Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2018shares | |
Document Information [Line Items] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
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 | 19,953,257 |
Series A Preferred Units [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 5,388,026 |
CONDENSED INTERIM CONSOLIDATED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
REVENUES | ||||||
Time charter revenues | $ 35,510 | $ 35,024 | $ 70,395 | $ 70,101 | ||
Other revenue | 1,100 | 0 | 1,100 | [1] | 0 | |
Total revenues | 36,610 | [2] | 35,024 | 71,495 | [2] | 70,101 |
OPERATING EXPENSES | ||||||
Vessel operating expenses | (5,462) | (5,628) | (11,215) | (11,805) | ||
Construction contract expenses | 0 | (151) | 0 | (151) | ||
Administrative expenses | (2,101) | (2,465) | (4,888) | (5,222) | ||
Depreciation and amortization | (5,268) | (5,263) | (10,536) | (10,526) | ||
Total operating expenses | (12,831) | (13,507) | (26,639) | (27,704) | ||
Equity in earnings (losses) of joint ventures | 5,111 | 1,551 | 14,481 | 6,360 | ||
Operating income (loss) | 28,890 | 23,068 | 59,337 | 48,757 | ||
FINANCIAL INCOME (EXPENSE), NET | ||||||
Interest income | 174 | 113 | 361 | 243 | ||
Interest expense | (6,918) | (7,752) | (13,782) | (15,488) | ||
Gain (loss) on derivative instruments | 544 | 247 | 1,175 | 910 | ||
Other items, net | (880) | (1,422) | (1,486) | (2,224) | ||
Total financial income (expense), net | (7,080) | (8,814) | (13,732) | (16,559) | ||
Income (loss) before tax | 21,810 | 14,254 | 45,605 | 32,198 | ||
Income tax expense | (1,866) | (2,042) | (3,975) | (3,797) | ||
Net income (loss) | 19,944 | 12,212 | 41,630 | 28,401 | ||
Non-controlling interest in net income | 0 | 2,812 | 0 | 5,556 | ||
Preferred unitholders' interest in net income | 3,003 | 0 | 5,663 | 0 | ||
Limited partners' interest in net income (loss) | $ 16,941 | $ 9,400 | 35,967 | $ 22,845 | ||
Common unit public [Member] | ||||||
FINANCIAL INCOME (EXPENSE), NET | ||||||
Net income (loss) | $ 18,973 | |||||
Earnings per unit | ||||||
Earnings Per Share, Basic and Diluted | $ 0.50 | $ 0.28 | $ 1.07 | $ 0.68 | ||
Common unit Hoegh LNG [Member] | ||||||
FINANCIAL INCOME (EXPENSE), NET | ||||||
Net income (loss) | $ 2,341 | |||||
Earnings per unit | ||||||
Earnings Per Share, Basic and Diluted | 0.53 | 0.30 | $ 1.11 | 0.71 | ||
Subordinated unit [Member] | ||||||
FINANCIAL INCOME (EXPENSE), NET | ||||||
Net income (loss) | $ 14,653 | |||||
Earnings per unit | ||||||
Earnings Per Share, Basic and Diluted | $ 0.53 | $ 0.30 | $ 1.11 | $ 0.71 | ||
[1] | Eliminations reverse each of the income statement line items of the proportional consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. | |||||
[2] | Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of total revenues and is disclosed separately in the consolidated statement of cash flows. |
CONDENSED INTERIM CONSOLIDATED3
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income (loss) | $ 19,944 | $ 12,212 | $ 41,630 | $ 28,401 |
Unrealized gains (losses) on cash flow hedge | 745 | (1,029) | 4,572 | 111 |
Income tax benefit (expense) | (79) | (83) | (165) | (175) |
Other comprehensive income (loss) | 666 | (1,112) | 4,407 | (64) |
Comprehensive income (loss) | 20,610 | 11,100 | 46,037 | 28,337 |
Non-controlling interest in comprehensive income | 0 | 2,640 | 0 | 5,541 |
Preferred unitholders' interest in net income | 3,003 | 0 | 5,663 | 0 |
Limited partners' interest in comprehensive income (loss) | $ 17,607 | $ 8,460 | $ 40,374 | $ 22,796 |
CONDENSED INTERIM CONSOLIDATED4
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 20,980 | $ 22,679 |
Restricted cash | 5,958 | 6,962 |
Trade receivables | 4,425 | 7,563 |
Amounts due from affiliates | 4,235 | 4,286 |
Inventory | 649 | 668 |
Current portion of net investment in direct financing lease | 3,986 | 3,806 |
Derivative instruments | 973 | 0 |
Prepaid expenses and other receivables | 2,131 | 462 |
Total current assets | 43,337 | 46,426 |
Long-term assets | ||
Restricted cash | 13,404 | 13,640 |
Vessels, net of accumulated depreciation | 668,648 | 679,041 |
Other equipment | 561 | 604 |
Intangibles and goodwill | 22,570 | 24,370 |
Advances to joint ventures | 3,397 | 3,263 |
Net investment in direct financing lease | 280,976 | 282,820 |
Long-term deferred tax asset | 139 | 204 |
Derivative instruments | 1,217 | 228 |
Other long-term assets | 5,838 | 8,363 |
Total long-term assets | 996,750 | 1,012,533 |
Total assets | 1,040,087 | 1,058,959 |
Current liabilities | ||
Current portion of long-term debt | 45,458 | 45,458 |
Trade payables | 622 | 381 |
Amounts due to owners and affiliates | 559 | 1,417 |
Value added and withholding tax liability | 1,013 | 1,511 |
Derivative instruments | 331 | 2,015 |
Accrued liabilities and other payables | 9,037 | 13,042 |
Total current liabilities | 57,020 | 63,824 |
Long-term liabilities | ||
Accumulated losses of joint ventures | 6,265 | 20,746 |
Long-term debt | 412,479 | 434,845 |
Revolving credit facility due to owners and affiliates | 45,292 | 51,832 |
Derivative instruments | 0 | 2,102 |
Long-term tax liability | 786 | 0 |
Long-term deferred tax liability | 7,403 | 5,158 |
Other long-term liabilities | 2,673 | 5,793 |
Total long-term liabilities | 474,898 | 520,476 |
Total liabilities | 531,918 | 584,300 |
EQUITY | ||
Accumulated other comprehensive income (loss) | 1,659 | (2,748) |
Total partners' capital | 508,169 | 474,659 |
Total equity | 508,169 | 474,659 |
Total liabilities and equity | 1,040,087 | 1,058,959 |
8.75% Series A Preferred Units [Member] | ||
EQUITY | ||
Total partners' capital | 132,532 | 113,404 |
Total equity | 132,532 | 113,404 |
Common units public [Member] | ||
EQUITY | ||
Total partners' capital | 323,989 | 317,149 |
Total equity | 323,989 | 317,149 |
Common units Hoegh LNG [Member] | ||
EQUITY | ||
Total partners' capital | 6,945 | 6,513 |
Total equity | 6,945 | 6,513 |
Subordinated units [Member] | ||
EQUITY | ||
Total partners' capital | 43,044 | 40,341 |
Total equity | $ 43,044 | $ 40,341 |
CONDENSED INTERIM CONSOLIDATED5
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands | Total | 8.75% Series A Preferred Units [Member] | Common units public [Member] | Common units Hoegh LNG [Member] | Subordinated units [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2016 | $ 364,790 | $ 0 | $ 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 | 0 | 88,561 |
Net income | 59,190 | 2,480 | 24,217 | 3,055 | 19,030 | 0 | 10,408 |
Cash distributions to unitholders | (57,037) | 0 | (30,039) | (3,741) | (23,257) | 0 | 0 |
Cash distributions to non-controlling interest | (9,457) | 0 | 0 | 0 | 0 | 0 | (9,457) |
Cash contribution from Höegh LNG | 2,075 | 0 | 0 | 315 | 1,760 | 0 | 0 |
Cash distribution to Höegh LNG | (1,534) | 0 | 0 | (213) | (1,321) | 0 | 0 |
Other comprehensive income | 2,988 | 0 | 0 | 0 | 0 | 2,602 | 386 |
Net proceeds from issuance of Series A Preferred Units | 110,924 | 110,924 | 0 | 0 | 0 | 0 | 0 |
Acquisition of non-controlling interest of the Höegh Grace entities | (89,898) | 0 | 0 | 0 | 0 | 0 | (89,898) |
Difference between net book value of acquired non-controlling interest and consideration paid | 3,236 | 0 | 1,528 | 183 | 1,139 | 386 | 0 |
Issuance of units for Board of Directors' fees | 189 | 0 | 189 | 0 | 0 | 0 | 0 |
Other and contributions from owners | 632 | 0 | 163 | 65 | 404 | 0 | 0 |
Balance at Dec. 31, 2017 | 474,659 | 113,404 | 317,149 | 6,513 | 40,341 | (2,748) | 0 |
Net income | 41,630 | 5,663 | 18,973 | 2,341 | 14,653 | 0 | 0 |
Cash distributions to unitholders | (35,930) | (6,531) | (15,443) | (1,922) | (12,034) | 0 | 0 |
Other comprehensive income | 4,407 | 0 | 0 | 0 | 0 | 4,407 | 0 |
Net proceeds from issuance of common units | 3,084 | 0 | 3,084 | 0 | 0 | 0 | 0 |
Net proceeds from issuance of Series A Preferred Units | 19,996 | 19,996 | 0 | 0 | 0 | 0 | 0 |
Issuance of units for Board of Directors' fees | 160 | 0 | 160 | 0 | 0 | 0 | 0 |
Other and contributions from owners | 163 | 0 | 66 | 13 | 84 | 0 | 0 |
Balance at Jun. 30, 2018 | $ 508,169 | $ 132,532 | $ 323,989 | $ 6,945 | $ 43,044 | $ 1,659 | $ 0 |
CONDENSED INTERIM CONSOLIDATED6
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | ||||
Net income (loss) | $ 19,944 | $ 12,212 | $ 41,630 | $ 28,401 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 5,268 | 5,263 | 10,536 | 10,526 |
Equity in losses (earnings) of joint ventures | (5,111) | (1,551) | (14,481) | (6,360) |
Changes in accrued interest income on advances to joint ventures | (63) | 1,398 | (134) | 2,595 |
Amortization of deferred debt issuance cost and fair value of debt assumed | 176 | 210 | 363 | 423 |
Amortization in revenue for above market contract | 905 | 906 | 1,800 | 1,801 |
Changes in accrued interest expense | (982) | 93 | (522) | (96) |
Net currency exchange losses (gains) | 201 | 787 | 141 | 921 |
Unrealized loss (gain) on derivative instruments | (544) | (247) | (1,175) | (910) |
Non-cash revenue: tax paid directly by charterer | (214) | (432) | (412) | (432) |
Non-cash income tax expense: tax paid directly by charterer | 214 | 432 | 412 | 432 |
Deferred tax expense and provision for tax uncertainty | 1,426 | 924 | 2,931 | 1,978 |
Issuance of units for Board of Directors' fee | 160 | 189 | 160 | 189 |
Other adjustments | 114 | 151 | 162 | 308 |
Changes in working capital: | ||||
Trade receivables | 2,089 | 182 | 3,156 | (185) |
Inventory | 9 | 17 | 19 | 31 |
Prepaid expenses and other receivables | (492) | 690 | (1,104) | 1 |
Trade payables | (218) | (625) | 250 | (874) |
Amounts due to owners and affiliates | (2,222) | (2,437) | (807) | (1,313) |
Value added and withholding tax liability | 961 | 652 | 1,714 | 1,909 |
Accrued liabilities and other payables | (974) | (558) | (4,667) | (746) |
Net cash provided by (used in) operating activities | 20,647 | 18,256 | 39,972 | 38,599 |
INVESTING ACTIVITIES | ||||
Expenditure for purchase of Höegh Grace entities | 0 | (407) | 0 | (92,175) |
Cash acquired in the purchase of the Höegh Grace entities | 0 | 0 | 0 | 3,793 |
Decrease (increase) in restricted cash designated for purchase of the Höegh Grace entities | 0 | 0 | 0 | 91,768 |
Expenditure for vessel and other equipment | 0 | (8) | 0 | (14) |
Receipts from repayment of principal on direct financing lease | 943 | 861 | 1,863 | 1,704 |
Net cash provided by (used in) investing activities | 943 | 446 | 1,863 | 5,076 |
FINANCING ACTIVITIES | ||||
Proceeds from loans and promissory notes due to owners and affiliates | 0 | 10,100 | 5,400 | 11,700 |
Repayment of long-term debt | (11,364) | (11,364) | (22,729) | (22,729) |
Repayment of amounts due to owners and affiliates | (11,500) | 0 | (11,500) | 0 |
Repayment of customer loan for funding of value added liability on import | (1,194) | 0 | (2,459) | (1,258) |
Net proceeds from issuance of common units | 104 | 0 | 2,882 | 0 |
Cash distributions to limited partners and preferred unitholders | (17,737) | (14,438) | (35,930) | (28,155) |
Cash distributions to non-controlling interest | 0 | (3,920) | 0 | (3,920) |
Proceeds from indemnifications received from Hoegh LNG | 0 | 605 | 0 | 1,009 |
Net cash provided by (used in) financing activities | (30,010) | (19,017) | (44,720) | (43,353) |
Increase (decrease) in cash, cash equivalents and restricted cash | (8,420) | (315) | (2,885) | 322 |
Effect of exchange rate changes on cash and cash equivalents | (54) | 0 | (54) | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 48,816 | 41,761 | 43,281 | 41,124 |
Cash, cash equivalents and restricted cash, end of period | 40,342 | 41,446 | 40,342 | 41,446 |
Series A Preferred Stock [Member] | ||||
FINANCING ACTIVITIES | ||||
Net proceeds from issuance of 8.75% Series A Preferred Units | $ 11,681 | $ 0 | $ 19,616 | $ 0 |
CONDENSED INTERIM CONSOLIDATED7
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthtical) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Cash Cash Equivalents And Restricted Cash Beginning Of Period Abstract [Abstract] | ||||||
Cash and cash equivalents | $ 20,980 | $ 22,679 | $ 15,452 | $ 18,915 | ||
Restricted cash - current asset | 5,958 | 6,962 | 11,918 | 8,055 | ||
Restricted cash - non-current asset | 13,404 | 13,640 | 14,076 | 14,154 | ||
Cash, cash equivalents and restricted cash, beginning of period | 40,342 | $ 48,816 | 43,281 | 41,446 | $ 41,761 | $ 41,124 |
Cash Cash Equivalents And Restricted Cash End Of Period [Abstract] | ||||||
Cash and cash equivalents | 20,980 | 22,679 | 15,452 | |||
Restricted cash - current asset | 5,958 | 6,962 | 11,918 | |||
Restricted cash - non-current asset | 13,404 | 13,640 | 14,076 | |||
Cash, cash equivalents and restricted cash, end of period | $ 40,342 | $ 48,816 | $ 43,281 | $ 41,446 | $ 41,761 |
Description of business
Description of business | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | 1. Description of business 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 US GAAP purposes. Therefore, the sale of a business from Höegh LNG to the Partnership is a change of control. As a result, the Partnership accounts for acquisitions of businesses under the purchase method of accounting and not as transfers of entities under common control. On January 26, 2018, the Partnership entered into sales agreement with B. Riley FBR Inc. (the “Agent”). Under the terms of the sales agreement, the Partnership may offer and sell up to $120 million aggregate offering amount of common units and 8.75% Series A cumulative redeemable preferred units (“Series A preferred units”), from time to time, through the Agent, acting as agent for the Partnership (the “ATM Program”). Sales of such units may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings, including sales made directly on the New York Stock Exchange or through a market marker other than on an exchange. Refer to note 16. The Partnership’s 50% interests in SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., collectively, are referred to as the “joint ventures” and the remaining entities owned by the Partnership, as reflected in the table below are, collectively, referred to as the “subsidiaries” in these consolidated financial statements. The PGN FSRU Lampung Höegh Gallant Höegh Grace Neptune GDF Suez Cape Ann PGN FSRU Lampung Höegh Gallant Höegh Grace The Neptune GDF Suez Cape Ann Total to extend for up to two additional periods of five years each. The PGN FSRU Lampung Höegh Gallant Höegh Gallant Höegh Grace The following table lists the entities included in these consolidated financial statements and their purpose as of June 30, 2018. 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. (100% owned) (4) Cayman Islands Owns 100% of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S. Höegh LNG FSRU IV Ltd. (100% indirectly owned) (4) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (100% 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% 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% of the ownership interests were acquired on January 3, 2017, and the remaining 49% of the ownership interests were acquired on December 1, 2017. |
Significant accounting policies
Significant accounting policies | 6 Months Ended |
Jun. 30, 2018 | |
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 United States generally accepted accounting principles (“US GAAP”) for interim financial information. In the opinion of Management, all adjustments considered necessary for a fair presentation, which are of a normal recurring nature, have been included. All inter-company balances and transactions are eliminated. The footnotes are condensed and do not include all of the disclosures required for a complete set of financial statements. Therefore, the unaudited condensed interim consolidated financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2017, 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 expected residual returns and substantially all of the entity's activities either involve, or are conducted on behalf of, the Partnership. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of PT Hoegh LNG Lampung are included in the consolidated financial statements. Dividends may only be paid if the retained earnings are positive and a statutory reserve has been established equal to 20% of its paid up capital under Indonesian law. As of June 30, 2018, PT Hoegh LNG Lampung did not have adequate positive retained earnings to establish the required statutory reserves and therefore cannot make dividend payments under Indonesia law. Under the Lampung facility, there are limitations on cash dividends and loan distributions that can be made to the Partnership. Refer to note 9. 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% of the assets, liabilities, revenues and expenses of Höegh LNG FSRU III Ltd. are included in the consolidated financial statements. Under Cayman Islands law, dividends may only be paid out of profits or capital reserves if the entity is solvent after the distribution. Under the Gallant/Grace facility, there are limitations on dividends and loans distributions that can be made to the Partnership. Refer to note 9. The Partnership is a guarantor of the Gallant/Grace facility. 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 the Höegh Grace 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 $2.7 million and $2.6 million, respectively, and the Partnership’s accumulated losses or its share of net liabilities were $3.3 million and $10.7 million, respectively, as of June 30, 2018 and December 31, 2017. The Partnership’s carrying value for SRV Joint Gas Two Ltd. consists of a receivable for the advances of $0.7 million and $0.7 million, respectively, and the Partnership’s accumulated losses or its share of net liabilities were $3.0 million and $10.0 million, respectively, as of June 30, 2018 and December 31, 2017. The Partnership’s accumulated losses in the joint ventures are net liabilities due to the fair value adjustments for the interest rate swaps recorded as liabilities on the combined balance sheets of SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd and eliminations for consolidation to the balance sheet. The maximum exposure to loss is the carrying value of the receivables, which is subordinated to the joint ventures’ long-term bank debt, the investments in the joint ventures (accumulated losses), as the shares are pledged as security for the joint ventures’ long-term bank debt and Höegh LNG’s commitment under long-term bank loan agreements to fund its share of drydocking costs and remarketing efforts in the event of an early termination of the charters. Dividend distributions require a) agreement of the other joint venture owners; b) fulfilment of requirements of the long-term bank loans; c) and under Cayman Islands law may be paid out of profits or capital reserves subject to the joint venture being solvent after the distribution. Refer to note 8. 