,724 Financing lease 404,224 Discounting effect (172,499) Financing lease receivable $ 231,725 The long-term time charter for the PGN FSRU Lampung PGN FSRU Lampung, The long-term time charter for the Höegh Gallant Höegh Gallant Höegh Gallant The long-term time charter for the Höegh Grace 10 Höegh Grace Höegh Grace 20 Net investment in financing lease : The lease element of time charter hire for the PGN FSRU Lampung As of 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 at origination 297,824 297,824 Principal repayment and amortization (23,471) (18,920) Allowance for credit loss (96) — Net investment in financing lease at period end 274,257 278,904 Less: Current portion (4,969) (4,551) Long term net investment in financing lease $ 269,288 $ 274,353 Net investment in financing lease consists of: Financing lease receivable $ 231,725 $ 240,000 Unguaranteed residual value 42,532 38,904 Net investment in financing lease at period end $ 274,257 $ 278,904 Refer to note 2 for information related to the allowance for expected credit losses recorded on January 1, 2020. For the year ended December 31, 2020, there was no change in the allowance for expected credit losses following the cumulative effect of adopting the new standard. There was no impairment loss, or allowance for doubtful accounts, for the year ended December 31, 2019. |
Financial income (expense), net
Financial income (expense), net | 12 Months Ended |
Dec. 31, 2020 | |
Financial income (expense), net | |
Financial income (expense), net | 5. Financial income (expense), net The components of financial income (expense), net are as follows: Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Interest income $ 605 947 $ 725 Interest expense: Interest expense (22,003) (24,950) (26,077) Commitment fees (138) (381) (37) Amortization of debt issuance cost and fair value of debt assumed (2,289) (2,361) (700) Total interest expense (24,430) (27,692) (26,814) Gain (loss) on debt extinguishment — 1,030 — Gain (loss) on derivative instruments — — 4,681 Other items, net: Foreign exchange gain (loss) 444 (396) (193) Bank charges, fees and other (276) (297) (143) Withholding tax on interest expense and other (2,400) (2,882) (2,571) Total other items, net (2,232) (3,575) (2,907) Total financial income (expense), net $ (26,057) (29,290) $ (24,315) Interest income related to cash balances and interest accrued on the advances to the joint ventures for each of the years ended December 31, 2020, 2019 and 2018. As of January 1, 2019, interest expense includes reclassifications from accumulated other comprehensive income and amortization of the components excluded from hedge effectiveness related to derivatives due to the adoption of the revised guidance for derivatives and hedging. The entire change in fair value of the cash flow hedge included in the assessment of hedge effectiveness is included in other comprehensive income with the result that the hedge ineffectiveness is no longer recognized in earnings. Refer to note 2. For the year ended December 31, 2018, gain (loss) on derivatives included the gain or loss on hedge ineffectiveness as well as amortization related to derivatives. Refer to note 16 for additional information on the types of gains and losses on derivatives included in interest expense for the years ended December 31, 2020 and 2019. Interest expense also includes interest related to the revolving credit facility from Höegh LNG, the $385 million facility, the Lampung facility and the Gallant/Grace facility until January 31, 2019. The gain on debt extinguishment relates to the refinancing of the Gallant/Grace facility with the $385 million facility. When the entities owning the Höegh Gallant Höegh Grace |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2020 | |
Income tax | |
Income tax | 6. Income tax The components of income tax expense recognized in the consolidated statements of income are as follows: Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Current tax (benefit) expense $ 3,832 4,126 $ 4,759 Deferred tax (benefit) expense for Change in temporary differences 1,335 3,341 3,290 Tax loss and tax credit carried forward 393 (196) 247 Change in valuation allowance 4 4 9 Total deferred tax (benefit) expense 1,732 3,149 3,546 Total income tax (benefit) expense $ 5,564 7,275 $ 8,305 Deferred tax (benefit) expense recognized in the consolidated statements of comprehensive income as a component of other comprehensive income (“OCI”) are as follows: Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Cash flow hedge derivative instruments $ 262 389 $ 299 Deferred tax (benefit) expense recognized in OCI $ 262 389 $ 299 The reconciliation of the income before tax at the statutory rate in the Marshall Islands to the actual income tax expense for each year is as follows: Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Income before tax $ 68,709 60,016 $ 85,927 At applicable statutory tax rate Amount computed at corporate tax of 0% — — — Foreign tax rate differences 4,972 5,425 7,513 Permanent differences: Amended tax return: reinstatement of tax loss carryforward — — — Tax audit or amended tax return: change in uncertain tax position 385 558 (41) Non-deductible interest expense 571 1,477 875 Non-deductible withholding tax 625 717 838 Non-deductible loss on derivatives (114) 120 — Tax exemptions (13) (13) (36) Non-deductible other financial items (106) 194 116 Other non-deductible costs (18) 45 63 Tax credits (742) (1,252) (1,032) Adjustment for valuation allowance 4 4 9 Tax expense (benefit) for year $ 5,564 7,275 $ 8,305 Deferred income tax assets (liabilities) are summarized as follows: As of December 31, (in thousands of U.S. dollars) 2020 2019 Deferred tax assets: Accrued liabilities and other payables $ 124 $ 235 Derivative instruments 422 565 Other equipment 8 9 Tax credits carried forward 1,421 1,818 Tax loss carryforward 32 57 Valuation allowance (32) (57) Deferred tax liabilities: Accrued interest income (4,575) (4,123) Accrued liabilities and other payables (400) (385) Financing lease (11,328) (10,451) Deferred tax assets (liabilities), net $ (14,328) $ (12,332) The Partnership is not subject to Marshall Islands corporate income taxes. The Partnership's subsidiaries incorporated in Singapore, Indonesia, Cyprus, and the UK are subject to tax on their income, and the Partnership's Columbian subsidiary is subject to tax on certain Colombian source income. For the years ended December 31, 2020, 2019 and 2018, 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 For the year ended December 31, 2017, income tax benefits were recorded of $1,486 and $2,228 for the reinstatement of the tax loss carryforward and the reversal of an uncertain tax position, respectively, due to the amendment of the 2016 tax return of the Indonesian subsidiary. The amendment was a result of a reevaluation of the application of the infrastructure industry exemption to regulations introduced in 2016 placing limitations on interest expense deductions. The infrastructure exemption was also applied by the Indonesian subsidiary for the reported income tax expense for the years ended December 31, 2020, 2019 and 2018. In December of 2018, the Indonesian tax authorities concluded an audit of corporate income tax filings for the Indonesian subsidiary for the years ended December 31, 2013 and 2014. The outcome of the audit reduced the historical tax loss carryforward, mainly due to disallowed expenses, resulting in a settlement of $885 with respect to the unrecognized tax benefits originating in 2013. For the year ended December 31, 2018, tax benefits of $434 were recorded reflecting a reduction to the uncertain tax position originating in 2013 based on the audit’s conclusion. In addition, there was an increase to the uncertain tax position of $418 for a tax position taken in the 2018 tax return which was not more-likely-than-not to be sustained. For the years ended December 31, 2020 and 2019, there was an increase to the uncertain tax position of $385 and $558, respectively, for a tax position to be taken in the 2020 and 2019 tax return which is not more-likely-than-not to be sustained. As of December 31, 2020 and 2019, the unrecognized tax benefits were $2,668 and $2,283, 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. Changes in the unrecognized tax benefits is summarized below: Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Unrecognized tax benefits as of January 1, $ (2,283) (1,725) $ (2,626) Decrease related to prior year tax positions — — 434 Increase related to current year tax positions (385) (558) (418) Settlements — — 885 Unrecognized tax benefits as of December 31, $ (2,668) (2,283) $ (1,725) Tax loss carryforwards of $256 expire between 2021 and 2025. Tax credits carried forward of $430 and $991 expire in 2021 and 2022 , respectively. The tax returns of Singapore and Indonesia are subject to examination for four years and five years, respectively, from the year of filing. For Colombia, tax returns are subject to examination for three years from the due date of the return. The tax returns from the years 2016 and subsequent years remain subject to review for Indonesia and Singapore. For Colombia, tax returns from the years 2017 and subsequent years remain subject to review. Refer to note 17. |
Prepaid expenses and other rece
Prepaid expenses and other receivables | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid expenses and other receivables | |
Prepaid expenses and other receivables | 7. Prepaid expenses and other receivables The components of prepaid expenses and other receivables are as follows: As of December 31, (in thousands of U.S. dollars) 2020 2019 Prepaid expenses $ 2,140 $ 752 Other receivables 1,743 1,782 Total other prepaid expenses and other receivables $ 3,883 $ 2,534 |
Investments in joint ventures
Investments in joint ventures | 12 Months Ended |
Dec. 31, 2020 | |
Investments in joint ventures | |
Investments in joint ventures | 8. Investments in joint ventures As of December 31, (in thousands of U.S. dollars) 2020 2019 Accumulated earnings of joint ventures $ 9,690 $ 3,270 The Partnership has a 50% interest in each of SRV Joint Gas Ltd. (owner of the Neptune Two Cape Ann Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Time charter revenues $ 78,687 77,051 $ 79,654 Other income 8,457 7,814 6,684 Total revenues 87,144 84,865 86,338 Operating expenses (18,904) (18,088) (21,864) Depreciation and amortization (20,546) (20,524) (20,065) Impairment of long-lived assets (1) — (149) — Operating income 47,694 46,104 44,409 Unrealized gain (loss) on derivative instruments (12,146) (10,418) 16,992 Other financial expense, net (23,324) (24,144) (26,140) Net income (loss) $ 12,224 11,542 $ 35,261 Share of joint ventures owned 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations 6,112 5,771 17,631 Eliminations 308 307 307 Equity in earnings (losses) of joint ventures $ 6,420 6,078 $ 17,938 (1) At the completion of the class renewal survey of the Neptune , certain equipment was identified that was impaired. As of December 31, (in thousands of U.S. dollars) 2020 2019 Cash and cash equivalents $ 13,455 $ 17,897 Restricted cash 21,264 9,250 Other current assets 178 973 Total current assets 34,897 28,120 Restricted cash 14,656 34,650 Vessels, net of accumulated depreciation 499,318 521,060 Total long-term assets 513,974 555,710 Current portion of long-term debt 199,030 28,297 Amounts and loans due to owners and affiliates 7,278 629 Derivative instruments 14,687 13,089 Refund liabilities (1) 1,040 26,691 Other current liabilities 8,811 10,327 Total current liabilities 230,846 79,033 Long-term debt 176,385 375,091 Loans due to owners and affiliates 1,737 7,663 Derivative instruments 69,618 59,070 Other long-term liabilities 36,040 40,952 Total long-term liabilities 283,780 482,776 Net assets (liabilities) $ 34,245 $ 22,021 Share of joint ventures owned 50 % 50 % Share of joint ventures net assets (liabilities) before eliminations 17,123 11,011 Eliminations (7,433) (7,741) Accumulated earnings (losses) of joint ventures $ 9,690 $ 3,270 (1) Refund liabilities include the liability for the boil-off claim and other refundable amounts due to the charterer. |
Advances to joint ventures
Advances to joint ventures | 12 Months Ended |
Dec. 31, 2020 | |
Advances to joint ventures | |
Advances to joint ventures | 9. Advances to joint ventures As of December 31, (in thousands of U.S. dollars) 2020 2019 Current portion of advances to joint ventures $ 3,284 $ — Long-term advances to joint ventures 869 3,831 Advances/shareholder loans to joint ventures $ 4,153 $ 3,831 The Partnership had advances of $3.3 million and $3.0 million due from SRV Joint Gas Ltd. as of December 31, 2020 and 2019, respectively. The Partnership had advances of $0.9 million and $0.8 million due from SRV Joint Gas Two Ltd. as of December 31, 2020 and 2019, respectively. The advances consist of shareholder loans where the principal amounts, including accrued interest, are repaid based on available cash after servicing of long-term bank debt. The shareholder loans are due not later than the 12th anniversary of delivery date of each FSRU. The Neptune Cape Ann The shareholder loans financed part of the construction of the vessels and operating expenses until the delivery and commencement of the operations of the Neptune Cape Ann 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 outstanding balance on the shareholder loans was classified as long-term as of December 31, 2019. Based on the final settlement of the boil-off claim made in December 2020 in addition to meeting certain conditions for making distributions as described below, the outstanding balance on the shareholder loan due from SRV Joint Gas Ltd. has been classified as current as of December 31, 2020 while the outstanding balance on the shareholder loan due from SRV Joint Gas Two Ltd. has been classified as non-current as of December 31, 2020. Refer to note 17 under “Joint ventures boil-off settlement.” The advances, including accrued interest, 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 December 31, 2020, both the 1.20 historical and projected debt service coverage ratios were met by SRV Joint Gas Ltd. As a result, SRV Joint Gas Ltd. qualifies to make payments on the shareholder loans or other distributions. As of December 31, 2020, SRV Joint Gas Two Ltd. did not meet the 1.20 historical debt service coverage ratio but did meet the projected debt service coverage ratio. As a result, no payments on the shareholder loans or other distributions can be made by SRV Joint Gas Two Ltd. until the debt service coverage ratio is met in future periods. |
Vessels and other equipment
Vessels and other equipment | 12 Months Ended |
Dec. 31, 2020 | |
Vessels and other equipment | |
Vessels and other equipment | 10. Vessels and other equipment Dry- (in thousands of U.S. dollars) Vessel docking Total Historical cost December 31, 2018 $ 706,715 6,667 $ 713,382 Additions 183 3,107 3,290 Historical cost December 31, 2019 706,898 9,774 716,672 Depreciation for the year (19,393) (1,777) (21,170) Accumulated depreciation December 31, 2019 (70,264) (5,977) (76,241) Vessels, net December 31, 2019 636,634 3,797 640,431 Historical cost December 31, 2019 706,898 9,774 716,672 Additions 8 — 8 Historical cost December 31, 2020 706,906 9,774 716,680 Depreciation for the year (19,398) (1,421) (20,819) Accumulated depreciation December 31, 2020 (89,662) (7,398) (97,060) Vessels, net December 31, 2020 $ 617,244 2,376 $ 619,620 As of December 31, 2020, other equipment consists principally of office equipment, computers and a right-of-use-asset. As of December 31, 2019, other equipment consists principally of warehouse, office equipment, computers and a right-of-use asset. Other equipment of $308 and $845 is recorded net of accumulated depreciation of $260 and $679 in the consolidated balance sheet as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the right-of-use assets and lease liability for operating leases was $61 and $91, respectively. Depreciation expense for other equipment was $118, $307 and $159 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Intangibles and goodwill
Intangibles and goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Intangibles and goodwill | |
Intangibles and goodwill | 11. Intangibles and goodwill Option Above for time market time charter Total (in thousands of U.S. dollars) charter extension Intangibles Goodwill Total Historical cost December 31, 2018 $ 22,760 8,000 30,760 251 $ 31,011 Amortization for the year (3,631) — (3,631) — (3,631) Accumulated amortization, December 31, 2019 (13,903) — (13,903) — (13,903) Intangibles and goodwill, December 31, 2019 8,857 8,000 16,857 251 17,108 Historical cost December 31, 2019 22,760 8,000 30,760 251 31,011 Additions — — — — — Historical cost December 31, 2020 22,760 8,000 30,760 251 31,011 Amortization for the year (2,030) (1,022) (3,052) — (3,052) Accumulated amortization, December 31, 2020 (15,933) (1,022) (16,955) — (16,955) Intangibles and goodwill, December 31, 2020 $ 6,827 6,978 13,805 251 $ 14,056 The following table presents estimated future amortization expense for the intangibles: (in thousands of U.S. dollars) Total 2021 $ 2,755 2022 2,755 2023 2,755 2024 2,762 2025 2,116 2026 and thereafter $ 662 |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2020 | |
Long-term debt | |
Long-term debt | 12. Long-term debt As of December 31, (in thousands of U.S. dollars) 2020 2019 Lampung facility: Export credit tranche $ 79,324 $ 94,210 FSRU tranche 18,635 22,812 $385 million facility: Commercial tranche 230,705 249,635 Export credit tranche 44,500 51,167 Revolving credit tranche 48,300 48,300 Outstanding principal 421,464 466,124 Lampung facility unamortized debt issuance cost (2,999) (4,309) $385 million facility unamortized debt issuance costs (3,876) (4,854) Total debt 414,589 456,961 Less: Current portion of long-term debt (59,119) (44,660) Long-term debt $ 355,470 $ 412,301 Lampung facility In September 2013, PT Hoegh LNG Lampung (the “Borrower”) entered into a secured $299 million term loan facility (the “Lampung facility”) with a syndicate of banks and an export credit agency for the purpose of financing a portion of the construction of the PGN FSRU Lampung The FSRU tranche has an interest rate of LIBOR plus a margin of 3.4%. The interest rate for the export credit tranche is LIBOR plus a margin of 2.3%. The FSRU tranche is repayable quarterly over 7 years with a final balloon payment of $15.5 million due on October 30, 2021. The export credit tranche is repayable in quarterly installments over 12 years assuming the balloon payment of the FSRU tranche is refinanced. If not, the export credit agent can exercise a prepayment right for repayment of the outstanding balance upon maturity of the FSRU tranche. The weighted average interest rate, excluding the impact of the associated interest rate swaps, for the years ended December 31, 2020 and 2019 was 4.7% and 6.2% respectively. 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 December 31, 2020 and 2019, the Borrower and the guarantor were in compliance with the financial covenants. Höegh LNG, as guarantor, has issued the following guarantees related to the Lampung facility that remain in effect as of December 31, 2020: (a) an unconditional and irrevocable on-demand guarantee for the repayment of the balloon repayment installment of the FSRU tranche callable only at final maturity of the FSRU tranche; (b) an unconditional and irrevocable on-demand guarantee for all amounts due in respect of the export credit agent in the event that the export credit agent exercises its prepayment right for the export credit tranche if the FSRU tranche is not refinanced; and (c) an undertaking that, if the time charter is terminated for an event of vessel force majeure, under certain conditions, a guarantee will be provided for the outstanding debt, less insurance proceeds for vessel force majeure. In addition, all project agreements and guarantees are assigned to the bank syndicate and the export credit agent, all cash accounts and the shares in PT Hoegh LNG Lampung and Hoegh LNG Lampung Pte. Ltd. are pledged in favor of the bank syndicate and the export credit agent. 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 Gallant/Grace facility The Gallant/Grace facility included two borrowers, the Partnership’s subsidiaries owning the Höegh Gallant Höegh Grace Höegh Gallant Höegh Grace On January 31, 2019, the outstanding balance and the accrued interest of $303.2 million and $1.6 million, respectively, on the Gallant/Grace facility was repaid from the proceeds of the $385 million facility. The unamortized balance of the fair value of debt assumed, or premium, was recorded as a gain when the debt was extinguished. Refer to note 5. The interest rate swaps related to the Gallant/Grace facility were terminated on the same date. Refer to note 16. $385 million facility On January 29, 2019, the Partnership entered into a loan agreement with a syndicate of banks to refinance the outstanding balances of the Gallant/Grace facility. Höegh LNG Partners LP is the borrower (the “Borrower”) for the senior secured term loan and revolving credit facility (the “$385 million facility”). The aggregate borrowing capacity is $320 million on the senior secured term loan and $63 million on the revolving credit tranche. Hoegh LNG Cyprus Limited, which owns the Höegh Gallant Höegh Grace Höegh Gallant Höegh Grace The senior secured term loan related to the $385 million facility includes a commercial tranche and the export credit tranche. Each tranche is divided into two term loans for each of the Höegh Gallant Höegh Grace On January 31, 2019, the Partnership drew $320 million under the commercial and the export credit tranches on the $385 million facility to settle $303.2 million and $1.6 million of the outstanding balance and accrued interest, respectively, on the Gallant/Grace facility and used proceeds of $5.5 million to pay arrangement fees due under the $385 million facility. The remaining proceeds of $9.6 million were used for general partnership purposes. On August 12, 2019, the Partnership drew $48.3 million under the revolving credit tranche of the $385 million facility, of which $34.0 million was used to repay part of the outstanding balance on the $85 million revolving credit facility due to Höegh LNG. The commercial tranche and the revolving credit tranche related to the $385 million facility have an interest rate of LIBOR plus a margin of 2.30%. The commitment fee on the undrawn portion of the revolving credit tranche is approximately 1.6%. The interest rate for the export credit tranche related to the $385 million facility have fixed interest rates and guarantee commissions of 3.98% and 3.88% on the term loans related to the Höegh Gallant Höegh Grace Höegh Gallant Höegh Grace % and 4.7%, respectively. The primary financial covenants under the $385 million facility are as follows: ● o ● 25% of total assets, and ● $150 million o o ● $15 million, and ● $2.5 million multiplied by the number of vessels owned or leased by the Partnership (prorated for partial ownership), subject to a cap of $20 million o As of December 31, 2020 and 2019, the Borrower and the Vessel Owners were in compliance with the financial covenants. In addition, a security maintenance ratio based on the aggregate market value of the Höegh Gallant Höegh Grace If the security maintenance ratio is not maintained, the relevant Borrower has 30 days to provide more security or to repay part of the loan to be in compliance with the ratio no later than 30 days after notice from the lenders. 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. Events of default include, among other things, change of control of Höegh LNG or the Partnership due to the failure of Höegh LNG to own at least 25% of the Partnership’s common units. 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 The principal on long-term debt outstanding as of December 31, 2020 was repayable as follows: (in thousands of U.S. dollars) Total 2021 $ 123,557 2022 25,597 2023 25,597 2024 25,597 2025 25,597 2026 and thereafter 195,519 Total $ 421,464 The table includes the maturity of the FSRU tranche of the Lampung facility in 2021 and assumes the exercise of the prepayment right for the export credit tranche of the Lampung facility in the same period. |
Accrued liabilities and payable
Accrued liabilities and payables | 12 Months Ended |
Dec. 31, 2020 | |
Accrued liabilities and payables | |
