Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document Information [Line Items] | |
Entity Registrant Name | Hoegh LNG Partners LP |
Entity Central Index Key | 1603016 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Non-accelerated Filer |
Trading Symbol | HMLP |
Entity Common Stock, Shares Outstanding | 0 |
Document Type | 6-K |
Amendment Flag | FALSE |
Document Period End Date | 31-Mar-15 |
Document Fiscal Period Focus | Q1 |
Document Fiscal Year Focus | 2015 |
CONDENSED_INTERIM_CONSOLIDATED
CONDENSED INTERIM CONSOLIDATED AND COMBINED CARVE-OUT STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
REVENUES | ||
Time charter revenues | $11,535 | $0 |
Construction contract revenues | 0 | 29,127 |
Total revenues | 11,535 | 29,127 |
OPERATING EXPENSES | ||
Vessel operating expenses | -2,260 | 0 |
Construction contract expenses | 0 | -24,661 |
Administrative expenses | -2,099 | -4,148 |
Depreciation and amortization | -8 | -8 |
Total operating expenses | -4,367 | -28,817 |
Equity in earnings (losses) of joint ventures | -2,122 | -1,671 |
Operating income (loss) | 5,046 | -1,361 |
FINANCIAL INCOME (EXPENSE), NET | ||
Interest income | 2,427 | 466 |
Interest expense | -3,899 | -81 |
Gain on derivative instruments | 121 | 0 |
Other items, net | -1,100 | -380 |
Total financial income (expense), net | -2,451 | 5 |
Income (loss) before tax | 2,595 | -1,356 |
Income tax expense | -177 | -408 |
Net income (loss) | 2,418 | -1,764 |
Common units public [Member] | ||
FINANCIAL INCOME (EXPENSE), NET | ||
Net income (loss) | 1,015 | |
Earnings per unit | ||
Earnings Per Share (basic and diluted) | $0.09 | $0 |
Common units Hoegh LNG [Member] | ||
FINANCIAL INCOME (EXPENSE), NET | ||
Net income (loss) | 194 | |
Earnings per unit | ||
Earnings Per Share (basic and diluted) | $0.09 | $0 |
Subordinated units [Member] | ||
FINANCIAL INCOME (EXPENSE), NET | ||
Net income (loss) | $1,209 | |
Earnings per unit | ||
Earnings Per Share (basic and diluted) | $0.09 | $0 |
CONDENSED_INTERIM_CONSOLIDATED1
CONDENSED INTERIM CONSOLIDATED AND COMBINED CARVE-OUT STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income (loss) | $2,418 | ($1,764) |
Unrealized gains (losses) on cash flow hedge | -2,267 | -3,466 |
Income tax benefit | 567 | 866 |
Other comprehensive income (loss) | -1,700 | -2,600 |
Comprehensive income (loss) | $718 | ($4,364) |
CONDENSED_INTERIM_CONSOLIDATED2
CONDENSED INTERIM CONSOLIDATED AND COMBINED CARVE-OUT BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $35,762 | $30,477 |
Restricted cash | 16,000 | 21,935 |
Demand note due from owner | 142,069 | 143,241 |
Advances to joint ventures | 6,535 | 6,665 |
Deferred debt issuance cost | 2,574 | 2,603 |
Current portion of net investment in direct financing lease | 2,881 | 2,809 |
Current deferred tax asset | 323 | 318 |
Prepaid expenses and other receivables | 4,254 | 5,091 |
Total current assets | 210,398 | 213,139 |
Long-term assets | ||
Restricted cash | 15,116 | 15,184 |
Other equipment | 47 | 54 |
Advances to joint ventures | 11,051 | 12,287 |
Deferred debt issuance cost | 11,520 | 11,974 |
Net investment in direct financing lease | 292,081 | 292,379 |
Long-term deferred tax asset | 2,134 | 1,572 |
Other long-term assets | 20,623 | 21,626 |
Total long-term assets | 352,572 | 355,076 |
Total assets | 562,970 | 568,215 |
Current liabilities | ||
Current portion of long-term debt | 19,062 | 19,062 |
Trade payables | 1,433 | 864 |
Amounts due to owners and affiliates | 7,291 | 6,019 |
Loans and promissory notes due to owners and affiliates | 298 | 467 |
Value added and withholding tax liability | 165 | 835 |
Derivative financial instruments | 4,482 | 4,676 |
Accrued liabilities and other payables | 20,697 | 19,201 |
Total current liabilities | 53,428 | 51,124 |
Long-term liabilities | ||
Accumulated losses of joint ventures | 61,752 | 59,630 |
Long-term debt | 188,505 | 193,271 |
Derivative financial instruments | 6,885 | 4,544 |
Other long-term liabilities | 19,988 | 22,206 |
Total long-term liabilities | 277,130 | 279,651 |
Total liabilities | 330,558 | 330,775 |
EQUITY | ||
Total Partners’ capital | 242,381 | 245,709 |
Accumulated other comprehensive income (loss) | -9,969 | -8,269 |
Total equity | 232,412 | 237,440 |
Total liabilities and equity | 562,970 | 568,215 |
Common units public [Member] | ||
EQUITY | ||
Total Partners’ capital | 204,268 | 206,979 |
Total equity | 204,268 | 206,979 |
Common units Hoegh LNG [Member] | ||
EQUITY | ||
Total Partners’ capital | 5,281 | 5,366 |
Total equity | 5,281 | 5,366 |
Subordinated units [Member] | ||
EQUITY | ||
Total Partners’ capital | 32,832 | 33,364 |
Total equity | $32,832 | $33,364 |
CONDENSED_INTERIM_CONSOLIDATED3
CONDENSED INTERIM CONSOLIDATED AND COMBINED CARVE-OUT STATEMENTS OF CHANGES IN PARTNERS' CAPITAL/OWNER'S EQUITY (USD $) | Total | Owner's Equity [Member] | Common units public [Member] | Common units Hoegh LNG [Member] | Subordinated units [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | ||||||
Balance at Dec. 31, 2013 | ($48,035) | ($48,035) | $0 | $0 | $0 | $0 |
Net Income | -10,786 | -10,786 | 0 | 0 | 0 | 0 |
Other Comprehensive loss | -5,900 | 0 | 0 | 0 | 0 | -5,900 |
Conversion of promissory note to equity | 101,500 | 101,500 | 0 | 0 | 0 | 0 |
Carve-out distributions to owner, net | -11,039 | -11,039 | 0 | 0 | 0 | 0 |
Balance at Aug. 12, 2014 | 25,740 | 31,640 | 0 | 0 | 0 | -5,900 |
Net Income | 13,195 | 5,537 | 1,061 | 6,597 | 0 | |
Other Comprehensive loss | -2,369 | 0 | 0 | 0 | 0 | -2,369 |
Elimination of equity (note 2) | 45,799 | 45,799 | 0 | 0 | 0 | 0 |
Allocation of partnership capital to unitholders August 12, 2014 | 0 | -77,439 | 0 | 10,730 | 66,709 | 0 |
Net proceeds from IPO net of underwriters' discounts, fees and expenses of offering (note 3) | 203,467 | 0 | 203,467 | 0 | 0 | 0 |
Cash distribution of initial public offering proceeds to Höegh LNG | -43,467 | 0 | 0 | -6,023 | -37,444 | 0 |
Cash distributions to unitholders | -4,826 | 0 | -2,025 | -388 | -2,413 | |
Distributions to owner, net | -99 | 0 | 0 | -14 | -85 | 0 |
Balance at Dec. 31, 2014 | 237,440 | 0 | 206,979 | 5,366 | 33,364 | -8,269 |
Net Income | 2,418 | 0 | 1,015 | 194 | 1,209 | 0 |
Other Comprehensive loss | -1,700 | 0 | 0 | 0 | 0 | -1,700 |
Cash distributions to unitholders | -8,880 | 0 | -3,726 | -714 | -4,440 | 0 |
Cash contribution from Höegh LNG | 3,100 | 0 | 0 | 430 | 2,670 | 0 |
Contributions from owner | 34 | 0 | 0 | 5 | 29 | 0 |
Balance at Mar. 31, 2015 | $232,412 | $0 | $204,268 | $5,281 | $32,832 | ($9,969) |
CONDENSED_INTERIM_CONSOLIDATED4
CONDENSED INTERIM CONSOLIDATED AND COMBINED CARVE-OUT STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
OPERATING ACTIVITIES | ||
Net income (loss) | $2,418 | ($1,764) |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 8 | 8 |
Equity in losses (earnings) of joint ventures | 2,122 | 1,671 |
Changes in accrued interest income on advances to joint ventures and demand note | 944 | -297 |
Amortization and write off of deferred debt issuance cost | 747 | 282 |
Changes in accrued interest expense | -108 | 81 |
Net currency exchange losses (gains) | 446 | 0 |
Unrealized loss (gain) on financial instruments | -121 | 0 |
Other adjustments | 34 | 0 |
Changes in working capital: | ||
Restricted cash | 5,935 | 0 |
Unbilled construction contract income | 0 | -29,128 |
Prepaid expenses and other receivables | 675 | 6 |
Trade payables | 620 | 19 |
Amounts due to owners and affiliates | 1,272 | 7,446 |
Value added and withholding tax liability | -669 | -1,245 |
Accrued liabilities and other payables | -150 | 4,225 |
Net cash provided by (used in) operating activities | 14,173 | -18,696 |
INVESTING ACTIVITIES | ||
Expenditure for newbuildings and other equipment | -215 | -2,285 |
Receipts from repayment of principal on advances to joint ventures | 1,594 | 1,864 |
Receipts from repayment of principal on direct financing lease | 680 | 0 |
(Increase) decrease in restricted cash | 0 | 10,700 |
Net cash provided by investing activities | 2,059 | 10,279 |
FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 0 | 96,000 |
Proceeds from amounts due to owners and affiliates | 0 | 10,193 |
Repayment of long-term debt | -4,766 | 0 |
Repayment of amounts due to owners and affiliates | 0 | -25,400 |
Repayment of loans and promissory notes due to owners and affiliates | 0 | -48,500 |
Contributions from (distributions to) owner | 0 | -9,768 |
Payment of debt issuance cost | 0 | -9,259 |
Cash distributions to unitholders | -8,880 | 0 |
Proceeds from indemnifications received from Hoegh LNG | 3,100 | 0 |
(Increase) decrease in restricted cash | 68 | 0 |
Net cash provided by (used in) financing activities | -10,478 | 13,266 |
Increase (decrease) in cash and cash equivalents | 5,754 | 4,849 |
Effect of exchange rate changes on cash and cash equivalents | -469 | 0 |
Cash and cash equivalents, beginning of period | 30,477 | 108 |
Cash and cash equivalents, end of period | $35,762 | $4,957 |
Description_of_business
Description of business | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Nature of Operations [Text Block] | 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 and the Tower Yoke Mooring System), SRV Joint Gas Ltd. (the owner of the GDF Suez Neptune), and SRV Joint Gas Two Ltd. (the owner of the GDF Suez Cape Ann) in connection with the Partnership’s initial public offering of its common units (the “IPO”). | ||||||
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 GDF Suez Neptune, the GDF Suez Cape Ann and the PGN FSRU Lampung. The transfer of the interests was recorded at Höegh LNG’s consolidated book values. At the closing of the IPO (including the exercise by the underwriters of the option to purchase an additional 1,440,000 common units), (i) 11,040,000 common units were sold to the public for net proceeds, after deduction of offering expenses, of $203.5 million; (ii) Höegh LNG owned 2,116,060 common units and 13,156,060 subordinated units, representing approximately 58% of the limited partner interests in the Partnership, and 100% of the incentive distribution rights (“IDRs”) and (iii) a wholly owned subsidiary of Höegh LNG owned the non-economic general partner interest in the Partnership, as further described in note 3. | ||||||
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 and combined carve-out financial statements. The joint ventures and the subsidiaries are, collectively, referred to as the “Combined Entities” in the combined carve-out financial statements. The PGN FSRU Lampung, the GDF Suez Neptune and the GDF Suez Cape Ann are floating storage regasification units (“FSRUs”) and, collectively, referred to in these consolidated and combined carve-out financial statements as the vessels or the “FSRUs.” The Tower Yoke Mooring System (the “Mooring”) is an offshore installation that is used to moor the PGN FSRU Lampung to offload the gas into an offshore pipe that transports the gas to a land terminal. PT Hoegh LNG Lampung and the two joint ventures, SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., are collectively referred to as the “FSRU-owning entities.” | ||||||
The GDF Suez Neptune and the GDF Suez Cape Ann operate under long-term time charters with expiration dates in 2029 and 2030, respectively, and, in each case, with an option for the charterer to extend for up to two additional periods of five years each. The PGN FSRU Lampung, operates under a long term time charter which started in July 2014 with an expiration date in 2034 (with an option for the charterer to extend for up to two additional periods of five years each) and uses the Mooring that was constructed and installed for the charterer and was sold to PT PGN LNG, a subsidiary of Perusahaan Gas Negara (Persero) Tbk (“PGN”). | ||||||
The following table lists the entities included in these consolidated and combined carve-out financial statements and their purpose as of March 31, 2015. | ||||||
Jurisdiction of | ||||||
Name | Incorporation | 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 GDF Suez Neptune | ||||
SRV Joint Gas Two Ltd. (50% owned) (2) | Cayman Islands | Owns GDF Suez Cape Ann | ||||
(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 and combined carve-out 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_policie
Significant accounting policies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Accounting Policies [Abstract] | |||||
Significant Accounting Policies [Text Block] | 2. Significant accounting policies | ||||
a. | Basis of presentation | ||||
The accompanying unaudited condensed interim consolidated and combined carve-out financial statements are prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information. In the opinion of Management, all adjustments considered necessary for a fair presentation, which are of a normal recurring nature, have been included. All inter-company balances and transactions are eliminated. The footnotes are condensed and do not include all of the disclosures required for a complete set of financial statements. Therefore, the unaudited condensed interim consolidated and combined carve-out financial statements should be read in conjunction with the audited combined carve-out financial statements for the year ended December 31, 2014, included in the Partnership’s Annual Report on Form 20-F (the “Annual Report”). | |||||
As of August 13, 2014, financial statements of the Partnership are consolidated since it was a separate legal entity owning the interests in the subsidiaries and joint ventures. At the closing of the IPO, the transfer of the interests was recorded at Höegh LNG’s consolidated book values. Prior to that date, the income statement, balance sheet and cash flows, as converted to US GAAP, have been carved out of the consolidated financial statements of Höegh LNG and are presented on a combined carve-out basis for the Combined Entities. The combined carve-out financial statements include the related assets, liabilities, revenues, expenses and cash flows directly attributable to Hoegh LNG Lampung Pte. Ltd. and PT Hoegh LNG Lampung. In addition, the investment in 50% of the joint ventures using the equity method of accounting, and the related advances to joint ventures and interest income on the advances, are included in the consolidated and combined carve-out financial statements. The combined carve-out financial statements prior to August 13, 2014, also include allocations of certain administrative expenses. | |||||
Included in the combined carve-out equity as of August 12, 2014, were amounts related to promissory notes and related accrued interest due to Höegh LNG. Höegh LNG’s receivables for the promissory notes and related accrued interest of the Partnership’s subsidiaries were contributed to the Partnership as part of the Formation transactions. Refer to note 3 for additional discussion of the contribution. As a result, the liabilities of the Partnership’s subsidiaries are eliminated on consolidation since they were no longer external liabilities to the Partnership. Accordingly, this is equivalent to not transferring the subsidiaries’ liabilities to the Partnership. Therefore, the corresponding amounts have been eliminated for the Partnership’s opening equity position as of August 12, 2014. Details of the liabilities eliminated are as follows: | |||||
As of | |||||
August 12, | |||||
(in thousands of U.S. dollars) | 2014 | ||||
Accrued interest on $48.5 million Promissory note due to Höegh LNG transferred to Partnership | $ | -1,684 | |||
Accrued interest on $101.5 million Promissory note due to Höegh LNG transferred to Partnership | -2,947 | ||||
$40.0 million Promissory note and accrued interest due to Höegh LNG transferred to Partnership | -41,168 | ||||
Elimination to equity as of August 12, 2014 | $ | 45,799 | |||
It has been determined that PT Hoegh LNG Lampung, 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 and combined carve-out financial statements. Dividends may only be paid if the retained earnings are positive under Indonesian law and requirements are fulfilled under the Lampung facility. As of March 31, 2015, PT Hoegh LNG Lampung has negative retained earnings and therefore cannot make dividend payments under Indonesia law. Under the Lampung facility, there are limitations on cash dividends and loans that can be made to the Partnership. Refer to note 9. | |||||
In addition, the Partnership has determined that the two joint ventures, SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., are VIEs since each entity did not have a sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support at the time of its initial investment. The entities have been financed with third party debt and subordinated shareholders loans. The Partnership is not the primary beneficiary, as the Partnership cannot make key operating decisions considered to be most significant to the VIEs, but has joint control with the other equity holders. Therefore, the joint ventures are accounted for under the equity method of accounting as the Partnership has significant influence. The Partnership’s carrying value is recorded in advances to joint ventures and accumulated losses of joint ventures in the consolidated and combined carve-out balance sheets. For SRV Joint Gas Ltd., the Partnership had a receivable for the advances of $9.1 million and $9.8 million, respectively, and the Partnership’s accumulated losses or its share of net liabilities were $29.4 million and $28.4 million, respectively, as of March 31, 2015 and December 31, 2014. The Partnership’s carrying value for SRV Joint Gas Two Ltd., consists of a receivable for the advances of $8.5 million and $9.1 million, respectively, and the Partnership’s accumulated losses or its share of net liabilities were $32.4 million and $31.2 million, respectively, as of March 31, 2015 and December 31, 2014 . The major reason that the Partnership’s accumulated losses in the joint ventures are net liabilities is due to the fair value adjustments for the interest rate swaps recorded as liabilities on the combined balance sheets of SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. 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 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. 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. | |||||
