Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2017shares | |
Document Information [Line Items] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Entity Registrant Name | Hoegh LNG Partners LP |
Entity Central Index Key | 1,603,016 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Trading Symbol | HMLP |
Entity Common Stock, Shares Outstanding | 19,764,904 |
CONDENSED INTERIM CONSOLIDATED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUES | ||||
Time charter revenues | $ 35,856 | $ 23,345 | $ 105,957 | $ 67,799 |
Total revenues | 35,856 | 23,345 | 105,957 | 67,799 |
OPERATING EXPENSES | ||||
Vessel operating expenses | (5,909) | (4,674) | (17,714) | (12,708) |
Construction contract expenses | 0 | 0 | (151) | (315) |
Administrative expenses | (2,067) | (2,336) | (7,289) | (7,036) |
Depreciation and amortization | (5,264) | (2,647) | (15,789) | (7,912) |
Total operating expenses | (13,240) | (9,657) | (40,943) | (27,971) |
Equity in earnings (losses) of joint ventures | (7,321) | 6,565 | (962) | (2,010) |
Operating income (loss) | 15,295 | 20,253 | 64,052 | 37,818 |
FINANCIAL INCOME (EXPENSE), NET | ||||
Interest income | 98 | 192 | 341 | 697 |
Interest expense | (7,739) | (6,283) | (23,227) | (19,043) |
Gain (loss) on derivative instruments | 571 | 517 | 1,481 | 1,178 |
Other items, net | (633) | (778) | (2,857) | (2,779) |
Total financial income (expense), net | (7,703) | (6,352) | (24,262) | (19,947) |
Income (loss) before tax | 7,592 | 13,901 | 39,790 | 17,871 |
Income tax expense | (2,185) | (476) | (5,982) | (1,426) |
Net income (loss) | 5,407 | 13,425 | 33,808 | 16,445 |
Non-controlling interest in net income | 2,899 | 0 | 8,455 | 0 |
Partners’ interest in net income (loss) | $ 2,508 | $ 13,425 | 25,353 | $ 16,445 |
Common unit public [Member] | ||||
FINANCIAL INCOME (EXPENSE), NET | ||||
Net income (loss) | $ 13,131 | |||
Earnings per unit | ||||
Earnings Per Share (basic and diluted) | $ 0.07 | $ 0.51 | $ 0.74 | $ 0.61 |
Common unit Hoegh LNG [Member] | ||||
FINANCIAL INCOME (EXPENSE), NET | ||||
Net income (loss) | $ 1,694 | |||
Earnings per unit | ||||
Earnings Per Share (basic and diluted) | 0.09 | 0.51 | $ 0.80 | 0.63 |
Subordinated unit [Member] | ||||
FINANCIAL INCOME (EXPENSE), NET | ||||
Net income (loss) | $ 10,528 | |||
Earnings per unit | ||||
Earnings Per Share (basic and diluted) | $ 0.09 | $ 0.51 | $ 0.80 | $ 0.63 |
CONDENSED INTERIM CONSOLIDATED3
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) | $ 5,407 | $ 13,425 | $ 33,808 | $ 16,445 |
Unrealized gains (losses) on cash flow hedge | 872 | 2,745 | 983 | (5,642) |
Income tax benefit (expense) | (84) | (104) | (259) | (250) |
Other comprehensive income (loss) | 788 | 2,641 | 724 | (5,892) |
Comprehensive income (loss) | 6,195 | 16,066 | 34,532 | 10,553 |
Non-controlling interest in comprehensive income | 3,020 | 0 | 8,561 | 0 |
Partners’ interest in comprehensive income (loss) | $ 3,175 | $ 16,066 | $ 25,971 | $ 10,553 |
CONDENSED INTERIM CONSOLIDATED4
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 18,566 | $ 18,915 |
Restricted cash | 10,203 | 8,055 |
Trade receivables | 7,637 | 2,088 |
Amounts due from affiliates | 3,780 | 4,237 |
Advances to joint ventures | 0 | 6,275 |
Inventory | 649 | 697 |
Current portion of net investment in direct financing lease | 3,723 | 3,485 |
Prepaid expenses and other receivables | 1,395 | 609 |
Total current assets | 45,953 | 44,361 |
Long-term assets | ||
Restricted cash | 13,922 | 14,154 |
Cash designated for acquisition | 0 | 91,768 |
Vessels, net of accumulated depreciation | 683,998 | 342,591 |
Other equipment | 626 | 592 |
Intangibles and goodwill | 25,285 | 16,241 |
Advances to joint ventures | 3,198 | 943 |
Net investment in direct financing lease | 283,803 | 286,626 |
Long-term deferred tax asset | 150 | 791 |
Other long-term assets | 9,456 | 12,400 |
Total long-term assets | 1,020,438 | 766,106 |
Total assets | 1,066,391 | 810,467 |
Current liabilities | ||
Current portion of long-term debt | 45,458 | 32,208 |
Trade payables | 389 | 972 |
Amounts due to owners and affiliates | 799 | 1,374 |
Value added and withholding tax liability | 1,021 | 796 |
Derivative instruments | 3,287 | 3,534 |
Accrued liabilities and other payables | 20,921 | 18,932 |
Total current liabilities | 71,875 | 57,816 |
Long-term liabilities | ||
Accumulated losses of joint ventures | 26,848 | 25,886 |
Long-term debt | 446,011 | 300,440 |
Revolving credit and seller’s credit due to owners and affiliates | 58,705 | 43,005 |
Derivative instruments | 3,936 | 3,511 |
Long-term tax liability | 2,547 | 2,228 |
Long-term deferred tax liability | 3,915 | 1,556 |
Other long-term liabilities | 10,413 | 11,235 |
Total long-term liabilities | 552,375 | 387,861 |
Total liabilities | 624,250 | 445,677 |
EQUITY | ||
Accumulated other comprehensive income (loss) | (5,118) | (5,736) |
Total partners’ capital | 350,899 | 364,790 |
Non-controlling interest | 91,242 | 0 |
Total equity | 442,141 | 364,790 |
Total liabilities and equity | 1,066,391 | 810,467 |
Common units public [Member] | ||
EQUITY | ||
Total partners’ capital | 312,083 | 321,091 |
Total equity | 312,083 | 321,091 |
Common units Hoegh LNG [Member] | ||
EQUITY | ||
Total partners’ capital | 6,115 | 6,849 |
Total equity | 6,115 | 6,849 |
Subordinated units [Member] | ||
EQUITY | ||
Total partners’ capital | 37,819 | 42,586 |
Total equity | $ 37,819 | $ 42,586 |
CONDENSED INTERIM CONSOLIDATED5
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL - USD ($) $ in Thousands | Total | Common units public [Member] | Common units Hoegh LNG [Member] | Subordinated units [Member] | Accumulated Other Comprehensive Income [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2015 | $ 249,798 | $ 209,372 | $ 6,604 | $ 41,063 | $ (7,241) | $ 0 |
Net income | 41,377 | 18,133 | 3,221 | 20,023 | 0 | 0 |
Cash distributions to unitholders | (43,877) | (18,225) | (3,554) | (22,098) | 0 | 0 |
Cash contribution from Höegh LNG | 3,843 | 0 | 532 | 3,311 | 0 | 0 |
Other comprehensive income loss | 1,505 | 0 | 0 | 0 | 1,505 | 0 |
Net proceeds from issuance of common units | 111,529 | 111,529 | 0 | 0 | 0 | 0 |
Issuance of units for Board of Directors' fees | 189 | 189 | 0 | 0 | 0 | 0 |
Other and contributions from owners | 426 | 93 | 46 | 287 | 0 | 0 |
Balance at Dec. 31, 2016 | 364,790 | 321,091 | 6,849 | 42,586 | (5,736) | 0 |
Non-controlling interest acquired from the purchase of the Höegh Grace entities | 88,561 | 0 | 0 | 0 | 0 | 88,561 |
Net income | 33,808 | 13,131 | 1,694 | 10,528 | 8,455 | |
Cash distributions to unitholders | (42,595) | (22,450) | (2,791) | (17,354) | 0 | 0 |
Cash distributions to non-controlling interest | (5,880) | 0 | 0 | 0 | 0 | (5,880) |
Cash contribution from Höegh LNG | 2,075 | 0 | 315 | 1,760 | 0 | 0 |
Other comprehensive income loss | 724 | 0 | 0 | 0 | 618 | 106 |
Issuance of units for Board of Directors' fees | 189 | 189 | 0 | 0 | 0 | 0 |
Other and contributions from owners | 469 | 122 | 48 | 299 | 0 | 0 |
Balance at Sep. 30, 2017 | $ 442,141 | $ 312,083 | $ 6,115 | $ 37,819 | $ (5,118) | $ 91,242 |
CONDENSED INTERIM CONSOLIDATED6
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING ACTIVITIES | ||||
Net income (loss) | $ 5,407 | $ 13,425 | $ 33,808 | $ 16,445 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 5,264 | 2,647 | 15,789 | 7,912 |
Equity in losses (earnings) of joint ventures | 7,321 | (6,565) | 962 | 2,010 |
Changes in accrued interest income on advances to joint ventures | 1,425 | 37 | 4,020 | (266) |
Amortization of deferred debt issuance cost and fair value of debt assumed | 207 | 503 | 629 | 1,546 |
Amortization in revenue for above market contract | 915 | 604 | 2,716 | 1,800 |
Changes in accrued interest expense | (17) | 16 | (113) | (205) |
Net currency exchange losses (gains) | (6) | 47 | 915 | 20 |
Unrealized loss (gain) on derivative instruments | (571) | (517) | (1,481) | (1,178) |
Non-cash revenue: tax paid directly by charterer | (200) | 0 | (632) | 0 |
Non-cash income tax expense: tax paid directly by charterer | 200 | 0 | 632 | 0 |
Deferred tax expense and uncertain tax position | 1,082 | 390 | 3,060 | 1,201 |
Issuance of units for Board of Directors' fees | 0 | 0 | 189 | 189 |
Other adjustments | 156 | 72 | 466 | 137 |
Changes in working capital: | ||||
Restricted cash | 1,715 | 3,284 | (2,129) | 3,842 |
Trade receivables | (918) | 21 | (1,103) | (6) |
Inventory | 17 | 21 | 48 | 54 |
Prepaid expenses and other receivables | (452) | 150 | (451) | 159 |
Trade payables | 78 | 187 | (796) | (690) |
Amounts due to owners and affiliates | 573 | (395) | (740) | (1,569) |
Value added and withholding tax liability | 1,063 | (250) | 2,972 | 2,196 |
Accrued liabilities and other payables | 1,524 | 836 | 777 | 352 |
Net cash provided by (used in) operating activities | 24,783 | 14,513 | 59,538 | 33,949 |
INVESTING ACTIVITIES | ||||
Expenditure for purchase of Hoegh Grace entities | 0 | 0 | (92,175) | 0 |
Cash acquired in the purchase of the Hoegh Grace entities | 0 | 0 | 3,774 | 0 |
Decrease in restricted cash designated for purchase of the Hoegh Grace entities | 0 | 0 | 91,768 | 0 |
Expenditure for vessel and other equipment | (5) | 0 | (19) | (537) |
Receipts from repayment of principal on advances to joint ventures | 0 | 1,525 | 0 | 5,495 |
Receipts from repayment of principal on direct financing lease | 881 | 806 | 2,585 | 2,367 |
Net cash provided by (used in) investing activities | 876 | 2,331 | 5,933 | 7,325 |
FINANCING ACTIVITIES | ||||
Proceeds from loans and promissory notes due to owners and affiliates | 4,000 | 5,422 | 15,700 | 5,422 |
Repayment of long-term debt | (11,365) | (8,052) | (34,094) | (24,157) |
Repayment of customer loan for funding of value added liability on import | 0 | (2,513) | (1,258) | (5,382) |
Cash distributions to unitholders | (14,440) | (10,971) | (42,595) | (32,905) |
Cash distributions to non-controlling interest | (1,960) | 0 | (5,880) | 0 |
Proceeds from indemnifications received from Hoegh LNG | 1,066 | 1,888 | 2,075 | 3,145 |
(Increase) decrease in restricted cash | 154 | 181 | 232 | 540 |
Net cash provided by (used in) financing activities | (22,545) | (14,045) | (65,820) | (53,337) |
Increase (decrease) in cash and cash equivalents | 3,114 | 2,799 | (349) | (12,063) |
Cash and cash equivalents, beginning of period | 15,452 | 18,006 | 18,915 | 32,868 |
Cash and cash equivalents, end of period | $ 18,566 | $ 20,805 | $ 18,566 | $ 20,805 |
Description of business
Description of business | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | Höegh LNG Partners LP (the “Partnership”) is a publicly traded Marshall Islands limited partnership initially formed for the purpose of acquiring from Höegh LNG Holdings Ltd. (“Höegh LNG”) their interests in Hoegh LNG Lampung Pte. Ltd., PT Hoegh LNG Lampung (the owner of the PGN FSRU Lampung Neptune GDF Suez Cape Ann Under the partnership agreement, the general partner has irrevocably delegated to the Partnership’s board of directors the power to oversee and direct the operations of, manage and determine the strategies and policies of the Partnership. Four of the seven board members were elected by the common unitholders at the Partnership’s first annual meeting of unitholders held on September 24, 2014. As a result, Höegh LNG, as the owner of the general partner, does not have the power to control the Partnership’s board of directors or the Partnership, and the Partnership is not considered to be under the control of Höegh LNG for United States generally accepted accounting principles (“US GAAP”) purposes. Therefore, the sale of a business from Höegh LNG to the Partnership is a change of control. As a result, the Partnership accounts for acquisitions of businesses under the purchase method of accounting and not as transfers of entities under common control. In December 2016, the Partnership issued and sold 6,588,389 51 Höegh Grace Höegh Grace On January 3, 2017, the Partnership closed the acquisition of a 51 Höegh Grace Höegh Grace On October 5, 2017, the Partnership issued 4,600,000 8.75 Höegh Gallant facility. The remainder of the net proceeds are expected to be used for working capital needs and the acquisition of the remaining 49 Höegh The Partnership’s 50 PGN FSRU Lampung Höegh Gallant Höegh Grace Neptune GDF Suez Cape Ann PGN FSRU Lampung Höegh Gallant Höegh Grace The Neptune GDF Suez Cape Ann PGN FSRU Lampung Höegh Gallant Höegh Gallant The Höegh Grace 10 20 10 15 10 Jurisdiction of Incorporation Name or Registration Purpose Höegh LNG Partners LP Marshall Islands Holding Company Höegh LNG Partners Operating LLC (100% owned) Marshall Islands Holding Company Hoegh LNG Services Ltd (100% owned) United Kingdom Administration Services Company Hoegh LNG Lampung Pte. Ltd. (100% owned) Singapore Owns 49% of PT Hoegh LNG Lampung PT Hoegh LNG Lampung (49% owned) (1) Indonesia Owns PGN FSRU Lampung SRV Joint Gas Ltd. (50% owned) (2) Cayman Islands Owns Neptune SRV Joint Gas Two Ltd. (50% owned) (2) Cayman Islands Owns GDF Suez Cape Ann Höegh LNG FSRU III Ltd. (100% owned) (3) Cayman Islands Owns 100% of Hoegh LNG Cyprus Limited Hoegh LNG Cyprus Limited (100% owned) (3) Cyprus Owns Höegh Gallant Hoegh LNG Cyprus Limited Egypt Branch (100% owned) (3) Egypt Branch of Hoegh LNG Cyprus Limited Höegh LNG Colombia Holding Ltd. (51% owned) (4) Cayman Islands Owns 100% of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S. Höegh LNG FSRU IV Ltd. (51% indirectly owned) (4) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (51% indirectly owned) (4) Colombia Operating Company (1) PT Hoegh LNG Lampung is a variable interest entity, which is controlled by Hoegh LNG Lampung Pte. Ltd. and is, therefore, 100 (2) The remaining 50 (3) The ownership interests were acquired on October 1, 2015. (4) The 51% ownership interests were acquired on January 3, 2017. Refer to note 4. |
Significant accounting policies
Significant accounting policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Significant accounting policies a. Basis of presentation The accompanying unaudited condensed interim consolidated financial statements are prepared in accordance with 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 financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2016, included in the Partnership’s Annual Report on Form 20-F (the “Annual Report”). It has been determined that PT Hoegh LNG Lampung, Höegh LNG FSRU III Ltd., Höegh LNG Colombia Holding Ltd., SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. are variable interest entities. A variable interest entity (“VIE”) is defined by US GAAP as a legal entity where either (a) the voting rights of some investors are not proportional to their rights to receive the expected residual returns of the entity, their obligations to absorb the expected losses of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards. The guidance requires a VIE to be consolidated if any of its interest holders are entitled to a majority of the entity’s residual returns or are exposed to a majority of its expected losses. Based upon the criteria set forth in US GAAP, the Partnership has determined that PT Hoegh LNG Lampung is a VIE, as the equity holders, through their equity investments, may not participate fully in the entity’s expected residual returns and substantially all of the entity’s activities either involve, or are conducted on behalf of, the Partnership. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100 The Partnership has also determined that Höegh LNG FSRU III Ltd. is a VIE, as the equity investment does not provide sufficient equity to permit the entity to finance its activities without financial guarantees. 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 Höegh LNG Colombia Holding Ltd. is a VIE since the entity would not be able to finance its activities without financial guarantees under its subsidiary’s facility to finance Höegh Grace 100 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 balance sheets. For SRV Joint Gas Ltd., the Partnership had a receivable for the advances of $ 2.5 3.9 13.7 11.2 0.7 3.3 13.1 14.7 b. Significant accounting policies The accounting policies used in the preparation of the unaudited condensed interim consolidated financial statements are consistent with those applied in the audited financial statements for the year ended December 31, 2016 included in the Partnership’s Annual Report, except as described below: Colombian tax paid directly by charterer : Under terms of the contracts for the Höegh Grace The Partnership concluded these third party payments to the tax authorities represent income taxes that must be accounted for under the US GAAP guidance for income taxes. As a result, the amount of taxes paid by the charterer is recorded as a component of time charter revenues and current income tax expense. The non-cash time charter revenues and non-cash income tax expense (note 8) was $ 200 632 c. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard, Revenue from Contracts with Customers In February 2016, the FASB issued revised guidance for leasing, Leases Refer to the audited consolidated financial statements for the year ended December 31, 2016 in our Annual Report for additional information on recent accounting pronouncements. There are no accounting pronouncements effective for the period, whose adoption had a material impact on the consolidated financial statements in the current period. |
Formation transactions and Init
Formation transactions and Initial Public Offering | 9 Months Ended |
Sep. 30, 2017 | |
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 These transactions were accounted for as a capital contribution by Höegh LNG to the Partnership. 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 20 43.5 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) An $ 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 rights of first offer on certain FSRUs and LNG carriers operating under charters of five or more years; and c. Höegh LNG’s provision of certain indemnities to the Partnership. (iii) An administrative services agreement with 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 administrative services agreements with Höegh LNG AS (“Höegh Norway”) and Leif Höegh (U.K.) Limited, pursuant to which Höegh Norway and Leif Höegh (U.K.) Limited provide Höegh UK certain administrative services. Additionally, the operating company has entered into an administrative services agreement with Leif Höegh (U.K.) Limited to allow Leif Höegh (U.K.) Limited to provide services directly to Höegh LNG Partners Operating LLC. 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 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. |
Business combinations