Accrued liabilities and payables | 13. Accrued liabilities and other payables As of December 31, (in thousands of U.S. dollars) 2020 2019 Accrued operating and administrative expenses $ 3,042 $ 3,314 Accrued property tax — 3,033 Accrued interest 2,641 2,850 Current tax payable 469 818 Refund liabilities (note 4) 891 125 Lease liability (note 2 and note 10) 39 75 Other accruals and payables 150 949 Total accrued liabilities and other payables $ 7,232 $ 11,164 Refer to note 4 for additional information on the refund liability to charterers. Refer to notes 2 and 10 for additional information on the lease liability. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Related party transactions | 14. 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 years ended December 31, 2020, 2019 and 2018 or included in the consolidated balance sheets as of December 31, 2020 and 2019 are as follows: (in thousands of U.S. dollars) 2020 2019 2018 Revenues Time charter revenue Höegh Gallant $ 45,274 47,173 $ 47,108 Operating expenses Vessel operating expenses (2) (21,328) (24,523) (21,520) Hours, travel expense and overhead (3) and Board of Directors’ fees (4) (4,353) (4,072) (3,671) Financial (income) expense Interest income from joint ventures (5) 321 295 273 Interest expense and commitment fees to Höegh LNG (6) (64) (1,882) (2,938) Total $ 19,850 16,991 $ 19,252 As of Balance sheet December 31, (in thousands of U.S. dollars) 2020 2019 Equity Contribution from Höegh LNG (7) $ 11,850 $ — Repayment of indemnification received from Höegh LNG (8) — (64) Issuance of units for Board of Directors’ fees (4) 181 194 Other and contribution from owner (9) 109 485 Total $ 12,140 $ 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 charges 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: Total Board of Directors’ fees were $571 , $496 and $501 for the years ended December 31, 2020, 2019 and 2018, respectively. Part of the compensation is awarded as common units of the Partnership. Effective September 4, 2020, a total of 15,528 common units were awarded to non-employee directors as compensation of $162 for part of directors’ fees for 2020 under the Höegh LNG Partners LP Long Term Incentive Plan. Effective June 4, 2019 and June 6, 2018, a total of 11,180 and 11,050 common units, respectively, of the Partnership were awarded to non-employee directors as compensation of $194 and $200 , respectively, for part of directors’ fees for 2019 and 2018. 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 and commitment fees to Höegh LNG and affiliates: Höegh LNG and its affiliates provided an $85 million revolving credit facility for general partnership purposes. The Partnership incurred a commitment fee on the undrawn balance until January 29, 2018 and an interest expense on the drawn balance. 7) Non-cash contribution from/distribution to Höegh LNG: As described under “Indemnification” below, on April 8, and December 11, 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 and $3.3 million, respectively, on its outstanding balance on the $85 million revolving credit facility from Höegh LNG. These non-cash settlements, totaling $11.9 million, were 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 increase in equity. On August 6, 2020, the Partnership announced that the Partnership’s Chief Executive Officer and Chief Financial Officer resigned, which resulted in 15,378 of the phantom units not vesting, resulting in a reduction in administration expense and equity for the forfeited units. The remaining 4,861 unvested phantom units will vest in 2021. Dividends to Höegh LNG: Receivables and payables from related parties Amounts due from affiliates As of December 31, (in thousands of U.S. dollars) 2020 2019 Amounts due from affiliates $ 3,639 $ 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 December 31, (in thousands of U.S. dollars) 2020 2019 Amounts due to owners and affiliates $ 2,600 $ 2,513 As of December 31, 2020 and 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 December 31, (in thousands of U.S. dollars) 2020 2019 Revolving credit facility due to owners and affiliates - non-current portion $ 18,465 $ 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, and December 11, 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 and $3.3 million, respectively, on its outstanding balance on the revolving credit facility. On April 24, 2020, August 7, 2020 and October 23, 2020, the Partnership drew $4.5 million, $6.6 million and $10.7 million, respectively, on the revolving credit facility. The outstanding revolving credit facility had a weighted average interest rate for the years ended December 31, 2020 and 2019 of 3.6% and 6.6%, respectively. 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 into 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 into 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: Under the omnibus agreement Höegh LNG also agreed to indemnify the Partnership for losses: 1. related to certain defects in title to the assets contributed or sold to the Partnership and any failure to obtain, prior to the time they were contributed to the Partnership, certain consents and permits necessary to conduct the business, which liabilities arose within three years after the closing of the IPO; 2. related to certain tax liabilities attributable to the operation of the assets contributed or sold to the Partnership prior to the time they were contributed or sold; 3. in the event that the Partnership did not receive hire rate payments under the PGN FSRU Lampung time charter for the period commencing on August 12, 2014 through the earlier of (i) the date of acceptance of the PGN FSRU Lampung or (ii) the termination of such time charter. The Partnership was indemnified by Höegh LNG for the September and October 2014 invoices not paid by PGN LNG in 2014 (refer to note 17); 4. with respect to any obligation to pay liquidated damages to PGN LNG under the PGN FSRU Lampung time charter for failure to deliver the PGN FSRU Lampung by the scheduled delivery date set forth in the PGN FSRU Lampung time charter; 5. with respect to any non-budgeted expenses (including repair costs) incurred in connection with the PGN FSRU Lampung project (including the construction of the Mooring) occurring prior to the date of acceptance of the PGN FSRU Lampung pursuant to the time charter; and 6. 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 and the Mooring whether incurred (i) prior to the closing date of the IPO, (ii) after the closing date of the IPO to the extent such taxes, interest, penalties or related impact on cash flows relate to periods of ownership or operation of the PGN FSRU Lampung and the Mooring and are not subject to prior indemnification payments or deemed reimbursable by the charterer under its audit of the taxes related to the PGN FSRU Lampung time charter for periods up to and including June 30, 2015, or (iii) after June 30, 2015 to the extent withholding taxes exceed the minimum amount of withholding tax due under Indonesian tax regulations due to lack of documentation or untimely withholding tax filings. No indemnification claim was filed or received for the year ended December 31, 2020. For the years ended December 31, 2019 and 2018, the Partnership refunded to Höegh LNG approximately $0.1 million and $2.4 million, respectively, related to insurance proceeds received related to the warranty provision and costs for previous years determined to be reimbursable by the charterer. For the year ended December 31, 2018, the Partnership received indemnification payment from Höegh LNG for non-budgeted expenses (including warranty provisions, other non-budgeted expenses and replacement capital expenditure) of $0.9 million which was recorded as a contribution to equity. Indemnification payments received from Höegh LNG are subject to repayment to the extent the amounts are subsequently recovered from insurance or deemed reimbursable by the charterer. Refer to note 17. 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 years ended December 31, 2020 and 2019. For the year ended December 31, 2018, the Partnership received an indemnification payment from Höegh LNG for losses incurred in connection with the time charter with EgyptCo of $0.5 million which was recorded as a contribution to equity. Refer to note 17. 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 years ended December 31, 2020, 2019 and 2018. Refer to note 17. 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 | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments | |
Financial Instruments | 15. 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 December 31, 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 $ 31,770 31,770 39,126 $ 39,126 Restricted cash 1 19,293 19,293 20,693 20,693 Derivative instruments 2 (26,475) (26,475) (14,935) (14,935) Other: Amounts due from affiliate 2 3,639 3,639 4,296 4,296 Advances (shareholder loans) to joint ventures 2 4,153 4,305 3,831 4,029 Current amounts due to owners and affiliates 2 (2,600) (2,600) (2,513) (2,513) Lampung facility 2 (94,960) (99,295) (112,713) (119,598) $385 million facility 2 (319,629) (323,342) (344,248) (352,219) Revolving credit facility due to owners and affiliates 2 $ (18,465) (16,987) (8,792) $ (8,717) Financing receivables and net investment in financing lease The following table contains a summary of the class of financial asset, year of origination and the method by which the credit quality is monitored on a quarterly basis: Class Credit Quality As of December 31, (in thousands of U.S. dollars) Year Indicator Grade 2020 2019 Advances/shareholder loans to joint ventures 2006 Collection experience Performing $ 4,153 $ 3,831 Net investment in financing lease 2014 Credit Information Performing $ 274,257 $ 278,904 The shareholder loans to joint ventures are classified as advances to joint ventures in the consolidated balance sheet. Refer to note 9. Refer to note 2 for information related to the allowance for expected credit losses recorded on January 1, 2020. For the year ended December 31, 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. For the net investment in financing lease, 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. |
Risk management and concentrati
Risk management and concentrations of risk | 12 Months Ended |
Dec. 31, 2020 | |
Risk management and concentrations of risk | |
Risk management and concentrations of risk | 16. Risk management 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 December 31, 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 December 31, 2020, the following interest rate swap agreements were outstanding: Fair value Fixed Interest carrying interest rate Notional amount rate (in thousands of U.S. dollars) index amount liability Term (1) LIBOR-based debt Lampung interest rate swaps (2) LIBOR $ 97,960 $ (5,680) Sep 2026 2.800 % $385 million facility swaps (2) LIBOR $ 56,782 $ (5,560) Jan 2026 2.941 % $385 million facility swaps (2) LIBOR $ 56,782 $ (5,197) Oct 2025 2.838 % $385 million facility swaps (2) LIBOR $ 56,782 $ (5,111) Jan 2026 2.735 % $385 million facility swaps (2) LIBOR $ 56,782 $ (4,927) 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 the notional 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 amortization profile 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 October 1, 2015, the Partnership acquired the Höegh Gallant Effective as of January 1, 2017, the Partnership acquired the Höegh Grace 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 2.650% and 2.735% 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. 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 December 31, 2020 Interest rate swaps $ — $ — $ (6,945) $ (19,530) As of December 31, 2019 Interest rate swaps $ — $ — $ (2,907) $ (12,028) The following effects of cash flow hedges relating to interest rate swaps are included in gain (loss) on derivative instruments in the consolidated statements of income for the years ended December 31, 2020 and 2019. Year ended December 31, 2020 Income tax (in thousands of U.S. dollars) Interest expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (5,849) $ — Amortization of amount excluded from hedge effectiveness 851 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (1,024) 262 Total gains (losses) on derivative instruments $ (6,022) $ 262 Year ended December 31, 2019 Income tax (in thousands of U.S. dollars) Interest expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (956) $ — Amortization of amount excluded from hedge effectiveness 966 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (987) 389 Settlement of cash flow hedge 199 — Total gains (losses) on derivative instruments $ (778) $ 389 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 facility interest rate swaps paid settlement amounts resulting in a gain on the settlement of the cash flow hedge. The following effects of cash flow hedges relating to interest rate swaps are included in total gains (losses) on derivative instruments in the consolidated statements of income for the year ended December 31, 2018. Year ended December 31, (in thousands of U.S. dollars) 2018 Interest rate swaps: Ineffective portion of cash flow hedge $ (990) Amortization of amount excluded from hedge effectiveness 2,969 Reclassification discontinued hedge from OCI 3,557 Reclassification from accumulated other comprehensive income (855) Unrealized gains (losses) 4,681 Realized gains (losses) — Total gains (losses) on derivative instruments $ 4,681 For the year ended December 31, 2018, the reclassification to earnings from other comprehensive income (“OCI”) for the discontinued cash flow hedges relates to Gallant/Grace facility which was to be refinanced on January 31, 2019. The accumulated other comprehensive income balance for the cash flow hedge is reclassified to earnings when the hedged future cash flows are no longer expected to occur. The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income, changes in accumulated OCI and on earnings is as follows as of and for the years ended December 31, 2020 and 2019. Cash Flow Hedge Accumulated other comprehensive income Earnings Before tax Accumulated gains Tax benefit OCI: Interest Tax (in thousands of U.S. dollars) (losses) (expense) Net of tax expense benefit Accumulated OCI as of December 31, 2019 $ (18,119) 176 $ (17,943) Effective portion of unrealized loss on cash flow hedge (18,240) — (18,240) Reclassification from accumulated other comprehensive income included in hedge effectiveness 5,849 — 5,849 (5,849) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 1,024 (262) 762 (1,024) 262 Other comprehensive income for period (11,367) (262) (11,629) Accumulated OCI as of December 31, 2020 $ (29,486) (86) $ (29,572) Gain (loss) reclassified to earnings $ (6,873) $ 262 Cash Flow Hedge Accumulated other comprehensive income Earnings Before tax Accumulated gains Tax benefit OCI: Interest Tax (in thousands of U.S. dollars) (losses) (expense) Net of tax expense benefit Accumulated OCI 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 (13,535) — (13,535) Reclassification from accumulated other comprehensive income included in hedge effectiveness 956 — 956 (956) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 987 (389) 598 (987) 389 Other comprehensive income for period (12,217) (389) (12,606) Accumulated OCI as of December 31, 2019 $ (18,119) 176 $ (17,943) Gain (loss) reclassified to earnings $ (1,943) $ 389 The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income and changes in accumulated OCI is as follows as of and for the year ended December 31, 2018. Cash Flow Hedge Before tax Tax benefit Accumulated (in thousands of U.S. dollars) gains (losses) (expense) Net of tax OCI Balance as of December 31, 2017 $ (3,612) 864 (2,748) $ (2,748) Effective portion of unrealized loss on cash flow hedge 412 — 412 412 Reclassification of amortization of cash flow hedge to earnings 855 (299) 556 556 Reclassification of discontinued cash flow hedge to earnings (3,557) — (3,557) (3,557) Other comprehensive income for period (2,290) (299) (2,589) (2,589) Balance as of December 31, 2018 $ (5,902) 565 (5,337) $ (5,337) As of December 31, 2020, the estimated amounts to be reclassified from accumulated other comprehensive income to earnings during the next twelve months is $7.9 million. 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 years ended December 31, 2020, 2019 and 2018, 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, amounts due from affiliates 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’ or counterparty’s 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, amounts due from affiliates 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 | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and contingencies | |
Commitments and contingencies | 17. Commitments and contingencies Contractual commitments As of December 31, 2020, the Partnership has no material commitments for capital expenditures. However, during the fourth quarter of 2020, part of the procedures for the on-water class renewal survey for the Höegh Grace As of December 31, 2020, there were no material contractual purchase commitments. 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 first installment of the settlement of $17.2 million was paid by the joint ventures in April 2020. The Partnership’s 50% share was $8.6 million. The second and final installment of the settlement of $6.5 million was paid by the joint ventures in December 2020. The Partnership’s 50% share was $3.3 million. The Partnership is indemnified by Höegh LNG for its share of the cash impact of the settlement, the arbitration costs and any legal expenses, the technical modifications of the vessels and any prospective boil-off claims or other direct impacts of the settlement agreement. On April 8, 2020 and December 11, 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 and $3.3 million, respectively, on its outstanding balance on the $85 million revolving credit facility from Höegh LNG. Höegh LNG and the other major owner guarantee the performance and payment obligations of the joint ventures under the time charters. The Partnership was indemnified by Höegh LNG for its share of the cash impact of the settlement, the arbitration costs and any legal expenses, the technical modifications of the vessels and any prospective boil-off claims or other direct impacts of the settlement agreement. Höegh LNG will indemnify the Partnership for the Partnership’s share of such costs. For the year ended December 31, 2018 the Partnership received indemnification payments of $0.3 million from Höegh LNG, related to the boil-off claim. Indemnification payments were recorded as contributions to equity. Refer to note 14. On March 12, 2021, the partnership was indemnified by Höegh LNG for its share of the joint ventures performance claims for the year ended December 31, 2020 by a reduction of $0.3 million on its outstanding balance on the $85 million revolving credit facility from Höegh LNG 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 the years from 2016 through 2020 for up to five years following the completion of a fiscal year. As a result, it is likely there will be an examination by the Indonesian tax authorities for the tax return for 2016 during 2021. The examinations may lead to ordinary course adjustments or proposed adjustments to the Partnership’s taxes with respect to years under examination. In December 2018, the examination for the years 2013 and 2014 was completed. Refer to note 6 for additional information. On January 22, 2021 the Partnership’s Indonesian subsidiary received a letter from the Indonesian tax authorities that there will be an examination by the Indonesian tax authorities for the tax returns from 2016 to 2020 during 2021. Future examinations may or may not result in changes to the Partnership’s provisions on tax filings from 2016 through 2020. As of December 31, 2020, the unrecognized tax benefits for uncertain tax positions were $2.7 million. 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 for the year ended December 31, 2019. Until the appeal is concluded, the Indonesian subsidiary will be required to pay an annual property tax of approximately $0.5 million. PGN LNG claims including delay liquidated damages The Partnership was indemnified by Höegh LNG for i) any hire rate payments not received under the PGN FSRU Lampung PGN FSRU Lampung PGN FSRU Lampung No indemnification claim was filed for the year ended December 31, 2020. For the years ended December 31, 2019 and 2018, the Partnership refunded to Höegh LNG approximately $0.1 million and $2.4 million, respectively, related to insurance proceeds received related to the warranty provision and costs for previous years determined to be reimbursable by the charterer. For the year ended December 31, 2018, the Partnership received indemnification payments from Höegh LNG for non-budgeted expenses (including warranty provisions, other non-budgeted expenses and replacement capital expenditure) of $0.9 million which was recorded as a contribution to equity. Indemnification payments received from Höegh LNG are subject to repayment to the extent the amounts are subsequently recovered from insurance or deemed reimbursable by the charterer. Refer to note 14. Höegh Gallant claims and indemnification The Partnership was indemnified by Höegh LNG for losses incurred in connection with the commencement of services under the time charter with EgyptCo (including technical issues) incurred in connection with the Höegh Gallant No indemnification claims were filed or received for the years ended December 31, 2020 and 2019. For the year ended December 31, 2018, the Partnership received indemnification payments from Höegh LNG for losses incurred in connection with the time charter with EgyptCo of $0.5 million which were recorded as contributions to equity. Refer to note 14. |
Supplemental cash flow informat
Supplemental cash flow information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental cash flow information | |
Supplemental cash flow information | 18. Supplemental cash flow information Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Supplemental disclosure of non-cash investing activities Non-cash expenditures for vessel and other equipment $ — — $ (229) Supplemental disclosure of non-cash financing activities Non-cash indemnifications received $ 11,850 — $ — Refer to note 14 for non-cash indemnification received information. |
Issuance of common units and Se
Issuance of common units and Series A Preferred Units | 12 Months Ended |
Dec. 31, 2020 | |
Issuance of common units and Series A Preferred Units | |
Issuance of common units and Series A Preferred Units | 19. Issuance of common units and Series A preferred units From the commencement of the Prior ATM program in January 2018 through December 31, 2020, the Partnership sold 2,152,333 Series A preferred units and 306,266 common units under the ATM programs and received net proceeds of $54.9 million and $5.6 million, respectively. The compensation paid to the Agent for such sales was $1.1 million. For the year ended December 31, 2020, the Partnership did not issue any common units under the ATM program. For the year ended December 31, 2020, the Partnership sold 126,743 Series A preferred units at an average gross sales price of $25.50 per unit for net proceeds after sales commissions, of $3.2 million. The Partnership has paid an aggregate of $0.1 million in sales commissions to the Agent in connection with such sales for the period ended December 31, 2020. Proceeds in the table below are included for all units for the year ended December 31, 2020. Year ended December 31, 2020 Series A Common preferred (in thousands of U.S. dollars) units units Total Gross proceeds for units issued $ — 3,231 $ 3,231 Less: Commissions — (57) (57) Net proceeds for units issued $ — 3,174 $ 3,174 For the year ended December 31, 2019, the Partnership sold 53,160 common units at an average gross sales price of $19.60 per unit for net proceeds, after sales commissions, of $1.0 million. For the year ended December 31, 2019, the Partnership sold 496,520 Series A preferred units at an average gross sales price of $26.79 per unit for net proceeds, after sales commissions, of $13.1 million. The Partnership has paid an aggregate of $0.2 million in sales commissions to the Agent in connection with such sales for the period ended December 31, 2019. Proceeds in the table below are included for all units issued for the year ended December 31, 2019. Year ended December 31, 2019 Series A Common preferred (in thousands of U.S. dollars) units units Total Gross proceeds for units issued $ 1,042 13,298 $ 14,340 Less: Commissions (13) (233) (246) Net proceeds for units issued $ 1,029 13,065 $ 14,094 For the year ended December 31, 2018, the Partnership sold 253,106 common units at an average gross sales price of $18.26 per unit for net proceeds, after sales commissions, of $4.6 million. For the year ended December 31, 2018, the Partnership sold 1,529,070 Series A preferred units at an average gross sales price of $25.74 per unit for net proceeds, after sales commissions, of $38.7 million. The Partnership has paid an aggregate of $0.8 million in sales commissions to the Agent in connection with such sales for the period ended December 31, 2018. Proceeds in the table below are included for all units issued for the year ended December 31, 2018. Year ended December 31, 2018 Series A Common preferred (in thousands of U.S. dollars) units units Total Gross proceeds for units issued $ 4,623 39,360 $ 43,983 Less: Commissions (60) (701) (761) Net proceeds for units issued $ 4,563 38,659 $ 43,222 |
Common, subordinated and prefer
Common, subordinated and preferred units | 12 Months Ended |
Dec. 31, 2020 | |
Common, subordinated and preferred units | |
Common, subordinated and preferred units | 20. Common, subordinated and preferred units The following table shows the movements in the number of common units, subordinated units and preferred units during the years ended December 31, 2020, 2019 and 2018: Common 8.75% Common Units Series A Units Höegh Subordinated Preferred (in units) Public LNG Units Units December 31, 2017 17,648,844 2,116,060 13,156,060 4,600,000 June 6, 2018; Awards to non-employee directors as compensation for directors' fees 8,840 — — — July 5, 2018; Awards to non-employee directors as compensation for directors' fees 2,210 — — — Units issued to staff at Höegh LNG during 2018 14,622 (14,622) — — Phantom units issued to CEO/CFO during 2018 17,079 — — — ATM program (from January 26, 2018 to December 31, 2018) 253,106 — — 1,529,070 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 September 4, 2020; Awards to non-employee directors as compensation for directors' fees 3,882 — — — September 15, 2020; Awards to non-employee directors as compensation for directors' fees 7,764 — — — October 23, 2020; Awards to non-employee directors as compensation for directors' fees 3,882 — — — Phantom units issued to CEO/CFO during 2020 6,627 — — — ATM program (from January 1, 2020 to December 31, 2020) — — — 126,743 December 31, 2020 18,050,941 15,257,498 — 6,752,333 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 December 31, 2020 and 2019, Höegh LNG owned 15,257,498 common units. As of December 31, 2018, Höegh LNG owned 2,101,438 common units and 13,156,060 subordinated units. Refer to note 21 for information on distributions to common and subordinated 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 | 12 Months Ended |