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, 2017 included in the Partnership’s Annual Report. c. Recent accounting pronouncements Recently adopted accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard, Revenue from Contracts with Customers Changes to accounting policies as a result of adopting ASC 606 are discussed below: Time charter revenues and related contract balances The Partnership’s consolidated revenue and the revenue of the joint ventures are derived from long-term time charter contracts for the provision of an FSRU including the management and operation of the FSRU at the direction of the charterer. Revenue recognition: The Partnership is required to evaluate whether two or more contracts should be combined and accounted for as a single contract, whether the contract promises to deliver more than one distinct good or service, or performance obligations, and/or a lease, determine the transaction price under the contract, allocate the transaction price to the lease and the performance obligations and recognize revenue as the performance obligation is satisfied. Performance obligations The Partnership determined that its time charter contracts contain a lease and a performance obligation for the provision of time charter services. The lease of the vessel, representing the use of the vessel without any associated performance obligations or warranties, is accounted for in accordance with the provisions of ASC 840; Leases The provision of time charter services, including guarantees for the level of performance provided by the time charter contracts, is considered a distinct service and is accounted for in accordance with the provision of ASC 606, Revenue from Contracts with Customers. Time charter services revenue can be recognized as the performance obligation is satisfied over the 24-hour interval to the performance standards specified under the time charter contract. If the performance standards are not met, off-hire, reduced hire, liquidated damages or other performance payments may result. Contract terms, determination of transaction price and allocation to performance obligations The Partnership’s time charter contracts for all FSRUs, except the Höegh Gallant ● Fixed element ● Operating expense reimbursement element ● Tax reimbursement element ● Performance warranties element The Höegh Gallant has a single day rate intended to cover all of the elements listed above. In addition, the time charter contract for the Höegh Gallant includes a provision for days of off-hire for scheduled maintenance. The joint ventures’ time charter contracts also provide for upfront payments for variable costs for certain vessel modifications, drydocking costs, other additions to equipment or spare parts. The hire rates for the PGN FSRU Lampung Höegh Gallant Höegh Grace The transaction price is estimated as the standalone selling price for the lease and the time charter services components of the fixed day rate element. Variable consideration per day for operating expense and tax reimbursements is estimated at the most likely amount to which the Partnership is expected to be entitled to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty related to the variable consideration is resolved. When there is significant uncertainty related to that amount of variable consideration to be received, that variable consideration is considered constrained. Typically, variable reimbursements and performance warranties are known at the end of each 24-hour interval, or as subsequently reassessed at the end of the reporting period. However, to the extent interpretations of contractual provisions are complex and/or disputed with the customer, this could give rise to constrained variable consideration. Constrained variable consideration is not estimated. Variable consideration is allocated entirely to one performance obligation when the variable day rate relates specifically to the efforts to satisfy the signal performance obligation. The default method of the relative standalone selling price method was used to allocate the remaining transaction price, principally the fixed element, between the lease and the time charter services. The total estimated transaction price for time charter services is considered variable consideration because it may be reduced by performance warranties. The Partnership has made a policy election to exclude from the measurement of the transaction price all taxes assessed by a government entity on revenues, and collected on behalf of that government entity from customers, such as sales or value added taxes. Lease revenue recognition Leases are classified based upon defined criteria either as direct financing leases or operating leases. A lease that transfers substantially all of the benefits and risks of the FSRU to the charterer is accounted for as a financing lease by the lessor. All other leases that do not meet the criteria are classified as operating leases. The lease component of time charters that are accounted for as operating leases is recognized on a straight line basis over the term of the charter. The Höegh Gallant’s Höegh Grace's The lease component of time charters that are accounted for as direct financing leases is recognized over the lease term using the effective interest rate method and is included in time charter revenues. Origination costs related to the time charter are a component of the net investment in direct financing lease and amortized over the lease term using the effective interest method. Direct financing leases are reflected on the consolidated balance sheets as net investments in direct financing leases. The PGN FSRU Lampung Time charter services revenue recognition Variable consideration for the time charter services performance obligation, including amounts allocated to time charter services, estimated reimbursements for vessel operating expenses and estimated reimbursements of certain types of costs and taxes, are recognized as revenues as the performance obligation for the 24-hour interval is fulfilled, subject to adjustment for off-hire and performance warranties. Constrained variable consideration is recognized as revenue on a cumulative catch-up basis when the significant uncertainty related to that amount of variable consideration to be received is resolved. Estimates for variable consideration, including constrained variable consideration, are reassessed at the end of each period. Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes directly related to the provision of the time charter services are recorded as a component of time charter service revenues. The amount of non-cash revenue is disclosed separately in the consolidated statement of cash flows. Joint venture FSRUs lease and time charter services revenue recognition Neptune GDF Suez Cape Ann’s The accounting policy for time charter services for the joint ventures is the same as described above. Significant judgments in revenue recognition The Partnership does not provide stand-alone bareboat leases or time charter services for FSRUs. As a result, observable stand-alone transaction prices for the performance obligations are not available. The estimation of the transaction price for the lease and the time charter service performance obligation is complex, subject to a number of input factors, such as market conditions when the contract is entered , internal return objectives and pricing policies, and requires substantial judgment. Significant changes in the transaction price between the two performance obligations could impact conclusions on the accounting for leases as financing or operating leases. In addition, variable consideration is estimated at the most likely amount that the Partnership expects to be entitled to. Variable consideration is reassessed at the end of the reporting period taking into account performance warranties. The time charter contracts include provisions for performance guarantees that can result in off-hire, reduced hire, liquidated damages or other payments for performance warranties. Measurement of some of the performance warranties can be complex and require properly calibrated equipment on the vessel, complex conversions and computations based on substantial judgment in the interpretation of the contractual provisions. Conclusions on compliance with performance warranties impacts the amount of variable consideration recognized for time charter services. Contract assets: Revenue recognized in excess of the monthly invoiced amounts, or accrued revenue, is recorded as contract assets on the consolidated balance sheet. The contract assets are reported in the consolidated balance sheet as a component of prepaid expenses and other receivables. Contract liabilities: Advance payments in excess of revenue recognized, or prepayments, and deferred revenue is recorded as contract liabilities on the consolidated balance sheet. Contract assets and liabilities are reported in a net position for each customer contract or combined contracts at the end of each reporting period. Contract liabilities are classified as current or non-current based on the expected timing of recognition of the revenue. Current and non-current contract liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables and other long-term liabilities, respectively. Refund liabilities: Amounts invoiced or paid by the customer that are expected to be refunded to the customer are recorded as refund liabilities on the consolidated balance sheet. Refund liabilities may include invoiced amounts for estimated reimbursable operating expenses or other costs and taxes that exceeded the actual costs incurred, or off-hire, reduced hire, liquidated damages, or other payments for performance warranties. Refund liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables. Remaining performance obligations Remaining performance obligations represent the transaction price of contracts with customers under the scope of ASC 606 for which work has not been performed excluding unexercised contract options to extend the term. The Partnership qualifies for and has elected to apply the exemption to disclose the aggregate amount of remaining transaction price allocated to unsatisfied performance obligations at the end of the reporting period as consideration for time charter services is variable and allocated entirely to wholly satisfied performance obligations. As described in note 1, the Partnership’s FSRUs operate under long-term time charter contracts which terminate between April 2020 for the Höegh Gallant PGN FSRU Lampung Statement of cash flows Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued revised guidance for Statement of Cash Flows: Restricted Cash As of June 30, 2017 Three months ended Balance Prior to Adjustments As (in thousands of U.S. dollars) Cash Flow Line Items Adoption Increase/(Decrease) Adjusted OPERATING ACTIVITIES Restricted cash $ (3,078 ) 3,078 $ — INVESTING ACTIVITIES Cash acquired in the purchase of the Höegh Grace — — — FINANCING ACTIVITIES Restricted cash 78 (78 ) — Increase (decrease) in cash, cash equivalents and restricted cash (3,315 ) 3,000 (315 ) Cash, cash equivalents and restricted cash, beginning of period 18,767 22,994 41,761 Cash, cash equivalents and restricted cash, end of period $ 15,452 25,994 $ 41,446 As of June 30, 2017 Six months ended Balance Prior to Adjustments As (in thousands of U.S. dollars) Cash Flow Line Items Adoption Increase/(Decrease) Adjusted OPERATING ACTIVITIES Restricted cash $ (3,844 ) 3,844 $ — INVESTING ACTIVITIES Cash acquired in the purchase of the Höegh Grace 3,774 19 3,793 FINANCING ACTIVITIES Restricted cash 78 (78 ) — Increase (decrease) in cash, cash equivalents and restricted cash (3,463 ) 3,785 322 Cash, cash equivalents and restricted cash, beginning of period 18,915 22,209 41,124 Cash, cash equivalents and restricted cash, end of period $ 15,452 25,994 $ 41,446 Amounts included in restricted cash represent balances deposited with a bank as required under debt facilities to settle withholding and other tax liabilities and other current obligations of the entity, principal and interest payments as required by the debt facilities. Restricted cash is classified as long-term when the settlement is more than 12 months from the balance sheet date. Recently issued accounting pronouncements Refer to note 2 of the audited financial statements for the year ended December 31, 2017 included in the Partnership’s Annual Report for recently issued accounting pronouncements expected to impact the Partnership. |
Formation transactions, Initial
Formation transactions, Initial Public Offering and related party agreements | 6 Months Ended |
Jun. 30, 2018 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital Notes Disclosure [Text Block] | 3. Formation transactions, Initial Public Offering and related party agreements During August 2014, the following transactions in connection with the transfer of equity interests, shareholder loans and promissory notes and accrued interest to the Partnership and the IPO occurred: Capital contribution Höegh LNG contributed the following to the Partnership: (i) Its interests in Hoegh LNG Lampung Pte. Ltd., PT Hoegh LNG Lampung, SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd.; (ii) Its shareholder loans made by Höegh LNG to each of SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., in part to finance the operations of such joint ventures; (iii) Its receivables for the $40 million promissory note due to Höegh LNG as well as accrued interest on such note and two other promissory notes relating to Hoegh LNG Lampung Pte. Ltd.; These transactions have been 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 common units and 13,156,060 subordinated units and 100% of incentive distribution rights (“IDRs”), which will entitle Höegh LNG to increasing percentages of the cash the Partnership distributes in excess of $0.388125 per unit per quarter. (ii) The Partnership issued to Höegh LNG GP LLC, a wholly owned subsidiary of Höegh LNG, a non-economic general partner interest in the Partnership. Initial Public Offering (i) The Partnership issued and sold through the underwriters to the public 11,040,000 common units (including 1,440,000 common units exercised pursuant to the underwriters’ option to purchase additional common units), representing approximately 42% limited partnership interest in the Partnership. The common units were sold for $20.00 per unit resulting in gross proceeds of $220.8 million. The net proceeds of the offering were approximately $203.5 million. Net proceeds is after deduction of underwriters’ discounts, structuring fees and reimbursements and the incremental direct costs attributable to the IPO that were deferred and charged against the proceeds of the offering. (ii) The Partnership applied the net proceeds of the offering as follows: (i) $140 million to make a loan to Höegh LNG in exchange for a note bearing interest at a rate of 5.88% per annum, (ii) $20 million for general partnership purposes and (iii) the remainder of approximately $43.5 million to make a cash distribution to Höegh LNG. At the completion of the IPO, Höegh LNG owned 2,116,060 common units and 13,156,060 subordinated units, representing an approximate 58% limited partnership interest in the Partnership. Related Party Agreements In connection with the IPO the Partnership entered into several agreements including: (i) An $85 million revolving credit facility with Höegh LNG, which was undrawn at the closing of the IPO; (ii) An omnibus agreement with Höegh LNG, the general partner, and Höegh LNG Partners Operating LLC 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. Subsequent to the IPO, the Partnership has acquired vessel owning entities. Existing agreements remain in place following the acquisition for the time charter of the Höegh Gallant ● Hoegh LNG Cyprus Limited acting through its Egyptian Branch has a Lease and Maintenance Agreement (the “time charter”) with EgyptCo for the lease and maintenance of the Höegh Gallant ● Hoegh LNG Cyprus Limited acting through its Egyptian Branch is party to a ship management agreement with Höegh LNG Management pursuant to which Höegh LNG Management provides the technical management of the Höegh Gallant ● Hoegh LNG Cyprus Limited acting through its Egyptian Branch is party to a management agreement with Höegh Norway, pursuant to which Höegh Norway provides administrative, commercial and technical management services, each as instructed from time to time by Hoegh LNG Cyprus Limited. Existing agreements remain in place for the time charter of the Höegh Grace ● a ship management agreement with Höegh LNG Management pursuant to which Höegh LNG Management provides technical and maritime management services; ● a manning agreement with Höegh Fleet Services Philippines Inc. to recruit and engage crew for the vessel; ● a technical services agreement with Höegh Norway to provide technical services for the vessel; ● a management consulting agreement with Höegh Norway to provide support related to certain management activities; ● a crew recruitment consulting services agreement with Höegh Maritime Management to provide professional consulting services in connection with recruitment of crew and other employees; ● an agreement for provision of professional payment services with Höegh Maritime Management to provide services in connection with the payment of monthly salaries to the crew and employees working on the vessel; and ● a spare parts procurement and insurance services agreement with Höegh LNG Management to arrange for the supply of spare parts and the insurance coverage for the vessel. |
Segment information