Business combinations | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 4. Business combinations On January 3, 2017, the Partnership closed the acquisition of a 51 Höegh Grace 91.8 0.4 In December 2016, the Partnership sold 6,588,389 111.5 91.8 51 Höegh Grace 12.6 6.6 Höegh Gallant 0.4 The Höegh Grace On November 1, 2014, Höegh LNG FSRU IV Ltd., a Cayman Islands company, that owns the Höegh Grace Höegh Grace Höegh Grace 20 10 15 Höegh Grace Under terms of the Höegh LNG Colombia Holding Ltd.’s memorandum and articles of association, the Partnership has the power to make key operating decisions considered to be most significant to the Höegh Grace Höegh Grace 51 Höegh Grace The preliminary purchase price of the acquisition has been allocated to the identifiable fair values allocated to each class of identifiable assets acquired. Under the purchase method of accounting when control is obtained, the non-controlling interest is required to be measured at its fair value at the acquisition date. Management has concluded that the pro-rata values of the controlling and non-controlling interests are the same. The fair value of the consideration transferred and the fair value of the 49 (in thousands of US dollars) Consideration Use of proceeds from public offering (issuance of 6,588,389 common units to the public) $ 91,768 Working capital adjustment 407 Total consideration $ 92,175 Assets acquired Cash and cash equivalents 3,774 Restricted cash 19 Trade receivables 4,446 Prepaid expenses and other receivables 51 Vessel 357,138 Other equipment 30 Intangibles: Above market time charter 11,760 Other long term assets 830 Total long term assets 378,048 Liabilities assumed Trade payables (193) Amounts due to owners and affiliates (622) Accrued liabilities and other payables (1,569) Total long term debt (192,286) Derivative instruments (2,642) Total liabilities assumed (197,312) Total identifiable net assets 180,736 Non-controlling interest in total identifiable net assets 88,561 Acquired share in total identifiable net asset $ 92,175 One contract related intangible has been identified. The Partnership recorded $ 11.8 Höegh Grace 9.5 The premium arising in a business combination for the difference in the fair value of the debt assumed compared to the outstanding principal is reported in the consolidated balance sheet as a direct adjustment to the outstanding principal of the related debt and amortized on an effective interest rate method over the term of relevant loan. Amortization of fair value of the debt assumed is included as a component of interest expense. The fair value of assets acquired and the liabilities assumed approximated the total consideration; therefore, no residual amount has been recognized as goodwill for the acquisition. Total revenues of $ 38.5 17.3 The following unaudited pro forma information assumes the acquisition of the Höegh Grace Höegh Grace Year ended December 31, (in thousands of U.S. dollars) 2016 Total revenue $ 96,526 Net income (loss) 23,382 Non-controlling interest in net income (loss) (8,818) Partners’ interest in net income (loss) $ 32,200 |
Segment information
Segment information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 5. 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) less the non-controlling interest in Segment EBITDA. 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, interest income from advances to joint ventures and interest expense related to the seller’s credit note and the outstanding balance on the $ 85 For the three and nine months ended September 30, 2017, Majority held FSRUs includes the direct financing lease related to the PGN FSRU Lampung Höegh Gallant Höegh Grace PGN FSRU Lampung Höegh Gallant As of September 30, 2017 and 2016, Joint venture FSRUs include two 50 Neptune GDF Suez Cape Ann The accounting policies applied to the segments are the same as those applied in the financial statements, except that i) Joint venture FSRUs are presented under the proportional consolidation method for the segment note and in the tables below, and under equity accounting for the consolidated financial statements and ii) non-controlling interest in Segment EBITDA is subtracted in the segment note to reflect the Partnership’s interest in Segment EBITDA as the Partnership’s segment profit measure, Segment EBITDA. Under the proportional consolidation method, 50 51 Höegh Grace Höegh Grace 100 Höegh Grace Höegh Grace 51 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 September 30, 2017 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations Reporting Time charter revenues $ 35,856 10,460 46,316 (10,460) (1) $ 35,856 Accrual historical boil-off claim (11,850) (11,850) 11,850 (1)(2) Total revenues 35,856 (1,390) 34,466 35,856 Operating expenses (6,672) (1,733) (1,304) (9,709) 1,733 (1) (7,976) Equity in earnings (losses) of joint ventures (7,321) (1) (7,321) Less: Non-controlling interest in Segment EBITDA (5,354) (5,354) 5,354 (3) Segment EBITDA 23,830 (3,123) (1,304) 19,403 Add: Non-controlling interest in Segment EBITDA 5,354 5,354 (5,354) (3) Depreciation and amortization (5,264) (2,462) (7,726) 2,462 (1) (5,264) Operating income (loss) 23,920 (5,585) (1,304) 17,031 15,295 Gain (loss) on derivative instruments 571 1,802 2,373 (1,802) (1) 571 Other financial income (expense), net (7,128) (3,538) (1,146) (11,812) 3,538 (1) (8,274) Income (loss) before tax 17,363 (7,321) (2,450) 7,592 7,592 Income tax expense (2,183) (2) (2,185) (2,185) Net income (loss) $ 15,180 (7,321) (2,452) 5,407 $ 5,407 Non-controlling interest in net income 2,899 2,899 2,899 Partners’ interest in net income (loss) $ 12,281 (7,321) (2,452) 2,508 $ 2,508 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs net income (loss) to Equity in earnings (loss) of joint ventures. (2) For additional information, refer to note 17 under “Joint ventures claims and accruals.” (3) Eliminations reverse the adjustment to Non-controlling interest in Segment EBITDA included for Segment EBITDA and the adjustment to reverse the Non-controlling interest in Segment EBITDA to reconcile to operating income and net income. Three months ended September 30, 2016 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) reporting Time charter revenues $ 23,345 10,937 34,282 (10,937) $ 23,345 Total revenues 23,345 10,937 34,282 23,345 Operating expenses (5,338) (2,379) (1,672) (9,389) 2,379 (7,010) Equity in earnings (losses) of joint ventures 6,565 6,565 Segment EBITDA 18,007 8,558 (1,672) 24,893 Depreciation and amortization (2,647) (2,378) (5,025) 2,378 (2,647) Operating income (loss) 15,360 6,181 (1,672) 19,868 20,253 Gain (loss) on derivative instruments 517 4,139 4,656 (4,139) 517 Other financial income (expense), net (5,748) (3,755) (1,121) (10 624) 3,755 (6,869) Income (loss) before tax 10,129 6,565 (2,793) 13,901 13,901 Income tax expense (474) (2) (476) (476) Net income (loss) $ 9,655 6,565 (2,795) 13,425 $ 13,425 (1) Eliminations reverse each of the income statement line items of the proportional consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. Nine months ended September 30, 2017 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Time charter revenues $ 105,957 31,608 137,565 (31,608) (1) $ 105,957 Accrual historical boil-off claim (11,850) (11,850) 11,850 (1)(2) Total revenues 105,957 19,758 125,715 105,957 Operating expenses (20,627) (6,336) (4,376) (31,339) 6,336 (1) (25,003) Construction contract expenses (151) (151) (151) Equity in earnings (losses) of joint ventures (962) (1) (962) Less: Non-controlling interest in Segment EBITDA (15,772) (15,772) 15,772 (3) Segment EBITDA 69,407 13,422 (4,376) 78,453 Add: Non-controlling interest in Segment EBITDA 15,772 15,772 (15,772) (3) Depreciation and amortization (15,789) (7,379) (23,168) 7,379 (1) (15,789) Operating income (loss) 69,390 6,043 (4,376) 71,057 64,052 Gain (loss) on derivative instruments 1,481 3,513 4,994 (3,513) (1) 1,481 Other financial income (expense), net (22,611) (10,518) (3,132) (36,261) 10,518 (1) (25,743) Income (loss) before tax 48,260 (962) (7,508) 39,790 39,790 Income tax expense (5,980) (2) (5,982) (5,982) Net income (loss) $ 42,280 (962) (7,510) 33,808 $ 33,808 Non-controlling interest in net income 8,455 8,455 8,455 Partners’ interest in net income (loss) $ 33,825 (962) (7,510) 25,353 $ 25,353 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs net income (loss) to Equity in earnings (loss) of joint ventures. (2) For additional information, refer to note 17 under “Joint ventures claims and accruals.” (3) Eliminations reverse the adjustment to Non-controlling interest in Segment EBITDA included for Segment EBITDA and the adjustment to reverse the Non-controlling interest in Segment EBITDA to reconcile to operating income and net income. As of September 30, 2017 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations Reporting Vessels, net of accumulated depreciation $ 683,998 268,009 952,007 (268,009) (1) $ 683,998 Net investment in direct financing lease 287,526 287,526 287,526 Goodwill 251 251 251 Advances to joint ventures 3,198 3,198 3,198 Total assets 1,055,939 288,120 10,452 1,354,511 (288,120) (1) 1,066,391 Accumulated losses of joint ventures 50 50 (26,898) (1) (26,848) Expenditures for vessels & equipment 455 455 (455) (2) Expenditures for drydocking (2) Principal repayment direct financing lease 2,585 2,585 2,585 Amortization of above market contract 2,716 2,716 2,716 Non-controlling interest: amortization of above market contract $ (452) (452) $ (1) Eliminates the proportional share of the Joint venture FSRUs’ Vessels, net of accumulated depreciation and Total assets and reflects the Partnership’s share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated losses of joint ventures. (2) Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Nine months ended September 30, 2016 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) Reporting Time charter revenues $ 67,799 32,054 99,853 (32,054) $ 67,799 Total revenues 67,799 32,054 99,853 67,799 Operating expenses (15,044) (6,480) (4,700) (26,224) 6,480 (19,744) Construction contract expenses (315) (315) (315) Equity in earnings (losses) of joint ventures (2,010) (2,010) Segment EBITDA 52,440 25,574 (4,700) 73,314 Depreciation and amortization (7,912) (7,131) (15,043) 7,131 (7,912) Operating income (loss) 44,528 18,443 (4,700) 58,271 37,818 Gain (loss) on derivative instruments 1,178 (9,028) (7,850) 9,028 1,178 Other financial income (expense), net (17,969) (11,425) (3,156) (32,550) 11,425 (21,125) Income (loss) before tax 27,737 (2,010) (7,856) 17,871 17,871 Income tax expense (1,421) (5) (1,426) (1,426) Net income (loss) $ 26,316 (2,010) (7,861) 16,445 $ 16,445 (1) Eliminations reverse each of the income statement line items of the proportional consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. As of December 31, 2016 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations Reporting Vessels, net of accumulated depreciation $ 342,591 274,932 617,523 (274,932) (1) $ 342,591 Net investment in direct financing lease 290,111 290,111 290,111 Goodwill 251 251 251 Advances to joint ventures 7,218 7,218 7,218 Total assets 698,869 298,712 111,598 1,109,179 (298,712) (1) 810,467 Accumulated losses of joint ventures 50 50 (25,936) (1) (25,886) Expenditures for vessels & equipment 537 783 1,320 (783) (2) 537 Expenditures for drydocking 135 135 (135) (2) Principal repayment direct financing lease 3,192 3,192 3,192 Amortization of above market contract $ 2,405 2,405 $ 2,405 (1) Eliminates the proportional share of the Joint venture FSRUs’ Vessels, net of accumulated depreciation and Total assets and reflects the Partnership’s share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated losses of joint ventures. (2) Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. |
Construction contract expenses
Construction contract expenses | 9 Months Ended |
Sep. 30, 2017 | |
Construction Contract Expenses [Abstract] | |
Construction Contract Expenses [Text Block] | 6. Construction contract expenses The Mooring is an offshore installation that is used to moor the PGN FSRU Lampung 2.0 0.3 0.2 |
Financial income (expense)
Financial income (expense) | 9 Months Ended |
Sep. 30, 2017 | |
Nonoperating Income (Expense) [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | 7. Financial income (expense) Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2017 2016 2017 2016 Interest income $ 98 192 341 $ 697 Interest expense: Interest expense (7,309) (5,486) (21,870) (16,601) Commitment fees (223) (294) (728) (896) Amortization of debt issuance cost and fair value of debt assumed (207) (503) (629) (1,546) Total interest expense (7,739) (6,283) (23,227) (19,043) Gain (loss) on derivative instruments 571 517 1,481 1,178 Other items, net: Foreign exchange gain (loss) 24 (66) (920) (430) Bank charges, fees and other (16) (46) (68) (137) Withholding tax on interest expense and other (641) (666) (1,869) (2,212) Total other items, net (633) (778) (2,857) (2,779) Total financial income (expense), net $ (7,703) (6,352) (24,262) $ (19,947) |
Income tax
Income tax | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 8. Income tax The Partnership is not subject to Marshall Islands corporate income taxes. The Partnership is subject to tax for earnings of its subsidiaries incorporated in Singapore, Indonesia, Colombia, Cyprus and the UK and certain Colombian source income. The income tax expense recorded in the consolidated income statements was $ 2,185 476 5,982 1,426 Höegh Grace 200 632 Benefits of uncertain tax positions are recognized when it is more-likely-than-not that a tax position taken in a tax return will be sustained upon examination based on the technical merits of the position. For the three and nine months ended September 30, 2017, the estimated generation of taxable income resulted in the utilization of $ 95 318 318 2,547 |
Advances to joint ventures
Advances to joint ventures | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Advances to Joint Ventures Disclosure [Text Block] | 9. Advances to joint ventures As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Current portion of advances to joint ventures $ $ 6,275 Long-term advances to joint ventures 3,198 943 Advances/shareholder loans to joint ventures $ 3,198 $ 7,218 The Partnership had advances of $ 2.5 3.9 0.7 3.3 |
Vessels, net
Vessels, net | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 10. Vessels, net Dry- (in thousands of U.S. dollars) Vessel docking Total Historical cost December 31, 2015 $ 352,433 3,267 $ 355,700 Additions Historical cost December 31, 2016 352,433 3,267 355,700 Depreciation for the year (9,687) (800) (10,487) Accumulated depreciation December 31, 2016 (12,109) (1,000) (13,109) Vessels, net December 31, 2016 340,324 2,267 342,591 Historical cost December 31, 2016 352,433 3,267 355,700 Additions (note 4) 353,738 3,400 357,138 Historical cost September 30, 2017 706,171 6,667 712,838 Depreciation for the period (14,531) (1,200) (15,731) Accumulated depreciation September 30, 2017 (26,640) (2,200) (28,840) Vessels, net September 30, 2017 $ 679,531 4,467 $ 683,998 |
Intangibles and goodwill
Intangibles and goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 11. Intangibles and goodwill (in thousands of U.S. dollars) Above Option Total Goodwill Total Historical cost December 31, 2016 $ 11,000 8,000 19,000 251 $ 19,251 Accumulated amortization, December 31, 2016 (3,010) (3,010) (3,010) Intangibles and goodwill, December 31, 2016 7,990 8,000 15,990 251 16,241 Additions (note 4) 11,760 11,760 11,760 Historical cost September 30, 2017 22,760 8,000 30,760 251 31,011 Amortization for the period (2,716) (2,716) (2,716) Accumulated amortization, September 30, 2017 (5,726) (5,726) (5,726) Intangibles and goodwill, September 30, 2017 $ 17,034 8,000 25,034 251 $ 25,285 The intangible for the above market value of the time charter contract associated with the Höegh Gallant Höegh Grace 9.5 Höegh Gallant Total October - December, 2017 $ 915 2018 3,631 2019 3,631 2020 3,053 2021 2,755 2022 2,755 2023 and thereafter $ 8,294 |
Long-term debt
Long-term debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 12. Long-term debt As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Lampung facility: Export credit tranche $ 127,704 $ 138,868 FSRU tranche 32,208 35,340 Gallant facility: Commercial tranche 123,112 130,222 Export credit tranche 33,917 36,667 Grace facility: Commercial tranche 148,625 Export credit tranche 31,500 Outstanding principal 497,066 341,097 Lampung facility unamortized debt issuance cost (7,947) (9,357) Gallant facility unamortized fair value of debt assumed 640 908 Grace facility unamortized fair value of debt assumed 1,710 Total debt 491,469 332,648 Less: Current portion of long-term debt (45,458) (32,208) Long-term debt $ 446,011 $ 300,440 Lampung facility PT Hoegh LNG Lampung is the Borrower and Höegh LNG is the guarantor for the Lampung facility. The primary financial covenants under the Lampung facility are as follows: ⋅ Borrower must maintain a minimum debt service coverage ratio of 1.10 to 1.00 for the preceding nine-month period tested 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 September 30, 2017, the borrower and the guarantor were in compliance with the financial covenants under the Lampung facility. The Lampung facility requires cash reserves that are held for specifically designated uses, including working capital, operations and maintenance and debt service reserves. Distributions are subject to “waterfall” provisions that allocate revenues to specified priorities of use (such as operating expenses, scheduled debt service, targeted debt service reserves and any other reserves) with the remaining cash being distributable only on certain dates and subject to satisfaction of certain conditions, including meeting a 1.20 historical debt service coverage ratio, no default or event of default then continuing or resulting from such distribution and the guarantor not being in breach of the financial covenants applicable to it. The Lampung facility limit, among other things, the ability of the borrower to change its business, sell or grant liens on its property including the PGN FSRU Lampung Gallant/Grace facility The Gallant/Grace facility includes two borrowers, the Partnership’s subsidiaries owning the Höegh Gallant Höegh Grace . Höegh Gallant Höegh Grace Höegh LNG, Höegh LNG Colombia Holdings Ltd., Höegh LNG FSRU III Ltd. and the Partnership are guarantors for the facility. The primary financial covenants under the Gallant/Grace facility are as follows: ⋅ Höegh LNG must maintain o Consolidated book equity (excluding hedge reserves and mark to market value of derivatives) equal to the greater of § $200 million, and § 25% of total assets o Free liquid assets (cash and cash equivalents, publicly trade debt securities with an A rating with Standard & Poor’s and available draws under a bank credit facility for a term of more than 12 months) equal to the greater of § $20 million, § 5% of total consolidated indebtedness provided on a recourse basis, and § Any amount specified to be a minimum liquidity requirement under any legal obligation ⋅ The Partnership must maintain o Consolidated book equity (excluding hedge reserves and mark to market value of derivatives) equal to the greater of § $150 million, and § 25% of total assets o Free liquid assets (cash and cash equivalents, publicly trade debt securities with an A rating with Standard & Poor’s and available draws under a bank credit facility for a term of more than 12 months) equal to the greater of § $15 million, and § $3 million multiplied by the number of vessels owned or leased by the Partnership ⋅ Each borrower must maintain o Current assets greater than current liabilities as defined in the agreements, and o A ratio of EBITDA to debt service (principal repayments, guarantee commission and interest expense) of a minimum of 115% In addition, a security maintenance ratio based on the aggregate market value of the Höegh Gallant Höegh Grace 125 If the security maintenance ratio is not maintained, the relevant Borrower has 30 days to provide more security or to repay part of the loan to be in compliance with the ratio no later than 30 days after notice from the lenders. As of September 30, 2017, Höegh LNG, the Partnership and each Borrower were in compliance with the financial covenants. Under the Gallant/Grace facility, cash accounts are freely available for the use of the Borrowers, unless there is an event of default. Cash can be distributed as dividends or to service loans of owners and affiliates provided that after the distribution the Borrowers would remain in compliance with the financial covenants and security maintenance ratio. The Gallant/Grace facility limits, among other things, the ability of either Borrower to change its business, sell or grant liens on its property including the Höegh Gallant Höegh Grace |