Dec. 31, 2020 | |
Earning per unit and cash distributions | |
Earning per unit and cash distributions | 21. Earning per unit and cash distributions The calculation of basic and diluted earnings per unit are presented below: Year ended December 31, (in thousands of U.S. dollars, except per unit numbers) 2020 2019 2018 Net income $ 63,145 52,741 $ 77,622 Adjustment for: Preferred unitholders’ interest in net income 14,802 13,850 12,303 Limited partners' interest in net income 48,343 38,891 65,319 Less: Dividends paid or to be paid (1) (60,222) (60,149) (59,952) Under (over) distributed earnings (11,879) (21,258) 5,367 Under (over) distributed earnings attributable to: Common units public (6,437) (11,514) 2,900 Common units Höegh LNG (5,442) (3,211) 340 Subordinated units Höegh LNG (4) — (6,533) 2,127 $ (11,879) (21,258) $ 5,367 Basic weighted average units outstanding (in thousands) Common units public 18,034 17,986 17,856 Common units Höegh LNG 15,257 7,039 2,101 Subordinated units Höegh LNG (4) — 8,218 13,156 Diluted weighted average units outstanding (in thousands) Common units public 18,037 17,995 17,864 Common units Höegh LNG 15,257 7,039 2,101 Subordinated units Höegh LNG (4) — 8,218 13,156 Basic and diluted earnings per unit (2): Common unit public $ 1.40 $ 1.12 $ 1.93 Common unit Höegh LNG (3) $ 1.51 $ 1.84 $ 2.03 Subordinated unit Höegh LNG (3) (4) $ — $ 0.70 $ 2.03 (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. Effective June 3, 2016, the Partnership granted 21,500 phantom units to the then-serving CEO/CFO of the Partnership. One-third of such phantom units vest as of December 31, 2017, November 30, 2018 and November 30, 2019, respectively. On September 14, 2018, the plan was amended to extend the terms and conditions of such 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, a total of 15,378 of the unvested phantom units terminated. (3) Includes total amounts attributable to incentive distributions rights of $1,598 , $1,597 and $1,591 for the years ended December 31, 2020, 2019 and 2018, respectively. For the year ended December 31, 2020 the full amount was attributable to common units owned by Höegh LNG. For the years ended December 31, 2019 and 2018, respectively, $908 and $219 was attributed to common units owned by Höegh LNG and $ 688 and $1,372 was 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 | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent events | |
Subsequent events | 22. Subsequent events On February 12, 2021, the Partnership paid a cash distribution of $15.1 million, or $0.44 per common unit, with respect to the three months ended December 31, 2020, equivalent to $1.76 per unit on an annualized basis. On February 16, 2021, the Partnership paid a cash distribution of $3.9 million, or $0.546875 per Series A preferred unit, for the period commencing on November 15, 2020 to February 14, 2021. For the period from January 1, 2021 to April 9, 2021, the Partnership sold an aggregate of 52,603 common units under the ATM program at an average gross sales price of $15.75 per unit and received net proceeds, after sales commissions, of $0.8 million and 336,992 Series A preferred units under the ATM program at an average gross sales price of $25.12 per units and received net proceeds, after sales commissions, of $8.3 million. On March 8, 2021, Höegh LNG announced a recommended offer by Leif Höegh & Co. Ltd. (“LHC”) and funds managed by Morgan Stanley Infrastructure Partners (“MSIP”) through a 50/50 joint venture, Larus Holding Limited (“JVCo”), to acquire the remaining issued and outstanding shares of Höegh LNG not currently owned by LHC or its affiliates (the “Amalgamation”). Immediately following the completion of the Amalgamation, Höegh LNG would be wholly-owned by JVCo, and the common shares of Höegh LNG would be delisted from the Oslo Stock Exchange. The Amalgamation has been approved by Höegh LNG's shareholders and bondholders and is anticipated to close in the first half of 2021. The Amalgamation is subject to waivers of specific change of control and delisting provisions in relation to certain of the Partnership's and Höegh LNG's credit agreements, as well as the satisfaction of other customary closing conditions. Following the consummation of the Amalgamation, unless otherwise agreed between the parties, some provisions of the omnibus agreement in connection with the IPO will terminate by their terms, including (i) the prohibition on Höegh LNG from acquiring, owning, operating or chartering any Five-Year Vessels (as defined in “Major Unitholders and Related Party Transactions - Related Party Transactions - Omnibus Agreement - Non Competition”), (ii) the prohibition on us from acquiring, owning, operating or chartering any Non-Five-Year Vessels, and (iii) the rights of first offer associated with those rights. As a consequence, following the consummation of the Amalgamation, unless otherwise agreed between the parties, Höegh LNG will not be required to offer us Five-Year Vessels and will be permitted to compete with us. The commercial tranche of the Lampung facility becomes due in October 2021 and the export credit tranche can be called if the commercial tranche is not refinanced. To address the liquidity needs, the Partnership is at an advanced stage of the process to refinance the Lampung facility. As of April 9, 2021, a group of lending banks have provided a credit approved term sheet for the refinancing of both the commercial tranche and the export credit tranche. The refinancing is subject to completion of the loan documentation and satisfaction of customary closing conditions before drawdown. The refinancing is expected to be completed before the due date of the commercial tranche in October 2021. Accordingly, based on the refinancing plans, we believe we have sufficient resources to meet our anticipated liquidity requirements for at least the next 12 months. |
Schedule I
Schedule I | 12 Months Ended |
Dec. 31, 2020 | |
Schedule I | |
Schedule I | Exhibit 15.1 Schedule I – Condensed Financial Information of Registrant CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Total revenue $ — — $ — EXPENSES Administrative expenses (6,279) (6,473) (5,822) Equity in earnings of subsidiaries 64,296 60,315 68,359 Equity in earnings (losses) of joint ventures 6,420 6,078 17,938 Interest income 15,983 11,205 93 Interest expense (17,139) (18,242) (2,938) Other items, net (136) (142) (8) Net income $ 63,145 52,741 $ 77,622 Share of subsidiaries unrealized losses on cash flow hedges (11,367) (12,217) (2,290) Share of subsidiaries income tax benefit (262) (389) (299) Comprehensive income $ 51,516 40,135 $ 75,033 See accompanying notes to condensed financial statements. CONDENSED BALANCE SHEETS As of December 31, (in thousands of U.S. dollars) 2020 2019 Cash $ 2,058 $ 6,934 Current portion of long-term loans to subsidiaries 26,717 25,597 Promissory note from subsidiaries 123,248 123,248 Prepaid expenses and other receivables 1,097 224 Total current assets 153,120 156,003 Accumulated earnings of joint ventures 9,690 3,270 Loans to subsidiaries 237,489 260,636 Investments in subsidiaries 455,582 449,570 Total long-term assets 702,761 713,476 Total assets $ 855,881 $ 869,479 LIABILITIES AND PARTNER’S CAPITAL Current portion of long-term debt $ 25,597 $ 25,597 Trade payables 86 52 Amounts due to owners and affiliates 732 398 Derivative instruments 4,699 1,821 Accrued liabilities and other payables 2,860 3,155 Total current liabilities 33,974 31,023 Long-term debt 294,032 318,650 Loans due to owners and affiliates 18,465 8,792 Derivative instruments 16,095 9,504 Total long-term liabilities 328,592 336,946 Total liabilities 362,566 367,969 Total partners’ capital 493,315 501,510 Total liabilities and partners’ capital $ 855,881 $ 869,479 See accompanying notes to condensed financial statements. CONDENSED STATEMENT OF CASH FLOW Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Net cash provided by operating activities $ 48,656 33,130 $ 42,401 INVESTING ACTIVITIES Long-term loan due from subsidiaries 22,027 (286,133) — Net cash provided by (used in) investing activities 22,027 (286,133) — FINANCING ACTIVITIES Net proceeds from issuance of Series A Preferred Units 3,174 13,065 38,659 Net proceeds from issuance of common units — 1,029 4,563 Proceeds from long-term debt — 368,300 — Proceeds from loans due to owners and affiliates 21,750 3,500 5,400 Repayment of long-term debt (25,597) (19,198) — Repayment of debt issuance cost — (5,797) — Repayment of amounts due to owners and affiliates — (34,000) (17,500) Proceeds from indemnifications received from Höegh LNG — — 1,701 Repayment of indemnifications received from Höegh LNG — (64) (2,535) Cash distributions to limited partners (74,886) (73,804) (72,497) Net cash provided by (used in) financing activities (75,559) 253,301 (42,209) Increase (decrease) in cash, cash equivalents and restricted cash (4,876) (72) 374 Cash, cash equivalents and restricted cash, beginning of period 6,934 7,006 6,632 Cash, cash equivalents and restricted cash, end of period $ 2,058 6,934 $ 7,006 See accompanying notes to condensed financial statements. 1. Basis of presentation Höegh LNG Partners LP – the Parent company is a Marshall Islands limited partnership formed on April 28, 2014. In the parent-only financial statements, the investment in subsidiaries and investment in joint ventures are stated at cost plus equity in undistributed earnings of subsidiaries and accumulated earnings in joint ventures since the date of acquisition and the closing of the initial public offering of Höegh LNG Partners LP (the “Partnership”) on August 12, 2014. The Partnership’s share of net income of its unconsolidated subsidiaries and joint ventures is included in the condensed income statement using the equity method. The Parent company’s financial statements should be read in conjunction with the Partnership’s consolidated financial statements contained elsewhere in the Partnership’s Report on Form 20-F for the year ended December 31, 2020. 2. Dividends A cash dividend of $55.8 million, $42.4 million and $51.7 million was paid to the Parent company from its consolidated subsidiaries for the years ended December 31, 2020, 2019 and 2018, respectively. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Basis of presentation | Basis of presentation The consolidated financial statements are prepared in accordance with US GAAP. All intercompany balances and transactions are eliminated. The consolidated financial statements have been prepared assuming that the Partnership will continue as a going concern. Please refer to note 22 for the Partnership’s plan to refinance the Lampung debt facility. 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. PT Hoegh LNG Lampung had not established the required statutory reserves as of December 31, 2020 and 2019. Therefore, PT Hoegh LNG Lampung cannot make dividend payments under Indonesian law. Under the Lampung facility, there are limitations on cash dividends and intercompany loans that can be made to the Partnership. Refer to note 12. As of December 31, 2020 and 2019, restricted net assets of the consolidated subsidiaries were $179.9 million and $169.8 million, respectively. The Partnership has 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 financial support. 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. As of December 31, 2020 and 2019, restricted net assets of the consolidated subsidiaries were $0.0 million. The Partnership has also determined that Höegh LNG Colombia Holding Ltd. is a VIE since the entity would not be able to finance its activities without financial support and financial guarantees under its subsidiary’s facility to finance the Höegh Grace Dividends and other distributions from Hoegh LNG Cyprus Limited, Höegh LNG Colombia Holding 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 12. 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 shareholder 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 $3.3 million and $3.0 million as of December 31, 2020 and 2019, respectively. The Partnership’s accumulated earnings, or its share of net assets, was $5.5 million and $2.6 million, respectively, as of December 31, 2020 and 2019. The Partnership’s carrying value for SRV Joint Gas Two Ltd. consists of a receivable for the advances of $0.9 million and $0.8 million as of December 31, 2020 and 2019, respectively. The Partnership’s accumulated earnings, or its share of net assets, was $4.2 million and $0.7 million, respectively, as of December 31, 2020 and 2019. The major reason that the Partnership had low accumulated earnings in the joint ventures as of December 31, 2019 and the major reason that the Partnership historically has 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 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. |
Foreign currencies | Foreign currencies The reporting currency in the consolidated financial statements is the U.S. dollar, which is the functional currency of the FSRU-owning entities. Nearly all revenues are received in U.S. dollars and a majority of the Partnership’s expenditures for investments and all of the long-term debt are denominated in U.S. dollars. Transactions denominated in other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the time of the transactions. Monetary assets and liabilities that are denominated in currencies other than the U.S. dollar are translated at the exchange rates in effect at the balance sheet date. Resulting gains or losses are reflected in the accompanying consolidated statements of income. |
Business combinations and asset acquisitions | Business combinations and asset acquisitions Business combinations are accounted for under the purchase method of accounting. Under this method, the purchase price is allocated to identifiable assets acquired and liabilities assumed based on their fair values as of the acquisition date. Any excess of the purchase price over the fair values of net assets is recognized as goodwill. Acquisition related costs are expensed as incurred. The results of entity acquired are included in the consolidated financial statements from the date of acquisition. Dependent upon facts and circumstances, the assessment of a transaction may be considered the acquisition of an asset, when substantially all of the fair value of assets acquired is concentrated in a single identifiable asset, rather than a business combination. Asset acquisitions are accounted for by allocating the cost of the acquisition to the individual assets acquired and liabilities assumed on a relative fair value basis. Acquisition related costs are capitalized as a component of the cost of the assets acquired. |
Time charter revenue, related contract balances and related expenses | Time charter revenue, related contract balances and related expenses Time charter revenues and related contract balances : The Partnership is required to evaluate whether two or more contracts should be combined and accounted for as a single contract, whether the contract promises to deliver more than one distinct good or service, or performance obligations, and/or a lease, determine the transaction price under the contract, allocate the transaction price to the lease and the performance obligations and recognize revenue as the performance obligation is satisfied. 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, when adopting the revised guidance on leases as of January 1, 2019, the Partnership did not elect to apply the practical expedient to not separate lease and services components for operating leases because this would result in inconsistent disclosure for the time charter contracts. Performance obligations : The Partnership determined that its time charter contracts contain a lease and a performance obligation for the provision of time charter services. The lease of the vessel, representing the use of the vessel without any associated performance obligations or warranties, is accounted for in accordance with the provisions of Accounting Standards Codification ("ASC") 842, Leases The provision of time charter services, including guarantees for the level of performance provided by the time charter contracts, is considered a distinct service and is accounted for in accordance with the provision of ASC 606, Revenue from Contracts with Customers. Time charter services revenue can be recognized as the performance obligation is satisfied over the 24-hour interval to the performance standards specified under the time charter contract. If the performance standards are not met, off-hire, reduced hire, liquidated damages or other performance payments may result. Contract terms, determination of transaction price and allocation to performance obligations : The Partnership’s time charter contracts for all FSRUs, except the Höegh Gallant ● Fixed element : The fixed element is a fixed per day fee intended to cover remuneration for use of the vessel and the provision of time charter services. ● Operating expense reimbursement element : The operating expense reimbursement element is a rate per day intended to cover the operating costs of the vessel, including the crew, insurance, consumables, miscellaneous services, spares and maintenance and repairs costs and management services and fees. The amount of the operating expense reimbursement element may be based on actual cost incurred, or fees subject to indexing or other adjustments after a defined period, or a combination of both. ● Tax reimbursement element : The tax reimbursement element may be a rate per day, based on the estimated liability for the year divided by the number of days in the year, subject to adjustment for actual taxes incurred, or a reimbursement of the costs as the taxes are incurred. The tax reimbursement element may cover withholding taxes, payroll taxes, other local taxes and current income tax expense for the jurisdiction in which the vessel operates as defined by the provisions of the individual time charter contract. ● Performance warranties element : The performance warranties element includes defined operational capacity and standards that can result in the FSRUs being off-hire or require compensation to the charterer through provision of reduced hire, liquidated damages or performance payments. Examples of performance warranties include the ability to discharge regasified LNG at specified performance rates, guaranteed minimum fuel consumption, guaranteed minimum boil-off rates and the ability to accept cargos. The Höegh Gallant Höegh Gallant The hire rates for the PGN FSRU Lampung Höegh Gallant Höegh Grace The transaction price is estimated as the standalone selling price for the lease and the time charter services components of the fixed day rate element. Variable consideration per day for operating expense and tax reimbursements is estimated at the most likely amount to which the Partnership is expected to be entitled to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty related to the variable consideration is resolved. When there is significant uncertainty related to that amount of variable consideration to be received, that variable consideration is considered constrained. Typically, variable reimbursements and performance warranties are known at the end of each 24-hour interval, or as subsequently reassessed at the end of the reporting period. However, to the extent interpretations of contractual provisions are complex and/or disputed with the customer, this could give rise to constrained variable consideration. Constrained variable consideration is not estimated. Variable consideration is allocated entirely to one performance obligation when the variable day rate relates specifically to the efforts to satisfy the single performance obligation. The default method of the relative standalone selling price method was used to allocate the remaining transaction price, principally the fixed element, between the lease and the time charter services. The total estimated transaction price for time charter services is considered variable consideration because it may be reduced by performance warranties. The Partnership has made a policy election to exclude from the measurement of the transaction price all taxes assessed by a government entity on revenues and collected on behalf of that government entity from customers, such as sales or value added taxes. Lease revenue recognition : Leases are classified based upon defined criteria either as sale-type/direct financing leases (“financing leases”) or operating leases. A lease that transfers substantially all of the benefits and risks of the FSRU to the charterer is accounted for as a financing lease by the lessor. All other leases that do not meet the criteria are classified as operating leases. On January 1, 2019, when adopting the revised leasing guidance, the Partnership elected the package of practical expedients and did not reassess conclusions under the previous standard about whether any existing contracts are, or contain leases, lease classification, and initial direct costs for any existing leases. Accordingly, outstanding leases on January 1, 2019, continue to be classified in accordance with the prior lease guidance. The lease component of time charters that are accounted for as operating leases is recognized on a straight-line basis over the term of the charter. The Höegh Gallant’s five Höegh Grace’s The lease component of time charters that are accounted for as financing leases is recognized over the lease term using the effective interest rate method and is included in time charter revenues. Origination costs related to the time charter are a component of the net investment in financing lease and amortized over the lease term using the effective interest method. Financing leases are reflected on the consolidated balance sheets as net investments in financing leases. The PGN FSRU Lampung Time charter services revenue recognition : Variable consideration for the time charter services performance obligation, including amounts allocated to time charter services, estimated reimbursements for vessel operating expenses and estimated reimbursements of certain types of costs and taxes, are recognized as revenues as the performance obligation for the 24-hour interval is fulfilled, subject to adjustment for off-hire and performance warranties. Constrained variable consideration is recognized as revenue on a cumulative catch-up basis when the significant uncertainty related to that amount of variable consideration to be received is resolved. Estimates for variable consideration, including constrained variable consideration, are reassessed at the end of each period. Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes directly related to the provision of the time charter services are recorded as a component of time charter service revenues. The amount of non-cash revenue is disclosed separately in the consolidated statement of cash flows. Joint venture FSRUs lease and time charter services revenue recognition : The Partnership’s interest in the Joint venture FSRUs’ net income is included in the consolidated financial statements under the equity method of accounting, however, the Joint venture FSRUs’ results are presented under the proportional consolidation method for the segment note (note 3) and the time charter revenue note (note 4). The Neptune’s Cape Ann’s twenty The accounting policy for time charter services for the joint ventures is the same as described above. Significant judgments in revenue recognition : The Partnership does not provide stand-alone bareboat leases or time charter services for FSRUs. As a result, observable stand-alone transaction prices for the performance obligations are not available. The estimation of the transaction price for the lease and the time charter service performance obligation is complex, subject to a number of input factors, such as market conditions when the contract is entered into, internal return objectives and pricing policies, and requires substantial judgment. Significant changes in the transaction price between the two performance obligations could impact conclusions on the accounting for leases as financing or operating leases. In addition, variable consideration is estimated at the most likely amount that the Partnership expects to be entitled to. Variable consideration is reassessed at the end of the reporting period taking into account performance warranties. The time charter contracts include provisions for performance guarantees that can result in off-hire, reduced hire, liquidated damages or other payments for performance warranties. Measurement of some of the performance warranties can be complex and require properly calibrated equipment on the vessel, complex conversions and computations based on substantial judgment in the interpretation of the contractual provisions. Conclusions on compliance with performance warranties impact the amount of variable consideration recognized for time charter services. Contract assets: Revenue recognized in excess of the monthly invoiced amounts, or accrued revenue, is recorded as contract assets on the consolidated balance sheet. The contract assets are reported in the consolidated balance sheet as a component of prepaid expenses and other receivables. Contract liabilities: Advance payments in excess of revenue recognized, or prepayments, and deferred revenue is recorded as contract liabilities on the consolidated balance sheet. Contract assets and liabilities are reported in a net position for each customer contract or combined contracts at the end of each reporting period. Contract liabilities are classified as current or non-current based on the expected timing of recognition of the revenue. Current and non-current contract liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables and other long-term liabilities, respectively. Refund liabilities: Amounts invoiced or paid by the customer that are expected to be refunded to the customer are recorded as refund liabilities on the consolidated balance sheet. Refund liabilities may include invoiced amounts for estimated reimbursable operating expenses or other costs and taxes that exceeded the actual costs incurred, or off-hire, reduced hire, liquidated damages, or other payments for performance warranties. Refund liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables. Remaining performance obligations : Remaining performance obligations represent the transaction price of contracts with customers under the scope of ASC 606 for which work has not been performed excluding unexercised contract options to extend the term. The Partnership qualifies for and has elected to apply the exemption to disclose the aggregate amount of remaining transaction price allocated to unsatisfied performance obligations at the end of the reporting period as consideration for time charter services is variable and allocated entirely to wholly satisfied performance obligations. Related expenses : Voyage expenses include bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls and agency fees. Voyage expenses are all expenses unique to a particular voyage and when a vessel is on hire under time charters are generally the responsibility of, and paid directly by the charterers, and not included in the statement of income. When the vessel is off-hire, voyage expenses, principally fuel, may also be incurred and are paid by the FSRU-owning entity. Vessel operating expenses, reflected in expenses in the statement of income, include crewing, repairs and maintenance, insurance, stores, lube oils, communication expenses and management fees. Vessel operating expenses also include bunker fuel expenses when the vessel is on hire and the expenses are not directly paid and owed by the charterers. When the vessel is on hire, vessel operating expenses are invoiced as time charter service fees to the charterer or are covered by time charter rates. When the vessel is off-hire, vessel operating expenses are not invoiced to the charterer. Voyage expenses, if applicable, and vessel operating expenses are expensed when incurred. |
