Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2015shares | |
Document Information [Line Items] | |
Entity Registrant Name | Hoegh LNG Partners LP |
Entity Central Index Key | 1,603,016 |
Current Fiscal Year End Date | --12-31 |
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 | Jun. 30, 2015 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2,015 |
CONDENSED INTERIM CONSOLIDATED
CONDENSED INTERIM CONSOLIDATED AND COMBINED CARVE-OUT STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
REVENUES | ||||
Time charter revenues | $ 11,065 | $ 0 | $ 22,577 | $ 0 |
Construction contract revenues | 0 | 8,084 | 0 | 38,839 |
Other revenue | 0 | 241 | 0 | 474 |
Total revenues | 11,065 | 8,325 | 22,577 | 39,313 |
OPERATING EXPENSES | ||||
Vessel operating expenses | (1,599) | (759) | (3,859) | (759) |
Construction contract expenses | 0 | (6,668) | 0 | (33,482) |
Administrative expenses | (2,215) | (2,806) | (4,314) | (6,986) |
Depreciation and amortization | (8) | (972) | (16) | (980) |
Total operating expenses | (3,822) | (11,205) | (8,189) | (42,207) |
Equity in earnings (losses) of joint ventures | 11,481 | (2,125) | 9,359 | (3,796) |
Operating income (loss) | 18,724 | (5,005) | 23,747 | (6,690) |
FINANCIAL INCOME (EXPENSE), NET | ||||
Interest income | 2,425 | 435 | 4,852 | 901 |
Interest expense | (3,710) | (2,256) | (7,510) | (2,354) |
Gain (loss) on derivative instruments | (8) | 0 | 113 | 0 |
Other items, net | (934) | (631) | (2,034) | (1,102) |
Total financial income (expense), net | (2,227) | (2,452) | (4,579) | (2,555) |
Income (loss) before tax | 16,497 | (7,457) | 19,168 | (9,245) |
Income tax expense | (59) | (200) | (152) | (233) |
Net income (loss) | $ 16,438 | $ (7,657) | 19,016 | $ (9,478) |
Common units public [Member] | ||||
FINANCIAL INCOME (EXPENSE), NET | ||||
Net income (loss) | $ 7,979 | |||
Earnings per unit | ||||
Earnings Per Share (basic and diluted) | $ 0.62 | $ 0 | $ 0.72 | $ 0 |
Common units Hoegh LNG [Member] | ||||
FINANCIAL INCOME (EXPENSE), NET | ||||
Net income (loss) | $ 1,529 | |||
Earnings per unit | ||||
Earnings Per Share (basic and diluted) | 0.62 | 0 | $ 0.72 | 0 |
Subordinated units [Member] | ||||
FINANCIAL INCOME (EXPENSE), NET | ||||
Net income (loss) | $ 9,508 | |||
Earnings per unit | ||||
Earnings Per Share (basic and diluted) | $ 0.62 | $ 0 | $ 0.72 | $ 0 |
CONDENSED INTERIM CONSOLIDATED3
CONDENSED INTERIM CONSOLIDATED AND COMBINED CARVE-OUT STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 6 Months Ended | 7 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Aug. 12, 2014 | |
Net income (loss) | $ 16,438 | $ (7,657) | $ 19,016 | $ (9,478) | ||
Unrealized gains (losses) on cash flow hedge | 2,981 | (3,850) | 714 | (7,316) | ||
Income tax benefit (expense) | (118) | 963 | (203) | 1,829 | ||
Other comprehensive income (loss) | 2,863 | (2,887) | $ (2,275) | 511 | (5,487) | $ (5,900) |
Comprehensive income (loss) | $ 19,301 | $ (10,544) | $ 19,527 | $ (14,965) |
CONDENSED INTERIM CONSOLIDATED4
CONDENSED INTERIM CONSOLIDATED AND COMBINED CARVE-OUT BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 29,373 | $ 30,477 |
Restricted cash | 9,463 | 21,935 |
Trade receivables | 6,189 | 6,189 |
Demand note due from owner | 142,089 | 143,241 |
Advances to joint ventures | 6,624 | 6,665 |
Deferred debt issuance cost | 2,532 | 2,574 |
Current portion of net investment in direct financing lease | 3,051 | 2,894 |
Current deferred tax asset | 340 | 343 |
Prepaid expenses and other receivables | 3,016 | 564 |
Total current assets | 202,677 | 214,882 |
Long-term assets | ||
Restricted cash | 15,116 | 15,184 |
Other equipment | 39 | 54 |
Advances to joint ventures | 9,731 | 12,287 |
Deferred debt issuance cost | 10,491 | 11,556 |
Net investment in direct financing lease | 291,644 | 292,469 |
Long-term deferred tax asset | 1,668 | 1,667 |
Other long-term assets | 13,904 | 15,449 |
Total long-term assets | 342,593 | 348,666 |
Total assets | 545,270 | 563,548 |
Current liabilities | ||
Current portion of long-term debt | 19,062 | 19,062 |
Trade payables | 1,152 | 864 |
Amounts due to owners and affiliates | 2,290 | 6,019 |
Loans and promissory notes due to owners and affiliates | 301 | 467 |
Value added and withholding tax liability | 6,978 | 3,066 |
Derivative financial instruments | 4,406 | 4,676 |
Accrued liabilities and other payables | 13,190 | 13,365 |
Total current liabilities | 47,379 | 47,519 |
Long-term liabilities | ||
Accumulated losses of joint ventures | 50,270 | 59,630 |
Long-term debt | 183,740 | 193,271 |
Derivative financial instruments | 3,988 | 4,544 |
Other long-term liabilities | 17,998 | 22,206 |
Total long-term liabilities | 255,996 | 279,651 |
Total liabilities | 303,375 | 327,170 |
EQUITY | ||
Total Partners’ capital | 249,559 | 244,553 |
Accumulated other comprehensive income (loss) | (7,664) | (8,175) |
Total equity | 241,895 | 236,378 |
Total liabilities and equity | 545,270 | 563,548 |
Common units public [Member] | ||
EQUITY | ||
Total Partners’ capital | 207,531 | 207,004 |
Total equity | 207,531 | 207,004 |
Common units Hoegh LNG [Member] | ||
EQUITY | ||
Total Partners’ capital | 5,822 | 5,202 |
Total equity | 5,822 | 5,202 |
Subordinated units [Member] | ||
EQUITY | ||
Total Partners’ capital | 36,206 | 32,347 |
Total equity | $ 36,206 | $ 32,347 |
CONDENSED INTERIM CONSOLIDATED5
CONDENSED INTERIM CONSOLIDATED AND COMBINED CARVE-OUT STATEMENTS OF CHANGES IN PARTNERS' CAPITAL/OWNER'S EQUITY - USD ($) $ in Thousands | Total | Owner's Equity [Member] | Common units public [Member] | Common units Hoegh LNG [Member] | Subordinated units [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2013 | $ (48,096) | $ (48,096) | $ 0 | $ 0 | $ 0 | $ 0 |
Carve-out net loss (January 1- August 12, 2014) | (11,941) | (11,941) | 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 | 24,524 | 30,424 | 0 | 0 | 0 | (5,900) |
Elimination of equity (note 2) | 45,799 | 45,799 | 0 | 0 | 0 | 0 |
Allocation of partnership capital to unitholders August 12, 2014 | 0 | (76,223) | 0 | 10,561 | 65,662 | 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 |
Post-initial public offering net income (note 3) | 13,255 | 0 | 5,562 | 1,066 | 6,627 | 0 |
Cash distributions to unitholders | (4,826) | 0 | (2,025) | (388) | (2,413) | |
Other Comprehensive loss | (2,275) | 0 | 0 | 0 | 0 | (2,275) |
Distributions to owner, net | (99) | 0 | 0 | (14) | (85) | 0 |
Balance at Dec. 31, 2014 | 236,378 | 0 | 207,004 | 5,202 | 32,347 | (8,175) |
Net Income | 19,016 | 0 | 7,979 | 1,529 | 9,508 | 0 |
Cash distributions to unitholders | (17,760) | 0 | (7,452) | (1,428) | (8,880) | 0 |
Cash contribution from Höegh LNG | 3,682 | 0 | 0 | 510 | 3,172 | 0 |
Other Comprehensive loss | 511 | 0 | 0 | 0 | 0 | 511 |
Contributions from owner | 67 | 0 | 0 | 9 | 58 | 0 |
Balance at Jun. 30, 2015 | $ 241,895 | $ 0 | $ 207,531 | $ 5,822 | $ 36,206 | $ (7,664) |
CONDENSED INTERIM CONSOLIDATED6
CONDENSED INTERIM CONSOLIDATED AND COMBINED CARVE-OUT STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 19,016 | $ (9,478) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 16 | 980 |
Equity in losses (earnings) of joint ventures | (9,359) | 3,796 |
Changes in accrued interest income on advances to joint ventures and demand note | 706 | (579) |
Amortization and write off of deferred debt issuance cost | 1,296 | 2,399 |
Changes in accrued interest expense | (105) | 1,006 |
Refundable value added tax on import | 0 | (26,298) |
Net currency exchange losses (gains) | 529 | 0 |
Unrealized loss (gain) on financial instruments | (113) | 0 |
Other adjustments | (135) | 0 |
Changes in working capital: | ||
Restricted cash | 12,012 | 0 |
Trade receivables | 0 | (6,276) |
Unbilled construction contract income | 0 | 52,246 |
Bunkers | 0 | (2,931) |
Prepaid expenses and other receivables | 2,011 | (1,845) |
Trade payables | 287 | 424 |
Amounts due to owners and affiliates | (3,729) | 8,202 |
Value added and withholding tax liability | (570) | 9,963 |
Accrued liabilities and other payables | (3,135) | 2,802 |
Net cash provided by (used in) operating activities | 18,727 | 34,411 |
INVESTING ACTIVITIES | ||
Expenditure for newbuildings and other equipment | (757) | (169,798) |
Receipts from repayment of principal on advances to joint ventures | 3,043 | 3,983 |
Receipts from repayment of principal on direct financing lease | 1,425 | 0 |
(Increase) decrease in restricted cash | 0 | 10,700 |
Net cash provided by (used in) investing activities | 3,711 | (155,115) |
FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 0 | 257,099 |
Repayment of long-term debt | (9,531) | 0 |
Repayment of loans and promissory notes due to owners and affiliates | 0 | (46,741) |
Contributions from (distributions to) owner | 0 | (10,962) |
Customer loan for funding of value added liability on import | 0 | 26,298 |
Payment of debt issuance cost | 0 | (8,236) |
Cash distributions to unitholders | (17,761) | 0 |
Proceeds from indemnifications received from Hoegh LNG | 3,682 | 0 |
(Increase) decrease in restricted cash | 68 | 0 |
Net cash provided by (used in) financing activities | (23,542) | 217,458 |
Increase (decrease) in cash and cash equivalents | (1,104) | 96,754 |
Cash and cash equivalents, beginning of period | 30,477 | 108 |
Cash and cash equivalents, end of period | $ 29,373 | $ 96,862 |
Description of business
Description of business | 6 Months Ended |
Jun. 30, 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 PGN FSRU Lampung GDF Suez Neptune GDF Suez Cape Ann On August 12, 2014, the Partnership completed its IPO. Prior to the closing of the IPO, Höegh LNG contributed to the Partnership all of its equity interests and loans and promissory notes due to it and affiliates in each of the entities owning the GDF Suez Neptune GDF Suez Cape Ann PGN FSRU Lampung 1,440,000 11,040,000 203.5 2,116,060 13,156,060 58 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 GDF Suez Neptune GDF Suez Cape Ann PGN FSRU Lampung The GDF Suez Neptune GDF Suez Cape Ann PGN FSRU Lampung 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 policies
Significant accounting policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Sig n ificant 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/A filed with the Securities and Exchange Commission (“SEC”) on November 30, 2015 (the “Form 20-F/A”). 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 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. 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 June 30, 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 9.8 29.4 28.4 8.5 9.1 32.4 31.2 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 Form 20-F/A. 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 June 30, 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. d. Restatement of previously announced results Certain of the unaudited condensed interim consolidated and combined carve-out financial statements for the three and six months ended June 30, 2015 and 2014 have been restated for the items set forth below from the Partnership’s previously announced results for the three months ended June 30, 2015 and 2014 that were included in a press release dated August 27, 2015 (the “original press release”) furnished to the SEC on a Form 6-K on August 27, 2015. See the Form 20-F/A filed with the SEC on November 30, 2015 for further information. 1. Value added taxes (“VAT”), withholding taxes (“WHT”) and other The Partnership announced in August 2015 that it was reviewing its accounting treatment for certain Indonesian value added tax (“VAT”) and Indonesian withholding tax (“WHT”) transactions for the years ended December 31, 2014 and 2013. All of the VAT and WHT restatement adjustments relate to the Partnership’s subsidiary, PT Hoegh LNG Lampung. In completing the review and reconciliation procedures during 2015, certain VAT balances recorded to the consolidated and combined carve-out balance sheet raised concerns about the appropriateness of the accounting treatment for VAT. The review and reconciliation procedures were subsequently expanded to include WHT balances. In the course of its review, the Partnership also completed a detailed analysis to confirm that all VAT and WHT transactions had been properly reported to Indonesian tax authorities. Errors in accounting treatment of VAT and WHT In Indonesia, the general rule is that VAT paid on supplier invoices is creditable (“creditable VAT”) against VAT received on customer invoices in determining the net amount of VAT due to the Indonesian tax authorities. The proper accounting treatment for creditable VAT paid on supplier invoices is to record it as a receivable on the balance sheet since it reduces the VAT liability due to the tax authorities on VAT received for customer invoices. However, prior to the start-up of revenue generating activities, VAT on most supplier invoices is non-creditable (“non-creditable VAT”). As a result, non-creditable VAT paid to the tax authorities on supplier invoices cannot subsequently be credited against VAT received on customer invoices. The proper accounting is to record non-creditable VAT as part of the expense of the associated supplier invoices or to capitalize it as a component of the asset to which it relates. Non-creditable VAT was incorrectly recorded as a VAT receivable in the Partnership’s consolidated and combined carve-out balance sheets as of June 30, 2015 and December 31, 2014. Non-creditable VAT should have been recorded as components of vessel operating expenses, construction contract expenses, administrative expenses, newbuilding (net investment in direct financing lease) or deferred debt issuance cost in the periods incurred. In addition, due to the understanding reached with the charterer releasing it from the obligation to pay the charter invoices for September and October 2014 (refer to note 14), a correction to expense the VAT associated with the invoices that were not payable from the charterer was required. Following PT Hoegh LNG Lampung’s inquiry process with the Indonesian tax authorities on the proper basis for applying VAT to the construction contract invoices related to the Mooring, an adjustment of approximately $6.2 million as of June 30, 2014 was recorded to increase the trade receivables from the charterer and VAT liabilities due to the Indonesian tax authorities on the consolidated and combined carve-out balance sheet. In Indonesia, WHT is due to be paid on supplier invoices from foreign vendors providing services, goods and financing depending upon applicable tax treaties. The proper accounting treatment is to record WHT as an expense of the period, as other items, net, or a component of the capitalized asset (newbuilding (net investment in direct financing lease) or deferred debt issuance cost). Certain tax amounts are also required to be withheld by the charterer on payments of the time charter /customer invoices. The Partnership’s accounting policy is to record its revenues net of taxes. WHT paid on supplier invoices and withheld on time charter invoices was incorrectly recorded to a liability account in the consolidated and combined carve-out balance sheet. PT Hoegh LNG Lampung uses an external service provider to complete filings for VAT and WHT to the Indonesian tax authorities as a basis for settlement of its VAT and WHT liabilities. The accuracy of the filings submitted to the tax authorities is dependent on PT Hoegh LNG Lampung providing the external service provider with transaction information for the VAT and WHT computation. In the course of its review, the Partnership identified certain VAT and WHT amounts that had not been previously reported. Amendments to the previous VAT and WHT filings have been made to the Indonesian tax authorities and the impact, including penalties imposed by the Indonesian tax authorities, recorded as part of the restatement adjustments for the three and six months ended June 30, 2014. Related adjustments As a consequence of the reimbursable nature of certain VAT and WHT under PT Hoegh LNG Lampung’s time charter, related adjustments are required for revenue recognition as follows: Related adjustments to revenues : Under terms of its time charter, PT Hoegh LNG Lampung is reimbursed by the charterer for Indonesian corporate income taxes, WHT on certain interest expenses, certain services and dividends and all Indonesian taxes, including VAT, related to the Mooring. During 2014, the charterer was invoiced for an estimate of the reimbursement of applicable taxes (the “Tax element”) which is subject to a final settlement pending an audit process to compare the invoiced Tax element to actual applicable taxes incurred. The revenue on the Tax element was recognized in the consolidated and combined carve-out income statements only to the extent that applicable taxes were identified as incurred during the applicable period. The remaining invoiced Tax element was deferred pending the completion of the audit process. As of November Adjustments to revenue that were associated with Indonesian VAT and WHT related to the Mooring have been accrued and included in the construction contract revenues. All other adjustments to revenue are included in the time charter revenues or other revenues. As a result of restating the total estimated construction contract expenses and revenues, the computation of the percentage of completion method has been restated for the three and six months ended June 30, 2014. For additional information on the percentage of completion method, refer to note 2 c. significant accounting policies on