Investments in joint ventures
Investments in joint ventures | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 13. Investments in joint ventures As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Accumulated losses of joint ventures $ 26,848 $ 25,886 50 Neptune GDF Suez Cape Ann Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2017 2016 2017 2016 Time charter revenues $ 20,919 21,874 63,216 $ 64,108 Accrual historical boil-off claim (1) (23,700) (23,700) Total revenues (2,781) 21,874 39,516 64,108 Operating expenses (3,466) (4,760) (12,671) (12,961) Depreciation and amortization (5,077) (4,905) (15,219) (14,723) Operating income (11,324) 12,209 11,626 36,424 Unrealized gain (loss) on derivative instruments 3,604 8,277 7,026 (18,055) Other financial expense, net (7,075) (7,510) (21,037) (22,850) Net income (loss) $ (14,795) 12,976 (2,385) $ (4,481) Share of joint ventures owned 50 % 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations (7,398) 6,488 (1,193) (2,241) Eliminations 77 77 231 231 Equity in earnings (losses) of joint ventures $ (7,321) 6,565 (962) $ (2,010) (1) Refer to note 17 under “Joint ventures claims and accruals.” As of (in thousands of U.S. dollars) September 30, 2017 December 31, 2016 Cash and cash equivalents $ 3,819 $ 9,506 Restricted cash 8,503 8,458 Other current assets 2,727 4,492 Total current assets 15,049 22,456 Restricted cash 25,173 25,107 Vessels, net of accumulated depreciation 552,882 567,187 Total long-term assets 578,055 592,294 Current portion of long-term debt 24,620 23,503 Amounts and loans due to owners and affiliates 113 13,654 Derivative financial instruments 11,701 13,588 Other current liabilities 37,036 20,145 Total current liabilities 73,470 70,890 Long-term debt 435,615 453,957 Loans due to owners and affiliates 6,395 1,887 Derivative financial liabilities 74,394 79,533 Other long-term liabilities 40,061 42,929 Total long-term liabilities 556,465 578,306 Net liabilities $ (36,831) $ (34,446) Share of joint ventures owned 50 % 50 % Share of joint ventures net liabilities before eliminations (18,416) (17,223) Eliminations (8,432) (8,663) Accumulated losses of joint ventures $ (26,848) $ (25,886) |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 14. Related party transactions Income (expense) from related parties The Partnership has several agreements with Höegh LNG (and certain of its subsidiaries) for the provision of services. Höegh LNG and its subsidiaries provide general and corporate management services to the Partnership. Subsidiaries of Höegh LNG provide technical ship management and /or other similar services for PGN FSRU Lampung Höegh Gallant Höegh Grace Three months ended Nine months ended Statement of income: September 30, September 30, (in thousands of U.S. dollars) 2017 2016 2017 2016 Revenues Time charter revenue Höegh Gallant $ 12,293 12,335 35,439 $ 35,335 Operating expenses Vessel operating expenses (2) (5,348) (3,856) (15,891) (10,899) Hours, travel expense and overhead (3) and Board of Directors’ fees (4) (778) (905) (2,456) (2,645) Interest income from joint ventures (5) 75 189 305 671 Interest expense and commitment fees to Höegh LNG (6) (1,232) (1,288) (3,438) (3,791) Total $ 5,010 6,475 13,959 $ 18,671 As of Balance sheet September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Equity Cash contribution from Höegh LNG (7) $ 2,075 $ 3,843 Issuance of units for Board of Directors’ fees (4) 189 189 Other and contribution from owner (8) 469 426 Total $ 2,733 $ 4,458 1) Time charter revenue Höegh Gallant: Höegh Gallant 2) Vessel operating expenses: 3) Hours, travel expense and overhead: 4) Board of Directors’ fees 9,805 189 10,650 189 5) Interest income from joint ventures: 6) Interest expense and commitment fees to Höegh LNG and affiliates: Höegh Gallant 7) Cash contribution from Höegh LNG: 8) Other and contribution from owner 21,500 Acquisition from Höegh LNG 51 Höegh Grace Dividends to Höegh LNG 20.6 19.2 Receivables and payables from related parties As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Amounts due from affiliates $ 3,780 $ 4,237 Höegh Gallant As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Amounts due to owners and affiliates $ 799 $ 1,374 As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Revolving credit facility $ 24,322 $ 8,622 Seller’s credit 34,383 34,383 Revolving credit and seller’s credit due to owners and affiliates $ 58,705 $ 43,005 In August 2014, upon the closing of the IPO, the Partnership entered into an $ 85 January 1, 2020 LIBOR plus a margin of 4.0% 1.4 On October 1, 2015, the Partnership financed part of the acquisition of the Höegh Gallant 8 The outstanding balances of the revolving credit facility and the seller’s credit note were repaid October 6, 2017. Refer to note 19. 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 No claim may be made unless the aggregate dollar amount of all claims exceeds $0.5 million, in which case Höegh LNG is liable for claims only to the extent such aggregate amount exceeds $0.5 million. 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 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 In the third quarter of 2017, the Partnership received indemnification payments with respect to non-budgeted expenses of $ 1.1 2.1 2.4 0.3 Under the contribution, purchase and sale agreement entered into with respect to the purchase of Höegh LNG FSRU III Ltd., the entity that indirectly owns the Höegh Gallant, 1. losses from breach of warranty; 2. losses related to certain environmental liabilities, damages or repair costs and tax liabilities attributable to the operation of the Höegh Gallant 3. all capital gains tax or other export duty incurred in connection with the transfer of the Höegh Gallant 4. any recurring non-budgeted costs owed to Höegh LNG Management with respect to payroll taxes; 5. any non-budgeted losses suffered or incurred in connection with the commencement of services under the time charter with EgyptCo or EgyptCo’s time charter with EGAS; and 6. liabilities under the Gallant/Grace facility not attributable to the Höegh Gallant. Additionally, Höegh LNG has guaranteed the payment of hire by EgyptCo pursuant to the time charter for the Höegh Gallant For the nine months ended September 30, 2017, the Partnership received indemnification payments with respect to losses incurred in connection with the commencement of services under the time charter due to technical issues of $ 0.5 0.9 0.1 Under the contribution, purchase and sale agreement entered into with respect to the acquisition of the 51 Höegh Grace 1. losses from breach of warranty; 2. losses related to certain environmental liabilities, damages or repair costs and tax liabilities attributable to the operation of the Höegh Grace 3. any recurring non-budgeted costs owed to tax authorities with respect to payroll taxes, taxes related to social security payments, corporate income taxes (including income tax for equality and surcharge on income tax for equality), withholding tax, port associations, local Cartagena tax, and financial transaction tax, including any penalties associated with taxes to the extent not reimbursed by the charterer; 4. any non-budgeted losses suffered or incurred in connection with commencement of services under the Höegh Grace 5. any losses suffered or incurred in relation to the performance guarantee the Partnership provided with respect to the Höegh Grace On September 27, 2017, the Partnership entered into an indemnification agreement with Höegh LNG with respect to the boil-off claims under the Neptune GDF Suez Cape Ann Neptune GDF Suez Cape Ann Refer to note 17. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 15. Financial Instruments Fair value measurements The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents and restricted cash Amounts due from (to) owners and affiliates Derivative instruments Advances (shareholder loans) to joint ventures Long-term receivable Loans and promissory notes due to owners and affiliates Lampung, Gallant and Grace facilities Revolving credit and seller’s credit due to owners and affiliates The fair value estimates are categorized by a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. As of As of September 30, 2017 December 31, 2016 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 $ 18,566 18,566 18,915 $ 18,915 Restricted cash 1 24,125 24,125 22,209 22,209 Amounts due from affiliate 2 3,780 3,780 4,237 4,237 Derivative instruments 2 (7,223) (7,223) (7,045) (7,045) Other: Advances (shareholder loans) to joint ventures 2 3,198 3,616 7,218 7,355 Current amounts due to owners and affiliates 2 (799) (799) (1,374) (1,374) Cash designated for acquisition 1 91,768 91,768 Other long-term receivables 2 6,195 6,195 Lampung facility 2 (151,965) (167,798) (164,851) (183,585) Gallant facility 2 (157,669) (158,696) (167,797) (168,889) Grace facility 2 (181,835) (182,051) Revolving credit and seller’s credit due to owners and affiliates 2 $ (58,705) (58,705) (43,005) $ (44,098) Following dialogue with local tax authorities, it was possible to amend a VAT filing reducing the VAT liability on a customer invoice with the result that a credit note was issued for the other long-term receivable of $ 6,195 Financing Receivables As of Class of Financing Receivables Credit Quality September 30, December 31, (in thousands of U.S. dollars) Indicator Grade 2017 2016 Trade receivable and long-term receivable Payment activity Performing $ 7,637 $ 8,283 Amounts due from affiliate Payment activity Performing 3,780 4,237 Advances to joint ventures Payment activity Performing $ 3,198 $ 7,218 |
Risk management and concentrati
Risk management and concentrations of risk | 9 Months Ended |
Sep. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 16. Risk management and concentrations of risk Derivative instruments can be used in accordance with the overall risk management policy. Foreign exchange risk All financing, interest expenses from financing and most of the Partnership’s revenue and expenditures for vessel improvements are denominated in U.S. dollars. Certain operating expenses can be denominated in currencies other than U.S. dollars. For the three and nine months ended September 30, 2017, and 2016, no derivative financial instruments have been used to manage foreign exchange risk. The Höegh Gallant 90 10 Höegh Gallant 97 3 Höegh Gallant Interest rate risk Interest rate swaps are utilized to exchange a receipt of floating interest for a payment of fixed interest to reduce the exposure to interest rate variability on its outstanding floating-rate debt. As of September 30, 2017, there are interest rate swap agreements on the Lampung, Gallant and Grace facilities’ floating rate debt that are designated as cash flow hedges for accounting purposes. Fair value Fixed Interest carrying interest rate Notional amount rate (in thousands of U.S. dollars) index amount liability Term (1) LIBOR-based debt Lampung interest rate swaps (2) LIBOR $ 159,912 (4,979) Sept 2026 2.8% Gallant interest rate swaps (2) LIBOR 126,750 (509) Sept 2019 1.9% Grace interest rate swaps (2) LIBOR $ 138,375 (1,735) March 2020 2.3% 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 (in thousands of U.S. dollars) instruments instruments As of September 30, 2017 Interest rate swaps $ (3,287) $ (3,936) As of December 31, 2016 Interest rate swaps $ (3,534) $ (3,511) Three months ended Nine months ended (in thousands of U.S. dollars) 2017 2016 2017 2016 Interest rate swaps: Ineffective portion of cash flow hedge $ (28) 30 (380) $ 12 Amortization of amount excluded from hedge effectiveness 813 701 2,502 1,807 Reclassification from accumulated other comprehensive income (214) (214) (641) (641) Unrealized gains (losses) 571 517 1,481 1,178 Realized gains (losses) Total gains (losses) on derivative instruments $ 571 517 1,481 $ 1,178 Cash Flow Hedge (in thousands of U.S. dollars) Before tax gains Tax benefit Net of tax Accumulated Balance as of December 31, 2016 $ (6,947) 1,211 (5,736) $ (5,736) Effective portion of unrealized loss on cash flow hedge 342 342 342 Reclassification of amortization of cash flow hedge to earnings 641 (259) 382 382 Other comprehensive income for period 983 (259) 724 724 Balance as of September 30, 2017 $ (5,964) 952 (5,012) $ (5,012) Cash Flow Hedge (in thousands of U.S. dollars) Before tax gains Tax benefit Net of tax Accumulated Balance as of December 31, 2015 $ (8,830) 1,589 (7,241) $ (7,241) Effective portion of unrealized loss on cash flow hedge (6,283) (6,283) (6,283) Reclassification of amortization of cash flow hedge to earnings 641 (250) 391 391 Other comprehensive income for period (5,642) (250) (5,892) (5,892) Balance as of September 30, 2016 $ (14,472) 1,339 (13,133) $ (13,133) 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. In addition, Höegh LNG guarantees the payment of the Höegh Gallant PGN FSRU Lampung Concentrations of risk Financial instruments, which potentially subject the Partnership to significant concentrations of credit risk, consist principally of cash and cash equivalents, restricted cash, trade receivables, amounts due from owners and affiliates and derivative contracts (interest rate swaps). The maximum exposure to loss due to credit risk is the book value at the balance sheet date. The Partnership does not have a policy of requiring collateral or security. Cash and cash equivalents and restricted cash are placed with qualified financial institutions. Periodic evaluations are performed of the relative credit standing of those financial institutions. In addition, exposure is limited by diversifying among counterparties. There are three charterers so there is a concentration of risk related to trade receivables. Credit risk related to trade receivables is limited by performing ongoing credit evaluations of the customer’s financial condition. In addition, Höegh LNG guarantees the payment of the Höegh Gallant PGN FSRU Lampung |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 17. Commitments and contingencies Contractual commitments As of September 30, 2017, there were no material contractual purchase commitments. Claims and Contingencies Joint ventures claims and accruals Under the Neptune GDF Suez Cape Ann Neptune GDF Suez Cape Ann 58 Depending on interpretations of the contractual provisions including exclusions to the performance standards and based upon currently available information, it is estimated that the Partnership’s 50% share of the excess boil-off claim could range from zero or negligible amounts to approximately $29 million, or the gross amount claimed by the charterer. 23.7 11.9 To the extent that an excess boil-off claim results in a settlement, the Partnership would be indemnified by Höegh LNG for its share of the cash impact of any settlement. As a result, the ultimate outcome of the boil-off claim, on an isolated basis, is not expected to have a material adverse effect on the Partnership’s financial position. However, other concessions, if any, would not be expected to be indemnified. In addition, the suspension of the payments of the shareholder loans will reduce cash flows available to the Partnership. Furthermore, the increase in the accruals for or the resolution of the excess boil-off claim may have a material adverse effect on the Partnership’s results of operations for that period. Indonesian corporate income tax In 2015, the Indonesian Minister of Finance issued regulations that provided that Indonesian corporate taxpayers are subject to a limit in claiming interest expense as tax deduction where their debt to equity ratio exceeds 4:1 which was effective from January 1, 2016. Certain industries, including the infrastructure industry, are exempted from the debt to equity ratio requirements. The infrastructure industry is not defined in the regulations; however, additional guidance was expected to be provided in early 2016. As of September 30, 2017, the additional guidance had not yet been provided. Therefore, it is not certain if guidance will be provided to clarify whether the Partnership’s Indonesian subsidiary would qualify as part of the infrastructure industry and be exempted from the requirements. As a result, the limitations on the deductibility of interest expense has been applied for the year ended December 31, 2016 and the three and nine months ended September 30, 2017, increasing the taxable income and the income tax expense of the Indonesian subsidiary. Due to the uncertainty of realizing the benefit of a 2013 tax loss carryforward in Indonesia, no income tax benefit was recognized. As a result of being unable to utilize the prior year tax loss, a long-term income tax liability of $ 2.2 2.5 Based upon the Partnership’s experience in Indonesia, tax regulations, guidance and interpretation in Indonesia may not always be clear and may be subject to alternative interpretations or changes in interpretations over time. The Partnership’s Indonesian subsidiary is subject to examination by the Indonesian tax authorities for up to five years following the completion of a fiscal year. The examinations may lead to ordinary course adjustments or proposed adjustments to the Partnership’s taxes or tax loss carryforwards with respect to years under examination. The Partnership has recognized a provision in 2013 related to an uncertain tax position for the 2013 tax loss carryforward. It is reasonably possible within the next 12 months that the Partnership’s Indonesian subsidiary will be subject to a tax examination. Such an examination may or may not result in changes to the Partnership’s provisions on tax filings from 2013 through 2016. To date, there has been no tax audit on the Partnership’s operations in Indonesia. PGN LNG claims including delay liquidated damages The Partnership was indemnified by Höegh LNG for non-budgeted expenses (including repair and warranty costs) incurred in connection with the PGN FSRU Lampung In the third quarter of 2017, the Partnership received indemnification payments with respect to non-budgeted expenses of $ 1.1 2.1 2.4 0.3 Höegh Gallant claims and indemnification In the third quarter of 2017, the Partnership began investigating with EgyptCo a performance measure included in EgyptCo’s charter with respect to the Höegh Gallant. The Partnership was indemnified by Höegh LNG for losses incurred in connection with the commencement of services under the time charter with EgyptCo (including technical issues) incurred in connection with Höegh Gallant For the nine months ended September 30, 2017, the Partnership received indemnification payments with respect to losses incurred in connection with the commencement of services under the time charter due to technical issues of $ 0.5 0.9 0.1 1.0 1.4 |