Loss contingencies, insurance and other claims | Loss contingencies, insurance and other claims Accruals are recorded for loss contingencies or claims when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. Significant judgment is required to determine the probability and the estimated amount of loss. Such assessments involve complex judgments about future events and estimates and assumptions that are deemed reasonable by management. Accruals are reviewed quarterly and adjusted to reflect the impact of additional information such as the impact of negotiations, advice of legal counsel or settlements. Insurance claims for property damage are recorded, net of any deductible amounts, for recoveries up to the amount of loss recognized when the claims to insurance carriers are probable of recovery. Claims for property damage in excess of the loss recognized and for loss of revenue during off-hire, whether from insurance providers or indemnification from Höegh LNG, are considered gain contingencies, which are recognized when the proceeds are received. Indemnification proceeds from Höegh LNG that cover the Partnership’s costs are accounted for following the guidance of the Securities and Exchange Commission’s Staff Accounting Bulletin (“SAB”) Topic 1.B and SAB Topic 5.T. SAB Topic 1.B provides that the separate financial statements of a subsidiary should reflect any costs of its operations which are incurred by the owner on its behalf. SAB Topic 5.T provides that costs should be reflected as an expense in the subsidiary’s financial statements with a corresponding credit to contributed equity. |
Income taxes | Income taxes Income taxes are accounted for using the liability method. 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 income tax expense. The amount of non-cash income tax expense is disclosed separately in the consolidated statement of cash flows. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the tax and the book bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. 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. If the more-likely-than-not recognition criterion is met, a tax position is measured based on the cumulative amount that is more-likely-than-not of being sustained upon examination by tax authorities to determine the amount of benefit to be recognized in the consolidated financial statements. Interest and penalties related to uncertain tax positions is recognized in income tax expense in the consolidated statement of income. |
Cash and cash equivalents | Cash and cash equivalents Cash, banks deposits, time deposits and highly liquid investments with original maturities of three months or less are recognized as cash and cash equivalents. |
Restricted cash and cash designated for acquisition | Restricted cash Restricted cash includes balances deposited with a bank as required under debt facilities to settle withholding tax, other tax liabilities and other current obligations of the entity, and principal and interest payments as required by the debt facilities. Restricted cash is classified as long-term when the settlement is more than 12 months from the balance sheet date. |
Trade receivables and allowance for expected credit losses | Trade receivables and allowance for expected credit losses Trade receivables are recorded at the invoiced amount and do not bear interest. Trade receivables, contract assets and the net investment in a financing lease is initially recorded by including the current expected credit loss of the asset over the life of the contract. The allowance for expected credit losses is a valuation account that is deducted from the amortized cost of the asset to present the net amount expected to be collected. Each period the allowance for expected credit losses is adjusted through earnings to reflect the revised expected credit losses over the remaining lives of the assets. Receivable amounts are written off against the allowance when the asset is confirmed uncollectible. Expected credit losses are estimated using historical credit loss experience, relevant available information, from internal and external sources, relating to current conditions and reasonable and supportable forecasts of economic conditions impacting the collectability of the assets. |
Investments in accumulated earnings or losses of and advances to joint ventures | Investments in accumulated earnings or losses of and advances to joint ventures Investments in joint ventures are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for the Partnership’s proportionate share of earnings or losses and dividend distributions. As of December 31, 2020 and 2019, the Partnership had an accumulated share of earnings and the balance is classified on the consolidated balance sheet as an asset on the line accumulated earnings of joint ventures. Advances to joint ventures represent loan receivables due from the joint ventures and are recorded at cost. Interest on the advances to joint ventures is recorded to interest income in the consolidated statements of income as incurred. The quarterly payments from joint ventures included a payment of interest for the first month of the quarter and repayment of principal. Interest is accrued for the last two months of the quarter for repayment at the end of the loans after the original principal was fully repaid. The joint ventures repaid the original principal of all shareholder loans during 2016. Payments of interest, including accrued interest repaid at the end of the loans, are treated as return on investment and included as a component of net cash provided by operating activities in the consolidated statement of cash flows. Payments of principal are included as a component of net cash provided by investing activities in the consolidated statement of cash flows. Investments in joint ventures are evaluated for impairment when events or circumstances indicate that the carrying value of such investments may have experienced an other-than-temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the consolidated statement of income. Loan receivables are impaired when, based on current information and events, it is probable that the full amount of the receivable will not be collected. The amount of the impairment is measured as the difference between the present value of expected future cash flows discounted at the loan’s effective interest rate and the carrying amount. The resulting impairment amount is recognized in earnings. |
Inventory | Inventory Inventory consists of bunker fuel maintained on the FSRUs, if it is owned by the FSRU-owning entity. Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. |
Vessels | Vessels All costs incurred during the construction of newbuildings, including interest and supervision and technical costs, are capitalized. The cost of an acquired vessel is the fair value. Vessels are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over a vessel’s estimated useful life, less an estimated residual value. Depreciation is calculated using an estimated useful life of 35 years for the FSRUs. Modifications to the vessels, including the addition of new equipment, which improves or increases the operational efficiency, functionality or safety of the vessels, are capitalized. These expenditures are amortized over the estimated useful life of the modification. Expenditures covering recurring routine repairs and maintenance are expensed as incurred. Drydocking expenditures are capitalized when incurred and amortized over the period until the next anticipated drydocking. For vessels that are newly built, the "built-in overhaul" method of accounting is applied. Under the built-in overhaul method, costs of the newbuilding are segregated into costs that should be depreciated over the useful life of the vessel and costs that require drydocking at periodic intervals. The drydocking component is amortized until the date of the first drydocking following the delivery, upon which the actual drydocking cost is capitalized and the process is repeated. Costs of drydocking incurred to meet regulatory requirements or improve the vessel’s operating efficiency, functionality or safety are generally capitalized. Costs incurred related to routine repairs and maintenance performed during drydocking are expensed. |
Impairment of long-lived assets | Impairment of long-lived assets Vessels are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. When such events or changes in circumstances are present, the recoverability of vessels is assessed by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the vessel’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, the carrying amount of the asset is reduced to its estimated fair value. An impairment loss is recognized based on the excess of the carrying amount over the fair value of the vessel. |
Intangibles and goodwill | Intangibles and goodwill Intangible assets are initially measured at their fair value as of the acquisition date of a business combination. All intangible assets of the Partnership have a definite life. Intangible assets with a definite life are amortized over their useful life. Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount exceeds the estimated fair value of the asset. In determining the useful lives of intangible assets, the expected use of the assets, the contractual provisions that limit the useful life and other economic factors are considered. The contract related intangibles and their useful lives as of the acquisition dates, are as follows: Useful life Intangible category (Years) Above market time charter Höegh Gallant 3.4 Option for time charter extension Höegh Gallant 5.3 Above market time charter Höegh Grace 9.5 The intangible for the above market value of the time charter contract associated with the Höegh Gallant Höegh Gallant Höegh Grace Höegh Grace Goodwill arises when an acquisition is accounted for under the purchase method of accounting. The assets acquired and liabilities assumed are recorded at their fair values as of the acquisition date. Any excess of the consideration over the net assets acquired is recorded as goodwill. Goodwill is not amortized and is tested annually for impairment of value and whenever events or circumstances indicate that the carrying amount may not be recoverable. |
Derivative instruments | Derivative instruments All derivative instruments are initially recorded at fair value as either assets or liabilities in the consolidated balance sheet and are subsequently remeasured to fair value, regardless of the purpose or intent for holding the derivative. The method of recognizing the resulting gain or loss is dependent on whether the contract is designated as a hedging instrument and qualifies for hedge accounting. For derivative instruments that are not designated or that do not qualify for hedge accounting, the changes in the fair value of the derivative instruments are recognized in earnings. In order to designate a derivative as a cash flow hedge, formal documentation of the relationship between the derivative and the hedged item is required. This documentation includes the strategy and risk management objective for undertaking the hedge and the method that will be used to assess the effectiveness of the hedge. Interest rate swaps are used for the management of 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 transactions. As of January 1, 2019, the following accounting policies became effective for cash flow hedges of interest rate swaps. For interest rate swaps qualifying as cash flow hedges, the fair value of the portion of the derivative instruments included in the assessment of hedge effectiveness ("hedge effectiveness") and the initial fair value of the hedge component excluded from hedge effectiveness are initially recorded in accumulated other comprehensive income as a component of total equity. Subsequent changes in fair value for the portion of the derivative instruments included in hedge effectiveness are recorded in other comprehensive income. In the periods when the hedged items affect earnings (interest expense is incurred for floating interest rate debt), those amounts are transferred from accumulated other comprehensive income to the same line (interest expense) in the consolidated statement of income as the earnings effect of the hedged item. The initial fair value component excluded from hedge effectiveness is amortized to earnings over the life of the hedging instrument. The amortization is recognized on the same line (interest expense) in the consolidated statement of income as the earnings effect of the hedged item. Any difference in the change in fair value of the hedge components excluded from hedge effectiveness and the amount recognized in earnings is recorded as a component of other comprehensive income. Prospective and retrospective hedge effectiveness is assessed on an ongoing basis. If a cash flow hedge is no longer deemed highly effective, hedge accounting is discontinued. If a cash flow hedge for an interest rate swap is terminated and the originally hedged item is still considered probable of occurring, the gains and losses initially recognized in accumulated other comprehensive income remain there until the hedged item impacts earnings, at which point they are amortized to earnings on a systematic and rational basis to interest expense in the consolidated statement of income. If the hedged items are no longer considered probable of occurring, amounts recognized in total equity are immediately transferred to interest expense in the consolidated statement of income. Cash flows from derivative instruments that are accounted for as cash flow hedges are classified in the same category as the cash flows from the items being hedged. For the year ended December 31, 2018, changes in the fair value of the effective portion of the derivative instruments qualifying as cash flow hedges were initially recorded in other comprehensive income as a component of total equity. Any hedge ineffectiveness was recognized immediately in earnings, as were any gains and losses or amortization on the portion of the derivative instruments that were excluded from the assessment of hedge effectiveness. In the periods when the hedged items affect earnings, those amounts were transferred from accumulated other comprehensive income to the gain (loss) on derivative instruments line in the consolidated statement of income. |
Deferred debt issuance costs and fair value of debt assumed | Deferred debt issuance costs and fair value of debt assumed Debt issuance costs, including arrangement fees and legal expenses, are deferred and presented as a direct deduction from the outstanding principal of the related debt in the consolidated balance sheet and amortized on an effective interest rate method over the term of the relevant loan. Amortization of debt issuance costs is included as a component of interest expense. If a loan or part of a loan is repaid early, any unamortized portion of the deferred debt issuance costs is recognized as interest expense proportionate to the amount of the early repayment in the period in which the loan is repaid. The discount or premium arising in a business combination for the difference in the fair value of the debt assumed compared to the outstanding principal is reported in the consolidated balance sheet as a direct adjustment to the outstanding principal of the related debt and amortized on an effective interest rate method over the term of the relevant loan. Amortization of fair value of the debt assumed is included as a component of interest expense. If a loan or part of a loan is repaid early, any unamortized portion of the discount or premium is recognized as interest expense proportionate to the amount of the early repayment in the period in which the loan is repaid. |
Use of estimates | Use of estimates The preparation of financial statements in accordance with US GAAP requires that management make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates subject to such estimates and assumptions include revenue recognition, purchase price allocation, the useful lives of vessels, drydocking, loss contingencies and the value of derivative instruments. |
Recently adopted accounting pronouncements and Recently issued accounting pronouncements | Recently adopted accounting pronouncements Allowance for expected credit losses: Financial Instruments – Credit Losses: Measurement of Credit Losses For the year ended December 31, 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 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 |
Description of business (Tables
Description of business (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Description of business | |
Schedule of entities | The following table lists the entities included in these consolidated financial statements and their purpose as of December 31, 2020. Jurisdiction of Incorporation Name or Registration Purpose Höegh LNG Partners LP Marshall Islands Holding Company Höegh LNG Partners Operating LLC (100% owned) 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% indirectly owned) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (100% indirectly 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. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Schedule of contract related intangibles and their useful lives | Useful life Intangible category (Years) Above market time charter Höegh Gallant 3.4 Option for time charter extension Höegh Gallant 5.3 Above market time charter Höegh Grace 9.5 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment information | |
Schedule of results of segments | Year ended December 31, 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 $ 143,095 43,572 — 186,667 (43,572) (1) $ 143,095 Total revenues 143,095 43,572 — 186,667 143,095 Operating expenses (27,462) (9,452) (6,350) (43,264) 9,452 (1) (33,812) Equity in earnings (losses) of joint ventures — — — — 6,420 (1) 6,420 Segment EBITDA 115,633 34,120 (6,350) 143,403 Depreciation, amortization and impairment (20,937) (9,965) — (30,902) 9,965 (1) (20,937) Operating income (loss) 94,696 24,155 (6,350) 112,501 94,766 Gain (loss) on derivative instruments — (6,073) — (6,073) 6,073 (1) — Other financial income (expense), net (9,072) (11,662) (16,985) (37,719) 11,662 (1) (26,057) Income (loss) before tax 85,624 6,420 (23,335) 68,709 — 68,709 Income tax expense (5,564) — — (5,564) — (5,564) Net income (loss) $ 80,060 6,420 (23,335) 63,145 — $ 63,145 Preferred unitholders’ interest in net income — — — — 14,802 (2) 14,802 Limited partners’ interest in net income (loss) $ 80,060 6,420 (23,335) 63,145 (14,802) (2) $ 48,343 (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 December 31, 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 $ 619,620 242,226 — 861,846 (242,226) (1) $ 619,620 Net investment in financing lease 274,257 — — 274,257 — 274,257 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 4,153 4,153 — 4,153 Total assets 969,278 267,003 12,532 1,248,813 (267,003) (1) 981,810 Accumulated earnings of joint ventures — — 50 50 9,640 (1) 9,690 Expenditures for vessels & equipment 8 75 — 83 (75) (2) 8 Expenditures for drydocking — 2 — 2 (2) (2) — Principal repayment financing lease 4,551 — — 4,551 — 4,551 Amortization of above market contract $ 3,052 — — 3,052 — $ 3,052 (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 the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Year ended December 31, 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 $ 145,321 42,433 — 187,754 (42,433) (1) $ 145,321 Other revenue 115 — — 115 (1) 115 Total revenues 145,436 42,433 — 187,869 145,436 Operating expenses (2) (34,266) (9,044) (6,465) (49,775) 9,044 (1) (40,731) Equity in earnings (losses) of joint ventures — — — — 6,078 (1) 6,078 Segment EBITDA 111,170 33,389 (6,465) 138,094 Depreciation, amortization and impairment (21,477) (10,030) — (31,507) 10,030 (1) (21,477) Operating income (loss) 89,693 23,359 (6,465) 106,587 89,306 Gain (loss) on debt extinguishment 1,030 — — 1,030 (1) 1,030 Gain (loss) on derivative instruments — (5,209) — (5,209) 5,209 (1) — Other financial income (expense), net (12,511) (12,072) (17,809) (42,392) 12,072 (1) (30,320) Income (loss) before tax 78,212 6,078 (24,274) 60,016 — 60,016 Income tax expense (7,278) — 3 (7,275) — (7,275) Net income (loss) $ 70,934 6,078 (24,271) 52,741 — $ 52,741 Preferred unitholders’ interest in net income — — — — 13,850 (3) 13,850 Limited partners’ interest in net income (loss) $ 70,934 6,078 (24,271) 52,741 (13,850) (3) $ 38,891 (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) The Partnership's Indonesian subsidiary was assessed a property tax and penalties of $3.0 million by the Indonesian authorities for the period from 2015 through 2019. The retroactive assessment was as a result of the issuance of a new regulation in 2019, defining FSRUs as subject to the existing Indonesian property tax law. The property tax and penalties were recorded as a component of vessel operating expenses. (3) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. 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 the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Year ended December 31, 2018 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 144,952 43,169 — 188,121 (43,169) (1) $ 144,952 Other revenue 1,609 — — 1,609 (1) 1,609 Total revenues 146,561 43,169 — 173,846 146,561 Operating expenses (27,294) (10,932) (5,817) (44,043) 10,932 (1) (33,111) Equity in earnings (losses) of joint ventures — — — — 17,938 (1) 17,938 Segment EBITDA 119,267 32,237 (5,817) 145,687 Depreciation and amortization (21,146) (9,725) — (30,871) 9,725 (1) (21,146) Operating income (loss) 98,121 22,512 (5,817) 114,816 110,242 Gain (loss) on derivative instruments 4,681 8,496 — 13,177 (8,496) (1) 4,681 Other financial income (expense), net (26,381) (13,070) (2,615) (42,066) 13,070 (1) (28,996) Income (loss) before tax 76,421 17,938 (8,432) 85,927 — 85,927 Income tax benefit (expense) (8,253) — (52) (8,305) — (8,305) Net income (loss) $ 68,168 17,938 (8,484) 77,622 — $ 77,622 Preferred unitholders’ interest in net income — — — — 12,303 (2) 12,303 Limited partners’ interest in net income (loss) $ 68,168 17,938 (8,484) 77,622 (12,303) (2) $ 65,319 (1) Eliminations reverse each of the income statement line items of the proportional consolidation 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. |
Schedule of total revenues from the customers | For the years ended December 31, 2020, 2019 and 2018, the percentage of consolidated total revenues from the following customers accounted for over 10% of the Partnership’s consolidated total revenues: Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 PT PGN LNG Indonesia 33 % 33 % 33 % Höegh LNG 30 % 31 % 31 % Sociedad Portuaria El Cayao S.A. E.S.P. 37 % 36 % 36 % |
Time charter revenues and rel_2
Time charter revenues and related contract balances (Tables) | 12 Months Ended |