Segment information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 4. Segment information There are two operating segments. The segment profit measure is Segment EBITDA, which is defined as earnings before interest, taxes, depreciation, amortization and other financial items (gains and losses on derivative instruments and other items, net) 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 million revolving credit facility are included in “Other.” For the three and six months ended June 30, 2018 and 2017, Majority held FSRUs includes the direct financing lease related to the PGN FSRU Lampung Höegh Gallant Höegh Grace For the three and six months ended June 30, 2018 and 2017, Joint venture FSRUs include two 50% owned FSRUs, the 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% of the Joint venture FSRUs’ revenues, expenses and assets are reflected in the segment note. Management monitors the results of operations of joint ventures under the proportional consolidation method and not the equity method of accounting. On January 1, 2017, the Partnership began consolidating its acquired 51% interest in Höegh LNG Colombia Holding Ltd., the owner of the entities that own and operate the FSRU Höegh Grace Höegh Grace Höegh Grace Höegh Grace Höegh Grace Höegh Grace Höegh Grace In time charters, the charterer, not the Partnership, controls the choice of locations or routes the FSRUs serve. Accordingly, the presentation of information by geographical region is not meaningful. The following tables include the results for the segments for the three and six months ended June 30, 2018 and 2017. Three months ended June 30, 2018 (in thousands of U.S. dollars) Majority Joint venture Other Total Elimin- Consolidated Time charter revenues $ 35,510 10,576 — 46,086 (10,576 ) (1) $ 35,510 Other revenue 1,100 (3) — — 1,100 (1) 1,100 Total revenues 36,610 10,576 — 47,186 36,610 Operating expenses (6,383 ) (2,709 ) (1,180 ) (10,272 ) 2,709 (1) (7,563 ) Equity in earnings (losses) of joint ventures — — — — 5,111 (1) 5,111 Segment EBITDA 30,227 7,867 (1,180 ) 36,914 Depreciation and amortization (5,268 ) (2,399 ) — (7,667 ) 2,399 (1) (5,268 ) Operating income (loss) 24,959 5,468 (1,180 ) 29,247 28,890 Gain (loss) on derivative instruments 544 2,967 — 3,511 (2,967 ) (1) 544 Other financial income (expense), net (6,839 ) (3,324 ) (785 ) (10,948 ) 3,324 (1) (7,624 ) Income (loss) before tax 18,664 5,111 (1,965 ) 21,810 — 21,810 Income tax benefit (expense) (1,845 ) — (21 ) (1,866 ) — (1,866 ) Net income (loss) $ 16,819 5,111 (1,986 ) 19,944 — $ 19,944 Preferred unitholders’ interest in net income — — — — 3,003 (2) 3,003 Limited partners' interest in net income (loss) $ 16,819 5,111 (1,986 ) 19,944 (3,003 ) (2) $ 16,941 (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) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. (3) Other revenue consists of insurance proceeds received, subsequent to June 30, 2018, for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs, subject to repayment to the extent recovered from insurance proceeds. The amount is expected to be refunded to Höegh LNG during the third quarter of 2018. Refer to notes 5 and 14. Three months ended June 30, 2017 (in thousands of U.S. dollars) Majority Joint venture Other Total Elimin- Consolidated Time charter revenues $ 35,024 10,225 — 45,249 (10,225 ) (1) $ 35,024 Total revenues 35,024 10,225 — 45,249 35,024 Operating expenses (6,693 ) (1,984 ) (1,400 ) (10,077 ) 1,984 (1) (8,093 ) Construction contract expenses (151 ) — — (151 ) (151 ) Equity in earnings (losses) of joint ventures — — — — 1,551 (1) 1,551 Less: Non-controlling interest in Segment EBITDA (5,423 ) — — (5,423 ) 5,423 (2) — Segment EBITDA 22,757 8,241 (1,400 ) 29,598 Add: Non-controlling interest in Segment EBITDA 5,423 — — 5,423 (5,423 ) (2) — Depreciation and amortization (5,263 ) (2,476 ) — (7,739 ) 2,476 (1) (5,263 ) Operating income (loss) 22,917 5,765 (1,400 ) 27,282 23,068 Gain (loss) on derivative instruments 247 (785 ) — (538 ) 785 (1) 247 Other financial income (expense), net (8,028 ) (3,429 ) (1,033 ) (12,490 ) 3,429 (1) (9,061 ) Income (loss) before tax 15,136 1,551 (2,433 ) 14,254 — 14,254 Income tax expense (2,042 ) — — (2,042 ) — (2,042 ) Net income (loss) $ 13,094 1,551 (2,433 ) 12,212 — $ 12,212 Non-controlling interest in net income 2,812 — — 2,812 2,812 Partners' interest in net income (loss) $ 10,282 1,551 (2,433 ) 9,400 — $ 9,400 (1) Eliminations reverse each of the income statement line items of the proportional consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. (2) 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. Six months ended June 30, 2018 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 $ 70,395 21,572 — 91,967 (21,572 ) (1) $ 70,395 Other revenue 1,100 (3) — — 1,100 1,100 Total revenues 71,495 21,572 — 93,067 71,495 Operating expenses (12,917 ) (5,182 ) (3,186 ) (21,285 ) 5,182 (1) (16,103 ) Construction contract expenses — — — — — Equity in earnings (losses) of joint ventures — — — — 14,481 (1) 14,481 Segment EBITDA 58,578 16,390 (3,186 ) 71,782 Depreciation and amortization (10,536 ) (4,800 ) — (15,336 ) 4,800 (1) (10,536 ) Operating income (loss) 48,042 11,590 (3,186 ) 56,446 59,337 Gain (loss) on derivative instruments 1,175 9,482 — 10,657 (9,482 ) (1) 1,175 Other financial income (expense), net (13,409 ) (6,591 ) (1,498 ) (21,498 ) 6,591 (1) (14,907 ) Income (loss) before tax 35,808 14,481 (4,684 ) 45,605 — 45,605 Income tax expense (3,954 ) — (21 ) (3,975 ) — (3,975 ) Net income (loss) $ 31,854 14,481 (4,705 ) 41,630 — $ 41,630 Preferred unitholders’ interest in net income — — — 5,663 (2) 5,663 Limited partners' interest in net income (loss) $ 31,854 14,481 (4,705 ) 41,630 (5,663 ) (2) $ 35,967 (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) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. (3) Other revenue consists of insurance proceeds received, subsequent to June 30, 2018, for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs, subject to repayment to the extent recovered from insurance proceeds. The amount is expected to be refunded to Höegh LNG during the third quarter of 2018. Refer to notes 5 and 14. As of June 30, 2018 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 $ 668,648 261,259 — 929,907 (261,259 ) (1) $ 668,648 Net investment in direct financing lease 284,962 — — 284,962 — 284,962 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,397 3,397 — 3,397 Total assets 1,025,047 284,876 15,040 1,324,963 (284,876 ) (1) 1,040,087 Accumulated losses of joint ventures — — 50 50 (6,315 ) (1) (6,265 ) Expenditures for vessels & equipment &prepayments 100 530 — 630 (530 ) (2) 100 Expenditures for drydocking — 318 — 318 (318 ) (2) — Principal repayment direct financing lease 1,863 — — 1,863 — 1,863 Amortization of above market contract $ 1,800 — — 1,800 — $ 1,800 (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. Six months ended June 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 $ 70,101 21,149 — 91,250 (21,149 ) (1) $ 70,101 Total revenues 70,101 21,149 — 91,250 70,101 Operating expenses (13,955 ) (4,603 ) (3,072 ) (21,630 ) 4,603 (1) (17,027 ) Construction contract expenses (151 ) — — (151 ) (151 ) Equity in earnings (losses) of joint ventures — — — — 6,360 (1) 6,360 Less: Non-controlling interest in Segment EBITDA (10,417 ) — — (10,417 ) 10,417 (2) — Segment EBITDA 45,578 16,546 (3,072 ) 59,052 Add: Non-controlling interest in Segment EBITDA 10,417 — — 10,417 (10,417 ) (2) — Depreciation and amortization (10,526 ) (4,916 ) — (15,442 ) 4,916 (1) (10,526 ) Operating income (loss) 45,469 11,630 (3,072 ) 54,027 48,757 Gain (loss) on derivative instruments 910 1,711 — 2,621 (1,711 ) (1) 910 Other financial income (expense), net (15,483 ) (6,981 ) (1,986 ) (24,450 ) 6,981 (1) (17,469 ) Income (loss) before tax 30,896 6,360 (5,058 ) 32,198 — 32,198 Income tax expense (3,797 ) — — (3,797 ) — (3,797 ) Net income (loss) $ 27,099 6,360 (5,058 ) 28,401 — $ 28,401 Non-controlling interest in net income 5,556 — — 5,556 5,556 Partners’ interest in net income (loss) $ 21,543 6,360 (5,058 ) 22,845 — $ 22,845 (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 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 December 31, 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 $ 679,041 265,642 — 944,683 (265,642 ) (1) $ 679,041 Net investment in direct financing lease 286,626 — — 286,626 — 286,626 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,263 3,263 — 3,263 Total assets 1,041,517 287,562 17,442 1,346,521 (287,562 ) (1) 1,058,959 Accumulated losses of joint ventures — — 50 50 (20,796 ) (1) (20,746 ) Expenditures for vessels & equipment 287 525 — 811 (524 ) (2) 287 Expenditures for drydocking — — — — — (2) — Principal repayment direct financing lease 3,485 — — 3,485 — 3,485 Amortization of above market contract 3,631 — — 3,631 — 3,631 Non-controlling interest amortization of above market contract $ (553 ) — — (553 ) — $ — (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 |
Time charter revenues and relat
Time charter revenues and related contract balances | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 5. Time charter revenues and related contract balances The Partnership presents its revenue by segment, disaggregated by revenue recognized in accordance with accounting standards on leasing and on revenue from contracts with customers for time charter services. In addition, material elements where the nature, amount, timing and uncertainty of revenue and cash flows differ from the monthly invoicing under time charter contracts are separately presented. Revenue recognized for the Majority held FSRUs includes the amortization of above market contract intangibles. Revenue recognized for Joint venture FSRUs include the amortization of deferred revenues related to the charterer's reimbursements for certain vessel modifications and drydocking costs. As a result, the timing of cash flows differs from monthly time charter invoicing. The following tables summarize the disaggregated revenue of the Partnership by segment for the three and six months ended June 30, 2018: Three months ended June 30, 2018 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) reporting Lease revenues, excluding amortization $ 22,467 6,405 — 28,872 (6,405 ) $ 22,467 Time charter service revenues, excluding amortization 13,948 3,598 — 17,546 (3,598 ) 13,948 Amortization of above market contract intangibles (905 ) — — (905 ) (905 ) Amortization of deferred revenue for modifications & drydock — 573 — 573 (573 ) — Other revenue (2) 1,100 — — 1,100 — 1,100 Total revenues (3) $ 36,610 10,576 — 47,186 (10,576 ) $ 36,610 Six months ended June 30, 2018 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) reporting Lease revenues, excluding amortization $ 44,146 12,739 — 56,885 (12,739 ) $ 44,146 Time charter service revenues, excluding amortization 28,049 7,657 — 35,706 (7,657 ) 28,049 Amortization of above market contract intangibles (1,800 ) — — (1,800 ) (1,800 ) Amortization of deferred revenue for modifications & drydock — 1,176 — 1,176 (1,176 ) — Other revenue (2) 1,100 — — 1,100 — 1,100 Total revenues (3) $ 71,495 21,572 — 93,067 (21,572 ) $ 71,495 (1) Eliminations reverse the proportional amounts of revenue for Joint venture FSRUs to reflect the consolidated revenues included in the consolidated income statement. The Partnership's share of the Joint venture FSRUs revenues is included in Equity in earnings (loss) of joint ventures on the consolidated income statement. (2) Other revenue consists of insurance proceeds received, subsequent to June 30, 2018, for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs, subject to repayment to the extent recovered from insurance proceeds. The amount is expected to be refunded to Höegh LNG during the third quarter of 2018. Refer to notes 4 and 14. (3) Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of total revenues and is disclosed separately in the consolidated statement of cash flows. The Partnership’s risk and exposure related to uncertainty of revenues or cash flows related to its long-term time charter contracts primarily relate to the credit risk associated with the individual charterers. Payments are due under time charter contracts regardless of the demand for the charterers’ gas output or the utilization of the FSRU. For the three and six months ended June 30, 2017, the Partnership did not present disaggregated time charter revenues. Refer to note 4 for the combined time charter revenues by segment for the three and six months ended June 30, 2017. The consolidated trade receivables, contract assets, contract liabilities and refund liabilities included in the table below, exclude the balances for the Joint venture FSRUs. The Partnership’s share of net assets in the Joint venture FSRUs are recorded in the consolidated balance sheet using the equity method on the line accumulated losses in joint ventures. The following table summarizes the allocation of consolidated receivables between lease and service components: As of June 30, January 1, (in thousands of U.S. dollars) 2018 2018 Trade receivable for lease $ 5,408 $ 5,572 Trade receivable for time charter services 3,252 6,277 Total trade receivable and amounts due from affiliates $ 8,660 $ 11,849 There were no impairment losses for lease or service receivables or contract assets for the three or six months ended June 30, 2018. There were no impairment losses for trade receivables for the three or six months ended June 30, 2017 or for the twelve months ended December 31, 2017. The following table summarizes the consolidated contract assets, contract liabilities and refund liabilities to customers: Lease related Services related Contract Contract Contract Refund liability (in thousands of U.S. dollars) asset liability asset to charters Balance January 1, 2018 $ 8,326 (8,326 ) 303 $ (6,187 ) Additions — — 119 (496 ) Reduction for receivables recorded (397 ) — (303 ) — Reduction for revenue recognized — 397 — — Reduction for revenue recognized from previous years — — — 775 Repayments of refund liabilities to charterer — — — 2,990 Balance June 30, 2018 7,929 (7,929 ) 119 (2,918 ) Netting of contract asset and contract liability (7,929 ) 7,929 — — Balance reflected in balance sheet June 30, 2018 $ — — 119 $ (2,918 ) Contract assets are reported in the consolidated balance sheet as a component of prepaid expenses and other receivables. Refund liabilities are reporting in the consolidated balance sheet as a component of accrued liabilities and other payables. Under one of the time charter contracts, the contract provided for additional payments, including a finance component, over the initial term depending upon the actual commencement date of the contract within a defined window of potential commencement dates. The net present value of the additional payments was recorded as a leased related contract asset and a contract liability. The finance component of $71 and $143 for the three and six months ended June 30, 2018, respectively, is included as a component of interest income in the consolidated statement of income. The contract asset and contract liability are netted per customer. The service related contract asset reflected in the balance sheet relates to accrued revenue for reimbursable costs for other charterers. Refund liabilities to charterers include invoiced revenue to be refunded to charterers for estimated reimbursable costs that exceeded the actual cost incurred and for non-compliance with performance warranties in the time charter contracts that result in reduction of hire, liquidated damages or other performance related payments. During the six months ended June 30, 2018, the major changes related to recognition of previously constrained revenue related to prior periods' performance obligations of $775 and repayment of $2,990 for the conclusion of an audit at the end of 2017 for the amount the charterer would reimburse for certain 2014 and 2015 costs. |
Financial income (expense)
Financial income (expense) | 6 Months Ended |
Jun. 30, 2018 | |
Nonoperating Income (Expense) [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | 6. Financial income (expense) The components of financial income (expense) are as follows: Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2018 2017 2018 2017 Interest income $ 174 113 361 $ 243 Interest expense: Interest expense (6,742 ) (7,301 ) (13,382 ) (14,561 ) Commitment fees — (241 ) (37 ) (504 ) Amortization of debt issuance cost and fair value of debt assumed (176 ) (210 ) (363 ) (423 ) Total interest expense (6,918 ) (7,752 ) (13,782 ) (15,488 ) Gain (loss) on derivative instruments 544 247 1,175 910 Other items, net: Foreign exchange gain (loss) (198 ) (811 ) (140 ) (944 ) Bank charges, fees and other (37 ) (29 ) (72 ) (52 ) Withholding tax on interest expense and other (645 ) (582 ) (1,274 ) (1,228 ) Total other items, net (880 ) (1,422 ) (1,486 ) (2,224 ) Total financial income (expense), net $ (7,080 ) (8,814 ) (13,732 ) $ (16,559 ) |
Income tax
Income tax | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 7. Income tax The Partnership is not subject to Marshall Islands corporate income taxes. The Partnership is subject to tax for earnings of its subsidiaries incorporated in Singapore, Indonesia, Colombia, Cyprus and the UK and for certain Colombian source income. The income tax expense recorded in the consolidated income statements was $1,866 and $2,042 for the three months ended June 30, 2018 and 2017, respectively, and $ 3,975 and $3,797 for the six months ended June 30, 2018 and 2017, respectively. For the three and six months ended June 30, 2018 and 2017, the income tax expense largely related to the activities in Singapore, Indonesia and Colombia. The Singapore subsidiary’s taxable income mainly arises from internal interest income. The charterer in Colombia pays certain taxes directly to the Colombian tax authorities on behalf of the Partnership’s subsidiaries that own and operate the Höegh Grace 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 six months ended June 30, 2018, the estimated generation of taxable income resulted in the utilization of $407 and $786, respectively, of tax loss carryforward in Indonesia which was not recognized due to the uncertainty of this tax position. For the three and six months ended June 30, 2017, the estimated generation of taxable income resulted in the utilization of $65 and $224, respectively, of tax loss carryforward in Indonesia. As a result, a long-term |
Advances to joint ventures
Advances to joint ventures | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Advances to Joint Ventures Disclosure [Text Block] | 8. Advances to joint ventures As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Current portion of advances to joint ventures $ — $ — Long-term advances to joint ventures 3,397 3,263 Advances/shareholder loans to joint ventures $ 3,397 $ 3,263 The Partnership had advances of $2.7 million and $2.6 million due from SRV Joint Gas Ltd. as of June 30, 2018 and December 31, 2017, respectively. The Partnership had advances of $0.7 million and $0.7 million due from SRV Joint Gas Two Ltd. as of June 30, 2018 and December 31, 2017, respectively. The joint ventures repaid the original principal of all shareholder loans during 2016 and all of the payments for the year ended December 31, 2017 represented payments of interest, including accrued interest repaid at the end of the loans. Interest payments are treated as return on investment and included as a component of net cash provided by operating activities in the consolidated statements of cash flow. As of September 30, 2017, the joint ventures suspended payments on the shareholder loans pending the outcome of the boil-off claim. Accordingly, the outstanding balance on the shareholder loans was classified as long-term as of June 30, 2018 and December 31, 2017. Refer to note 14 under “Joint ventures claims and accruals.” The advances, including accrued interest, can be repaid based on available cash after servicing of long-term bank debt. There are no financial covenants in the bank debt facilities, but certain other covenants and restrictions apply. Certain conditions apply to making distributions for the shareholder loans or dividends, including meeting a 1.20 historical and projected debt service coverage ratio. As of June 30, 2018, the 1.20 historical and projected the debt service coverage ratio is met in future periods. |