construction revenues and related expenses in the audited restated consolidated and combined carve-out financial statements for the year ended December 31, 2014 included in the Form 20-F/A. Reclassification and tax adjustments consolidated and combined carve-out statements of income has changed for the three and six months ended June 2. Indirect adjustments related to VAT and WHT In addition to the related adjustments described above, the restatement adjustments related to VAT and WHT impacted the capitalized cost of PT Hoegh LNG Lampung’s newbuilding (net investment in direct financing lease) and deferred debt issuance cost related to the Lampung facility and the basis for computing the revenue for the direct financing lease and amortization of debt issuance cost. The lease element of PT Hoegh LNG Lampung’s time charter is accounted for as a direct financing lease. As a result of the restatement adjustments described above, the effective interest rate method was recalculated for the revenue for the direct financing lease and for the amortization of the deferred debt issuance cost. The changes in accounting for the resulting amortization of the direct financing lease and the deferred debt issuance cost do not affect or the Partnership’s cash flows or liquidity. The original press release presented the unaudited condensed consolidated and combined carve-out balance sheets as of June 30, 2015 and December 31, 2014 and the unaudited condensed consolidated and combined carve-out statements of income for the three months ended June 30, 2015 and 2014 which are restated in this Form 6-K The Partnership is also presenting the pre-restatement and as restated information for its unaudited condensed consolidated and combined carve-out statements of income and cash flows for the six months ended June 30, 2015 and 2014, as well as its unaudited condensed consolidated and combined carve-out statements of comprehensive income for the three and six months ended June 30, 2015 and 2014, and changes in partners’ capital/owners equity as of June 30, 2015 and December 31, 2014. Three months ended June 30, 2015 Adjustments VAT, As WHT and Indirect (in thousands of U.S. dollars, except per unit amounts) reported other adjustments As restated REVENUES Time charter revenues $ 11,087 (22) $ 11,065 Total revenues 11,087 (22) 11,065 OPERATING EXPENSES Vessel operating expenses (1,599) (1,599) Administrative expenses (2,215) (2,215) Depreciation and amortization (8) (8) Total operating expenses (3,822) (3,822) Equity in earnings (losses) of joint ventures 11,481 11,481 Operating income 18,746 (22) 18,724 FINANCIAL INCOME (EXPENSES), NET Interest income 2,425 2,425 Interest expense (3,734) 24 (3,710) Gain (loss) on derivative financial instruments (8) (8) Other items, net (934) (934) Total financial income (expense), net (2,251) 24 (2,227) Income (loss) before tax 16,495 2 16,497 Income tax expense (179) 120 (59) Net income (loss) $ 16,316 120 2 $ 16,438 Earnings per unit Common unit public (basic and diluted) $ 0.62 $ 0.62 Commn unit Höegh LNG (Basic and diluted) $ 0.62 $ 0.62 Subordinated unit (basic and diluted) $ 0.62 $ 0.62 Six months ended June 30, 2015 Adjustments Pre- VAT, As (in thousands of U.S. dollars, except per unit amounts) restatement WHT and other Indirect adjustments restated REVENUES Time charter revenues $ 22,622 (45) $ 22,577 Total revenues 22,622 (45) 22,577 OPERATING EXPENSES Vessel operating expenses (3,859) (3,859) Administrative expenses (4,314) (4,314) Depreciation and amortization (16) (16) Total operating expenses (8,189) (8,189) Equity in earnings (losses) of joint ventures 9,359 9,359 Operating income 23,792 (45) 23,747 FINANCIAL INCOME (EXPENSES), NET Interest income 4,852 4,852 Interest expense (7,633) 123 (7,510) Gain (loss) on derivative financial instruments 113 113 Other items, net (2,034) (2,034) Total financial income (expense), net (4,702) 123 (4,579) Income (loss) before tax 19,090 78 19,168 Income tax expense (356) 204 (152) Net income (loss) $ 18,734 204 78 $ 19,016 Earnings per unit Common unit public (basic and diluted) $ 0.71 $ 0.72 Common unit Höegh LNG (Basic and diluted) $ 0.71 $ 0.72 Subordinated unit (basic and diluted) $ 0.71 $ 0.72 Three months ended June 30, 2014 Adjustments VAT, As WHT and Indirect As (in thousands of U.S. dollars) reported other adjustments restated REVENUES Construction contract revenues $ 7,485 599 $ 8,084 Other revenue 241 241 Total revenues 7,485 840 8,325 OPERATING EXPENSES Vessel operating expenses (1,145) 386 (759) Construction contract expenses (6,073) (595) (6,668) Administrative expenses (2,362) (444) (2,806) Depreciation and amortization (972) (972) Total operating expenses (10,552) (653) (11,205) Equity in earnings (losses) of joint ventures (2,125) (2,125) Operating income (loss) (5,192) 187 (5,005) FINANCIAL INCOME (EXPENSES), NET Interest income 435 435 Interest expense (2,212) (44) (2,256) Other items, net (512) (120) (631) Total financial income (expense), net (2,289) (120) (44) (2,452) Income (loss) before tax (7,481) 68 (44) (7,457) Income tax expense 175 (375) (200) Net income (loss) $ (7,306) (307) (44) $ (7,657) Six months ended June 30, 2014 Adjustments Vat, WHT Pre- and Indirect As (in thousands of U.S. dollars) restatement other adjustments restated REVENUES Construction contract revenues $ 36,612 2,227 $ 38,839 Other revenue 474 474 Total revenues 36,612 2,701 39,313 OPERATING EXPENSES Vessel operating expenses (1,145) 386 (759) Construction contract expenses (30,734) (2,748) (33,482) Administrative expenses (6,510) (476) (6,986) Depreciation and amortization (980) (980) Total operating expenses (39,369) (2,838) (42,207) Equity in earnings (losses) of joint ventures (3,796) (3,796) Operating income (loss) (6,553) (137) (6,690) FINANCIAL INCOME (EXPENSES), NET Interest income 901 901 Interest expense (2,293) (61) (2,354) Other items, net (892) (210) (1,102) Total financial income (expense), net (2,284) (210) (61) (2,555) Income (loss) before tax (8,837) (347) (61) (9,245) Income tax expense (233) (233) Net income (loss) $ (9,070) (347) (61) $ (9,478) Three months ended June 30, 2015 Adjustments As VAT, WHT Indirect reported and other adjustments As restated Net income $ 16,316 120 2 $ 16,438 Unrealized losses on cash flow hedge 2,981 2,981 Income tax benefit (118) (118) Other comprehensive income 2,981 (118) 2,863 Comprehensive income (loss) $ 19,297 2 2 $ 19,301 Six months ended June 30, 2015 Adjustments VAT, Pre- WHT and Indirect As restatement other adjustments restated Net income $ 18,734 204 78 $ 19,016 Unrealized losses on cash flow hedge 714 714 Income tax benefit (203) (203) Other comprehensive income 714 (203) 511 Comprehensive income (loss) $ 19,448 1 78 $ 19,527 Three months ended June 30, 2014 Adjustments VAT, As WHT and Indirect As reported other adjustments restated Net income (loss) $ (7,306) (307) (44) $ (7,657) Unrealized losses on cash flow hedge (3,850) (3,850) Income tax benefit 963 963 Other comprehensive income (2,887) (2,887) Comprehensive income (loss) $ (10,193) (307) (44) $ (10,544) Six months ended June 30, 2014 Adjustments VAT, Pre- WHT and Indirect As restatement other adjustments restated Net income (loss) $ (9,070) (347) (61) $ (9,478) Unrealized losses on cash flow hedge (7,316) (7,316) Income tax benefit 1,829 1,829 Other comprehensive income (5,487) (5,487) Comprehensive income (loss) $ (14,557) (347) (61) $ (14,965) As of June 30, 2015 Adjustments VAT, WHT As and Indirect As reported other adjustments restated ASSETS Current assets Cash and cash equivalents $ 29,373 $ 29,373 Restricted cash 9,463 9,463 Trade receivables 6,189 6,189 Deferred debt issuance cost 2,561 (29) 2,532 Current portion of net investment in direct financing lease 2,962 134 (45) 3,051 Current deferred tax asset 316 24 340 Prepaid expenses and other receivables 3,222 (206) 3,016 Other current assets 148,713 148,713 Total current assets 196,610 6,112 (45) 202,677 Long-term assets Restricted cash 15,116 15,116 Deferred debt issuance cost 10,367 124 10,491 Net investment in direct financing lease 291,490 154 291,644 Long-term deferred tax asset 1,396 272 1,668 Other long-term assets 20,080 (6,176) 13,904 Other equipment and advances to joint ventures 9,770 9,770 Total long-term assets 348,219 (5,750) 124 342,593 Total assets $ 544,829 362 79 $ 545,270 LIABILITIES AND EQUITY Current liabilities Value added and withholding tax liability 264 6,714 6,978 Accrued liabilities and other payables 18,655 (5,465) 13,190 Other current liabilities 27,211 27,211 Total current liabilities 46,130 1,249 47,379 Total long-term liabilities 255,996 255,996 Total liabilities 302,126 1,249 303,375 Total equity 242,703 (887) 79 241,895 Total liabilities and equity $ 544,829 362 79 $ 545,270 As of December 31, 2014 Adjustments VAT, WHT As and Indirect As reported other adjustments restated ASSETS Current assets Cash and cash equivalents $ 30,477 $ 30,477 Restricted cash 21,935 21,935 Trade receivables 6,189 6,189 Deferred debt issuance cost 2,603 (29) 2,574 Current portion of net investment in direct financing lease 2,809 85 2,894 Current deferred tax asset 318 25 343 Prepaid expenses and other receivables 5,091 (4,527) 564 Other current assets 149,906 149,906 Total current assets 213,139 1,743 214,882 Long-term assets Restricted cash 15,184 15,184 Deferred debt issuance cost 11,974 (343) (75) 11,556 Net investment in direct financing lease 292,379 120 (30) 292,469 Long-term deferred tax asset 1,572 95 1,667 Other long-term assets 21,626 (6,177) 15,449 Other equipment and advances to joint ventures 12,341 12,341 Total long-term assets 355,076 (6,306) (105) 348,666 Total assets $ 568,215 (4,562) (105) $ 563,548 LIABILITIES AND EQUITY Current liabilities Value added and withholding tax liability 835 2,231 3,066 Accrued liabilities and other payables 19,201 (5,836) 13,365 Other current liabilities 31,088 31,088 Total current liabilities 51,124 (3,605) 47,519 Total long-term liabilities 279,651 279,651 Total liabilities 330,775 (3,605) 327,170 Total equity 237,440 (957) (105) 236,378 Total liabilities and equity $ 568,215 (4,562) (105) $ 563,548 The following tables show the effect of the restatement on the Partnership’s condensed consolidated and combined carve-out statements of cash flows Six months ended June 30, 2015 Adjustments VAT, Pre- WHT and Indirect As (in thousands of U.S. dollars) restatement other adjustments restated OPERATING ACTIVITIES Net income (loss) $ 18,734 204 78 $ 19,016 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 16 16 Equity in losses (earnings) of joint ventures (9,359) (9,359) Changes in accrued interest income on advances to joint ventures and demand note 706 706 Amortization and write off of deferred debt issuance cost 1,419 (123) 1,296 Changes in accrued interest expense (105) (105) Net currency exchange losses (gains) 529 529 Unrealized loss (gain) on financial instruments (113) (113) Other adjustments 69 (204) (135) Changes in working capital: Restricted cash 12,012 12,012 Prepaid expenses and other receivables 2,011 2,011 Trade payables 287 287 Amounts due to owners and affiliates (3,729) (3,729) Value added and withholding tax liability (570) (570) Accrued liabilities and other payables (3,135) (3,135) Net cash provided by (used in) operating activities $ 18,772 (45) $ 18,727 Six months ended June 30, 2015 Adjustments VAT, Pre- WHT and Indirect As (in thousands of U.S. dollars) restatement other adjustments restated INVESTING ACTIVITIES Expenditure for newbuildings and other equipment $ (757) $ (757) Receipts from repayment of principal on advances to joint ventures 3,043 3,043 Receipts from repayment of principal on direct financing lease 1,380 45 1,425 Net cash provided by investing activities 3,666 45 3,711 FINANCING ACTIVITIES Repayment of long-term debt (9,531) (9,531) Cash distributions to unitholders (17,761) (17,761) Proceeds from indemnifications received from Höegh LNG 3,682 3,682 (Increase) decrease in restricted cash 68 68 Net cash provided by (used in) financing activities (23,542) (23,542) Increase (decrease) in cash and cash equivalents (1,104) (1,104 Cash and cash equivalents, beginning of period 30,477 30,477 Cash and cash equivalents, end of period $ 29,373 $ 29,373 Six months ended June 30, 2014 Adjustments VAT, Pre- WHT and Indirect As (in thousands of U.S. dollars) restatement other adjustments restated OPERATING ACTIVITIES Net income (loss) $ (9,070) (347) (61) $ (9,478) Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 980 980 Equity in losses (earnings) of joint ventures 3,796 3,796 Changes in accrued interest income on advances to joint ventures and demand note (579) (579) Amortization and write off of deferred debt issuance cost 2,338 61 2,399 Changes in accrued interest expense 1,006 1,006 Refundable value added tax on import (26,298) (26,298) Changes in working capital: Trade receivables (87) (6,189) (6,276) Unbilled construction contract income 54,473 (2,227) 52,246 Bunkers (2,931) (2,931) Prepaid expenses and other receivables (1,845) (1,845) Trade payables 424 424 Amounts due to owners and affiliates 8,202 8,202 Value added and withholding tax liability 1,358 8,605 9,963 Accrued liabilities and other payables 3,259 (457) 2,802 Net cash provided by (used in) operating activities 35,026 (615) 34,411 INVESTING ACTIVITIES Expenditure for newbuildings and other equipment (169,676) (122) (169,798) Receipts from repayment of principal on advances to joint ventures 3,983 3,983 (Increase) decrease in restricted cash 10,700 10,700 Net cash provided by investing activities $ (154,993) (122) $ (155,115) Six months ended June 30, 2014 Adjustments VAT, Pre- WHT and Indirect As (in thousands of U.S. dollars) restatement other adjustments restated FINANCING ACTIVITIES Proceeds from long-term debt $ 257,099 $ 257,099 Repayment of loans and promissory notes due to owners and affiliates (46,741) (46,741) Contributions from (distributions to) owner (10,962) (10,962) Customer loan for funding of value added liability on import 26,298 26,298 Payment of debt issuance cost (8,973) 737 (8,236) Net cash provided by (used in) financing activities 216,721 737 217,458 Increase (decrease) in cash and cash equivalents 96,754 96,754 Cash and cash equivalents, beginning of period 108 108 Cash and cash equivalents, end of period $ 96,862 $ 96,862 Net income (loss) Total equity Three months ended Six months ended As of As of June 30 June 30, June 30, December 31, 2015 2014 2015 2014 2015 2014 As previously reported or pre-restatement $ 16,316 (7,306) 18,734 (9,070) 242,703 $ 237,440 Adjustments: VAT, WHT and other 120 (307) 204 (347) (887) (957) Indirect adjustments 2 (44) 78 (61) 79 (105) As restated $ 16,438 (7,657) 19,016 (9,478) 241,895 $ 236,378 |
Formation transactions and Init
Formation transactions and Initial Public Offering | 6 Months Ended |
Jun. 30, 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 (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 June 30, 2014; Recapitalization of the Partnership (i) The Partnership issued to Höegh LNG 2,116,060 13,156,060 100 0.388125 (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 1,440,000 42 20.00 220.8 203.5 (ii) The Partnership applied the net proceeds of the offering as follows: (i) $ 140 5.88 Independence 20 43.5 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 13,156,060 58 Agreements In connection with the IPO the Partnership entered into several agreements including: (i) A $ 85 (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 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 GDF Suez Cape Ann PGN FSRU Lampung • 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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2015, Majority held FSRUs includes the direct financing lease related to the PGN FSRU Lampung. PGN FSRU Lampung As of June 30, 2015 and 2014, Joint venture FSRUs include two 50 GDF Suez Neptune GDF Suez Cape Ann 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. Three months ended June 30, 2015 Consolidated Joint venture and Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting (Restated) (Restated) (Restated) Time charter revenues $ 11,065 11,141 22,206 (11,141) $ 11,065 Construction contract revenues Total revenues 11,065 11,141 22,206 11,065 Operating expenses (2,299) (3,159) (1,515) (6,973) 3,159 (3,814) Construction contract expenses Equity in earnings of joint ventures 11,481 11,481 Segment EBITDA 8,766 7,982 (1,515) 15,233 Depreciation and amortization (8) (2,309) (2,317) 2,309 (8) Operating income (loss) 8,758 5,673 (1,515) 12,916 18,724 Gain (loss) on derivative instruments (8) 9,871 9,863 (9,871) (8) Other financial income (expense), net (4,339) (4,063) 2,120 (6,282) 4,063 (2,219) Income (loss) before tax 4,411 11,481 605 16,497 16,497 Income tax expense (59) (59) (59) Net income (loss) $ 4,352 11,481 605 16,438 $ 16,438 Three months ended June 30, 2014 Consolidated Joint venture and Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting (Restated) (Restated) (Restated) Time charter revenues $ 10,101 10,101 (10,101) $ Construction contract revenues 8,084 8,084 8,084 Other revenue 241 241 241 Total revenues 8,325 10,101 18,426 8,325 Operating expenses (2,668) (1,889) (897) (5,454) 1,889 (3,565) Construction contract expenses (6,668) (6,668) (6,668) Equity in earnings of joint ventures (2,125) (2,125) Segment EBITDA (1,011) 8,212 (897) 6,304 Depreciation and amortization (972) (2,288) (3,260) 2,288 (972) Operating income (loss) (1,983) 5,924 (897) 3,044 (5,005) Gain (loss) on derivative