Dec. 31, 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 twelve months ended December 31, 2020, 2019 and 2018: Year ended December 31, 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) $ 87,948 25,760 — 113,708 (25,760) $ 87,948 Time charter service revenues, excluding amortization 58,199 15,098 — 73,297 (15,098) 58,199 Amortization of above market contract intangibles (3,052) — — (3,052) — (3,052) Amortization of deferred revenue for modifications & drydock — 2,714 — 2,714 (2,714) — Total revenues (4) $ 143,095 43,572 — 186,667 (43,572) $ 143,095 Year ended December 31, 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) $ 88,889 25,690 — 114,579 (25,690) $ 88,889 Time charter service revenues, excluding amortization 60,063 14,095 — 74,158 (14,095) 60,063 Amortization of above market contract intangibles (3,631) — — (3,631) — (3,631) Amortization of deferred revenue for modifications & drydock — 2,648 — 2,648 (2,648) — Other revenue (3) 115 — — 115 — 115 Total revenues (4) $ 145,436 42,433 — 187,869 (42,433) $ 145,436 Year ended December 31, 2018 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 $ 89,215 25,690 — 114,905 (25,690) $ 89,215 Time charter service revenues, excluding amortization 59,368 15,078 — 74,446 (15,078) 59,368 Amortization of above market contract intangibles (3,631) — — (3,631) — (3,631) Amortization of deferred revenue for modifications & drydock — 2,401 — 2,401 (2,401) — Other revenue (3) 1,609 — — 1,609 — 1,609 Total revenues (4) $ 146,561 43,169 — 189,730 (43,169) $ 146,561 (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 (losses) of joint ventures on the consolidated income statement. (2) The financing lease revenues comprise about one-fourth of the total lease revenues for the years ended December 31, 2020 and 2019. (3) Other revenue consists of insurance proceeds received for prior period claims related to repairs under the Mooring warranty and for repairs for the Höegh Gallant . 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 3 and 17. (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 December 31, (in thousands of U.S. dollars) 2020 2019 Trade receivable for lease $ 2,608 $ 2,898 Trade receivable for time charter services 1,506 2,133 Allowance for expected credit losses (60) — Total trade receivable and amounts due from affiliates $ 4,054 $ 5,031 |
Summary of contract assets, contract liabilities and refund liabilities to customers | The following table summarizes the consolidated contract assets, contract liabilities and refund liabilities to customers, as of December 31, 2020 and 2019: Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2020 $ 279 $ (125) Additions — (841) Reduction for receivables recorded (18) — Reduction for revenue recognized (excluding amortization) — 10 Reduction for revenue recognized from previous years — 48 Repayments of refund liabilities to charterer — 17 Balance December 31, 2020 $ 261 $ (891) Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance 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 December 31, 2019 $ 279 $ (125) |
Summary of minimum contractual future revenues | As of December 31, 2020, the minimum contractual future revenues to be received under the time charters for the PGN FSRU Lampung, Höegh Gallant Höegh Grace (in thousands of U.S. dollars) Service related Lease related Total 2021 $ 32,369 90,441 $ 122,810 2022 32,369 90,441 122,810 2023 32,369 90,441 122,810 2024 32,369 90,441 122,810 2025 27,091 77,717 104,808 Thereafter 96,683 286,467 383,150 Total - undiscounted $ 253,250 725,948 $ 979,198 Operating lease $ 321,724 Financing lease 404,224 Discounting effect (172,499) Financing lease receivable $ 231,725 |
Summary of direct financing lease | As of 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 at origination 297,824 297,824 Principal repayment and amortization (23,471) (18,920) Allowance for credit loss (96) — Net investment in financing lease at period end 274,257 278,904 Less: Current portion (4,969) (4,551) Long term net investment in financing lease $ 269,288 $ 274,353 Net investment in financing lease consists of: Financing lease receivable $ 231,725 $ 240,000 Unguaranteed residual value 42,532 38,904 Net investment in financing lease at period end $ 274,257 $ 278,904 |
Financial income (expense), n_2
Financial income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial income (expense), net | |
Schedule of components of financial income (expense), net | The components of financial income (expense), net are as follows: Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Interest income $ 605 947 $ 725 Interest expense: Interest expense (22,003) (24,950) (26,077) Commitment fees (138) (381) (37) Amortization of debt issuance cost and fair value of debt assumed (2,289) (2,361) (700) Total interest expense (24,430) (27,692) (26,814) Gain (loss) on debt extinguishment — 1,030 — Gain (loss) on derivative instruments — — 4,681 Other items, net: Foreign exchange gain (loss) 444 (396) (193) Bank charges, fees and other (276) (297) (143) Withholding tax on interest expense and other (2,400) (2,882) (2,571) Total other items, net (2,232) (3,575) (2,907) Total financial income (expense), net $ (26,057) (29,290) $ (24,315) |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income tax | |
Schedule of components of income tax expense | The components of income tax expense recognized in the consolidated statements of income are as follows: Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Current tax (benefit) expense $ 3,832 4,126 $ 4,759 Deferred tax (benefit) expense for Change in temporary differences 1,335 3,341 3,290 Tax loss and tax credit carried forward 393 (196) 247 Change in valuation allowance 4 4 9 Total deferred tax (benefit) expense 1,732 3,149 3,546 Total income tax (benefit) expense $ 5,564 7,275 $ 8,305 Deferred tax (benefit) expense recognized in the consolidated statements of comprehensive income as a component of other comprehensive income (“OCI”) are as follows: Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Cash flow hedge derivative instruments $ 262 389 $ 299 Deferred tax (benefit) expense recognized in OCI $ 262 389 $ 299 |
Schedule of reconciliation of the income before tax at the statutory rate | The reconciliation of the income before tax at the statutory rate in the Marshall Islands to the actual income tax expense for each year is as follows: Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Income before tax $ 68,709 60,016 $ 85,927 At applicable statutory tax rate Amount computed at corporate tax of 0% — — — Foreign tax rate differences 4,972 5,425 7,513 Permanent differences: Amended tax return: reinstatement of tax loss carryforward — — — Tax audit or amended tax return: change in uncertain tax position 385 558 (41) Non-deductible interest expense 571 1,477 875 Non-deductible withholding tax 625 717 838 Non-deductible loss on derivatives (114) 120 — Tax exemptions (13) (13) (36) Non-deductible other financial items (106) 194 116 Other non-deductible costs (18) 45 63 Tax credits (742) (1,252) (1,032) Adjustment for valuation allowance 4 4 9 Tax expense (benefit) for year $ 5,564 7,275 $ 8,305 |
Schedule of deferred income tax assets (liabilities) | Deferred income tax assets (liabilities) are summarized as follows: As of December 31, (in thousands of U.S. dollars) 2020 2019 Deferred tax assets: Accrued liabilities and other payables $ 124 $ 235 Derivative instruments 422 565 Other equipment 8 9 Tax credits carried forward 1,421 1,818 Tax loss carryforward 32 57 Valuation allowance (32) (57) Deferred tax liabilities: Accrued interest income (4,575) (4,123) Accrued liabilities and other payables (400) (385) Financing lease (11,328) (10,451) Deferred tax assets (liabilities), net $ (14,328) $ (12,332) |
Schedule of changes in the unrecognized tax benefits | Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Unrecognized tax benefits as of January 1, $ (2,283) (1,725) $ (2,626) Decrease related to prior year tax positions — — 434 Increase related to current year tax positions (385) (558) (418) Settlements — — 885 Unrecognized tax benefits as of December 31, $ (2,668) (2,283) $ (1,725) |
Prepaid expenses and other re_2
Prepaid expenses and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid expenses and other receivables | |
Schedule of prepaid expenses | The components of prepaid expenses and other receivables are as follows: As of December 31, (in thousands of U.S. dollars) 2020 2019 Prepaid expenses $ 2,140 $ 752 Other receivables 1,743 1,782 Total other prepaid expenses and other receivables $ 3,883 $ 2,534 |
Investments in joint ventures (
Investments in joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of equity method investments | As of December 31, (in thousands of U.S. dollars) 2020 2019 Accumulated earnings of joint ventures $ 9,690 $ 3,270 |
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 | Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Time charter revenues $ 78,687 77,051 $ 79,654 Other income 8,457 7,814 6,684 Total revenues 87,144 84,865 86,338 Operating expenses (18,904) (18,088) (21,864) Depreciation and amortization (20,546) (20,524) (20,065) Impairment of long-lived assets (1) — (149) — Operating income 47,694 46,104 44,409 Unrealized gain (loss) on derivative instruments (12,146) (10,418) 16,992 Other financial expense, net (23,324) (24,144) (26,140) Net income (loss) $ 12,224 11,542 $ 35,261 Share of joint ventures owned 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations 6,112 5,771 17,631 Eliminations 308 307 307 Equity in earnings (losses) of joint ventures $ 6,420 6,078 $ 17,938 (1) At the completion of the class renewal survey of the Neptune , certain equipment was identified that was impaired. As of December 31, (in thousands of U.S. dollars) 2020 2019 Cash and cash equivalents $ 13,455 $ 17,897 Restricted cash 21,264 9,250 Other current assets 178 973 Total current assets 34,897 28,120 Restricted cash 14,656 34,650 Vessels, net of accumulated depreciation 499,318 521,060 Total long-term assets 513,974 555,710 Current portion of long-term debt 199,030 28,297 Amounts and loans due to owners and affiliates 7,278 629 Derivative instruments 14,687 13,089 Refund liabilities (1) 1,040 26,691 Other current liabilities 8,811 10,327 Total current liabilities 230,846 79,033 Long-term debt 176,385 375,091 Loans due to owners and affiliates 1,737 7,663 Derivative instruments 69,618 59,070 Other long-term liabilities 36,040 40,952 Total long-term liabilities 283,780 482,776 Net assets (liabilities) $ 34,245 $ 22,021 Share of joint ventures owned 50 % 50 % Share of joint ventures net assets (liabilities) before eliminations 17,123 11,011 Eliminations (7,433) (7,741) Accumulated earnings (losses) of joint ventures $ 9,690 $ 3,270 (1) Refund liabilities include the liability for the boil-off claim and other refundable amounts due to the charterer. |
Advances to joint ventures (Tab
Advances to joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Advances to joint ventures | |
Schedule of investments in and advances to affiliates | As of December 31, (in thousands of U.S. dollars) 2020 2019 Current portion of advances to joint ventures $ 3,284 $ — Long-term advances to joint ventures 869 3,831 Advances/shareholder loans to joint ventures $ 4,153 $ 3,831 |
Vessels and other equipment (Ta
Vessels and other equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Vessels and other equipment | |
Schedule of vessels and other equipment | Dry- (in thousands of U.S. dollars) Vessel docking Total Historical cost December 31, 2018 $ 706,715 6,667 $ 713,382 Additions 183 3,107 3,290 Historical cost December 31, 2019 706,898 9,774 716,672 Depreciation for the year (19,393) (1,777) (21,170) Accumulated depreciation December 31, 2019 (70,264) (5,977) (76,241) Vessels, net December 31, 2019 636,634 3,797 640,431 Historical cost December 31, 2019 706,898 9,774 716,672 Additions 8 — 8 Historical cost December 31, 2020 706,906 9,774 716,680 Depreciation for the year (19,398) (1,421) (20,819) Accumulated depreciation December 31, 2020 (89,662) (7,398) (97,060) Vessels, net December 31, 2020 $ 617,244 2,376 $ 619,620 |
Intangibles and goodwill (Table
Intangibles and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangibles and goodwill | |
Schedule of indefinite-lived intangible assets | Option Above for time market time charter Total (in thousands of U.S. dollars) charter extension Intangibles Goodwill Total Historical cost December 31, 2018 $ 22,760 8,000 30,760 251 $ 31,011 Amortization for the year (3,631) — (3,631) — (3,631) Accumulated amortization, December 31, 2019 (13,903) — (13,903) — (13,903) Intangibles and goodwill, December 31, 2019 8,857 8,000 16,857 251 17,108 Historical cost December 31, 2019 22,760 8,000 30,760 251 31,011 Additions — — — — — Historical cost December 31, 2020 22,760 8,000 30,760 251 31,011 Amortization for the year (2,030) (1,022) (3,052) — (3,052) Accumulated amortization, December 31, 2020 (15,933) (1,022) (16,955) — (16,955) Intangibles and goodwill, December 31, 2020 $ 6,827 6,978 13,805 251 $ 14,056 |
Schedule of estimated future amortization expense | The following table presents estimated future amortization expense for the intangibles: (in thousands of U.S. dollars) Total 2021 $ 2,755 2022 2,755 2023 2,755 2024 2,762 2025 2,116 2026 and thereafter $ 662 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of long-term debt | As of December 31, (in thousands of U.S. dollars) 2020 2019 Lampung facility: Export credit tranche $ 79,324 $ 94,210 FSRU tranche 18,635 22,812 $385 million facility: Commercial tranche 230,705 249,635 Export credit tranche 44,500 51,167 Revolving credit tranche 48,300 48,300 Outstanding principal 421,464 466,124 Lampung facility unamortized debt issuance cost (2,999) (4,309) $385 million facility unamortized debt issuance costs (3,876) (4,854) Total debt 414,589 456,961 Less: Current portion of long-term debt (59,119) (44,660) Long-term debt $ 355,470 $ 412,301 |
Schedule of outstanding principal on long-term debt | (in thousands of U.S. dollars) Total 2021 $ 123,557 2022 25,597 2023 25,597 2024 25,597 2025 25,597 2026 and thereafter 195,519 Total $ 421,464 |
Accrued liabilities and payab_2
Accrued liabilities and payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued liabilities and payables | |
Schedule of accrued liabilities and payables | As of December 31, (in thousands of U.S. dollars) 2020 2019 Accrued operating and administrative expenses $ 3,042 $ 3,314 Accrued property tax — 3,033 Accrued interest 2,641 2,850 Current tax payable 469 818 Refund liabilities (note 4) 891 125 Lease liability (note 2 and note 10) 39 75 Other accruals and payables 150 949 Total accrued liabilities and other payables $ 7,232 $ 11,164 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of related party transactions | Amounts due from affiliates As of December 31, (in thousands of U.S. dollars) 2020 2019 Amounts due from affiliates $ 3,639 $ 4,296 Amounts due to owners and affiliates As of December 31, (in thousands of U.S. dollars) 2020 2019 Amounts due to owners and affiliates $ 2,600 $ 2,513 Revolving credit facility due to owners and affiliates As of December 31, (in thousands of U.S. dollars) 2020 2019 Revolving credit facility due to owners and affiliates - non-current portion $ 18,465 $ 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 years ended December 31, 2020, 2019 and 2018 or included in the consolidated balance sheets as of December 31, 2020 and 2019 are as follows: (in thousands of U.S. dollars) 2020 2019 2018 Revenues Time charter revenue Höegh Gallant $ 45,274 47,173 $ 47,108 Operating expenses Vessel operating expenses (2) (21,328) (24,523) (21,520) Hours, travel expense and overhead (3) and Board of Directors’ fees (4) (4,353) (4,072) (3,671) Financial (income) expense Interest income from joint ventures (5) 321 295 273 Interest expense and commitment fees to Höegh LNG (6) (64) (1,882) (2,938) Total $ 19,850 16,991 $ 19,252 As of Balance sheet December 31, (in thousands of U.S. dollars) 2020 2019 Equity Contribution from Höegh LNG (7) $ 11,850 $ — Repayment of indemnification received from Höegh LNG (8) — (64) Issuance of units for Board of Directors’ fees (4) 181 194 Other and contribution from owner (9) 109 485 Total $ 12,140 $ 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 charges 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: Total Board of Directors’ fees were $571 , $496 and $501 for the years ended December 31, 2020, 2019 and 2018, respectively. Part of the compensation is awarded as common units of the Partnership. Effective September 4, 2020, a total of 15,528 common units were awarded to non-employee directors as compensation of $162 for part of directors’ fees for 2020 under the Höegh LNG Partners LP Long Term Incentive Plan. Effective June 4, 2019 and June 6, 2018, a total of 11,180 and 11,050 common units, respectively, of the Partnership were awarded to non-employee directors as compensation of $194 and $200 , respectively, for part of directors’ fees for 2019 and 2018. 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 and commitment fees to Höegh LNG and affiliates: Höegh LNG and its affiliates provided an $85 million revolving credit facility for general partnership purposes. The Partnership incurred a commitment fee on the undrawn balance until January 29, 2018 and an interest expense on the drawn balance. 7) Non-cash contribution from/distribution to Höegh LNG: As described under “Indemnification” below, on April 8, and December 11, 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 and $3.3 million, respectively, on its outstanding balance on the $85 million revolving credit facility from Höegh LNG. These non-cash settlements, totaling $11.9 million, were 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 increase in equity. On August 6, 2020, the Partnership announced that the Partnership’s Chief Executive Officer and Chief Financial Officer resigned, which resulted in 15,378 of the phantom units not vesting, resulting in a reduction in administration expense and equity for the forfeited units. The remaining 4,861 unvested phantom units will vest in 2021. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 $ 31,770 31,770 39,126 $ 39,126 Restricted cash 1 19,293 19,293 20,693 20,693 Derivative instruments 2 (26,475) (26,475) (14,935) (14,935) Other: Amounts due from affiliate 2 3,639 3,639 4,296 4,296 Advances (shareholder loans) to joint ventures 2 4,153 4,305 3,831 4,029 Current amounts due to owners and affiliates 2 (2,600) (2,600) (2,513) (2,513) Lampung facility 2 (94,960) (99,295) (112,713) (119,598) $385 million facility 2 (319,629) (323,342) (344,248) (352,219) Revolving credit facility due to owners and affiliates 2 $ (18,465) (16,987) (8,792) $ (8,717) |
Summary of Financing receivables and net investment in financing lease | The following table contains a summary of the class of financial asset, year of origination and the method by which the credit quality is monitored on a quarterly basis: Class Credit Quality As of December 31, (in thousands of U.S. dollars) Year Indicator Grade 2020 2019 Advances/shareholder loans to joint ventures 2006 Collection experience Performing $ 4,153 $ 3,831 Net investment in financing lease 2014 Credit Information Performing $ 274,257 $ 278,904 |
Risk management and concentra_2
Risk management and concentrations of risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risk management and concentrations of risk | |
Schedule of interest rate swap agreements | Fair value Fixed Interest carrying interest rate Notional amount rate (in thousands of U.S. dollars) index amount liability Term (1) LIBOR-based debt Lampung interest rate swaps (2) LIBOR $ 97,960 $ (5,680) Sep 2026 2.800 % $385 million facility swaps (2) LIBOR $ 56,782 $ (5,560) Jan 2026 2.941 % $385 million facility swaps (2) LIBOR $ 56,782 $ (5,197) Oct 2025 2.838 % $385 million facility swaps (2) LIBOR $ 56,782 $ (5,111) Jan 2026 2.735 % $385 million facility swaps (2) LIBOR $ 56,782 $ (4,927) 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 the notional 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. 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 December 31, 2020 Interest rate swaps $ — $ — $ (6,945) $ (19,530) As of December 31, 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 gain (loss) on derivative instruments in the consolidated statements of income for the years ended December 31, 2020 and 2019. Year ended December 31, 2020 Income tax (in thousands of U.S. dollars) Interest expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (5,849) $ — Amortization of amount excluded from hedge effectiveness 851 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (1,024) 262 Total gains (losses) on derivative instruments $ (6,022) $ 262 Year ended December 31, 2019 Income tax (in thousands of U.S. dollars) Interest expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (956) $ — Amortization of amount excluded from hedge effectiveness 966 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (987) 389 Settlement of cash flow hedge 199 — Total gains (losses) on derivative instruments $ (778) $ 389 The following effects of cash flow hedges relating to interest rate swaps are included in total gains (losses) on derivative instruments in the consolidated statements of income for the year ended December 31, 2018. Year ended December 31, (in thousands of U.S. dollars) 2018 Interest rate swaps: Ineffective portion of cash flow hedge $ (990) Amortization of amount excluded from hedge effectiveness 2,969 Reclassification discontinued hedge from OCI 3,557 Reclassification from accumulated other comprehensive income (855) Unrealized gains (losses) 4,681 Realized gains (losses) — Total gains (losses) on derivative instruments $ 4,681 |
Schedule of effect of cash flow hedge accounting on accumulated OCI and earnings | Cash Flow Hedge Accumulated other comprehensive income Earnings Before tax Accumulated gains Tax benefit OCI: Interest Tax (in thousands of U.S. dollars) (losses) (expense) Net of tax expense benefit Accumulated OCI as of December 31, 2019 $ (18,119) 176 $ (17,943) Effective portion of unrealized loss on cash flow hedge (18,240) — (18,240) Reclassification from accumulated other comprehensive income included in hedge effectiveness 5,849 — 5,849 (5,849) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 1,024 (262) 762 (1,024) 262 Other comprehensive income for period (11,367) (262) (11,629) Accumulated OCI as of December 31, 2020 $ (29,486) (86) $ (29,572) Gain (loss) reclassified to earnings $ (6,873) $ 262 Cash Flow Hedge Accumulated other comprehensive income Earnings Before tax Accumulated gains Tax benefit OCI: Interest Tax (in thousands of U.S. dollars) (losses) (expense) Net of tax expense benefit Accumulated OCI 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 (13,535) — (13,535) Reclassification from accumulated other comprehensive income included in hedge effectiveness 956 — 956 (956) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 987 (389) 598 (987) 389 Other comprehensive income for period (12,217) (389) (12,606) Accumulated OCI as of December 31, 2019 $ (18,119) 176 $ (17,943) Gain (loss) reclassified to earnings $ (1,943) $ 389 The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income and changes in accumulated OCI is as follows as of and for the year ended December 31, 2018. Cash Flow Hedge Before tax Tax benefit Accumulated (in thousands of U.S. dollars) gains (losses) (expense) Net of tax OCI Balance as of December 31, 2017 $ (3,612) 864 (2,748) $ (2,748) Effective portion of unrealized loss on cash flow hedge 412 — 412 412 Reclassification of amortization of cash flow hedge to earnings 855 (299) 556 556 Reclassification of discontinued cash flow hedge to earnings (3,557) — (3,557) (3,557) Other comprehensive income for period (2,290) (299) (2,589) (2,589) Balance as of December 31, 2018 $ (5,902) 565 (5,337) $ (5,337) |
Supplemental cash flow inform_2
Supplemental cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental cash flow information | |
Schedule of supplemental cash flow information | Year ended December 31, (in thousands of U.S. dollars) 2020 2019 2018 Supplemental disclosure of non-cash investing activities Non-cash expenditures for vessel and other equipment $ — — $ (229) Supplemental disclosure of non-cash financing activities Non-cash indemnifications received $ 11,850 — $ — |
Issuance of common units and _2
Issuance of common units and Series A Preferred Units (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Issuance of common units and Series A Preferred Units | |
Schedule of net proceeds for units issued | Year ended December 31, 2020 Series A Common preferred (in thousands of U.S. dollars) units units Total Gross proceeds for units issued $ — 3,231 $ 3,231 Less: Commissions — (57) (57) Net proceeds for units issued $ — 3,174 $ 3,174 Year ended December 31, 2019 Series A Common preferred (in thousands of U.S. dollars) units units Total Gross proceeds for units issued $ 1,042 13,298 $ 14,340 Less: Commissions (13) (233) (246) Net proceeds for units issued $ 1,029 13,065 $ 14,094 Year ended December 31, 2018 Series A Common preferred (in thousands of U.S. dollars) units units Total Gross proceeds for units issued $ 4,623 39,360 $ 43,983 Less: Commissions (60) (701) (761) Net proceeds for units issued $ 4,563 38,659 $ 43,222 |
Common, subordinated and pref_2
Common, subordinated and preferred units (Tables) | 12 Months Ended |
Dec. 31, 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 during the years ended December 31, 2020, 2019 and 2018: Common 8.75% Common Units Series A Units Höegh Subordinated Preferred (in units) Public LNG Units Units December 31, 2017 17,648,844 2,116,060 13,156,060 4,600,000 June 6, 2018; Awards to non-employee directors as compensation for directors' fees 8,840 — — — July 5, 2018; Awards to non-employee directors as compensation for directors' fees 2,210 — — — Units issued to staff at Höegh LNG during 2018 14,622 (14,622) — — Phantom units issued to CEO/CFO during 2018 17,079 — — — ATM program (from January 26, 2018 to December 31, 2018) 253,106 — — 1,529,070 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 September 4, 2020; Awards to non-employee directors as compensation for directors' fees 3,882 — — — September 15, 2020; Awards to non-employee directors as compensation for directors' fees 7,764 — — — October 23, 2020; Awards to non-employee directors as compensation for directors' fees 3,882 — — — Phantom units issued to CEO/CFO during 2020 6,627 — — — ATM program (from January 1, 2020 to December 31, 2020) — — — 126,743 December 31, 2020 18,050,941 15,257,498 — 6,752,333 |