b. | Significant accounting policies | ||||
The accounting policies used in the preparation of the unaudited condensed interim consolidated and combined carve-out financial statements are consistent with those applied in the audited consolidated and combined carve-out financial statements for the year ended December 31, 2014 included in the Partnership’s Annual Report. | |||||
c. | Recent accounting pronouncements | ||||
There are no recent accounting pronouncements, whose adoption had a material impact on the consolidated and combined carve-out financial statements for the three months ended March 31, 2015. The following recent accounting pronouncements are effective for future periods. | |||||
In February 2015, the Financial Accounting Standards Board (“FASB”) issued revised guidance for consolidation; Amendments to the Consolidation Analysis. The new guidance requires that entities re-evaluate their consolidation conclusions for their variable interests in other legal entities. The amendments are effective for annual and interim periods beginning after December 31, 2015. The Partnership is assessing what impact, if any, the adoption of this guidance will have on the consolidated and combined carve-out financial position, results of operations and cash flows. | |||||
In April 2015, the FASB issued revised guidance for the classification of debt issuance cost; Simplifying the Presentation of Debt Issuance Cost. Under the new guidance, deferred debt issuance cost will no longer be classified as assets but presented as a direct deduction from the carrying amount of the associated debt in the balance sheet. The presentation in the balance sheet will be adjusted on a retrospective basis. The amendments are effective for annual and interim periods beginning after December 31, 2015 and early adoption is permitted. Implementation of the revised guidance will result in a change in the classification of the deferred debt issuance cost on the Partnership’s consolidated and combined carve-out balance sheet. | |||||
Formation_transactions_and_Ini
Formation transactions and Initial Public Offering | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Partners' Capital Notes [Abstract] | |||||
Partners' Capital Notes Disclosure [Text Block] | 3. Formation transactions and Initial Public Offering | ||||
During August 2014, the following transactions in connection with the transfer of equity interests, shareholder loans and promissory notes and accrued interest to the Partnership and the IPO occurred: | |||||
Capital contribution | |||||
Höegh LNG contributed the following to the Partnership: | |||||
(i) | Its interests in Hoegh LNG Lampung Pte. Ltd., PT Hoegh LNG Lampung, SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd.; | ||||
(ii) | Its shareholder loans made by Höegh LNG to each of SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., in part to finance the operations of such joint ventures; | ||||
(iii) | Its receivables for the $40 million promissory note due to Höegh LNG as well as accrued interest on such note and two other promissory notes relating to Hoegh LNG Lampung Pte. Ltd.; | ||||
(iv) | These transactions have been accounted for as a capital contribution by Höegh LNG to the Partnership. However, for purposes of the combined carve-out financial statements, the (i) net assets of the entities and the (ii) shareholder loans to the joint ventures are included in the combined carve-out balance sheet as of March 31, 2014; | ||||
Recapitalization of the Partnership | |||||
(i) | The Partnership issued to Höegh LNG 2,116,060 common units and 13,156,060 subordinated units and 100% of incentive distribution rights (“IDRs”), which will entitle Höegh LNG to increasing percentages of the cash the Partnership distributes in excess of $0.388125 per unit per quarter; | ||||
(ii) | The Partnership issued to Höegh LNG GP LLC, a wholly owned subsidiary of Höegh LNG, a non-economic general partner interest in the Partnership; | ||||
Initial Public Offering | |||||
(i) | The Partnership issued and sold through the underwriters to the public 11,040,000 common units (including 1,440,000 common units exercised pursuant to the underwriters’ option to purchase additional common units), representing approximately 42% limited partnership interest in the Partnership. The common units were sold for $20.00 per unit resulting in gross proceeds of $220.8 million. The net proceeds of the offering were approximately $203.5 million. Net proceeds is after deduction of underwriters’ discounts, structuring fees and reimbursements and the incremental direct costs attributable to the IPO that were deferred and charged against the proceeds of the offering. | ||||
(ii) | The Partnership applied the net proceeds of the offering as follows: (i) $140 million to make a loan to Höegh LNG in exchange for a note bearing interest at a rate of 5.88% per annum, which is repayable on demand or which the Partnership can elect to utilize as part of the purchase consideration in the event the Partnership purchases all or a portion of Höegh LNG’s interests in the Independence, (ii) $20 million for general partnership purposes and (iii) the remainder of approximately $43.5 million to make a cash distribution to Höegh LNG. | ||||
Proceeds from IPO and application of funds | |||||
(in thousands of U.S. dollars) | |||||
Gross proceeds from IPO | $ | 220,800 | |||
Underwriters’ discounts, structuring fees and incremental direct IPO expenses | -17,333 | ||||
Net proceeds from IPO | 203,467 | ||||
Loan of initial public offering proceeds to Höegh LNG for demand note | -140,000 | ||||
Cash distribution of initial public offering proceeds to Höegh LNG | -43,467 | ||||
Cash retained for general partnership purposes | $ | 20,000 | |||
At the completion of the IPO, Höegh LNG owned 2,116,060 common units and 13,156,060 subordinated units, representing an approximate 58% limited partnership interest in the Partnership. | |||||
Agreements | |||||
In connection with the IPO the Partnership entered into several agreements including: | |||||
(i) | A $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 governing, among other things: | ||||
a. | To what extent the Partnership and Höegh LNG may compete with each other; | ||||
b. | The Partnership’s option to purchase from Höegh LNG all or a portion of its interests in an additional FSRU, the Independence , within 24 months after acceptance of such vessel by her charterer, subject to reaching an agreement with Höegh LNG regarding the purchase price and other terms in accordance with the provisions of the omnibus agreement and any rights AB Klaipèdos Nafta has under the related time charter, which the Partnership may exercise at one or more times during such 24-month period; | ||||
c. | The Partnership’s rights of first offer on certain FSRUs and LNG carriers operating under charters of five or more years; and | ||||
d. | Höegh LNG’s provision of certain indemnities to the Partnership. | ||||
(iii) | An administrative services agreement with Höegh LNG Services Ltd., UK (“Höegh UK”), pursuant to which Höegh UK provides certain administrative services to the Partnership; and | ||||
(iv) | Höegh UK has entered into an administrative services agreement with Höegh LNG AS (“Höegh Norway”) and Leif Höegh (U.K.) Limited, pursuant to which Höegh Norway and Leif Höegh (U.K.) Limited provide Höegh UK certain administrative services. | ||||
Existing agreements remain in place 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 GDF Suez Neptune and the GDF Suez 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. | ||||
Segment_information
Segment information | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | 4. Segment information | |||||||||||||||||||
There are two operating segments. The segment profit measure is Segment EBITDA, which is defined as earnings before interest, taxes, depreciation, amortization and other financial items (gains and losses 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 that are considered to benefit the entire organization and interest income from advances to joint ventures and the demand note due from Höegh LNG are included in “Other.” | ||||||||||||||||||||
For the three months ended March 31, 2015, Majority held FSRUs includes the direct financing lease related to the PGN FSRU Lampung. For the three months ended March 31, 2014, Majority held FSRUs includes a newbuilding, the PGN FSRU Lampung, and construction contract revenues and expenses of the Mooring under construction. The Mooring was constructed on behalf of, and was sold to, PGN using the percentage of completion method of accounting. The Mooring project was completed as of December 31, 2014. | ||||||||||||||||||||
As of March 31, 2015 and 2014, Joint venture FSRUs include two 50% owned FSRUs, the GDF Suez Neptune and the GDF Suez Cape Ann, that operate under long term time charters with one charterer, GDF Suez Global LNG Supply SA. | ||||||||||||||||||||
The accounting policies applied to the segments are the same as those applied in the consolidated and combined carve-out financial statements, except that Joint venture FSRUs are presented under the proportional consolidation method for the segment note and under equity accounting for the consolidated and combined carve-out financial statements. Under the proportional consolidation method, 50% of the Joint venture FSRUs’ revenues, expenses and assets are reflected in the segment note. Management monitors the results of operations of joint ventures under the proportional consolidation method and not the equity method of accounting. | ||||||||||||||||||||
In time charters, the charterer, not the Partnership, controls the choice of locations or routes the FSRUs serve. Accordingly, the presentation of information by geographical region is not meaningful. The following tables include the results for the segments for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||
Joint venture | Consolidated | |||||||||||||||||||
Majority | FSRUs | Total | and combined | |||||||||||||||||
held | (proportional | Segment | Elimin- | carve-out | ||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | ations | reporting | ||||||||||||||
Time charter revenues | $ | 11,535 | 10,169 | — | 21,704 | -10,169 | $ | 11,535 | ||||||||||||
Construction contract revenues | — | — | — | — | — | — | ||||||||||||||
Total revenues | 11,535 | 10,169 | — | 21,704 | 11,535 | |||||||||||||||
Operating expenses | -2,795 | -2,135 | -1,564 | -6,494 | 2,135 | -4,359 | ||||||||||||||
Construction contract expenses | — | — | — | — | — | — | ||||||||||||||
Equity in earnings of joint ventures | — | — | — | — | -2,122 | -2,122 | ||||||||||||||
Segment EBITDA | 8,740 | 8,034 | -1,564 | 15,210 | ||||||||||||||||
Depreciation and amortization | -8 | -2,177 | — | -2,185 | 2,177 | -8 | ||||||||||||||
Operating income (loss) | 8,732 | 5,857 | -1,564 | 13,025 | 5,046 | |||||||||||||||
Gain (loss) on derivative instruments | 121 | -3,932 | — | -3,811 | 3,932 | 121 | ||||||||||||||
Other financial income (expense), net | -4,701 | -4,047 | 2,129 | -6,619 | 4,047 | -2,572 | ||||||||||||||
Income (loss) before tax | 4,152 | -2,122 | 565 | 2,595 | — | 2,595 | ||||||||||||||
Income tax expense | -177 | — | — | -177 | — | -177 | ||||||||||||||
Net income (loss) | $ | 3,975 | -2,122 | 565 | 2,418 | — | $ | 2,418 | ||||||||||||
As of March 31, 2015 | ||||||||||||||||||||
Joint venture | Consolidated | |||||||||||||||||||
Majority | FSRUs | Total | and combined | |||||||||||||||||
held | (proportional | Segment | Elimin- | carve-out | ||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | ations | reporting | ||||||||||||||
Newbuildings | $ | — | — | — | — | — | $ | — | ||||||||||||
Vessels, net of accumulated depreciation | — | 279,417 | — | 279,417 | -279,417 | — | ||||||||||||||
Net investment in direct financing lease | 294,962 | — | — | 294,962 | — | 294,962 | ||||||||||||||
Advances to joint ventures | — | — | 17,586 | 17,586 | — | 17,586 | ||||||||||||||
Total assets | 378,216 | 300,701 | 184,754 | 863,670 | -300,701 | 562,970 | ||||||||||||||
Accumulated losses of joint ventures | — | — | 50 | 50 | -61,802 | -61,752 | ||||||||||||||
Expenditures for newbuildings, vessels & equipment | 455 | 4,091 | — | 4,546 | -4,091 | 455 | ||||||||||||||
Expenditures for drydocking | — | 221 | — | 221 | -221 | — | ||||||||||||||
Principal repayment direct financing lease | $ | 680 | — | — | 680 | — | $ | 680 | ||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
Joint venture | Consolidated | |||||||||||||||||||
Majority | FSRUs | Total | and combined | |||||||||||||||||
held | (proportional | Segment | Elimin- | carve-out | ||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | ations | reporting | ||||||||||||||
Time charter revenues | $ | — | 10,249 | — | 10,249 | -10,249 | $ | — | ||||||||||||
Construction contract revenues | 29,127 | — | — | 29,127 | — | 29,127 | ||||||||||||||
Total revenues | 29,127 | 10,249 | — | 39,376 | 29,127 | |||||||||||||||
Operating expenses | -1,331 | -2,145 | -2,817 | -6,293 | 2,145 | -4,148 | ||||||||||||||
Construction contract expenses | -24,661 | — | — | -24,661 | — | -24,661 | ||||||||||||||
Equity in earnings of joint ventures | — | — | — | — | -1,671 | -1,671 | ||||||||||||||
Segment EBITDA | 3,135 | 8,104 | -2,817 | 8,422 | ||||||||||||||||
Depreciation and amortization | -8 | -2,285 | — | -2,293 | 2,285 | -8 | ||||||||||||||
Operating income (loss) | 3,127 | 5,819 | -2,817 | 6,129 | -1,361 | |||||||||||||||
Gain (loss) on derivative instruments | — | -3,154 | — | -3,154 | 3,154 | — | ||||||||||||||
Other financial income (expense), net | -461 | -4,336 | 466 | -4,331 | 4,336 | 5 | ||||||||||||||
Income (loss) before tax | 2,666 | -1,671 | -2,351 | -1,356 | — | -1,356 | ||||||||||||||
Income tax expense | -408 | — | — | -408 | — | -408 | ||||||||||||||
Net income (loss) | $ | 2,258 | -1,671 | -2,351 | -1,764 | — | $ | -1,764 | ||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Joint venture | Consolidated | |||||||||||||||||||
Majority | FSRUs | Total | and combined | |||||||||||||||||
held | (proportional | Segment | Elimin- | carve-out | ||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | ations | reporting | ||||||||||||||
Newbuildings | $ | — | — | — | — | — | $ | — | ||||||||||||
Vessels, net of accumulated depreciation | — | 279,670 | — | 279,670 | -279,670 | — | ||||||||||||||
Net investment in direct financing lease | 295,188 | — | — | 295,188 | — | 295,188 | ||||||||||||||
Advances to joint ventures | — | — | 18,952 | 18,952 | — | 18,952 | ||||||||||||||
Total assets | 377,626 | 300,327 | 190,589 | 868,542 | -300,327 | 568,215 | ||||||||||||||
Accumulated losses of joint ventures | — | — | 50 | 50 | -59,680 | -59,630 | ||||||||||||||
Expenditures for newbuildings, vessels & equipment | 172,173 | 2,358 | — | 174,531 | -2,358 | 172,173 | ||||||||||||||
Expenditures for drydocking | — | — | — | — | — | — | ||||||||||||||
Principal repayment direct financing lease | $ | 1,311 | — | — | 1,311 | — | $ | 1,311 | ||||||||||||
Construction_contract_revenues
Construction contract revenues | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Construction Revenue [Abstract] | ||||||||
Construction Revenue [Text Block] | 5. Construction contract revenues | |||||||
Three months ended | ||||||||
March 31, | ||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Construction contract revenue | $ | — | $ | 29,127 | ||||
Construction contract expenses | — | -24,661 | ||||||
Recognized contract margin (loss) | $ | — | $ | 4,466 | ||||
PGN formally accepted the PGN FSRU Lampung and signed the Certificate of Acceptance on October 30, 2014 which was the condition for the final payment related to the Mooring. As such, the Mooring project was 100% completed as of December 31, 2014. As a result, there were no construction contract revenues or expenses for the three months ended March 31, 2015. | ||||||||
As of March 31, 2014, the Mooring project was estimated to be 81% completed. | ||||||||
Financial_income_expense
Financial income (expense) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Nonoperating Income (Expense) [Abstract] | ||||||||
Other Nonoperating Income and Expense [Text Block] | 6. Financial income (expense) | |||||||
The components of financial income (expense) are as follows: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Interest income | $ | 2,427 | $ | 466 | ||||
Interest expense: | ||||||||
Interest expense | -2,854 | -2,209 | ||||||
Commitment fees | -298 | -856 | ||||||
Amortization of debt issuance cost | -747 | -282 | ||||||
Capitalized interest | — | 3,266 | ||||||
Total interest expense | -3,899 | -81 | ||||||
Gain on derivative instruments | 121 | — | ||||||
Other items, net: | ||||||||
Foreign exchange gain (loss) | -426 | -20 | ||||||
Bank charges and fees | -2 | — | ||||||
Withholding tax on interest expense and other | -672 | -360 | ||||||
Total other items, net | -1,100 | -380 | ||||||
Total financial income (expense), net | $ | -2,451 | $ | 5 | ||||
Income_tax
Income tax | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 7. Income tax |