instruments (3,755) (3,755) 3,755 Other financial income (expense), net (2,887) (4,294) 435 (6,746) 4,294 (2,452) Income (loss) before tax (4,870) (2,125) (462) (7,457) (7,457) Income tax expense (200) (200) (200) Net income (loss) $ (5,070) (2,125) (462) (7,657) $ (7,657) Six months ended June 30, 2015 Consolidated Joint venture and Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting (Restated) (Restated) (Restated) Time charter revenues $ 22,577 21,309 43,886 (21,309) $ 22,577 Construction contract revenues Total revenues 22,577 21,309 43,886 22,577 Operating expenses (5,094) (5,293) (3,079) (13,466) 5,293 (8,173) Construction contract expenses Equity in earnings of joint ventures 9,359 9,359 Segment EBITDA 17,482 16,016 (3,079) 30,419 Depreciation and amortization (16) (4,486) (4,502) 4,486 (16) Operating income (loss) 17,467 11,530 (3,079) 25,918 23,747 Gain (loss) on derivative instruments 113 5,939 6,052 (5,939) 113 Other financial income (expense), net (8,941) (8,110) 4,249 (12,802) 8,110 (4,692) Income (loss) before tax 8,639 9,359 1,170 19,168 19,168 Income tax expense (152) (152) (152) Net income (loss) $ 8,487 9,359 1,170 19,016 $ 19,016 As of June 30, 2015 Consolidated Joint venture and Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other Reporting Eliminations Reporting (Restated) (Restated) (Restated) Newbuildings $ $ Vessels, net of accumulated depreciation 287,645 287,645 (287,645) Net investment in direct financing lease 294,695 294,695 294,695 Advances to joint ventures 16,356 16,356 16,356 Total assets 366,652 308,461 178,618 853,731 (308,461) 545,270 Accumulated losses of joint ventures 50 50 (50,320) (50,270) Expenditures for newbuildings, vessels & equipment 757 10,861 11,618 (10,861) 757 Expenditures for drydocking 1,600 221 (1,600) Principal repayment direct financing lease $ 1,425 1,425 $ 1,425 Six months ended June 30, 2014 Joint venture Consolidated Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting (Restated) (Restated) (Restated) Time charter revenues $ 20,350 20,350 (20,350) $ Construction contract revenues 38,839 38,839 38,839 Other revenue 474 474 474 Total revenues 39,313 20,350 59,663 39,313 Operating expenses (4,031) (4,034) (3,714) (11,779) 4,034 (7,745) Construction contract expenses (33,482) (33,482) (33,482) Equity in earnings of joint ventures (3,796) (3,796) Segment EBITDA 1,800 16,316 (3,714) 14,402 Depreciation and amortization (980) (4,573) (5,553) 4,573 (980) Operating income (loss) 820 11,743 (3,714) 8,849 (6,690) Gain (loss) on derivative instruments (6,909) (6,909) 6,909 Other financial income (expense), net (3,456) (8,630) 901 (11,185) 8,630 (2,555) Income (loss) before tax (2,636) (3,796) (2,813) (9,245) (9,245) Income tax expense (233) (233) (233) Net income (loss) $ (2,869) (3,796) (2,813) (9,478) $ (9,478) As of December 31, 2014 Consolidated Joint venture and Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting (Restated) (Restated) (Restated) Newbuildings $ $ Vessels, net of accumulated depreciation 279,670 279,670 (279,670) Net investment in direct financing lease 295,363 295,363 295,363 Advances to joint ventures 18,952 18,952 18,952 Total assets 372,930 300,327 190,618 863,875 (300,327) 563,548 Accumulated losses of joint ventures 50 50 (59,680) (59,630) Expenditures for newbuildings, vessels & equipment 172,324 2,358 174,682 (2,358) 172,324 Expenditures for drydocking Principal repayment direct financing lease $ 1,342 1,342 $ 1,342 |
Construction contract revenues
Construction contract revenues | 6 Months Ended |
Jun. 30, 2015 | |
Construction Revenue [Abstract] | |
Construction Revenue [Text Block] | 5. Construction contract revenues Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2015 2014 2015 2014 (Restated) (Restated) Construction contract revenue $ $ 8,084 $ $ 38,839 Construction contract expenses (6,668) (33,482) Recognized contract margin (loss) $ $ 1,416 $ $ 5,357 PGN formally accepted the PGN FSRU Lampung 100 As of June 30, 2014, the Mooring project was estimated to be 88 |
Financial income (expense)
Financial income (expense) | 6 Months Ended |
Jun. 30, 2015 | |
Nonoperating Income (Expense) [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | 6. Financial income (expense) Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2015 2014 2015 2014 (Restated) (Restated) (Restated) (Restated) Interest income $ 2,425 $ 435 $ 4,852 $ 901 Interest expense: Interest expense (2,759) (2,160) (5,613) (4,369) Commitment fees (301) (364) (599) (1,220) Amortization of debt issuance cost (650) (1,913) (1,298) (2,212) Capitalized interest 2,181 5,447 Total interest expense (3,710) (2,256) (7,510) (2,354) Gain (loss) on derivative instruments (8) 113 Other items, net: Foreign exchange gain (loss) (246) (42) (672) (63) Bank charges and fees and other (13) (14) (1) Withholding tax on interest expense and other (675) (589) (1,348) (1,038) Total other items, net (934) (631) (2,034) (1,102) Total financial income (expense), net $ (2,227) $ (2,452) $ (4,579) $ (2,555) |
Income tax
Income tax | 6 Months Ended |
Jun. 30, 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 $ 59 200 152 233 respectively . and reclassification of a deferred tax benefit from other comprehensive income for PT Hoegh LNG Lampung. PT Hoegh LNG Lampung has a tax loss carryforward from the prior year which is expected to offset any current tax expense during 2015 |
Advances to joint ventures
Advances to joint ventures | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Advances to Joint Ventures Disclosure [Text Block] | 8. Advances to joint ventures As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Current portion of advances to joint ventures $ 6,624 $ 6,665 Long-term advances to joint ventures 9,731 12,287 Advances/shareholder loans to joint ventures $ 16,355 $ 18,952 The Partnership had advances of $ 8.5 9.8 7.9 9.1 |
Long-term debt
Long-term debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 9. Long-term debt As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Lampung facility: $ 178.6 million Export credit tranche $ 162,241 $ 168,640 $ 58.5 million FSRU tranche 40,561 43,693 Total debt 202,802 212,333 Less: Current portion of long-term debt (19,062) (19,062) Long-term debt $ 183,740 $ 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 June 30, 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 PGN FSRU Lampung |
Investments in joint ventures
Investments in joint ventures | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 10. Investments in joint ventures As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Accumulated losses of joint ventures $ 50,270 $ 59,630 The Partnership has a 50 GDF Suez Neptune GDF Suez Cape Ann Three months ended Six months ended (in thousands of U.S. dollars) 2015 2014 2015 2014 Time charter revenues $ 22,281 $ 20,201 $ 42,618 $ 40,699 Total revenues $ 22,281 $ 20,201 $ 42,618 $ 40,699 Operating expenses (6,317) (3,778) (10,586) (8,067) Depreciation and amortization (4,772) (4,730) (9,279) (9,454) Operating income 11,192 11,693 22,753 23,178 Unrealized gain (loss) on derivative instruments 19,742 (7,510) 11,878 (13,818) Other financial expense, net (8,126) (8,587) (16,220) (17,259) Net income (loss) $ 22,808 $ (4,405) $ 18,411 $ (7,900) Share of joint ventures owned 50 % 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations 11,404 (2,203) 9,206 (3,950) Eliminations 77 78 153 154 Equity in earnings (losses) of joint ventures $ 11,481 $ (2,125) $ 9,359 $ (3,796) As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Cash and cash equivalents $ 11,302 $ 10,719 Other current assets 3,231 3,317 Total current assets 14,533 14,036 Restricted cash 25,104 25,104 Vessels, net of accumulated depreciation 593,536 577,897 Other long-term assets 1,994 2,174 Total long-term assets 620,634 605,175 Current portion of long-term debt 21,420 20,768 Amounts and loans due to owners and affiliates 13,937 14,516 Derivative financial instruments 23,123 23,887 Other current liabilities 22,631 8,278 Total current liabilities 81,111 67,449 Long-term debt 490,493 501,369 Loans due to owners and affiliates 19,463 24,575 Derivate financial liabilities 90,795 101,910 Other long-term liabilities 35,599 24,612 Total long-term liabilities 636,350 652,466 Net liabilities $ (82,294) $ (100,704) Share of joint ventures owned 50 % 50 % Share of joint ventures net liabilities before eliminations (41,147) (50,352) Eliminations (9,123) (9,278) Accumulated losses of joint ventures $ (50,270) $ (59,630) |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 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 Three months ended Six months ended Statement of income: June 30, June 30, (in thousands of U.S. dollars) 2015 2014 2015 2014 Operating expenses Vessel operating expenses (1) $ (1,224) (1,145) (2,484) $ (1,145) Hours and overhead (2) (357) (707) (674) (1,379) Allocated administrative expenses (3) (1,078) (4,043) Construction contract expense: supervision cost (4) (282) (594) Construction contract expense: capitalized interest (5) (89) (690) Financial (income) expense Interest income from joint ventures and demand note (6) 2,425 435 4,852 901 Interest expense and commitment fees to Höegh LNG (7) (301) (245) (599) (326) Total $ 543 $ (3,111) 1,095 $ (7,276) As of Balance sheet June 30, 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 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 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 85 Receivables and payables from related parties As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Demand note due from owner $ 142,089 $ 143,241 The Partnership lent $ 140 5.88 2,069 3,241 Refer to note 8 for advances to joint ventures. As of June 30, December 31, (in thousands of U.S. dollars) 2015 2015 Amounts due to owners and affiliates $ 2,290 $ 6,019 Amounts due to owners and affiliates principally relate to short term funding and trade payables of operating activities as of June 30, 2015 and December 31, 2014, respectively. As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Loans and promissory notes due to owners and affiliates $ 301 $ 467 In August 2014, upon the closing of the IPO, the Partnership entered into an $ 85 1.4 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 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 PGN FSRU Lampung 4. with respect to any obligation to pay liquidated damages to PGN under the PGN FSRU Lampung PGN FSRU Lampung PGN FSRU Lampung 5. with respect to any non-budgeted expenses (including repair costs) incurred in connection with the PGN FSRU Lampung PGN FSRU Lampung The Partnership filed claims for indemnification of non-budgeted expenses for the three and six months ended June 30, 2015 1.1 4.2 respectively. 6. pursuant to a letter agreement dated August 12, 2015, Höegh LNG confirmed that the indemnification provisions of the omnibus agreement include indemnification for all non-budgeted, non-creditable Indonesian value added taxes and non-budgeted Indonesian withholding taxes, including any related impact on cash flow from PT Hoegh LNG Lampung and interest and penalties associated with any non-timely Indonesian tax filings related to the ownership or operation of the PGN FSRU Lampung PGN FSRU Lampung PGN FSRU Lampung 6.2 1.2 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 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. As of As of June 30, 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 $ 29,373 29,373 30,477 30,477 Restricted cash 1 24,579 24,579 37,119 31,119 Derivative financial instruments 2 (8,394) (8,394) (9,220) (9,220) Other: Advances (shareholder loans) to joint ventures 2 16,355 16,604 18,952 19,629 Demand note due from owner 2 142,089 142,089 143,241 143,241 Current amounts due to owners and affiliates 2 (2,290) (2,290) (6,019) (6,019) Loans and promissory notes due to owners and affiliates 2 (301) (301) (467) (467) Lampung facility 2 $ (202,802) (204,921) (212,333) (214,636) Financing Receivables As of Class of Financing Credit Quality June 30, December 31, (in thousands of U.S. dollars) Indicator Grade 2015 2014 Advances/loans to joint ventures Payment activity Performing $ 16,355 $ 18,952 Demand note due from owner Payment activity Performing $ 142,089 $ 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 concentrati
Risk management and concentrations of risk | 6 Months Ended |
Jun. 30, 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 restricted cash balances are also denominated in currencies other than U.S. dollars. For the three months ended June 30, 2015, and 2014, no derivative financial instruments have been used to manage foreign exchange risk. Interest rate risk Fair value Interest carrying Fixed rate Notional amount interest (in thousands of U.S. dollars) index amount liability Term rate (1) LIBOR-based debt Interest rate swaps (2) LIBOR $ 202,802 (8,394) Sept 2026 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. Current Long-term liabilities: liabilities: derivative derivative financial financial (in thousands of U.S. dollars) instruments instruments As of June 30, 2015 Interest rate swaps $ (4,406) $ (3,988) As of December 31, 2014 Interest rate swaps $ (4,676) $ (4,544) Three months ended June 30, 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 206 206 Reclassification from accumulated other comprehensive income (214) (214) Loss on derivative financial instruments $ (8) $ (8) Six months ended June 30, 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 541 541 Reclassification from accumulated other comprehensive income (428) (428) Loss on derivative financial instruments $ 113 $ 113 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 June 30, 2015 and 2014 included in the consolidated and combined carve-out statements of other comprehensive income. Cash Flow Hedge Before Tax tax gains benefit Accumulated (in thousands of U.S. dollars) (losses) (expense) Net of tax OCI Balance as of December 31, 2014 $ (10,159) 1,984 (8,175) $ (8,175) Effective portion of unrealized loss on cash flow hedge 286 286 286 Reclassification of amortization of cash flow hedge to earnings 428 (203) 225 225 Other comprehensive income for period 714 (203) 511 511) Balance as of June 30, 2015 $ (9,445) 1,781 (7,664) $ (7,664) Cash Flow Hedge Before Tax tax gains benefit Accumulated (in thousands of U.S. dollars) (losses) (expense) Net of tax OCI Balance as of December 31, 2013 $ $ Effective portion of unrealized loss on cash flow hedge (7,316) 1,829 (5,487) (5,487) Reclassification of amortization of cash flow hedge to earnings Other comprehensive income for period (7,316) 1,829 (5,487) (5,487) Balance as of June 30, 2014 $ (7,316) 1,829 (5,487) (5,487) 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 June 30, 2015 and June 30, 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 | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 14. Commitments and contingencies Contractual commitments As of June 30, 2015, contractual purchase commitments required to be made in 2015 were $ 0.5 Claims and Contingencies PGN claims and indemnification Following certain delays, the time charter hire on the PGN FSRU Lampung PGN FSRU Lampung 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 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 PGN FSRU Lampung 6.5 6.7 Therefore, the Partnership recognized the payments from Höegh LNG for September and October 2014 as revenue, including $ 4.9 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. On June 30, 2015, the formal Settlement and Release Agreement was signed formalizing the understanding. As a result, the Partnership 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 2.0 The Partnership was indemnified by Höegh LNG for non-budgeted expenses (including repair costs) incurred in connection with the PGN FSRU Lampung 3.1 |
Supplemental cash flow informat
Supplemental cash flow information | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | 15. Supplemental cash flow information Six months ended June 30, (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 distr
Earning per unit and cash distributions | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Unit [Abstract] | |
Earnings Per Share [Text Block] | 16. Earning per unit and cash distributions Three months Six months June 30 June 30 (in thousands of U.S. dollars, except per unit numbers) 2015 2015 Net income attributable to the unitholders of Höegh LNG Partners LP $ 16,438 $ 19,016 Less: Dividends paid or to be paid (1) (8,880) (17,760) Over (under) distributed earnings 7,558 1,256 Over (under) distributed earnings attributable to: Common units public 3,171 527 Common units Höegh LNG 608 101 Subordinated units Höegh LNG 3,779 628 7,558 1,256 Basic and diluted weighted average units outstanding (in thousands) Common units public 11,040 11,040 Common units Höegh LNG 2,116 2,116 Subordinated units Höegh LNG 13,156 13,156 Basic and diluted earnings per unit: Common units public $ 0.62 $ 0.72 Common units Höegh LNG $ 0.62 $ 0.72 Subordinated units Höegh LNG $ 0.62 $ 0.72 (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 June 30, 2015, the total number of units outstanding was 26,312,120 13,156,060 2,116,060 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 The amount of minimum distributions is $0.3375 per unit per quarter, or $ 1.35 • first 100.0 0.3375 • second • third 100.0 0.3375 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 0.388125 • second 85.0 15.0 0.421875 • third 75.0 25.0 0.50625 • thereafter 50.0 50.0 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 | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 17. Subsequent events On August 14, 2015, the Partnership paid a cash distribution of $ 0.3375 per unit with respect to the second quarter of 2015, equivalent to $ 1.35 unit on an annualized basis. The distribution totaled $ 8.9 On August 12, 2015, the Partnership announced that it had agreed to acquire the entity that owns the FSRU H öegh Gallant 370 Höegh Gallant 183 140 47 18 8 On November 13, 2015, the Partnership paid a cash distribution of $ 0.3375 1.35 8.9 |