Earning per unit and cash dis_2
Earning per unit and cash distributions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earning per unit and cash distributions | |
Schedule of calculation of basic and diluted earnings per unit | Year ended December 31, (in thousands of U.S. dollars, except per unit numbers) 2020 2019 2018 Net income $ 63,145 52,741 $ 77,622 Adjustment for: Preferred unitholders’ interest in net income 14,802 13,850 12,303 Limited partners' interest in net income 48,343 38,891 65,319 Less: Dividends paid or to be paid (1) (60,222) (60,149) (59,952) Under (over) distributed earnings (11,879) (21,258) 5,367 Under (over) distributed earnings attributable to: Common units public (6,437) (11,514) 2,900 Common units Höegh LNG (5,442) (3,211) 340 Subordinated units Höegh LNG (4) — (6,533) 2,127 $ (11,879) (21,258) $ 5,367 Basic weighted average units outstanding (in thousands) Common units public 18,034 17,986 17,856 Common units Höegh LNG 15,257 7,039 2,101 Subordinated units Höegh LNG (4) — 8,218 13,156 Diluted weighted average units outstanding (in thousands) Common units public 18,037 17,995 17,864 Common units Höegh LNG 15,257 7,039 2,101 Subordinated units Höegh LNG (4) — 8,218 13,156 Basic and diluted earnings per unit (2): Common unit public $ 1.40 $ 1.12 $ 1.93 Common unit Höegh LNG (3) $ 1.51 $ 1.84 $ 2.03 Subordinated unit Höegh LNG (3) (4) $ — $ 0.70 $ 2.03 (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. Effective June 3, 2016, the Partnership granted 21,500 phantom units to the then-serving CEO/CFO of the Partnership. One-third of such phantom units vest as of December 31, 2017, November 30, 2018 and November 30, 2019, respectively. On September 14, 2018, the plan was amended to extend the terms and conditions of such 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, a total of 15,378 of the unvested phantom units terminated. (3) Includes total amounts attributable to incentive distributions rights of $1,598 , $1,597 and $1,591 for the years ended December 31, 2020, 2019 and 2018, respectively. For the year ended December 31, 2020 the full amount was attributable to common units owned by Höegh LNG. For the years ended December 31, 2019 and 2018, respectively, $908 and $219 was attributed to common units owned by Höegh LNG and $ 688 and $1,372 was 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) | 12 Months Ended |
Dec. 31, 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 |
Purpose | Owns PGN FSRU Lampung |
SRV Joint Gas Ltd [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Cayman Islands |
Purpose | Owns Neptune |
SRV Joint Gas Two Ltd [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Cayman Islands |
Purpose | Owns Cape Ann |
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 |
Description of business - Addit
Description of business - Additional information (Details) - USD ($) $ in Millions | Dec. 01, 2017 | Oct. 05, 2017 | Jan. 03, 2017 | Oct. 01, 2015 | Aug. 12, 2014 | Aug. 28, 2014 | Dec. 31, 2020 | Dec. 31, 2016 | Oct. 18, 2019 | Jan. 26, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Maximum Offering Amount | $ 120 | $ 120 | ||||||||
Subordinated Unit [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Limited Partners' Capital Account, Units Issued | 13,156,060 | |||||||||
Hoegh LNG Holdings Ltd [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Percentage of incentive distribution rights | 100.00% | |||||||||
Percentage of Partnership Interest | 58.00% | |||||||||
Limited Partners' Capital Account, Units Issued | 2,116,060 | |||||||||
Hoegh LNG Partners LP [Member] | Series A Preferred Stock [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Preferred Stock, Dividend Rate, Percentage | 8.75% | |||||||||
Proceeds from Issuance of Preferred Limited Partners Units | $ 110.9 | |||||||||
Limited Partners' Capital Account, Units Issued | 4,600,000 | |||||||||
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 | |||||||||
Hoegh LNG FSRU III Ltd [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | |||||||||
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% | |||||||||
Hoegh Lng Colombia Ltd [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 51.00% | |||||||||
Hoegh LNG Colombia Holding Ltd [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 49.00% | 51.00% | ||||||||
Underwritten Public Offering [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Limited Partners' Capital Account, Units Issued | 6,588,389 | |||||||||
Partners' Capital Account, Public Sale of Units Net of Offering Costs | $ 111.5 | |||||||||
Subsidiaries [Member] | Hoegh LNG Holdings Ltd [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | |||||||||
IPO [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Exercise Of Option, Additional Common Units | 1,440,000 | |||||||||
Limited Partners' Capital Account, Units Issued | 11,040,000 | |||||||||
Partners' Capital Account, Public Sale of Units Net of Offering Costs | $ 203.5 |
Significant accounting polici_4
Significant accounting policies (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 |
Significant Accounting Policies [Line Items] | ||
Allowance for credit loss | $ 96 | |
Allowance for Credit Loss on Trade Receivables and Amount Due from Affiliates | $ 60 | |
Accounting Standards Update 2016-02 [Member] | ||
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 |
Significant accounting polici_5
Significant accounting policies - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 03, 2017 | |
Significant Accounting Policies [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385 | ||
Vessels [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 35 years | ||
$385 million facility [Member] | |||
Significant Accounting Policies [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385 | ||
SRV Joint Gas Two Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Advances to Affiliate | 0.9 | $ 0.8 | |
SRV Joint Gas Two Ltd [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Significant Accounting Policies [Line Items] | |||
Net liabilities | $ 4.2 | 0.7 | |
Hoegh Grace [Member] | |||
Significant Accounting Policies [Line Items] | |||
Non-Cancellable Charter Period | 10 years | ||
SRV Joint Gas Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Advances to Affiliate | $ 3.3 | 3 | |
SRV Joint Gas Ltd [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Significant Accounting Policies [Line Items] | |||
Net liabilities | 5.5 | 2.6 | |
PT Hoegh LNG Lampung [Member] | |||
Significant Accounting Policies [Line Items] | |||
Restricted Net Assets | $ 179.9 | $ 169.8 | |
Initial Charter Hire Period | 20 years | ||
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] | |||
Restricted Net Assets | $ 0 | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | ||
Hoegh Lng Colombia Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Restricted Net Assets | $ 0 | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | ||
Hoegh Grace entities [Member] | |||
Significant Accounting Policies [Line Items] | |||
Non-Cancellable Charter Period | 10 years | ||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||
Hoegh Gallant [Member] | |||
Significant Accounting Policies [Line Items] | |||
Initial Charter Hire Period | 5 years | ||
Above Market Leases [Member] | Hoegh Grace entities [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 9 years 6 months | ||
Above Market Leases [Member] | Hoegh Gallant [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years 4 months 24 days | ||
Option for time charter extension [Member] | Hoegh Gallant [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years 3 months 18 days |
Segment information - Results f
Segment information - Results for the segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Time charter revenues | $ 143,095 | $ 145,321 | $ 144,952 |
Other revenue | 0 | 115 | 1,609 |
Total revenues | 143,095 | 145,436 | 146,561 |
Operating expenses | (33,812) | (40,731) | (33,111) |
Equity in earnings (losses) of joint ventures | 6,420 | 6,078 | 17,938 |
Depreciation, Depletion and Amortization | (20,937) | (21,477) | (21,146) |
Operating income (loss) | 94,766 | 89,306 | 110,242 |
Gain (loss) on debt extinguishment | 0 | 1,030 | 0 |
Gain (loss) on derivative instruments | 0 | 0 | 4,681 |
Other financial income (expense), net | (26,057) | (30,320) | (28,996) |
Income (loss) before tax | 68,709 | 60,016 | 85,927 |
Income tax benefit (expense) | (5,564) | (7,275) | (8,305) |
Net income (loss) | 63,145 | 52,741 | 77,622 |
Preferred unitholders' interest in net income | 14,802 | 13,850 | 12,303 |
Limited partners' interest in net income (loss) | 48,343 | 38,891 | 65,319 |
Vessels, net of accumulated depreciation | 619,620 | 640,431 | |
Net investment in financing lease | 274,257 | 278,904 | |
Goodwill | 251 | 251 | 251 |
Advances to joint ventures | 4,153 | 3,831 | |
Total assets | 981,810 | 1,012,800 | |
Accumulated earnings of joint ventures | 9,690 | 3,270 | |
Expenditures for vessels & equipment | 8 | 211 | |
Expenditures for drydocking | 0 | 3,107 | |
Impairment/retirement of equipment | 0 | ||
Principal repayment direct financing lease | 4,551 | 4,168 | |
Amortization of above market & contract extension | 3,052 | 3,631 | 3,631 |
Majority held FSRUs [Member] | |||
Time charter revenues | 143,095 | 145,321 | 144,952 |
Other revenue | 115 | 1,609 | |
Total revenues | 143,095 | 145,436 | 146,561 |
Operating expenses | (27,462) | (34,266) | (27,294) |
Equity in earnings (losses) of joint ventures | 0 | 0 | |
Segment EBITDA | 115,633 | 111,170 | 119,267 |
Depreciation, Depletion and Amortization | (20,937) | (21,477) | (21,146) |
Operating income (loss) | 94,696 | 89,693 | 98,121 |
Gain (loss) on debt extinguishment | 1,030 | ||
Gain (loss) on derivative instruments | 0 | 0 | 4,681 |
Other financial income (expense), net | (9,072) | (12,511) | (26,381) |
Income (loss) before tax | 85,624 | 78,212 | 76,421 |
Income tax benefit (expense) | (5,564) | (7,278) | (8,253) |
Net income (loss) | 80,060 | 70,934 | 68,168 |
Preferred unitholders' interest in net income | 0 | 0 | |
Limited partners' interest in net income (loss) | 80,060 | 70,934 | 68,168 |
Vessels, net of accumulated depreciation | 619,620 | 640,431 | |
Net investment in financing lease | 274,257 | 278,904 | |
Goodwill | 251 | 251 | |
Advances to joint ventures | 0 | 0 | |
Total assets | 969,278 | 996,201 | |
Accumulated earnings of joint ventures | 0 | 0 | |
Expenditures for vessels & equipment | 8 | 211 | |
Expenditures for drydocking | 0 | 3,107 | |
Impairment/retirement of equipment | 0 | ||
Principal repayment direct financing lease | 4,551 | 4,168 | |
Amortization of above market & contract extension | 3,052 | 3,631 | 3,631 |
Joint venture FSRUs [Member] | |||
Time charter revenues | 43,572 | 42,433 | 43,169 |
Other revenue | 0 | ||
Total revenues | 43,572 | 42,433 | 43,169 |
Operating expenses | (9,452) | (9,044) | (10,932) |
Equity in earnings (losses) of joint ventures | 0 | 0 | |
Segment EBITDA | 34,120 | 33,389 | 32,237 |
Depreciation, Depletion and Amortization | (9,965) | (10,030) | (9,725) |
Operating income (loss) | 24,155 | 23,359 | 22,512 |
Gain (loss) on debt extinguishment | 0 | ||
Gain (loss) on derivative instruments | (6,073) | (5,209) | 8,496 |
Other financial income (expense), net | (11,662) | (12,072) | (13,070) |
Income (loss) before tax | 6,420 | 6,078 | 17,938 |
Income tax benefit (expense) | 0 | 0 | |
Net income (loss) | 6,420 | 6,078 | 17,938 |
Preferred unitholders' interest in net income | 0 | 0 | |
Limited partners' interest in net income (loss) | 6,420 | 6,078 | 17,938 |
Vessels, net of accumulated depreciation | 242,226 | 252,789 | |
Net investment in financing lease | 0 | 0 | |
Goodwill | 0 | 0 | |
Advances to joint ventures | 0 | 0 | |
Total assets | 267,003 | 284,174 | |
Accumulated earnings of joint ventures | 0 | 0 | |
Expenditures for vessels & equipment | 75 | 195 | |
Expenditures for drydocking | 2 | 913 | |
Impairment/retirement of equipment | (75) | ||
Principal repayment direct financing lease | 0 | 0 | |
Amortization of above market & contract extension | 0 | 0 | |
Other Segments [Member] | |||
Time charter revenues | 0 | 0 | |
Other revenue | 0 | ||
Total revenues | 0 | 0 | |
Operating expenses | (6,350) | (6,465) | (5,817) |
Equity in earnings (losses) of joint ventures | 0 | 0 | |
Segment EBITDA | (6,350) | (6,465) | (5,817) |
Depreciation, Depletion and Amortization | 0 | 0 | |
Operating income (loss) | (6,350) | (6,465) | (5,817) |
Gain (loss) on debt extinguishment | 0 | ||
Gain (loss) on derivative instruments | 0 | 0 | |
Other financial income (expense), net | (16,985) | (17,809) | (2,615) |
Income (loss) before tax | (23,335) | (24,274) | (8,432) |
Income tax benefit (expense) | 0 | 3 | (52) |
Net income (loss) | (23,335) | (24,271) | (8,484) |
Preferred unitholders' interest in net income | 0 | 0 | |
Limited partners' interest in net income (loss) | (23,335) | (24,271) | (8,484) |
Vessels, net of accumulated depreciation | 0 | 0 | |
Net investment in financing lease | 0 | 0 | |
Goodwill | 0 | 0 | |
Advances to joint ventures | 4,153 | 3,831 | |
Total assets | 12,532 | 16,599 | |
Accumulated earnings of joint ventures | 50 | 50 | |
Expenditures for vessels & equipment | 0 | 0 | |
Expenditures for drydocking | 0 | 0 | |
Impairment/retirement of equipment | 0 | ||
Principal repayment direct financing lease | 0 | 0 | |
Amortization of above market & contract extension | 0 | 0 | |
Total Segment Reporting [Member] | |||
Time charter revenues | 186,667 | 187,754 | 188,121 |
Other revenue | 115 | 1,609 | |
Total revenues | 186,667 | 187,869 | 173,846 |
Operating expenses | (43,264) | (49,775) | (44,043) |
Equity in earnings (losses) of joint ventures | 0 | 0 | |
Segment EBITDA | 143,403 | 138,094 | 145,687 |
Depreciation, Depletion and Amortization | (30,902) | (31,507) | (30,871) |
Operating income (loss) | 112,501 | 106,587 | 114,816 |
Gain (loss) on debt extinguishment | 1,030 | ||
Gain (loss) on derivative instruments | (6,073) | (5,209) | 13,177 |
Other financial income (expense), net | (37,719) | (42,392) | (42,066) |
Income (loss) before tax | 68,709 | 60,016 | 85,927 |
Income tax benefit (expense) | (5,564) | (7,275) | (8,305) |
Net income (loss) | 63,145 | 52,741 | 77,622 |
Preferred unitholders' interest in net income | 0 | 0 | |
Limited partners' interest in net income (loss) | 63,145 | 52,741 | 77,622 |
Vessels, net of accumulated depreciation | 861,846 | 893,220 | |
Net investment in financing lease | 274,257 | 278,904 | |
Goodwill | 251 | 251 | |
Advances to joint ventures | 4,153 | 3,831 | |
Total assets | 1,248,813 | 1,296,974 | |
Accumulated earnings of joint ventures | 50 | 50 | |
Expenditures for vessels & equipment | 83 | 406 | |
Expenditures for drydocking | 2 | 4,020 | |
Impairment/retirement of equipment | (75) | ||
Principal repayment direct financing lease | 4,551 | 4,168 | |
Amortization of above market & contract extension | 3,052 | 3,631 | |
Eliminations [Member] | |||
Time charter revenues | (43,572) | (42,433) | (43,169) |
Other revenue | 0 | ||
Total revenues | (43,572) | (42,433) | (43,169) |
Operating expenses | 9,452 | 9,044 | 10,932 |
Equity in earnings (losses) of joint ventures | 6,420 | 6,078 | 17,938 |
Depreciation, Depletion and Amortization | 9,965 | 10,030 | 9,725 |
Gain (loss) on derivative instruments | 6,073 | 5,209 | (8,496) |
Other financial income (expense), net | 11,662 | 12,072 | 13,070 |
Income (loss) before tax | 0 | 0 | |
Income tax benefit (expense) | 0 | 0 | |
Net income (loss) | 0 | 0 | |
Preferred unitholders' interest in net income | 14,802 | 13,850 | 12,303 |
Limited partners' interest in net income (loss) | (14,802) | (13,850) | $ (12,303) |
Vessels, net of accumulated depreciation | (242,226) | (252,789) | |
Net investment in financing lease | 0 | 0 | |
Goodwill | 0 | 0 | |
Advances to joint ventures | 0 | 0 | |
Total assets | (267,003) | (284,174) | |
Accumulated earnings of joint ventures | 9,640 | 3,220 | |
Expenditures for vessels & equipment | (75) | (195) | |
Expenditures for drydocking | (2) | (913) | |
Impairment/retirement of equipment | 75 | ||
Principal repayment direct financing lease | 0 | 0 | |
Amortization of above market & contract extension | $ 0 | $ 0 |
Segment information - Percentag
Segment information - Percentage of consolidated total revenues (Details) - Sales Revenue, Net [Member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PT PGN LNG Indonesia [Member] | |||
Percentage of Revenue | 33.00% | 33.00% | 33.00% |
Hoegh LNG Egypt LLC [Member] | |||
Percentage of Revenue | 30.00% | 31.00% | 31.00% |
Sociedad Portuaria El Cayao [Member] | |||
Percentage of Revenue | 37.00% | 36.00% | 36.00% |
Segment information - Additiona
Segment information - Additional information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | May 28, 2019USD ($) | Jan. 29, 2018USD ($) | |
Number of Operating Segments | segment | 2 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385 | ||
Revolving credit facility [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 85 | ||
Revolving credit facility [Member] | Hoegh LNG [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85 | $ 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% |
Time charter revenues and rel_3
Time charter revenues and related contract balances - Disaggregated revenue by segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lease revenues, excluding amortization | $ 87,948 | $ 88,889 | $ 89,215 |
Time charter service revenues, excluding amortization | 58,199 | 60,063 | 59,368 |
Amortization of above market contract intangibles | (3,052) | (3,631) | (3,631) |
Amortization of deferred revenue for modifications & drydock | 0 | 0 | |
Other revenue | 0 | 115 | 1,609 |
Total revenues | 143,095 | 145,436 | 146,561 |
Total segment reporting [Member] | |||
Lease revenues, excluding amortization | 113,708 | 114,579 | 114,905 |
Time charter service revenues, excluding amortization | 73,297 | 74,158 | 74,446 |
Amortization of above market contract intangibles | (3,052) | (3,631) | (3,631) |
Amortization of deferred revenue for modifications & drydock | 2,714 | 2,648 | 2,401 |
Other revenue | 115 | 1,609 | |
Total revenues | 186,667 | 187,869 | 189,730 |
Majority held FSRUs [Member] | |||
Lease revenues, excluding amortization | 87,948 | 88,889 | 89,215 |
Time charter service revenues, excluding amortization | 58,199 | 60,063 | 59,368 |
Amortization of above market contract intangibles | (3,052) | (3,631) | (3,631) |
Amortization of deferred revenue for modifications & drydock | 0 | 0 | |
Other revenue | 115 | 1,609 | |
Total revenues | 143,095 | 145,436 | 146,561 |
Joint venture FSRUs [Member] | |||
Lease revenues, excluding amortization | 25,760 | 25,690 | 25,690 |
Time charter service revenues, excluding amortization | 15,098 | 14,095 | 15,078 |
Amortization of above market contract intangibles | 0 | 0 | |
Amortization of deferred revenue for modifications & drydock | 2,714 | 2,648 | 2,401 |
Other revenue | 0 | ||
Total revenues | 43,572 | 42,433 | 43,169 |
Other Segments [Member] | |||
Lease revenues, excluding amortization | 0 | 0 | |
Time charter service revenues, excluding amortization | 0 | 0 | |
Amortization of above market contract intangibles | 0 | 0 | |
Amortization of deferred revenue for modifications & drydock | 0 | 0 | |
Other revenue | 0 | ||
Total revenues | 0 | 0 | |
Eliminations [Member] | |||
Lease revenues, excluding amortization | (25,760) | (25,690) | (25,690) |
Time charter service revenues, excluding amortization | (15,098) | (14,095) | (15,078) |
Amortization of above market contract intangibles | 0 | 0 | |
Amortization of deferred revenue for modifications & drydock | (2,714) | (2,648) | (2,401) |
Other revenue | 0 | ||
Total revenues | $ (43,572) | $ (42,433) | $ (43,169) |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Trade receivable for lease | $ 2,608 | $ 2,898 |
Trade receivable for time charter services | 1,506 | 2,133 |
Allowance for expected credit losses | (60) | |
Total trade receivable and amounts due from affiliates | $ 4,054 | $ 5,031 |
Time charter revenues and rel_5
Time charter revenues and related contract balances - Consolidated contract assets, contract liabilities and refund liabilities (Details) - Time Charter Services [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Beginning Balance | $ 279 | |
Additions | $ 279 | |
Reduction for receivables recorded | (18) | |
Ending Balance | 261 | 279 |
Beginning balance | (125) | (1,834) |
Additions | (841) | (65) |
Reduction for receivables recorded | 89 | |
Reduction for revenue recognized (excluding amortization) | 10 | |
Reduction for revenue recognized from previous years | 48 | 497 |
Repayments of refund liabilities to charterer | 1,101 | |
Repayments of refund liabilities to charterer | 17 | 1,188 |
Ending balance | $ (891) | $ (125) |
Time charter revenues and rel_6
Time charter revenues and related contract balances - Minimum contractual future revenues (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Time charter revenues and related contract balances | ||
2021 | $ 32,369 | |
2022 | 32,369 | |
2023 | 32,369 | |
2024 | 32,369 | |
2025 | 27,091 | |
Thereafter | 96,683 | |
Total | 253,250 | |
2021 | 90,441 | |
2022 | 90,441 | |
2023 | 90,441 | |
2024 | 90,441 | |
2025 | 77,717 | |
Thereafter | 286,467 | |
Total - undiscounted | 725,948 | |
Operating lease | 321,724 | |
Direct financing lease | 404,224 | |
Discounting effect | (172,499) | |
Financing lease | 231,725 | $ 240,000 |
2021 | 122,810 | |
2022 | 122,810 | |
2023 | 122,810 | |
2024 | 122,810 | |
2025 | 104,808 | |
Thereafter | 383,150 | |
Total | $ 979,198 |
Time charter revenues and rel_7
Time charter revenues and related contract balances - Direct financing lease receivable and unguaranteed residual value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
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 financing lease | 297,824 | 297,824 |
Principal repayment and amortization | (23,471) | (18,920) |
Allowance for credit loss | (96) | |
Net investment in financing lease at period end | 274,257 | 278,904 |
Less: Current portion | (4,969) | (4,551) |
Net investment in financing lease consists of: | ||
Financing lease receivable | 231,725 | 240,000 |
Unguaranteed residual value | 42,532 | 38,904 |
Net investment in financing lease at period end | $ 274,257 | $ 278,904 |
Time charter revenues and net i
Time charter revenues and net investment in direct financing lease - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Hoegh LNG FRSU III Ltd [Member] | ||
Capital Leased Assets [Line Items] | ||
Business Combinations Charter Out One Vessel To Predefined Hire Rate | 90.00% | |
Hoegh Gallant [Member] | ||
Capital Leased Assets [Line Items] | ||
Lease Expiration Year | 2020 | |
Lease Expiration Term | 5 years | |
Charter period | 5 years | |
PGN FSRU Lampung [Member] | ||
Capital Leased Assets [Line Items] | ||
Lease Expiration Year | 2034 | |
Lease Expiration Term | 20 years | |
Hoegh Grace [Member] | ||
Capital Leased Assets [Line Items] | ||
Lease Expiration Year | 2036 | |
Lease Expiration Term | 20 years | |
Non Cancellable Lease Expiration Term | 10 years | |
Hoegh LNG FSRU IV Ltd [Member] | ||
Capital Leased Assets [Line Items] | ||
Lease Initial Term | 20 years | |
Maximum [Member] | Hoegh Grace [Member] | ||
Capital Leased Assets [Line Items] | ||
Lease Initial Term | 20 years | |
Maximum [Member] | Hoegh LNG FSRU IV Ltd [Member] | ||
Capital Leased Assets [Line Items] | ||
Lease Expiration Term | 15 years | |
Minimum [Member] | Hoegh Grace [Member] | ||
Capital Leased Assets [Line Items] | ||
Lease Initial Term | 15 years | |
Minimum [Member] | Hoegh LNG FSRU IV Ltd [Member] | ||
Capital Leased Assets [Line Items] | ||
Lease Expiration Term | 10 years | |
Time Charter Services [Member] | ||
Capital Leased Assets [Line Items] | ||
Reduction for revenue recognized from previous years | $ 48 | $ 497 |
Repayments of refund liabilities to charterer | $ 1,101 |
Financial income (expense), n_3
Financial income (expense), net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income | $ 605 | $ 947 | $ 725 |
Interest expense: | |||
Interest expense | (22,003) | (24,950) | (26,077) |
Commitment fees | (138) | (381) | (37) |
Amortization of debt issuance cost and fair value of debt assumed | (2,289) | (2,361) | (700) |
Total interest expense | (24,430) | (27,692) | (26,814) |
Gain (loss) on debt extinguishment | 0 | 1,030 | 0 |
Other items, net: | |||
Foreign exchange gain (loss) | 444 | (396) | (193) |
Bank charges, fees and other | (276) | (297) | (143) |
Withholding tax on interest expense and other | (2,400) | (2,882) | (2,571) |
Total other items, net | (2,232) | (3,575) | (2,907) |
Total financial income (expense), net | (26,057) | $ (29,290) | $ (24,315) |
Debt Instrument, Financial Covenants | $ 385,000 |
Income tax (Details)
Income tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax (benefit) expense | $ 3,832 | $ 4,126 | $ 4,759 |
Income before tax | 68,709 | 60,016 | 85,927 |
Deferred tax (benefit) expense for | |||
Change in temporary differences | 1,335 | 3,341 | 3,290 |
Tax loss and tax credit carried forward | 393 | (196) | 247 |
Change in valuation allowance | 4 | 4 | 9 |
Total deferred tax (benefit) expense | 1,732 | 3,149 | 3,546 |
Total income tax (benefit) expense | $ 5,564 | $ 7,275 | $ 8,305 |
Income tax - Deferred tax (bene
Income tax - Deferred tax (benefit) expense recognized in OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flow hedge derivative instruments | $ 262 | $ 389 | $ 299 |
Other Comprehensive Income (Loss), Tax, Total | $ 262 | $ 389 | $ 299 |
Income tax - Reconciliation of
Income tax - Reconciliation of the income before tax at the statutory rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax | |||
Income (loss) before tax | $ 68,709 | $ 60,016 | $ 85,927 |
At applicable statutory tax rate | |||
Amount computed at corporate tax of 0% | 0 | 0 | 0 |
Foreign tax rate differences | 4,972 | 5,425 | 7,513 |