The Partnership is not subject to Marshall Islands corporate income taxes. The Partnership is subject to tax for earnings of Hoegh LNG Lampung Pte. Ltd., its subsidiary incorporated in Singapore, and PT Hoegh LNG Lampung, its FSRU-owing entity incorporated in Indonesia. The income tax expense recorded in the consolidated and combined carve-out income statements was $177 and $408 for the three month periods ended March 31, 2015 and 2014, respectively. For the first quarter of 2015, the income tax expense related to Hoegh LNG Lampung, Pte Ltd.. PT Hoegh LNG Lampung has a tax loss carryforward from the prior year which is expected to offset any current tax expense during 2015. | |
A deferred tax benefit of $567 and $866 related to the unrealized losses on interest rate swaps accounted for as a cash flow hedge was recorded as a component of other comprehensive income on the consolidated and combined carve-out statements of comprehensive income for the three months ended March 31, 2015 and 2014, respectively. | |
Advances_to_joint_ventures
Advances to joint ventures | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Advances to Joint Ventures Disclosure [Text Block] | 8. Advances to joint ventures | |||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Current portion of advances to joint ventures | $ | 6,535 | $ | 6,665 | ||||
Long-term advances to joint ventures | 11,051 | 12,287 | ||||||
Advances/shareholder loans to joint ventures | $ | 17,586 | $ | 18,952 | ||||
The Partnership had advances of $9.1 million and $9.8 million due from SRV Joint Gas Ltd. as of March 31, 2015 and December 31, 2014, respectively. The Partnership had advances of $8.5 million and $9.1 million due from SRV Joint Gas Two Ltd. as of March 31, 2015 and December 31, 2014, respectively. | ||||||||
Longterm_debt
Long-term debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt Disclosure [Text Block] | 9. Long-term debt | |||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
$ 299 million Lampung facility: | ||||||||
$ 178.6 million Export credit tranche | $ | 164,918 | $ | 168,640 | ||||
$ 58.5 million FSRU tranche | 42,649 | 43,693 | ||||||
Total debt | 207,567 | 212,333 | ||||||
Less: Current portion of long-term debt | -19,062 | -19,062 | ||||||
Long-term debt | $ | 188,505 | $ | 193,271 | ||||
Lampung facility | ||||||||
The primary financial covenants under the Lampung facility are as follows: | ||||||||
· | Borrower must maintain a minimum debt service coverage ratio of 1.10 to 1.00 for the preceding nine-month period tested beginning from the second quarterly repayment date of the export credit tranche; | |||||||
· | 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 March 31, 2015, the borrower and the guarantor were in compliance with the financial covenants. | ||||||||
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 limit, among other things, the ability of the borrower to change its business, sell or grant liens on its property including the PGN FSRU Lampung, incur additional indebtedness or guarantee other indebtedness, make investments or acquisitions, enter into intercompany transactions and make distributions. | ||||||||
Investments_in_joint_ventures
Investments in joint ventures | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 10. Investments in joint ventures | ||||||||
As of | |||||||||
March 31, | December 31, | ||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | |||||||
Accumulated losses of joint ventures | $ | 61,752 | $ | 59,630 | |||||
The Partnership has a 50% interest in each of SRV Joint Gas Ltd. (owner of GDF Suez Neptune) and SRV Joint Gas Two Ltd. (owner of GDF Suez Cape Ann). The following table presents the summarized financial information for 100% of the combined joint ventures on an aggregated basis. | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | |||||||
Time charter revenues | $ | 20,337 | $ | 20,498 | |||||
Total revenues | $ | 20,337 | $ | 20,498 | |||||
Operating expenses | -4,269 | -4,289 | |||||||
Depreciation and amortization | -4,507 | -4,724 | |||||||
Operating income | 11,561 | 11,485 | |||||||
Unrealized gain (loss) on derivative instruments | -7,864 | -6,308 | |||||||
Other financial expense, net | -8,094 | -8,673 | |||||||
Net income (loss) | $ | -4,397 | $ | -3,496 | |||||
Share of joint ventures owned | 50 | % | 50 | % | |||||
Share of joint ventures net income (loss) before eliminations | -2,199 | -1,748 | |||||||
Eliminations | 77 | 77 | |||||||
Equity in earnings (losses) of joint ventures | $ | -2,122 | $ | -1,671 | |||||
As of | |||||||||
March 31, | December 31, | ||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | |||||||
Cash and cash equivalents | $ | 12,190 | $ | 10,719 | |||||
Other current assets | 3,190 | 3,317 | |||||||
Total current assets | 15,380 | 14,036 | |||||||
Restricted cash | 25,104 | 25,104 | |||||||
Vessels, net of accumulated depreciation | 577,235 | 577,897 | |||||||
Other long-term assets | 2,084 | 2,174 | |||||||
Total long-term assets | 604,423 | 605,175 | |||||||
Current portion of long-term debt | 21,091 | 20,768 | |||||||
Amounts and loans due to owners and affiliates | 13,146 | 14,516 | |||||||
Derivative financial instruments | 23,869 | 23,887 | |||||||
Other current liabilities | 11,456 | 8,278 | |||||||
Total current liabilities | 69,562 | 67,449 | |||||||
Long-term debt | 495,973 | 501,369 | |||||||
Loans due to owners and affiliates | 22,101 | 24,575 | |||||||
Derivate financial liabilities | 109,791 | 101,910 | |||||||
Other long-term liabilities | 27,477 | 24,612 | |||||||
Total long-term liabilities | 655,342 | 652,466 | |||||||
Net liabilities | $ | -105,101 | $ | -100,704 | |||||
Share of joint ventures owned | 50 | % | 50 | % | |||||
Share of joint ventures net liabilities before eliminations | -52,551 | -50,352 | |||||||
Eliminations | -9,201 | -9,278 | |||||||
Accumulated losses of joint ventures | $ | -61,752 | $ | -59,630 | |||||
Related_party_transactions
Related party transactions | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related Party Transactions Disclosure [Text Block] | 11. Related party transactions | |||||||
Income (expense) from related parties | ||||||||
The Combined Entities were an integrated part of Höegh LNG until the close of the IPO on August 12, 2014. In connection with the IPO, the Partnership entered into several agreements with Höegh LNG (and certain of its subsidiaries) for the provision of services. Refer to note 3 for additional information. As such, Höegh LNG and its subsidiaries have provided general and corporate management services to the Partnership and the Combined Entities. Certain administrative expenses were included in the combined carve-out financial statements of the Combined Entities based on actual hours incurred. In addition, management allocated remaining administrative expenses and Höegh LNG management’s share based payment costs based on the number of vessels, newbuildings and business development projects of Höegh LNG prior to the closing of the IPO. A subsidiary of Höegh LNG has provided the building supervision of the newbuilding and Mooring and ship management for PGN FSRU Lampung. | ||||||||
Amounts included in the consolidated and combined carve-out statements of income for the three months ended March 31, 2015, and 2014 or capitalized in the consolidated and combined carve-out balance sheets as of March 31, 2015 and December 31, 2014 are as follows: | ||||||||
Three months ended | ||||||||
Statement of income: | March 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Operating expenses | ||||||||
Vessel operating expenses (1) | $ | -1,260 | $ | — | ||||
Hours and overhead (2) | -317 | -672 | ||||||
Allocated administrative expenses (3) | — | -2,965 | ||||||
Construction contract expense: supervision cost (4) | — | -312 | ||||||
Construction contract expense: capitalized interest (5) | — | -601 | ||||||
Financial (income) expense | ||||||||
Interest income from joint ventures and demand note (6) | 2,427 | 466 | ||||||
Interest expense and commitment fees to Höegh LNG (7) | -298 | -81 | ||||||
Total | $ | 552 | $ | -4,165 | ||||
As of | ||||||||
Balance sheet | March 31, | December 31, | ||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Newbuilding | ||||||||
Newbuilding supervision cost (4) | $ | — | $ | 1,228 | ||||
Interest expense capitalized from Höegh LNG (5) | — | 1,464 | ||||||
Total | $ | — | $ | 2,692 | ||||
1) | Vessel operating expenses: A subsidiary of Höegh LNG provides ship management of vessels, including crews and the provision of all other services and supplies. | |||||||
2) | Hours and overhead: Subsidiaries of Höegh LNG provide management, accounting, bookkeeping and administrative support. 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. Subsequent to the closing of the IPO, this includes services under administrative service agreements. | |||||||
3) | Allocated administrative expenses: Until the closing of the IPO on August 12, 2014, administrative expenses of Höegh LNG that could not be attributed to a specific vessel or project based upon the time-write system were allocated to the consolidated and combined carve-out income statement based on the number of vessels, newbuildings and certain business development projects of Höegh LNG. For the period from January 1, 2014 to August 12, 2014, the allocated expenses also include cost incurred in preparation for the IPO. | |||||||
4) | Supervision cost: Höegh LNG Fleet Management AS managed the newbuilding process including site supervision including manning for the services and direct accommodation and travel cost. Manning costs are based upon actual hours incurred. Such costs, excluding overhead charges, were capitalized as part of the cost of the newbuilding and included in the construction contract expense for the Mooring. | |||||||
5) | Interest expense capitalized from Höegh LNG and affiliates: As described under 7) below, Höegh LNG and its affiliates provided funding for the PGN FSRU Lampung and the Mooring (a component of the construction contract expense), which qualify under US GAAP as capitalized interest for the construction in progress. | |||||||
6) | Interest income from joint ventures and demand note: 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. In the consolidated and combined carve-out statements of cash flows, the interest paid from joint ventures is treated as a return on investment and included in net cash flows from operating activities. Interest income also includes interest on the $140 million demand note due from Höegh LNG. Refer to “Demand note due from owner” below. | |||||||
7) | Interest expense and commitment fees to Höegh LNG and affiliates: Höegh LNG and its affiliates provided loans and promissory notes and intercompany funding for the construction of the PGN FSRU Lampung, the construction contract expense of the Mooring. Subsequent to the closing of the IPO, commitment fees are due on the $85 million revolving credit facility. Refer to “Amounts, loans and promissory notes due to owners and affiliates” below. Refer to 5) above which describes the interest expense, which was capitalized. | |||||||
Receivables and payables from related parties | ||||||||
Demand note due from owner | ||||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Demand note due from owner | $ | 142,069 | $ | 143,241 | ||||
The Partnership lent $140 million to Höegh LNG from the net proceeds of the IPO on August 12, 2014. The note is repayable on demand or the Partnership can utilize the note as part of the purchase consideration in the event all or a portion of Höegh LNG’s interests in the Independence are purchased by the Partnership. The note bears interest at a rate of 5.88% per annum. The balances in the table above include outstanding principal and accrued interest of $2,069 and $3,241 as of March 31, 2015 and December 31, 2014, respectively. | ||||||||
Refer to note 8 for advances to joint ventures. | ||||||||
Amounts, loans and promissory note due to owners and affiliates | ||||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Amounts due to owners and affiliates | $ | 7,291 | $ | 6,019 | ||||
Amounts due to owners and affiliates principally relate to short term funding and trade payables of operating activities as of March 31, 2015 and December 31, 2014, respectively. | ||||||||
Loans and promissory notes due to owners and affiliates consist of the following: | ||||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Loans and promissory notes due to owners and affiliates | $ | 298 | $ | 467 | ||||
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 for a term of three years and is unsecured. Interest on drawn amounts is payable quarterly at LIBOR plus a margin of 4.0%. Additionally, a 1.4% quarterly commitment fee is due to Höegh LNG on undrawn available amounts. The balances as of March 31, 2015 and December 31, 2014, relate to accrued commitment fees. No amounts were drawn on the revolving credit facility as of March 31, 2015 and December 31, 2014. | ||||||||
Indemnifications | ||||||||
Environmental indemnifications: | ||||||||
Under the omnibus agreement, Höegh LNG will 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. Liabilities resulting from a change in law are excluded from the environmental indemnity. There is an aggregate cap of $5.0 million on the amount of indemnity coverage provided by Höegh LNG for environmental and toxic tort liabilities. No claim may be made unless the aggregate dollar amount of all claims exceeds $500, in which case Höegh LNG is liable for claims only to the extent such aggregate amount exceeds $500. | ||||||||
Other indemnifications: | ||||||||
Under the omnibus agreement, Höegh LNG will also 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 arise 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 does 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 certain invoices not paid by PGN for the year ended December 31, 2014 (refer to note 14); | |||||||
4 | with respect to any obligation to pay liquidated damages to PGN 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 (refer to note 14); and | |||||||
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. During the first quarter of 2015, the Partnership filed claims for indemnification with respect to non-budgeted expenses (including repair costs) of $3.1 million and warranty provision of $2.0 million related to the year ended December 31, 2014 (refer to note 14). | |||||||
Financial_Instruments
Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Disclosures [Text Block] | 12. Financial Instruments | |||||||||||||||
Fair value measurements | ||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instrument: | ||||||||||||||||
Cash and cash equivalents and restricted cash – The fair value of the cash and cash equivalents and restricted cash approximates its carrying amounts reported in the consolidated and combined carve-out balance sheets. | ||||||||||||||||
Advances (shareholder loans) to joint ventures – The fair values of the fixed rate subordinated shareholder loans are estimated using discounted cash flow analyses based on rates currently available for debt with similar terms and remaining maturities and the current credit worthiness of the joint ventures. | ||||||||||||||||
Demand note due from owner affiliates – The fair value of the fixed rate demand note approximates the carrying amount of the receivable and accrued interest reported in the consolidated and combined carve-out balance sheets since the amount is payable on demand. Refer to note 11. | ||||||||||||||||
Amounts due to owners and affiliates – The fair value of the non-interest bearing payable approximates its carrying amounts reported in the consolidated and combined carve-out balance sheets since it is to be settled consistent with trade payables. | ||||||||||||||||
Loans and promissory notes due to owners and affiliates – The fair values of the variable-rate and the fixed rate loans and promissory notes approximates their carrying amounts of the liabilities and accrued interest reported in the consolidated and combined carve-out balance sheets since the amounts are payable on demand. Refer to note 11. | ||||||||||||||||
Derivative financial instruments – The fair values of the interest rates swaps are estimated based on the present value of cash flows over the term of the instruments based on the relevant LIBOR interest rate curves, adjusted for the subsidiary’s credit worthiness given the level of collateral provided and the credit worthiness of the counterparty to the derivative. | ||||||||||||||||
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. | ||||||||||||||||
As of | As of | |||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
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 | $ | 35,762 | 35,762 | 30,477 | 30,477 | ||||||||||
Restricted cash | 1 | 31,116 | 31,116 | 37,119 | 31,119 | |||||||||||
Derivative financial instruments | 2 | -11,367 | -11,367 | -9,220 | -9,220 | |||||||||||
Other: | ||||||||||||||||
Advances (shareholder loans) to joint ventures | 2 | 17,586 | 18,186 | 18,952 | 19,629 | |||||||||||
Demand note due from owner | 2 | 142,069 | 142,069 | 143,241 | 143,241 | |||||||||||
Current amounts due to owners and affiliates | 2 | -7,291 | -7,291 | -6,019 | -6,019 | |||||||||||
Loans and promissory notes due to owners and affiliates | 2 | -298 | -298 | -467 | -467 | |||||||||||
$299 million Lampung facility | 2 | $ | -207,567 | -209,796 | -212,333 | -214,636 | ||||||||||
Financing Receivables | ||||||||||||||||
The following table contains a summary of the loan receivables by type of borrower and the method by which the credit quality is monitored on a quarterly basis: | ||||||||||||||||
As of | ||||||||||||||||