Earnings per unit and cash dist
Earnings per unit and cash distributions | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Unit [Abstract] | |
Earnings Per Share [Text Block] | 18. Earnings per unit and cash distributions Three months ended Nine months ended (in thousands of U.S. dollars, except per unit numbers) 2017 2016 2017 2016 Partners’ interest in net income $ 2,508 13,425 25,353 $ 16,445 Less: Dividends paid or to be paid (1) (14,441) (10,971) (43,319) (32,910) Under (over) distributed earnings (11,933) 2,454 (17,966) (16,465) Under (over) distributed earnings attributable to: Common units public (6,397) 1,030 (9,632) (6,912) Common units Höegh LNG (767) 197 (1,155) (1,324) Subordinated units Höegh LNG (4,769) 1,227 (7,179) (8,229) (11,933) 2,454 (17,966) (16,465) Basic weighted average units outstanding (in thousands) Common units public 17,649 11,051 17,644 11,044 Common units Höegh LNG 2,116 2,116 2,116 2,116 Subordinated units Höegh LNG 13,156 13,156 13,156 13,156 Diluted weighted average units outstanding (in thousands) Common units public 17,661 11,054 17,654 11,048 Common units Höegh LNG 2,116 2,116 2,116 2,116 Subordinated units Höegh LNG 13,156 13,156 13,156 13,156 Basic and diluted earnings per unit (2): Common unit public $ 0.07 $ 0.51 $ 0.74 $ 0.61 Common unit Höegh LNG (3) $ 0.09 $ 0.51 $ 0.80 $ 0.63 Subordinated unit Höegh LNG (3) $ 0.09 $ 0.51 $ 0.80 $ 0.63 (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 on the number of units outstanding at the period end. (2) Effective June 3, 2016, the Partnership granted 21,500 (3) Includes total amounts attributable to incentive distributions rights of $ 285,234 855,618 39,521 118,552 245,713 737,066 113,227 339,634 15,688 47,059 97,538 292,575 As of September 30, 2017, the total number of units outstanding was 32,920,964. Common units outstanding were 19,764,904 17,648,844 2,116,060 13,156,060 Earnings per unit is calculated by dividing net income by the weighted average number of common and subordinated units outstanding during the applicable period. The common unitholders’ and subordinated unitholders’ interest in net income are calculated as if all net income were distributed according to terms of the Partnership’s Second Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”), regardless of whether those earnings would or could be distributed. The Partnership Agreement does not provide for the distribution of net income; rather, it provides for the distribution of available cash. Available cash, a contractual defined term, generally means all cash on hand at the end of the quarter after deduction for cash reserves established by the board of directors and the Partnership’s subsidiaries to i) provide for the proper conduct of the business (including reserves for future capital expenditures and for the anticipated credit needs); ii) comply with applicable law, any of the debt instruments or other agreements; iii) provide funds for payments on the Series A preferred units; and iv) provide funds for distributions to the common and subordinated 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 Distributions of available cash from operating surplus are to be made in the following manner for any quarter during the subordination period: ⋅ first 100.0 0.3375 ⋅ second 100.0 ⋅ 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 during the subordination period: ⋅ 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 and the holders of the IDRs 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 | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 19. Subsequent events On October 5, 2017, the Partnership issued 4,600,000 8.75 111.4 On October 6, 2017, the Partnership repaid the outstanding balances of $ 34.4 24.3 On November 14, 2017, the Partnership paid a quarterly cash distribution with respect to the quarter ended September 30, 2017 of $ 0.43 14.4 On November 16, 2017, the Partnership announced it had 49 Höegh Grace 85.9 |
Significant accounting polici26
Significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | a. Basis of presentation The accompanying unaudited condensed interim consolidated financial statements are prepared in accordance with 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 financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2016, included in the Partnership’s Annual Report on Form 20-F (the “Annual Report”). It has been determined that PT Hoegh LNG Lampung, Höegh LNG FSRU III Ltd., Höegh LNG Colombia Holding Ltd., SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. are variable interest entities. A variable interest entity (“VIE”) is defined by US GAAP as a legal entity where either (a) the voting rights of some investors are not proportional to their rights to receive the expected residual returns of the entity, their obligations to absorb the expected losses of the entity, or both, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards. The guidance requires a VIE to be consolidated if any of its interest holders are entitled to a majority of the entity’s residual returns or are exposed to a majority of its expected losses. Based upon the criteria set forth in US GAAP, the Partnership has determined that PT Hoegh LNG Lampung is a VIE, as the equity holders, through their equity investments, may not participate fully in the entity’s expected residual returns and substantially all of the entity’s activities either involve, or are conducted on behalf of, the Partnership. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100 The Partnership has also determined that Höegh LNG FSRU III Ltd. is a VIE, as the equity investment does not provide sufficient equity to permit the entity to finance its activities without financial guarantees. 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 Höegh LNG Colombia Holding Ltd. is a VIE since the entity would not be able to finance its activities without financial guarantees under its subsidiary’s facility to finance Höegh Grace 100 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 balance sheets. For SRV Joint Gas Ltd., the Partnership had a receivable for the advances of $ 2.5 3.9 13.7 11.2 0.7 3.3 13.1 14.7 |
Significant Accounting Policy [Policy Text Block] | b. Significant accounting policies The accounting policies used in the preparation of the unaudited condensed interim consolidated financial statements are consistent with those applied in the audited financial statements for the year ended December 31, 2016 included in the Partnership’s Annual Report, except as described below: Colombian tax paid directly by charterer : Under terms of the contracts for the Höegh Grace The Partnership concluded these third party payments to the tax authorities represent income taxes that must be accounted for under the US GAAP guidance for income taxes. As a result, the amount of taxes paid by the charterer is recorded as a component of time charter revenues and current income tax expense. The non-cash time charter revenues and non-cash income tax expense (note 8) was $ 200 632 |
New Accounting Pronouncements, Policy [Policy Text Block] | c. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard, Revenue from Contracts with Customers In February 2016, the FASB issued revised guidance for leasing, Leases Refer to the audited consolidated financial statements for the year ended December 31, 2016 in our Annual Report for additional information on recent accounting pronouncements. There are no accounting pronouncements effective for the period, whose adoption had a material impact on the consolidated financial statements in the current period. |
Description of business (Tables
Description of business (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of Entities [Table Text Block] | The following table lists the entities included in these consolidated financial statements and their purpose as of September 30, 2017. Jurisdiction of Incorporation Name or Registration Purpose Höegh LNG Partners LP Marshall Islands Holding Company Höegh LNG Partners Operating LLC (100% owned) Marshall Islands Holding Company Hoegh LNG Services Ltd (100% owned) United Kingdom Administration Services Company Hoegh LNG Lampung Pte. Ltd. (100% owned) Singapore Owns 49% of PT Hoegh LNG Lampung PT Hoegh LNG Lampung (49% owned) (1) Indonesia Owns PGN FSRU Lampung SRV Joint Gas Ltd. (50% owned) (2) Cayman Islands Owns Neptune SRV Joint Gas Two Ltd. (50% owned) (2) Cayman Islands Owns GDF Suez Cape Ann Höegh LNG FSRU III Ltd. (100% owned) (3) Cayman Islands Owns 100% of Hoegh LNG Cyprus Limited Hoegh LNG Cyprus Limited (100% owned) (3) Cyprus Owns Höegh Gallant Hoegh LNG Cyprus Limited Egypt Branch (100% owned) (3) Egypt Branch of Hoegh LNG Cyprus Limited Höegh LNG Colombia Holding Ltd. (51% owned) (4) Cayman Islands Owns 100% of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S. Höegh LNG FSRU IV Ltd. (51% indirectly owned) (4) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (51% indirectly owned) (4) Colombia Operating Company (1) PT Hoegh LNG Lampung is a variable interest entity, which is controlled by Hoegh LNG Lampung Pte. Ltd. and is, therefore, 100 (2) The remaining 50 (3) The ownership interests were acquired on October 1, 2015. (4) The 51% ownership interests were acquired on January 3, 2017. Refer to note 4. |
Business combinations (Tables)
Business combinations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following summarizes the fair values of assets and liabilities assumed: (in thousands of US dollars) Consideration Use of proceeds from public offering (issuance of 6,588,389 common units to the public) $ 91,768 Working capital adjustment 407 Total consideration $ 92,175 Assets acquired Cash and cash equivalents 3,774 Restricted cash 19 Trade receivables 4,446 Prepaid expenses and other receivables 51 Vessel 357,138 Other equipment 30 Intangibles: Above market time charter 11,760 Other long term assets 830 Total long term assets 378,048 Liabilities assumed Trade payables (193) Amounts due to owners and affiliates (622) Accrued liabilities and other payables (1,569) Total long term debt (192,286) Derivative instruments (2,642) Total liabilities assumed (197,312) Total identifiable net assets 180,736 Non-controlling interest in total identifiable net assets 88,561 Acquired share in total identifiable net asset $ 92,175 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | Periods prior to December 2016 reflect only costs incurred during the construction and pre-contract period of operations and would not be indicative of the future results of operations or the cash flows that the Partnership will consolidate going forward. Year ended December 31, (in thousands of U.S. dollars) 2016 Total revenue $ 96,526 Net income (loss) 23,382 Non-controlling interest in net income (loss) (8,818) Partners’ interest in net income (loss) $ 32,200 |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information Total Assets By Segment [Table Text Block] | Three months ended September 30, 2017 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations Reporting Time charter revenues $ 35,856 10,460 46,316 (10,460) (1) $ 35,856 Accrual historical boil-off claim (11,850) (11,850) 11,850 (1)(2) Total revenues 35,856 (1,390) 34,466 35,856 Operating expenses (6,672) (1,733) (1,304) (9,709) 1,733 (1) (7,976) Equity in earnings (losses) of joint ventures (7,321) (1) (7,321) Less: Non-controlling interest in Segment EBITDA (5,354) (5,354) 5,354 (3) Segment EBITDA 23,830 (3,123) (1,304) 19,403 Add: Non-controlling interest in Segment EBITDA 5,354 5,354 (5,354) (3) Depreciation and amortization (5,264) (2,462) (7,726) 2,462 (1) (5,264) Operating income (loss) 23,920 (5,585) (1,304) 17,031 15,295 Gain (loss) on derivative instruments 571 1,802 2,373 (1,802) (1) 571 Other financial income (expense), net (7,128) (3,538) (1,146) (11,812) 3,538 (1) (8,274) Income (loss) before tax 17,363 (7,321) (2,450) 7,592 7,592 Income tax expense (2,183) (2) (2,185) (2,185) Net income (loss) $ 15,180 (7,321) (2,452) 5,407 $ 5,407 Non-controlling interest in net income 2,899 2,899 2,899 Partners’ interest in net income (loss) $ 12,281 (7,321) (2,452) 2,508 $ 2,508 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs net income (loss) to Equity in earnings (loss) of joint ventures. (2) For additional information, refer to note 17 under “Joint ventures claims and accruals.” (3) Eliminations reverse the adjustment to Non-controlling interest in Segment EBITDA included for Segment EBITDA and the adjustment to reverse the Non-controlling interest in Segment EBITDA to reconcile to operating income and net income. Three months ended September 30, 2016 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) reporting Time charter revenues $ 23,345 10,937 34,282 (10,937) $ 23,345 Total revenues 23,345 10,937 34,282 23,345 Operating expenses (5,338) (2,379) (1,672) (9,389) 2,379 (7,010) Equity in earnings (losses) of joint ventures 6,565 6,565 Segment EBITDA 18,007 8,558 (1,672) 24,893 Depreciation and amortization (2,647) (2,378) (5,025) 2,378 (2,647) Operating income (loss) 15,360 6,181 (1,672) 19,868 20,253 Gain (loss) on derivative instruments 517 4,139 4,656 (4,139) 517 Other financial income (expense), net (5,748) (3,755) (1,121) (10 624) 3,755 (6,869) Income (loss) before tax 10,129 6,565 (2,793) 13,901 13,901 Income tax expense (474) (2) (476) (476) Net income (loss) $ 9,655 6,565 (2,795) 13,425 $ 13,425 (1) Eliminations reverse each of the income statement line items of the proportional consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. Nine months ended September 30, 2017 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Time charter revenues $ 105,957 31,608 137,565 (31,608) (1) $ 105,957 Accrual historical boil-off claim (11,850) (11,850) 11,850 (1)(2) Total revenues 105,957 19,758 125,715 105,957 Operating expenses (20,627) (6,336) (4,376) (31,339) 6,336 (1) (25,003) Construction contract expenses (151) (151) (151) Equity in earnings (losses) of joint ventures (962) (1) (962) Less: Non-controlling interest in Segment EBITDA (15,772) (15,772) 15,772 (3) Segment EBITDA 69,407 13,422 (4,376) 78,453 Add: Non-controlling interest in Segment EBITDA 15,772 15,772 (15,772) (3) Depreciation and amortization (15,789) (7,379) (23,168) 7,379 (1) (15,789) Operating income (loss) 69,390 6,043 (4,376) 71,057 64,052 Gain (loss) on derivative instruments 1,481 3,513 4,994 (3,513) (1) 1,481 Other financial income (expense), net (22,611) (10,518) (3,132) (36,261) 10,518 (1) (25,743) Income (loss) before tax 48,260 (962) (7,508) 39,790 39,790 Income tax expense (5,980) (2) (5,982) (5,982) Net income (loss) $ 42,280 (962) (7,510) 33,808 $ 33,808 Non-controlling interest in net income 8,455 8,455 8,455 Partners’ interest in net income (loss) $ 33,825 (962) (7,510) 25,353 $ 25,353 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs net income (loss) to Equity in earnings (loss) of joint ventures. (2) For additional information, refer to note 17 under “Joint ventures claims and accruals.” (3) Eliminations reverse the adjustment to Non-controlling interest in Segment EBITDA included for Segment EBITDA and the adjustment to reverse the Non-controlling interest in Segment EBITDA to reconcile to operating income and net income. As of September 30, 2017 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations Reporting Vessels, net of accumulated depreciation $ 683,998 268,009 952,007 (268,009) (1) $ 683,998 Net investment in direct financing lease 287,526 287,526 287,526 Goodwill 251 251 251 Advances to joint ventures 3,198 3,198 3,198 Total assets 1,055,939 288,120 10,452 1,354,511 (288,120) (1) 1,066,391 Accumulated losses of joint ventures 50 50 (26,898) (1) (26,848) Expenditures for vessels & equipment 455 455 (455) (2) Expenditures for drydocking (2) Principal repayment direct financing lease 2,585 2,585 2,585 Amortization of above market contract 2,716 2,716 2,716 Non-controlling interest: amortization of above market contract $ (452) (452) $ (1) Eliminates the proportional share of the Joint venture FSRUs’ Vessels, net of accumulated depreciation and Total assets and reflects the Partnership’s share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated losses of joint ventures. (2) Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Nine months ended September 30, 2016 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) Reporting Time charter revenues $ 67,799 32,054 99,853 (32,054) $ 67,799 Total revenues 67,799 32,054 99,853 67,799 Operating expenses (15,044) (6,480) (4,700) (26,224) 6,480 (19,744) Construction contract expenses (315) (315) (315) Equity in earnings (losses) of joint ventures (2,010) (2,010) Segment EBITDA 52,440 25,574 (4,700) 73,314 Depreciation and amortization (7,912) (7,131) (15,043) 7,131 (7,912) Operating income (loss) 44,528 18,443 (4,700) 58,271 37,818 Gain (loss) on derivative instruments 1,178 (9,028) (7,850) 9,028 1,178 Other financial income (expense), net (17,969) (11,425) (3,156) (32,550) 11,425 (21,125) Income (loss) before tax 27,737 (2,010) (7,856) 17,871 17,871 Income tax expense (1,421) (5) (1,426) (1,426) Net income (loss) $ 26,316 (2,010) (7,861) 16,445 $ 16,445 (1) Eliminations reverse each of the income statement line items of the proportional consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. As of December 31, 2016 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations Reporting Vessels, net of accumulated depreciation $ 342,591 274,932 617,523 (274,932) (1) $ 342,591 Net investment in direct financing lease 290,111 290,111 290,111 Goodwill 251 251 251 Advances to joint ventures 7,218 7,218 7,218 Total assets 698,869 298,712 111,598 1,109,179 (298,712) (1) 810,467 Accumulated losses of joint ventures 50 50 (25,936) (1) (25,886) Expenditures for vessels & equipment 537 783 1,320 (783) (2) 537 Expenditures for drydocking 135 135 (135) (2) Principal repayment direct financing lease 3,192 3,192 3,192 Amortization of above market contract $ 2,405 2,405 $ 2,405 (1) Eliminates the proportional share of the Joint venture FSRUs’ Vessels, net of accumulated depreciation and Total assets and reflects the Partnership’s share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated losses of joint ventures. (2) Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. |