Significant accounting polici24
Significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 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/A filed with the Securities and Exchange Commission (“SEC”) on November 30, 2015 (the “Form 20-F/A”). 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 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. 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 June 30, 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 9.8 29.4 28.4 8.5 9.1 32.4 31.2 |
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 Form 20-F/A. |
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 June 30, 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. |
Restatement of Previously Announced Results [Policy Text Block] | d. Restatement of previously announced results Certain of the unaudited condensed interim consolidated and combined carve-out financial statements for the three and six months ended June 30, 2015 and 2014 have been restated for the items set forth below from the Partnership’s previously announced results for the three months ended June 30, 2015 and 2014 that were included in a press release dated August 27, 2015 (the “original press release”) furnished to the SEC on a Form 6-K on August 27, 2015. See the Form 20-F/A filed with the SEC on November 30, 2015 for further information. |
Description of business (Tables
Description of business (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 polici26
Significant accounting policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Elimination Of Equity [Table Text Block] | 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 |
Restatement to Prior Year Income [Table Text Block] | The following table presents the effect of the restatement on the Partnership’s previously reported net income (loss) and total equity as of the date and for the periods shown: Net income (loss) Total equity Three months ended Six months ended As of As of June 30 June 30, June 30, December 31, 2015 2014 2015 2014 2015 2014 As previously reported or pre-restatement $ 16,316 (7,306) 18,734 (9,070) 242,703 $ 237,440 Adjustments: VAT, WHT and other 120 (307) 204 (347) (887) (957) Indirect adjustments 2 (44) 78 (61) 79 (105) As restated $ 16,438 (7,657) 19,016 (9,478) 241,895 $ 236,378 |
Consolidated And Combined Carve out Statement Of Income [Member] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following table presents the effect of the restatement on the Partnership’s consolidated and combined carve-out statement of income: Three months ended June 30, 2015 Adjustments VAT, As WHT and Indirect (in thousands of U.S. dollars, except per unit amounts) reported other adjustments As restated REVENUES Time charter revenues $ 11,087 (22) $ 11,065 Total revenues 11,087 (22) 11,065 OPERATING EXPENSES Vessel operating expenses (1,599) (1,599) Administrative expenses (2,215) (2,215) Depreciation and amortization (8) (8) Total operating expenses (3,822) (3,822) Equity in earnings (losses) of joint ventures 11,481 11,481 Operating income 18,746 (22) 18,724 FINANCIAL INCOME (EXPENSES), NET Interest income 2,425 2,425 Interest expense (3,734) 24 (3,710) Gain (loss) on derivative financial instruments (8) (8) Other items, net (934) (934) Total financial income (expense), net (2,251) 24 (2,227) Income (loss) before tax 16,495 2 16,497 Income tax expense (179) 120 (59) Net income (loss) $ 16,316 120 2 $ 16,438 Earnings per unit Common unit public (basic and diluted) $ 0.62 $ 0.62 Commn unit Höegh LNG (Basic and diluted) $ 0.62 $ 0.62 Subordinated unit (basic and diluted) $ 0.62 $ 0.62 Six months ended June 30, 2015 Adjustments Pre- VAT, As (in thousands of U.S. dollars, except per unit amounts) restatement WHT and other Indirect adjustments restated REVENUES Time charter revenues $ 22,622 (45) $ 22,577 Total revenues 22,622 (45) 22,577 OPERATING EXPENSES Vessel operating expenses (3,859) (3,859) Administrative expenses (4,314) (4,314) Depreciation and amortization (16) (16) Total operating expenses (8,189) (8,189) Equity in earnings (losses) of joint ventures 9,359 9,359 Operating income 23,792 (45) 23,747 FINANCIAL INCOME (EXPENSES), NET Interest income 4,852 4,852 Interest expense (7,633) 123 (7,510) Gain (loss) on derivative financial instruments 113 113 Other items, net (2,034) (2,034) Total financial income (expense), net (4,702) 123 (4,579) Income (loss) before tax 19,090 78 19,168 Income tax expense (356) 204 (152) Net income (loss) $ 18,734 204 78 $ 19,016 Earnings per unit Common unit public (basic and diluted) $ 0.71 $ 0.72 Common unit Höegh LNG (Basic and diluted) $ 0.71 $ 0.72 Subordinated unit (basic and diluted) $ 0.71 $ 0.72 Three months ended June 30, 2014 Adjustments VAT, As WHT and Indirect As (in thousands of U.S. dollars) reported other adjustments restated REVENUES Construction contract revenues $ 7,485 599 $ 8,084 Other revenue 241 241 Total revenues 7,485 840 8,325 OPERATING EXPENSES Vessel operating expenses (1,145) 386 (759) Construction contract expenses (6,073) (595) (6,668) Administrative expenses (2,362) (444) (2,806) Depreciation and amortization (972) (972) Total operating expenses (10,552) (653) (11,205) Equity in earnings (losses) of joint ventures (2,125) (2,125) Operating income (loss) (5,192) 187 (5,005) FINANCIAL INCOME (EXPENSES), NET Interest income 435 435 Interest expense (2,212) (44) (2,256) Other items, net (512) (120) (631) Total financial income (expense), net (2,289) (120) (44) (2,452) Income (loss) before tax (7,481) 68 (44) (7,457) Income tax expense 175 (375) (200) Net income (loss) $ (7,306) (307) (44) $ (7,657) Six months ended June 30, 2014 Adjustments Vat, WHT Pre- and Indirect As (in thousands of U.S. dollars) restatement other adjustments restated REVENUES Construction contract revenues $ 36,612 2,227 $ 38,839 Other revenue 474 474 Total revenues 36,612 2,701 39,313 OPERATING EXPENSES Vessel operating expenses (1,145) 386 (759) Construction contract expenses (30,734) (2,748) (33,482) Administrative expenses (6,510) (476) (6,986) Depreciation and amortization (980) (980) Total operating expenses (39,369) (2,838) (42,207) Equity in earnings (losses) of joint ventures (3,796) (3,796) Operating income (loss) (6,553) (137) (6,690) FINANCIAL INCOME (EXPENSES), NET Interest income 901 901 Interest expense (2,293) (61) (2,354) Other items, net (892) (210) (1,102) Total financial income (expense), net (2,284) (210) (61) (2,555) Income (loss) before tax (8,837) (347) (61) (9,245) Income tax expense (233) (233) Net income (loss) $ (9,070) (347) (61) $ (9,478) |
Consolidated And Combined Carve out Balance Sheet [Member] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following tables show the effect of the restatement on the Partnership’s condensed consolidated and combined carve-out balance sheets : As of June 30, 2015 Adjustments VAT, WHT As and Indirect As reported other adjustments restated ASSETS Current assets Cash and cash equivalents $ 29,373 $ 29,373 Restricted cash 9,463 9,463 Trade receivables 6,189 6,189 Deferred debt issuance cost 2,561 (29) 2,532 Current portion of net investment in direct financing lease 2,962 134 (45) 3,051 Current deferred tax asset 316 24 340 Prepaid expenses and other receivables 3,222 (206) 3,016 Other current assets 148,713 148,713 Total current assets 196,610 6,112 (45) 202,677 Long-term assets Restricted cash 15,116 15,116 Deferred debt issuance cost 10,367 124 10,491 Net investment in direct financing lease 291,490 154 291,644 Long-term deferred tax asset 1,396 272 1,668 Other long-term assets 20,080 (6,176) 13,904 Other equipment and advances to joint ventures 9,770 9,770 Total long-term assets 348,219 (5,750) 124 342,593 Total assets $ 544,829 362 79 $ 545,270 LIABILITIES AND EQUITY Current liabilities Value added and withholding tax liability 264 6,714 6,978 Accrued liabilities and other payables 18,655 (5,465) 13,190 Other current liabilities 27,211 27,211 Total current liabilities 46,130 1,249 47,379 Total long-term liabilities 255,996 255,996 Total liabilities 302,126 1,249 303,375 Total equity 242,703 (887) 79 241,895 Total liabilities and equity $ 544,829 362 79 $ 545,270 As of December 31, 2014 Adjustments VAT, WHT As and Indirect As reported other adjustments restated ASSETS Current assets Cash and cash equivalents $ 30,477 $ 30,477 Restricted cash 21,935 21,935 Trade receivables 6,189 6,189 Deferred debt issuance cost 2,603 (29) 2,574 Current portion of net investment in direct financing lease 2,809 85 2,894 Current deferred tax asset 318 25 343 Prepaid expenses and other receivables 5,091 (4,527) 564 Other current assets 149,906 149,906 Total current assets 213,139 1,743 214,882 Long-term assets Restricted cash 15,184 15,184 Deferred debt issuance cost 11,974 (343) (75) 11,556 Net investment in direct financing lease 292,379 120 (30) 292,469 Long-term deferred tax asset 1,572 95 1,667 Other long-term assets 21,626 (6,177) 15,449 Other equipment and advances to joint ventures 12,341 12,341 Total long-term assets 355,076 (6,306) (105) 348,666 Total assets $ 568,215 (4,562) (105) $ 563,548 LIABILITIES AND EQUITY Current liabilities Value added and withholding tax liability 835 2,231 3,066 Accrued liabilities and other payables 19,201 (5,836) 13,365 Other current liabilities 31,088 31,088 Total current liabilities 51,124 (3,605) 47,519 Total long-term liabilities 279,651 279,651 Total liabilities 330,775 (3,605) 327,170 Total equity 237,440 (957) (105) 236,378 Total liabilities and equity $ 568,215 (4,562) (105) $ 563,548 |
Consolidated And Combined Carve out Statements Of Cash Flows [Member] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | Six months ended June 30, 2015 Adjustments VAT, Pre- WHT and Indirect As (in thousands of U.S. dollars) restatement other adjustments restated OPERATING ACTIVITIES Net income (loss) $ 18,734 204 78 $ 19,016 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 16 16 Equity in losses (earnings) of joint ventures (9,359) (9,359) Changes in accrued interest income on advances to joint ventures and demand note 706 706 Amortization and write off of deferred debt issuance cost 1,419 (123) 1,296 Changes in accrued interest expense (105) (105) Net currency exchange losses (gains) 529 529 Unrealized loss (gain) on financial instruments (113) (113) Other adjustments 69 (204) (135) Changes in working capital: Restricted cash 12,012 12,012 Prepaid expenses and other receivables 2,011 2,011 Trade payables 287 287 Amounts due to owners and affiliates (3,729) (3,729) Value added and withholding tax liability (570) (570) Accrued liabilities and other payables (3,135) (3,135) Net cash provided by (used in) operating activities $ 18,772 (45) $ 18,727 Six months ended June 30, 2015 Adjustments VAT, Pre- WHT and Indirect As (in thousands of U.S. dollars) restatement other adjustments restated INVESTING ACTIVITIES Expenditure for newbuildings and other equipment $ (757) $ (757) Receipts from repayment of principal on advances to joint ventures 3,043 3,043 Receipts from repayment of principal on direct financing lease 1,380 45 1,425 Net cash provided by investing activities 3,666 45 3,711 FINANCING ACTIVITIES Repayment of long-term debt (9,531) (9,531) Cash distributions to unitholders (17,761) (17,761) Proceeds from indemnifications received from Höegh LNG 3,682 3,682 (Increase) decrease in restricted cash 68 68 Net cash provided by (used in) financing activities (23,542) (23,542) Increase (decrease) in cash and cash equivalents (1,104) (1,104 Cash and cash equivalents, beginning of period 30,477 30,477 Cash and cash equivalents, end of period $ 29,373 $ 29,373 Six months ended June 30, 2014 Adjustments VAT, Pre- WHT and Indirect As (in thousands of U.S. dollars) restatement other adjustments restated OPERATING ACTIVITIES Net income (loss) $ (9,070) (347) (61) $ (9,478) Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 980 980 Equity in losses (earnings) of joint ventures 3,796 3,796 Changes in accrued interest income on advances to joint ventures and demand note (579) (579) Amortization and write off of deferred debt issuance cost 2,338 61 2,399 Changes in accrued interest expense 1,006 1,006 Refundable value added tax on import (26,298) (26,298) Changes in working capital: Trade receivables (87) (6,189) (6,276) Unbilled construction contract income 54,473 (2,227) 52,246 Bunkers (2,931) (2,931) Prepaid expenses and other receivables (1,845) (1,845) Trade payables 424 424 Amounts due to owners and affiliates 8,202 8,202 Value added and withholding tax liability 1,358 8,605 9,963 Accrued liabilities and other payables 3,259 (457) 2,802 Net cash provided by (used in) operating activities 35,026 (615) 34,411 INVESTING ACTIVITIES Expenditure for newbuildings and other equipment (169,676) (122) (169,798) Receipts from repayment of principal on advances to joint ventures 3,983 3,983 (Increase) decrease in restricted cash 10,700 10,700 Net cash provided by investing activities $ (154,993) (122) $ (155,115) Six months ended June 30, 2014 Adjustments VAT, Pre- WHT and Indirect As (in thousands of U.S. dollars) restatement other adjustments restated FINANCING ACTIVITIES Proceeds from long-term debt $ 257,099 $ 257,099 Repayment of loans and promissory notes due to owners and affiliates (46,741) (46,741) Contributions from (distributions to) owner (10,962) (10,962) Customer loan for funding of value added liability on import 26,298 26,298 Payment of debt issuance cost (8,973) 737 (8,236) Net cash provided by (used in) financing activities 216,721 737 217,458 Increase (decrease) in cash and cash equivalents 96,754 96,754 Cash and cash equivalents, beginning of period 108 108 Cash and cash equivalents, end of period $ 96,862 $ 96,862 |
Consolidated And Combined Carve out Statements Of Comprehensive Income [Member] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following table presents the effect of the restatement on the Partnership’s condensed consolidated and combined carve-out statement of comprehensive income: Three months ended June 30, 2015 Adjustments As VAT, WHT Indirect reported and other adjustments As restated Net income $ 16,316 120 2 $ 16,438 Unrealized losses on cash flow hedge 2,981 2,981 Income tax benefit (118) (118) Other comprehensive income 2,981 (118) 2,863 Comprehensive income (loss) $ 19,297 2 2 $ 19,301 Six months ended June 30, 2015 Adjustments VAT, Pre- WHT and Indirect As restatement other adjustments restated Net income $ 18,734 204 78 $ 19,016 Unrealized losses on cash flow hedge 714 714 Income tax benefit (203) (203) Other comprehensive income 714 (203) 511 Comprehensive income (loss) $ 19,448 1 78 $ 19,527 Three months ended June 30, 2014 Adjustments VAT, As WHT and Indirect As reported other adjustments restated Net income (loss) $ (7,306) (307) (44) $ (7,657) Unrealized losses on cash flow hedge (3,850) (3,850) Income tax benefit 963 963 Other comprehensive income (2,887) (2,887) Comprehensive income (loss) $ (10,193) (307) (44) $ (10,544) Six months ended June 30, 2014 Adjustments VAT, Pre- WHT and Indirect As restatement other adjustments restated Net income (loss) $ (9,070) (347) (61) $ (9,478) Unrealized losses on cash flow hedge (7,316) (7,316) Income tax benefit 1,829 1,829 Other comprehensive income (5,487) (5,487) Comprehensive income (loss) $ (14,557) (347) (61) $ (14,965) |
Formation transactions and In27