Class of Financing Receivables | Credit Quality | March 31, | December 31, | |||||||||||||
(in thousands of U.S. dollars) | Indicator | Grade | 2015 | 2014 | ||||||||||||
Advances/loans to joint ventures | Payment activity | Performing | $ | 17,586 | $ | 18,952 | ||||||||||
Demand note due from owner | Payment activity | Performing | $ | 142,069 | $ | 143,241 | ||||||||||
The shareholder loans to joint ventures are classified as advances to joint ventures in the consolidated and combined carve-out balance sheet. Refer to note 8. | ||||||||||||||||
Risk_management_and_concentrat
Risk management and concentrations of risk | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||
Concentration Risk Disclosure [Text Block] | 13. Risk management and concentrations of risk | ||||||||||||||
Derivative instruments can be used in accordance with the overall risk management policy. | |||||||||||||||
Foreign exchange risk | |||||||||||||||
All revenues, financing, interest expenses from financing and most expenditures for newbuildings are denominated in U.S. dollars. Certain operating expenses and taxes can be denominated in currencies other than U.S. dollars. Certain cash balances are also denominated in currencies other than U.S. dollars. For the three months ended March 31, 2015, and 2014, no derivative financial instruments have been used to manage foreign exchange risk. | |||||||||||||||
Interest rate risk | |||||||||||||||
Interest rate swaps are utilized to exchange a receipt of floating interest for a payment of fixed interest to reduce the exposure to interest rate variability on its outstanding floating-rate debt. As of March 31, 2015 and December 31, 2014, there are interest rate swap agreements on the Lampung facility floating rate debt that are designated as cash flow hedges for accounting purposes. As of March 31, 2015, the following interest rate swap agreements were outstanding: | |||||||||||||||
(in thousands of U.S. dollars) | Interest | Notional | Fair | Term | Fixed | ||||||||||
rate | amount | value | interest | ||||||||||||
index | carrying | rate (1) | |||||||||||||
amount | |||||||||||||||
liability | |||||||||||||||
LIBOR-based debt | |||||||||||||||
Interest rate swaps (2) | LIBOR | $ | 207,567 | -11,367 | Sep-26 | 2.8 | % | ||||||||
1) Excludes the margins paid on the floating-rate debt. | |||||||||||||||
2) All interest rate swaps are U.S. dollar denominated and principal amount reduces quarterly. | |||||||||||||||
The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the consolidated and combined carve-out balance sheets. | |||||||||||||||
Current | Long-term | ||||||||||||||
liabilities: | liabilities: | ||||||||||||||
derivative | derivative | ||||||||||||||
financial | financial | ||||||||||||||
(in thousands of U.S. dollars) | instruments | instruments | |||||||||||||
As of March 31, 2015 | |||||||||||||||
Interest rate swaps | $ | -4,482 | $ | -6,885 | |||||||||||
As of December 31, 2014 | |||||||||||||||
Interest rate swaps | $ | -4,676 | $ | -4,544 | |||||||||||
The following effects of cash flow hedges relating to interest rate swaps are included in gain on derivative financial instruments in the consolidated and combined carve-out statements of income for the three months ended March 31, 2015. There were no realized or unrealized gains or losses on derivative financial instruments for the three months ended March 31, 2014. | |||||||||||||||
Three months ended | |||||||||||||||
March 31, 2015 | |||||||||||||||
Realized | Unrealized | ||||||||||||||
gains | gains | ||||||||||||||
(in thousands of U.S. dollars) | (losses) | (losses) | Total | ||||||||||||
Interest rate swaps: | |||||||||||||||
Ineffective portion of cash flow hedge | $ | — | — | $ | — | ||||||||||
Amortization of amount excluded from hedge effectiveness | — | 335 | 335 | ||||||||||||
Reclassification from accumulated other comprehensive income | — | -214 | -214 | ||||||||||||
Gain on derivative financial instruments | $ | — | 121 | $ | 121 | ||||||||||
The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income and changes in accumulated other comprehensive income (“OCI”) in the consolidated and combined carve-out statements of changes in partners’ capital/ owner’s equity is as follows for the periods ended and as of March 31, 2015 and 2014 included in the consolidated and combined carve-out statements of other comprehensive income. | |||||||||||||||
Cash Flow Hedge | |||||||||||||||
(in thousands of U.S. dollars) | Before | Tax | Net of tax | Accumulated | |||||||||||
tax gains | benefit | OCI | |||||||||||||
(losses) | (expense) | ||||||||||||||
Balance as of December 31, 2014 | $ | -10,159 | 1,890 | -8,269 | $ | -8,269 | |||||||||
Effective portion of unrealized loss on cash flow hedge | -2,481 | 620 | -1,861 | -1,861 | |||||||||||
Reclassification of amortization of cash flow hedge to earnings | 214 | -53 | 161 | 161 | |||||||||||
Other comprehensive income for period | -2,267 | 567 | -1,700 | -1,700 | |||||||||||
Balance as of March 31, 2015 | $ | -12,426 | 2,457 | -9,969 | $ | -9,969 | |||||||||
Cash Flow Hedge | |||||||||||||||
(in thousands of U.S. dollars) | Before | Tax | Net of tax | Accumulated | |||||||||||
tax gains | benefit | OCI | |||||||||||||
(losses) | (expense) | ||||||||||||||
Balance as of December 31, 2013 | $ | — | — | — | $ | — | |||||||||
Effective portion of unrealized loss on cash flow hedge | -3,466 | 866 | -2,600 | -2,600 | |||||||||||
Reclassification of amortization of cash flow hedge to earnings | — | — | — | — | |||||||||||
Other comprehensive income for period | -3,466 | 866 | -2,600 | -2,600 | |||||||||||
Balance as of March 31, 2014 | $ | -3,466 | 866 | -2,600 | $ | -2,600 | |||||||||
Refer to note 7 for additional information on the tax effects included in other comprehensive income. | |||||||||||||||
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 and interest rate swap agreements. In order to minimize counterparty risk, bank relationships are established with counterparties with acceptable credit ratings at the time of the transactions. Credit risk related to receivables is limited by performing ongoing credit evaluations of the customers’ financial condition. | |||||||||||||||
Concentrations of risk | |||||||||||||||
Financial instruments, which potentially subject the Partnership to significant concentrations of credit risk, consist principally of cash and cash equivalents, restricted cash, trade receivables and derivative contracts (interest rate swaps). The maximum exposure to loss due to credit risk is the book value at the balance sheet date. The Partnership does not have a policy of requiring collateral or security. Cash and cash equivalents and restricted cash are placed with qualified financial institutions. Periodic evaluations are performed of the relative credit standing of those financial institutions. In addition, exposure is limited by diversifying among counterparties. There is a single charterer so there is a concentration of risk related to trade receivables. Credit risk related to trade receivables is limited by performing ongoing credit evaluations of the customer’s financial condition. No allowance for doubtful accounts was recorded for the three month periods ended March 31, 2015 and March 31, 2014 and the year ended December 31, 2014. 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 charter terminate prematurely, there could be delays in obtaining a new time charter and the rates could be lower depending upon the prevailing market conditions. | |||||||||||||||
Commitments_and_contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 14. Commitments and contingencies |
Contractual commitments | |
As of March 31, 2015, contractual purchase commitments required to be made in 2015 were $0.5 million. | |
Claims and Contingencies | |
PGN claims and indemnification | |
Following certain delays, the time charter hire on the PGN FSRU Lampung commenced July 21, 2014 for the start of commissioning. During the commissioning to test the PGN FSRU Lampung project (including the Mooring) and the pipeline functionality, technical problems were identified on August 29, 2014. Following the completion of the commissioning, PGN formally accepted and signed the Certificate of Acceptance dated October 30, 2014. | |
The Partnership’s subsidiary had commitments to pay a day rate for delay liquidated damages to PGN for delays in achieving the scheduled arrival date or acceptance by the scheduled delivery date. PGN had concerns about requirements under the time charter contract to pay hire rates for the periods of delay during the commissioning and issued invoices for $7.1 million for delay liquidated damages. PGN also did not pay its time charter hire for September 2014 or October 2014. | |
The Partnership was indemnified under the omnibus agreement by Höegh LNG for both delay liquidated damages and any hire rate payments not received under the PGN FSRU Lampung time charter for the period commencing on August 12, 2014 through the acceptance date of the PGN FSRU Lampung. The Partnership filed indemnification claims for the September and October 2014 invoices not paid by PGN of $6.5 million and $6.7 million, respectively, and received payments from Höegh LNG in September and October, respectively. Indemnification for hire rate payments was accounted for consistent with the accounting policies for loss of hire insurance, and was recognized when the proceeds were received. Therefore, the Partnership recognized the payments from Höegh LNG for September and October 2014 as revenue, net of value added tax liabilities and certain deferrals, and as an increase to cash. | |
The Partnership’s subsidiary and the pipeline contractor were jointly and severally liable to PGN for each other’s delay liquidated damages if either party failed to perform. Further, the Partnership’s subsidiary and the pipeline contractor had an agreement to cover the other party’s delay liquidated damages to the extent caused by the other party’s scope of work. The Partnership has not received any claims from PGN or the pipeline contractor related to the contractor’s delay liquidated damages. The Partnership was indemnified by Höegh LNG for any potential delay liquidated damages, net of any recoveries, arising for or from claims of the pipeline contractor. | |
During March 2015, an understanding with PGN, the pipeline contractor and the Partnership’s subsidiary was reached. As a result, PGN will not pay the time charter hire for September 2014 or October 2014, the Partnership’s subsidiary will not pay the delay liquidated damages, the Partnership’s subsidiary is released from joint and several liability for the pipeline contractor’s delay liquidated damages, the pipeline contractor is released from joint and several liability for the Partnership’s subsidiary’s delay liquidated damages and neither the Partnership’s subsidiary nor the pipeline contractor cover the other party’s delay liquidated damages to the extent caused by the other party’s scope of work. As a result, the Partnership believes it has no further exposure to claims from PGN or the pipeline contractor associated with the delivery commitments and it has been fully indemnified by Höegh LNG for the loss of time charter hire payments. | |
As of December 31, 2014, a warranty allowance of $2.0 million was recorded to construction contract expenses related to the Mooring. The Partnership filed indemnification claims for the warranty allowance of $2.0 million to be paid to the Partnership by Höegh LNG when costs are incurred for the warranty. No costs were incurred as of March 31, 2015. | |
The Partnership was indemnified by Höegh LNG for non-budgeted expenses (including repair costs) incurred in connection with the PGN FSRU Lampung project prior to the date of acceptance. In the first quarter of 2015, the Partnership filed indemnification claims and was paid for non-budgeted expenses and costs of $3.1 million related to the year ended December 31, 2014. The cash payment from Höegh LNG was recorded as a contribution to equity. | |
Supplemental_cash_flow_informa
Supplemental cash flow information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Cash Flow, Supplemental Disclosures [Text Block] | 15. Supplemental cash flow information | |||||||
Three months ended | ||||||||
March 31, | ||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Supplemental disclosure of non-cash financing activities: | ||||||||
Non-cash capital contribution from conversion of debt | $ | — | $ | 101,500 | ||||
Earning_per_unit_and_cash_dist
Earning per unit and cash distributions | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Earnings Per Unit [Abstract] | |||||
Earnings Per Share [Text Block] | 16. Earning per unit and cash distributions | ||||
The calculation of basic and diluted earnings per unit are presented below | |||||
Three months | |||||
ended | |||||
March 31, | |||||
(in thousands of U.S. dollars, except unit and per unit numbers) | 2015 | ||||
Post IPO net income attributable to the unitholders of Höegh LNG Partners LP | $ | 2,418 | |||
Less: Dividends paid or to be paid (1) | -8,880 | ||||
Under (over) distributed earnings | -6,462 | ||||
Under (over) distributed earnings attributable to: | |||||
Common units public | -2,711 | ||||
Common units Höegh LNG | -520 | ||||
Subordinated units Höegh LNG | -3,231 | ||||
-6,462 | |||||
Basic and diluted weighted average units outstanding (in thousands) | |||||
Common units public | 11,040 | ||||
Common units Höegh LNG | 2,116 | ||||
Subordinated units Höegh LNG | 13,156 | ||||
Basic and diluted earnings per unit: | |||||
Common units public | $ | 0.09 | |||
Common units Höegh LNG | $ | 0.09 | |||
Subordinated units Höegh LNG | $ | 0.09 | |||
-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. | ||||
Earnings per unit information has not been presented for any period prior to the Partnership’s IPO as the information is not comparable due to changes in the basis of preparation of the financial statements (refer to note 2) and the Partnership’s structure (refer to note 3). | |||||
As of March 31, 2015, the total number of units outstanding was 26,312,120. Common units outstanding were 13,156,060 of which 11,040,000 common units were held by the public and 2,116,060 common units were held by Höegh LNG. Höegh LNG owned 13,156,060 subordinated units. The General Partner has a non-economic interest and has no units. | |||||
Earnings per unit is calculated by dividing net income by the weighted average number of units outstanding during the applicable period. | |||||
The common unitholders’ and subordinated unitholders’ interest in net income are calculated as if all net income were distributed according to terms of the Partnerships’ First 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; and iii) provide funds for distributions to the unitholders for any one or more of the next four quarters. Therefore, the earnings per unit is 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 financial instruments and unrealized gains or losses on foreign exchange transactions. | |||||
During the subordination period, the common units will have the right under the Partnership Agreement to receive distributions of available cash from operating surplus in an amount equal to the minimum quarterly distribution of $0.3375 per unit, plus any arrearages in the payment of the minimum quarterly distribution on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. Distribution arrearages do not accrue on the subordinated units. | |||||
The amount of minimum distributions is $0.3375 per unit per quarter, or $1.35 per unit on an annual basis, and is made during the subordination period in the following manner: | |||||
• | first, 100.0% to the common unitholders, pro rata, until the Partnership distributes for each outstanding common unit an amount equal to the minimum quarterly distribution of $0.3375 for that quarter; | ||||
• | second, 100.0% to the common unitholders, pro rata, until the Partnership distributes for each outstanding common unit an amount equal to any arrearages in payment of the minimum quarterly distribution on the common units for any prior quarters during the subordination period; and | ||||
• | third, 100.0% to the subordinated unitholders, pro rata, until the Partnership distributes for each subordinated unit an amount equal to the minimum quarterly distribution of $0.3375 for that quarter. | ||||
In addition, Höegh LNG currently holds all of 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. | |||||
If for any quarter: | |||||
• | the Partnership has distributed available cash from operating surplus to the common and subordinated unitholders in an amount equal to the minimum quarterly distribution; and | ||||
• | the Partnership has distributed available cash from operating surplus on outstanding common units in an amount necessary to eliminate any cumulative arrearages in payment of the minimum quarterly distribution; | ||||
then, the Partnership will distribute any additional available cash from operating surplus for that quarter among the unitholders in the following manner: | |||||
• | first, 100.0% to all unitholders, pro rata, until each unitholder receives a total of $0.388125 per unit for that quarter (the “first target distribution”); | ||||
• | second, 85.0% to all unitholders, pro rata, and 15.0% to the holders of the incentive distribution rights, pro rata, until each unitholder receives a total of $0.421875 per unit for that quarter (the “second target distribution”); | ||||
• | third, 75.0% to all unitholders, pro rata, and 25.0% to the holders of the incentive distribution rights, pro rata, until each unitholder receives a total of $0.50625 per unit for that quarter (the “third target distribution”); and | ||||