Permanent differences: | |||
Amended tax return: reinstatement of tax loss carryforward | 0 | 0 | 0 |
Tax audit or amended tax return: change in uncertain tax position | 385 | 558 | (41) |
Non-deductible interest expense | 571 | 1,477 | 875 |
Non-deductible withholding tax | (114) | 120 | 0 |
Non-deductible loss on derivatives | 625 | 717 | 838 |
Tax exemptions | (13) | (13) | (36) |
Non-deductible other financial items | (106) | 194 | 116 |
Other non-deductible costs | (18) | 45 | 63 |
Tax credits | (742) | (1,252) | (1,032) |
Adjustment for valuation allowance | 4 | 4 | 9 |
Income Tax Expense (Benefit), Total | $ 5,564 | $ 7,275 | $ 8,305 |
Income tax - Deferred income ta
Income tax - Deferred income tax assets (liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Accrued liabilities and other payables | $ 124 | $ 235 |
Derivative instruments | 422 | 565 |
Other equipment | 8 | 9 |
Tax credits carried forward | 1,421 | 1,818 |
Tax loss carryforward | 32 | 57 |
Valuation allowance | (32) | (57) |
Deferred tax liabilities: | ||
Accrued interest income | (4,575) | (4,123) |
Accrued liabilities and other payables | (400) | (385) |
Financing lease | (11,328) | (10,451) |
Deferred tax assets (liabilities), net | $ (14,328) | $ (12,332) |
Income tax - Changes in the unr
Income tax - Changes in the unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized tax benefits as of January 1, | $ (2,283) | $ (1,725) | $ (2,626) |
Decrease related to prior year tax positions | 0 | 0 | 434 |
Increase related to current year tax positions | (385) | (558) | (418) |
Settlements | 0 | 0 | 885 |
Unrecognized tax benefits as of December 31, | $ (2,668) | $ (2,283) | $ (1,725) |
Income tax - Additional Informa
Income tax - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax Credit Carryforward, Amount | $ 1,486 | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 4 | $ 4 | $ 9 | |
Unrecognized Tax Benefits | 2,668 | 2,283 | 1,725 | 2,626 |
Reduction to the uncertain tax position | 434 | |||
Increases in uncertain tax positions | 385 | 558 | 418 | |
Amended tax return: reinstatement of tax loss carryforward | 0 | 0 | 885 | |
Other Noncash Income Tax Expense | 867 | 867 | 852 | |
Accrued Income Taxes, Noncurrent | 2,668 | 2,283 | ||
Reversal of uncertain tax position | $ 2,228 | |||
Income Tax Expense (Benefit) | $ 5,564 | $ 7,275 | $ 8,305 | |
Colombia | ||||
Income tax subject to examination year | 2017 | |||
Indonesia | ||||
Income tax subject to examination year | 2016 | |||
Income Tax Examination Year Concluded Audit | 2013 | |||
Income Tax Examination Year Concluded Audit One | 2014 | |||
SINGAPORE | ||||
Income tax subject to examination year | 2016 | |||
Tax Credit Carry forward Expiring In 2020 And 2023 [Member] | ||||
Tax Credit Carryforward, Amount | $ 256 | |||
Tax Credit Carryforward Expiring In 2020 [Member] | ||||
Tax Credit Carryforward, Amount | $ 430 | |||
Tax Credit Carryforward, Year of Expiration | 2021 | |||
Tax Credit Carryforward Expiring In 2021 [Member] | ||||
Tax Credit Carryforward, Amount | $ 991 | |||
Tax Credit Carryforward, Year of Expiration | 2022 |
Prepaid expenses and other re_3
Prepaid expenses and other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid expenses | $ 2,140 | $ 752 |
Other receivables | 1,743 | 1,782 |
Total other prepaid expenses and other receivables | $ 3,883 | $ 2,534 |
Investments in joint ventures_2
Investments in joint ventures (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Accumulated earnings of joint ventures | $ 9,690 | $ 3,270 |
Investments in joint ventures -
Investments in joint ventures - Combined joint ventures on an aggregated basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Time charter revenues | $ 143,095 | $ 145,321 | $ 144,952 | |
Other income | 0 | 115 | 1,609 | |
Total revenues | 143,095 | 145,436 | 146,561 | |
Operating expenses | (33,812) | (40,731) | (33,111) | |
Depreciation, amortization and impairment | (20,937) | (21,477) | (21,146) | |
Impairment of long-lived assets | 0 | |||
Operating income | 94,766 | 89,306 | 110,242 | |
Unrealized gain (loss) on derivative instruments | 0 | 0 | 4,681 | |
Income (loss) before tax | 68,709 | 60,016 | 85,927 | |
Net income (loss) | 63,145 | 52,741 | 77,622 | |
Equity in (earnings) losses of joint ventures | 6,420 | 6,078 | 17,938 | |
Cash and cash equivalents | 31,770 | 39,126 | 26,326 | $ 22,679 |
Restricted cash | 7,198 | 8,066 | 6,003 | 6,962 |
Total current assets | 55,158 | 59,771 | ||
Restricted cash | 12,095 | 12,627 | 13,125 | $ 13,640 |
Vessels, net of accumulated depreciation | 619,620 | 640,431 | ||
Total long-term assets | 926,652 | 953,029 | ||
Current portion of long-term debt | 59,119 | 44,660 | ||
Derivative instruments | 6,945 | 2,907 | ||
Refund liabilities | 891 | 125 | ||
Total current liabilities | 77,808 | 63,253 | ||
Long-term debt | 355,470 | 412,301 | ||
Derivative instruments | 19,530 | 12,028 | ||
Other long-term liabilities | 124 | 84 | ||
Total long-term liabilities | 410,687 | 448,037 | ||
Srv Joint Gas Limited And Srv Joint Gas Two Limited [Member] | ||||
Time charter revenues | 78,687 | 77,051 | 79,654 | |
Other income | 8,457 | 7,814 | 6,684 | |
Total revenues | 87,144 | 84,865 | 86,338 | |
Operating expenses | (18,904) | (18,088) | (21,864) | |
Depreciation, amortization and impairment | (20,546) | (20,524) | (20,065) | |
Impairment of long-lived assets | (149) | |||
Operating income | 47,694 | 46,104 | 44,409 | |
Unrealized gain (loss) on derivative instruments | (12,146) | (10,418) | 16,992 | |
Other financial expense, net | (23,324) | (24,144) | (26,140) | |
Net income (loss) | $ 12,224 | $ 11,542 | $ 35,261 | |
Share of joint ventures owned | 50.00% | 50.00% | 50.00% | |
Share of joint ventures net income (loss) before eliminations | $ 6,112 | $ 5,771 | $ 17,631 | |
Eliminations | 308 | 307 | 307 | |
Equity in (earnings) losses of joint ventures | 6,420 | 6,078 | $ 17,938 | |
Cash and cash equivalents | 13,455 | 17,897 | ||
Restricted cash | 21,264 | 9,250 | ||
Other current assets | 178 | 973 | ||
Total current assets | 34,897 | 28,120 | ||
Restricted cash | 14,656 | 34,650 | ||
Vessels, net of accumulated depreciation | 499,318 | 521,060 | ||
Total long-term assets | 513,974 | 555,710 | ||
Current portion of long-term debt | 199,030 | 28,297 | ||
Amounts and loans due to owners and affiliates | 7,278 | 629 | ||
Derivative instruments | 14,687 | 13,089 | ||
Refund liabilities | 1,040 | 26,691 | ||
Other current liabilities | 8,811 | 10,327 | ||
Total current liabilities | 230,846 | 79,033 | ||
Long-term debt | 176,385 | 375,091 | ||
Loans due to owners and affiliates | 1,737 | 7,663 | ||
Derivative instruments | 69,618 | 59,070 | ||
Other long-term liabilities | 36,040 | 40,952 | ||
Total long-term liabilities | 283,780 | 482,776 | ||
Net assets (liabilities) | 34,245 | 22,021 | ||
Share of joint ventures net assets (liabilities) before eliminations | 17,123 | 11,011 | ||
Eliminations | (7,433) | (7,741) | ||
Accumulated earnings (losses) of joint ventures | $ 9,690 | $ 3,270 |
Investments in joint ventures_3
Investments in joint ventures - Additional Information (Details) | Dec. 31, 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% |
Advances to joint ventures (Det
Advances to joint ventures (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Advances to Joint Ventures [Line Items] | ||
Advances to joint ventures | $ 3,284 | $ 0 |
Long-term advances/shareholder loans to joint ventures | 869 | 3,831 |
Advances/shareholder loans to joint ventures | $ 4,153 | $ 3,831 |
Shareholder [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
Advances to joint ventures - Ad
Advances to joint ventures - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Advances to Joint Ventures [Line Items] | ||
Due from joint ventures | $ 4,153 | $ 3,831 |
Debt service coverage ratio | 1.20% | |
SRV Joint Gas Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from joint ventures | $ 3,300 | 3,000 |
SRV Joint Gas Two Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from joint ventures | $ 900 | $ 800 |
Shareholder [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
Vessels and other equipment (De
Vessels and other equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Beginning Balance, Historical Cost | $ 716,672 | $ 713,382 |
Additions | 8 | 3,290 |
Ending Balance, Historical Cost | 716,680 | 716,672 |
Depreciation for the year | (20,819) | (21,170) |
Accumulated depreciation | (97,060) | (76,241) |
Vessel, net | 619,620 | 640,431 |
Vessel [Member] | ||
Beginning Balance, Historical Cost | 706,898 | 706,715 |
Additions | 8 | 183 |
Ending Balance, Historical Cost | 706,906 | 706,898 |
Depreciation for the year | (19,398) | (19,393) |
Accumulated depreciation | (89,662) | (70,264) |
Vessel, net | 617,244 | 636,634 |
Dry Docking [Member] | ||
Beginning Balance, Historical Cost | 9,774 | 6,667 |
Additions | 0 | 3,107 |
Ending Balance, Historical Cost | 9,774 | 9,774 |
Depreciation for the year | (1,421) | (1,777) |
Accumulated depreciation | (7,398) | (5,977) |
Vessel, net | $ 2,376 | $ 3,797 |
Vessels and other equipment - A
Vessels and other equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Lease, Right-of-Use Asset | $ 61 | $ 91 | |
Operating Lease, Liability | 61 | 91 | |
Property, Plant and Equipment, Gross | 716,680 | 716,672 | $ 713,382 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 97,060 | 76,241 | |
Depreciation | $ 20,819 | $ 21,170 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating Lease, Right-of-Use Asset | Operating Lease, Right-of-Use Asset | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Operating Lease, Liability | Operating Lease, Liability | |
Equipment [Member] | |||
Property, Plant and Equipment, Gross | $ 308 | $ 845 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 260 | 679 | |
Depreciation | $ 118 | $ 307 | $ 159 |
Intangibles and goodwill (Detai
Intangibles and goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Historical cost, Beginning balance | $ 30,760 | $ 30,760 | ||
Amortization for the year | (3,052) | (3,631) | ||
Accumulated amortization | $ (16,955) | $ (13,903) | ||
Historical cost, Ending balance | 30,760 | 30,760 | ||
Intangibles and goodwill | 13,805 | 16,857 | ||
Goodwill, Beginning Balance | 251 | 251 | ||
Goodwill, Ending Balance | 251 | 251 | ||
Intangibles and goodwill | 251 | 251 | 251 | 251 |
Historical cost, Beginning balance | 17,108 | 31,011 | ||
Accumulated amortization | (16,955) | (13,903) | ||
Amortization for the year | (3,052) | (3,631) | ||
Historical cost, Ending balance | 14,056 | 17,108 | ||
Option for time charter extension [Member] | ||||
Historical cost, Beginning balance | 8,000 | 8,000 | ||
Amortization for the year | (1,022) | |||
Accumulated amortization | (1,022) | |||
Historical cost, Ending balance | 8,000 | 8,000 | ||
Intangibles and goodwill | 6,978 | 8,000 | ||
Above Market Time Charter [Member] | ||||
Historical cost, Beginning balance | 22,760 | 22,760 | ||
Amortization for the year | (2,030) | (3,631) | ||
Accumulated amortization | (15,933) | (13,903) | ||
Historical cost, Ending balance | $ 22,760 | $ 22,760 | ||
Intangibles and goodwill | $ 6,827 | $ 8,857 |
Intangibles and goodwill - Esti
Intangibles and goodwill - Estimated future amortization expense (Details) $ in Thousands | Dec. 31, 2020USD ($) |
2021 | $ 2,755 |
2022 | 2,755 |
2023 | 2,755 |
2024 | 2,762 |
2025 | 2,116 |
2026 and thereafter | $ 662 |
Long-term debt (Details)
Long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Outstanding principal | $ 421,464 | $ 466,124 |
Total debt | 414,589 | 456,961 |
Less: Current portion of long-term debt | (59,119) | (44,660) |
Long-term debt | 355,470 | 412,301 |
Lampung facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | (2,999) | (4,309) |
$385 million facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance cost | (3,876) | (4,854) |
Export credit tranche [Member] | Lampung facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 79,324 | 94,210 |
Export credit tranche [Member] | $385 million facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 44,500 | 51,167 |
FSRU tranche [Member] | Lampung facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 18,635 | 22,812 |
Commercial tranche [Member] | $385 million facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 230,705 | 249,635 |
Revolving credit facility [Member] | $385 million facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 48,300 | $ 48,300 |
Long-term debt - Principal on l
Long-term debt - Principal on long-term debt outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
2021 | $ 123,557 | |
2022 | 25,597 | |
2023 | 25,597 | |
2024 | 25,597 | |
2025 | 25,597 | |
2026 and thereafter | 195,519 | |
Total | $ 421,464 | $ 466,124 |
Long-term debt - Additional inf
Long-term debt - Additional information (Details) - USD ($) $ in Thousands | Oct. 23, 2020 | Aug. 07, 2020 | Apr. 24, 2020 | Aug. 12, 2019 | Jan. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 29, 2019 | Sep. 30, 2013 |
Debt Instrument [Line Items] | ||||||||||
Loan Covenant Security Maintenance Percentage to Loans Outstanding | 125.00% | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385,000 | |||||||||
Repayment of revolving credit facility due to owners and affiliates | 0 | $ 34,000 | $ 17,500 | |||||||
Revolving credit due to owners and affiliates repayment | $ 34,000 | |||||||||
Payments of arrangement fees | $ 0 | $ 5,797 | $ 0 | |||||||
Lampung facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Weighted Average Interest Rate | 4.70% | 6.20% | ||||||||
Gallant And Grace facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of revolving credit facility due to owners and affiliates | $ 303,200 | |||||||||
Repayments of Accrued interest | 1,600 | |||||||||
$385 million facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 320,000 | |||||||||
Repayment of revolving credit facility due to owners and affiliates | 303,200 | |||||||||
Repayments of Accrued interest | 1,600 | |||||||||
Payments of arrangement fees | 5,500 | |||||||||
Remaining proceeds used for general partnership purposes | 9,600 | |||||||||
Export credit tranche [Member] | Lampung facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Description of Variable Rate Basis | The interest rate for the export credit tranche is LIBOR plus a margin of 2.3%. | |||||||||
Line of Credit Facility, Frequency of Payments | The export credit tranche is repayable in quarterly installments over 12 years | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.30% | |||||||||
Export credit tranche [Member] | $385 million facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Future repayment upon maturity of commercial tranche | $ 9,500 | |||||||||
FSRU tranche [Member] | Lampung facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Description of Variable Rate Basis | The FSRU tranche has an interest rate of LIBOR plus a margin of 3.4%. | |||||||||
Line of Credit Facility, Frequency of Payments | The FSRU tranche is repayable quarterly over 7 years | |||||||||
Debt Instrument, Balloon Payment | $ 15,500 | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.40% | |||||||||
Commercial tranche [Member] | $385 million facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Weighted Average Interest Rate | 3.40% | 4.70% | ||||||||
Secured Debt [Member] | Lampung facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Covenant Description | 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. | |||||||||
Term Loan Facility [Member] | Lampung facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Secured Debt | $ 299,000 | |||||||||
385 million facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus a margin of 2.30% | |||||||||
Line of Credit Facility, Frequency of Payments | The commercial tranche is repayable quarterly with a final balloon payment of $136.1 | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.30% | |||||||||
Debt Instrument, Covenant Description | The primary financial covenants under the $385 million facility are as follows: The Partnership must maintain 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 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 time be greater than zero 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 (prorated for partial ownership), subject to a cap of $20 million ratio of combined EBITDA for the Vessel Owners to debt service (principal repayments, guarantee commission, commitment fees and interest expense) for the preceding twelve months of a minimum of 115%. | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385,000 | $ 385,000 | ||||||||
Amount drew | $ 320,000 | |||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 1.60% | |||||||||
Revolving credit facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Weighted Average Interest Rate | 3.60% | 6.60% | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85,000 | |||||||||
Amount drew | $ 10,700 | $ 6,600 | $ 4,500 | |||||||
Revolving credit facility [Member] | $385 million facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 63,000 | |||||||||
Amount drew | $ 48,300 | |||||||||
Revolving Credit Facility Due To Owners And Affiliates [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85,000 | |||||||||
Hegh Gallant [Member] | Export credit tranche [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.98% | |||||||||
Hegh Grace [Member] | Export credit tranche [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.88% |
Accrued liabilities and payab_3
Accrued liabilities and payables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued liabilities and payables | ||
Accrued operating and administrative expenses | $ 3,042 | $ 3,314 |
Accrued property tax | 3,033 | |
Accrued interest | 2,641 | 2,850 |
Current tax payable | 469 | 818 |
Refund liabilities | 891 | 125 |
Lease liability | 39 | 75 |
Other accruals and payables | 150 | 949 |
Total accrued liabilities and other payables | $ 7,232 | $ 11,164 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Lease liability | Lease liability |
Related party transactions - St
Related party transactions - Statement of income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Time charter revenue Hoegh Gallant | $ 143,095 | $ 145,321 | $ 144,952 |
Operating expenses | |||
Vessel operating expenses | (24,072) | (30,870) | (24,195) |
Interest income from joint ventures | 605 | 947 | 725 |
Interest expense and commitment fees to Hoegh LNG | (24,430) | (27,692) | (26,814) |
Total | 63,145 | 52,741 | 77,622 |
Hoegh Gallant [Member] | |||
Revenues | |||
Time charter revenue Hoegh Gallant | 45,274 | 47,173 | 47,108 |
Hoegh LNG and Subsidiaries [Member] | |||
Operating expenses | |||
Vessel operating expenses | (21,328) | (24,523) | (21,520) |
Hours, travel expense and overhead and Board of Directors' fees | (4,353) | (4,072) | (3,671) |
Interest income from joint ventures | 321 | 295 | 273 |
Interest expense and commitment fees to Hoegh LNG | (64) | (1,882) | (2,938) |
Total | $ 19,850 | $ 16,991 | $ 19,252 |
Related party transactions - Ba
Related party transactions - Balance sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Contribution from Hegh LNG | $ 11,850 | ||
Repayment of indemnifications received from Hoegh LNG | 0 | $ (64) | $ (2,353) |
Issuance of units for Board of Directors' fees | 181 | 194 | $ 200 |
Other and contribution from owner | 109 | 485 | |
Equity: Total | 12,140 | 615 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Issuance of units for Board of Directors' fees | 181 | 194 | |
Hoegh LNG and Subsidiaries [Member] | |||
Related Party Transaction [Line Items] | |||
Contribution from Hegh LNG | 11,850 | ||
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | $ 3,639 | $ 4,296 |
Amounts due to owners and affiliates | $ 2,600 | $ 2,513 |
Related party transactions - _2
Related party transactions - Revolving credit facility (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Revolving credit facility due to owners and affiliates - non-current portion | $ 18,465 | $ 8,792 |
Related party transactions - Ad
Related party transactions - Additional Information (Details) $ in Thousands | Dec. 11, 2020USD ($) | Oct. 23, 2020USD ($) | Sep. 04, 2020shares | Aug. 07, 2020USD ($) | Aug. 06, 2020shares | Apr. 24, 2020USD ($) | Apr. 08, 2020USD ($) | Mar. 26, 2020shares | Jun. 04, 2019shares | May 28, 2019USD ($) | Mar. 21, 2019shares | Sep. 14, 2018shares | Jun. 06, 2018shares | Dec. 31, 2017 | Jan. 03, 2017 | Jun. 03, 2016shares | Mar. 21, 2019shares | Mar. 23, 2018shares | Aug. 31, 2014USD ($) | Dec. 31, 2021 | Dec. 31, 2020USD ($)claimshares | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($)claim | Jan. 29, 2018USD ($) |
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Revolving Credit Due To Owners And Affiliates | $ 18,465 | $ 8,792 | ||||||||||||||||||||||
Aggregate borrowing capacity | $ 385,000 | |||||||||||||||||||||||
Indemnification claims filed or received | claim | 0 | 0 | 0 | |||||||||||||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 74,886 | $ 73,804 | $ 72,497 | |||||||||||||||||||||
Partners' Capital Account, Unit-based Compensation | 181 | 194 | 200 | |||||||||||||||||||||
Repayment of Indemnifications Received From Hoegh Lng | 0 | 64 | 2,353 | |||||||||||||||||||||
Director [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Total Board of Directors' fees | 571 | 496 | 501 | |||||||||||||||||||||
Partners' Capital Account, Unit-based Compensation | $ 181 | 194 | ||||||||||||||||||||||
Chief Executive Officer Chief Financial Officer [Member] | Phantom Units [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Units granted | shares | 8,100 | 10,917 | 28,018 | 21,500 | 10,917 | 14,584 | ||||||||||||||||||
Unvested units forfeited | shares | 15,378 | |||||||||||||||||||||||
Unvested units | shares | 4,861 | |||||||||||||||||||||||
Hoegh LNG [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Indemnification Under the Omnibus Agreement | 900 | |||||||||||||||||||||||
Reduction of loan | $ 3,300 | $ 8,600 | $ 11,900 | |||||||||||||||||||||
Insurance recoveries | 100 | 2,400 | ||||||||||||||||||||||
Percentage Of Ownership Interest In Acquisition | 49.00% | 51.00% | ||||||||||||||||||||||
indemnification received from HoeghLng | 300 | |||||||||||||||||||||||
Hoegh LNG and Subsidiaries [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | 28,500 | 28,400 | 28,200 | |||||||||||||||||||||
LP Long Term Incentive Plan [Member] | Director [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Partners' Capital Account, Units, Unit-based Compensation | shares | 15,528 | 11,180 | 11,050 | |||||||||||||||||||||
Partners' Capital Account, Unit-based Compensation | $ 162 | $ 194 | 200 | |||||||||||||||||||||
EgyptCo [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Indemnification Under Technical Issues | $ 500 | |||||||||||||||||||||||
Revolving credit facility [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Debt, Weighted Average Interest Rate | 3.60% | 6.60% | ||||||||||||||||||||||
Revolving Credit Due To Owners And Affiliates | $ 85,000 | |||||||||||||||||||||||
Aggregate borrowing capacity | $ 85,000 | |||||||||||||||||||||||
Amount drawn | $ 10,700 | $ 6,600 | $ 4,500 | |||||||||||||||||||||
Revolving credit facility [Member] | Hoegh LNG [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.40% | |||||||||||||||||||||||
Revolving Credit Due To Owners And Affiliates | $ 85,000 | |||||||||||||||||||||||
Aggregate borrowing capacity | $ 85,000 | $ 85,000 | ||||||||||||||||||||||
Reduction of loan | $ 3,300 | $ 8,600 | ||||||||||||||||||||||
Non-cash settlements, increase in equity | $ 11,900 | |||||||||||||||||||||||
Line of Credit Facility Original Expiration Date | Jan. 1, 2020 | |||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jan. 1, 2023 | |||||||||||||||||||||||
Revolving Credit Facility Maturing At 2020 [Member] | Hoegh LNG [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||||||||||||||||||||||
Revolving Credit Facility Maturing at 2021 and Thereafter [Member] | Hoegh LNG [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% |
Financial Instruments - Estimat
Financial Instruments - Estimated fair value and carrying value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Financial covenants | $ 385,000 | ||||
Cash and cash equivalents | 31,770 | $ 39,126 | $ 26,326 | $ 22,679 | |
Amounts due from affiliate | 3,639 | 4,296 | |||
Advances (shareholder loans) to joint ventures | 4,153 | 3,831 | |||
Current amounts due to owners and affiliates | (2,600) | (2,513) | |||
Long-term Debt | (414,589) | (456,961) | |||
$385 million facility | (385,000) | ||||
Revolving credit facility due to owners and affiliates | (18,465) | (8,792) | |||
385 million facility | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Financial covenants | 385,000 | ||||
$385 million facility | (385,000) | $ (385,000) | |||
Recurring [Member] | Carrying amount | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | 31,770 | 39,126 | |||
Restricted cash | 19,293 | 20,693 | |||
Recurring [Member] | Carrying amount | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative instruments | (26,475) | (14,935) | |||
Recurring [Member] | Fair value | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | 31,770 | 39,126 | |||
Restricted cash | 19,293 | 20,693 | |||
Recurring [Member] | Fair value | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative instruments | (26,475) | (14,935) | |||
Other [Member] | Carrying amount | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amounts due from affiliate | 3,639 | 4,296 | |||
Advances (shareholder loans) to joint ventures | 4,153 | 3,831 | |||
Current amounts due to owners and affiliates | (2,600) | (2,513) | |||
Revolving credit facility due to owners and affiliates | (18,465) | (8,792) | |||
Other [Member] | Carrying amount | 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 | (94,960) | (112,713) | |||
Other [Member] | Carrying amount | 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 | (319,629) | (344,248) | |||