Formation transactions and Initial Public Offering (Tables) | 6 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2015 and 2014. Three months ended June 30, 2015 Consolidated Joint venture and Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting (Restated) (Restated) (Restated) Time charter revenues $ 11,065 11,141 22,206 (11,141) $ 11,065 Construction contract revenues Total revenues 11,065 11,141 22,206 11,065 Operating expenses (2,299) (3,159) (1,515) (6,973) 3,159 (3,814) Construction contract expenses Equity in earnings of joint ventures 11,481 11,481 Segment EBITDA 8,766 7,982 (1,515) 15,233 Depreciation and amortization (8) (2,309) (2,317) 2,309 (8) Operating income (loss) 8,758 5,673 (1,515) 12,916 18,724 Gain (loss) on derivative instruments (8) 9,871 9,863 (9,871) (8) Other financial income (expense), net (4,339) (4,063) 2,120 (6,282) 4,063 (2,219) Income (loss) before tax 4,411 11,481 605 16,497 16,497 Income tax expense (59) (59) (59) Net income (loss) $ 4,352 11,481 605 16,438 $ 16,438 Three months ended June 30, 2014 Consolidated Joint venture and Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting (Restated) (Restated) (Restated) Time charter revenues $ 10,101 10,101 (10,101) $ Construction contract revenues 8,084 8,084 8,084 Other revenue 241 241 241 Total revenues 8,325 10,101 18,426 8,325 Operating expenses (2,668) (1,889) (897) (5,454) 1,889 (3,565) Construction contract expenses (6,668) (6,668) (6,668) Equity in earnings of joint ventures (2,125) (2,125) Segment EBITDA (1,011) 8,212 (897) 6,304 Depreciation and amortization (972) (2,288) (3,260) 2,288 (972) Operating income (loss) (1,983) 5,924 (897) 3,044 (5,005) Gain (loss) on derivative instruments (3,755) (3,755) 3,755 Other financial income (expense), net (2,887) (4,294) 435 (6,746) 4,294 (2,452) Income (loss) before tax (4,870) (2,125) (462) (7,457) (7,457) Income tax expense (200) (200) (200) Net income (loss) $ (5,070) (2,125) (462) (7,657) $ (7,657) Six months ended June 30, 2015 Consolidated Joint venture and Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting (Restated) (Restated) (Restated) Time charter revenues $ 22,577 21,309 43,886 (21,309) $ 22,577 Construction contract revenues Total revenues 22,577 21,309 43,886 22,577 Operating expenses (5,094) (5,293) (3,079) (13,466) 5,293 (8,173) Construction contract expenses Equity in earnings of joint ventures 9,359 9,359 Segment EBITDA 17,482 16,016 (3,079) 30,419 Depreciation and amortization (16) (4,486) (4,502) 4,486 (16) Operating income (loss) 17,467 11,530 (3,079) 25,918 23,747 Gain (loss) on derivative instruments 113 5,939 6,052 (5,939) 113 Other financial income (expense), net (8,941) (8,110) 4,249 (12,802) 8,110 (4,692) Income (loss) before tax 8,639 9,359 1,170 19,168 19,168 Income tax expense (152) (152) (152) Net income (loss) $ 8,487 9,359 1,170 19,016 $ 19,016 Six months ended June 30, 2014 Joint venture Consolidated Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting (Restated) (Restated) (Restated) Time charter revenues $ 20,350 20,350 (20,350) $ Construction contract revenues 38,839 38,839 38,839 Other revenue 474 474 474 Total revenues 39,313 20,350 59,663 39,313 Operating expenses (4,031) (4,034) (3,714) (11,779) 4,034 (7,745) Construction contract expenses (33,482) (33,482) (33,482) Equity in earnings of joint ventures (3,796) (3,796) Segment EBITDA 1,800 16,316 (3,714) 14,402 Depreciation and amortization (980) (4,573) (5,553) 4,573 (980) Operating income (loss) 820 11,743 (3,714) 8,849 (6,690) Gain (loss) on derivative instruments (6,909) (6,909) 6,909 Other financial income (expense), net (3,456) (8,630) 901 (11,185) 8,630 (2,555) Income (loss) before tax (2,636) (3,796) (2,813) (9,245) (9,245) Income tax expense (233) (233) (233) Net income (loss) $ (2,869) (3,796) (2,813) (9,478) $ (9,478) |
Schedule Of Segment Reporting Information Total Assets By Segment [Table Text Block] | As of June 30, 2015 Consolidated Joint venture and Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other Reporting Eliminations Reporting (Restated) (Restated) (Restated) Newbuildings $ $ Vessels, net of accumulated depreciation 287,645 287,645 (287,645) Net investment in direct financing lease 294,695 294,695 294,695 Advances to joint ventures 16,356 16,356 16,356 Total assets 366,652 308,461 178,618 853,731 (308,461) 545,270 Accumulated losses of joint ventures 50 50 (50,320) (50,270) Expenditures for newbuildings, vessels & equipment 757 10,861 11,618 (10,861) 757 Expenditures for drydocking 1,600 221 (1,600) Principal repayment direct financing lease $ 1,425 1,425 $ 1,425 As of December 31, 2014 Consolidated Joint venture and Majority FSRUs Total combined held (proportional Segment carve-out (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting (Restated) (Restated) (Restated) Newbuildings $ $ Vessels, net of accumulated depreciation 279,670 279,670 (279,670) Net investment in direct financing lease 295,363 295,363 295,363 Advances to joint ventures 18,952 18,952 18,952 Total assets 372,930 300,327 190,618 863,875 (300,327) 563,548 Accumulated losses of joint ventures 50 50 (59,680) (59,630) Expenditures for newbuildings, vessels & equipment 172,324 2,358 174,682 (2,358) 172,324 Expenditures for drydocking Principal repayment direct financing lease $ 1,342 1,342 $ 1,342 |
Construction contract revenues
Construction contract revenues (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Construction Revenue [Abstract] | |
Schedule of Construction contract revenues [Table Text Block] | Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2015 2014 2015 2014 (Restated) (Restated) Construction contract revenue $ $ 8,084 $ $ 38,839 Construction contract expenses (6,668) (33,482) Recognized contract margin (loss) $ $ 1,416 $ $ 5,357 |
Financial income (expense) (Tab
Financial income (expense) (Tables) | 6 Months Ended |
Jun. 30, 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 Six months ended June 30, June 30, (in thousands of U.S. dollars) 2015 2014 2015 2014 (Restated) (Restated) (Restated) (Restated) Interest income $ 2,425 $ 435 $ 4,852 $ 901 Interest expense: Interest expense (2,759) (2,160) (5,613) (4,369) Commitment fees (301) (364) (599) (1,220) Amortization of debt issuance cost (650) (1,913) (1,298) (2,212) Capitalized interest 2,181 5,447 Total interest expense (3,710) (2,256) (7,510) (2,354) Gain (loss) on derivative instruments (8) 113 Other items, net: Foreign exchange gain (loss) (246) (42) (672) (63) Bank charges and fees and other (13) (14) (1) Withholding tax on interest expense and other (675) (589) (1,348) (1,038) Total other items, net (934) (631) (2,034) (1,102) Total financial income (expense), net $ (2,227) $ (2,452) $ (4,579) $ (2,555) |
Advances to joint ventures (Tab
Advances to joint ventures (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Investments in and Advances to Affiliates [Table Text Block] | As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Current portion of advances to joint ventures $ 6,624 $ 6,665 Long-term advances to joint ventures 9,731 12,287 Advances/shareholder loans to joint ventures $ 16,355 $ 18,952 |
Long-term debt (Tables)
Long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Lampung facility: $ 178.6 million Export credit tranche $ 162,241 $ 168,640 $ 58.5 million FSRU tranche 40,561 43,693 Total debt 202,802 212,333 Less: Current portion of long-term debt (19,062) (19,062) Long-term debt $ 183,740 $ 193,271 |
Investments in joint ventures (
Investments in joint ventures (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments [Table Text Block] | As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Accumulated losses of joint ventures $ 50,270 $ 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 Six months ended (in thousands of U.S. dollars) 2015 2014 2015 2014 Time charter revenues $ 22,281 $ 20,201 $ 42,618 $ 40,699 Total revenues $ 22,281 $ 20,201 $ 42,618 $ 40,699 Operating expenses (6,317) (3,778) (10,586) (8,067) Depreciation and amortization (4,772) (4,730) (9,279) (9,454) Operating income 11,192 11,693 22,753 23,178 Unrealized gain (loss) on derivative instruments 19,742 (7,510) 11,878 (13,818) Other financial expense, net (8,126) (8,587) (16,220) (17,259) Net income (loss) $ 22,808 $ (4,405) $ 18,411 $ (7,900) Share of joint ventures owned 50 % 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations 11,404 (2,203) 9,206 (3,950) Eliminations 77 78 153 154 Equity in earnings (losses) of joint ventures $ 11,481 $ (2,125) $ 9,359 $ (3,796) As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Cash and cash equivalents $ 11,302 $ 10,719 Other current assets 3,231 3,317 Total current assets 14,533 14,036 Restricted cash 25,104 25,104 Vessels, net of accumulated depreciation 593,536 577,897 Other long-term assets 1,994 2,174 Total long-term assets 620,634 605,175 Current portion of long-term debt 21,420 20,768 Amounts and loans due to owners and affiliates 13,937 14,516 Derivative financial instruments 23,123 23,887 Other current liabilities 22,631 8,278 Total current liabilities 81,111 67,449 Long-term debt 490,493 501,369 Loans due to owners and affiliates 19,463 24,575 Derivate financial liabilities 90,795 101,910 Other long-term liabilities 35,599 24,612 Total long-term liabilities 636,350 652,466 Net liabilities $ (82,294) $ (100,704) Share of joint ventures owned 50 % 50 % Share of joint ventures net liabilities before eliminations (41,147) (50,352) Eliminations (9,123) (9,278) Accumulated losses of joint ventures $ (50,270) $ (59,630) |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Related Party Transactions [Table Text Block] | As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Demand note due from owner $ 142,089 $ 143,241 The Partnership lent $ 140 5.88 2,069 3,241 Refer to note 8 for advances to joint ventures. As of June 30, December 31, (in thousands of U.S. dollars) 2015 2015 Amounts due to owners and affiliates $ 2,290 $ 6,019 Amounts due to owners and affiliates principally relate to short term funding and trade payables of operating activities as of June 30, 2015 and December 31, 2014, respectively. As of June 30, December 31, (in thousands of U.S. dollars) 2015 2014 Loans and promissory notes due to owners and affiliates $ 301 $ 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 and six months ended June 30, 2015, and 2014 or capitalized in the consolidated and combined carve-out balance sheets as of June 30, 2015 and December 31, 2014 are as follows: Three months ended Six months ended Statement of income: June 30, June 30, (in thousands of U.S. dollars) 2015 2014 2015 2014 Operating expenses Vessel operating expenses (1) $ (1,224) (1,145) (2,484) $ (1,145) Hours and overhead (2) (357) (707) (674) (1,379) Allocated administrative expenses (3) (1,078) (4,043) Construction contract expense: supervision cost (4) (282) (594) Construction contract expense: capitalized interest (5) (89) (690) Financial (income) expense Interest income from joint ventures and demand note (6) 2,425 435 4,852 901 Interest expense and commitment fees to Höegh LNG (7) (301) (245) (599) (326) Total $ 543 $ (3,111) 1,095 $ (7,276) As of Balance sheet June 30, 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 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 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 85 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 $ 29,373 29,373 30,477 30,477 Restricted cash 1 24,579 24,579 37,119 31,119 Derivative financial instruments 2 (8,394) (8,394) (9,220) (9,220) Other: Advances (shareholder loans) to joint ventures 2 16,355 16,604 18,952 19,629 Demand note due from owner 2 142,089 142,089 143,241 143,241 Current amounts due to owners and affiliates 2 (2,290) (2,290) (6,019) (6,019) Loans and promissory notes due to owners and affiliates 2 (301) (301) (467) (467) Lampung facility 2 $ (202,802) (204,921) (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 Credit Quality June 30, December 31, (in thousands of U.S. dollars) Indicator Grade 2015 2014 Advances/loans to joint ventures Payment activity Performing $ 16,355 $ 18,952 Demand note due from owner Payment activity Performing $ 142,089 $ 143,241 |
Risk management and concentra36
Risk management and concentrations of risk (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2015, the following interest rate swap agreements were outstanding: Fair value Interest carrying Fixed rate Notional amount interest (in thousands of U.S. dollars) index amount liability Term rate (1) LIBOR-based debt Interest rate swaps (2) LIBOR $ 202,802 (8,394) Sept 2026 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 June 30, 2015 Interest rate swaps $ (4,406) $ (3,988) 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 June 30, 2015. There were no realized or unrealized gains or losses on derivative financial instruments for the three or months or ended June 30, 2014. Three months ended June 30, 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 206 206 Reclassification from accumulated other comprehensive income (214) (214) Loss on derivative financial instruments $ (8) $ (8) Six months ended June 30, 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 541 541 Reclassification from accumulated other comprehensive income (428) (428) Loss on derivative financial instruments $ 113 $ 113 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Cash Flow Hedge Before Tax tax gains benefit Accumulated (in thousands of U.S. dollars) (losses) (expense) Net of tax OCI Balance as of December 31, 2014 $ (10,159) 1,984 (8,175) $ (8,175) Effective portion of unrealized loss on cash flow hedge 286 286 286 Reclassification of amortization of cash flow hedge to earnings 428 (203) 225 225 Other comprehensive income for period 714 (203) 511 511) Balance as of June 30, 2015 $ (9,445) 1,781 (7,664) $ (7,664) Cash Flow Hedge Before Tax tax gains benefit Accumulated (in thousands of U.S. dollars) (losses) (expense) Net of tax OCI Balance as of December 31, 2013 $ $ Effective portion of unrealized loss on cash flow hedge (7,316) 1,829 (5,487) (5,487) Reclassification of amortization of cash flow hedge to earnings Other comprehensive income for period (7,316) 1,829 (5,487) (5,487) Balance as of June 30, 2014 $ (7,316) 1,829 (5,487) (5,487) |
Supplemental cash flow inform37
Supplemental cash flow information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Six months ended June 30, (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 dis38
Earning per unit and cash distributions (Tables) | 6 Months Ended |
Jun. 30, 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 Six months June 30 June 30 (in thousands of U.S. dollars, except per unit numbers) 2015 2015 Net income attributable to the unitholders of Höegh LNG Partners LP $ 16,438 $ 19,016 Less: Dividends paid or to be paid (1) (8,880) (17,760) Over (under) distributed earnings 7,558 1,256 Over (under) distributed earnings attributable to: Common units public 3,171 527 Common units Höegh LNG 608 101 Subordinated units Höegh LNG 3,779 628 7,558 1,256 Basic and diluted weighted average units outstanding (in thousands) Common units public 11,040 11,040 Common units Höegh LNG 2,116 2,116 Subordinated units Höegh LNG 13,156 13,156 Basic and diluted earnings per unit: Common units public $ 0.62 $ 0.72 Common units Höegh LNG $ 0.62 $ 0.72 Subordinated units Höegh LNG $ 0.62 $ 0.72 (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) | 6 Months Ended | |
Jun. 30, 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 (Deta40
Description of business (Details Textual) - USD ($) $ in Millions | Aug. 12, 2014 | Apr. 28, 2014 | Jun. 30, 2015 |
Condensed Financial Statements, Captions [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | ||
Co-venturer [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Hoegh LNG Holdings Ltd [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | ||
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 Holdings Ltd [Member] | Partnership Interest [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Percentage of Partnership Interest | 58.00% | ||
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 | ||
Partners' Capital Account, Public Sale of Units Net of Offering Costs | $ 203.5 | ||
Percentage of Partnership Interest | 42.00% | ||
Limited Partners Capital Account, Units Issued | 11,040,000 | ||
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 polici41
Significant accounting policies (Details) - Consolidation, Eliminations [Member] $ in Thousands | Aug. 12, 2014USD ($) |
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 polici42
Significant accounting policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
REVENUES | ||||
Time charter revenues | $ 11,065 | $ 0 | $ 22,577 | $ 0 |
Construction contract revenues | 0 | 8,084 | 0 | 38,839 |
Other revenue | 0 | 241 | 0 | 474 |
Total revenues | 11,065 | 8,325 | 22,577 | 39,313 |
OPERATING EXPENSES | ||||
Vessel operating expenses | (1,599) | (759) | (3,859) | (759) |
Construction contract expenses | 0 | (6,668) | 0 | (33,482) |
Administrative expenses | (2,215) | (2,806) | (4,314) | (6,986) |
Depreciation and amortization | (8) | (972) | (16) | (980) |
Total operating expenses | (3,822) | (11,205) | (8,189) | (42,207) |
Equity in earnings (losses) of joint ventures | 11,481 | (2,125) | 9,359 | (3,796) |
Operating income (loss) | 18,724 | (5,005) | 23,747 | (6,690) |
FINANCIAL INCOME (EXPENSES), NET | ||||
Interest income | 2,425 | 435 | 4,852 | 901 |
Interest expense | (3,710) | (2,256) | (7,510) | (2,354) |
Gain (loss) on derivative instruments | (8) | 0 | 113 | 0 |
Other items, net | (934) | (631) | (2,034) | (1,102) |
Total financial income (expense), net | (2,227) | (2,452) | (4,579) | (2,555) |
Income before tax | 16,497 | (7,457) | 19,168 | (9,245) |
Income tax expense | 59 | 200 | 152 | 233 |
Net income (loss) | 16,438 | (7,657) | 19,016 | (9,478) |
Scenario, Previously Reported [Member] | ||||
REVENUES | ||||
Time charter revenues | 11,087 | 22,622 | ||
Construction contract revenues | 7,485 | 36,612 | ||
Other revenue | 0 | 0 | ||
Total revenues | 11,087 | 7,485 | 22,622 | 36,612 |
OPERATING EXPENSES | ||||
Vessel operating expenses | (1,599) | (1,145) | (3,859) | (1,145) |
Construction contract expenses | (6,073) | (30,734) | ||
Administrative expenses | (2,215) | (2,362) | (4,314) | (6,510) |
Depreciation and amortization | (8) | (972) | (16) | (980) |
Total operating expenses | (3,822) | (10,552) | (8,189) | (39,369) |
Equity in earnings (losses) of joint ventures | 11,481 | (2,125) | 9,359 | (3,796) |
Operating income (loss) | 18,746 | (5,192) | 23,792 | (6,553) |
FINANCIAL INCOME (EXPENSES), NET | ||||
Interest income | 2,425 | 435 | 4,852 | 901 |
Interest expense | (3,734) | (2,212) | (7,633) | (2,293) |
Gain (loss) on derivative instruments | (8) | 113 | ||
Other items, net | (934) | (512) | (2,034) | (892) |
Total financial income (expense), net | (2,251) | (2,289) | (4,702) | (2,284) |
Income before tax | 16,495 | (7,481) | 19,090 | (8,837) |
Income tax expense | (179) | 175 | (356) | (233) |
Net income (loss) | 16,316 | (7,306) | 18,734 | (9,070) |
Restatement Adjustment [Member] | ||||
REVENUES | ||||
Time charter revenues | 0 | 0 | ||