• | thereafter, 50.0% to all unitholders, pro rata, and 50.0% to the holders of the incentive distribution rights, pro rata. | ||||
In each case, the amount of the target distribution set forth above is exclusive of any distributions to common unitholders to eliminate any cumulative arrearages in payment of the minimum quarterly distribution. The percentage interests set forth above assume that the Partnership does not issue additional classes of equity securities. | |||||
Subsequent_events
Subsequent events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 17. Subsequent events |
On May 15, 2015, the Partnership paid a quarterly cash distribution with respect to the quarter ended March 31, 2015 of $0.3375 per unit. The distribution corresponds to an annualized distribution of $1.35 per unit. | |
Significant_accounting_policie1
Significant accounting policies (Policies) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Accounting Policies [Abstract] | |||||
Basis of Accounting, Policy [Policy Text Block] | a. | Basis of presentation | |||
The accompanying unaudited condensed interim consolidated and combined carve-out financial statements are prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information. In the opinion of Management, all adjustments considered necessary for a fair presentation, which are of a normal recurring nature, have been included. All inter-company balances and transactions are eliminated. The footnotes are condensed and do not include all of the disclosures required for a complete set of financial statements. Therefore, the unaudited condensed interim consolidated and combined carve-out financial statements should be read in conjunction with the audited combined carve-out financial statements for the year ended December 31, 2014, included in the Partnership’s Annual Report on Form 20-F (the “Annual Report”). | |||||
As of August 13, 2014, financial statements of the Partnership are consolidated since it was a separate legal entity owning the interests in the subsidiaries and joint ventures. At the closing of the IPO, the transfer of the interests was recorded at Höegh LNG’s consolidated book values. Prior to that date, the income statement, balance sheet and cash flows, as converted to US GAAP, have been carved out of the consolidated financial statements of Höegh LNG and are presented on a combined carve-out basis for the Combined Entities. The combined carve-out financial statements include the related assets, liabilities, revenues, expenses and cash flows directly attributable to Hoegh LNG Lampung Pte. Ltd. and PT Hoegh LNG Lampung. In addition, the investment in 50% of the joint ventures using the equity method of accounting, and the related advances to joint ventures and interest income on the advances, are included in the consolidated and combined carve-out financial statements. The combined carve-out financial statements prior to August 13, 2014, also include allocations of certain administrative expenses. | |||||
Included in the combined carve-out equity as of August 12, 2014, were amounts related to promissory notes and related accrued interest due to Höegh LNG. Höegh LNG’s receivables for the promissory notes and related accrued interest of the Partnership’s subsidiaries were contributed to the Partnership as part of the Formation transactions. Refer to note 3 for additional discussion of the contribution. As a result, the liabilities of the Partnership’s subsidiaries are eliminated on consolidation since they were no longer external liabilities to the Partnership. Accordingly, this is equivalent to not transferring the subsidiaries’ liabilities to the Partnership. Therefore, the corresponding amounts have been eliminated for the Partnership’s opening equity position as of August 12, 2014. Details of the liabilities eliminated are as follows: | |||||
As of | |||||
August 12, | |||||
(in thousands of U.S. dollars) | 2014 | ||||
Accrued interest on $48.5 million Promissory note due to Höegh LNG transferred to Partnership | $ | -1,684 | |||
Accrued interest on $101.5 million Promissory note due to Höegh LNG transferred to Partnership | -2,947 | ||||
$40.0 million Promissory note and accrued interest due to Höegh LNG transferred to Partnership | -41,168 | ||||
Elimination to equity as of August 12, 2014 | $ | 45,799 | |||
It has been determined that PT Hoegh LNG Lampung, 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 and combined carve-out financial statements. Dividends may only be paid if the retained earnings are positive under Indonesian law and requirements are fulfilled under the Lampung facility. As of March 31, 2015, PT Hoegh LNG Lampung has negative retained earnings and therefore cannot make dividend payments under Indonesia law. Under the Lampung facility, there are limitations on cash dividends and loans that can be made to the Partnership. Refer to note 9. | |||||
In addition, the Partnership has determined that the two joint ventures, SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., are VIEs since each entity did not have a sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support at the time of its initial investment. The entities have been financed with third party debt and subordinated shareholders loans. The Partnership is not the primary beneficiary, as the Partnership cannot make key operating decisions considered to be most significant to the VIEs, but has joint control with the other equity holders. Therefore, the joint ventures are accounted for under the equity method of accounting as the Partnership has significant influence. The Partnership’s carrying value is recorded in advances to joint ventures and accumulated losses of joint ventures in the consolidated and combined carve-out balance sheets. For SRV Joint Gas Ltd., the Partnership had a receivable for the advances of $9.1 million and $9.8 million, respectively, and the Partnership’s accumulated losses or its share of net liabilities were $29.4 million and $28.4 million, respectively, as of March 31, 2015 and December 31, 2014. The Partnership’s carrying value for SRV Joint Gas Two Ltd., consists of a receivable for the advances of $8.5 million and $9.1 million, respectively, and the Partnership’s accumulated losses or its share of net liabilities were $32.4 million and $31.2 million, respectively, as of March 31, 2015 and December 31, 2014 . The major reason that the Partnership’s accumulated losses in the joint ventures are net liabilities is due to the fair value adjustments for the interest rate swaps recorded as liabilities on the combined balance sheets of SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. 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 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. 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 Policy [Policy Text Block] | b. | Significant accounting policies | |||
The accounting policies used in the preparation of the unaudited condensed interim consolidated and combined carve-out financial statements are consistent with those applied in the audited consolidated and combined carve-out financial statements for the year ended December 31, 2014 included in the Partnership’s Annual Report. | |||||
New Accounting Pronouncements, Policy [Policy Text Block] | c. | Recent accounting pronouncements | |||
There are no recent accounting pronouncements, whose adoption had a material impact on the consolidated and combined carve-out financial statements for the three months ended March 31, 2015. The following recent accounting pronouncements are effective for future periods. | |||||
In February 2015, the Financial Accounting Standards Board (“FASB”) issued revised guidance for consolidation; Amendments to the Consolidation Analysis. The new guidance requires that entities re-evaluate their consolidation conclusions for their variable interests in other legal entities. The amendments are effective for annual and interim periods beginning after December 31, 2015. The Partnership is assessing what impact, if any, the adoption of this guidance will have on the consolidated and combined carve-out financial position, results of operations and cash flows. | |||||
In April 2015, the FASB issued revised guidance for the classification of debt issuance cost; Simplifying the Presentation of Debt Issuance Cost. Under the new guidance, deferred debt issuance cost will no longer be classified as assets but presented as a direct deduction from the carrying amount of the associated debt in the balance sheet. The presentation in the balance sheet will be adjusted on a retrospective basis. The amendments are effective for annual and interim periods beginning after December 31, 2015 and early adoption is permitted. Implementation of the revised guidance will result in a change in the classification of the deferred debt issuance cost on the Partnership’s consolidated and combined carve-out balance sheet. | |||||
Description_of_business_Tables
Description of business (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Schedule Of Entities [Table Text Block] | The following table lists the entities included in these consolidated and combined carve-out financial statements and their purpose as of March 31, 2015. | |||||
Jurisdiction of | ||||||
Name | Incorporation | 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 GDF Suez Neptune | ||||
SRV Joint Gas Two Ltd. (50% owned) (2) | Cayman Islands | Owns GDF Suez Cape Ann | ||||
(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 and combined carve-out 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_policie2
Significant accounting policies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Accounting Policies [Abstract] | |||||
Elimination Of Equity [Table Text Block] | Details of the liabilities eliminated are as follows: | ||||
As of | |||||
August 12, | |||||
(in thousands of U.S. dollars) | 2014 | ||||
Accrued interest on $48.5 million Promissory note due to Höegh LNG transferred to Partnership | $ | -1,684 | |||
Accrued interest on $101.5 million Promissory note due to Höegh LNG transferred to Partnership | -2,947 | ||||
$40.0 million Promissory note and accrued interest due to Höegh LNG transferred to Partnership | -41,168 | ||||
Elimination to equity as of August 12, 2014 | $ | 45,799 | |||
Formation_transactions_and_Ini1
Formation transactions and Initial Public Offering (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Partners' Capital Notes [Abstract] | |||||
Schedule of Proceeds From Initial Public Offering And Application Of Funds [Table Text Block] | Proceeds from IPO and application of funds | ||||
(in thousands of U.S. dollars) | |||||
Gross proceeds from IPO | $ | 220,800 | |||
Underwriters’ discounts, structuring fees and incremental direct IPO expenses | -17,333 | ||||
Net proceeds from IPO | 203,467 | ||||
Loan of initial public offering proceeds to Höegh LNG for demand note | -140,000 | ||||
Cash distribution of initial public offering proceeds to Höegh LNG | -43,467 | ||||
Cash retained for general partnership purposes | $ | 20,000 | |||
Segment_information_Tables
Segment information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables include the results for the segments for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||
Joint venture | Consolidated | |||||||||||||||||||
Majority | FSRUs | Total | and combined | |||||||||||||||||
held | (proportional | Segment | Elimin- | carve-out | ||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | ations | reporting | ||||||||||||||
Time charter revenues | $ | 11,535 | 10,169 | — | 21,704 | -10,169 | $ | 11,535 | ||||||||||||
Construction contract revenues | — | — | — | — | — | — | ||||||||||||||
Total revenues | 11,535 | 10,169 | — | 21,704 | 11,535 | |||||||||||||||
Operating expenses | -2,795 | -2,135 | -1,564 | -6,494 | 2,135 | -4,359 | ||||||||||||||
Construction contract expenses | — | — | — | — | — | — | ||||||||||||||
Equity in earnings of joint ventures | — | — | — | — | -2,122 | -2,122 | ||||||||||||||
Segment EBITDA | 8,740 | 8,034 | -1,564 | 15,210 | ||||||||||||||||
Depreciation and amortization | -8 | -2,177 | — | -2,185 | 2,177 | -8 | ||||||||||||||
Operating income (loss) | 8,732 | 5,857 | -1,564 | 13,025 | 5,046 | |||||||||||||||
Gain (loss) on derivative instruments | 121 | -3,932 | — | -3,811 | 3,932 | 121 | ||||||||||||||
Other financial income (expense), net | -4,701 | -4,047 | 2,129 | -6,619 | 4,047 | -2,572 | ||||||||||||||
Income (loss) before tax | 4,152 | -2,122 | 565 | 2,595 | — | 2,595 | ||||||||||||||
Income tax expense | -177 | — | — | -177 | — | -177 | ||||||||||||||
Net income (loss) | $ | 3,975 | -2,122 | 565 | 2,418 | — | $ | 2,418 | ||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||
Joint venture | Consolidated | |||||||||||||||||||
Majority | FSRUs | Total | and combined | |||||||||||||||||
held | (proportional | Segment | Elimin- | carve-out | ||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | ations | reporting | ||||||||||||||
Time charter revenues | $ | — | 10,249 | — | 10,249 | -10,249 | $ | — | ||||||||||||
Construction contract revenues | 29,127 | — | — | 29,127 | — | 29,127 | ||||||||||||||
Total revenues | 29,127 | 10,249 | — | 39,376 | 29,127 | |||||||||||||||
Operating expenses | -1,331 | -2,145 | -2,817 | -6,293 | 2,145 | -4,148 | ||||||||||||||
Construction contract expenses | -24,661 | — | — | -24,661 | — | -24,661 | ||||||||||||||
Equity in earnings of joint ventures | — | — | — | — | -1,671 | -1,671 | ||||||||||||||
Segment EBITDA | 3,135 | 8,104 | -2,817 | 8,422 | ||||||||||||||||
Depreciation and amortization | -8 | -2,285 | — | -2,293 | 2,285 | -8 | ||||||||||||||
Operating income (loss) | 3,127 | 5,819 | -2,817 | 6,129 | -1,361 | |||||||||||||||
Gain (loss) on derivative instruments | — | -3,154 | — | -3,154 | 3,154 | — | ||||||||||||||
Other financial income (expense), net | -461 | -4,336 | 466 | -4,331 | 4,336 | 5 | ||||||||||||||
Income (loss) before tax | 2,666 | -1,671 | -2,351 | -1,356 | — | -1,356 | ||||||||||||||
Income tax expense | -408 | — | — | -408 | — | -408 | ||||||||||||||
Net income (loss) | $ | 2,258 | -1,671 | -2,351 | -1,764 | — | $ | -1,764 | ||||||||||||
Schedule Of Segment Reporting Information Total Assets By Segment [Table Text Block] | As of March 31, 2015 | |||||||||||||||||||
Joint venture | Consolidated | |||||||||||||||||||
Majority | FSRUs | Total | and combined | |||||||||||||||||
held | (proportional | Segment | Elimin- | carve-out | ||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | ations | reporting | ||||||||||||||
Newbuildings | $ | — | — | — | — | — | $ | — | ||||||||||||
Vessels, net of accumulated depreciation | — | 279,417 | — | 279,417 | -279,417 | — | ||||||||||||||
Net investment in direct financing lease | 294,962 | — | — | 294,962 | — | 294,962 | ||||||||||||||
Advances to joint ventures | — | — | 17,586 | 17,586 | — | 17,586 | ||||||||||||||
Total assets | 378,216 | 300,701 | 184,754 | 863,670 | -300,701 | 562,970 | ||||||||||||||
Accumulated losses of joint ventures | — | — | 50 | 50 | -61,802 | -61,752 | ||||||||||||||
Expenditures for newbuildings, vessels & equipment | 455 | 4,091 | — | 4,546 | -4,091 | 455 | ||||||||||||||
Expenditures for drydocking | — | 221 | — | 221 | -221 | — | ||||||||||||||
Principal repayment direct financing lease | $ | 680 | — | — | 680 | — | $ | 680 | ||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Joint venture | Consolidated | |||||||||||||||||||
Majority | FSRUs | Total | and combined | |||||||||||||||||
held | (proportional | Segment | Elimin- | carve-out | ||||||||||||||||
(in thousands of U.S. dollars) | FSRUs | consolidation) | Other | reporting | ations | reporting | ||||||||||||||
Newbuildings | $ | — | — | — | — | — | $ | — | ||||||||||||
Vessels, net of accumulated depreciation | — | 279,670 | — | 279,670 | -279,670 | — | ||||||||||||||
Net investment in direct financing lease | 295,188 | — | — | 295,188 | — | 295,188 | ||||||||||||||
Advances to joint ventures | — | — | 18,952 | 18,952 | — | 18,952 | ||||||||||||||
Total assets | 377,626 | 300,327 | 190,589 | 868,542 | -300,327 | 568,215 | ||||||||||||||
Accumulated losses of joint ventures | — | — | 50 | 50 | -59,680 | -59,630 | ||||||||||||||
Expenditures for newbuildings, vessels & equipment | 172,173 | 2,358 | — | 174,531 | -2,358 | 172,173 | ||||||||||||||
Expenditures for drydocking | — | — | — | — | — | — | ||||||||||||||
Principal repayment direct financing lease | $ | 1,311 | — | — | 1,311 | — | $ | 1,311 | ||||||||||||
Construction_contract_revenues1
Construction contract revenues (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Construction Revenue [Abstract] | ||||||||
Schedule of Construction contract revenues [Table Text Block] | Three months ended | |||||||
March 31, | ||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Construction contract revenue | $ | — | $ | 29,127 | ||||
Construction contract expenses | — | -24,661 | ||||||
Recognized contract margin (loss) | $ | — | $ | 4,466 | ||||
Financial_income_expense_Table
Financial income (expense) (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Nonoperating Income (Expense) [Abstract] | ||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | The components of financial income (expense) are as follows: | |||||||
Three months ended | ||||||||
March 31, | ||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Interest income | $ | 2,427 | $ | 466 | ||||
Interest expense: | ||||||||
Interest expense | -2,854 | -2,209 | ||||||
Commitment fees | -298 | -856 | ||||||
Amortization of debt issuance cost | -747 | -282 | ||||||
Capitalized interest | — | 3,266 | ||||||