Other [Member] | Fair value | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amounts due from affiliate | 3,639 | 4,296 | |||
Advances (shareholder loans) to joint ventures | 4,305 | 4,029 | |||
Current amounts due to owners and affiliates | (2,600) | (2,513) | |||
Revolving credit facility due to owners and affiliates | (16,987) | (8,717) | |||
Other [Member] | Fair value | 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 | (99,295) | (119,598) | |||
Other [Member] | Fair value | Fair Value, Inputs, Level 2 [Member] | 385 million facility | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-term Debt | $ (323,342) | $ (352,219) |
Financial Instruments - Financi
Financial Instruments - Financing receivables and net investment in financing lease (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Advances/ loans to joint ventures | $ 4,153 | $ 3,831 |
Net investment in financing lease | 274,257 | 278,904 |
Payment activity [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Advances/ loans to joint ventures | 4,153 | 3,831 |
Net investment in financing lease | $ 274,257 | $ 278,904 |
Risk management and concentra_3
Risk management and concentrations of risk - Interest rate swap agreements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
2.941% Interest Rate [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional amount | $ 56,782 |
Derivative Liability, Fair Value carrying amount assets | $ (5,560) |
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 | $ 56,782 |
Derivative Liability, Fair Value carrying amount assets | $ (5,197) |
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 | $ 56,782 |
Derivative Liability, Fair Value carrying amount assets | $ (5,111) |
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 | $ 56,782 |
Derivative Liability, Fair Value carrying amount assets | $ (4,927) |
Derivative, Term | Jan 2026 |
Derivative, Fixed interest rate | 2.65% |
Lampung [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional amount | $ 97,960 |
Derivative Liability, Fair Value carrying amount assets | $ (5,680) |
Derivative, Term | Sep 2026 |
Derivative, Fixed interest rate | 2.80% |
Risk management and concentra_4
Risk management and concentrations of risk - Fair value of derivative instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | $ (6,945) | $ (2,907) |
Derivative Liability, Noncurrent | (19,530) | (12,028) |
Interest rate swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 0 | 0 |
Derivative Asset, Noncurrent | 0 | 0 |
Derivative Liability, Current | (6,945) | (2,907) |
Derivative Liability, Noncurrent | $ (19,530) | $ (12,028) |
Risk management and concentra_5
Risk management and concentrations of risk - Cash flow hedge accounting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification from accumulated other comprehensive income included in hedge effectiveness | $ 5,849 | $ 956 | $ 855 |
Reclassification of amortization of cash flow hedge to earnings, Tax benefit (expense) | 0 | 0 | (299) |
Initial value of interest rate swap to be recognized in earnings on amortization approach, Tax benefit (expense) | 0 | 0 | |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach | 1,024 | 987 | $ (3,557) |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, tax | 262 | 389 | |
Total gains (losses) on derivative instruments, tax | 262 | 389 | |
Interest Expense [Member] | |||
Reclassification from accumulated other comprehensive income included in hedge effectiveness | (5,849) | (956) | |
Initial value of interest rate swap to be recognized in earnings on amortization approach, Tax benefit (expense) | 851 | 966 | |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach | (1,024) | (987) | |
Settlement of cash flow hedge | 199 | ||
Total gains (losses) on derivative instruments | $ (6,022) | $ (778) |
Risk management and concentra_6
Risk management and concentrations of risk - Cash flow hedges relating to interest rate swaps are included in total gains (losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total gains (losses) on derivative instruments | $ 0 | $ 0 | $ 4,681 |
Realized Gains Losses [Member] | |||
Total gains (losses) on derivative instruments | 0 | ||
Unrealized Gains Losses [Member] | |||
Total gains (losses) on derivative instruments | 4,681 | ||
Interest rate swap [Member] | |||
Ineffective portion of cash flow hedge | (990) | ||
Amortization of amount excluded from hedge effectiveness | 2,969 | ||
Reclassification discontinued hedge from OCI | 3,557 | ||
Reclassification from accumulated other comprehensive income | $ (855) |
Risk management and concentra_7
Risk management and concentrations of risk - Effect of cash flow hedge accounting on accumulated OCI and earnings (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Beginning Balance, Before tax gains (losses) | $ (18,119) | $ (5,902) | $ (3,612) | |
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) | (18,240) | (13,535) | 412 | |
Reclassification from accumulated other comprehensive income included in hedge effectiveness | 5,849 | 956 | 855 | |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Before tax gains (losses) | 1,024 | 987 | (3,557) | |
Other comprehensive income for period, Before tax gains (losses) | (11,367) | 12,217 | (2,290) | |
Ending Balance, Before tax gains (losses) | $ (3,612) | (29,486) | (18,119) | (5,902) |
Beginning Balance, Tax benefit (expense) | 176 | 565 | 864 | |
Initial value of interest rate swap to be recognized in earnings on amortization approach, Tax benefit (expense) | 0 | 0 | ||
Effective portion of unrealized loss on cash flow hedge, Tax benefit (expense) | 0 | |||
Reclassification of amortization of cash flow hedge to earnings, Tax benefit (expense) | 0 | 0 | (299) | |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, tax | (262) | (389) | ||
Other comprehensive income for period, Tax benefit (expense) | (262) | (389) | (299) | |
Ending Balance, Tax benefit (expense) | 864 | (86) | 176 | 565 |
Beginning Balance, Net of tax | (17,943) | (5,337) | (2,748) | |
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 | (18,240) | (13,535) | 412 | |
Reclassification of amortization of cash flow hedge to earnings, Net of tax | (2,748) | (5,849) | 956 | (556) |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Net of tax | (3,557) | |||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Net of tax | 762 | 598 | (3,557) | |
Other comprehensive income for period, Net of tax | (11,629) | (12,606) | (2,589) | |
Ending Balance, Net of tax | $ (2,748) | (29,572) | (17,943) | $ (5,337) |
Gain (loss) reclassified to earnings, tax | 262 | 389 | ||
Interest Expense [Member] | ||||
Reclassification from accumulated other comprehensive income included in hedge effectiveness | (5,849) | (956) | ||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Before tax gains (losses) | (1,024) | (987) | ||
Gain (loss) reclassified to earnings | $ (6,873) | $ (1,943) |
Risk management and concentra_8
Risk management and concentrations of risk - Additional Information (Details) - USD ($) $ in Millions | Dec. 29, 2014 | Mar. 17, 2014 | Dec. 31, 2018 | Dec. 31, 2020 | Feb. 28, 2019 | Jan. 01, 2017 | Oct. 01, 2015 |
Debt Instrument, Financial Covenants | $ 385 | ||||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 7.9 | ||||||
$385 million facility [Member] | |||||||
Debt Instrument, Financial Covenants | $ 385 | ||||||
Derivative, Notional Amount | $ 130 | $ 127.7 | |||||
2.941% rate [Member] | |||||||
Derivative, Notional Amount | 65 | ||||||
2.838% rate [Member] | |||||||
Derivative, Notional Amount | $ 65 | ||||||
2.650% Fixed interest [Member] | |||||||
Derivative, Notional Amount | 63.8 | ||||||
2.735% Fixed interest [Member] | |||||||
Derivative, Notional Amount | $ 63.8 | ||||||
Grace [Member] | |||||||
Derivative, Notional Amount | $ 164 | ||||||
Debt Instrument, Face Amount | $ 164 | ||||||
Grace [Member] | Maximum [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.315% | ||||||
Grace [Member] | Minimum [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.305% | ||||||
Hoegh Gallant [Member] | Maximum [Member] | |||||||
Derivative, Notional Amount | $ 146.3 | ||||||
Derivative, Fixed Interest Rate | 1.9145% | ||||||
Hoegh Gallant [Member] | Minimum [Member] | |||||||
Derivative, Notional Amount | $ 146.3 | ||||||
Derivative, Fixed Interest Rate | 1.9105% | ||||||
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] | $385 million facility [Member] | |||||||
Derivative, Term of Contract | 7 years | ||||||
Interest rate swap [Member] | Maximum [Member] | $385 million facility [Member] | |||||||
Derivative, Fixed Interest Rate | 2.838% | 2.735% | |||||
Interest rate swap [Member] | Minimum [Member] | $385 million facility [Member] | |||||||
Derivative, Fixed Interest Rate | 2.941% | 2.65% |
Commitments and contingencies (
Commitments and contingencies (Details) | Dec. 11, 2020USD ($) | Apr. 08, 2020USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($)claim | Jan. 29, 2018USD ($) | Dec. 31, 2017USD ($) |
Contractual Obligation | $ 600,000 | $ 600,000 | |||||||||
Income tax examination, year under examination | 5 years | ||||||||||
Unrecognized tax benefits for uncertain tax positions | 2,668,000 | $ 2,283,000 | $ 2,668,000 | $ 2,283,000 | $ 1,725,000 | $ 2,626,000 | |||||
Exposure to property tax and penalties | $ 3,000,000 | ||||||||||
Annual Property Tax Payable | 500,000 | ||||||||||
Indemnification claims filed or received | claim | 0 | 0 | 0 | ||||||||
Repayment of Indemnifications Received From Hoegh Lng | $ 0 | $ 64,000 | $ 2,353,000 | ||||||||
Revolving credit facility due to owners and affiliates | 18,465,000 | $ 8,792,000 | 18,465,000 | $ 8,792,000 | |||||||
Corporate Joint Venture [Member] | |||||||||||
Loss Contingency, Liability associated with the Boil of Claim | $ 23,700,000 | $ 23,700,000 | $ 23,700,000 | ||||||||
Revolving credit facility [Member] | |||||||||||
Revolving credit facility due to owners and affiliates | $ 85,000,000 | ||||||||||
Hoegh LNG [Member] | |||||||||||
Indemnifications Under Omnibus Agreement | 900,000 | ||||||||||
Indemnification claims filed or received | claim | 0 | 0 | |||||||||
Repayment of Indemnifications Received From Hoegh Lng | $ 0 | $ 100,000 | 2,400,000 | ||||||||
Indemnification Payments Received | 300,000 | ||||||||||
Losses incurred due to time charter | $ 500,000 | ||||||||||
Hoegh LNG [Member] | Corporate Joint Venture [Member] | |||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 50.00% | 50.00% | 50.00% | 50.00% | |||||||
Loss Contingency Accrual | $ 11,900,000 | $ 11,900,000 | $ 11,900,000 | ||||||||
Settlement of boil-off claim | 6,500,000 | $ 17,200,000 | |||||||||
Reduction of loan | $ 3,300,000 | $ 8,600,000 | 3,300,000 | $ 8,600,000 | 300,000 | ||||||
Hoegh LNG [Member] | Revolving credit facility [Member] | |||||||||||
Revolving credit facility due to owners and affiliates | $ 85,000,000 | $ 85,000,000 |
Supplemental cash flow inform_3
Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental disclosure of non-cash investing activities | |||
Non-cash expenditures for vessel and other equipment | $ 0 | $ 0 | $ (229) |
Supplemental disclosure of non-cash financing activities | |||
Non-cash indemnifications received | $ 11,850 | $ 0 | $ 0 |
Issuance of common units and _3
Issuance of common units and Series A Preferred Units (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gross proceeds for units issued | $ 3,231 | $ 14,340 | $ 43,983 |
Less: Commissions | (57) | (246) | (761) |
Net proceeds for units issued | 3,174 | 14,094 | 43,222 |
8.75% Series A Preferred Units [Member] | |||
Gross proceeds for units issued | 3,231 | 13,298 | 39,360 |
Less: Commissions | (57) | (233) | (701) |
Net proceeds for units issued | 3,174 | 13,065 | 38,659 |
Common units [Member] | |||
Gross proceeds for units issued | 0 | 1,042 | 4,623 |
Less: Commissions | 0 | (13) | (60) |
Net proceeds for units issued | $ 0 | $ 1,029 | $ 4,563 |
Issuance of common units and _4
Issuance of common units and Series A Preferred Units - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Compensation Paid to Agent | $ 1,100 | |||
Proceeds from Issuance of Common Limited Partners Units | $ 0 | $ 1,029 | $ 4,563 | |
Agent [Member] | ||||
Sales Commissions | $ 100 | $ 200 | $ 800 | |
Common Stock [Member] | ||||
Partners' Capital Account, Units, Sale of Units | 53,160 | 253,106 | 306,266 | |
Proceeds from Issuance of Preferred Limited Partners Units | $ 1,000 | $ 4,600 | ||
Proceeds from Issuance of Common Limited Partners Units | $ 5,600 | |||
Average Gross Sales Price Per Share | $ 0 | $ 19.60 | $ 18.26 | |
8.75% Series A Preferred Units [Member] | ||||
Partners' Capital Account, Units, Sale of Units | 126,743 | 496,520 | 1,529,070 | 2,152,333 |
Proceeds from Issuance of Preferred Limited Partners Units | $ 3,200 | $ 13,100 | $ 38,700 | $ 54,900 |
Average Gross Sales Price Per Share | $ 25.50 | $ 26.79 | $ 25.74 |
Common, subordinated and pref_3
Common, subordinated and preferred units - Movements (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common units public [Member] | |||
Common And Subordinated Units [Line Items] | |||
Beginning Balance | 18,028,786 | 17,944,701 | 17,648,844 |
Awards to non-employee directors as compensation for directors' fees | 3,882 | 8,944 | 8,840 |
ATM program | 53,160 | 253,106 | |
Ending Balance | 18,050,941 | 18,028,786 | 17,944,701 |
Common units public [Member] | Director [Member] | |||
Common And Subordinated Units [Line Items] | |||
Awards to non-employee directors as compensation for directors' fees | 7,764 | 2,236 | 2,210 |
Common units public [Member] | Non-employee director [Member] | |||
Common And Subordinated Units [Line Items] | |||
Awards to non-employee directors as compensation for directors' fees | 3,882 | ||
Common units Hegh LNG [Member] | |||
Common And Subordinated Units [Line Items] | |||
Beginning Balance | 15,257,498 | 2,101,438 | 2,116,060 |
Subordinated units converted to common units | 13,156,060 | ||
Ending Balance | 15,257,498 | 15,257,498 | 2,101,438 |
Subordinated unit Hegh LNG [Member] | |||
Common And Subordinated Units [Line Items] | |||
Beginning Balance | 13,156,060 | 13,156,060 | |
Subordinated units converted to common units | (13,156,060) | ||
Ending Balance | 13,156,060 | ||
8.75% Series A Preferred Units [Member] | |||
Common And Subordinated Units [Line Items] | |||
Beginning Balance | 6,625,590 | 6,129,070 | 4,600,000 |
ATM program | 126,743 | 496,520 | 1,529,070 |
Ending Balance | 6,752,333 | 6,625,590 | 6,129,070 |
Phantom Share Units (PSUs) [Member] | Common units public [Member] | |||
Common And Subordinated Units [Line Items] | |||
Phantom units issued | 6,627 | 19,745 | 17,079 |
Units issued to staff at Hegh LNG [Member] | Common units public [Member] | |||
Common And Subordinated Units [Line Items] | |||
Units issued to staff at Hegh LNG | 14,622 | ||
Units issued to staff at Hegh LNG [Member] | Common units Hegh LNG [Member] | |||
Common And Subordinated Units [Line Items] | |||
Units issued to staff at Hegh LNG | (14,622) |
Common, subordinated and pref_4
Common, subordinated and preferred units - Additional information (Details) | Oct. 05, 2022$ / shares | Dec. 31, 2020shares | Dec. 31, 2019shares | Dec. 31, 2018shares | Dec. 31, 2017shares |
Common units Hegh LNG [Member] | |||||
Common And Subordinated Units [Line Items] | |||||
Partners Capital Account, Units | shares | 15,257,498 | 15,257,498 | 2,101,438 | 2,116,060 | |
Subordinated Units Hoegh LNG [Member] | |||||
Common And Subordinated Units [Line Items] | |||||
Partners Capital Account, Units | shares | 15,257,498 | 15,257,498 | 13,156,060 | ||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1 | ||||
Series A Preferred Stock [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 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income | $ 63,145 | $ 52,741 | $ 77,622 |
Adjustment for: | |||
Preferred unitholders' interest in net income | 14,802 | 13,850 | 12,303 |
Limited partners' interest in net income | 48,343 | 38,891 | 65,319 |
Less: Dividends paid or to be paid | (60,222) | (60,149) | (59,952) |
Under (over) distributed earnings attributable to: | |||
Distributed Earnings | (11,879) | (21,258) | 5,367 |
Common units public [Member] | |||
Under (over) distributed earnings attributable to: | |||
Distributed Earnings | $ (6,437) | $ (11,514) | $ 2,900 |
Basic weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Basic | 18,034 | 17,986 | 17,856 |
Diluted weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Diluted | 18,037 | 17,995 | 17,864 |
Earnings per unit: | |||
Earnings Per Share, Basic and Diluted | $ 1.40 | $ 1.12 | $ 1.93 |
Common units Hegh LNG [Member] | |||
Under (over) distributed earnings attributable to: | |||
Distributed Earnings | $ (5,442) | $ (3,211) | $ 340 |
Basic weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Basic | 15,257 | 7,039 | 2,101 |
Diluted weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Diluted | 15,257 | 7,039 | 2,101 |
Earnings per unit: | |||
Earnings Per Share, Basic and Diluted | $ 1.51 | $ 1.84 | $ 2.03 |
Subordinated unit Hegh LNG [Member] | |||
Under (over) distributed earnings attributable to: | |||
Distributed Earnings | $ (6,533) | $ 2,127 | |
Basic weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Basic | 8,218 | 13,156 | |
Diluted weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Diluted | 8,218 | 13,156 | |
Earnings per unit: | |||
Earnings Per Share, Basic and Diluted | $ 0 | $ 0.70 | $ 2.03 |
Earning per unit and cash dis_4
Earning per unit and cash distributions - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 26, 2020 | Mar. 21, 2019 | Sep. 14, 2018 | Jun. 03, 2016 | Aug. 31, 2020 | Mar. 21, 2019 | Mar. 23, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||
Incentive Distribution Right Target Distribution | $ 1,598 | $ 1,597 | $ 1,591 | |||||||
Subordinated unit Hegh LNG [Member] | ||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||
Incentive Distribution Right Target Distribution | 688 | 1,372 | ||||||||
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 | 8,100 | 10,917 | 28,018 | 21,500 | 10,917 | 14,584 | ||||
Number of units terminated | 15,378 | |||||||||
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 units 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 Hegh LNG [Member] | ||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||
Incentive Distribution Right Target Distribution | $ 908 | $ 219 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 16, 2021 | Feb. 12, 2021 | Apr. 09, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 74,886 | $ 73,804 | $ 72,497 | ||||
Common and Subordinated Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ 1.76 | ||||||
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 | $ 3,900 | ||||||
Subsequent Event [Member] | Series A Preferred Stock [Member] | ATM Program | |||||||
Subsequent Event [Line Items] | |||||||
Partners' Capital Account, Units, Sale of Units | 336,992 | ||||||
Average Gross Sales Price Per Share | $ 25.12 | ||||||
Sales Commissions | $ 8,300 | ||||||
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 | $ 15,100 | ||||||
Subsequent Event [Member] | Common and Subordinated Stock [Member] | ATM Program | |||||||
Subsequent Event [Line Items] | |||||||
Partners' Capital Account, Units, Sale of Units | 52,603 | ||||||
Average Gross Sales Price Per Share | $ 15.75 | ||||||
Sales Commissions | $ 800 |
Schedule I - CONDENSED STATEMEN
Schedule I - CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenues | $ 143,095 | $ 145,436 | $ 146,561 |
EXPENSES | |||
Administrative expenses | (9,740) | (9,861) | (8,916) |
Equity in earnings (losses) of joint ventures | 6,420 | 6,078 | 17,938 |
Interest expense | (24,430) | (27,692) | (26,814) |
Net income (loss) | 63,145 | 52,741 | 77,622 |
Parent Company | Reportable Legal Entities | |||
Total revenues | 0 | 0 | 0 |
EXPENSES | |||
Administrative expenses | (6,279) | (6,473) | (5,822) |
Equity in earnings of subsidiaries | 64,296 | 60,315 | 68,359 |
Equity in earnings (losses) of joint ventures | 6,420 | 6,078 | 17,938 |
Interest income | 15,983 | 11,205 | 93 |
Interest expense | (17,139) | (18,242) | (2,938) |
Other items, net | (136) | (142) | (8) |
Net income (loss) | 63,145 | 52,741 | 77,622 |
Share of subsidiaries unrealized losses on cash flow hedges | (11,367) | (12,217) | (2,290) |
Share of subsidiaries income tax benefit | (262) | (389) | (299) |
Comprehensive income | $ 51,516 | $ 40,135 | $ 75,033 |
Schedule I - CONSOLIDATED BALAN
Schedule I - CONSOLIDATED BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||||
Cash | $ 31,770 | $ 39,126 | $ 26,326 | $ 22,679 |
Prepaid expenses and other receivables | 3,883 | 2,534 | ||
Total current assets | 55,158 | 59,771 | ||
Long-term assets | ||||
Accumulated earnings of joint ventures | 9,690 | 3,270 | ||
Total long-term assets | 926,652 | 953,029 | ||
Total assets | 981,810 | 1,012,800 | ||
Current liabilities | ||||
Current portion of long-term debt | 59,119 | 44,660 | ||
Trade payables | 467 | 533 | ||
Amounts due to owners and affiliates | 2,600 | 2,513 | ||
Derivative instruments | 6,945 | 2,907 | ||
Accrued liabilities and other payables | 7,232 | 11,164 | ||
Total current liabilities | 77,808 | 63,253 | ||
Long-term liabilities | ||||
Long-term debt | 355,470 | 412,301 | ||
Loans due to owners and affiliates | 18,465 | 8,792 | ||
Derivative instruments | 19,530 | 12,028 | ||
Total long-term liabilities | 410,687 | 448,037 | ||
Total liabilities | 488,495 | 511,290 | ||
Total equity | 493,315 | 501,510 | $ 520,437 | $ 474,659 |
Total liabilities and equity | 981,810 | 1,012,800 | ||
Parent Company | Reportable Legal Entities | ||||
Current assets | ||||
Cash | 2,058 | 6,934 | ||
Current portion of long-term loans to subsidiaries | 26,717 | 25,597 | ||
Promissory note from subsidiaries | 123,248 | 123,248 | ||
Prepaid expenses and other receivables | 1,097 | 224 | ||
Total current assets | 153,120 | 156,003 | ||
Long-term assets | ||||
Accumulated earnings of joint ventures | 9,690 | 3,270 | ||
Loans to subsidiaries | 237,489 | 260,636 | ||
Investments in subsidiaries | 455,582 | 449,570 | ||
Total long-term assets | 702,761 | 713,476 | ||
Total assets | 855,881 | 869,479 | ||
Current liabilities | ||||
Current portion of long-term debt | 25,597 | 25,597 | ||
Trade payables | 86 | 52 | ||
Amounts due to owners and affiliates | 732 | 398 | ||
Derivative instruments | 4,699 | 1,821 | ||
Accrued liabilities and other payables | 2,860 | 3,155 | ||
Total current liabilities | 33,974 | 31,023 | ||
Long-term liabilities | ||||
Long-term debt | 294,032 | 318,650 | ||
Loans due to owners and affiliates | 18,465 | 8,792 | ||
Derivative instruments | 16,095 | 9,504 | ||
Total long-term liabilities | 328,592 | 336,946 | ||
Total liabilities | 362,566 | 367,969 | ||
Total equity | 493,315 | 501,510 | ||
Total liabilities and equity | $ 855,881 | $ 869,479 |
Schedule I - CONDENSED STATEM_2
Schedule I - CONDENSED STATEMENT OF CASH FLOW (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | ||||
Net cash provided by (used in) operating activities | $ 85,825 | $ 85,252 | $ 91,681 | |
INVESTING ACTIVITIES | ||||
Net cash provided by (used in) investing activities | (8) | (269) | 3,067 | |
FINANCING ACTIVITIES | ||||
Net proceeds from issuance of Series A Preferred Units | 3,174 | 13,065 | 38,659 | |
Net proceeds from issuance of common units | 0 | 1,029 | 4,563 | |
Proceeds from long-term debt | 0 | 368,300 | 0 | |
Repayment of long-term debt | (44,660) | (342,416) | (45,458) | |
Repayment of debt issuance cost | 0 | (5,797) | 0 | |
Repayment of amounts due to owners and affiliates | 0 | (34,000) | (17,500) | |
Proceeds from indemnifications received from Hoegh LNG | 0 | 0 | 1,701 | |
Repayment of indemnifications received from Hoegh LNG | 0 | (64) | (2,353) | |
Cash distributions to limited partners | (74,886) | (73,804) | (72,497) | |
Net cash provided by (used in) financing activities | (94,622) | (70,625) | (92,478) | |
Increase (decrease) in cash, cash equivalents and restricted cash | (8,805) | 14,358 | 2,270 | |
Cash, cash equivalents and restricted cash, beginning of period | 59,819 | 45,454 | 43,281 | $ 43,281 |
Cash, cash equivalents and restricted cash, end of period | 51,063 | 59,819 | 45,454 | 51,063 |
Reportable Legal Entities | Parent Company | ||||
OPERATING ACTIVITIES | ||||
Net cash provided by (used in) operating activities | 48,656 | 33,130 | 42,401 | |
INVESTING ACTIVITIES | ||||
Long-term loan due from subsidiaries | 22,027 | (286,133) | 0 | |
Net cash provided by (used in) investing activities | 22,027 | (286,133) | 0 | |
FINANCING ACTIVITIES | ||||
Net proceeds from issuance of Series A Preferred Units | 3,174 | 13,065 | 38,659 | |
Net proceeds from issuance of common units | 0 | 1,029 | 4,563 | |
Proceeds from long-term debt | 0 | 368,300 | 0 | |
Proceeds from loans due to owners and affiliates | 21,750 | 3,500 | 5,400 | |
Repayment of long-term debt | (25,597) | (19,198) | 0 | |
Repayment of debt issuance cost | 0 | (5,797) | 0 | |
Repayment of amounts due to owners and affiliates | 0 | (34,000) | (17,500) | |
Proceeds from indemnifications received from Hoegh LNG | 0 | 0 | 1,701 | |
Repayment of indemnifications received from Hoegh LNG | 0 | (64) | (2,535) | |
Cash distributions to limited partners | (74,886) | (73,804) | (72,497) | |
Net cash provided by (used in) financing activities | (75,559) | 253,301 | (42,209) | |
Increase (decrease) in cash, cash equivalents and restricted cash | (4,876) | (72) | 374 | |
Cash, cash equivalents and restricted cash, beginning of period | 6,934 | 7,006 | 6,632 | 6,632 |
Cash, cash equivalents and restricted cash, end of period | $ 2,058 | $ 6,934 | $ 7,006 | $ 2,058 |
Schedule I - Dividends (Details
Schedule I - Dividends (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reportable Legal Entities | Parent Company | |||
Proceeds from Dividends Received | $ 55.8 | $ 42.4 | $ 51.7 |