Long-term debt
Long-term debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 9. Long-term debt As June December (in thousands of U.S. dollars) 2018 2017 Lampung facility: Export credit tranche $ 116,539 $ 123,982 FSRU tranche 29,076 31,164 Gallant facility: Commercial tranche 116,003 120,743 Export credit tranche 31,167 33,000 Grace facility: Commercial tranche 140,938 146,063 Export credit tranche 29,250 30,750 Outstanding principal 462,973 485,702 Lampung facility unamortized debt issuance cost (6,635 ) (7,494 ) Gallant facility unamortized fair value of debt assumed 382 552 Grace facility unamortized fair value of debt assumed 1,217 1,543 Total debt 457,937 480,303 Less: Current portion of long-term debt (45,458 ) (45,458 ) Long-term debt $ 412,479 $ 434,845 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 June 30, 2018, 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 limits, among other things, the ability of the borrower to change its business, sell or grant liens on its property including the PGN FSRU Lampung Gallant/Grace facility The Gallant/Grace facility 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 As of June 30, 2018, 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 the Borrowers to change their business, sell or grant liens on their property including the Höegh Gallant Höegh Grace |
Investments in joint ventures
Investments in joint ventures | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 10. Investments in joint ventures As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Accumulated losses of joint ventures $ 6,265 $ 20,746 The Partnership has a 50% interest in each of SRV Joint Gas Ltd. (owner of the Neptune GDF Suez Cape Ann Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2018 2017 2018 2017 Time charter revenues $ 21,152 20,449 43,143 $ 42,297 Total revenues 21,152 20,449 43,143 42,297 Operating expenses (5,417 ) (3,967 ) (10,364 ) (9,205 ) Depreciation and amortization (4,952 ) (5,106 ) (9,907 ) (10,142 ) Operating income 10,783 11,376 22,872 22,950 Unrealized gain (loss) on derivative instruments 5,933 (1,570 ) 18,963 3,422 Other financial expense, net (6,648 ) (6,858 ) (13,181 ) (13,962 ) Net income (loss) $ 10,068 2,948 28,654 $ 12,410 Share of joint ventures owned 50 % 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations 5,034 1,474 14,327 6,205 Eliminations 77 77 154 155 Equity in earnings (losses) of joint ventures $ 5,111 1,551 14,481 $ 6,360 As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Cash and cash equivalents $ 5,008 $ 8,100 Restricted cash 15,370 8,520 Other current assets 673 2,012 Total current assets 21,051 18,632 Restricted cash 25,323 25,208 Vessels, net of accumulated depreciation 538,921 547,993 Deferred charges 861 — Total long-term assets 565,105 573,201 Current portion of long-term debt 25,789 25,003 Amounts and loans due to owners and affiliates 286 314 Derivative financial instruments 10,833 10,649 Refund liabilities 26,089 — Other current liabilities 10,315 37,725 Total current liabilities 73,312 73,691 Long-term debt 416,385 429,307 Loans due to owners and affiliates 6,793 6,526 Derivative financial liabilities 48,937 68,085 Contract liabilities for deferred revenue 36,855 39,006 Total long-term liabilities 508,970 542,924 Net liabilities $ 3,874 $ (24,782 ) Share of joint ventures owned 50 % 50 % Share of joint ventures net liabilities before eliminations 1,937 (12,391 ) Eliminations (8,202 ) (8,355 ) Accumulated losses of joint ventures $ (6,265 ) $ (20,746 ) Effective January 1, 2018, SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. adopted ASC 606. Refer to notes 2.c. and 5. As a result, the combined condensed balance sheet was adjusted to include refund liabilities on a separate line. The prior period classification was not adjusted. As of December 31, 2017, refund liabilities were included as a component of other current liabilities. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 11. 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 the PGN FSRU Lampung Höegh Gallant Höegh Grace Amounts included in the consolidated statements of income for the three and six months ended June 30, 2018 and 2017 or capitalized in the consolidated balance sheets as of June 30, 2018 and December 31, 2017 are as follows: Three months ended Six months ended Statement of income: June 30, June 30, (in thousands of U.S. dollars) 2018 2017 2018 2017 Revenues Time charter revenue Höegh Gallant $ 12,320 11,232 23,145 $ 23,146 Operating expenses Vessel operating expenses (2) (4,612 ) (5,147 ) (9,674 ) (10,543 ) Hours, travel expense and overhead (3) and Board of Directors' fees (4) (710 ) (648 ) (1,719 ) (1,678 ) Interest income from joint ventures (5) 63 102 134 230 Interest expense and commitment fees to Höegh LNG (6) (843 ) (1,137 ) (1,641 ) (2,206 ) Total $ 6,218 4,402 10,245 $ 8,949 As of Balance sheet June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Equity Cash contribution from Höegh LNG (7) $ — $ 2,075 Cash distribution to Höegh LNG (7) — (1,534 ) Issuance of units for Board of Directors' fees (4) 160 189 Other and contribution from owner (8) 163 632 Total $ 323 $ 1,362 1) Time charter revenue Höegh Gallant: Höegh Gallant 2) Vessel operating expenses: 3) Hours, travel expenses and overhead: 4) Board of Directors’ fees of $195 of 8,840 units were issued under the award for compensation of $160. Effective May 22, 2017 a total of 9,805 of $189 issued. 5) Interest income from joint ventures: 6) Interest expense and commitment fees to Höegh LNG and affiliates Höegh Gallant 7) Cash contribution from/ distribution to Höegh LNG: equity. 8) Other and contribution from owner: Acquisition from Höegh LNG: Höegh Grace Dividends to Höegh LNG: Receivables and payables from related parties Amounts due from affiliates As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Amounts due from affiliates $ 4,235 $ 4,286 Amounts due from affiliates principally relate to receivables for time charter hire from a subsidiary of Höegh LNG, EgyptCo, for the Höegh Gallant Amounts due to owners and affiliates As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Amounts due to owners and affiliates $ 559 $ 1,417 Amounts due to owners and affiliates principally relate to trade payables for services provided by subsidiaries of Höegh LNG. The balance does not bear interest. Revolving credit facility due to owners and affiliates: As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Revolving credit facility due to owners and affiliates $ 45,292 $ 51,832 In August 2014, upon the closing of the IPO, the Partnership entered into an $85 million revolving credit facility with Höegh LNG, to be used to fund acquisitions and working capital requirements of the Partnership. The credit facility is unsecured and any outstanding balance is due January 1, 2020. Interest on drawn amounts is payable quarterly at LIBOR plus a margin of 4.0%. Additionally, a 1.4% quarterly commitment fee was due to Höegh LNG on the undrawn balance. On January 29, 2018, the Partnership and Höegh LNG amended the revolving credit facility eliminating the requirement to pay a commitment fee on the undrawn balance of the facility. Indemnifications Environmental indemnifications: Under the omnibus agreement, Höegh LNG will indemnify the Partnership until August 12, 2019 against certain environmental and toxic tort liabilities with respect to the assets contributed or sold to the Partnership to the extent arising prior to the time they were contributed or sold to the Partnership. Liabilities resulting from a change in law are excluded from the environmental indemnity. There is an aggregate cap of $5.0 million on the amount of indemnity coverage provided by Höegh LNG for environmental and toxic tort liabilities. No claim may be made unless the aggregate dollar amount of all claims exceeds $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 No indemnification claims were filed or received for the three and six months ended June 30, 2018, respectively. The Partnership received payments for filed claims for indemnification with respect to non-budgeted expenses (including the warranty provision, value added tax, withholding tax and other non-budgeted expenses) of approximately $0.3 million, $0.5 million and $1.6 million in the three and six months ended June 30, 2017 and the year ended December 31, 2017, respectively, which were recorded as a contribution to equity. Indemnification payments received from Höegh LNG are subject to repayment to the extent the amounts are subsequently recovered from insurance or deemed reimbursable by the charterer. For the year ended December 31, 2017, the Partnership refunded to Höegh LNG approximately $2.5 million related to previously recognized revenue that was deemed reimbursable in 2017 and an additional cost recovery of $1.5 of 2018, insurance proceeds of approximately $1.1 million were received related to repairs under the warranty for the mooring. The Partnership had been indemnified by Höegh LNG for all warranty provisions at the time the costs were incurred and expects to repay the amount recovered by insurance in the third quarter of 2018. 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 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 under certain circumstances. No indemnification claims were filed or received for the three or six months ended June 30, 2018. During the three and six months ended June 30, 2017, the Partnership received indemnification payments with respect to losses incurred in connection with the commencement of services under the time charter with EgyptCo due to technical issues of $0.3 million and $0.5 million, respectively, which were recorded as a contribution to equity. The Partnership received payments for filed claims of $0.5 million for the year ended December 31, 2017. Refer to note 14. Under the contribution, purchase and sale agreement entered into with respect to the acquisition of the 51% and 49% ownership interests in the Höegh Grace 1. losses from breach of warranty; 2. losses related to certain environmental liabilities, damages or repair costs and tax liabilities attributable to the operation of the Höegh Grace 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 the 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 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 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 12. Financial Instruments Fair value measurements The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents and restricted cash Amounts due from (to) owners and affiliates Derivative instruments – Advances (shareholder loans) to joint ventures – Lampung, Gallant and Grace facilities – Revolving credit facility due to owners and affiliates – The fair value estimates are categorized by a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the financial instruments that are not accounted for at a fair value on a recurring basis. As of As of June 30, 2018 December 31, 2017 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 $ 20,980 20,980 22,679 $ 22,679 Restricted cash 1 19,362 19,362 20,602 20,602 Amounts due from affiliate 2 4,235 4,235 4,286 4,286 Derivative instruments 2 1,859 1,859 (3,889 ) (3,889 ) Other: Advances (shareholder loans) to joint ventures 2 3,397 3,446 3,263 3,596 Current amounts due to owners and affiliates 2 (559 ) (559 ) (1,417 ) (1,417 ) Lampung facility 2 (138,980 ) (152,429 ) (147,652 ) (162,597 ) Gallant facility 2 (147,552 ) (148,453 ) (154,295 ) (155,325 ) Grace facility 2 (171,405 ) (171,415 ) (178,356 ) (178,652 ) Revolving credit facility due to owners and affiliates 2 $ (45,292 ) (44,980 ) (51,832 ) $ (51,099 ) Financing Receivables The following table contains a summary of the loan receivables by type of borrower and the method by which the credit quality is monitored on a quarterly basis: As of Class of Financing Receivables Credit Quality June 30, December 31, (in thousands of U.S. dollars) Indicator Grade 2018 2017 Trade receivable Payment activity Performing $ 4,425 $ 7,563 Amounts due from affiliate Payment activity Performing 4,235 4,286 Advances/ loans to joint ventures Payment activity Performing $ 3,397 $ 3,263 The shareholder loans to joint ventures are classified as advances to joint ventures in the consolidated balance sheet. Refer to note 8. |
Risk management and concentrati
Risk management and concentrations of risk | 6 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 13. Risk management and concentrations of risk Derivative instruments can be used in accordance with the overall risk management policy. Foreign currency 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 six months ended June 30, 2018, and 2017, no derivative financial instruments have been used to manage foreign exchange risk. The Gallant time charter provides that revenues are denominated 90% in U.S. dollars and 10% in Egyptian pounds, or as otherwise agreed between the parties from time to time. For the three and six months ended June 30, 2018, the revenues from the Höegh Gallant 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 June 30, 2018, 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. As of June 30, 2018, the following interest rate swap agreements were outstanding: Interest Fair Value carrying Fixed interest rate Notional amount rate (in thousands of U.S. dollars) index amount assets Term (1) LIBOR-based debt Lampung interest rate swaps (2) LIBOR $ 145,615 106 Sept 2026 2.8% Gallant interest rate swaps (2) LIBOR 119,438 918 Sept 2019 1.9% Grace interest rate swaps (2) LIBOR $ 130,688 835 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. The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the consolidated balance sheets. Current Long-term Current Long-term assets: assets: liabilities: liabilities: derivative derivative derivative derivative (in thousands of U.S. dollars) instruments instruments instruments instruments As of June 30, 2018 Interest rate swaps $ 973 $ 1,217 $ (331 ) $ — As of December 31, 2017 Interest rate swaps $ — $ 228 $ (2,015 ) $ (2,102 ) 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 six months ended June 30, 2018 and 2017. Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2018 2017 2018 2017 Interest rate swaps: Ineffective portion of cash flow hedge $ (21 ) (354 ) 22 $ (350 ) Amortization of amount excluded from hedge effectiveness 779 815 1,581 1,688 Reclassification from accumulated other comprehensive income (214 ) (214 ) (428 ) (428 ) Unrealized gains (losses) 544 247 1,175 910 Realized gains (losses) — — — — Total gains (losses) on derivative instruments $ 544 247 1,175 $ 910 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 and other comprehensive income is as follows for the periods ended and as of June 30, 2018 and 2017. Cash Flow Hedge (in thousands of U.S. dollars) Before tax gains (losses) Tax benefit (expense) Net of tax Accumulated OCI Balance as of December 31, 2017 $ (3,612 ) 864 (2,748 ) $ (2,748 ) Effective portion of unrealized loss on cash flow hedge 4,144 — 4,144 4,144 Reclassification of amortization of cash flow hedge to earnings 428 (165 ) 263 263 Other comprehensive income for period 4,572 (165 ) 4,407 4,407 Balance as of June 30, 2018 $ 960 699 1,659 $ 1,659 Cash Flow Hedge (in thousands of U.S. dollars) Before tax gains (losses) Tax benefit (expense) Net of tax Accumulated OCI Balance as of December 31, 2016 $ (6,947 ) 1,211 (5,736 ) $ (5,736 ) Effective portion of unrealized loss on cash flow hedge (317 ) — (317 ) (317 ) Reclassification of amortization of cash flow hedge to earnings 428 (175 ) 253 253 Other comprehensive income for period 111 (175 ) (64 ) (64 ) Balance as of June 30, 2017 $ (6,836 ) 1,036 (5,800 ) $ (5,800 ) 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 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 Höegh Gallant Höegh Grace |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 14. Commitments and contingencies Contractual commitments As of June 30, 2018, 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 revised claim as submitted in the arbitration request was a gross amount of $52 million, covering a shorter time period for the first performance period as defined in the time charters, and interest and expenses. 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. The charterer could potentially seek other concessions. Accruals are recorded for loss contingencies or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. As of September 30, 2017, the joint ventures determined the liability associated with the boil-off claim was probable and could be reasonably estimated resulting in a total accrual of $23.7 million which was recorded as a reduction of time charter revenues in the third quarter of 2017. The Partnership’s 50% share of the accrual was approximately $11.9 million. As of December 31, 2017, and June 30, 2018, the accrual was unchanged. Refer to note 10. The claim may ultimately be settled through negotiation or arbitration. The joint ventures will continue to monitor this issue and adjust accruals, as might be required, based upon additional information and further developments. Höegh LNG and the other major owner guarantee the performance and payment obligations of the joint ventures under the time charters. The guarantees are joint and several for the performance obligations and several for the payment obligations. Depending on the amount and timing of the potential settlement and whether such settlement is funded by the performance guarantees by Höegh LNG and the other major owner or by the joint ventures, a settlement of the claim for boil-off with the charterer could have a material adverse effect on the joint ventures’ financial condition and results of operations. As a precaution, the joint ventures have suspended payments on their shareholder loans pending the outcome of the boil-off claim. Refer to note 8. 