Financial income (expense) (Tab
Financial income (expense) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2017 2016 2017 2016 Interest income $ 98 192 341 $ 697 Interest expense: Interest expense (7,309) (5,486) (21,870) (16,601) Commitment fees (223) (294) (728) (896) Amortization of debt issuance cost and fair value of debt assumed (207) (503) (629) (1,546) Total interest expense (7,739) (6,283) (23,227) (19,043) Gain (loss) on derivative instruments 571 517 1,481 1,178 Other items, net: Foreign exchange gain (loss) 24 (66) (920) (430) Bank charges, fees and other (16) (46) (68) (137) Withholding tax on interest expense and other (641) (666) (1,869) (2,212) Total other items, net (633) (778) (2,857) (2,779) Total financial income (expense), net $ (7,703) (6,352) (24,262) $ (19,947) |
Advances to joint ventures (Tab
Advances to joint ventures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Investments in and Advances to Affiliates [Table Text Block] | As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Current portion of advances to joint ventures $ $ 6,275 Long-term advances to joint ventures 3,198 943 Advances/shareholder loans to joint ventures $ 3,198 $ 7,218 |
Vessels, net (Tables)
Vessels, net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Dry- (in thousands of U.S. dollars) Vessel docking Total Historical cost December 31, 2015 $ 352,433 3,267 $ 355,700 Additions Historical cost December 31, 2016 352,433 3,267 355,700 Depreciation for the year (9,687) (800) (10,487) Accumulated depreciation December 31, 2016 (12,109) (1,000) (13,109) Vessels, net December 31, 2016 340,324 2,267 342,591 Historical cost December 31, 2016 352,433 3,267 355,700 Additions (note 4) 353,738 3,400 357,138 Historical cost September 30, 2017 706,171 6,667 712,838 Depreciation for the period (14,531) (1,200) (15,731) Accumulated depreciation September 30, 2017 (26,640) (2,200) (28,840) Vessels, net September 30, 2017 $ 679,531 4,467 $ 683,998 |
Intangibles and goodwill (Table
Intangibles and goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | (in thousands of U.S. dollars) Above Option Total Goodwill Total Historical cost December 31, 2016 $ 11,000 8,000 19,000 251 $ 19,251 Accumulated amortization, December 31, 2016 (3,010) (3,010) (3,010) Intangibles and goodwill, December 31, 2016 7,990 8,000 15,990 251 16,241 Additions (note 4) 11,760 11,760 11,760 Historical cost September 30, 2017 22,760 8,000 30,760 251 31,011 Amortization for the period (2,716) (2,716) (2,716) Accumulated amortization, September 30, 2017 (5,726) (5,726) (5,726) Intangibles and goodwill, September 30, 2017 $ 17,034 8,000 25,034 251 $ 25,285 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following table presents estimated future amortization expense for the intangibles. Total October - December, 2017 $ 915 2018 3,631 2019 3,631 2020 3,053 2021 2,755 2022 2,755 2023 and thereafter $ 8,294 |
Long-term debt (Tables)
Long-term debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Lampung facility: Export credit tranche $ 127,704 $ 138,868 FSRU tranche 32,208 35,340 Gallant facility: Commercial tranche 123,112 130,222 Export credit tranche 33,917 36,667 Grace facility: Commercial tranche 148,625 Export credit tranche 31,500 Outstanding principal 497,066 341,097 Lampung facility unamortized debt issuance cost (7,947) (9,357) Gallant facility unamortized fair value of debt assumed 640 908 Grace facility unamortized fair value of debt assumed 1,710 Total debt 491,469 332,648 Less: Current portion of long-term debt (45,458) (32,208) Long-term debt $ 446,011 $ 300,440 |
Investments in joint ventures (
Investments in joint ventures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments [Table Text Block] | As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Accumulated losses of joint ventures $ 26,848 $ 25,886 |
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 Partnership has a 50 Neptune GDF Suez Cape Ann Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2017 2016 2017 2016 Time charter revenues $ 20,919 21,874 63,216 $ 64,108 Accrual historical boil-off claim (1) (23,700) (23,700) Total revenues (2,781) 21,874 39,516 64,108 Operating expenses (3,466) (4,760) (12,671) (12,961) Depreciation and amortization (5,077) (4,905) (15,219) (14,723) Operating income (11,324) 12,209 11,626 36,424 Unrealized gain (loss) on derivative instruments 3,604 8,277 7,026 (18,055) Other financial expense, net (7,075) (7,510) (21,037) (22,850) Net income (loss) $ (14,795) 12,976 (2,385) $ (4,481) Share of joint ventures owned 50 % 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations (7,398) 6,488 (1,193) (2,241) Eliminations 77 77 231 231 Equity in earnings (losses) of joint ventures $ (7,321) 6,565 (962) $ (2,010) (1) Refer to note 17 under “Joint ventures claims and accruals.” As of (in thousands of U.S. dollars) September 30, 2017 December 31, 2016 Cash and cash equivalents $ 3,819 $ 9,506 Restricted cash 8,503 8,458 Other current assets 2,727 4,492 Total current assets 15,049 22,456 Restricted cash 25,173 25,107 Vessels, net of accumulated depreciation 552,882 567,187 Total long-term assets 578,055 592,294 Current portion of long-term debt 24,620 23,503 Amounts and loans due to owners and affiliates 113 13,654 Derivative financial instruments 11,701 13,588 Other current liabilities 37,036 20,145 Total current liabilities 73,470 70,890 Long-term debt 435,615 453,957 Loans due to owners and affiliates 6,395 1,887 Derivative financial liabilities 74,394 79,533 Other long-term liabilities 40,061 42,929 Total long-term liabilities 556,465 578,306 Net liabilities $ (36,831) $ (34,446) Share of joint ventures owned 50 % 50 % Share of joint ventures net liabilities before eliminations (18,416) (17,223) Eliminations (8,432) (8,663) Accumulated losses of joint ventures $ (26,848) $ (25,886) |
Related party transactions (Tab
Related party transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Schedule of Related Party Transactions [Table Text Block] | Amounts due from affiliates As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Amounts due from affiliates $ 3,780 $ 4,237 Amounts due to owners and affiliates As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Amounts due to owners and affiliates $ 799 $ 1,374 Revolving credit and seller’s credit due to owners and affiliates As of September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Revolving credit facility $ 24,322 $ 8,622 Seller’s credit 34,383 34,383 Revolving credit and seller’s credit due to owners and affiliates $ 58,705 $ 43,005 |
Hoegh LNG and Subsidiaries [Member] | |
Schedule of Related Party Transactions [Table Text Block] | Amounts included in the consolidated statements of income for the three and nine months ended September 30, 2017 and 2016 or capitalized in the consolidated balance sheets as of September 30, 2017 and December 31, 2016 are as follows: Three months ended Nine months ended Statement of income: September 30, September 30, (in thousands of U.S. dollars) 2017 2016 2017 2016 Revenues Time charter revenue Höegh Gallant $ 12,293 12,335 35,439 $ 35,335 Operating expenses Vessel operating expenses (2) (5,348) (3,856) (15,891) (10,899) Hours, travel expense and overhead (3) and Board of Directors’ fees (4) (778) (905) (2,456) (2,645) Interest income from joint ventures (5) 75 189 305 671 Interest expense and commitment fees to Höegh LNG (6) (1,232) (1,288) (3,438) (3,791) Total $ 5,010 6,475 13,959 $ 18,671 As of Balance sheet September 30, December 31, (in thousands of U.S. dollars) 2017 2016 Equity Cash contribution from Höegh LNG (7) $ 2,075 $ 3,843 Issuance of units for Board of Directors’ fees (4) 189 189 Other and contribution from owner (8) 469 426 Total $ 2,733 $ 4,458 1) Time charter revenue Höegh Gallant: Höegh Gallant 2) Vessel operating expenses: 3) Hours, travel expense and overhead: 4) Board of Directors’ fees 9,805 189 10,650 189 5) Interest income from joint ventures: 6) Interest expense and commitment fees to Höegh LNG and affiliates: Höegh Gallant 7) Cash contribution from Höegh LNG: 8) Other and contribution from owner 21,500 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 December 31, 2016 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 $ 18,566 18,566 18,915 $ 18,915 Restricted cash 1 24,125 24,125 22,209 22,209 Amounts due from affiliate 2 3,780 3,780 4,237 4,237 Derivative instruments 2 (7,223) (7,223) (7,045) (7,045) Other: Advances (shareholder loans) to joint ventures 2 3,198 3,616 7,218 7,355 Current amounts due to owners and affiliates 2 (799) (799) (1,374) (1,374) Cash designated for acquisition 1 91,768 91,768 Other long-term receivables 2 6,195 6,195 Lampung facility 2 (151,965) (167,798) (164,851) (183,585) Gallant facility 2 (157,669) (158,696) (167,797) (168,889) Grace facility 2 (181,835) (182,051) Revolving credit and seller’s credit due to owners and affiliates 2 $ (58,705) (58,705) (43,005) $ (44,098) |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table contains a summary of the loan receivables by type of borrower and the method by which the credit quality is monitored on a quarterly basis: As of Class of Financing Receivables Credit Quality September 30, December 31, (in thousands of U.S. dollars) Indicator Grade 2017 2016 Trade receivable and long-term receivable Payment activity Performing $ 7,637 $ 8,283 Amounts due from affiliate Payment activity Performing 3,780 4,237 Advances to joint ventures Payment activity Performing $ 3,198 $ 7,218 |
Risk management and concentra38
Risk management and concentrations of risk (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives [Table Text Block] | As of September 30, 2017, the following interest rate swap agreements were outstanding: Fair value Fixed Interest carrying interest rate Notional amount rate (in thousands of U.S. dollars) index amount liability Term (1) LIBOR-based debt Lampung interest rate swaps (2) LIBOR $ 159,912 (4,979) Sept 2026 2.8% Gallant interest rate swaps (2) LIBOR 126,750 (509) Sept 2019 1.9% Grace interest rate swaps (2) LIBOR $ 138,375 (1,735) March 2020 2.3% 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 balance sheets. Current Long-term liabilities: liabilities: derivative derivative (in thousands of U.S. dollars) instruments instruments As of September 30, 2017 Interest rate swaps $ (3,287) $ (3,936) As of December 31, 2016 Interest rate swaps $ (3,534) $ (3,511) |
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 statements of income for the three and nine months ended September 30, 2017 and 2016. Three months ended Nine months ended (in thousands of U.S. dollars) 2017 2016 2017 2016 Interest rate swaps: Ineffective portion of cash flow hedge $ (28) 30 (380) $ 12 Amortization of amount excluded from hedge effectiveness 813 701 2,502 1,807 Reclassification from accumulated other comprehensive income (214) (214) (641) (641) Unrealized gains (losses) 571 517 1,481 1,178 Realized gains (losses) Total gains (losses) on derivative instruments $ 571 517 1,481 $ 1,178 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income and changes in accumulated other comprehensive income (“OCI”) in the consolidated statements of changes in partners’ capital is as follows for the periods ended and as of September 30, 2017 and 2016 included in the consolidated statements of other comprehensive income. Cash Flow Hedge (in thousands of U.S. dollars) Before tax gains Tax benefit Net of tax Accumulated Balance as of December 31, 2016 $ (6,947) 1,211 (5,736) $ (5,736) Effective portion of unrealized loss on cash flow hedge 342 342 342 Reclassification of amortization of cash flow hedge to earnings 641 (259) 382 382 Other comprehensive income for period 983 (259) 724 724 Balance as of September 30, 2017 $ (5,964) 952 (5,012) $ (5,012) Cash Flow Hedge (in thousands of U.S. dollars) Before tax gains Tax benefit Net of tax Accumulated Balance as of December 31, 2015 $ (8,830) 1,589 (7,241) $ (7,241) Effective portion of unrealized loss on cash flow hedge (6,283) (6,283) (6,283) Reclassification of amortization of cash flow hedge to earnings 641 (250) 391 391 Other comprehensive income for period (5,642) (250) (5,892) (5,892) Balance as of September 30, 2016 $ (14,472) 1,339 (13,133) $ (13,133) |
Earnings per unit and cash di39
Earnings per unit and cash distributions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Unit [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculations of basic and diluted earnings per unit are presented below: Three months ended Nine months ended (in thousands of U.S. dollars, except per unit numbers) 2017 2016 2017 2016 Partners’ interest in net income $ 2,508 13,425 25,353 $ 16,445 Less: Dividends paid or to be paid (1) (14,441) (10,971) (43,319) (32,910) Under (over) distributed earnings (11,933) 2,454 (17,966) (16,465) Under (over) distributed earnings attributable to: Common units public (6,397) 1,030 (9,632) (6,912) Common units Höegh LNG (767) 197 (1,155) (1,324) Subordinated units Höegh LNG (4,769) 1,227 (7,179) (8,229) (11,933) 2,454 (17,966) (16,465) Basic weighted average units outstanding (in thousands) Common units public 17,649 11,051 17,644 11,044 Common units Höegh LNG 2,116 2,116 2,116 2,116 Subordinated units Höegh LNG 13,156 13,156 13,156 13,156 Diluted weighted average units outstanding (in thousands) Common units public 17,661 11,054 17,654 11,048 Common units Höegh LNG 2,116 2,116 2,116 2,116 Subordinated units Höegh LNG 13,156 13,156 13,156 13,156 Basic and diluted earnings per unit (2): Common unit public $ 0.07 $ 0.51 $ 0.74 $ 0.61 Common unit Höegh LNG (3) $ 0.09 $ 0.51 $ 0.80 $ 0.63 Subordinated unit Höegh LNG (3) $ 0.09 $ 0.51 $ 0.80 $ 0.63 (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 on the number of units outstanding at the period end. (2) Effective June 3, 2016, the Partnership granted 21,500 (3) Includes total amounts attributable to incentive distributions rights of $ 285,234 855,618 39,521 118,552 245,713 737,066 113,227 339,634 15,688 47,059 97,538 292,575 |
Description of business (Detail
Description of business (Details) | 9 Months Ended | |
Sep. 30, 2017 | ||
Hoegh LNG Partners LP [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Marshall Islands | |
Purpose | Holding Company | |
Hoegh LNG Partners Operating LLC [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Marshall Islands | |
Purpose | Holding Company | |
Hoegh LNG Services Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | United Kingdom | |
Purpose | Administration Services Company | |
Hoegh LNG Lampung Pte. Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Singapore | |
Purpose | Owns 49% of PT Hoegh LNG Lampung | |
PT Hoegh LNG Lampung [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Indonesia | [1] |
Purpose | Owns PGN FSRU Lampung | [1] |
SRV Joint Gas Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cayman Islands | [2] |
Purpose | Owns Neptune | [2] |
SRV Joint Gas Two Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cayman Islands | [2] |
Purpose | Owns GDF Suez Cape Ann | [2] |
Hoegh LNG FRSU III Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cayman Islands | [3] |
Purpose | Owns 100% of Hoegh LNG Cyprus Limited | [3] |
Hoegh LNG Cyprus Limited [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cyprus | [3] |
Purpose | Owns Höegh Gallant | [3] |
Hoegh LNG Cyprus Limited Egypt Branch [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Egypt | [3] |
Purpose | Branch of Hoegh LNG Cyprus Limited | [3] |
Hoegh LNG Colombia Holding Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cayman Islands | [4] |
Purpose | Owns 100% of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S. | [4] |
Hoegh LNG FSRU IV Ltd. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cayman Islands | [4] |
Purpose | Owns Höegh Grace | [4] |
Hoegh LNG Colombia S.A.S. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Colombia | [4] |
Purpose | Operating Company | [4] |
[1] | PT Hoegh LNG Lampung is a variable interest entity, which is controlled by Hoegh LNG Lampung Pte. Ltd. and is, therefore, 100% consolidated in the consolidated financial statements. | |
[2] | The remaining 50% interest in each joint venture is owned by Mitsui O.S.K. Lines, Ltd. and Tokyo LNG Tanker Co. | |
[3] | The ownership interests were acquired on October 1, 2015. | |
[4] | The 51% ownership interests were acquired on January 3, 2017. Refer to note 4. |
Description of business (Deta41
Description of business (Details Textual) - shares | Oct. 05, 2017 | Jan. 03, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Aug. 12, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||
Joint Ventures, Ownership Percentage | 50.00% | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | |||||
Hoegh Grace [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | |||||
Hoegh Grace [Member] | Series A Preferred Stock [Member] | Subsequent Event [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Limited Partners Capital Account, Units Issued | 4,600,000 | |||||
Preferred Stock, Dividend Rate, Percentage | 8.75% | |||||
Hoegh LNG Holdings Ltd [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 51.00% | |||||
Limited Partners Capital Account, Units Issued | 2,116,060 | |||||
Hoegh LNG Partners LP [Member] | Hoegh Grace [Member] | Series A Preferred Stock [Member] | Subsequent Event [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Limited Partners Capital Account, Units Issued | 4,600,000 | |||||
Preferred Stock, Dividend Rate, Percentage | 8.75% | |||||
Hoegh LNG Lampung Pte. Ltd [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | |||||
Hoegh LNG Colombia Holding Ltd [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 51.00% | |||||
Mitsui O.S.K. Lines, Ltd. and Tokyo LNG Tanker Co. [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Hoegh LNG FSRU IV Ltd. [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Lease Expiration Term | 10 years | |||||
Non Cancellable Lease Expiration Term | 10 years | |||||
Lease Initial Term | 20 years | |||||
Hoegh LNG FSRU IV Ltd. [Member] | Minimum [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Lease Expiration Term | 10 years | |||||
Hoegh LNG FSRU IV Ltd. [Member] | Maximum [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Lease Expiration Term | 15 years | |||||
Underwritten Public Offering [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Limited Partners Capital Account, Units Issued | 6,588,389 |
Significant accounting polici42
Significant accounting policies (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | ||||||
Other Noncash Income Tax Expense | $ 200 | $ 0 | $ 632 | $ 0 | ||
SRV Joint Gas Ltd [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Advances to Affiliate | 2,500 | 2,500 | $ 3,900 | |||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net | 13,700 | 13,700 | 11,200 | |||
SRV Joint Gas Two Ltd [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Advances to Affiliate | 700 | 700 | 3,300 | |||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net | $ 13,100 | $ 13,100 | $ 14,700 | |||