Construction contract revenues | 599 | 2,227 | ||
Other revenue | 241 | 474 | ||
Total revenues | 0 | 840 | 0 | 2,701 |
OPERATING EXPENSES | ||||
Vessel operating expenses | 0 | 386 | 0 | 386 |
Construction contract expenses | (595) | (2,748) | ||
Administrative expenses | 0 | (444) | 0 | (476) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | (653) | 0 | (2,838) |
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 |
Operating income (loss) | 0 | 187 | 0 | (137) |
FINANCIAL INCOME (EXPENSES), NET | ||||
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Gain (loss) on derivative instruments | 0 | 0 | ||
Other items, net | 0 | (120) | 0 | (210) |
Total financial income (expense), net | 0 | (120) | 0 | (210) |
Income before tax | 0 | 68 | 0 | (347) |
Income tax expense | 120 | (375) | 204 | 0 |
Net income (loss) | 120 | (307) | 204 | (347) |
Indirect Adjustment [Member] | ||||
REVENUES | ||||
Time charter revenues | (22) | (45) | ||
Construction contract revenues | 0 | 0 | ||
Other revenue | 0 | 0 | ||
Total revenues | (22) | 0 | (45) | 0 |
OPERATING EXPENSES | ||||
Vessel operating expenses | 0 | 0 | 0 | 0 |
Construction contract expenses | 0 | 0 | ||
Administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 |
Operating income (loss) | (22) | 0 | (45) | 0 |
FINANCIAL INCOME (EXPENSES), NET | ||||
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 24 | (44) | 123 | (61) |
Gain (loss) on derivative instruments | 0 | 0 | ||
Other items, net | 0 | 0 | 0 | 0 |
Total financial income (expense), net | 24 | (44) | 123 | (61) |
Income before tax | 2 | (44) | 78 | (61) |
Income tax expense | 0 | 0 | 0 | 0 |
Net income (loss) | $ 2 | $ (44) | 78 | $ (61) |
Common units public [Member] | ||||
FINANCIAL INCOME (EXPENSES), NET | ||||
Net income (loss) | $ 7,979 | |||
Earnings per unit | ||||
Earnings Per Share, Basic and Diluted, Total | $ 0.62 | $ 0 | $ 0.72 | $ 0 |
Common units public [Member] | Scenario, Previously Reported [Member] | ||||
Earnings per unit | ||||
Earnings Per Share, Basic and Diluted, Total | 0.62 | $ 0.71 | ||
Common units Hoegh LNG [Member] | ||||
FINANCIAL INCOME (EXPENSES), NET | ||||
Net income (loss) | $ 1,529 | |||
Earnings per unit | ||||
Earnings Per Share, Basic and Diluted, Total | 0.62 | 0 | $ 0.72 | 0 |
Common units Hoegh LNG [Member] | Scenario, Previously Reported [Member] | ||||
Earnings per unit | ||||
Earnings Per Share, Basic and Diluted, Total | 0.62 | $ 0.71 | ||
Subordinated units [Member] | ||||
FINANCIAL INCOME (EXPENSES), NET | ||||
Net income (loss) | $ 9,508 | |||
Earnings per unit | ||||
Earnings Per Share, Basic and Diluted, Total | 0.62 | $ 0 | $ 0.72 | $ 0 |
Subordinated units [Member] | Scenario, Previously Reported [Member] | ||||
Earnings per unit | ||||
Earnings Per Share, Basic and Diluted, Total | $ 0.62 | $ 0.71 |
Significant accounting polici43
Significant accounting policies (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 6 Months Ended | 7 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Aug. 12, 2014 | |
Net income (loss) | $ 16,438 | $ (7,657) | $ 19,016 | $ (9,478) | ||
Unrealized gains (losses) on cash flow hedge | 2,981 | (3,850) | 714 | (7,316) | ||
Income tax benefit (expense) | (118) | 963 | (203) | 1,829 | ||
Other comprehensive income (Loss) | 2,863 | (2,887) | $ (2,275) | 511 | (5,487) | $ (5,900) |
Comprehensive income (loss) | 19,301 | (10,544) | 19,527 | (14,965) | ||
Scenario, Previously Reported [Member] | ||||||
Net income (loss) | 16,316 | (7,306) | 18,734 | (9,070) | ||
Unrealized gains (losses) on cash flow hedge | 2,981 | (3,850) | 714 | (7,316) | ||
Income tax benefit (expense) | 0 | 963 | 0 | 1,829 | ||
Other comprehensive income (Loss) | 2,981 | (2,887) | 714 | (5,487) | ||
Comprehensive income (loss) | 19,297 | (10,193) | 19,448 | (14,557) | ||
Restatement Adjustment [Member] | ||||||
Net income (loss) | 120 | (307) | 204 | (347) | ||
Unrealized gains (losses) on cash flow hedge | 0 | 0 | 0 | 0 | ||
Income tax benefit (expense) | (118) | 0 | (203) | 0 | ||
Other comprehensive income (Loss) | (118) | 0 | (203) | 0 | ||
Comprehensive income (loss) | 2 | (307) | 1 | (347) | ||
Indirect Adjustment [Member] | ||||||
Net income (loss) | 2 | (44) | 78 | (61) | ||
Unrealized gains (losses) on cash flow hedge | 0 | 0 | 0 | 0 | ||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | ||
Other comprehensive income (Loss) | 0 | 0 | 0 | 0 | ||
Comprehensive income (loss) | $ 2 | $ (44) | $ 78 | $ (61) |
Significant accounting polici44
Significant accounting policies (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Aug. 12, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Current assets | |||||
Cash and cash equivalents | $ 29,373 | $ 30,477 | $ 96,862 | $ 108 | |
Restricted cash | 9,463 | 21,935 | |||
Trade receivables | 6,189 | 6,189 | |||
Deferred debt issuance cost | 2,532 | 2,574 | |||
Current portion of net investment in direct financing lease | 3,051 | 2,894 | |||
Current deferred tax asset | 340 | 343 | |||
Prepaid expenses and other receivables | 3,016 | 564 | |||
Other current assets | 148,713 | 149,906 | |||
Total current assets | 202,677 | 214,882 | |||
Long-term assets | |||||
Restricted cash | 15,116 | 15,184 | |||
Deferred debt issuance cost | 10,491 | 11,556 | |||
Net investment in direct financing lease | 291,644 | 292,469 | |||
Long-term deferred tax asset | 1,668 | 1,667 | |||
Other long-term assets | 13,904 | 15,449 | |||
Other equipment and advances to joint ventures | 9,770 | 12,341 | |||
Total long-term assets | 342,593 | 348,666 | |||
Total assets | 545,270 | 563,548 | |||
Current liabilities | |||||
Value added and withholding tax liability | 6,978 | 3,066 | |||
Accrued liabilities and other payables | 13,190 | 13,365 | |||
Other current liabilities | 27,211 | 31,088 | |||
Total current liabilities | 47,379 | 47,519 | |||
Total long-term liabilities | 255,996 | 279,651 | |||
Total liabilities | 303,375 | 327,170 | |||
Total equity | 241,895 | 236,378 | $ 24,524 | (48,096) | |
Total liabilities and equity | 545,270 | 563,548 | |||
Indirect Adjustment [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Restricted cash | 0 | 0 | |||
Trade receivables | 0 | 0 | |||
Deferred debt issuance cost | 0 | 0 | |||
Current portion of net investment in direct financing lease | (45) | 0 | |||
Current deferred tax asset | 0 | ||||
Prepaid expenses and other receivables | 0 | 0 | |||
Other current assets | 0 | 0 | |||
Total current assets | (45) | 0 | |||
Long-term assets | |||||
Restricted cash | 0 | 0 | |||
Deferred debt issuance cost | 124 | (75) | |||
Net investment in direct financing lease | 0 | (30) | |||
Long-term deferred tax asset | 0 | 0 | |||
Other long-term assets | 0 | 0 | |||
Other equipment and advances to joint ventures | 0 | 0 | |||
Total long-term assets | 124 | (105) | |||
Total assets | 79 | (105) | |||
Current liabilities | |||||
Value added and withholding tax liability | 0 | 0 | |||
Accrued liabilities and other payables | 0 | 0 | |||
Other current liabilities | 0 | 0 | |||
Total current liabilities | 0 | 0 | |||
Total long-term liabilities | 0 | 0 | |||
Total liabilities | 0 | 0 | |||
Total equity | 79 | (105) | |||
Total liabilities and equity | 79 | (105) | |||
Restatement Adjustment [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Restricted cash | 0 | 0 | |||
Trade receivables | 6,189 | 6,189 | |||
Deferred debt issuance cost | (29) | (29) | |||
Current portion of net investment in direct financing lease | 134 | 85 | |||
Current deferred tax asset | 24 | 25 | |||
Prepaid expenses and other receivables | (206) | (4,527) | |||
Other current assets | 0 | 0 | |||
Total current assets | 6,112 | 1,743 | |||
Long-term assets | |||||
Restricted cash | 0 | 0 | |||
Deferred debt issuance cost | 0 | (343) | |||
Net investment in direct financing lease | 154 | 120 | |||
Long-term deferred tax asset | 272 | 95 | |||
Other long-term assets | (6,176) | (6,177) | |||
Other equipment and advances to joint ventures | 0 | 0 | |||
Total long-term assets | (5,750) | (6,306) | |||
Total assets | 362 | (4,562) | |||
Current liabilities | |||||
Value added and withholding tax liability | 6,714 | 2,231 | |||
Accrued liabilities and other payables | (5,465) | (5,836) | |||
Other current liabilities | 0 | 0 | |||
Total current liabilities | 1,249 | (3,605) | |||
Total long-term liabilities | 0 | 0 | |||
Total liabilities | 1,249 | (3,605) | |||
Total equity | (887) | (957) | |||
Total liabilities and equity | 362 | (4,562) | |||
Scenario, Previously Reported [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 29,373 | 30,477 | $ 96,862 | $ 108 | |
Restricted cash | 9,463 | 21,935 | |||
Trade receivables | 0 | 0 | |||
Deferred debt issuance cost | 2,561 | 2,603 | |||
Current portion of net investment in direct financing lease | 2,962 | 2,809 | |||
Current deferred tax asset | 316 | 318 | |||
Prepaid expenses and other receivables | 3,222 | 5,091 | |||
Other current assets | 148,713 | 149,906 | |||
Total current assets | 196,610 | 213,139 | |||
Long-term assets | |||||
Restricted cash | 15,116 | 15,184 | |||
Deferred debt issuance cost | 10,367 | 11,974 | |||
Net investment in direct financing lease | 291,490 | 292,379 | |||
Long-term deferred tax asset | 1,396 | 1,572 | |||
Other long-term assets | 20,080 | 21,626 | |||
Other equipment and advances to joint ventures | 9,770 | 12,341 | |||
Total long-term assets | 348,219 | 355,076 | |||
Total assets | 544,829 | 568,215 | |||
Current liabilities | |||||
Value added and withholding tax liability | 264 | 835 | |||
Accrued liabilities and other payables | 18,655 | 19,201 | |||
Other current liabilities | 27,211 | 31,088 | |||
Total current liabilities | 46,130 | 51,124 | |||
Total long-term liabilities | 255,996 | 279,651 | |||
Total liabilities | 302,126 | 330,775 | |||
Total equity | 242,703 | 237,440 | |||
Total liabilities and equity | $ 544,829 | $ 568,215 |
Significant accounting polici45
Significant accounting policies (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||||
Net income (loss) | $ 16,438 | $ (7,657) | $ 19,016 | $ (9,478) |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Depreciation and amortization | 8 | 972 | 16 | 980 |
Equity in losses (earnings) of joint ventures | (11,481) | 2,125 | (9,359) | 3,796 |
Changes in accrued interest income on advances to joint ventures and demand note | 706 | (579) | ||
Amortization and write off of deferred debt issuance cost | 650 | 1,913 | 1,296 | 2,399 |
Changes in accrued interest expense | (105) | 1,006 | ||
Net currency exchange losses (gains) | 529 | 0 | ||
Unrealized loss (gain) on financial instruments | 8 | 0 | (113) | 0 |
Other adjustments | (135) | 0 | ||
Refundable value added tax on import | 0 | (26,298) | ||
Changes in working capital: | ||||
Restricted cash | 12,012 | 0 | ||
Trade receivables | 0 | (6,276) | ||
Unbilled construction contract income | 0 | 52,246 | ||
Bunkers | 0 | (2,931) | ||
Prepaid expenses and other receivables | 2,011 | (1,845) | ||
Trade payables | 287 | 424 | ||
Amounts due to owners and affiliates | (3,729) | 8,202 | ||
Value added and withholding tax liability | (570) | 9,963 | ||
Accrued liabilities and other payables | (3,135) | 2,802 | ||
Net cash provided by (used in) operating activities | 18,727 | 34,411 | ||
INVESTING ACTIVITIES | ||||
Expenditure for newbuildings and other equipment | (757) | (169,798) | ||
Receipts from repayment of principal on advances to joint ventures | 3,043 | 3,983 | ||
Receipts from repayment of principal on direct financing lease | 1,425 | 0 | ||
(Increase) decrease in restricted cash | 0 | (10,700) | ||
Net cash provided by investing activities | 3,711 | (155,115) | ||
FINANCING ACTIVITIES | ||||
Repayment of long-term debt | (9,531) | 0 | ||
Cash distributions to unitholders | (17,761) | |||
Repayment of loans and promissory notes due to owners and affiliates | 0 | (46,741) | ||
Proceeds from indemnifications received from Höegh LNG | 3,682 | |||
Proceeds from long-term debt | 0 | 257,099 | ||
Repayment of amounts due to owners and affiliates | 0 | (10,962) | ||
Payment of debt issuance cost | 0 | (8,236) | ||
Customer loan for funding of value added liability on import | 0 | 26,298 | ||
(Increase) decrease in restricted cash | 68 | 0 | ||
Net cash provided by (used in) financing activities | (23,542) | 217,458 | ||
Increase (decrease) in cash and cash equivalents | (1,104) | 96,754 | ||
Cash and cash equivalents, beginning of period | 30,477 | 108 | ||
Cash and cash equivalents, end of period | 29,373 | 96,862 | 29,373 | 96,862 |
Scenario, Previously Reported [Member] | ||||
OPERATING ACTIVITIES | ||||
Net income (loss) | 16,316 | (7,306) | 18,734 | (9,070) |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Depreciation and amortization | 8 | 972 | 16 | 980 |
Equity in losses (earnings) of joint ventures | (11,481) | 2,125 | (9,359) | 3,796 |
Changes in accrued interest income on advances to joint ventures and demand note | 706 | (579) | ||
Amortization and write off of deferred debt issuance cost | 1,419 | 2,338 | ||
Changes in accrued interest expense | (105) | 1,006 | ||
Net currency exchange losses (gains) | 529 | |||
Unrealized loss (gain) on financial instruments | 8 | (113) | ||
Other adjustments | 69 | |||
Refundable value added tax on import | (26,298) | |||
Changes in working capital: | ||||
Restricted cash | 12,012 | |||
Trade receivables | (87) | |||
Unbilled construction contract income | 54,473 | |||
Bunkers | (2,931) | |||
Prepaid expenses and other receivables | 2,011 | (1,845) | ||
Trade payables | 287 | 424 | ||
Amounts due to owners and affiliates | (3,729) | 8,202 | ||
Value added and withholding tax liability | (570) | 1,358 | ||
Accrued liabilities and other payables | (3,135) | 3,259 | ||
Net cash provided by (used in) operating activities | 18,772 | 35,026 | ||
INVESTING ACTIVITIES | ||||
Expenditure for newbuildings and other equipment | (757) | (169,676) | ||
Receipts from repayment of principal on advances to joint ventures | 3,043 | 3,983 | ||
Receipts from repayment of principal on direct financing lease | 1,380 | |||
(Increase) decrease in restricted cash | 10,700 | |||
Net cash provided by investing activities | 3,666 | (154,993) | ||
FINANCING ACTIVITIES | ||||
Repayment of long-term debt | (9,531) | |||
Cash distributions to unitholders | (17,761) | |||
Repayment of loans and promissory notes due to owners and affiliates | (46,741) | |||
Proceeds from indemnifications received from Höegh LNG | 3,682 | |||
Proceeds from long-term debt | 257,099 | |||
Repayment of amounts due to owners and affiliates | (10,962) | |||
Payment of debt issuance cost | (8,973) | |||
Customer loan for funding of value added liability on import | 26,298 | |||
(Increase) decrease in restricted cash | 68 | |||
Net cash provided by (used in) financing activities | (23,542) | 216,721 | ||
Increase (decrease) in cash and cash equivalents | (1,104) | 96,754 | ||
Cash and cash equivalents, beginning of period | 30,477 | 108 | ||
Cash and cash equivalents, end of period | 29,373 | 96,862 | 29,373 | 96,862 |
Restatement Adjustment [Member] | ||||
OPERATING ACTIVITIES | ||||
Net income (loss) | 120 | (307) | 204 | (347) |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 |
Equity in losses (earnings) of joint ventures | 0 | 0 | 0 | 0 |
Changes in accrued interest income on advances to joint ventures and demand note | 0 | 0 | ||
Amortization and write off of deferred debt issuance cost | 0 | 0 | ||
Changes in accrued interest expense | 0 | 0 | ||
Net currency exchange losses (gains) | 0 | |||
Unrealized loss (gain) on financial instruments | 0 | 0 | ||
Other adjustments | (204) | |||
Refundable value added tax on import | 0 | |||
Changes in working capital: | ||||
Restricted cash | 0 | |||
Trade receivables | (6,189) | |||
Unbilled construction contract income | (2,227) | |||
Bunkers | 0 | |||
Prepaid expenses and other receivables | 0 | 0 | ||
Trade payables | 0 | 0 | ||
Amounts due to owners and affiliates | 0 | 0 | ||
Value added and withholding tax liability | 0 | 8,605 | ||
Accrued liabilities and other payables | 0 | (457) | ||
Net cash provided by (used in) operating activities | 0 | (615) | ||
INVESTING ACTIVITIES | ||||
Expenditure for newbuildings and other equipment | 0 | (122) | ||
Receipts from repayment of principal on advances to joint ventures | 0 | 0 | ||
Receipts from repayment of principal on direct financing lease | 0 | |||
(Increase) decrease in restricted cash | 0 | |||
Net cash provided by investing activities | 0 | (122) | ||
FINANCING ACTIVITIES | ||||
Repayment of long-term debt | 0 | |||
Cash distributions to unitholders | 0 | |||
Repayment of loans and promissory notes due to owners and affiliates | 0 | |||
Proceeds from indemnifications received from Höegh LNG | 0 | |||
Proceeds from long-term debt | 0 | |||
Repayment of amounts due to owners and affiliates | 0 | |||
Payment of debt issuance cost | 737 | |||
Customer loan for funding of value added liability on import | 0 | |||
(Increase) decrease in restricted cash | 0 | |||
Net cash provided by (used in) financing activities | 0 | 737 | ||
Increase (decrease) in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | ||
Cash and cash equivalents, end of period | 0 | 0 | 0 | 0 |
Indirect Adjustment [Member] | ||||
OPERATING ACTIVITIES | ||||
Net income (loss) | 2 | (44) | 78 | (61) |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 |
Equity in losses (earnings) of joint ventures | 0 | 0 | 0 | 0 |
Changes in accrued interest income on advances to joint ventures and demand note | 0 | 0 | ||