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. Refer to note 11. 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 or capital improvements, if any, would not be expected to be indemnified. In addition, the joint ventures expect to incur costs for certain capital improvements and maintenance that will not be reimbursed by the charterer or Hoegh LNG for which the Partnership's 50% share is approximately $1.7 million and $1.2 million for the years ended December 31, 2018 and 2019, respectively, to address certain boil-off issues and other maintenance requirements. 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 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 interpretation 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. Tax 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. The Indonesian subsidiary has been notified that it will be subject to a tax examination for the fiscal years of 2013 and 2014. Such an examination may or may not result in changes to the Partnership’s provisions on tax filings from 2013 through 2017. PGN LNG claims including delay liquidated damages The Partnership was indemnified by Höegh LNG for i) any hire rate payments not received under the PGN FSRU Lampung time charter for the period commencing on August 12, 2014 through the acceptance date of the PGN FSRU Lampung and ii) non-budgeted expenses (including warranty costs) incurred in connection with the PGN FSRU Lampung No indemnification claims were filed or received for the three and six months ended June 30, 2018, respectively. The Partnership received payments for filed claims for indemnification with respect to non-budgeted expenses (including the warranty provision, value added tax, withholding tax and other non-budgeted expenses) of approximately $0.3 million, $0.5 million and $1.6 million in the three and six months ended June 30, 2017 and the year ended December 31, 2017, respectively, which were recorded as a contribution to equity. Indemnification payments received from Höegh LNG are subject to repayment to the extent the amounts are subsequently recovered from insurance or deemed reimbursable by the charterer. For the year ended December 31, 2017, the Partnership refunded to Höegh LNG approximately $2.5 million related to previously recognized revenue that was deemed reimbursable in 2017 and an additional cost recovery of $1.5 million, which was recorded as a cash distribution to equity. In the third quarter of 2018, insurance proceeds of approximately $1.1 million was received related to repairs under the warranty for the Mooring. The Partnership had been indemnified by Höegh LNG for all warranty provisions at the time the costs were incurred and expects to repay the amount recovered by insurance in the third quarter of 2018. 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 the Höegh Gallant No indemnification claims were filed or received for the three or six months ended June 30, 2018, respectively. For the three and six months ended June 30, 2017, the Partnership received indemnification payments with respect to losses incurred in connection with the commencement of services under the time charter with EgyptCo due to technical issues of $0.3 million and $0.5 million, respectively, which were recorded as a contribution to equity. The Partnership received payments for filed claims of $0.5 million for the year ended December 31, 2017. Refer to note 11. |
Supplemental cash flow informat
Supplemental cash flow information | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | 15. Supplemental cash flow information Three months ended Six months ended (in thousands of U.S. dollars) 2018 2017 2018 2017 Supplemental disclosure of non-cash investing activities Non-cash expenditures for vessel and other equipment $ 100 — 100 $ — Non-cash expenditures on direct finance lease 200 — 200 — Supplemental disclosure of non-cash financing activities Non-cash proceeds from common units 202 — 202 — Non-cash proceeds from preferred units $ 380 — 380 $ — |
Issuance of common units and Se
Issuance of common units and Series A Preferred Units | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 16. Issuance of common units and Series A Preferred Units On January 26, 2018, the Partnership entered into sales agreement with the Agent. Under the terms of the sales agreement, the Partnership may offer and sell up to $120 million in aggregate offering amount of common units and Series A preferred units, from time to time, through the Agent, acting as agent for the Partnership. Sales of such units may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings, including sales made directly on the New York Stock Exchange or through a market marker other than on an exchange. As of June 30, 2018, the Partnership had sold 171,375 common units at an average gross sales price of $18.23 per unit for net proceeds, after sales commissions, of $3.1 million. As of June 30, 2018, the Partnership had sold 788,026 Series A preferred units at an average gross sales price of $25.84 per unit for net proceeds, after sales commissions, of $20.0 million. The Partnership has paid an aggregate of $0.4 million in sales commissions to the Agent in connection with such sales as of June 30, 2018. Proceeds in the table below are included for all units issued as of June 30, 2018 while the receipt of the international cash transfer of the proceeds by the Partnership from the Agent will normally occur the one or two days after the issuance date. As of June 30, 2018 (in thousands of U.S. dollars) Common units Series A Preferred Units Total Gross proceeds for units issued $ 3,124 20,360 $ 23,484 Less: Commissions (40 ) (364 ) (404 ) Net proceeds for units issued $ 3,084 19,996 $ 23,080 |
Common, subordinated and prefer
Common, subordinated and preferred units | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Common And Subordinated Units [Text Block] | 17. Common, subordinated and preferred units The following table shows the movements in the number of common units, subordinated units and preferred units from December 31, 2016 until June 30, 2018: (in units) Common Units Public Common Units Höegh LNG Subordinated Units Höegh LNG 8.75% Series A Preferred Units December 31, 2016 17,639,039 2,116,060 13,156,060 — May 22, 2017; Awards to non-employee directors as compensation for directors' fees 9,805 — — — October 5, 2017; Series A preferred units offering — — — 4,600,000 December 31, 2017 17,648,844 2,116,060 13,156,060 4,600,000 Phantom units issued 8,138 — — — ATM program 171,375 — — 788,026 Units issued to staff at Höegh LNG 14,622 (14,622 ) — — June 6, 2018; Awards to non-employee directors as compensation for directors' fees 8,840 — — — June 30, 2018 17,851,819 2,101,438 13,156,060 5,388,026 As of June 30, 2018, Höegh LNG owned 2,101,438 common units and 13,156,060 subordinated units. As of December 31, 2017, and 2016, Höegh LNG owned 2,116,060 common units and 13,156,060 subordinated units. Subordinated units are not entitled to vote for the four elected directors to the Partnership’s board of directors. The general partner has a non-economic interest and has no units. Refer to note 18 for information on distributions to common and subordinated unitholders. The Series A preferred units represent perpetual equity interests in the Partnership and, unlike the Partnership's debt, do not give rise to a claim for payment of a principal amount at a particular date. The Series A preferred units rank senior to the Partnership's common units and subordinated units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up but junior to all of the Partnership's debt and other liabilities. The Series A preferred units have a liquidation preference of $25.00 per unit. At any time on or after October 5, 2022, the Partnership may redeem, in whole or in part, the Series A preferred units at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of redemption. The distribution rate on the Series A preferred units is 8.75% per annum of the $25.00 per unit value (equivalent to $2.1875 per annum per unit). The distributions are cumulative and recorded when declared. However, since the Series A preferred units rank senior to the Partnership's common and subordinated units, the portion of net income, equivalent to the Series A preferred units' paid and undeclared distributions for that period, is reflected as Preferred unitholders' interest in net income on the consolidated statement of income. Distributions are payable quarterly, when, and if declared by the Partnership's board of directors out of legally available funds for such purpose. Holders of the Series A preferred units generally have no voting rights. |
Earning per unit and cash distr
Earning per unit and cash distributions | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Unit [Abstract] | |
Earnings Per Share [Text Block] | 18. Earning per unit and cash distributions The calculation of basic and diluted earnings per unit are presented below: Three months ended June 30, Six months ended June 30, (in thousands of U.S. dollars, except per unit numbers) 2018 2017 2018 2017 Net income $ 19,944 $ 12,212 41,630 $ 28,401 Adjustment for: Non-controlling interest — 2,812 — 5,556 Preferred unitholders' interest in net income 3,003 — 5,663 — Limited partners' interest in net income 16,941 9,400 35,967 22,845 Less: Dividends paid or to be paid (1) (14,988 ) (14,441 ) (29,942 ) (28,878 ) Under (over) distributed earnings 1,953 (5,041 ) 6,025 (6,033 ) Under (over) distributed earnings attributable to: Common units public 1,053 (2,702 ) 3,253 (3,233 ) Common units Höegh LNG 124 (324 ) 383 (388 ) Subordinated units Höegh LNG 776 (2,015 ) 2,390 (2,412 ) 1,953 (5,041 ) 6,026 (6,033 ) Basic weighted average units outstanding (in thousands) Common units public 17,827 17,643 17,790 17,641 Common units Höegh LNG 2,101 2,116 2,102 2,116 Subordinated units Höegh LNG 13,156 13,156 13,156 13,156 Diluted weighted average units outstanding (in thousands) Common units public 17,839 17,654 17,804 17,651 Common units Höegh LNG 2,101 2,116 2,102 2,116 Subordinated units Höegh LNG 13,156 13,156 13,156 13,156 Basic and diluted earnings per unit (2): Common unit public $ 0.50 $ 0.28 $ 1.07 $ 0.68 Common unit Höegh LNG (3) $ 0.53 $ 0.30 $ 1.11 $ 0.71 Subordinated unit Höegh LNG (3) $ 0.53 $ 0.30 $ 1.11 $ 0.71 (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 March 23, 2018, the Partnership granted 14,584 phantom units to the CEO/CFO of the Partnership. One-third of the phantom units vest as of November 30, 2019, 2020 and 2021, respectively. Effective June 3, 2016, the Partnership granted 21,500 phantom units to the CEO/CFO of the Partnership. One-third of the phantom units vest as of December 31, 2017, November 30, 2018 and November 30, 2019, respectively. 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 were the same. (3) Includes total amounts attributable to incentive distributions rights of $398 and $795 for the three and six months ended June 30, 2018, respectively, of which $55 and $109 for the three and six months ended June 30, 2018, respectively, were attributed to common units owned by Höegh LNG. Total amounts attributable to incentive distributions rights of $343 and $685 for the three and six months ended June 30, 2018, respectively, were attributed to subordinated units owned by Höegh LNG. For the three and six months ended June 30, 2017, total amounts attributable to incentive distributions rights of $285 and $570, of which $40 and 79 were attributed to common units owned by Höegh LNG and $246 and $491 were attributed to subordinated units owned by Höegh LNG. As of June 30, 2018, the Partnership has issued and outstanding 19,953,257 common units, 5,388,026 Series A preferred units and 13,156,060 subordinated units. 17,851,819 of the common units were held by the public and 2,101,438 of the common units were held by Höegh LNG. As of June 30, 2018, Höegh LNG owned all of the 13,156,060 subordinated units. The General Partner has a non-economic interest and has no units. Earnings per unit is calculated by dividing net income by the weighted average number of units outstanding during the applicable period. The common unitholders’ and subordinated unitholders’ interest in net income are calculated as if all net income were distributed according to terms of the Partnership’s Second Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”), regardless of whether those earnings would or could be distributed. The Partnership Agreement does not provide for the distribution of net income; rather, it provides for the distribution of available cash. Available cash, a contractual defined term, generally means all cash on hand at the end of the quarter after deduction for cash reserves established by the board of directors and the Partnership’s subsidiaries to i) provide for the proper conduct of the business (including reserves for future capital expenditures and for the anticipated credit needs); ii) comply with applicable law, any of the debt instruments or other agreements; iii) provide funds for payments on the Series A preferred units; and iv) provide funds for distributions to the unitholders for any one or more of the next four quarters. Therefore, the earnings per unit 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 instruments and unrealized gains or losses on foreign exchange transactions. During the subordination period, the common units will have the right under the Partnership Agreement to receive distributions of available cash from operating surplus in an amount equal to the minimum quarterly distribution of $0.3375 per unit, plus any arrearages in the payment of the minimum quarterly distribution on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. Distribution arrearages do not accrue on the subordinated units. Distributions of available cash from operating surplus are to be made in the following manner for any quarter during the subordination period: • first • second • third 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. • the Partnership has distributed available cash from operating surplus to the common and subordinated unitholders in an amount If for any quarter during the subordination period: 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 • second • third • thereafter In each case, the amount of the target distribution set forth above is exclusive of any distributions to common unitholders to eliminate any cumulative arrearages in payment of the minimum quarterly distribution. The percentage interests set forth above assume that the Partnership does not issue additional classes of equity securities. |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 19. Subsequent events On August 14, 2018, the Partnership paid a quarterly cash distribution with respect to the quarter ended June 30, 2018 of $0.44 per common and subordinated unit. The total amount of the distribution was $15.0 million. On August 15, 2018, the Partnership paid a cash distribution of $3.2 million, or $0.546875 per Series A preferred unit, for the period commencing on May 15, 2018 to August 14, 2018. On August 21, 2018, the Partnership repaid $6.0 million on the revolving credit facility using part of the net proceeds of the ATM program. For the period from July 2, 2018 to , 2018, from July 2, 2018 to , 2018, the from July 2, 2018 to , 2018. million. |
Significant accounting polici27
Significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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 United States generally accepted accounting principles (“US GAAP”) for interim financial information. In the opinion of Management, all adjustments considered necessary for a fair presentation, which are of a normal recurring nature, have been included. All inter-company balances and transactions are eliminated. The footnotes are condensed and do not include all of the disclosures required for a complete set of financial statements. Therefore, the unaudited condensed interim consolidated financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2017, 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 expected residual returns and substantially all of the entity's activities either involve, or are conducted on behalf of, the Partnership. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of PT Hoegh LNG Lampung are included in the consolidated financial statements. Dividends may only be paid if the retained earnings are positive and a statutory reserve has been established equal to 20% of its paid up capital under Indonesian law. As of June 30, 2018, PT Hoegh LNG Lampung did not have adequate positive retained earnings to establish the required statutory reserves and therefore cannot make dividend payments under Indonesia law. Under the Lampung facility, there are limitations on cash dividends and loan distributions that can be made to the Partnership. Refer to note 9. 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% of the assets, liabilities, revenues and expenses of Höegh LNG FSRU III Ltd. are included in the consolidated financial statements. Under Cayman Islands law, dividends may only be paid out of profits or capital reserves if the entity is solvent after the distribution. Under the Gallant/Grace facility, there are limitations on dividends and loans distributions that can be made to the Partnership. Refer to note 9. The Partnership is a guarantor of the Gallant/Grace facility. 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 the Höegh Grace 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 $2.7 million and $2.6 million, respectively, and the Partnership’s accumulated losses or its share of net liabilities were $3.3 million and $10.7 million, respectively, as of June 30, 2018 and December 31, 2017. The Partnership’s carrying value for SRV Joint Gas Two Ltd. consists of a receivable for the advances of $0.7 million and $0.7 million, respectively, and the Partnership’s accumulated losses or its share of net liabilities were $3.0 million and $10.0 million, respectively, as of June 30, 2018 and December 31, 2017. The Partnership’s accumulated losses in the joint ventures are net liabilities due to the fair value adjustments for the interest rate swaps recorded as liabilities on the combined balance sheets of SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd and eliminations for consolidation to the balance sheet. The maximum exposure to loss is the carrying value of the receivables, which is subordinated to the joint ventures’ long-term bank debt, the investments in the joint ventures (accumulated losses), as the shares are pledged as security for the joint ventures’ long-term bank debt and Höegh LNG’s commitment under long-term bank loan agreements to fund its share of drydocking costs and remarketing efforts in the event of an early termination of the charters. Dividend distributions require a) agreement of the other joint venture owners; b) fulfilment of requirements of the long-term bank loans; c) and under Cayman Islands law may be paid out of profits or capital reserves subject to the joint venture being solvent after the distribution. Refer to note 8. |