PT Hoegh LNG Lampung [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | |||||
Hoegh LNG FSRU III Ltd [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | |||||
Hoegh LNG Colombia Ltd [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% |
Formation transactions and In43
Formation transactions and Initial Public Offering (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Aug. 12, 2014 | Sep. 30, 2017 | Aug. 31, 2014 |
Formation Transactions and Initial Public Offering [Line Items] | |||
Limited Partnership Contribution On Promissory Note Receivables And Accrued Interest | $ 40 | ||
Incentive Distribution Right Target Distribution Per Unit | $ 0.3375 | ||
IPO [Member] | |||
Formation Transactions and Initial Public Offering [Line Items] | |||
Limited Partners' Capital Account, Units Issued | 11,040,000 | ||
Exercise Of Option, Additional Common Units | 1,440,000 | ||
Proceeds from Issuance Initial Public Offering | $ 203.5 | ||
Percentage of Partnership Interest | 42.00% | ||
Gross Proceeds From Initial Public offering | $ 220.8 | ||
Net Cash Proceeds Retained From Initial Public offering | $ 20 | ||
Sale of Stock, Price Per Share | $ 20 | ||
Payments to Fund Long-term Loans to Related Parties | $ 140 | ||
Hoegh LNG Holdings Ltd [Member] | |||
Formation Transactions and Initial Public Offering [Line Items] | |||
Limited Partners Capital Account, Units Outstanding | 2,116,060 | ||
Percentage of incentive distribution rights | 100.00% | ||
Limited Partners' Capital Account, Units Issued | 2,116,060 | ||
Cash Available for Distributions | $ 43.5 | ||
Incentive Distribution Right Target Distribution Per Unit | $ 0.388125 | ||
Related Party Transaction, Rate | 5.88% | ||
Hoegh LNG Holdings Ltd [Member] | Subordinated Unit [Member] | |||
Formation Transactions and Initial Public Offering [Line Items] | |||
Limited Partners Capital Account, Units Outstanding | 13,156,060 | ||
Limited Partners' Capital Account, Units Issued | 13,156,060 | ||
Hoegh LNG Partners LP [Member] | Partnership Interest [Member] | |||
Formation Transactions and Initial Public Offering [Line Items] | |||
Percentage of Partnership Interest | 58.00% | ||
Revolving Credit Facility [Member] | |||
Formation Transactions and Initial Public Offering [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85 | ||
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 |
Business combinations (Details)
Business combinations (Details) - USD ($) $ in Thousands | Jan. 03, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Use of proceeds from public offering (issuance of 6,588,389 common units to the public) | $ 91,768 | $ 0 | $ 0 | $ 92,175 | $ 0 |
Working capital adjustment | 407 | ||||
Total consideration | 92,175 | ||||
Assets acquired | |||||
Cash and cash equivalents | 3,774 | ||||
Restricted cash | 19 | ||||
Trade receivables | 4,446 | ||||
Prepaid expenses and other receivables | 51 | ||||
Vessel | 357,138 | ||||
Other equipment | 30 | ||||
Other long term assets | 830 | ||||
Total long term assets | 378,048 | ||||
Liabilities assumed | |||||
Trade payables | (193) | ||||
Amounts due to owners and affiliates | (622) | ||||
Accrued liabilities and other payables | (1,569) | ||||
Total long term debt | (192,286) | ||||
Derivative instruments | (2,642) | ||||
Total liabilities assumed | (197,312) | ||||
Non-controlling interest in total identifiable net assets | 88,561 | ||||
Acquired share in total identifiable net asset | 92,175 | ||||
Total identifiable net assets | 180,736 | ||||
Above market time character [Member] | |||||
Assets acquired | |||||
Intangibles: Above market time charter | $ 11,760 | $ 11,800 | $ 11,800 |
Business combinations (Details
Business combinations (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Purchase Price Consideration [Line Items] | |
Total revenue | $ 96,526 |
Net income (loss) | 23,382 |
Non-controlling interest in net income (loss) | (8,818) |
Partners' interest in net income (loss) | $ 32,200 |
Business combinations (Detail46
Business combinations (Details Textual) - USD ($) $ in Thousands | Jan. 03, 2017 | Nov. 01, 2014 | Dec. 31, 2016 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Purchase Price Consideration [Line Items] | ||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 38,500 | |||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 17,300 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | $ 197,312 | |||||||
Payments to Acquire Businesses, Gross | 91,768 | $ 0 | $ 0 | $ 92,175 | $ 0 | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | 49.00% | ||||||
Partners' Capital Account, Units, Sold in Public Offering | 6,588,389 | |||||||
Above market time character [Member] | ||||||||
Purchase Price Consideration [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 11,760 | $ 11,800 | $ 11,800 | |||||
Underwritten Public Offering [Member] | ||||||||
Purchase Price Consideration [Line Items] | ||||||||
Gross Proceeds from Public Offering | $ 111,500 | |||||||
Hoegh LNG Colombia Holding Ltd [Member] | ||||||||
Purchase Price Consideration [Line Items] | ||||||||
Percentage of Partnership Interest | 51.00% | |||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 51.00% | |||||||
Other Payments to Acquire Businesses | $ 400 | |||||||
Hoegh Gallants [Member] | ||||||||
Purchase Price Consideration [Line Items] | ||||||||
Repayments of Debt | $ 12,600 | |||||||
Net Cash Used for Working Capital Adjustments | 6,600 | |||||||
Hoegh Grace Entities [Member] | ||||||||
Purchase Price Consideration [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | |||||||
Hoegh Grace Entities and Hoegh LNG Colombia Holding Ltd [Member] | ||||||||
Purchase Price Consideration [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | $ 400 | |||||||
Payments to Acquire Businesses, Gross | $ 91,800 | $ 91,800 | ||||||
Hoegh LNG FSRU IV Ltd and Hoegh Grace Entities [Member] | ||||||||
Purchase Price Consideration [Line Items] | ||||||||
Lease Expiration Term | 20 years | 9 years 6 months | ||||||
Hoegh LNG FSRU IV Ltd and Hoegh Grace Entities [Member] | Minimum [Member] | ||||||||
Purchase Price Consideration [Line Items] | ||||||||
Lease Expiration Term | 10 years | |||||||
Hoegh LNG FSRU IV Ltd and Hoegh Grace Entities [Member] | Maximum [Member] | ||||||||
Purchase Price Consideration [Line Items] | ||||||||
Lease Expiration Term | 15 years |
Segment information (Details)
Segment information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||||||
Time charter revenues | $ 35,856 | $ 23,345 | $ 105,957 | $ 67,799 | ||||||
Accrual historical boil-off claim | 0 | 0 | ||||||||
Total revenues | 35,856 | 23,345 | 105,957 | 67,799 | ||||||
Operating expenses | (7,976) | (7,010) | (25,003) | (19,744) | ||||||
Construction contract expenses | 0 | 0 | (151) | (315) | ||||||
Equity in earnings (losses) of joint ventures | (7,321) | 6,565 | (962) | (2,010) | ||||||
Less: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Segment EBITDA | ||||||||||
Add: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Depreciation and amortization | (5,264) | (2,647) | (15,789) | (7,912) | ||||||
Operating income (loss) | 15,295 | 20,253 | 64,052 | 37,818 | ||||||
Gain (loss) on derivative instruments | 571 | 517 | 1,481 | 1,178 | ||||||
Other financial income (expense), net | (8,274) | (6,869) | (25,743) | (21,125) | ||||||
Income (loss) before tax | 7,592 | 13,901 | 39,790 | 17,871 | ||||||
Income tax expense | (2,185) | (476) | (5,982) | (1,426) | ||||||
Net income (loss) | 5,407 | 13,425 | 33,808 | 16,445 | ||||||
Non-controlling interest in net income | 2,899 | 0 | 8,455 | 0 | ||||||
Partners’ interest in net income (loss) | 2,508 | 13,425 | 25,353 | 16,445 | ||||||
Vessels, net of accumulated depreciation | 683,998 | 683,998 | $ 342,591 | |||||||
Net investment in direct financing lease | 287,526 | 287,526 | 290,111 | |||||||
Goodwill | 25,285 | 25,285 | 16,241 | |||||||
Advances to joint ventures | 3,198 | 3,198 | 7,218 | |||||||
Total assets | 1,066,391 | 1,066,391 | 810,467 | |||||||
Accumulated losses of joint ventures | 26,848 | 26,848 | 25,886 | |||||||
Expenditures for vessels & equipment | 0 | 0 | 537 | |||||||
Expenditures for drydocking | 0 | 0 | 0 | |||||||
Principal repayment direct financing lease | 2,585 | 2,585 | 3,192 | |||||||
Amortization of above market contract | (915) | (604) | (2,716) | (1,800) | 2,405 | |||||
Noncontrolling Interest [Member] | ||||||||||
Amortization of above market contract | 0 | |||||||||
Majority held FSRUs [Member] | ||||||||||
Time charter revenues | 35,856 | 23,345 | 105,957 | 67,799 | ||||||
Accrual historical boil-off claim | 0 | 0 | ||||||||
Total revenues | 35,856 | 23,345 | 105,957 | 67,799 | ||||||
Operating expenses | (6,672) | (5,338) | (20,627) | (15,044) | ||||||
Construction contract expenses | (151) | (315) | ||||||||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | ||||||
Less: Non-controlling interest in Segment EBITDA | (5,354) | (15,772) | ||||||||
Segment EBITDA | 23,830 | 18,007 | 69,407 | 52,440 | ||||||
Add: Non-controlling interest in Segment EBITDA | 5,354 | 15,772 | ||||||||
Depreciation and amortization | (5,264) | (2,647) | (15,789) | (7,912) | ||||||
Operating income (loss) | 23,920 | 15,360 | 69,390 | 44,528 | ||||||
Gain (loss) on derivative instruments | 571 | 517 | 1,481 | 1,178 | ||||||
Other financial income (expense), net | (7,128) | (5,748) | (22,611) | (17,969) | ||||||
Income (loss) before tax | 17,363 | 10,129 | 48,260 | 27,737 | ||||||
Income tax expense | (2,183) | (474) | (5,980) | (1,421) | ||||||
Net income (loss) | 15,180 | 9,655 | 42,280 | 26,316 | ||||||
Non-controlling interest in net income | 2,899 | 8,455 | ||||||||
Partners’ interest in net income (loss) | 12,281 | 33,825 | ||||||||
Vessels, net of accumulated depreciation | 683,998 | 683,998 | 342,591 | |||||||
Net investment in direct financing lease | 287,526 | 287,526 | 290,111 | |||||||
Goodwill | 251 | 251 | 251 | |||||||
Advances to joint ventures | 0 | 0 | 0 | |||||||
Total assets | 1,055,939 | 1,055,939 | 698,869 | |||||||
Accumulated losses of joint ventures | 0 | 0 | 0 | |||||||
Expenditures for vessels & equipment | 0 | 0 | 537 | |||||||
Expenditures for drydocking | 0 | 0 | 0 | |||||||
Principal repayment direct financing lease | 2,585 | 2,585 | 3,192 | |||||||
Amortization of above market contract | 2,716 | 2,405 | ||||||||
Majority held FSRUs [Member] | Noncontrolling Interest [Member] | ||||||||||
Amortization of above market contract | (452) | |||||||||
Joint venture FSRUs [Member] | ||||||||||
Time charter revenues | 10,460 | 10,937 | 31,608 | 32,054 | ||||||
Accrual historical boil-off claim | (11,850) | (11,850) | ||||||||
Total revenues | (1,390) | 10,937 | 19,758 | 32,054 | ||||||
Operating expenses | (1,733) | (2,379) | (6,336) | (6,480) | ||||||
Construction contract expenses | 0 | 0 | ||||||||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | ||||||
Less: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Segment EBITDA | (3,123) | 8,558 | 13,422 | 25,574 | ||||||
Add: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Depreciation and amortization | (2,462) | (2,378) | (7,379) | (7,131) | ||||||
Operating income (loss) | (5,585) | 6,181 | 6,043 | 18,443 | ||||||
Gain (loss) on derivative instruments | 1,802 | 4,139 | 3,513 | (9,028) | ||||||
Other financial income (expense), net | (3,538) | (3,755) | (10,518) | (11,425) | ||||||
Income (loss) before tax | (7,321) | 6,565 | (962) | (2,010) | ||||||
Income tax expense | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | (7,321) | 6,565 | (962) | (2,010) | ||||||
Non-controlling interest in net income | 0 | 0 | ||||||||
Partners’ interest in net income (loss) | (7,321) | (962) | ||||||||
Vessels, net of accumulated depreciation | 268,009 | 268,009 | 274,932 | |||||||
Net investment in direct financing lease | 0 | 0 | 0 | |||||||
Goodwill | 0 | 0 | 0 | |||||||
Advances to joint ventures | 0 | 0 | 0 | |||||||
Total assets | 288,120 | 288,120 | 298,712 | |||||||
Accumulated losses of joint ventures | 0 | 0 | 0 | |||||||
Expenditures for vessels & equipment | 455 | 455 | 783 | |||||||
Expenditures for drydocking | 0 | 0 | 135 | |||||||
Principal repayment direct financing lease | 0 | 0 | 0 | |||||||
Amortization of above market contract | 0 | 0 | ||||||||
Joint venture FSRUs [Member] | Noncontrolling Interest [Member] | ||||||||||
Amortization of above market contract | 0 | |||||||||
Other [Member] | ||||||||||
Time charter revenues | 0 | 0 | 0 | 0 | ||||||
Accrual historical boil-off claim | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | 0 | ||||||
Operating expenses | (1,304) | (1,672) | (4,376) | (4,700) | ||||||
Construction contract expenses | 0 | 0 | ||||||||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | ||||||
Less: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Segment EBITDA | (1,304) | (1,672) | (4,376) | (4,700) | ||||||
Add: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||||
Operating income (loss) | (1,304) | (1,672) | (4,376) | (4,700) | ||||||
Gain (loss) on derivative instruments | 0 | 0 | 0 | 0 | ||||||
Other financial income (expense), net | (1,146) | (1,121) | (3,132) | (3,156) | ||||||
Income (loss) before tax | (2,450) | (2,793) | (7,508) | (7,856) | ||||||
Income tax expense | (2) | (2) | (2) | (5) | ||||||
Net income (loss) | (2,452) | (2,795) | (7,510) | (7,861) | ||||||
Non-controlling interest in net income | 0 | 0 | ||||||||
Partners’ interest in net income (loss) | (2,452) | (7,510) | ||||||||
Vessels, net of accumulated depreciation | 0 | 0 | 0 | |||||||
Net investment in direct financing lease | 0 | 0 | 0 | |||||||
Goodwill | 0 | 0 | 0 | |||||||
Advances to joint ventures | 3,198 | 3,198 | 7,218 | |||||||
Total assets | 10,452 | 10,452 | 111,598 | |||||||
Accumulated losses of joint ventures | 50 | 50 | 50 | |||||||
Expenditures for vessels & equipment | 0 | 0 | 0 | |||||||
Expenditures for drydocking | 0 | 0 | 0 | |||||||
Principal repayment direct financing lease | 0 | 0 | 0 | |||||||
Amortization of above market contract | 0 | 0 | ||||||||
Other [Member] | Noncontrolling Interest [Member] | ||||||||||
Amortization of above market contract | 0 | |||||||||
Total Segments reporting [Member] | ||||||||||
Time charter revenues | 46,316 | 34,282 | 137,565 | 99,853 | ||||||
Accrual historical boil-off claim | (11,850) | (11,850) | ||||||||
Total revenues | 34,466 | 34,282 | 125,715 | 99,853 | ||||||
Operating expenses | (9,709) | (9,389) | (31,339) | (26,224) | ||||||
Construction contract expenses | (151) | (315) | ||||||||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | ||||||
Less: Non-controlling interest in Segment EBITDA | (5,354) | (15,772) | ||||||||
Segment EBITDA | 19,403 | 24,893 | 78,453 | 73,314 | ||||||
Add: Non-controlling interest in Segment EBITDA | 5,354 | 15,772 | ||||||||
Depreciation and amortization | (7,726) | (5,025) | (23,168) | (15,043) | ||||||
Operating income (loss) | 17,031 | 19,868 | 71,057 | 58,271 | ||||||
Gain (loss) on derivative instruments | 2,373 | 4,656 | 4,994 | (7,850) | ||||||
Other financial income (expense), net | (11,812) | (10,624) | (36,261) | (32,550) | ||||||
Income (loss) before tax | 7,592 | 13,901 | 39,790 | 17,871 | ||||||
Income tax expense | (2,185) | (476) | (5,982) | (1,426) | ||||||
Net income (loss) | 5,407 | 13,425 | 33,808 | 16,445 | ||||||
Non-controlling interest in net income | 2,899 | 8,455 | ||||||||
Partners’ interest in net income (loss) | 2,508 | 25,353 | ||||||||
Vessels, net of accumulated depreciation | 952,007 | 952,007 | 617,523 | |||||||
Net investment in direct financing lease | 287,526 | 287,526 | 290,111 | |||||||
Goodwill | 251 | 251 | 251 | |||||||
Advances to joint ventures | 3,198 | 3,198 | 7,218 | |||||||
Total assets | 1,354,511 | 1,354,511 | 1,109,179 | |||||||
Accumulated losses of joint ventures | 50 | 50 | 50 | |||||||
Expenditures for vessels & equipment | 455 | 455 | 1,320 | |||||||
Expenditures for drydocking | 0 | 0 | 135 | |||||||
Principal repayment direct financing lease | 2,585 | 2,585 | 3,192 | |||||||
Amortization of above market contract | 2,716 | 2,405 | ||||||||
Total Segments reporting [Member] | Noncontrolling Interest [Member] | ||||||||||
Amortization of above market contract | (452) | |||||||||
Eliminations [Member] | ||||||||||
Time charter revenues | (10,460) | [1] | (10,937) | [2] | (31,608) | [1] | (32,054) | [2] | ||
Accrual historical boil-off claim | [1],[3] | 11,850 | 11,850 | [4] | ||||||
Operating expenses | 1,733 | [1] | 2,379 | [2] | 6,336 | [1] | 6,480 | [2] | ||
Equity in earnings (losses) of joint ventures | (7,321) | [1] | 6,565 | [2] | (962) | [1] | (2,010) | [2] | ||
Less: Non-controlling interest in Segment EBITDA | [5] | 5,354 | 15,772 | |||||||
Add: Non-controlling interest in Segment EBITDA | [5] | (5,354) | (15,772) | |||||||
Depreciation and amortization | 2,462 | [1] | 2,378 | [2] | 7,379 | [1] | 7,131 | [2] | ||
Gain (loss) on derivative instruments | (1,802) | [1] | (4,139) | [2] | (3,513) | [1] | 9,028 | [2] | ||
Other financial income (expense), net | 3,538 | [1] | 3,755 | [2] | 10,518 | [1] | 11,425 | [2] | ||
Income (loss) before tax | 0 | 0 | [2] | 0 | 0 | [2] | ||||
Income tax expense | 0 | 0 | [2] | 0 | 0 | [2] | ||||
Net income (loss) | 0 | $ 0 | [2] | 0 | $ 0 | [2] | ||||
Non-controlling interest in net income | ||||||||||
Partners’ interest in net income (loss) | 0 | 0 | ||||||||
Vessels, net of accumulated depreciation | [6] | (268,009) | (268,009) | (274,932) | ||||||
Net investment in direct financing lease | 0 | 0 | 0 | |||||||
Goodwill | 0 | 0 | 0 | |||||||
Advances to joint ventures | 0 | 0 | 0 | |||||||
Total assets | [6] | (288,120) | (288,120) | (298,712) | ||||||
Accumulated losses of joint ventures | [6] | (26,898) | (26,898) | (25,936) | ||||||
Expenditures for vessels & equipment | [7] | (455) | (455) | (783) | ||||||
Expenditures for drydocking | [7] | 0 | 0 | (135) | ||||||
Principal repayment direct financing lease | $ 0 | 0 | 0 | |||||||
Amortization of above market contract | 0 | $ 0 | ||||||||
Eliminations [Member] | Noncontrolling Interest [Member] | ||||||||||
Amortization of above market contract | $ 0 | |||||||||
[1] | Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs net income (loss) to Equity in earnings (loss) of joint ventures. | |||||||||
[2] | Eliminations reverse each of the income statement line items of the proportional consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. | |||||||||
[3] | For additional information, refer to note 17 under “Joint ventures claims and accruals.” | |||||||||
[4] | The 51% ownership interests were acquired on January 3, 2017. Refer to note 4. | |||||||||
[5] | Eliminations reverse the adjustment to Non-controlling interest in Segment EBITDA included for Segment EBITDA and the adjustment to reverse the Non-controlling interest in Segment EBITDA to reconcile to operating income and net income. | |||||||||
[6] | Eliminates the proportional share of the Joint venture FSRUs’ Vessels, net of accumulated depreciation and Total assets and reflects the Partnership’s share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated losses of joint ventures. | |||||||||
