Exhibit 15.1
Schedule I- Condensed Financial Information of Registrant
CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME
Year ended December 31, | ||||||||||||
(in thousands of U.S. dollars) | 2017 | 2016 | 2015 | |||||||||
Total revenue | $ | — | — | $ | — | |||||||
EXPENSES | ||||||||||||
Administrative expenses | (8,608 | ) | (6,903 | ) | (6,089 | ) | ||||||
Equity in earnings of subsidiaries | 66,521 | 36,730 | 26,118 | |||||||||
Equity in earnings (losses) of joint ventures | 5,139 | 16,622 | 17,123 | |||||||||
Interest income | 83 | — | 6,267 | |||||||||
Interest expense | (3,934 | ) | (5,072 | ) | (2,140 | ) | ||||||
Other items, net | (11 | ) | — | — | ||||||||
Net income | $ | 59,190 | 41,377 | $ | 41,279 | |||||||
Share of subsidiaries unrealized losses on cash flow hedges | 3,335 | 1,883 | 1,329 | |||||||||
Share of subsidiaries income tax benefit | (347 | ) | (378 | ) | (395 | ) | ||||||
Comprehensive income | $ | 62,178 | 42,882 | $ | 42,213 |
See accompanying notes to condensed financial statements.
As of December 31, | ||||||||
(in thousands of U.S. dollars) | 2017 | 2016 | ||||||
Cash | $ | 6,632 | $ | 11,822 | ||||
Promissory note from subsidiaries | 123,248 | 123,248 | ||||||
Prepaid expenses and other receivables | — | 93 | ||||||
Total current assets | 129,880 | 135,163 | ||||||
Cash designated for acquisition | — | 91,768 | ||||||
Investments in subsidiaries | 418,488 | 207,982 | ||||||
Total long-term assets | 418,488 | 299,750 | ||||||
Total assets | $ | 548,368 | $ | 434,913 | ||||
LIABILITIES AND PARTNER'S CAPITAL | ||||||||
Trade payables | $ | 301 | $ | 755 | ||||
Amounts due to owners and affiliates | 554 | 85 | ||||||
Loans and promissory notes due to owners and affiliates | 51,832 | 43,005 | ||||||
Accrued liabilities and other payables | 276 | 392 | ||||||
Total current liabilities | 52,963 | 44,237 | ||||||
Accumulated losses of joint ventures | 20,746 | 25,886 | ||||||
Total liabilities | 73,709 | 70,123 | ||||||
Total partners' capital | 474,659 | 364,790 | ||||||
Total liabilities and partners' capital | $ | 548,368 | $ | 434,913 |
See accompanying notes to condensed financial statements.
Schedule I- Condensed Financial Information of Registrant
Exhibit 15.1
Year ended December 31, | ||||||||||||
(in thousands of U.S. dollars) | 2017 | 2016 | 2015 | |||||||||
Net cash provided by operating activities | $ | 6,862 | (3,608 | ) | $ | 10,255 | ||||||
INVESTING ACTIVITIES | ||||||||||||
Expenditure for purchase ofHöegh Grace entities | (137,475 | ) | — | — | ||||||||
(Increase) decrease in restricted cash designated for purchase of theHöegh Grace entities | 91,768 | (91,768 | ) | — | ||||||||
Proceeds from investment in subsidiaries | 12,202 | 26,616 | 4,600 | |||||||||
Net cash provided by (used in) investing activities | (33,505 | ) | (65,152 | ) | 4,600 | |||||||
FINANCING ACTIVITIES | ||||||||||||
Net proceeds from issuance of Series A Preferred Units | 110,924 | — | — | |||||||||
Net proceeds from issuance of common units | — | 111,529 | — | |||||||||
Repayment of amounts due to owners and affiliates | (58,705 | ) | (12,617 | ) | — | |||||||
Proceeds from loans and promissory notes due to owners and affiliates | 25,730 | 8,622 | — | |||||||||
Proceeds from indemnifications received from Höegh LNG | 2,075 | 3,843 | 6,596 | |||||||||
Repayment of indemnifications received from Höegh LNG | (1,534 | ) | — | — | ||||||||
Cash distributions to limited partners | (57,037 | ) | (43,877 | ) | (35,524 | ) | ||||||
Net cash provided by (used in) financing activities | 21,453 | 67,500 | (28,928 | ) | ||||||||
Increase (decrease) in cash and cash equivalents | (5,190 | ) | (1,261 | ) | (14,073 | ) | ||||||
Cash and cash equivalents, beginning of period | 11,822 | 13,082 | 27,155 | |||||||||
Cash and cash equivalents, end of period | $ | 6,632 | 11,822 | $ | 13,082 |
See accompanying notes to condensed financial statements.
1. Basis of presentation
Höegh LNG Partners LP – the Parent company is a Marshall Islands limited partnership formed on April 28, 2014.
In the parent-only financial statements, the investment in subsidiaries and investment in joint ventures are stated at cost plus equity in undistributed earnings of subsidiaries and accumulated losses in joint ventures since the date of acquisition and the closing of the initial public offering of Höegh LNG Partners LP (the “Partnership”) on August 12, 2014. The Partnership’s share of net income of its unconsolidated subsidiaries and joint ventures is included in the condensed income statement using the equity method. The Parent company’s financial statements should be read in conjunction with the Partnership’s consolidated financial statements contained elsewhere in the Partnership’s Report on Form 20-F for the year ended December 31, 2017.
2. Dividends
A cash dividend of $17.7 million, $7.9 million and $8.4 million was paid to the Parent company from its consolidated subsidiaries for the years ended December 31, 2017, 2016 and 2015, respectively.