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, 2017 included in the Partnership’s Annual Report. |
New Accounting Pronouncements, Policy [Policy Text Block] | c. Recent accounting pronouncements Recently adopted accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard, Revenue from Contracts with Customers Changes to accounting policies as a result of adopting ASC 606 are discussed below: Time charter revenues and related contract balances The Partnership’s consolidated revenue and the revenue of the joint ventures are derived from long-term time charter contracts for the provision of an FSRU including the management and operation of the FSRU at the direction of the charterer. Revenue recognition: The Partnership is required to evaluate whether two or more contracts should be combined and accounted for as a single contract, whether the contract promises to deliver more than one distinct good or service, or performance obligations, and/or a lease, determine the transaction price under the contract, allocate the transaction price to the lease and the performance obligations and recognize revenue as the performance obligation is satisfied. Performance obligations The Partnership determined that its time charter contracts contain a lease and a performance obligation for the provision of time charter services. The lease of the vessel, representing the use of the vessel without any associated performance obligations or warranties, is accounted for in accordance with the provisions of ASC 840; Leases The provision of time charter services, including guarantees for the level of performance provided by the time charter contracts, is considered a distinct service and is accounted for in accordance with the provision of ASC 606, Revenue from Contracts with Customers. Time charter services revenue can be recognized as the performance obligation is satisfied over the 24-hour interval to the performance standards specified under the time charter contract. If the performance standards are not met, off-hire, reduced hire, liquidated damages or other performance payments may result. Contract terms, determination of transaction price and allocation to performance obligations The Partnership’s time charter contracts for all FSRUs, except the Höegh Gallant ● Fixed element ● Operating expense reimbursement element ● Tax reimbursement element ● Performance warranties element The Höegh Gallant has a single day rate intended to cover all of the elements listed above. In addition, the time charter contract for the Höegh Gallant includes a provision for days of off-hire for scheduled maintenance. The joint ventures’ time charter contracts also provide for upfront payments for variable costs for certain vessel modifications, drydocking costs, other additions to equipment or spare parts. The hire rates for the PGN FSRU Lampung Höegh Gallant Höegh Grace The transaction price is estimated as the standalone selling price for the lease and the time charter services components of the fixed day rate element. Variable consideration per day for operating expense and tax reimbursements is estimated at the most likely amount to which the Partnership is expected to be entitled to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty related to the variable consideration is resolved. When there is significant uncertainty related to that amount of variable consideration to be received, that variable consideration is considered constrained. Typically, variable reimbursements and performance warranties are known at the end of each 24-hour interval, or as subsequently reassessed at the end of the reporting period. However, to the extent interpretations of contractual provisions are complex and/or disputed with the customer, this could give rise to constrained variable consideration. Constrained variable consideration is not estimated. Variable consideration is allocated entirely to one performance obligation when the variable day rate relates specifically to the efforts to satisfy the signal performance obligation. The default method of the relative standalone selling price method was used to allocate the remaining transaction price, principally the fixed element, between the lease and the time charter services. The total estimated transaction price for time charter services is considered variable consideration because it may be reduced by performance warranties. The Partnership has made a policy election to exclude from the measurement of the transaction price all taxes assessed by a government entity on revenues, and collected on behalf of that government entity from customers, such as sales or value added taxes. Lease revenue recognition Leases are classified based upon defined criteria either as direct financing leases or operating leases. A lease that transfers substantially all of the benefits and risks of the FSRU to the charterer is accounted for as a financing lease by the lessor. All other leases that do not meet the criteria are classified as operating leases. The lease component of time charters that are accounted for as operating leases is recognized on a straight line basis over the term of the charter. The Höegh Gallant’s Höegh Grace's The lease component of time charters that are accounted for as direct financing leases is recognized over the lease term using the effective interest rate method and is included in time charter revenues. Origination costs related to the time charter are a component of the net investment in direct financing lease and amortized over the lease term using the effective interest method. Direct financing leases are reflected on the consolidated balance sheets as net investments in direct financing leases. The PGN FSRU Lampung Time charter services revenue recognition Variable consideration for the time charter services performance obligation, including amounts allocated to time charter services, estimated reimbursements for vessel operating expenses and estimated reimbursements of certain types of costs and taxes, are recognized as revenues as the performance obligation for the 24-hour interval is fulfilled, subject to adjustment for off-hire and performance warranties. Constrained variable consideration is recognized as revenue on a cumulative catch-up basis when the significant uncertainty related to that amount of variable consideration to be received is resolved. Estimates for variable consideration, including constrained variable consideration, are reassessed at the end of each period. Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes directly related to the provision of the time charter services are recorded as a component of time charter service revenues. The amount of non-cash revenue is disclosed separately in the consolidated statement of cash flows. Joint venture FSRUs lease and time charter services revenue recognition Neptune GDF Suez Cape Ann’s The accounting policy for time charter services for the joint ventures is the same as described above. Significant judgments in revenue recognition The Partnership does not provide stand-alone bareboat leases or time charter services for FSRUs. As a result, observable stand-alone transaction prices for the performance obligations are not available. The estimation of the transaction price for the lease and the time charter service performance obligation is complex, subject to a number of input factors, such as market conditions when the contract is entered , internal return objectives and pricing policies, and requires substantial judgment. Significant changes in the transaction price between the two performance obligations could impact conclusions on the accounting for leases as financing or operating leases. In addition, variable consideration is estimated at the most likely amount that the Partnership expects to be entitled to. Variable consideration is reassessed at the end of the reporting period taking into account performance warranties. The time charter contracts include provisions for performance guarantees that can result in off-hire, reduced hire, liquidated damages or other payments for performance warranties. Measurement of some of the performance warranties can be complex and require properly calibrated equipment on the vessel, complex conversions and computations based on substantial judgment in the interpretation of the contractual provisions. Conclusions on compliance with performance warranties impacts the amount of variable consideration recognized for time charter services. Contract assets: Revenue recognized in excess of the monthly invoiced amounts, or accrued revenue, is recorded as contract assets on the consolidated balance sheet. The contract assets are reported in the consolidated balance sheet as a component of prepaid expenses and other receivables. Contract liabilities: Advance payments in excess of revenue recognized, or prepayments, and deferred revenue is recorded as contract liabilities on the consolidated balance sheet. Contract assets and liabilities are reported in a net position for each customer contract or combined contracts at the end of each reporting period. Contract liabilities are classified as current or non-current based on the expected timing of recognition of the revenue. Current and non-current contract liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables and other long-term liabilities, respectively. Refund liabilities: Amounts invoiced or paid by the customer that are expected to be refunded to the customer are recorded as refund liabilities on the consolidated balance sheet. Refund liabilities may include invoiced amounts for estimated reimbursable operating expenses or other costs and taxes that exceeded the actual costs incurred, or off-hire, reduced hire, liquidated damages, or other payments for performance warranties. Refund liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables. Remaining performance obligations Remaining performance obligations represent the transaction price of contracts with customers under the scope of ASC 606 for which work has not been performed excluding unexercised contract options to extend the term. The Partnership qualifies for and has elected to apply the exemption to disclose the aggregate amount of remaining transaction price allocated to unsatisfied performance obligations at the end of the reporting period as consideration for time charter services is variable and allocated entirely to wholly satisfied performance obligations. As described in note 1, the Partnership’s FSRUs operate under long-term time charter contracts which terminate between April 2020 for the Höegh Gallant PGN FSRU Lampung Statement of cash flows Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued revised guidance for Statement of Cash Flows: Restricted Cash As of June 30, 2017 Three months ended Balance Prior to Adjustments As (in thousands of U.S. dollars) Cash Flow Line Items Adoption Increase/(Decrease) Adjusted OPERATING ACTIVITIES Restricted cash $ (3,078 ) 3,078 $ — INVESTING ACTIVITIES Cash acquired in the purchase of the Höegh Grace — — — FINANCING ACTIVITIES Restricted cash 78 (78 ) — Increase (decrease) in cash, cash equivalents and restricted cash (3,315 ) 3,000 (315 ) Cash, cash equivalents and restricted cash, beginning of period 18,767 22,994 41,761 Cash, cash equivalents and restricted cash, end of period $ 15,452 25,994 $ 41,446 As of June 30, 2017 Six months ended Balance Prior to Adjustments As (in thousands of U.S. dollars) Cash Flow Line Items Adoption Increase/(Decrease) Adjusted OPERATING ACTIVITIES Restricted cash $ (3,844 ) 3,844 $ — INVESTING ACTIVITIES Cash acquired in the purchase of the Höegh Grace 3,774 19 3,793 FINANCING ACTIVITIES Restricted cash 78 (78 ) — Increase (decrease) in cash, cash equivalents and restricted cash (3,463 ) 3,785 322 Cash, cash equivalents and restricted cash, beginning of period 18,915 22,209 41,124 Cash, cash equivalents and restricted cash, end of period $ 15,452 25,994 $ 41,446 Amounts included in restricted cash represent balances deposited with a bank as required under debt facilities to settle withholding and other tax liabilities and other current obligations of the entity, principal and interest payments as required by the debt facilities. Restricted cash is classified as long-term when the settlement is more than 12 months from the balance sheet date. Recently issued accounting pronouncements Refer to note 2 of the audited financial statements for the year ended December 31, 2017 included in the Partnership’s Annual Report for recently issued accounting pronouncements expected to impact the Partnership. |
Description of business (Tables
Description of business (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018. 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. (100% owned) (4) Cayman Islands Owns 100% of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S. Höegh LNG FSRU IV Ltd. (100% indirectly owned) (4) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (100% 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% 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% of the ownership interests were acquired on January 3, 2017, and the remaining 49% of the ownership interests were acquired on December 1, 2017. |
Significant accounting polici29
Significant accounting policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The adoption changed how restricted cash is reported in the consolidated statement of cash flows as follows for the three and six months ended June 30, 2017: As of June 30, 2017 Three months ended Balance Prior to Adjustments As (in thousands of U.S. dollars) Cash Flow Line Items Adoption Increase/(Decrease) Adjusted OPERATING ACTIVITIES Restricted cash $ (3,078 ) 3,078 $ — INVESTING ACTIVITIES Cash acquired in the purchase of the Höegh Grace — — — FINANCING ACTIVITIES Restricted cash 78 (78 ) — Increase (decrease) in cash, cash equivalents and restricted cash (3,315 ) 3,000 (315 ) Cash, cash equivalents and restricted cash, beginning of period 18,767 22,994 41,761 Cash, cash equivalents and restricted cash, end of period $ 15,452 25,994 $ 41,446 As of June 30, 2017 Six months ended Balance Prior to Adjustments As (in thousands of U.S. dollars) Cash Flow Line Items Adoption Increase/(Decrease) Adjusted OPERATING ACTIVITIES Restricted cash $ (3,844 ) 3,844 $ — INVESTING ACTIVITIES Cash acquired in the purchase of the Höegh Grace 3,774 19 3,793 FINANCING ACTIVITIES Restricted cash 78 (78 ) — Increase (decrease) in cash, cash equivalents and restricted cash (3,463 ) 3,785 322 Cash, cash equivalents and restricted cash, beginning of period 18,915 22,209 41,124 Cash, cash equivalents and restricted cash, end of period $ 15,452 25,994 $ 41,446 |
Segment information (Tables)
Segment information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables include the results for the segments for the three and six months ended June 30, 2018 and 2017. Three months ended June 30, 2018 (in thousands of U.S. dollars) Majority Joint venture Other Total Elimin- Consolidated Time charter revenues $ 35,510 10,576 — 46,086 (10,576 ) (1) $ 35,510 Other revenue 1,100 (3) — — 1,100 (1) 1,100 Total revenues 36,610 10,576 — 47,186 36,610 Operating expenses (6,383 ) (2,709 ) (1,180 ) (10,272 ) 2,709 (1) (7,563 ) Equity in earnings (losses) of joint ventures — — — — 5,111 (1) 5,111 Segment EBITDA 30,227 7,867 (1,180 ) 36,914 Depreciation and amortization (5,268 ) (2,399 ) — (7,667 ) 2,399 (1) (5,268 ) Operating income (loss) 24,959 5,468 (1,180 ) 29,247 28,890 Gain (loss) on derivative instruments 544 2,967 — 3,511 (2,967 ) (1) 544 Other financial income (expense), net (6,839 ) (3,324 ) (785 ) (10,948 ) 3,324 (1) (7,624 ) Income (loss) before tax 18,664 5,111 (1,965 ) 21,810 — 21,810 Income tax benefit (expense) (1,845 ) — (21 ) (1,866 ) — (1,866 ) Net income (loss) $ 16,819 5,111 (1,986 ) 19,944 — $ 19,944 Preferred unitholders’ interest in net income — — — — 3,003 (2) 3,003 Limited partners' interest in net income (loss) $ 16,819 5,111 (1,986 ) 19,944 (3,003 ) (2) $ 16,941 (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) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. (3) Other revenue consists of insurance proceeds received, subsequent to June 30, 2018, for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs, subject to repayment to the extent recovered from insurance proceeds. The amount is expected to be refunded to Höegh LNG during the third quarter of 2018. Refer to notes 5 and 14. Three months ended June 30, 2017 (in thousands of U.S. dollars) Majority Joint venture Other Total Elimin- Consolidated Time charter revenues $ 35,024 10,225 — 45,249 (10,225 ) (1) $ 35,024 Total revenues 35,024 10,225 — 45,249 35,024 Operating expenses (6,693 ) (1,984 ) (1,400 ) (10,077 ) 1,984 (1) (8,093 ) Construction contract expenses (151 ) — — (151 ) (151 ) Equity in earnings (losses) of joint ventures — — — — 1,551 (1) 1,551 Less: Non-controlling interest in Segment EBITDA (5,423 ) — — (5,423 ) 5,423 (2) — Segment EBITDA 22,757 8,241 (1,400 ) 29,598 Add: Non-controlling interest in Segment EBITDA 5,423 — — 5,423 (5,423 ) (2) — Depreciation and amortization (5,263 ) (2,476 ) — (7,739 ) 2,476 (1) (5,263 ) Operating income (loss) 22,917 5,765 (1,400 ) 27,282 23,068 Gain (loss) on derivative instruments 247 (785 ) — (538 ) 785 (1) 247 Other financial income (expense), net (8,028 ) (3,429 ) (1,033 ) (12,490 ) 3,429 (1) (9,061 ) Income (loss) before tax 15,136 1,551 (2,433 ) 14,254 — 14,254 Income tax expense (2,042 ) — — (2,042 ) — (2,042 ) Net income (loss) $ 13,094 1,551 (2,433 ) 12,212 — $ 12,212 Non-controlling interest in net income 2,812 — — 2,812 2,812 Partners' interest in net income (loss) $ 10,282 1,551 (2,433 ) 9,400 — $ 9,400 (1) Eliminations reverse each of the income statement line items of the proportional consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. (2) 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. Six months ended June 30, 2018 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 $ 70,395 21,572 — 91,967 (21,572 ) (1) $ 70,395 Other revenue 1,100 (3) — — 1,100 1,100 Total revenues 