Total interest expense | -3,899 | -81 | ||||||
Gain on derivative instruments | 121 | — | ||||||
Other items, net: | ||||||||
Foreign exchange gain (loss) | -426 | -20 | ||||||
Bank charges and fees | -2 | — | ||||||
Withholding tax on interest expense and other | -672 | -360 | ||||||
Total other items, net | -1,100 | -380 | ||||||
Total financial income (expense), net | $ | -2,451 | $ | 5 | ||||
Advances_to_joint_ventures_Tab
Advances to joint ventures (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Investments in and Advances to Affiliates [Table Text Block] | As of | |||||||
March 31, | December 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Current portion of advances to joint ventures | $ | 6,535 | $ | 6,665 | ||||
Long-term advances to joint ventures | 11,051 | 12,287 | ||||||
Advances/shareholder loans to joint ventures | $ | 17,586 | $ | 18,952 | ||||
Longterm_debt_Tables
Long-term debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | As of | |||||||
March 31, | December 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
$ 299 million Lampung facility: | ||||||||
$ 178.6 million Export credit tranche | $ | 164,918 | $ | 168,640 | ||||
$ 58.5 million FSRU tranche | 42,649 | 43,693 | ||||||
Total debt | 207,567 | 212,333 | ||||||
Less: Current portion of long-term debt | -19,062 | -19,062 | ||||||
Long-term debt | $ | 188,505 | $ | 193,271 | ||||
Investments_in_joint_ventures_
Investments in joint ventures (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity Method Investments [Table Text Block] | As of | ||||||||
March 31, | December 31, | ||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | |||||||
Accumulated losses of joint ventures | $ | 61,752 | $ | 59,630 | |||||
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 [Table Text Block] | The following table presents the summarized financial information for 100% of the combined joint ventures on an aggregated basis. | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | |||||||
Time charter revenues | $ | 20,337 | $ | 20,498 | |||||
Total revenues | $ | 20,337 | $ | 20,498 | |||||
Operating expenses | -4,269 | -4,289 | |||||||
Depreciation and amortization | -4,507 | -4,724 | |||||||
Operating income | 11,561 | 11,485 | |||||||
Unrealized gain (loss) on derivative instruments | -7,864 | -6,308 | |||||||
Other financial expense, net | -8,094 | -8,673 | |||||||
Net income (loss) | $ | -4,397 | $ | -3,496 | |||||
Share of joint ventures owned | 50 | % | 50 | % | |||||
Share of joint ventures net income (loss) before eliminations | -2,199 | -1,748 | |||||||
Eliminations | 77 | 77 | |||||||
Equity in earnings (losses) of joint ventures | $ | -2,122 | $ | -1,671 | |||||
As of | |||||||||
March 31, | December 31, | ||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | |||||||
Cash and cash equivalents | $ | 12,190 | $ | 10,719 | |||||
Other current assets | 3,190 | 3,317 | |||||||
Total current assets | 15,380 | 14,036 | |||||||
Restricted cash | 25,104 | 25,104 | |||||||
Vessels, net of accumulated depreciation | 577,235 | 577,897 | |||||||
Other long-term assets | 2,084 | 2,174 | |||||||
Total long-term assets | 604,423 | 605,175 | |||||||
Current portion of long-term debt | 21,091 | 20,768 | |||||||
Amounts and loans due to owners and affiliates | 13,146 | 14,516 | |||||||
Derivative financial instruments | 23,869 | 23,887 | |||||||
Other current liabilities | 11,456 | 8,278 | |||||||
Total current liabilities | 69,562 | 67,449 | |||||||
Long-term debt | 495,973 | 501,369 | |||||||
Loans due to owners and affiliates | 22,101 | 24,575 | |||||||
Derivate financial liabilities | 109,791 | 101,910 | |||||||
Other long-term liabilities | 27,477 | 24,612 | |||||||
Total long-term liabilities | 655,342 | 652,466 | |||||||
Net liabilities | $ | -105,101 | $ | -100,704 | |||||
Share of joint ventures owned | 50 | % | 50 | % | |||||
Share of joint ventures net liabilities before eliminations | -52,551 | -50,352 | |||||||
Eliminations | -9,201 | -9,278 | |||||||
Accumulated losses of joint ventures | $ | -61,752 | $ | -59,630 | |||||
Related_party_transactions_Tab
Related party transactions (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Schedule of Related Party Transactions [Table Text Block] | Demand note due from owner | |||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Demand note due from owner | $ | 142,069 | $ | 143,241 | ||||
Amounts, loans and promissory note due to owners and affiliates | ||||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Amounts due to owners and affiliates | $ | 7,291 | $ | 6,019 | ||||
Loans and promissory notes due to owners and affiliates consist of the following: | ||||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Loans and promissory notes due to owners and affiliates | $ | 298 | $ | 467 | ||||
Hoegh LNG and Subsidiaries [Member] | ||||||||
Schedule of Related Party Transactions [Table Text Block] | Amounts included in the consolidated and combined carve-out statements of income for the three months ended March 31, 2015, and 2014 or capitalized in the consolidated and combined carve-out balance sheets as of March 31, 2015 and December 31, 2014 are as follows: | |||||||
Three months ended | ||||||||
Statement of income: | March 31, | |||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Operating expenses | ||||||||
Vessel operating expenses (1) | $ | -1,260 | $ | — | ||||
Hours and overhead (2) | -317 | -672 | ||||||
Allocated administrative expenses (3) | — | -2,965 | ||||||
Construction contract expense: supervision cost (4) | — | -312 | ||||||
Construction contract expense: capitalized interest (5) | — | -601 | ||||||
Financial (income) expense | ||||||||
Interest income from joint ventures and demand note (6) | 2,427 | 466 | ||||||
Interest expense and commitment fees to Höegh LNG (7) | -298 | -81 | ||||||
Total | $ | 552 | $ | -4,165 | ||||
As of | ||||||||
Balance sheet | March 31, | December 31, | ||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Newbuilding | ||||||||
Newbuilding supervision cost (4) | $ | — | $ | 1,228 | ||||
Interest expense capitalized from Höegh LNG (5) | — | 1,464 | ||||||
Total | $ | — | $ | 2,692 | ||||
1) | Vessel operating expenses: A subsidiary of Höegh LNG provides ship management of vessels, including crews and the provision of all other services and supplies. | |||||||
2) | Hours and overhead: Subsidiaries of Höegh LNG provide management, accounting, bookkeeping and administrative support. 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. Subsequent to the closing of the IPO, this includes services under administrative service agreements. | |||||||
3) | Allocated administrative expenses: Until the closing of the IPO on August 12, 2014, administrative expenses of Höegh LNG that could not be attributed to a specific vessel or project based upon the time-write system were allocated to the consolidated and combined carve-out income statement based on the number of vessels, newbuildings and certain business development projects of Höegh LNG. For the period from January 1, 2014 to August 12, 2014, the allocated expenses also include cost incurred in preparation for the IPO. | |||||||
4) | Supervision cost: Höegh LNG Fleet Management AS managed the newbuilding process including site supervision including manning for the services and direct accommodation and travel cost. Manning costs are based upon actual hours incurred. Such costs, excluding overhead charges, were capitalized as part of the cost of the newbuilding and included in the construction contract expense for the Mooring. | |||||||
5) | Interest expense capitalized from Höegh LNG and affiliates: As described under 7) below, Höegh LNG and its affiliates provided funding for the PGN FSRU Lampung and the Mooring (a component of the construction contract expense), which qualify under US GAAP as capitalized interest for the construction in progress. | |||||||
6) | Interest income from joint ventures and demand note: 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. In the consolidated and combined carve-out statements of cash flows, the interest paid from joint ventures is treated as a return on investment and included in net cash flows from operating activities. Interest income also includes interest on the $140 million demand note due from Höegh LNG. Refer to “Demand note due from owner” below. | |||||||
7) | Interest expense and commitment fees to Höegh LNG and affiliates: Höegh LNG and its affiliates provided loans and promissory notes and intercompany funding for the construction of the PGN FSRU Lampung, the construction contract expense of the Mooring. Subsequent to the closing of the IPO, commitment fees are due on the $85 million revolving credit facility. Refer to “Amounts, loans and promissory notes due to owners and affiliates” below. Refer to 5) above which describes the interest expense, which was capitalized. | |||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | 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. | |||||||||||||||
As of | As of | |||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
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 | $ | 35,762 | 35,762 | 30,477 | 30,477 | ||||||||||
Restricted cash | 1 | 31,116 | 31,116 | 37,119 | 31,119 | |||||||||||
Derivative financial instruments | 2 | -11,367 | -11,367 | -9,220 | -9,220 | |||||||||||
Other: | ||||||||||||||||
Advances (shareholder loans) to joint ventures | 2 | 17,586 | 18,186 | 18,952 | 19,629 | |||||||||||
Demand note due from owner | 2 | 142,069 | 142,069 | 143,241 | 143,241 | |||||||||||
Current amounts due to owners and affiliates | 2 | -7,291 | -7,291 | -6,019 | -6,019 | |||||||||||
Loans and promissory notes due to owners and affiliates | 2 | -298 | -298 | -467 | -467 | |||||||||||
$299 million Lampung facility | 2 | $ | -207,567 | -209,796 | -212,333 | -214,636 | ||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table contains a summary of the loan receivables by type of borrower and the method by which the credit quality is monitored on a quarterly basis: | |||||||||||||||
As of | ||||||||||||||||
Class of Financing Receivables | Credit Quality | March 31, | December 31, | |||||||||||||
(in thousands of U.S. dollars) | Indicator | Grade | 2015 | 2014 | ||||||||||||
Advances/loans to joint ventures | Payment activity | Performing | $ | 17,586 | $ | 18,952 | ||||||||||
Demand note due from owner | Payment activity | Performing | $ | 142,069 | $ | 143,241 | ||||||||||
Risk_management_and_concentrat1
Risk management and concentrations of risk (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||
Schedule of Interest Rate Derivatives [Table Text Block] | Interest rate swaps are utilized to exchange a receipt of floating interest for a payment of fixed interest to reduce the exposure to interest rate variability on its outstanding floating-rate debt. As of March 31, 2015 and December 31, 2014, there are interest rate swap agreements on the Lampung facility floating rate debt that are designated as cash flow hedges for accounting purposes. As of March 31, 2015, the following interest rate swap agreements were outstanding: | ||||||||||||||
(in thousands of U.S. dollars) | Interest | Notional | Fair | Term | Fixed | ||||||||||
rate | amount | value | interest | ||||||||||||
index | carrying | rate (1) | |||||||||||||
amount | |||||||||||||||
liability | |||||||||||||||
LIBOR-based debt | |||||||||||||||
Interest rate swaps (2) | LIBOR | $ | 207,567 | -11,367 | Sep-26 | 2.8 | % | ||||||||
1) Excludes the margins paid on the floating-rate debt. | |||||||||||||||
2) All interest rate swaps are U.S. dollar denominated and principal amount reduces quarterly. | |||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the consolidated and combined carve-out balance sheets. | ||||||||||||||
Current | Long-term | ||||||||||||||
liabilities: | liabilities: | ||||||||||||||
derivative | derivative | ||||||||||||||
financial | financial | ||||||||||||||
(in thousands of U.S. dollars) | instruments | instruments | |||||||||||||
As of March 31, 2015 | |||||||||||||||
Interest rate swaps | $ | -4,482 | $ | -6,885 | |||||||||||
As of December 31, 2014 | |||||||||||||||
Interest rate swaps | $ | -4,676 | $ | -4,544 | |||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | The following effects of cash flow hedges relating to interest rate swaps are included in gain on derivative financial instruments in the consolidated and combined carve-out statements of income for the three months ended March 31, 2015. There were no realized or unrealized gains or losses on derivative financial instruments for the three months ended March 31, 2014. | ||||||||||||||
Three months ended | |||||||||||||||
March 31, 2015 | |||||||||||||||
Realized | Unrealized | ||||||||||||||
gains | gains | ||||||||||||||
(in thousands of U.S. dollars) | (losses) | (losses) | Total | ||||||||||||
Interest rate swaps: | |||||||||||||||
Ineffective portion of cash flow hedge | $ | — | — | $ | — | ||||||||||
Amortization of amount excluded from hedge effectiveness | — | 335 | 335 | ||||||||||||
Reclassification from accumulated other comprehensive income | — | -214 | -214 | ||||||||||||
Gain on derivative financial instruments | $ | — | 121 | $ | 121 | ||||||||||
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income and changes in accumulated other comprehensive income (“OCI”) in the consolidated and combined carve-out statements of changes in partners’ capital/ owner’s equity is as follows for the periods ended and as of March 31, 2015 and 2014 included in the consolidated and combined carve-out statements of other comprehensive income. | ||||||||||||||
Cash Flow Hedge | |||||||||||||||
(in thousands of U.S. dollars) | Before | Tax | Net of tax | Accumulated | |||||||||||
tax gains | benefit | OCI | |||||||||||||
(losses) | (expense) | ||||||||||||||
Balance as of December 31, 2014 | $ | -10,159 | 1,890 | -8,269 | $ | -8,269 | |||||||||
Effective portion of unrealized loss on cash flow hedge | -2,481 | 620 | -1,861 | -1,861 | |||||||||||
Reclassification of amortization of cash flow hedge to earnings | 214 | -53 | 161 | 161 | |||||||||||
Other comprehensive income for period | -2,267 | 567 | -1,700 | -1,700 | |||||||||||
Balance as of March 31, 2015 | $ | -12,426 | 2,457 | -9,969 | $ | -9,969 | |||||||||
Cash Flow Hedge | |||||||||||||||
(in thousands of U.S. dollars) | Before | Tax | Net of tax | Accumulated | |||||||||||
tax gains | benefit | OCI | |||||||||||||
(losses) | (expense) | ||||||||||||||
Balance as of December 31, 2013 | $ | — | — | — | $ | — | |||||||||
Effective portion of unrealized loss on cash flow hedge | -3,466 | 866 | -2,600 | -2,600 | |||||||||||
Reclassification of amortization of cash flow hedge to earnings | — | — | — | — | |||||||||||
Other comprehensive income for period | -3,466 | 866 | -2,600 | -2,600 | |||||||||||
Balance as of March 31, 2014 | $ | -3,466 | 866 | -2,600 | $ | -2,600 | |||||||||
Supplemental_cash_flow_informa1
Supplemental cash flow information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
(in thousands of U.S. dollars) | 2015 | 2014 | ||||||
Supplemental disclosure of non-cash financing activities: | ||||||||
Non-cash capital contribution from conversion of debt | $ | — | $ | 101,500 | ||||
Earning_per_unit_and_cash_dist1
Earning per unit and cash distributions (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Earnings Per Unit [Abstract] | |||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculation of basic and diluted earnings per unit are presented below | ||||
Three months | |||||
ended | |||||
March 31, | |||||
(in thousands of U.S. dollars, except unit and per unit numbers) | 2015 | ||||
Post IPO net income attributable to the unitholders of Höegh LNG Partners LP | $ | 2,418 | |||
Less: Dividends paid or to be paid (1) | -8,880 | ||||
Under (over) distributed earnings | -6,462 | ||||
Under (over) distributed earnings attributable to: | |||||
Common units public | -2,711 | ||||
Common units Höegh LNG | -520 | ||||
Subordinated units Höegh LNG | -3,231 | ||||
-6,462 | |||||
Basic and diluted weighted average units outstanding (in thousands) | |||||
Common units public | 11,040 | ||||
Common units Höegh LNG | 2,116 | ||||
Subordinated units Höegh LNG | 13,156 | ||||
Basic and diluted earnings per unit: | |||||
Common units public | $ | 0.09 | |||
Common units Höegh LNG | $ | 0.09 | |||
Subordinated units Höegh LNG | $ | 0.09 | |||
-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. | ||||
Description_of_business_Detail
Description of business (Details) | 3 Months Ended | |
Mar. 31, 2015 | ||
Hoegh LNG Partners LP [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Entity Incorporation, State Country Name | Marshall Islands | |
Purpose | Holding Company | |
Hoegh LNG Partners Operating LLC [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Entity Incorporation, State Country Name | Marshall Islands | |
Purpose | Holding Company | |
Hoegh LNG Services Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Entity Incorporation, State Country Name | United Kingdom | |
Purpose | Administration Services Company | |
Hoegh LNG Lampung Pte. Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Entity Incorporation, State Country Name | Singapore | |
Purpose | Owns 49% of PT Hoegh LNG Lampung | |
PT Hoegh LNG Lampung [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Entity Incorporation, State Country Name | Indonesia | [1] |
Purpose | Owns PGN FSRU Lampung | [1] |
SRV Joint Gas Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Entity Incorporation, State Country Name | Cayman Islands | [2] |
Purpose | Owns GDF Suez Neptune | [2] |
SRV Joint Gas Two Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Entity Incorporation, State Country Name | Cayman Islands | [2] |