[7] | Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership |
Segment information (Details Te
Segment information (Details Textual) - USD ($) $ in Millions | 1 Months Ended | ||
Jan. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |
Hoegh Grace Entities [Member] | |||
Equity Method Investment, Ownership Percentage | 51.00% | ||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 51.00% | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||
Revolving Credit Facility [Member] | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 85 | ||
GDF Suez Neptune and the GDF Suez Cape Ann [Member] | |||
Equity Method Investment, Ownership Percentage | 50.00% |
Construction contract expenses
Construction contract expenses (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2014 | |
Construction Contract Revenues [Line Items] | |||
Product Warranty Accrual | $ 0.3 | $ 2 | |
Product Warranty Expense | $ 0.2 |
Financial income (expense) (Det
Financial income (expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest income | $ 98 | $ 192 | $ 341 | $ 697 |
Interest expense: | ||||
Interest expense | (7,309) | (5,486) | (21,870) | (16,601) |
Commitment fees | (223) | (294) | (728) | (896) |
Amortization of debt issuance cost and fair value of debt assumed | (207) | (503) | (629) | (1,546) |
Total interest expense | (7,739) | (6,283) | (23,227) | (19,043) |
Gain (loss) on derivative instruments | 571 | 517 | 1,481 | 1,178 |
Other items, net: | ||||
Foreign exchange gain (loss) | 24 | (66) | (920) | (430) |
Bank charges, fees and other | (16) | (46) | (68) | (137) |
Withholding tax on interest expense and other | (641) | (666) | (1,869) | (2,212) |
Total other items, net | (633) | (778) | (2,857) | (2,779) |
Total financial income (expense), net | $ (7,703) | $ (6,352) | $ (24,262) | $ (19,947) |
Income tax (Details Textual)
Income tax (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Expense (Benefit) | $ 2,185 | $ 476 | $ 5,982 | $ 1,426 |
Utilization of Tax Loss Carryforwards | 95 | 318 | ||
Long-term Income Tax Payable | 2,547 | 2,547 | ||
Other Noncash Income Tax Expense | $ 200 | $ 0 | 632 | $ 0 |
Increase Long Term Income Tax Payable | $ 318 |
Advances to joint ventures (Det
Advances to joint ventures (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Advances to Joint Ventures [Line Items] | ||
Current portion of advances to joint ventures | $ 0 | $ 6,275 |
Long-term advances to joint ventures | 3,198 | 943 |
Advances/shareholder loans to joint ventures | $ 3,198 | $ 7,218 |
Advances to joint ventures (D53
Advances to joint ventures (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 3,198 | $ 7,218 |
SRV Joint Gas Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | 2,500 | 3,900 |
SRV Joint Gas Two Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 700 | $ 3,300 |
Vessels, net (Details)
Vessels, net (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Beginning Balance, Historical Cost | $ 355,700 | $ 355,700 |
Additions | 357,138 | 0 |
Ending Balance, Historical Cost | 712,838 | 355,700 |
Depreciation for the year | (15,731) | (10,487) |
Accumulated depreciation | (28,840) | (13,109) |
Vessels, net | 683,998 | 342,591 |
Vessel [Member] | ||
Beginning Balance, Historical Cost | 352,433 | 352,433 |
Additions | 353,738 | 0 |
Ending Balance, Historical Cost | 706,171 | 352,433 |
Depreciation for the year | (14,531) | (9,687) |
Accumulated depreciation | (26,640) | (12,109) |
Vessels, net | 679,531 | 340,324 |
Dry docking [Member] | ||
Beginning Balance, Historical Cost | 3,267 | 3,267 |
Additions | 3,400 | 0 |
Ending Balance, Historical Cost | 6,667 | 3,267 |
Depreciation for the year | (1,200) | (800) |
Accumulated depreciation | (2,200) | (1,000) |
Vessels, net | $ 4,467 | $ 2,267 |
Intangibles and goodwill (Detai
Intangibles and goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Historical cost, beginning balance | $ 19,000 | |
Accumulated amortization, Beginnig balance | (3,010) | |
Intangibles and goodwill, Beginning balance | 15,990 | |
Additions | 11,760 | |
Historical cost, Ending balance | 30,760 | |
Amortization for the period | (2,716) | |
Accumulated amortization, Ending balance | (5,726) | |
Intangibles and goodwill, Ending balance | 25,034 | |
Historical cost | 251 | |
Historical cost | 251 | |
Goodwill | 251 | |
Historical cost, Goodwill | 19,251 | |
Intangibles and goodwill, Beginning balance | 16,241 | |
Historical cost, Goodwill | 31,011 | |
Intangibles and goodwill, Ending balance | 25,285 | |
Above Market Time Charter [Member] | ||
Historical cost, beginning balance | 11,000 | |
Accumulated amortization, Beginnig balance | (3,010) | |
Intangibles and goodwill, Beginning balance | 7,990 | |
Additions | 11,760 | |
Historical cost, Ending balance | 22,760 | |
Amortization for the period | (2,716) | |
Accumulated amortization, Ending balance | (5,726) | |
Intangibles and goodwill, Ending balance | 17,034 | |
Option for time charter extension [Member] | ||
Historical cost, beginning balance | 8,000 | |
Accumulated amortization, Beginnig balance | 0 | |
Intangibles and goodwill, Beginning balance | 8,000 | |
Additions | 0 | |
Historical cost, Ending balance | 8,000 | |
Amortization for the period | 0 | |
Accumulated amortization, Ending balance | 0 | |
Intangibles and goodwill, Ending balance | $ 8,000 | |
Goodwill [Member] | ||
Goodwill | $ 251 |
Intangibles and goodwill (Det56
Intangibles and goodwill (Details 1) $ in Thousands | Sep. 30, 2017USD ($) |
October - December, 2017 | $ 915 |
2,018 | 3,631 |
2,019 | 3,631 |
2,020 | 3,053 |
2,021 | 2,755 |
2,022 | 2,755 |
2023 and thereafter | $ 8,294 |
Intangibles and goodwill (Det57
Intangibles and goodwill (Details Textual) | 9 Months Ended |
Sep. 30, 2017 | |
Hoegh Grace [Member] | |
Remaining Noncancellable Charter Term | 9 years 6 months |
Long-term debt (Details)
Long-term debt (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Outstanding principal | $ 497,066 | $ 341,097 |
Total debt | 491,469 | 332,648 |
Less: Current portion of long-term debt | (45,458) | (32,208) |
Long-term debt | 446,011 | 300,440 |
Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Lampung facility unamortized debt issuance cost | (7,947) | (9,357) |
Gallant facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Unamortized Premium | 640 | 908 |
Grace Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Unamortized Premium | 1,710 | 0 |
Export credit tranche One [Member] | Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 127,704 | 138,868 |
FSRU tranche [Member] | Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 32,208 | 35,340 |
Commercial tranche [Member] | Gallant facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 123,112 | 130,222 |
Export credit tranche Four [Member] | Gallant facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 33,917 | 36,667 |
Commercial tranche One [Member] | Grace Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 148,625 | 0 |
Export credit tranche [Member] | Grace Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 31,500 | $ 0 |
Long-term debt (Details Textual
Long-term debt (Details Textual) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Instrument [Line Items] | |
Loan Covenant, Security Maintenance Percentage to Loans Outstanding | 125.00% |
Hoegh LNG [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Covenant Description | Höegh LNG must maintain o Consolidated book equity (excluding hedge reserves and mark to market value of derivatives) equal to the greater of § $200 million, and § 25% of total assets o Free liquid assets (cash and cash equivalents, publicly trade debt securities with an A rating with Standard & Poor’s and available draws under a bank credit facility for a term of more than 12 months) equal to the greater of § $20 million, § 5% of total consolidated indebtedness provided on a recourse basis, and § Any amount specified to be a minimum liquidity requirement under any legal obligation |
Hoegh LNG Partners LP [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Covenant Description | The Partnership must maintain o Consolidated book equity (excluding hedge reserves and mark to market value of derivatives) equal to the greater of § $150 million, and § 25% of total assets o Free liquid assets (cash and cash equivalents, publicly trade debt securities with an A rating with Standard & Poor’s and available draws under a bank credit facility for a term of more than 12 months) equal to the greater of § $15 million, and § $3 million multiplied by the number of vessels owned or leased by the Partnership |
Borrowers [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Covenant Description | Each borrower must maintain o Current assets greater than current liabilities as defined in the agreements, and o A ratio of EBITDA to debt service (principal repayments, guarantee commission and interest expense) of a minimum of 115% |
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 $20 million. |
Investments in joint ventures60
Investments in joint ventures (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Accumulated losses of joint ventures | $ 26,848 | $ 25,886 |
Investments in joint ventures61
Investments in joint ventures (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Time charter revenues | $ 35,856 | $ 23,345 | $ 105,957 | $ 67,799 | ||||
Accrual historical boil-off claim (1) | 0 | 0 | ||||||
Total revenues | 35,856 | 23,345 | 105,957 | 67,799 | ||||
Operating expenses | (7,976) | (7,010) | (25,003) | (19,744) | ||||
Depreciation and amortization | (5,264) | (2,647) | (15,789) | (7,912) | ||||
Operating income | 15,295 | 20,253 | 64,052 | 37,818 | ||||
Unrealized gain (loss) on derivative instruments | 571 | 517 | 1,481 | 1,178 | ||||
Net income (loss) | $ 2,508 | $ 13,425 | $ 25,353 | $ 16,445 | ||||
Share of joint ventures owned | 50.00% | 50.00% | 50.00% | 50.00% | ||||
Equity in earnings (losses) of joint ventures | $ (7,321) | $ 6,565 | $ (962) | $ (2,010) | ||||
Cash and cash equivalents | 18,566 | 20,805 | 18,566 | 20,805 | $ 15,452 | $ 18,915 | $ 18,006 | $ 32,868 |
Restricted cash | 10,203 | 10,203 | 8,055 | |||||
Total current assets | 45,953 | 45,953 | 44,361 | |||||
Restricted cash | 13,922 | 13,922 | 14,154 | |||||
Vessels, net of accumulated depreciation | 683,998 | 683,998 | 342,591 | |||||
Total long-term assets | 1,020,438 | 1,020,438 | 766,106 | |||||
Current portion of long-term debt | 45,458 | 45,458 | 32,208 | |||||
Derivative financial instruments | 3,287 | 3,287 | 3,534 | |||||
Total current liabilities | 71,875 | 71,875 | 57,816 | |||||
Long-term debt | 446,011 | 446,011 | 300,440 | |||||
Derivative financial liabilities | 3,936 | 3,936 | 3,511 | |||||
Other long-term liabilities | 10,413 | 10,413 | 11,235 | |||||
Total long-term liabilities | 552,375 | 552,375 | 387,861 | |||||
Accumulated losses of joint ventures | (26,848) | (26,848) | $ (25,886) | |||||
Srv Joint Gas Limited And Srv Joint Gas Two Limited [Member] | ||||||||
Time charter revenues | 20,919 | 21,874 | 63,216 | 64,108 | ||||
Accrual historical boil-off claim (1) | (23,700) | 0 | (23,700) | 0 | ||||
Total revenues | (2,781) | 21,874 | 39,516 | 64,108 | ||||
Operating expenses | (3,466) | (4,760) | (12,671) | (12,961) | ||||
Depreciation and amortization | (5,077) | (4,905) | (15,219) | (14,723) | ||||
Operating income | (11,324) | 12,209 | 11,626 | 36,424 | ||||
Unrealized gain (loss) on derivative instruments | 3,604 | 8,277 | 7,026 | (18,055) | ||||
Other financial expense, net | (7,075) | (7,510) | (21,037) | (22,850) | ||||
Net income (loss) | $ (14,795) | 12,976 | $ (2,385) | (4,481) | ||||
Share of joint ventures owned | 50.00% | 50.00% | 50.00% | |||||
Share of joint ventures net income (loss) before eliminations | $ (7,398) | 6,488 | $ (1,193) | (2,241) | ||||
Eliminations | 77 | 77 | 231 | 231 | ||||
Equity in earnings (losses) of joint ventures | (7,321) | $ 6,565 | (962) | $ (2,010) | ||||
Cash and cash equivalents | 3,819 | 3,819 | $ 9,506 | |||||
Restricted cash | 8,503 | 8,503 | 8,458 | |||||
Other current assets | 2,727 | 2,727 | 4,492 | |||||
Total current assets | 15,049 | 15,049 | 22,456 | |||||
Restricted cash | 25,173 | 25,173 | 25,107 | |||||
Vessels, net of accumulated depreciation | 552,882 | 552,882 | 567,187 | |||||
Total long-term assets | 578,055 | 578,055 | 592,294 | |||||
Current portion of long-term debt | 24,620 | 24,620 | 23,503 | |||||
Amounts and loans due to owners and affiliates | 113 | 113 | 13,654 | |||||
Derivative financial instruments | 11,701 | 11,701 | 13,588 | |||||
Other current liabilities | 37,036 | 37,036 | 20,145 | |||||
Total current liabilities | 73,470 | 73,470 | 70,890 | |||||
Long-term debt | 435,615 | 435,615 | 453,957 | |||||
Loans due to owners and affiliates | 6,395 | 6,395 | 1,887 | |||||
Derivative financial liabilities | 74,394 | 74,394 | 79,533 | |||||
Other long-term liabilities | 40,061 | 40,061 | 42,929 | |||||
Total long-term liabilities | 556,465 | 556,465 | 578,306 | |||||
Net liabilities | (36,831) | (36,831) | (34,446) | |||||
Share of joint ventures net liabilities before eliminations | (18,416) | (18,416) | (17,223) | |||||
Eliminations | (8,432) | (8,432) | (8,663) | |||||
Accumulated losses of joint ventures | $ (26,848) | $ (26,848) | $ (25,886) |
Investments in joint ventures62
Investments in joint ventures (Details Textual) | Sep. 30, 2017 | Sep. 30, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | 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 | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Revenues | |||||
Time charter revenue | $ 35,856 | $ 23,345 | $ 105,957 | $ 67,799 | |
Operating expenses | |||||
Vessel operating expenses | (5,909) | (4,674) | (17,714) | (12,708) | |
Interest income from joint ventures | 98 | 192 | 341 | 697 | |
Interest expense and commitment fees to Höegh LNG | (7,739) | (6,283) | (23,227) | (19,043) | |
Financial (income) expense | |||||
Total | 2,508 | 13,425 | 25,353 | 16,445 | |
Hoegh LNG and Subsidiaries [Member] | |||||
Operating expenses | |||||
Vessel operating expenses | [1] | (5,348) | (3,856) | (15,891) | (10,899) |
Hours, travel expense and overhead and Board of Directors’ fees | [2] | (778) | (905) | (2,456) | (2,645) |
Interest income from joint ventures | [3] | 75 | 189 | 305 | 671 |
Interest expense and commitment fees to Höegh LNG | [4] | (1,232) | (1,288) | (3,438) | (3,791) |
Financial (income) expense | |||||
Total | 5,010 | 6,475 | 13,959 | 18,671 | |
Hoegh Gallant [Member] | |||||
Revenues | |||||
Time charter revenue | [5] | $ 12,293 | $ 12,335 | $ 35,439 | $ 35,335 |
[1] | Vessel operating expenses: Subsidiaries of Höegh LNG provides ship management of vessels, including crews and the provision of other services and supplies. | ||||
[2] | Board of Directors’ fees: Effective May 22, 2017, a total of 9,805 common units of the Partnership were awarded to non-employee directors as compensation of $189 for part of directors’ fees under the Höegh LNG Partners LP Long Term Incentive Plan which were recorded as administrative expense and as an issuance of common units. Effective June 3, 2016, a total of 10,650 common units of the Partnership were awarded to non-employee directors as compensation of $189 for part of directors’ fees under the Höegh LNG Partners LP Long Term Incentive Plan which were recorded as administrative expense and as an issuance of common units. Common units are recorded when issued. | ||||
[3] | Interest income from joint ventures: The Partnership and its joint venture partners have provided subordinated financing to the joint ventures as shareholder loans. Interest income for the Partnership’s shareholder loans to the joint ventures is recorded as interest income. | ||||
[4] | Interest expense and commitment fees to Höegh LNG and affiliates: Höegh LNG and its affiliates provided an $85 million revolving credit facility for general partnership purposes which incurs a commitment fee on the undrawn balance and interest expense on the drawn balance and a seller’s credit note to finance part of the Höegh Gallant acquisition which incurs interest expense. | ||||
[5] | Time charter revenue Höegh Gallant: A subsidiary of Höegh LNG, EgyptCo, leases the Höegh Gallant. |
Related party transactions (D64
Related party transactions (Details 1) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | ||
Related Party Transaction [Line Items] | |||
Equity: Total | $ 2,733 | $ 4,458 | |
Issuance of units for Board of Directors' fees | 189 | 189 | |
Other and contributions from owner | [1] | 469 | 426 |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Issuance of units for Board of Directors' fees | [2] | 189 | 189 |
Hoegh LNG and Subsidiaries [Member] | |||
Related Party Transaction [Line Items] | |||
Equity: Total | [3] | $ 2,075 | $ 3,843 |
[1] | Other and contribution from owner: Höegh LNG granted share-based incentives to certain key employees whose services are invoiced to the Partnership. Related expenses are recorded as administrative expenses and as a contribution from owner since the Partnership is not invoiced for this employee benefit. Effective June 3, 2016, the Partnership granted the Chief Executive Officer and Chief Financial Officer 21,500 phantom units in the Partnership. Related expenses are recorded as an administrative expense and as increase in equity. | ||
[2] | Board of Directors’ fees: Effective May 22, 2017, a total of 9,805 common units of the Partnership were awarded to non-employee directors as compensation of $189 for part of directors’ fees under the Höegh LNG Partners LP Long Term Incentive Plan which were recorded as administrative expense and as an issuance of common units. Effective June 3, 2016, a total of 10,650 common units of the Partnership were awarded to non-employee directors as compensation of $189 for part of directors’ fees under the Höegh LNG Partners LP Long Term Incentive Plan which were recorded as administrative expense and as an issuance of common units. Common units are recorded when issued. | ||
[3] | Cash contribution from Höegh LNG: As described under “Indemnifications” below, Höegh LNG made indemnification payments to the Partnership which were recorded as contributions to equity. |
Related party transactions (D65
Related party transactions (Details 2) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | $ 3,780 | $ 4,237 |
Amounts due to owners and affiliates | $ 799 | $ 1,374 |
Related party transactions (D66
Related party transactions (Details 3) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Revolving credit facility | $ 24,322 | $ 8,622 |
Seller’s credit note | 34,383 | 34,383 |
Revolving credit and seller’s credit due to owners and affiliates | $ 58,705 | $ 43,005 |
Related party transactions (D67
Related party transactions (Details Textual) - USD ($) $ in Thousands | Jan. 03, 2017 | May 22, 2017 | Dec. 31, 2016 | Jun. 03, 2016 | Oct. 01, 2015 | Aug. 31, 2014 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||||||||||||
Indemnification Under Technical Issues | $ 300 | |||||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 14,440 | 10,971 | $ 42,595 | $ 32,905 | $ 43,877 | |||||||||