71,495 21,572 — 93,067 71,495 Operating expenses (12,917 ) (5,182 ) (3,186 ) (21,285 ) 5,182 (1) (16,103 ) Construction contract expenses — — — — — Equity in earnings (losses) of joint ventures — — — — 14,481 (1) 14,481 Segment EBITDA 58,578 16,390 (3,186 ) 71,782 Depreciation and amortization (10,536 ) (4,800 ) — (15,336 ) 4,800 (1) (10,536 ) Operating income (loss) 48,042 11,590 (3,186 ) 56,446 59,337 Gain (loss) on derivative instruments 1,175 9,482 — 10,657 (9,482 ) (1) 1,175 Other financial income (expense), net (13,409 ) (6,591 ) (1,498 ) (21,498 ) 6,591 (1) (14,907 ) Income (loss) before tax 35,808 14,481 (4,684 ) 45,605 — 45,605 Income tax expense (3,954 ) — (21 ) (3,975 ) — (3,975 ) Net income (loss) $ 31,854 14,481 (4,705 ) 41,630 — $ 41,630 Preferred unitholders’ interest in net income — — — 5,663 (2) 5,663 Limited partners' interest in net income (loss) $ 31,854 14,481 (4,705 ) 41,630 (5,663 ) (2) $ 35,967 (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) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. (3) Other revenue consists of insurance proceeds received, subsequent to June 30, 2018, for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs, subject to repayment to the extent recovered from insurance proceeds. The amount is expected to be refunded to Höegh LNG during the third quarter of 2018. Refer to notes 5 and 14. As of June 30, 2018 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 $ 668,648 261,259 — 929,907 (261,259 ) (1) $ 668,648 Net investment in direct financing lease 284,962 — — 284,962 — 284,962 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,397 3,397 — 3,397 Total assets 1,025,047 284,876 15,040 1,324,963 (284,876 ) (1) 1,040,087 Accumulated losses of joint ventures — — 50 50 (6,315 ) (1) (6,265 ) Expenditures for vessels & equipment &prepayments 100 530 — 630 (530 ) (2) 100 Expenditures for drydocking — 318 — 318 (318 ) (2) — Principal repayment direct financing lease 1,863 — — 1,863 — 1,863 Amortization of above market contract $ 1,800 — — 1,800 — $ 1,800 (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. Six months ended June 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 $ 70,101 21,149 — 91,250 (21,149 ) (1) $ 70,101 Total revenues 70,101 21,149 — 91,250 70,101 Operating expenses (13,955 ) (4,603 ) (3,072 ) (21,630 ) 4,603 (1) (17,027 ) Construction contract expenses (151 ) — — (151 ) (151 ) Equity in earnings (losses) of joint ventures — — — — 6,360 (1) 6,360 Less: Non-controlling interest in Segment EBITDA (10,417 ) — — (10,417 ) 10,417 (2) — Segment EBITDA 45,578 16,546 (3,072 ) 59,052 Add: Non-controlling interest in Segment EBITDA 10,417 — — 10,417 (10,417 ) (2) — Depreciation and amortization (10,526 ) (4,916 ) — (15,442 ) 4,916 (1) (10,526 ) Operating income (loss) 45,469 11,630 (3,072 ) 54,027 48,757 Gain (loss) on derivative instruments 910 1,711 — 2,621 (1,711 ) (1) 910 Other financial income (expense), net (15,483 ) (6,981 ) (1,986 ) (24,450 ) 6,981 (1) (17,469 ) Income (loss) before tax 30,896 6,360 (5,058 ) 32,198 — 32,198 Income tax expense (3,797 ) — — (3,797 ) — (3,797 ) Net income (loss) $ 27,099 6,360 (5,058 ) 28,401 — $ 28,401 Non-controlling interest in net income 5,556 — — 5,556 5,556 Partners’ interest in net income (loss) $ 21,543 6,360 (5,058 ) 22,845 — $ 22,845 (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 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 December 31, 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 $ 679,041 265,642 — 944,683 (265,642 ) (1) $ 679,041 Net investment in direct financing lease 286,626 — — 286,626 — 286,626 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,263 3,263 — 3,263 Total assets 1,041,517 287,562 17,442 1,346,521 (287,562 ) (1) 1,058,959 Accumulated losses of joint ventures — — 50 50 (20,796 ) (1) (20,746 ) Expenditures for vessels & equipment 287 525 — 811 (524 ) (2) 287 Expenditures for drydocking — — — — — (2) — Principal repayment direct financing lease 3,485 — — 3,485 — 3,485 Amortization of above market contract 3,631 — — 3,631 — 3,631 Non-controlling interest amortization of above market contract $ (553 ) — — (553 ) — $ — (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 |
Time charter revenues and rel31
Time charter revenues and related contract balances (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following tables summarize the disaggregated revenue of the Partnership by segment for the three and six months ended June 30, 2018: Three months ended June 30, 2018 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) reporting Lease revenues, excluding amortization $ 22,467 6,405 — 28,872 (6,405 ) $ 22,467 Time charter service revenues, excluding amortization 13,948 3,598 — 17,546 (3,598 ) 13,948 Amortization of above market contract intangibles (905 ) — — (905 ) (905 ) Amortization of deferred revenue for modifications & drydock — 573 — 573 (573 ) — Other revenue (2) 1,100 — — 1,100 — 1,100 Total revenues (3) $ 36,610 10,576 — 47,186 (10,576 ) $ 36,610 Six months ended June 30, 2018 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) reporting Lease revenues, excluding amortization $ 44,146 12,739 — 56,885 (12,739 ) $ 44,146 Time charter service revenues, excluding amortization 28,049 7,657 — 35,706 (7,657 ) 28,049 Amortization of above market contract intangibles (1,800 ) — — (1,800 ) (1,800 ) Amortization of deferred revenue for modifications & drydock — 1,176 — 1,176 (1,176 ) — Other revenue (2) 1,100 — — 1,100 — 1,100 Total revenues (3) $ 71,495 21,572 — 93,067 (21,572 ) $ 71,495 (1) Eliminations reverse the proportional amounts of revenue for Joint venture FSRUs to reflect the consolidated revenues included in the consolidated income statement. The Partnership's share of the Joint venture FSRUs revenues is included in Equity in earnings (loss) of joint ventures on the consolidated income statement. (2) Other revenue consists of insurance proceeds received, subsequent to June 30, 2018, for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs, subject to repayment to the extent recovered from insurance proceeds. The amount is expected to be refunded to Höegh LNG during the third quarter of 2018. Refer to notes 4 and 14. (3) Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of total revenues and is disclosed separately in the consolidated statement of cash flows. |
Schedule Of Consolidated Receivables [Table Text Block] | The following table summarizes the allocation of consolidated receivables between lease and service components: As of June 30, January 1, (in thousands of U.S. dollars) 2018 2018 Trade receivable for lease $ 5,408 $ 5,572 Trade receivable for time charter services 3,252 6,277 Total trade receivable and amounts due from affiliates $ 8,660 $ 11,849 |
Contract with Customer, Asset and Liability [Table Text Block] | The following table summarizes the consolidated contract assets, contract liabilities and refund liabilities to customers: Lease related Services related Contract Contract Contract Refund liability (in thousands of U.S. dollars) asset liability asset to charters Balance January 1, 2018 $ 8,326 (8,326 ) 303 $ (6,187 ) Additions — — 119 (496 ) Reduction for receivables recorded (397 ) — (303 ) — Reduction for revenue recognized — 397 — — Reduction for revenue recognized from previous years — — — 775 Repayments of refund liabilities to charterer — — — 2,990 Balance June 30, 2018 7,929 (7,929 ) 119 (2,918 ) Netting of contract asset and contract liability (7,929 ) 7,929 — — Balance reflected in balance sheet June 30, 2018 $ — — 119 $ (2,918 ) |
Financial income (expense) (Tab
Financial income (expense) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | The components of financial income (expense) are as follows: Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2018 2017 2018 2017 Interest income $ 174 113 361 $ 243 Interest expense: Interest expense (6,742 ) (7,301 ) (13,382 ) (14,561 ) Commitment fees — (241 ) (37 ) (504 ) Amortization of debt issuance cost and fair value of debt assumed (176 ) (210 ) (363 ) (423 ) Total interest expense (6,918 ) (7,752 ) (13,782 ) (15,488 ) Gain (loss) on derivative instruments 544 247 1,175 910 Other items, net: Foreign exchange gain (loss) (198 ) (811 ) (140 ) (944 ) Bank charges, fees and other (37 ) (29 ) (72 ) (52 ) Withholding tax on interest expense and other (645 ) (582 ) (1,274 ) (1,228 ) Total other items, net (880 ) (1,422 ) (1,486 ) (2,224 ) Total financial income (expense), net $ (7,080 ) (8,814 ) (13,732 ) $ (16,559 ) |
Advances to joint ventures (Tab
Advances to joint ventures (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Investments in and Advances to Affiliates [Table Text Block] | As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Current portion of advances to joint ventures $ — $ — Long-term advances to joint ventures 3,397 3,263 Advances/shareholder loans to joint ventures $ 3,397 $ 3,263 |
Long-term debt (Tables)
Long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | As June December (in thousands of U.S. dollars) 2018 2017 Lampung facility: Export credit tranche $ 116,539 $ 123,982 FSRU tranche 29,076 31,164 Gallant facility: Commercial tranche 116,003 120,743 Export credit tranche 31,167 33,000 Grace facility: Commercial tranche 140,938 146,063 Export credit tranche 29,250 30,750 Outstanding principal 462,973 485,702 Lampung facility unamortized debt issuance cost (6,635 ) (7,494 ) Gallant facility unamortized fair value of debt assumed 382 552 Grace facility unamortized fair value of debt assumed 1,217 1,543 Total debt 457,937 480,303 Less: Current portion of long-term debt (45,458 ) (45,458 ) Long-term debt $ 412,479 $ 434,845 |
Investments in joint ventures (
Investments in joint ventures (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments [Table Text Block] | As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Accumulated losses of joint ventures $ 6,265 $ 20,746 |
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% interest in each of SRV Joint Gas Ltd. (owner of the Neptune GDF Suez Cape Ann Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2018 2017 2018 2017 Time charter revenues $ 21,152 20,449 43,143 $ 42,297 Total revenues 21,152 20,449 43,143 42,297 Operating expenses (5,417 ) (3,967 ) (10,364 ) (9,205 ) Depreciation and amortization (4,952 ) (5,106 ) (9,907 ) (10,142 ) Operating income 10,783 11,376 22,872 22,950 Unrealized gain (loss) on derivative instruments 5,933 (1,570 ) 18,963 3,422 Other financial expense, net (6,648 ) (6,858 ) (13,181 ) (13,962 ) Net income (loss) $ 10,068 2,948 28,654 $ 12,410 Share of joint ventures owned 50 % 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations 5,034 1,474 14,327 6,205 Eliminations 77 77 154 155 Equity in earnings (losses) of joint ventures $ 5,111 1,551 14,481 $ 6,360 As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Cash and cash equivalents $ 5,008 $ 8,100 Restricted cash 15,370 8,520 Other current assets 673 2,012 Total current assets 21,051 18,632 Restricted cash 25,323 25,208 Vessels, net of accumulated depreciation 538,921 547,993 Deferred charges 861 — Total long-term assets 565,105 573,201 Current portion of long-term debt 25,789 25,003 Amounts and loans due to owners and affiliates 286 314 Derivative financial instruments 10,833 10,649 Refund liabilities 26,089 — Other current liabilities 10,315 37,725 Total current liabilities 73,312 73,691 Long-term debt 416,385 429,307 Loans due to owners and affiliates 6,793 6,526 Derivative financial liabilities 48,937 68,085 Contract liabilities for deferred revenue 36,855 39,006 Total long-term liabilities 508,970 542,924 Net liabilities $ 3,874 $ (24,782 ) Share of joint ventures owned 50 % 50 % Share of joint ventures net liabilities before eliminations 1,937 (12,391 ) Eliminations (8,202 ) (8,355 ) Accumulated losses of joint ventures $ (6,265 ) $ (20,746 ) |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Related Party Transactions [Table Text Block] | Amounts due from affiliates As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Amounts due from affiliates $ 4,235 $ 4,286 Amounts due to owners and affiliates As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Amounts due to owners and affiliates $ 559 $ 1,417 Revolving credit facility due to owners and affiliates: As of June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Revolving credit facility due to owners and affiliates $ 45,292 $ 51,832 |
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 six months ended June 30, 2018 and 2017 or capitalized in the consolidated balance sheets as of June 30, 2018 and December 31, 2017 are as follows: Three months ended Six months ended Statement of income: June 30, June 30, (in thousands of U.S. dollars) 2018 2017 2018 2017 Revenues Time charter revenue Höegh Gallant $ 12,320 11,232 23,145 $ 23,146 Operating expenses Vessel operating expenses (2) (4,612 ) (5,147 ) (9,674 ) (10,543 ) Hours, travel expense and overhead (3) and Board of Directors' fees (4) (710 ) (648 ) (1,719 ) (1,678 ) Interest income from joint ventures (5) 63 102 134 230 Interest expense and commitment fees to Höegh LNG (6) (843 ) (1,137 ) (1,641 ) (2,206 ) Total $ 6,218 4,402 10,245 $ 8,949 As of Balance sheet June 30, December 31, (in thousands of U.S. dollars) 2018 2017 Equity Cash contribution from Höegh LNG (7) $ — $ 2,075 Cash distribution to Höegh LNG (7) — (1,534 ) Issuance of units for Board of Directors' fees (4) 160 189 Other and contribution from owner (8) 163 632 Total $ 323 $ 1,362 1) Time charter revenue Höegh Gallant: Höegh Gallant 2) Vessel operating expenses: 3) Hours, travel expenses and overhead: 4) Board of Directors’ fees of $195 of 8,840 units were issued under the award for compensation of $160. Effective May 22, 2017 a total of 9,805 of $189 issued. 5) Interest income from joint ventures: 6) Interest expense and commitment fees to Höegh LNG and affiliates Höegh Gallant 7) Cash contribution from/ distribution to Höegh LNG: equity. 8) Other and contribution from owner: |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the financial instruments that are not accounted for at a fair value on a recurring basis. As of As of June 30, 2018 December 31, 2017 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 $ 20,980 20,980 22,679 $ 22,679 Restricted cash 1 19,362 19,362 20,602 20,602 Amounts due from affiliate 2 4,235 4,235 4,286 4,286 Derivative instruments 2 1,859 1,859 (3,889 ) (3,889 ) Other: Advances (shareholder loans) to joint ventures 2 3,397 3,446 3,263 3,596 Current amounts due to owners and affiliates 2 (559 ) (559 ) (1,417 ) (1,417 ) Lampung facility 2 (138,980 ) (152,429 ) (147,652 ) (162,597 ) Gallant facility 2 (147,552 ) (148,453 ) (154,295 ) (155,325 ) Grace facility 2 (171,405 ) (171,415 ) (178,356 ) (178,652 ) Revolving credit facility due to owners and affiliates 2 $ (45,292 ) (44,980 ) (51,832 ) $ (51,099 ) |
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 June 30, December 31, (in thousands of U.S. dollars) Indicator Grade 2018 2017 Trade receivable Payment activity Performing $ 4,425 $ 7,563 Amounts due from affiliate Payment activity Performing 4,235 4,286 Advances/ loans to joint ventures Payment activity Performing $ 3,397 $ 3,263 |
Risk management and concentra38
Risk management and concentrations of risk (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives [Table Text Block] | Interest rate swaps are utilized to exchange a receipt of floating interest for a payment of fixed interest to reduce the exposure to interest rate variability on its outstanding floating-rate debt. As of June 30, 2018, 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. As of June 30, 2018, the following interest rate swap agreements were outstanding: Interest Fair Value carrying Fixed interest rate Notional amount rate (in thousands of U.S. dollars) index amount assets Term (1) LIBOR-based debt Lampung interest rate swaps (2) LIBOR $ 145,615 106 Sept 2026 2.8% Gallant interest rate swaps (2) LIBOR 119,438 918 Sept 2019 1.9% Grace interest rate swaps (2) LIBOR $ 130,688 835 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 balance sheets. Current Long-term Current Long-term assets: assets: liabilities: liabilities: derivative derivative derivative derivative (in thousands of U.S. dollars) instruments instruments instruments instruments As of June 30, 2018 Interest rate swaps $ 973 $ 1,217 $ (331 ) $ — As of December 31, 2017 Interest rate swaps $ — $ 228 $ (2,015 ) $ (2,102 ) |
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 six months ended June 30, 2018 and 2017. Three months ended Six months ended June 30, June 30, (in thousands of U.S. dollars) 2018 2017 2018 2017 Interest rate swaps: Ineffective portion of cash flow hedge $ (21 ) (354 ) 22 $ (350 ) Amortization of amount excluded from hedge effectiveness 779 815 1,581 1,688 Reclassification from accumulated other comprehensive income (214 ) (214 ) (428 ) (428 ) Unrealized gains (losses) 544 247 1,175 910 Realized gains (losses) — — — — Total gains (losses) on derivative instruments $ 544 247 1,175 $ 910 |
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 and other comprehensive income is as follows for the periods ended and as of June 30, 2018 and 2017. Cash Flow Hedge (in thousands of U.S. dollars) Before tax gains (losses) Tax benefit (expense) Net of tax Accumulated OCI Balance as of December 31, 2017 $ (3,612 ) 864 (2,748 ) $ (2,748 ) Effective portion of unrealized loss on cash flow hedge 4,144 — 4,144 4,144 Reclassification of amortization of cash flow hedge to earnings 428 (165 ) 263 263 Other comprehensive income for period 4,572 (165 ) 4,407 4,407 Balance as of June 30, 2018 $ 960 699 1,659 $ 1,659 Cash Flow Hedge (in thousands of U.S. dollars) Before tax gains (losses) Tax benefit (expense) Net of tax Accumulated OCI Balance as of December 31, 2016 $ (6,947 ) 1,211 (5,736 ) $ (5,736 ) Effective portion of unrealized loss on cash flow hedge (317 ) — (317 ) (317 ) Reclassification of amortization of cash flow hedge to earnings 428 (175 ) 253 253 Other comprehensive income for period 111 (175 ) (64 ) (64 ) Balance as of June 30, 2017 $ (6,836 ) 1,036 (5,800 ) $ (5,800 ) |
Supplemental cash flow inform39
Supplemental cash flow information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Three months ended Six months ended (in thousands of U.S. dollars) 2018 2017 2018 2017 Supplemental disclosure of non-cash investing activities Non-cash expenditures for vessel and other equipment $ 100 — 100 $ — Non-cash expenditures on direct finance lease 200 — 200 — Supplemental disclosure of non-cash financing activities Non-cash proceeds from common units 202 — 202 — Non-cash proceeds from preferred units $ 380 — 380 $ — |