Purpose | Owns GDF Suez Cape Ann | [2] |
[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 and combined carve-out financial statements. | |
[2] | The remaining 50% interest in each joint venture is owned by Mitsui O.S.K. Lines, Ltd. and Tokyo LNG Tanker Co. |
Description_of_business_Detail1
Description of business (Details Textual) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Aug. 12, 2014 | Apr. 28, 2014 |
Hoegh LNG Holdings Ltd [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Limited Partners' Capital Account, Units Issued | 2,116,060 | ||
Hoegh LNG Holdings Ltd [Member] | Subordinated units [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Limited Partners' Capital Account, Units Issued | 13,156,060 | ||
Hoegh LNG Partners LP [Member] | Partnership Interest [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Percentage of Partnership Interest | 58.00% | ||
Hoegh LNG Partners Operating LLC [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | ||
Hoegh LNG Services Ltd [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | ||
Hoegh LNG Lampung Pte. Ltd [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | ||
PT Hoegh LNG Lampung [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.00% | ||
SRV Joint Gas Ltd [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
SRV Joint Gas Two Ltd [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
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 | $203.50 | ||
Percentage of Partnership Interest | 42.00% | ||
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% |
Significant_accounting_policie3
Significant accounting policies (Details) (Consolidation, Eliminations [Member], USD $) | Aug. 12, 2014 |
In Thousands, unless otherwise specified | |
Eliminated Liabilities [Line Items] | |
Eliminations Of Equity | $45,799 |
Promissory note 1 [Member] | |
Eliminated Liabilities [Line Items] | |
Note Accrued Interest Transferred to Partnership | -1,684 |
Promissory note 2 [Member] | |
Eliminated Liabilities [Line Items] | |
Note Accrued Interest Transferred to Partnership | -2,947 |
Promissory note 3 [Member] | |
Eliminated Liabilities [Line Items] | |
Note Accrued Interest Transferred to Partnership | ($41,168) |
Significant_accounting_policie4
Significant accounting policies (Details Textual) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Aug. 12, 2014 |
In Millions, unless otherwise specified | |||
SRV Joint Gas Ltd [Member] | |||
Eliminated Liabilities [Line Items] | |||
Advances to Affiliate | $9.10 | $9.80 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net | 29.4 | 28.4 | |
SRV Joint Gas Two Ltd [Member] | |||
Eliminated Liabilities [Line Items] | |||
Advances to Affiliate | 8.5 | 9.1 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net | 32.4 | 31.2 | |
Promissory note 1 [Member] | |||
Eliminated Liabilities [Line Items] | |||
Debt Instrument, Face Amount | 48.5 | ||
Promissory note 2 [Member] | |||
Eliminated Liabilities [Line Items] | |||
Debt Instrument, Face Amount | 101.5 | ||
Promissory note 3 [Member] | |||
Eliminated Liabilities [Line Items] | |||
Debt Instrument, Face Amount | $40 |
Formation_transactions_and_Ini2
Formation transactions and Initial Public Offering (Details) (IPO [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Aug. 12, 2014 |
IPO [Member] | |
Formation Transactions and Initial Public Offering [Line Items] | |
Gross proceeds from IPO | $220,800 |
Underwriters’ discounts, structuring fees and incremental direct IPO expenses | -17,333 |
Net proceeds from IPO | 203,467 |
Loan of initial public offering proceeds to Höegh LNG for demand note | -140,000 |
Cash distribution of initial public offering proceeds to Höegh LNG | -43,467 |
Cash retained for general partnership purposes | $20,000 |
Formation_transactions_and_Ini3
Formation transactions and Initial Public Offering (Details Textual) (USD $) | 0 Months Ended |
Aug. 12, 2014 | |
IPO [Member] | |
Formation Transactions and Initial Public Offering [Line Items] | |
Limited Partners' Capital Account, Units Issued | 11,040,000 |
Exercise Of Option, Additional Common Units | 1,440,000 |
Proceeds from Issuance Initial Public Offering | $203,467,000 |
Percentage of Partnership Interest | 42.00% |
Gross Proceeds From Initial Public offering | 220,800,000 |
Net Cash Proceeds Retained From Initial Public offering | 20,000,000 |
Sale of Stock, Price Per Share | $20 |
Payments to Fund Long-term Loans to Related Parties | 140,000,000 |
Hoegh LNG Holdings Ltd [Member] | |
Formation Transactions and Initial Public Offering [Line Items] | |
Limited Partnership Contribution On Promissory Note Receivables And Accrued Interest | 40,000,000 |
Limited Partners Capital Account, Units Outstanding | 2,116,060 |
Percentage of incentive distribution rights | 100.00% |
Limited Partners' Capital Account, Units Issued | 2,116,060 |
Cash Available for Distributions | 43,500,000 |
Incentive Distribution Right Target Distribution Per Unit | $0.39 |
Related Party Transaction, Rate | 5.88% |
Hoegh LNG Holdings Ltd [Member] | Subordinated Unit [Member] | |
Formation Transactions and Initial Public Offering [Line Items] | |
Limited Partners Capital Account, Units Outstanding | 13,156,060 |
Limited Partners' Capital Account, Units Issued | 13,156,060 |
Hoegh LNG Partners LP [Member] | Partnership Interest [Member] | |
Formation Transactions and Initial Public Offering [Line Items] | |
Percentage of Partnership Interest | 58.00% |
Revolving Credit Facility [Member] | Hoegh LNG Holdings Ltd [Member] | |
Formation Transactions and Initial Public Offering [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $85,000,000 |
Segment_information_Details
Segment information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Time charter revenues | $11,535 | $0 | |
Construction contract revenues | 0 | 29,127 | |
Total revenues | 11,535 | 29,127 | |
Operating expenses | -4,359 | -4,148 | |
Construction contract expenses | 0 | -24,661 | |
Equity in earnings of joint ventures | -2,122 | -1,671 | |
Depreciation and amortization | -8 | -8 | |
Operating income (loss) | 5,046 | -1,361 | |
Gain (loss) on derivative instruments | 121 | 0 | |
Other financial income (expense), net | -2,572 | 5 | |
Income (loss) before tax | 2,595 | -1,356 | |
Income tax expense | -177 | -408 | |
Net income (loss) | 2,418 | -1,764 | |
Newbuildings | 0 | 0 | |
Vessels, net of accumulated depreciation | 0 | 0 | |
Net investment in direct financing lease | 294,962 | 295,188 | |
Advances to joint ventures | 17,586 | 18,952 | |
Total assets | 562,970 | 568,215 | |
Accumulated losses of joint ventures | 61,752 | 59,630 | |
Expenditures for newbuildings, vessels & equipment | 455 | 172,173 | |
Expenditures for drydocking | 0 | 0 | |
Principal repayment direct financing lease | 680 | 1,311 | |
Majority Held FSRUs [Member] | |||
Time charter revenues | 11,535 | 0 | |
Construction contract revenues | 0 | 29,127 | |
Total revenues | 11,535 | 29,127 | |
Operating expenses | -2,795 | -1,331 | |
Construction contract expenses | 0 | -24,661 | |
Equity in earnings of joint ventures | 0 | 0 | |
Segment EBITDA | 8,740 | 3,135 | |
Depreciation and amortization | -8 | -8 | |
Operating income (loss) | 8,732 | 3,127 | |
Gain (loss) on derivative instruments | 121 | 0 | |
Other financial income (expense), net | -4,701 | -461 | |
Income (loss) before tax | 4,152 | 2,666 | |
Income tax expense | -177 | -408 | |
Net income (loss) | 3,975 | 2,258 | |
Newbuildings | 0 | 0 | |
Vessels, net of accumulated depreciation | 0 | 0 | |
Net investment in direct financing lease | 294,962 | 295,188 | |
Advances to joint ventures | 0 | 0 | |
Total assets | 378,216 | 377,626 | |
Accumulated losses of joint ventures | 0 | 0 | |
Expenditures for newbuildings, vessels & equipment | 455 | 172,173 | |
Expenditures for drydocking | 0 | 0 | |
Principal repayment direct financing lease | 680 | 1,311 | |
Joint Venture FSRUs [Member] | |||
Time charter revenues | 10,169 | 10,249 | |
Construction contract revenues | 0 | 0 | |
Total revenues | 10,169 | 10,249 | |
Operating expenses | -2,135 | -2,145 | |
Construction contract expenses | 0 | 0 | |
Equity in earnings of joint ventures | 0 | 0 | |
Segment EBITDA | 8,034 | 8,104 | |
Depreciation and amortization | -2,177 | -2,285 | |
Operating income (loss) | 5,857 | 5,819 | |
Gain (loss) on derivative instruments | -3,932 | -3,154 | |
Other financial income (expense), net | -4,047 | -4,336 | |
Income (loss) before tax | -2,122 | -1,671 | |
Income tax expense | 0 | 0 | |
Net income (loss) | -2,122 | -1,671 | |
Newbuildings | 0 | 0 | |
Vessels, net of accumulated depreciation | 279,417 | 279,670 | |
Net investment in direct financing lease | 0 | 0 | |
Advances to joint ventures | 0 | 0 | |
Total assets | 300,701 | 300,327 | |
Accumulated losses of joint ventures | 0 | 0 | |
Expenditures for newbuildings, vessels & equipment | 4,091 | 2,358 | |
Expenditures for drydocking | 221 | 0 | |
Principal repayment direct financing lease | 0 | 0 | |
Other Segments [Member] | |||
Time charter revenues | 0 | 0 | |
Construction contract revenues | 0 | 0 | |
Total revenues | 0 | 0 | |
Operating expenses | -1,564 | -2,817 | |
Construction contract expenses | 0 | 0 | |
Equity in earnings of joint ventures | 0 | 0 | |
Segment EBITDA | -1,564 | -2,817 | |
Depreciation and amortization | 0 | 0 | |
Operating income (loss) | -1,564 | -2,817 | |
Gain (loss) on derivative instruments | 0 | 0 | |
Other financial income (expense), net | 2,129 | 466 | |
Income (loss) before tax | 565 | -2,351 | |
Income tax expense | 0 | 0 | |
Net income (loss) | 565 | -2,351 | |
Newbuildings | 0 | 0 | |
Vessels, net of accumulated depreciation | 0 | 0 | |
Net investment in direct financing lease | 0 | 0 | |
Advances to joint ventures | 17,586 | 18,952 | |
Total assets | 184,754 | 190,589 | |
Accumulated losses of joint ventures | 50 | 50 | |
Expenditures for newbuildings, vessels & equipment | 0 | 0 | |
Expenditures for drydocking | 0 | 0 | |
Principal repayment direct financing lease | 0 | 0 | |
Operating Segments [Member] | |||
Time charter revenues | 21,704 | 10,249 | |
Construction contract revenues | 0 | 29,127 | |
Total revenues | 21,704 | 39,376 | |
Operating expenses | -6,494 | -6,293 | |
Construction contract expenses | 0 | -24,661 | |
Equity in earnings of joint ventures | 0 | 0 | |
Segment EBITDA | 15,210 | 8,422 | |
Depreciation and amortization | -2,185 | -2,293 | |
Operating income (loss) | 13,025 | 6,129 | |
Gain (loss) on derivative instruments | -3,811 | -3,154 | |
Other financial income (expense), net | -6,619 | -4,331 | |
Income (loss) before tax | 2,595 | -1,356 | |
Income tax expense | -177 | -408 | |
Net income (loss) | 2,418 | -1,764 | |
Newbuildings | 0 | 0 | |
Vessels, net of accumulated depreciation | 279,417 | 279,670 | |
Net investment in direct financing lease | 294,962 | 295,188 | |
Advances to joint ventures | 17,586 | 18,952 | |
Total assets | 863,670 | 868,542 | |
Accumulated losses of joint ventures | 50 | 50 | |
Expenditures for newbuildings, vessels & equipment | 4,546 | 174,531 | |
Expenditures for drydocking | 221 | 0 | |
Principal repayment direct financing lease | 680 | 1,311 | |
Eliminations [Member] | |||
Time charter revenues | -10,169 | -10,249 | |
Construction contract revenues | 0 | 0 | |
Operating expenses | 2,135 | 2,145 | |
Construction contract expenses | 0 | 0 | |
Equity in earnings of joint ventures | -2,122 | -1,671 | |
Depreciation and amortization | 2,177 | 2,285 | |
Gain (loss) on derivative instruments | 3,932 | 3,154 | |
Other financial income (expense), net | 4,047 | 4,336 | |
Income (loss) before tax | 0 | 0 | |
Income tax expense | 0 | 0 | |
Net income (loss) | 0 | 0 | |
Newbuildings | 0 | 0 | |
Vessels, net of accumulated depreciation | -279,417 | -279,670 | |
Net investment in direct financing lease | 0 | 0 | |
Advances to joint ventures | 0 | 0 | |
Total assets | -300,701 | -300,327 | |
Accumulated losses of joint ventures | -61,802 | -59,680 | |
Expenditures for newbuildings, vessels & equipment | -4,091 | -2,358 | |
Expenditures for drydocking | -221 | 0 | |
Principal repayment direct financing lease | $0 | $0 |
Segment_information_Details_Te
Segment information (Details Textual) (GDF Suez Cape Ann [Member], GDF Suez Neptune [Member]) | Mar. 31, 2015 | Mar. 31, 2014 |
GDF Suez Cape Ann [Member] | GDF Suez Neptune [Member] | ||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Construction_contract_revenues2
Construction contract revenues (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Construction Contract Revenues [Line Items] | ||
Construction contract revenue | $0 | $29,127 |
Construction contract expenses | 0 | -24,661 |
Recognized contract margin (loss) | $0 | $4,466 |
Construction_contract_revenues3
Construction contract revenues (Details Textual) (Mooring Project [Member]) | Dec. 31, 2014 | Mar. 31, 2014 |
Mooring Project [Member] | ||
Construction Contract Revenues [Line Items] | ||
Percentage Of Project Completed | 100.00% | 81.00% |
Financial_income_expense_Detai
Financial income (expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest income | $2,427 | $466 |
Interest expense: | ||
Interest expense | -2,854 | -2,209 |
Commitment fees | -298 | -856 |
Amortization of debt issuance cost | -747 | -282 |
Capitalized interest | 0 | 3,266 |
Total interest expense | -3,899 | -81 |
Gain on derivative instruments | 121 | 0 |
Other items, net: | ||
Foreign exchange gain (loss) | -426 | -20 |
Bank charges and fees | -2 | 0 |
Withholding tax on interest expense and other | -672 | -360 |
Total other items, net | -1,100 | -380 |
Total financial income (expense), net | ($2,451) | $5 |
Income_tax_Details_Textual
Income tax (Details Textual) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Expense (Benefit) | $177 | $408 |
Deferred Income Tax Expense (Benefit) | $567 | $866 |
Advances_to_joint_ventures_Det
Advances to joint ventures (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Advances to Joint Ventures [Line Items] | ||
Current portion of advances to joint ventures | $6,535 | $6,665 |
Long-term advances to joint ventures | 11,051 | 12,287 |
Advances/shareholder loans to joint ventures | $17,586 | $18,952 |
Advances_to_joint_ventures_Det1
Advances to joint ventures (Details Textual) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $17,586 | $18,952 |
SRV Joint Gas Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | 9,100 | 9,800 |
SRV Joint Gas Two Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $8,500 | $9,100 |
Longterm_debt_Details
Long-term debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt | $207,567 | $212,333 |
Less: Current portion of long-term debt | -19,062 | -19,062 |
Long-term debt | 188,505 | 193,271 |
Export credit tranche [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 164,918 | 168,640 |
FSRU tranche [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $42,649 | $43,693 |
Longterm_debt_Details_Textual
Long-term debt (Details Textual) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Lampung Facility [Member] | |
Debt Instrument [Line Items] | |
Long-term Line of Credit | 299 |
Export credit tranche [Member] | Lampung Facility [Member] | |
Debt Instrument [Line Items] | |
Long-term Line of Credit | 178.6 |
FSRU tranche [Member] | Lampung Facility [Member] | |
Debt Instrument [Line Items] | |
Long-term Line of Credit | 58.5 |
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 beginning from the second quarterly repayment date of the export credit tranche; Guarantors book equity must be greater than the higher of (i) $200 million and (ii) 25% of total assets; and Guarantors free liquid assets (cash and cash equivalents or available draws on credit facilities) must be greater than $20 million. |
Secured Debt [Member] | Old Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Covenant Description | 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 |
Investments_in_joint_ventures_1
Investments in joint ventures (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ||
Accumulated losses of joint ventures | $61,752 | $59,630 |
Investments_in_joint_ventures_2
Investments in joint ventures (Details 1) (USD $) | 3 Months Ended | 5 Months Ended | 7 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Aug. 12, 2014 | Dec. 31, 2013 |
Time charter revenues | $11,535 | $0 | |||
Total revenues | 11,535 | 29,127 | |||
Operating expenses | -4,359 | -4,148 | |||
Depreciation and amortization | -8 | -8 | |||
Operating income | 5,046 | -1,361 | |||
Gain (loss) on derivative instruments | 121 | 0 | |||
Post IPO net income attributable to the unitholders of Höegh LNG Partners LP | 2,418 | -1,764 | 13,195 | -10,786 | |
Equity in earnings (losses) of joint ventures | -2,122 | -1,671 | |||
Cash and cash equivalents | 35,762 | 4,957 | 30,477 | 108 | |
Total current assets | 210,398 | 213,139 | |||
Restricted cash | 15,116 | 15,184 | |||
Vessels, net of accumulated depreciation | 0 | 0 | |||
Other long-term assets | 20,623 | 21,626 | |||
Total long-term assets | 352,572 | 355,076 | |||
Current portion of long-term debt | 19,062 | 19,062 | |||
Amounts and loans due to owners and affiliates | 298 | 467 | |||
Derivative financial instruments | 4,482 | 4,676 | |||
Total current liabilities | 53,428 | 51,124 | |||
Long-term debt | 188,505 | 193,271 | |||
Derivate financial liabilities | 6,885 | 4,544 | |||
Other long-term liabilities | 19,988 | 22,206 | |||
Total long-term liabilities | 277,130 | 279,651 | |||
Accumulated losses of joint ventures | -61,752 | -59,630 | |||
SRV Joint Gas Ltd and SRV Joint Gas Two Ltd [Member] | |||||
Time charter revenues | 20,337 | 20,498 | |||
Total revenues | 20,337 | 20,498 | |||
Operating expenses | -4,269 | -4,289 | |||