Partners' Capital Account, Unit-based Compensation | 189 | 189 | ||||||||||||
Percentage of Interest Rate For Sellers Credit Note | 8.00% | |||||||||||||
Scenario, Forecast [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Indemnification Under Technical Issues | $ 0 | |||||||||||||
Director [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Partners' Capital Account, Unit-based Compensation | [1] | 189 | 189 | |||||||||||
Chief Executive Officer Chief Financial Officer [Member] | Phantom Units [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 21,500 | |||||||||||||
PGN FSRU Lampung [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Indemnification Under the Omnibus Agreement | 1,100 | 300 | 2,100 | $ 2,400 | ||||||||||
Revolving Credit Facility [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus a margin of 4.0% | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85,000 | |||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 1.40% | |||||||||||||
Line of Credit Facility, Expiration Date | Jan. 1, 2020 | |||||||||||||
Omnibus Agreement [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Environmental Indemnifications | $ 5,000 | 5,000 | ||||||||||||
Seller Credit Note [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Repayments of Debt | $ 12,600 | |||||||||||||
Hoegh LNG and Subsidiaries [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 20,600 | $ 19,200 | ||||||||||||
LP Long Term Incentive Plan [Member] | Director [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Partners' Capital Account, Units, Unit-based Compensation | 9,805 | 10,650 | ||||||||||||
Partners' Capital Account, Unit-based Compensation | $ 189 | $ 189 | ||||||||||||
Hoegh LNG [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Environmental Indemnifications, Description | No claim may be made unless the aggregate dollar amount of all claims exceeds $0.5 million, in which case Hegh LNG is liable for claims only to the extent such aggregate amount exceeds $0.5 million. | |||||||||||||
Percentage of Ownership Interest In Acquisition | 51.00% | |||||||||||||
Hoegh Grace Entities [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Percentage of Ownership Interest In Acquisition | 51.00% | |||||||||||||
Hoegh Gallant [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Indemnification Under Technical Issues | $ 500 | 900 | ||||||||||||
Indemnification Of Other Costs Relating To Commencement Of Services | $ 100 | |||||||||||||
Hoegh Gallant [Member] | Scenario, Forecast [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Indemnification Under Technical Issues | $ 0 | |||||||||||||
[1] | Board of Directors’ fees: Effective May 22, 2017, a total of 9,805 common units of the Partnership were awarded to non-employee directors as compensation of $189 for part of directors’ fees under the Höegh LNG Partners LP Long Term Incentive Plan which were recorded as administrative expense and as an issuance of common units. Effective June 3, 2016, a total of 10,650 common units of the Partnership were awarded to non-employee directors as compensation of $189 for part of directors’ fees under the Höegh LNG Partners LP Long Term Incentive Plan which were recorded as administrative expense and as an issuance of common units. Common units are recorded when issued. |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | $ 18,566 | $ 15,452 | $ 18,915 | $ 20,805 | $ 18,006 | $ 32,868 |
Restricted cash | 24,125 | 22,209 | ||||
Amounts due from affiliate | 3,780 | 4,237 | ||||
Derivative instruments | (7,223) | (7,045) | ||||
Advances (shareholder loans) to joint ventures | 3,198 | 7,218 | ||||
Current amounts due to owners and affiliates | (799) | (1,374) | ||||
Cash designated for acquisition | 0 | 91,768 | ||||
Other long-term receivables | 0 | 6,195 | ||||
Revolving credit and seller’s credit due to owners and affiliates | (58,705) | (43,005) | ||||
Lampung Facility [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long Term Debt | (151,965) | (164,851) | ||||
Gallant facility [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long Term Debt | (157,669) | (167,797) | ||||
Grace Facility [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long Term Debt | (181,835) | 0 | ||||
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 | 18,566 | 18,915 | ||||
Restricted cash | 24,125 | 22,209 | ||||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Amounts due from affiliate | 3,780 | 4,237 | ||||
Derivative instruments | (7,223) | (7,045) | ||||
Other [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash designated for acquisition | 0 | 91,768 | ||||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Advances (shareholder loans) to joint ventures | 3,616 | 7,355 | ||||
Current amounts due to owners and affiliates | (799) | (1,374) | ||||
Other long-term receivables | 0 | 6,195 | ||||
Revolving credit and seller’s credit due to owners and affiliates | (58,705) | (44,098) | ||||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | Lampung Facility [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long Term Debt | (167,798) | (183,585) | ||||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | Gallant facility [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long Term Debt | (158,696) | (168,889) | ||||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | Grace Facility [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long Term Debt | $ (182,051) | $ 0 |
Financial Instruments (Details
Financial Instruments (Details 1) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Amounts due from affiliate | $ 3,780 | $ 4,237 |
Advances to joint ventures | 3,198 | 7,218 |
Payment activity [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Trade receivable and long-term receivable | 7,637 | 8,283 |
Amounts due from affiliate | 3,780 | 4,237 |
Advances to joint ventures | $ 3,198 | $ 7,218 |
Financial Instruments (Detail70
Financial Instruments (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes, Loans and Financing Receivable, Net, Noncurrent | $ 0 | $ 6,195 |
Risk management and concentra71
Risk management and concentrations of risk (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($) | ||
Lampung [Member] | ||
Derivative [Line Items] | ||
Derivative, Interest rate index | LIBOR | |
Derivative, Notional amount | $ 159,912 | [1] |
Derivative Liability, Fair value carrying amount liability | $ (4,979) | [1] |
Derivative, Term | Sept 2,026 | |
Derivative, Fixed interest rate | 2.80% | [1],[2] |
Gallant [Member] | ||
Derivative [Line Items] | ||
Derivative, Interest rate index | LIBOR | |
Derivative, Notional amount | $ 126,750 | [1] |
Derivative Liability, Fair value carrying amount liability | $ (509) | [1] |
Derivative, Term | Sept 2,019 | |
Derivative, Fixed interest rate | 1.90% | [1],[2] |
Grace [Member] | ||
Derivative [Line Items] | ||
Derivative, Interest rate index | LIBOR | |
Derivative, Notional amount | $ 138,375 | [1] |
Derivative Liability, Fair value carrying amount liability | $ (1,735) | [1] |
Derivative, Term | March 2,020 | |
Derivative, Fixed interest rate | 2.30% | [1],[2] |
[1] | All interest rate swaps are U.S. dollar denominated and principal amount reduces quarterly. | |
[2] | Excludes the margins paid on the floating-rate debt. |
Risk management and concentra72
Risk management and concentrations of risk (Details 1) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Current liabilities: derivative instruments | $ (3,287) | $ (3,534) |
Long-term liabilities: derivative instruments | (3,936) | (3,511) |
Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Current liabilities: derivative instruments | (3,287) | (3,534) |
Long-term liabilities: derivative instruments | $ (3,936) | $ (3,511) |
Risk management and concentra73
Risk management and concentrations of risk (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Total gains (losses) on derivative instruments | $ 571 | $ 517 | $ 1,481 | $ 1,178 |
Interest rate swaps [Member] | ||||
Ineffective portion of cash flow hedge | (28) | 30 | (380) | 12 |
Amortization of amount excluded from hedge effectiveness | 813 | 701 | 2,502 | 1,807 |
Reclassification from accumulated other comprehensive income | (214) | (214) | (641) | (641) |
Unrealized gains (losses) [Member] | ||||
Total gains (losses) on derivative instruments | 571 | 517 | 1,481 | 1,178 |
Realized gains (losses) [Member] | ||||
Total gains (losses) on derivative instruments | $ 0 | $ 0 | $ 0 | $ 0 |
Risk management and concentra74
Risk management and concentrations of risk (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effective portion of unrealized loss on cash flow hedge, Before tax gains (losses) | $ 872 | $ 2,745 | $ 983 | $ (5,642) |
Other comprehensive income for period, Tax benefit (expense) | (84) | (104) | (259) | (250) |
Beginning Balance, Net of Tax | (5,736) | |||
Ending Balance, Net of Tax | (5,118) | (5,118) | ||
Interest Rate Swap [Member] | ||||
Beginning Balance, Before tax gains (losses) | (6,947) | (8,830) | ||
Effective portion of unrealized loss on cash flow hedge, Before tax gains (losses) | 342 | (6,283) | ||
Reclassification of amortization of cash flow hedge to earnings, Before tax gains (losses) | 641 | 641 | ||
Other comprehensive income for period, Before tax gains (losses) | 983 | (5,642) | ||
Ending Balance, Before tax gains (losses) | (5,964) | (14,472) | (5,964) | (14,472) |
Beginning Balance, Tax benefit (expense) | 1,211 | 1,589 | ||
Effective portion of unrealized loss on cash flow hedge, Tax benefit (expense) | 0 | 0 | ||
Reclassification of amortization of cash flow hedge to earnings, Tax benefit (expense) | (259) | (250) | ||
Other comprehensive income for period, Tax benefit (expense) | (259) | (250) | ||
Ending Balance, Tax benefit (expense) | 952 | 1,339 | 952 | 1,339 |
Beginning Balance, Net of Tax | (5,736) | (7,241) | ||
Effective portion of unrealized loss on cash flow hedge, Net of tax | 342 | (6,283) | ||
Reclassification of amortization of cash flow hedge to earnings, Net of tax | 382 | 391 | ||
Other comprehensive income for period, Net of tax | 724 | (5,892) | ||
Ending Balance, Net of Tax | (5,012) | (13,133) | (5,012) | (13,133) |
Beginning Balance, Accumulated OCI | (5,736) | (7,241) | ||
Effective portion of unrealized loss on cash flow hedge, Accumulated OCI | 342 | (6,283) | ||
Reclassification of amortization of cash flow hedge to earnings, Accumulated OCI | 382 | 391 | ||
Other comprehensive income for period, Accumulated OCI | 724 | (5,892) | ||
Ending Balance, Accumulated OCI | $ (5,012) | $ (13,133) | $ (5,012) | $ (13,133) |
Risk management and concentra75
Risk management and concentrations of risk (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
UNITED STATES | Hoegh Gallant [Member] | ||||
Concentration Risk, Percentage | 97.00% | 98.00% | 97.00% | 93.00% |
EGYPT | Hoegh Gallant [Member] | ||||
Concentration Risk, Percentage | 3.00% | 2.00% | 3.00% | 7.00% |
Geographic Concentration Risk [Member] | UNITED STATES | ||||
Concentration Risk, Percentage | 90.00% | |||
Geographic Concentration Risk [Member] | EGYPT | ||||
Concentration Risk, Percentage | 10.00% |
Commitments and contingencies (
Commitments and contingencies (Details Textual) - USD ($) $ in Thousands | Sep. 08, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Loss Contingency, Estimate of Possible Loss | $ 58,000 | |||||||
Indemnification Under Technical Issues | $ 300 | |||||||
Accrued Income Taxes, Noncurrent | $ 2,547 | $ 2,547 | $ 2,228 | |||||
Loss Contingency, Damages Sought | Depending on interpretations of the contractual provisions including exclusions to the performance standards and based upon currently available information, it is estimated that the Partnerships 50% share of the excess boil-off claim could range from zero or negligible amounts to approximately $29 million, or the gross amount claimed by the charterer. | |||||||
Loss Contingency, Accrual, Current | 23,700 | 23,700 | ||||||
Accrual historical boil-off claim | 0 | 0 | ||||||
Indonesian Corporate Income Tax [Member] | ||||||||
Accrued Income Taxes, Noncurrent | 2,500 | 2,500 | 2,200 | |||||
Scenario, Forecast [Member] | ||||||||
Indemnification Under Technical Issues | $ 0 | |||||||
PGN FSRU Lampung [Member] | ||||||||
Indemnification Under the Omnibus Agreement | $ 1,100 | 300 | $ 2,100 | 2,400 | ||||
Hoegh LNG [Member] | ||||||||
Accrual historical boil-off claim | $ 11,900 | |||||||
Hoegh Gallant [Member] | ||||||||
Indemnification Under Technical Issues | $ 500 | 900 | $ 1,000 | $ 1,400 | ||||
Indemnification Of Other Costs Relating To Commencement Of Services | $ 100 | |||||||
Hoegh Gallant [Member] | Scenario, Forecast [Member] | ||||||||
Indemnification Under Technical Issues | $ 0 |
Earnings per unit and cash di77
Earnings per unit and cash distributions (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Partners’ interest in net income | $ 2,508 | $ 13,425 | $ 25,353 | $ 16,445 | |
Less: Dividends paid or to be paid | [1] | (14,441) | (10,971) | (43,319) | (32,910) |
Under (over) distributed earnings | (11,933) | 2,454 | (17,966) | (16,465) | |
Common unit public [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Under (over) distributed earnings | $ (6,397) | $ 1,030 | $ (9,632) | $ (6,912) | |
Basic weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic | 17,649 | 11,051 | 17,644 | 11,044 | |
Diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Diluted | 17,661 | 11,054 | 17,654 | 11,048 | |
Basic and diluted earnings per unit: | |||||
Earnings Per Share, Basic and Diluted | [2] | $ 0.07 | $ 0.51 | $ 0.74 | $ 0.61 |
Common unit Höegh LNG [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Under (over) distributed earnings | $ (767) | $ 197 | $ (1,155) | $ (1,324) | |
Basic weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic | 2,116 | 2,116 | 2,116 | 2,116 | |
Diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Diluted | 2,116 | 2,116 | 2,116 | 2,116 | |
Basic and diluted earnings per unit: | |||||
Earnings Per Share, Basic and Diluted | [2],[3] | $ 0.09 | $ 0.51 | $ 0.80 | $ 0.63 |
Subordinated unit Höegh LNG [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Under (over) distributed earnings | $ (4,769) | $ 1,227 | $ (7,179) | $ (8,229) | |
Basic weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic | 13,156 | 13,156 | 13,156 | 13,156 | |
Diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Diluted | 13,156 | 13,156 | 13,156 | 13,156 | |
Basic and diluted earnings per unit: | |||||
Earnings Per Share, Basic and Diluted | [2],[3] | $ 0.09 | $ 0.51 | $ 0.80 | $ 0.63 |
[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 on the number of units outstanding at the period end. | ||||
[2] | Effective June 3, 2016, the Partnership granted 21,500 phantom units to the CEO/CFO of the Partnership. One-third of the phantom units vest as of December 31, 2017, 2018 and 2019, respectively. The phantom units impact the diluted weighted average units outstanding, however, the increase in weighted average number of units was not significant enough to change the earnings per unit. Therefore, the basic and diluted earnings per unit are the same. | ||||
[3] | Includes total amounts attributable to incentive distributions rights of $285,234 and $855,618 for the three and nine months ended September 30, 2017, respectively, of which $39,521 and $118,552 were attributed to common units owned by Höegh LNG and $245,713 and $737,066 were attributed to subordinated units owned by Höegh LNG. For the three and nine months ended September 30, 2016, includes total amounts attributable to incentive distributions rights of $113,227 and $339,634, respectively, of which $15,688 and $47,059 were attributed to common units owned by Höegh LNG and $97,538 and $292,575 were attributed to subordinated units owned by Höegh LNG. |
Earnings per unit and cash di78
Earnings per unit and cash distributions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 03, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Incentive Distribution Right Target Distribution Per Unit | $ 0.3375 | ||||
Incentive Distribution Right Target Distribution | $ 285,234 | $ 113,227 | $ 855,618 | $ 339,634 | |
Common Unit, Outstanding | 32,920,964 | 32,920,964 | |||
Common and Subordinated Units Outstanding | 39,521 | 39,521 | |||
Phantom Share Units (PSUs) [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 21,500 | ||||
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% | ||||
Common units public [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Incentive Distribution Right Target Distribution Per Unit | $ 0.3375 | ||||
Distribution Percentage To Holders Of Incentive Distribution Rights | 100.00% | ||||
Common Unit, Outstanding | 17,648,844 | 17,648,844 | |||
Common units public [Member] | Second Target Distribution [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Distribution Percentage To Holders Of Incentive Distribution Rights | 100.00% | ||||
Common units public [Member] | Third Target Distribution [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Incentive Distribution Right Target Distribution Per Unit | $ 0.3375 | ||||
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] | |||||
Incentive Distribution Right Target Distribution | $ 245,713 | 97,538 | $ 737,066 | 292,575 | |
Common Unit, Outstanding | 13,156,060 | 13,156,060 | |||
Common units Höegh LNG [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Incentive Distribution Right Target Distribution | $ 39,521 | $ 15,688 | $ 118,552 | $ 47,059 | |
Common Unit, Outstanding | 2,116,060 | 2,116,060 | |||
Common Units Public and Hoegh LNG [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Common Unit, Outstanding | 19,764,904 | 19,764,904 |
Subsequent events (Details Text
Subsequent events (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Oct. 06, 2017 | Oct. 05, 2017 | Nov. 16, 2017 | Nov. 14, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 14,440 | $ 10,971 | $ 42,595 | $ 32,905 | $ 43,877 | |||||
Seller Credit Note [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Repayments of Debt | $ 12,600 | |||||||||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 14,400 | |||||||||
Distribution Made To Limited Partner Quarterly Distributions Paid Per Unit | $ 0.43 | |||||||||
Subsequent Event [Member] | Series A Preferred Stock [Member] | Hoegh Grace [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Limited Partners Capital Account, Units Issued | 4,600,000 | |||||||||
Preferred Stock, Dividend Rate, Percentage | 8.75% | |||||||||
Proceeds from Issuance of Preferred Limited Partners Units | $ 111,400 | |||||||||
Subsequent Event [Member] | Seller Credit Note [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Repayments of Debt | $ 34,400 | |||||||||
Subsequent Event [Member] | Hoegh LNG Colombia Holding Ltd [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | |||||||||
Business Combination, Consideration Transferred | $ 85,900 | |||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Repayments of Lines of Credit | $ 24,300 |