Amortization and write off of deferred debt issuance cost | (123) | 61 | ||
Changes in accrued interest expense | 0 | 0 | ||
Net currency exchange losses (gains) | 0 | |||
Unrealized loss (gain) on financial instruments | 0 | 0 | ||
Other adjustments | 0 | |||
Refundable value added tax on import | 0 | |||
Changes in working capital: | ||||
Restricted cash | 0 | |||
Trade receivables | 0 | |||
Unbilled construction contract income | 0 | |||
Bunkers | 0 | |||
Prepaid expenses and other receivables | 0 | 0 | ||
Trade payables | 0 | 0 | ||
Amounts due to owners and affiliates | 0 | 0 | ||
Value added and withholding tax liability | 0 | 0 | ||
Accrued liabilities and other payables | 0 | 0 | ||
Net cash provided by (used in) operating activities | (45) | 0 | ||
INVESTING ACTIVITIES | ||||
Expenditure for newbuildings and other equipment | 0 | 0 | ||
Receipts from repayment of principal on advances to joint ventures | 0 | 0 | ||
Receipts from repayment of principal on direct financing lease | 45 | |||
(Increase) decrease in restricted cash | 0 | |||
Net cash provided by investing activities | 45 | 0 | ||
FINANCING ACTIVITIES | ||||
Repayment of long-term debt | 0 | |||
Cash distributions to unitholders | 0 | |||
Repayment of loans and promissory notes due to owners and affiliates | 0 | |||
Proceeds from indemnifications received from Höegh LNG | 0 | |||
Proceeds from long-term debt | 0 | |||
Repayment of amounts due to owners and affiliates | 0 | |||
Payment of debt issuance cost | 0 | |||
Customer loan for funding of value added liability on import | 0 | |||
(Increase) decrease in restricted cash | 0 | |||
Net cash provided by (used in) financing activities | 0 | 0 | ||
Increase (decrease) in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | ||
Cash and cash equivalents, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Significant accounting polici46
Significant accounting policies (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Aug. 12, 2014 | Dec. 31, 2013 | |
Net income (loss) | $ 16,438 | $ (7,657) | $ 19,016 | $ (9,478) | |||
Total equity | 241,895 | 241,895 | $ 236,378 | $ 24,524 | $ (48,096) | ||
Scenario, Previously Reported [Member] | |||||||
Net income (loss) | 16,316 | (7,306) | 18,734 | (9,070) | |||
Total equity | 242,703 | 242,703 | 237,440 | ||||
Restatement Adjustment [Member] | |||||||
Net income (loss) | 120 | (307) | 204 | (347) | |||
Total equity | (887) | (887) | (957) | ||||
Indirect Adjustment [Member] | |||||||
Net income (loss) | 2 | $ (44) | 78 | $ (61) | |||
Total equity | $ 79 | $ 79 | $ (105) |
Significant accounting polici47
Significant accounting policies (Details Textual) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Aug. 12, 2014 | |
Eliminated Liabilities [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | ||
SRV Joint Gas Ltd [Member] | |||
Eliminated Liabilities [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Advances to Affiliate | $ 9.1 | $ 9.8 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net | $ 29.4 | 28.4 | |
SRV Joint Gas Two Ltd [Member] | |||
Eliminated Liabilities [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
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 In48
Formation transactions and Initial Public Offering (Details) - IPO [Member] $ in Thousands | Aug. 12, 2014USD ($) |
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 In49
Formation transactions and Initial Public Offering (Details Textual) $ / shares in Units, $ in Thousands | Aug. 12, 2014USD ($)$ / sharesshares |
Formation Transactions and Initial Public Offering [Line Items] | |
Limited Partners Capital Account, Units Outstanding | shares | 11,040,000 |
IPO [Member] | |
Formation Transactions and Initial Public Offering [Line Items] | |
Exercise Of Option, Additional Common Units | shares | 1,440,000 |
Proceeds from Issuance Initial Public Offering | $ 203,467 |
Percentage of Partnership Interest | 42.00% |
Gross Proceeds From Initial Public offering | $ 220,800 |
Net Cash Proceeds Retained From Initial Public offering | $ 20,000 |
Sale of Stock, Price Per Share | $ / shares | $ 20 |
Payments to Fund Long-term Loans to Related Parties | $ 140,000 |
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 |
Limited Partners Capital Account, Units Outstanding | shares | 2,116,060 |
Percentage of incentive distribution rights | 100.00% |
Cash Available for Distributions | $ 43,500 |
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 | shares | 13,156,060 |
Incentive Distribution Right Target Distribution Per Unit | $ / shares | $ 0.388125 |
Hoegh LNG Holdings Ltd [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 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Time charter revenues | $ 11,065 | $ 0 | $ 22,577 | $ 0 | |
Construction contract revenues | 0 | 8,084 | 0 | 38,839 | |
Other revenues | 0 | 241 | 0 | 474 | |
Total revenues | 11,065 | 8,325 | 22,577 | 39,313 | |
Operating expenses | (3,814) | (3,565) | (8,173) | (7,745) | |
Construction contract expenses | 0 | (6,668) | 0 | (33,482) | |
Equity in earnings of joint ventures | 11,481 | (2,125) | 9,359 | (3,796) | |
Depreciation and amortization | (8) | (972) | (16) | (980) | |
Operating income (loss) | 18,724 | (5,005) | 23,747 | (6,690) | |
Gain (loss) on derivative instruments | (8) | 0 | 113 | 0 | |
Other financial income (expense), net | (2,219) | (2,452) | (4,692) | (2,555) | |
Income (loss) before tax | 16,497 | (7,457) | 19,168 | (9,245) | |
Income tax expense | (59) | (200) | (152) | (233) | |
Net income (loss) | 16,438 | (7,657) | 19,016 | (9,478) | |
Newbuildings | 0 | 0 | $ 0 | ||
Vessels, net of accumulated depreciation | 0 | 0 | 0 | ||
Net investment in direct financing lease | 294,695 | 294,695 | 295,363 | ||
Advances to joint ventures | 16,356 | 16,356 | 18,952 | ||
Total assets | 545,270 | 545,270 | 563,548 | ||
Accumulated losses of joint ventures | 50,270 | 50,270 | 59,630 | ||
Expenditures for newbuildings, vessels & equipment | 757 | 757 | 172,324 | ||
Expenditures for drydocking | 0 | 0 | 0 | ||
Principal repayment direct financing lease | 1,425 | 1,425 | 1,342 | ||
Majority Held FSRUs [Member] | |||||
Time charter revenues | 11,065 | 0 | 22,577 | 0 | |
Construction contract revenues | 0 | 8,084 | 0 | 38,839 | |
Other revenues | 241 | 474 | |||
Total revenues | 11,065 | 8,325 | 22,577 | 39,313 | |
Operating expenses | (2,299) | (2,668) | (5,094) | (4,031) | |
Construction contract expenses | 0 | (6,668) | 0 | (33,482) | |
Equity in earnings of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | 8,766 | (1,011) | 17,482 | 1,800 | |
Depreciation and amortization | (8) | (972) | (16) | (980) | |
Operating income (loss) | 8,758 | (1,983) | 17,467 | 820 | |
Gain (loss) on derivative instruments | (8) | 0 | 113 | 0 | |
Other financial income (expense), net | (4,339) | (2,887) | (8,941) | (3,456) | |
Income (loss) before tax | 4,411 | (4,870) | 8,639 | (2,636) | |
Income tax expense | (59) | (200) | (152) | (233) | |
Net income (loss) | 4,352 | (5,070) | 8,487 | (2,869) | |
Newbuildings | 0 | 0 | 0 | ||
Vessels, net of accumulated depreciation | 0 | 0 | 0 | ||
Net investment in direct financing lease | 294,695 | 294,695 | 295,363 | ||
Advances to joint ventures | 0 | 0 | 0 | ||
Total assets | 366,652 | 366,652 | 372,930 | ||
Accumulated losses of joint ventures | 0 | 0 | 0 | ||
Expenditures for newbuildings, vessels & equipment | 757 | 757 | 172,324 | ||
Expenditures for drydocking | 0 | 0 | 0 | ||
Principal repayment direct financing lease | 1,425 | 1,425 | 1,342 | ||
Joint Venture FSRUs [Member] | |||||
Time charter revenues | 11,141 | 10,101 | 21,309 | 20,350 | |
Construction contract revenues | 0 | 0 | 0 | 0 | |
Other revenues | 0 | 0 | |||
Total revenues | 11,141 | 10,101 | 21,309 | 20,350 | |
Operating expenses | (3,159) | (1,889) | (5,293) | (4,034) | |
Construction contract expenses | 0 | 0 | 0 | 0 | |
Equity in earnings of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | 7,982 | 8,212 | 16,016 | 16,316 | |
Depreciation and amortization | (2,309) | (2,288) | (4,486) | (4,573) | |
Operating income (loss) | 5,673 | 5,924 | 11,530 | 11,743 | |
Gain (loss) on derivative instruments | 9,871 | (3,755) | 5,939 | (6,909) | |
Other financial income (expense), net | (4,063) | (4,294) | (8,110) | (8,630) | |
Income (loss) before tax | 11,481 | (2,125) | 9,359 | (3,796) | |
Income tax expense | 0 | 0 | 0 | 0 | |
Net income (loss) | 11,481 | (2,125) | 9,359 | (3,796) | |
Newbuildings | 0 | 0 | 0 | ||
Vessels, net of accumulated depreciation | 287,645 | 287,645 | 279,670 | ||
Net investment in direct financing lease | 0 | 0 | 0 | ||
Advances to joint ventures | 0 | 0 | 0 | ||
Total assets | 308,461 | 308,461 | 300,327 | ||
Accumulated losses of joint ventures | 0 | 0 | 0 | ||
Expenditures for newbuildings, vessels & equipment | 10,861 | 10,861 | 2,358 | ||
Expenditures for drydocking | 1,600 | 1,600 | 0 | ||
Principal repayment direct financing lease | 0 | 0 | 0 | ||
Other Segments [Member] | |||||
Time charter revenues | 0 | 0 | 0 | 0 | |
Construction contract revenues | 0 | 0 | 0 | 0 | |
Other revenues | 0 | 0 | |||
Total revenues | 0 | 0 | 0 | 0 | |
Operating expenses | (1,515) | (897) | (3,079) | (3,714) | |
Construction contract expenses | 0 | 0 | 0 | 0 | |
Equity in earnings of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | (1,515) | (897) | (3,079) | (3,714) | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income (loss) | (1,515) | (897) | (3,079) | (3,714) | |
Gain (loss) on derivative instruments | 0 | 0 | 0 | 0 | |
Other financial income (expense), net | 2,120 | 435 | 4,249 | 901 | |
Income (loss) before tax | 605 | (462) | 1,170 | (2,813) | |
Income tax expense | 0 | 0 | 0 | 0 | |
Net income (loss) | 605 | (462) | 1,170 | (2,813) | |
Newbuildings | 0 | 0 | 0 | ||
Vessels, net of accumulated depreciation | 0 | 0 | 0 | ||
Net investment in direct financing lease | 0 | 0 | 0 | ||
Advances to joint ventures | 16,356 | 16,356 | 18,952 | ||
Total assets | 178,618 | 178,618 | 190,618 | ||
Accumulated losses of joint ventures | 50 | 50 | 50 | ||
Expenditures for newbuildings, vessels & equipment | 0 | 0 | 0 | ||
Expenditures for drydocking | 0 | 0 | 0 | ||
Principal repayment direct financing lease | 0 | 0 | 0 | ||
Operating Segments [Member] | |||||
Time charter revenues | 22,206 | 10,101 | 43,886 | 20,350 | |
Construction contract revenues | 0 | 8,084 | 0 | 38,839 | |
Other revenues | 241 | 474 | |||
Total revenues | 22,206 | 18,426 | 43,886 | 59,663 | |
Operating expenses | (6,973) | (5,454) | (13,466) | (11,779) | |
Construction contract expenses | 0 | (6,668) | 0 | (33,482) | |
Equity in earnings of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | 15,233 | 6,304 | 30,419 | 14,402 | |
Depreciation and amortization | (2,317) | (3,260) | (4,502) | (5,553) | |
Operating income (loss) | 12,916 | 3,044 | 25,918 | 8,849 | |
Gain (loss) on derivative instruments | 9,863 | (3,755) | 6,052 | (6,909) | |
Other financial income (expense), net | (6,282) | (6,746) | (12,802) | (11,185) | |
Income (loss) before tax | 16,497 | (7,457) | 19,168 | (9,245) | |
Income tax expense | (59) | (200) | (152) | (233) | |
Net income (loss) | 16,438 | (7,657) | 19,016 | (9,478) | |
Newbuildings | 0 | 0 | 0 | ||
Vessels, net of accumulated depreciation | 287,645 | 287,645 | 279,670 | ||
Net investment in direct financing lease | 294,695 | 294,695 | 295,363 | ||
Advances to joint ventures | 16,356 | 16,356 | 18,952 | ||
Total assets | 853,731 | 853,731 | 863,875 | ||
Accumulated losses of joint ventures | 50 | 50 | 50 | ||
Expenditures for newbuildings, vessels & equipment | 11,618 | 11,618 | 174,682 | ||
Expenditures for drydocking | 221 | 221 | 0 | ||
Principal repayment direct financing lease | 1,425 | 1,425 | 1,342 | ||
Eliminations [Member] | |||||
Time charter revenues | (11,141) | (10,101) | (21,309) | (20,350) | |
Construction contract revenues | 0 | 0 | 0 | 0 | |
Other revenues | 0 | 0 | |||
Operating expenses | 3,159 | 1,889 | 5,293 | 4,034 | |
Construction contract expenses | 0 | 0 | 0 | 0 | |
Equity in earnings of joint ventures | 11,481 | (2,125) | 9,359 | (3,796) | |
Depreciation and amortization | 2,309 | 2,288 | 4,486 | 4,573 | |
Gain (loss) on derivative instruments | (9,871) | 3,755 | (5,939) | 6,909 | |
Other financial income (expense), net | 4,063 | 4,294 | 8,110 | 8,630 | |
Income (loss) before tax | 0 | 0 | 0 | 0 | |
Income tax expense | 0 | 0 | 0 | 0 | |
Net income (loss) | 0 | $ 0 | 0 | $ 0 | |
Newbuildings | 0 | 0 | 0 | ||
Vessels, net of accumulated depreciation | (287,645) | (287,645) | (279,670) | ||
Net investment in direct financing lease | 0 | 0 | 0 | ||
Advances to joint ventures | 0 | 0 | 0 | ||
Total assets | (308,461) | (308,461) | (300,327) | ||
Accumulated losses of joint ventures | (50,320) | (50,320) | (59,680) | ||
Expenditures for newbuildings, vessels & equipment | (10,861) | (10,861) | (2,358) | ||
Expenditures for drydocking | (1,600) | (1,600) | 0 | ||
Principal repayment direct financing lease | $ 0 | $ 0 | $ 0 |
Segment information (Details Te
Segment information (Details Textual) | Jun. 30, 2015 | Jun. 30, 2014 |
Equity Method Investment, Ownership Percentage | 50.00% | |
GDF Suez Cape Ann [Member] | GDF Suez Neptune [Member] | ||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Construction contract revenue52
Construction contract revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Construction Contract Revenues [Line Items] | ||||
Construction contract revenue | $ 0 | $ 8,084 | $ 0 | $ 38,839 |
Construction contract expenses | 0 | (6,668) | 0 | (33,482) |
Recognized contract margin (loss) | $ 0 | $ 1,416 | $ 0 | $ 5,357 |
Construction contract revenue53
Construction contract revenues (Details Textual) | Dec. 31, 2014 | Jun. 30, 2014 |
Mooring Project [Member] | ||
Construction Contract Revenues [Line Items] | ||
Percentage Of Project Completed | 100.00% | 88.00% |
Financial income (expense) (Det
Financial income (expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest income | $ 2,425 | $ 435 | $ 4,852 | $ 901 |
Interest expense: | ||||
Interest expense | (2,759) | (2,160) | (5,613) | (4,369) |
Commitment fees | (301) | (364) | (599) | (1,220) |
Amortization of debt issuance cost | (650) | (1,913) | (1,296) | (2,399) |
Capitalized interest | 0 | 2,181 | 0 | 5,447 |
Total interest expense | (3,710) | (2,256) | (7,510) | (2,354) |
Gain (loss) on derivative instruments | (8) | 0 | 113 | 0 |
Other items, net: | ||||
Foreign exchange gain (loss) | (246) | (42) | (672) | (63) |
Bank charges and fees and other | (13) | 0 | (14) | (1) |
Withholding tax on interest expense and other | (675) | (589) | (1,348) | (1,038) |
Total other items, net | (934) | (631) | (2,034) | (1,102) |
Total financial income (expense), net | $ (2,227) | $ (2,452) | $ (4,579) | $ (2,555) |
Income tax (Details Textual)
Income tax (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Expense (Benefit) | $ 59 | $ 200 | $ 152 | $ 233 |
Advances to joint ventures (Det
Advances to joint ventures (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Advances to Joint Ventures [Line Items] | ||
Current portion of advances to joint ventures | $ 6,624 | $ 6,665 |
Long-term advances to joint ventures | 9,731 | 12,287 |
Advances/shareholder loans to joint ventures | $ 16,356 | $ 18,952 |
Advances to joint ventures (D57
Advances to joint ventures (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 16,356 | $ 18,952 |
SRV Joint Gas Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | 8,500 | 9,800 |
SRV Joint Gas Two Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 7,900 | $ 9,100 |
Long-term debt (Details)
Long-term debt (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $ 202,802 | $ 212,333 |
Less: Current portion of long-term debt | (19,062) | (19,062) |
Long-term debt | 183,740 | 193,271 |
Export credit tranche [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 162,241 | 168,640 |
FSRU tranche [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 40,561 | $ 43,693 |
Long-term debt (Details Textual
Long-term debt (Details Textual) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
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; 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 $20 million. |
Secured Debt [Member] | Old Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Covenant Description | the remaining cash being distributable only on certain dates and subject to satisfaction of certain conditions, including meeting a 1.20 historical debt service coverage ratio, no default or event of default then continuing or resulting from such distribution and the guarantor not being in breach of the financial covenants applicable to it |
Investments in joint ventures60
Investments in joint ventures (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Accumulated losses of joint ventures | $ 50,270 | $ 59,630 |
Investments in joint ventures61
Investments in joint ventures (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Time charter revenues | $ 11,065 | $ 0 | $ 22,577 | $ 0 | ||
Total revenues | 11,065 | 8,325 | 22,577 | 39,313 | ||
Operating expenses | (3,814) | (3,565) | (8,173) | (7,745) | ||
Depreciation and amortization | (8) | (972) | (16) | (980) | ||
Operating income | 18,724 | (5,005) | 23,747 | (6,690) | ||
Unrealized gain (loss) on derivative instruments | (8) | 0 | 113 | 0 | ||
Net income (loss) | $ 16,438 | (7,657) | $ 19,016 | (9,478) | ||
Share of joint ventures owned | 50.00% | 50.00% | ||||
Equity in earnings (losses) of joint ventures | $ 11,481 | (2,125) | $ 9,359 | (3,796) | ||