Depreciation and amortization | -4,507 | -4,724 | |||
Operating income | 11,561 | 11,485 | |||
Gain (loss) on derivative instruments | -7,864 | -6,308 | |||
Other financial expense, net | -8,094 | -8,673 | |||
Post IPO net income attributable to the unitholders of Höegh LNG Partners LP | -4,397 | -3,496 | |||
Share of joint ventures owned | 50.00% | 50.00% | 50.00% | ||
Share of joint ventures net income (loss) before eliminations | -2,199 | -1,748 | |||
Eliminations | 77 | 77 | |||
Equity in earnings (losses) of joint ventures | -2,122 | -1,671 | |||
Cash and cash equivalents | 12,190 | 10,719 | |||
Other current assets | 3,190 | 3,317 | |||
Total current assets | 15,380 | 14,036 | |||
Restricted cash | 25,104 | 25,104 | |||
Vessels, net of accumulated depreciation | 577,235 | 577,897 | |||
Other long-term assets | 2,084 | 2,174 | |||
Total long-term assets | 604,423 | 605,175 | |||
Current portion of long-term debt | 21,091 | 20,768 | |||
Amounts and loans due to owners and affiliates | 13,146 | 14,516 | |||
Derivative financial instruments | 23,869 | 23,887 | |||
Other current liabilities | 11,456 | 8,278 | |||
Total current liabilities | 69,562 | 67,449 | |||
Long-term debt | 495,973 | 501,369 | |||
Loans due to owners and affiliates | 22,101 | 24,575 | |||
Derivate financial liabilities | 109,791 | 101,910 | |||
Other long-term liabilities | 27,477 | 24,612 | |||
Total long-term liabilities | 655,342 | 652,466 | |||
Net liabilities | -105,101 | -100,704 | |||
Share of joint ventures net liabilities before eliminations | -52,551 | -50,352 | |||
Eliminations | -9,201 | -9,278 | |||
Accumulated losses of joint ventures | ($61,752) | ($59,630) |
Investments_in_joint_ventures_3
Investments in joint ventures (Details Textual) | Mar. 31, 2015 |
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% |
Related_party_transactions_Det
Related party transactions (Details) (USD $) | 3 Months Ended | 5 Months Ended | 7 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Aug. 12, 2014 | ||
OPERATING EXPENSES | ||||||
Vessel operating expenses | ($2,260) | $0 | ||||
Financial (income) expense | ||||||
Interest income from joint ventures and demand note | 2,427 | 466 | ||||
Interest expense and commitment fees to Höegh LNG | -3,899 | -81 | ||||
Total income (expense), net | 2,418 | -1,764 | 13,195 | -10,786 | ||
Hoegh LNG and Subsidiaries [Member] | ||||||
OPERATING EXPENSES | ||||||
Vessel operating expenses | -1,260 | [1] | 0 | [1] | ||
Hours and overhead | -317 | [2] | -672 | [2] | ||
Allocated administrative expenses | 0 | [3] | -2,965 | [3] | ||
Construction contract expense: supervision cost | 0 | [4] | -312 | [4] | ||
Construction contract expense: capitalized interest | 0 | [5] | -601 | [5] | ||
Financial (income) expense | ||||||
Interest income from joint ventures and demand note | 2,427 | [6] | 466 | [6] | ||
Interest expense and commitment fees to Höegh LNG | -298 | [7] | -81 | [7] | ||
Total income (expense), net | $552 | ($4,165) | ||||
[1] | Vessel operating expenses: A subsidiary of Höegh LNG provides ship management of vessels, including crews and the provision of all other services and supplies. | |||||
[2] | Hours and overhead: Subsidiaries of Höegh LNG provide management, accounting, bookkeeping and administrative support. 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. Subsequent to the closing of the IPO, this includes services under administrative service agreements. | |||||
[3] | Allocated administrative expenses: Until the closing of the IPO on August 12, 2014, administrative expenses of Höegh LNG that could not be attributed to a specific vessel or project based upon the time-write system were allocated to the consolidated and combined carve-out income statement based on the number of vessels, newbuildings and certain business development projects of Höegh LNG. For the period from January 1, 2014 to August 12, 2014, the allocated expenses also include cost incurred in preparation for the IPO. | |||||
[4] | Supervision cost: Höegh LNG Fleet Management AS managed the newbuilding process including site supervision including manning for the services and direct accommodation and travel cost. Manning costs are based upon actual hours incurred. Such costs, excluding overhead charges, were capitalized as part of the cost of the newbuilding and included in the construction contract expense for the Mooring. | |||||
[5] | Interest expense capitalized from Höegh LNG and affiliates: As described under 7) below, Höegh LNG and its affiliates provided funding for the PGN FSRU Lampung and the Mooring (a component of the construction contract expense), which qualify under US GAAP as capitalized interest for the construction in progress. | |||||
[6] | Interest income from joint ventures and demand note: 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. In the consolidated and combined carve-out statements of cash flows, the interest paid from joint ventures is treated as a return on investment and included in net cash flows from operating activities. Interest income also includes interest on the $140 million demand note due from Höegh LNG. Refer to “Demand note due from owner†below. | |||||
[7] | Interest expense and commitment fees to Höegh LNG and affiliates: Höegh LNG and its affiliates provided loans and promissory notes and intercompany funding for the construction of the PGN FSRU Lampung, the construction contract expense of the Mooring. Subsequent to the closing of the IPO, commitment fees are due on the $85 million revolving credit facility. Refer to “Amounts, loans and promissory notes due to owners and affiliates†below. Refer to 5) above which describes the interest expense, which was capitalized. |
Related_party_transactions_Det1
Related party transactions (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Related Party Transaction [Line Items] | ||||
Total | $0 | $0 | ||
Hoegh LNG and Subsidiaries [Member] | ||||
Related Party Transaction [Line Items] | ||||
Newbuilding supervision cost | 0 | [1] | 1,228 | [1] |
Interest expense capitalized from Höegh LNG | 0 | [2] | 1,464 | [2] |
Total | $0 | $2,692 | ||
[1] | Supervision cost: Höegh LNG Fleet Management AS managed the newbuilding process including site supervision including manning for the services and direct accommodation and travel cost. Manning costs are based upon actual hours incurred. Such costs, excluding overhead charges, were capitalized as part of the cost of the newbuilding and included in the construction contract expense for the Mooring. | |||
[2] | Interest expense capitalized from Höegh LNG and affiliates: As described under 7) below, Höegh LNG and its affiliates provided funding for the PGN FSRU Lampung and the Mooring (a component of the construction contract expense), which qualify under US GAAP as capitalized interest for the construction in progress. |
Related_party_transactions_Det2
Related party transactions (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Demand note due from owner | $142,069 | $143,241 |
Related_party_transactions_Det3
Related party transactions (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Amounts due to owners and affiliates | $7,291 | $6,019 |
Related_party_transactions_Det4
Related party transactions (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Loans and promissory notes due to owners and affiliates | $298 | $467 |
Related_party_transactions_Det5
Related party transactions (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Indemnification Under the Omnibus Agreement | $3,100,000 | |
Due from Officers or Stockholders, Current | 142,069,000 | 143,241,000 |
Revolving Credit Facility [Member] | ||
Related Party Transaction [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus a margin of 4.0%. | LIBOR plus a margin of 4.0%. |
Line of Credit Facility, Current Borrowing Capacity | 85,000,000 | 85,000,000 |
Line of Credit Facility, Commitment Fee Percentage | 1.40% | 1.40% |
Non Budgeted Expenses [Member] | ||
Related Party Transaction [Line Items] | ||
Indemnification Under the Omnibus Agreement | 3,100,000 | |
Warranty Provision [Member] | ||
Related Party Transaction [Line Items] | ||
Indemnification Under the Omnibus Agreement | 2,000,000 | |
Omnibus Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Environmental Indemnifications | 5,000,000 | |
Environmental Indemnifications, Description | No claim may be made unless the aggregate dollar amount of all claims exceeds $500, in which case Hegh LNG is liable for claims only to the extent such aggregate amount exceeds $500. | |
Hoegh LNG and Subsidiaries [Member] | ||
Related Party Transaction [Line Items] | ||
Interest Income, Related Party | 2,069,000 | 3,241,000 |
Related Party Transaction, Rate | 5.88% | 5.88% |
Due from Officers or Stockholders, Current | $140,000,000 | $140,000,000 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $35,762 | $30,477 | $4,957 | $108 |
Restricted cash | 31,116 | 37,119 | ||
Derivative financial instruments | -11,367 | -9,220 | ||
Advances (shareholder loans) to joint ventures | 17,586 | 18,952 | ||
Demand note due from owner | 142,069 | 143,241 | ||
Current amounts due to owners and affiliates | -7,291 | -6,019 | ||
Loans and promissory notes due to owners and affiliates | -298 | -467 | ||
Lampung facility | -207,567 | -212,333 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 35,762 | 30,477 | ||
Restricted cash | 31,116 | 31,119 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative financial instruments | -11,367 | -9,220 | ||
Advances (shareholder loans) to joint ventures | 18,186 | 19,629 | ||
Demand note due from owner | 142,069 | 143,241 | ||
Current amounts due to owners and affiliates | -7,291 | -6,019 | ||
Loans and promissory notes due to owners and affiliates | -298 | -467 | ||
Lampung facility | ($209,796) | ($214,636) |
Financial_Instruments_Details_
Financial Instruments (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Advances/ loans to joint ventures | $17,586 | $18,952 |
Demand note due from owner | 142,069 | 143,241 |
Payment activity [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Advances/ loans to joint ventures | 17,586 | 18,952 |
Demand note due from owner | $142,069 | $143,241 |
Risk_management_and_concentrat2
Risk management and concentrations of risk (Details) (Interest Rate Swap [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Description of Interest Rate Derivative Activities | LIBOR | [1] |
Derivative, Notional Amount | $207,567 | [1] |
Derivative Liability, Fair Value, Gross Liability | ($11,367) | [1] |
Derivative, Description of Terms | Sep-26 | [1] |
Derivative, Fixed Interest Rate | 2.80% | [1],[2] |
[1] | All interest rate swaps are U.S. dollar denominated and principal amount reduces quarterly. | |
[2] | Excludes the margins paid on the floating-rate debt. |
Risk_management_and_concentrat3
Risk management and concentrations of risk (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | ($4,482) | ($4,676) |
Derivative Liability, Noncurrent | -6,885 | -4,544 |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | -4,482 | -4,676 |
Derivative Liability, Noncurrent | ($6,885) | ($4,544) |
Risk_management_and_concentrat4
Risk management and concentrations of risk (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Gain on derivative financial instruments | $121 | $0 |
Interest Rate Swap [Member] | ||
Ineffective portion of cash flow hedge | 0 | |
Amortization of amount excluded from hedge effectiveness | 335 | |
Reclassification from accumulated other comprehensive income | -214 | |
Gain on derivative financial instruments | 121 | |
Realized Gains (Losses) [Member] | Interest Rate Swap [Member] | ||
Ineffective portion of cash flow hedge | 0 | |
Amortization of amount excluded from hedge effectiveness | 0 | |
Reclassification from accumulated other comprehensive income | 0 | |
Gain on derivative financial instruments | 0 | |
Unrealized Gains (Losses) [Member] | Interest Rate Swap [Member] | ||
Ineffective portion of cash flow hedge | 0 | |
Amortization of amount excluded from hedge effectiveness | 335 | |
Reclassification from accumulated other comprehensive income | -214 | |
Gain on derivative financial instruments | $121 |
Risk_management_and_concentrat5
Risk management and concentrations of risk (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Beginning Balance, Before tax gains (losses) | ($10,159) | $0 |
Effective portion of unrealized loss on cash flow hedge,Before tax gains (losses) | -2,481 | -3,466 |
Reclassification of amortization of cash flow hedge to earnings ,Before tax gains (losses) | 214 | 0 |
Other comprehensive income for period, Before tax gains (losses) | -2,267 | -3,466 |
Ending Balance, Before tax gains (losses) | -12,426 | -3,466 |
Beginning Balance, Tax benefit (expense) | 1,890 | 0 |
Effective portion of unrealized loss on cash flow hedge, Tax benefit (expense) | 620 | 866 |
Reclassification of amortization of cash flow hedge to earnings, Tax benefit (expense) | -53 | 0 |
Other comprehensive income for period, Tax benefit (expense) | 567 | 866 |
Ending Balance, Tax benefit (expense) | 2,457 | 866 |
Beginning Balance, Net of Tax | -8,269 | 0 |
Effective portion of unrealized loss on cash flow hedge, Net of tax | -1,861 | -2,600 |
Reclassification of amortization of cash flow hedge to earnings, Net of tax | 161 | 0 |
Other comprehensive income for period, Net of tax | -1,700 | -2,600 |
Ending Balance, Net of Tax | -9,969 | -2,600 |
Beginning Balance, Accumulated OCI | -8,269 | 0 |
Effective portion of unrealized loss on cash flow hedge, Accumulated OCI | -1,861 | -2,600 |
Reclassification of amortization of cash flow hedge to earnings, Accumulated OCI | 161 | 0 |
Other comprehensive income (loss) for period, Accumulated OCI | -1,700 | -2,600 |
Ending Balance, Accumulated OCI | ($9,969) | ($2,600) |
Commitments_and_contingencies_
Commitments and contingencies (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | |
Contract Revenue Cost | $0 | $24,661,000 | |||
Indemnification Under the Omnibus Agreement | 3,100,000 | ||||
Contractual Obligation | 500,000 | ||||
Construction Contracts [Member] | |||||
Indemnification Under the Omnibus Agreement | 2,000,000 | ||||
PGN [Member] | |||||
Contract Revenue Cost | 7,100,000 | ||||
Indemnification Under the Omnibus Agreement | $2,000,000 | $6,700,000 | $6,500,000 |
Supplemental_cash_flow_informa2
Supplemental cash flow information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Supplemental disclosure of non-cash financing activities: | ||
Non-cash capital contribution from conversion of debt | $0 | $101,500 |
Earning_per_unit_and_cash_dist2
Earning per unit and cash distributions (Details) (USD $) | 3 Months Ended | 5 Months Ended | 7 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Aug. 12, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Post IPO net income attributable to the unitholders of Höegh LNG Partners LP | $2,418 | ($1,764) | $13,195 | ($10,786) | |
Less: Dividends paid or to be paid | -8,880 | [1] | |||
Distributed Earnings | -6,462 | ||||
Basic and diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 26,312,120 | ||||
Common units public [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Distributed Earnings | -2,711 | ||||
Basic and diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 11,040,000 | ||||
Basic and diluted earnings per unit: | |||||
Earnings Per Share, Basic and Diluted | $0.09 | ||||
Common units Höegh LNG [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Distributed Earnings | -520 | ||||
Basic and diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 2,116,000 | ||||
Basic and diluted earnings per unit: | |||||
Earnings Per Share, Basic and Diluted | $0.09 | ||||
Subordinated units Höegh LNG [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Distributed Earnings | ($3,231) | ||||
Basic and diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 13,156,000 | ||||
Basic and diluted earnings per unit: | |||||
Earnings Per Share, Basic and Diluted | $0.09 | ||||
[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. |
Earning_per_unit_and_cash_dist3
Earning per unit and cash distributions (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 26,312,120 | |
First Target Distribution [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Incentive Distribution Right Target Distribution Per Unit | $0.39 | |
Distribution Percentage To Holders Of Incentive Distribution Rights | 100.00% | |
Second Target Distribution [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Incentive Distribution Right Target Distribution Per Unit | $0.42 | |
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 | $0.51 | |
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% | |
Minimum Quarterly Distribution [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Incentive Distribution Right Target Distribution Per Unit | $0.34 | $1.35 |
Common units public [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 11,040,000 | |
Incentive Distribution Right Target Distribution Per Unit | $0.34 | |
Distribution Percentage To Holders Of Incentive Distribution Rights | 100.00% | |
Subordinated units Höegh LNG [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 13,156,000 | |
Incentive Distribution Right Target Distribution Per Unit | $0.34 | |
Distribution Percentage To Holders Of Incentive Distribution Rights | 100.00% | |
Common units Höegh LNG [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 2,116,000 |
Subsequent_events_Details_Text
Subsequent events (Details Textual) (Subsequent Event [Member], USD $) | 0 Months Ended |
15-May-15 | |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $0.34 |
Distribution Made To Limited Partner Annualized Basis Per Unit | $1.35 |