Cash and cash equivalents | 29,373 | 96,862 | 29,373 | 96,862 | $ 30,477 | $ 108 |
Other current assets | 148,713 | 148,713 | 149,906 | |||
Total current assets | 202,677 | 202,677 | 214,882 | |||
Restricted cash | 15,116 | 15,116 | 15,184 | |||
Vessels, net of accumulated depreciation | 0 | 0 | 0 | |||
Other long-term assets | 13,904 | 13,904 | 15,449 | |||
Total long-term assets | 342,593 | 342,593 | 348,666 | |||
Current portion of long-term debt | 19,062 | 19,062 | 19,062 | |||
Amounts and loans due to owners and affiliates | 301 | 301 | 467 | |||
Derivative financial instruments | 4,406 | 4,406 | 4,676 | |||
Other current liabilities | 27,211 | 27,211 | 31,088 | |||
Total current liabilities | 47,379 | 47,379 | 47,519 | |||
Long-term debt | 183,740 | 183,740 | 193,271 | |||
Derivate financial liabilities | 3,988 | 3,988 | 4,544 | |||
Other long-term liabilities | 17,998 | 17,998 | 22,206 | |||
Total long-term liabilities | 255,996 | 255,996 | 279,651 | |||
Accumulated losses of joint ventures | (50,270) | (50,270) | $ (59,630) | |||
Srv Joint Gas Limited And Srv Joint Gas Two Limited [Member] | ||||||
Time charter revenues | 22,281 | 20,201 | 42,618 | 40,699 | ||
Total revenues | 22,281 | 20,201 | 42,618 | 40,699 | ||
Operating expenses | (6,317) | (3,778) | (10,586) | (8,067) | ||
Depreciation and amortization | (4,772) | (4,730) | (9,279) | (9,454) | ||
Operating income | 11,192 | 11,693 | 22,753 | 23,178 | ||
Unrealized gain (loss) on derivative instruments | 19,742 | (7,510) | 11,878 | (13,818) | ||
Other financial expense, net | (8,126) | (8,587) | (16,220) | (17,259) | ||
Net income (loss) | $ 22,808 | $ (4,405) | $ 18,411 | $ (7,900) | ||
Share of joint ventures owned | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |
Share of joint ventures net income (loss) before eliminations | $ 11,404 | $ (2,203) | $ 9,206 | $ (3,950) | ||
Eliminations | 77 | 78 | 153 | 154 | ||
Equity in earnings (losses) of joint ventures | 11,481 | $ (2,125) | 9,359 | $ (3,796) | ||
Cash and cash equivalents | 11,302 | 11,302 | $ 10,719 | |||
Other current assets | 3,231 | 3,231 | 3,317 | |||
Total current assets | 14,533 | 14,533 | 14,036 | |||
Restricted cash | 25,104 | 25,104 | 25,104 | |||
Vessels, net of accumulated depreciation | 593,536 | 593,536 | 577,897 | |||
Other long-term assets | 1,994 | 1,994 | 2,174 | |||
Total long-term assets | 620,634 | 620,634 | 605,175 | |||
Current portion of long-term debt | 21,420 | 21,420 | 20,768 | |||
Amounts and loans due to owners and affiliates | 13,937 | 13,937 | 14,516 | |||
Derivative financial instruments | 23,123 | 23,123 | 23,887 | |||
Other current liabilities | 22,631 | 22,631 | 8,278 | |||
Total current liabilities | 81,111 | 81,111 | 67,449 | |||
Long-term debt | 490,493 | 490,493 | 501,369 | |||
Loans due to owners and affiliates | 19,463 | 19,463 | 24,575 | |||
Derivate financial liabilities | 90,795 | 90,795 | 101,910 | |||
Other long-term liabilities | 35,599 | 35,599 | 24,612 | |||
Total long-term liabilities | 636,350 | 636,350 | 652,466 | |||
Net liabilities | (82,294) | (82,294) | (100,704) | |||
Share of joint ventures net liabilities before eliminations | (41,147) | (41,147) | (50,352) | |||
Eliminations | (9,123) | (9,123) | (9,278) | |||
Accumulated losses of joint ventures | $ (50,270) | $ (50,270) | $ (59,630) |
Investments in joint ventures62
Investments in joint ventures (Details Textual) | Jun. 30, 2015 |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Operating expenses | |||||
Vessel operating expenses | $ (1,599) | $ (759) | $ (3,859) | $ (759) | |
Financial (income) expense | |||||
Interest income from joint ventures and demand note | 2,425 | 435 | 4,852 | 901 | |
Interest expense and commitment fees to Höegh LNG | (3,710) | (2,256) | (7,510) | (2,354) | |
Total | 16,438 | (7,657) | 19,016 | (9,478) | |
Hoegh LNG and Subsidiaries [Member] | |||||
Operating expenses | |||||
Vessel operating expenses | [1] | (1,224) | (1,145) | (2,484) | (1,145) |
Hours and overhead | [2] | (357) | (707) | (674) | (1,379) |
Allocated administrative expenses | [3] | 0 | (1,078) | 0 | (4,043) |
Construction contract expense: supervision cost | [4] | 0 | (282) | 0 | (594) |
Construction contract expense: capitalized interest | [5] | 0 | (89) | 0 | (690) |
Financial (income) expense | |||||
Interest income from joint ventures and demand note | [6] | 2,425 | 435 | 4,852 | 901 |
Interest expense and commitment fees to Höegh LNG | [7] | (301) | (245) | (599) | (326) |
Total | $ 543 | $ (3,111) | $ 1,095 | $ (7,276) | |
[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 $85 million revolving credit facility. Refer to “Amounts, loans and promissory notes due to owners and affiliates” below. Refer to 5) above which describes the interest expense, which was capitalized. |
Related party transactions (D64
Related party transactions (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Total | $ 0 | $ 0 | |
Hoegh LNG and Subsidiaries [Member] | |||
Related Party Transaction [Line Items] | |||
Newbuilding supervision cost | [1] | 0 | 1,228 |
Interest expense capitalized from Höegh LNG | [2] | 0 | 1,464 |
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 (D65
Related party transactions (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Demand note due from owner | $ 142,089 | $ 143,241 |
Related party transactions (D66
Related party transactions (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Amounts due to owners and affiliates | $ 2,290 | $ 6,019 |
Related party transactions (D67
Related party transactions (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Loans and promissory notes due to owners and affiliates | $ 301 | $ 467 |
Related party transactions (D68
Related party transactions (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||||
Indemnification Under the Omnibus Agreement | $ 3,100 | |||
Due from Officers or Stockholders, Current | $ 142,089 | $ 142,089 | $ 143,241 | |
Scenario, Forecast [Member] | ||||
Related Party Transaction [Line Items] | ||||
Indemnification Under the Omnibus Agreement | $ 1,200 | |||
Partnership Interest [Member] | ||||
Related Party Transaction [Line Items] | ||||
Indemnification Under the Omnibus Agreement | $ 6,200 | |||
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 | $ 85,000 | $ 85,000 | |
Line of Credit Facility, Commitment Fee Percentage | 1.40% | |||
Non Budgeted Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Indemnification Under the Omnibus Agreement | 1,100 | $ 4,200 | ||
Omnibus Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Environmental Indemnifications | 5,000 | $ 5,000 | ||
Environmental Indemnifications, Description | 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. | |||
Hoegh LNG and Subsidiaries [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest Income, Related Party | $ 2,069 | 3,241 | ||
Related Party Transaction, Rate | 5.88% | |||
Due from Officers or Stockholders, Current | $ 140,000 | $ 140,000 | $ 140,000 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 29,373 | $ 30,477 | $ 96,862 | $ 108 |
Restricted cash | 24,579 | 37,119 | ||
Derivative financial instruments | (8,394) | (9,220) | ||
Advances (shareholder loans) to joint ventures | 16,356 | 18,952 | ||
Demand note due from owner | 142,089 | 143,241 | ||
Current amounts due to owners and affiliates | (2,290) | (6,019) | ||
Loans and promissory notes due to owners and affiliates | (301) | (467) | ||
Lampung facility | (202,802) | (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 | 29,373 | 30,477 | ||
Restricted cash | 24,579 | 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 | (8,394) | (9,220) | ||
Advances (shareholder loans) to joint ventures | 16,604 | 19,629 | ||
Demand note due from owner | 142,089 | 143,241 | ||
Current amounts due to owners and affiliates | (2,290) | (6,019) | ||
Loans and promissory notes due to owners and affiliates | (301) | (467) | ||
Lampung facility | $ (204,921) | $ (214,636) |
Financial Instruments (Details
Financial Instruments (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Advances/ loans to joint ventures | $ 16,356 | $ 18,952 |
Demand note due from owner | 142,089 | 143,241 |
Payment activity [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Advances/ loans to joint ventures | 16,355 | 18,952 |
Demand note due from owner | $ 142,089 | $ 143,241 |
Financial Instruments (Detail71
Financial Instruments (Details Textual) $ in Millions | Jun. 30, 2015USD ($) |
Lampung Facility [Member] | |
Financial Instruments [Line Items] | |
Long-term Line of Credit | $ 299 |
Risk management and concentra72
Risk management and concentrations of risk (Details) - Interest Rate Swap [Member] $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($) | [1] | |
Derivative [Line Items] | ||
Description of Interest Rate Derivative Activities | LIBOR | |
Derivative, Notional Amount | $ 202,802 | |
Derivative Liability, Fair Value, Gross Liability | $ (8,394) | |
Derivative, Description of Terms | Sept 2,026 | |
Derivative, Fixed Interest Rate | 2.80% | [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 concentra73
Risk management and concentrations of risk (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Current liabilities: derivative financial instruments | $ (4,406) | $ (4,676) |
Long-term liabilities: derivative financial instruments | (3,988) | (4,544) |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Current liabilities: derivative financial instruments | (4,406) | (4,676) |
Long-term liabilities: derivative financial instruments | $ (3,988) | $ (4,544) |
Risk management and concentra74
Risk management and concentrations of risk (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Loss on derivative financial instruments | $ (8) | $ 0 | $ 113 | $ 0 |
Interest Rate Swap [Member] | ||||
Ineffective portion of cash flow hedge | 0 | 0 | ||
Amortization of amount excluded from hedge effectiveness | 206 | 541 | ||
Reclassification from accumulated other comprehensive income | (214) | (428) | ||
Loss on derivative financial instruments | (8) | 113 | ||
Realized Gains (Losses) [Member] | Interest Rate Swap [Member] | ||||
Ineffective portion of cash flow hedge | 0 | 0 | ||
Amortization of amount excluded from hedge effectiveness | 0 | 0 | ||
Reclassification from accumulated other comprehensive income | 0 | 0 | ||
Loss on derivative financial instruments | 0 | 0 | ||
Unrealized Gains (Losses) [Member] | Interest Rate Swap [Member] | ||||
Ineffective portion of cash flow hedge | 0 | 0 | ||
Amortization of amount excluded from hedge effectiveness | 206 | 541 | ||
Reclassification from accumulated other comprehensive income | (214) | (428) | ||
Loss on derivative financial instruments | $ (8) | $ 113 |
Risk management and concentra75
Risk management and concentrations of risk (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Beginning Balance, Before tax gains (losses) | $ (10,159) | $ 0 | ||
Effective portion of unrealized loss on cash flow hedge,Before tax gains (losses) | 286 | (7,316) | ||
Reclassification of amortization of cash flow hedge to earnings ,Before tax gains (losses) | 428 | 0 | ||
Other comprehensive income for period, Before tax gains (losses) | $ 2,981 | $ (3,850) | 714 | (7,316) |
Ending Balance, Before tax gains (losses) | (9,445) | (7,316) | (9,445) | (7,316) |
Beginning Balance, Tax benefit (expense) | 1,984 | 0 | ||
Effective portion of unrealized loss on cash flow hedge, Tax benefit (expense) | 0 | 1,829 | ||
Reclassification of amortization of cash flow hedge to earnings, Tax benefit (expense) | (203) | 0 | ||
Other comprehensive income for period, Tax benefit (expense) | (118) | 963 | (203) | 1,829 |
Ending Balance, Tax benefit (expense) | 1,781 | 1,829 | 1,781 | 1,829 |
Beginning Balance, Net of Tax | (8,175) | 0 | ||
Effective portion of unrealized loss on cash flow hedge, Net of tax | 286 | (5,487) | ||
Reclassification of amortization of cash flow hedge to earnings, Net of tax | 225 | 0 | ||
Other comprehensive income for period, Net of tax | 511 | (5,487) | ||
Ending Balance, Net of Tax | (7,664) | (5,487) | (7,664) | (5,487) |
Beginning Balance, Accumulated OCI | (8,175) | 0 | ||
Effective portion of unrealized loss on cash flow hedge, Accumulated OCI | 286 | (5,487) | ||
Reclassification of amortization of cash flow hedge to earnings, Accumulated OCI | 225 | 0 | ||
Other comprehensive income (loss) for period, Accumulated OCI | 511 | (5,487) | ||
Ending Balance, Accumulated OCI | $ (7,664) | $ (5,487) | $ (7,664) | $ (5,487) |
Commitments and contingencies (
Commitments and contingencies (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Oct. 31, 2014 | Sep. 30, 2014 | Oct. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Contract Revenue Cost | $ 0 | $ 6,668 | $ 0 | $ 33,482 | ||||
Indemnification Under the Omnibus Agreement | $ 3,100 | |||||||
Contractual Obligation | $ 500 | $ 500 | ||||||
Restatement Adjustment [Member] | ||||||||
Deferred Revenue, Revenue Recognized | $ 4,900 | |||||||
Construction Contracts [Member] | ||||||||
Indemnification Under the Omnibus Agreement | 2,000 | |||||||
PGN [Member] | ||||||||
Contract Revenue Cost | $ 7,100 | |||||||
Indemnification Under the Omnibus Agreement | $ 6,700 | $ 6,500 | $ 2,000 |
Supplemental cash flow inform77
Supplemental cash flow information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental disclosure of non-cash financing activities: | ||
Non-cash capital contribution from conversion of debt | $ 0 | $ 101,500 |
Earning per unit and cash dis78
Earning per unit and cash distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Net income attributable to the unitholders of Höegh LNG Partners LP | $ 16,438 | $ (7,657) | $ 19,016 | $ (9,478) | |
Less: Dividends paid or to be paid | [1] | (8,880) | (17,760) | ||
Over (under) distributed earnings | 7,558 | $ 1,256 | |||
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] | |||||
Over (under) distributed earnings | $ 3,171 | $ 527 | |||
Basic and diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 11,040,000 | 11,040,000 | |||
Basic and diluted earnings per unit: | |||||
Earnings Per Share, Basic and Diluted | $ 0.62 | $ 0.72 | |||
Common units Höegh LNG [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Over (under) distributed earnings | $ 608 | $ 101 | |||
Basic and diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 2,116,000 | 2,116,000 | |||
Basic and diluted earnings per unit: | |||||
Earnings Per Share, Basic and Diluted | $ 0.62 | $ 0.72 | |||
Subordinated units Höegh LNG [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Over (under) distributed earnings | $ 3,779 | $ 628 | |||
Basic and diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 13,156,000 | 13,156,060 | |||
Basic and diluted earnings per unit: | |||||
Earnings Per Share, Basic and Diluted | $ 0.62 | $ 0.72 | |||
[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 dis79
Earning per unit and cash distributions (Details Textual) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Jun. 30, 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 | $ 0.388125 | ||
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 | $ 0.421875 | ||
Distribution Percentage To All Unit Holders | 85.00% | ||
Distribution Percentage To Holders Of Incentive Distribution Rights | 15.00% | ||
Third Target Distribution [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Incentive Distribution Right Target Distribution Per Unit | $ 0.50625 | ||
Distribution Percentage To All Unit Holders | 75.00% | ||
Distribution Percentage To Holders Of Incentive Distribution Rights | 25.00% | ||
After Target Distribution [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Distribution Percentage To All Unit Holders | 50.00% | ||
Distribution Percentage To Holders Of Incentive Distribution Rights | 50.00% | ||
Minimum Quarterly Distribution [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Incentive Distribution Right Target Distribution Per Unit | $ 0.3375 | $ 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 | 11,040,000 | |
Incentive Distribution Right Target Distribution Per Unit | $ 0.3375 | ||
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 | 13,156,060 | |
Incentive Distribution Right Target Distribution Per Unit | $ 0.3375 | ||
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 | 2,116,000 |
Subsequent events (Details Text
Subsequent events (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Nov. 13, 2015 | Aug. 14, 2015 | Aug. 12, 2015 | Jun. 30, 2015 |
Subsequent Event [Line Items] | ||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 17,761 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ 0.3375 | $ 0.3375 | ||
Distribution Made To Limited Partner Annualized Basis Per Unit | $ 1.35 | $ 1.35 | ||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 8,900 | $ 8,900 | ||
Subsequent Event [Member] | FSRU Hoegh Gallant [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Combination, Consideration Transferred | $ 370,000 | |||
Debt Instrument, Term | 18 months | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
Subsequent Event [Member] | FSRU Hoegh Gallant [Member] | Notes Payable, Other Payables [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 140,000 | |||
Subsequent Event [Member] | FSRU Hoegh Gallant [Member] | Seller Credit [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Combination, Consideration Transferred, Liabilities Incurred | 47,000 | |||
Subsequent Event [Member] | FSRU Hoegh Gallant [Member] | Interest Rate Swaption [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 183,000 |