Issuance of common units and 40
Issuance of common units and Series A Preferred Units (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule Of Proceeds Received After Issuance Of Common Units And Preferred Units [Table Text Block] | As of June 30, 2018 (in thousands of U.S. dollars) Common units Series A Preferred Units Total Gross proceeds for units issued $ 3,124 20,360 $ 23,484 Less: Commissions (40 ) (364 ) (404 ) Net proceeds for units issued $ 3,084 19,996 $ 23,080 |
Common, subordinated and pref41
Common, subordinated and preferred units (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common, Subordinated and Preferred Units [Table Text Block] | The following table shows the movements in the number of common units, subordinated units and preferred units from December 31, 2016 until June 30, 2018: (in units) Common Units Public Common Units Höegh LNG Subordinated Units Höegh LNG 8.75% Series A Preferred Units December 31, 2016 17,639,039 2,116,060 13,156,060 — May 22, 2017; Awards to non-employee directors as compensation for directors' fees 9,805 — — — October 5, 2017; Series A preferred units offering — — — 4,600,000 December 31, 2017 17,648,844 2,116,060 13,156,060 4,600,000 Phantom units issued 8,138 — — — ATM program 171,375 — — 788,026 Units issued to staff at Höegh LNG 14,622 (14,622 ) — — June 6, 2018; Awards to non-employee directors as compensation for directors' fees 8,840 — — — June 30, 2018 17,851,819 2,101,438 13,156,060 5,388,026 |
Earning per unit and cash dis42
Earning per unit and cash distributions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Unit [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculation of basic and diluted earnings per unit are presented below: Three months ended June 30, Six months ended June 30, (in thousands of U.S. dollars, except per unit numbers) 2018 2017 2018 2017 Net income $ 19,944 $ 12,212 41,630 $ 28,401 Adjustment for: Non-controlling interest — 2,812 — 5,556 Preferred unitholders' interest in net income 3,003 — 5,663 — Limited partners' interest in net income 16,941 9,400 35,967 22,845 Less: Dividends paid or to be paid (1) (14,988 ) (14,441 ) (29,942 ) (28,878 ) Under (over) distributed earnings 1,953 (5,041 ) 6,025 (6,033 ) Under (over) distributed earnings attributable to: Common units public 1,053 (2,702 ) 3,253 (3,233 ) Common units Höegh LNG 124 (324 ) 383 (388 ) Subordinated units Höegh LNG 776 (2,015 ) 2,390 (2,412 ) 1,953 (5,041 ) 6,026 (6,033 ) Basic weighted average units outstanding (in thousands) Common units public 17,827 17,643 17,790 17,641 Common units Höegh LNG 2,101 2,116 2,102 2,116 Subordinated units Höegh LNG 13,156 13,156 13,156 13,156 Diluted weighted average units outstanding (in thousands) Common units public 17,839 17,654 17,804 17,651 Common units Höegh LNG 2,101 2,116 2,102 2,116 Subordinated units Höegh LNG 13,156 13,156 13,156 13,156 Basic and diluted earnings per unit (2): Common unit public $ 0.50 $ 0.28 $ 1.07 $ 0.68 Common unit Höegh LNG (3) $ 0.53 $ 0.30 $ 1.11 $ 0.71 Subordinated unit Höegh LNG (3) $ 0.53 $ 0.30 $ 1.11 $ 0.71 (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 March 23, 2018, the Partnership granted 14,584 phantom units to the CEO/CFO of the Partnership. One-third of the phantom units vest as of November 30, 2019, 2020 and 2021, respectively. Effective June 3, 2016, the Partnership granted 21,500 phantom units to the CEO/CFO of the Partnership. One-third of the phantom units vest as of December 31, 2017, November 30, 2018 and November 30, 2019, respectively. 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 were the same. (3) Includes total amounts attributable to incentive distributions rights of $398 and $795 for the three and six months ended June 30, 2018, respectively, of which $55 and $109 for the three and six months ended June 30, 2018, respectively, were attributed to common units owned by Höegh LNG. Total amounts attributable to incentive distributions rights of $343 and $685 for the three and six months ended June 30, 2018, respectively, were attributed to subordinated units owned by Höegh LNG. For the three and six months ended June 30, 2017, total amounts attributable to incentive distributions rights of $285 and $570, of which $40 and 79 were attributed to common units owned by Höegh LNG and $246 and $491 were attributed to subordinated units owned by Höegh LNG. |
Description of business (Detail
Description of business (Details) | 6 Months Ended | |
Jun. 30, 2018 | ||
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 Hoegh Gallant | |
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 Hoegh Grace | |
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% of the ownership interests were acquired on January 3, 2017, and the remaining 49% of the ownership interests were acquired on December 1, 2017. |
Description of business (Deta44
Description of business (Details Textual) - USD ($) $ in Millions | Jan. 03, 2017 | Jan. 26, 2018 | Jun. 30, 2018 |
Condensed Financial Statements, Captions [Line Items] | |||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 50.00% | ||
Preferred Stock, Dividend Rate, Percentage | 8.75% | ||
Joint Ventures Ownership Percentage | 50.00% | ||
Maximum Offering Amount | $ 120 | ||
Hoegh LNG Holdings Ltd [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 51.00% | ||
Hoegh LNG Partners LP [Member] | Series A Preferred Stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
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% | ||
Mitsui O.S.K. Lines, Ltd. and Tokyo LNG Tanker Co. [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Hoegh LNG FSRU IV Ltd [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Non Cancellable Lease Expiration Term | 10 years | ||
Lease Expiration Term | 10 years | ||
Lease Initial Term | 20 years | ||
Hoegh LNG FSRU IV Ltd [Member] | Maximum [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Lease Expiration Term | 15 years | ||
Hoegh LNG FSRU IV Ltd [Member] | Minimum [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Lease Expiration Term | 10 years |
Significant accounting polici45
Significant accounting policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
FINANCING ACTIVITIES | ||||
Increase (decrease) in cash, cash equivalents and restricted cash | $ (8,420) | $ (315) | $ (2,885) | $ 322 |
Cash and cash equivalents | 22,679 | 18,915 | ||
Cash and cash equivalents | $ 20,980 | 15,452 | $ 20,980 | 15,452 |
Balance Prior to Adoption [Member] | ||||
OPERATING ACTIVITIES | ||||
Restricted cash | (3,078) | (3,844) | ||
INVESTING ACTIVITIES | ||||
Cash acquired in the purchase of the Höegh Grace entities | 0 | 3,774 | ||
FINANCING ACTIVITIES | ||||
Restricted cash | 78 | 78 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | (3,315) | (3,463) | ||
Cash and cash equivalents | 18,767 | 18,915 | ||
Cash and cash equivalents | 15,452 | 15,452 | ||
Adjustments Increase/(Decrease) [Member] | ||||
OPERATING ACTIVITIES | ||||
Restricted cash | 3,078 | 3,844 | ||
INVESTING ACTIVITIES | ||||
Cash acquired in the purchase of the Höegh Grace entities | 0 | 19 | ||
FINANCING ACTIVITIES | ||||
Restricted cash | (78) | (78) | ||
Increase (decrease) in cash, cash equivalents and restricted cash | 3,000 | 3,785 | ||
Cash and cash equivalents | 22,994 | 22,209 | ||
Cash and cash equivalents | 25,994 | 25,994 | ||
As Adjusted [Member] | ||||
OPERATING ACTIVITIES | ||||
Restricted cash | 0 | 0 | ||
INVESTING ACTIVITIES | ||||
Cash acquired in the purchase of the Höegh Grace entities | 0 | 3,793 | ||
FINANCING ACTIVITIES | ||||
Restricted cash | 0 | 0 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | (315) | 322 | ||
Cash and cash equivalents | 41,761 | 41,124 | ||
Cash and cash equivalents | $ 41,446 | $ 41,446 |
Significant accounting polici46
Significant accounting policies (Details Textual) - USD ($) $ in Millions | Dec. 01, 2017 | Jun. 30, 2018 | Dec. 31, 2017 |
Significant Accounting Policies [Line Items] | |||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | ||
SRV Joint Gas Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Advances to Affiliate | $ 2.7 | $ 2.6 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net | 3.3 | 10.7 | |
SRV Joint Gas Two Ltd [Member] | |||
Significant Accounting Policies [Line Items] | |||
Advances to Affiliate | 0.7 | 0.7 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net | $ 3 | $ 10 | |
PGN FSRU Lampung [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Hoegh Grace [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
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, Initi47
Formation transactions, Initial Public Offering and related party agreements (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Aug. 12, 2014 | Jan. 29, 2018 | Aug. 31, 2014 |
Formation Transactions and Initial Public Offering [Line Items] | |||
Limited Partnership Contribution On Promissory Note Receivables And Accrued Interest | $ 40 | ||
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 | ||
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 | ||
Proceeds from Issuance Initial Public Offering | $ 203.5 | ||
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 | $ 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 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||||||
Time charter revenues | $ 35,510 | $ 35,024 | $ 70,395 | $ 70,101 | ||||||
Other revenue | 1,100 | 0 | 1,100 | [1] | 0 | |||||
Total revenues | 36,610 | [2] | 35,024 | 71,495 | [2] | 70,101 | ||||
Operating expenses | (7,563) | (8,093) | (16,103) | (17,027) | ||||||
Construction contract expenses | 0 | (151) | 0 | (151) | ||||||
Equity in earnings (losses) of joint ventures | 5,111 | 1,551 | 14,481 | 6,360 | ||||||
Less: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Segment EBITDA | ||||||||||
Add: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Depreciation and amortization | (5,268) | (5,263) | (10,536) | (10,526) | ||||||
Operating income (loss) | 28,890 | 23,068 | 59,337 | 48,757 | ||||||
Gain (loss) on derivative instruments | 544 | 247 | 1,175 | 910 | ||||||
Other financial income (expense), net | (7,624) | (9,061) | (14,907) | (17,469) | ||||||
Income (loss) before tax | 21,810 | 14,254 | 45,605 | 32,198 | ||||||
Income tax benefit (expense) | (1,866) | (2,042) | (3,975) | (3,797) | ||||||
Net income (loss) | 19,944 | 12,212 | 41,630 | 28,401 | ||||||
Preferred unitholders' interest in net income | 3,003 | 0 | 5,663 | 0 | ||||||
Non-controlling interest in net income | 0 | 2,812 | 0 | 5,556 | ||||||
Limited partners' interest in net income (loss) | 16,941 | 9,400 | 35,967 | 22,845 | ||||||
Vessels, net of accumulated depreciation | 668,648 | 668,648 | $ 679,041 | |||||||
Net investment in direct financing lease | 284,962 | 284,962 | 286,626 | |||||||
Goodwill | 251 | 251 | 251 | |||||||
Advances to joint ventures | 3,397 | 3,397 | 3,263 | |||||||
Total assets | 1,040,087 | 1,040,087 | 1,058,959 | |||||||
Accumulated losses of joint ventures | (6,265) | (6,265) | (20,746) | |||||||
Expenditures for vessels & equipment &prepayments | 100 | [3] | 100 | [3] | 287 | |||||
Expenditures for drydocking | 0 | [3] | 0 | [3] | 0 | |||||
Principal repayment direct financing lease | 1,863 | 1,863 | 3,485 | |||||||
Amortization of above market contract | 905 | 906 | 1,800 | 1,801 | 3,631 | |||||
Noncontrolling Interest [Member] | ||||||||||
Amortization of above market contract | 0 | |||||||||
Majority held FSRUs [Member] | ||||||||||
Time charter revenues | 35,510 | 35,024 | 70,395 | 70,101 | ||||||
Other revenue | [4],[5] | 1,100 | 1,100 | |||||||
Total revenues | 36,610 | [2] | 35,024 | 71,495 | [2] | 70,101 | ||||
Operating expenses | (6,383) | (6,693) | (12,917) | (13,955) | ||||||
Construction contract expenses | (151) | 0 | (151) | |||||||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | ||||||
Less: Non-controlling interest in Segment EBITDA | (5,423) | (10,417) | ||||||||
Segment EBITDA | 30,227 | 22,757 | 58,578 | 45,578 | ||||||
Add: Non-controlling interest in Segment EBITDA | 5,423 | 10,417 | ||||||||
Depreciation and amortization | (5,268) | (5,263) | (10,536) | (10,526) | ||||||
Operating income (loss) | 24,959 | 22,917 | 48,042 | 45,469 | ||||||
Gain (loss) on derivative instruments | 544 | 247 | 1,175 | 910 | ||||||
Other financial income (expense), net | (6,839) | (8,028) | (13,409) | (15,483) | ||||||
Income (loss) before tax | 18,664 | 15,136 | 35,808 | 30,896 | ||||||
Income tax benefit (expense) | (1,845) | (2,042) | (3,954) | (3,797) | ||||||
Net income (loss) | 16,819 | 13,094 | 31,854 | 27,099 | ||||||
Preferred unitholders' interest in net income | 0 | 0 | ||||||||
Non-controlling interest in net income | 2,812 | 5,556 | ||||||||
Limited partners' interest in net income (loss) | 16,819 | 10,282 | 31,854 | 21,543 | ||||||
Vessels, net of accumulated depreciation | 668,648 | 668,648 | 679,041 | |||||||
Net investment in direct financing lease | 284,962 | 284,962 | 286,626 | |||||||
Goodwill | 251 | 251 | 251 | |||||||
Advances to joint ventures | 0 | 0 | 0 | |||||||
Total assets | 1,025,047 | 1,025,047 | 1,041,517 | |||||||
Accumulated losses of joint ventures | 0 | 0 | 0 | |||||||
Expenditures for vessels & equipment &prepayments | 100 | 100 | 287 | |||||||
Expenditures for drydocking | 0 | 0 | 0 | |||||||
Principal repayment direct financing lease | 1,863 | 1,863 | 3,485 | |||||||
Amortization of above market contract | 905 | 1,800 | 3,631 | |||||||
Majority held FSRUs [Member] | Noncontrolling Interest [Member] | ||||||||||
Amortization of above market contract | (553) | |||||||||
Joint venture FSRUs [Member] | ||||||||||
Time charter revenues | 10,576 | 10,225 | 21,572 | 21,149 | ||||||
Other revenue | [4] | 0 | 0 | |||||||
Total revenues | 10,576 | [2] | 10,225 | 21,572 | [2] | 21,149 | ||||
Operating expenses | (2,709) | (1,984) | (5,182) | (4,603) | ||||||
Construction contract expenses | 0 | 0 | 0 | |||||||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | ||||||
Less: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Segment EBITDA | 7,867 | 8,241 | 16,390 | 16,546 | ||||||
Add: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Depreciation and amortization | (2,399) | (2,476) | (4,800) | (4,916) | ||||||
Operating income (loss) | 5,468 | 5,765 | 11,590 | 11,630 | ||||||
Gain (loss) on derivative instruments | 2,967 | (785) | 9,482 | 1,711 | ||||||
Other financial income (expense), net | (3,324) | (3,429) | (6,591) | (6,981) | ||||||
Income (loss) before tax | 5,111 | 1,551 | 14,481 | 6,360 | ||||||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | 5,111 | 1,551 | 14,481 | 6,360 | ||||||
Preferred unitholders' interest in net income | 0 | 0 | ||||||||
Non-controlling interest in net income | 0 | 0 | ||||||||
Limited partners' interest in net income (loss) | 5,111 | 1,551 | 14,481 | 6,360 | ||||||
Vessels, net of accumulated depreciation | 261,259 | 261,259 | 265,642 | |||||||
Net investment in direct financing lease | 0 | 0 | 0 | |||||||
Goodwill | 0 | 0 | 0 | |||||||
Advances to joint ventures | 0 | 0 | 0 | |||||||
Total assets | 284,876 | 284,876 | 287,562 | |||||||
Accumulated losses of joint ventures | 0 | 0 | 0 | |||||||
Expenditures for vessels & equipment &prepayments | 530 | 530 | 525 | |||||||
Expenditures for drydocking | 318 | 318 | 0 | |||||||
Principal repayment direct financing lease | 0 | 0 | 0 | |||||||
Amortization of above market contract | 0 | 0 | 0 | |||||||
Joint venture FSRUs [Member] | Noncontrolling Interest [Member] | ||||||||||
Amortization of above market contract | 0 | |||||||||
Other [Member] | ||||||||||
Time charter revenues | 0 | 0 | 0 | 0 | ||||||
Other revenue | [4] | 0 | 0 | |||||||
Total revenues | 0 | [2] | 0 | 0 | [2] | 0 | ||||
Operating expenses | (1,180) | (1,400) | (3,186) | (3,072) | ||||||
Construction contract expenses | 0 | 0 | 0 | |||||||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | ||||||
Less: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Segment EBITDA | (1,180) | (1,400) | (3,186) | (3,072) | ||||||
Add: Non-controlling interest in Segment EBITDA | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||||
Operating income (loss) | (1,180) | (1,400) | (3,186) | (3,072) | ||||||
Gain (loss) on derivative instruments | 0 | 0 | 0 | 0 | ||||||
Other financial income (expense), net | (785) | (1,033) | (1,498) | (1,986) | ||||||
Income (loss) before tax | (1,965) | (2,433) | (4,684) | (5,058) | ||||||
Income tax benefit (expense) | (21) | 0 | (21) | 0 | ||||||
Net income (loss) | (1,986) | (2,433) | (4,705) | (5,058) | ||||||
Preferred unitholders' interest in net income | 0 | 0 | ||||||||
Non-controlling interest in net income | 0 | 0 | ||||||||
Limited partners' interest in net income (loss) | (1,986) | (2,433) | (4,705) | (5,058) | ||||||
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 | 3,397 | 3,397 | 3,263 | |||||||
Total assets | 15,040 | 15,040 | 17,442 | |||||||
Accumulated losses of joint ventures | 50 | 50 | 50 | |||||||
Expenditures for vessels & equipment &prepayments | 0 | 0 | 0 | |||||||
Expenditures for drydocking | 0 | 0 | 0 | |||||||
Principal repayment direct financing lease | 0 | 0 | 0 | |||||||
Amortization of above market contract | 0 | 0 | 0 | |||||||
Other [Member] | Noncontrolling Interest [Member] | ||||||||||
Amortization of above market contract | 0 | |||||||||
Total Segments reporting [Member] | ||||||||||
Time charter revenues | 46,086 | 45,249 | 91,967 | 91,250 | ||||||
Other revenue | [4] | 1,100 | 1,100 | |||||||
Total revenues | 47,186 | [2] | 45,249 | 93,067 | [2] | 91,250 | ||||
Operating expenses | (10,272) | (10,077) | (21,285) | (21,630) | ||||||
Construction contract expenses | (151) | 0 | (151) | |||||||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | ||||||
Less: Non-controlling interest in Segment EBITDA | (5,423) | (10,417) | ||||||||
Segment EBITDA | 36,914 | 29,598 | 71,782 | 59,052 | ||||||
Add: Non-controlling interest in Segment EBITDA | 5,423 | 10,417 | ||||||||
Depreciation and amortization | (7,667) | (7,739) | (15,336) | (15,442) | ||||||
Operating income (loss) | 29,247 | 27,282 | 56,446 | 54,027 | ||||||
Gain (loss) on derivative instruments | 3,511 | (538) | 10,657 | 2,621 | ||||||
Other financial income (expense), net | (10,948) | (12,490) | (21,498) | (24,450) | ||||||
Income (loss) before tax | 21,810 | 14,254 | 45,605 | 32,198 | ||||||
Income tax benefit (expense) | (1,866) | (2,042) | (3,975) | (3,797) | ||||||
Net income (loss) | 19,944 | 12,212 | 41,630 | 28,401 | ||||||
Preferred unitholders' interest in net income | 0 | 0 | ||||||||
Non-controlling interest in net income | 2,812 | 5,556 | ||||||||
Limited partners' interest in net income (loss) | 19,944 | 9,400 | 41,630 | 22,845 | ||||||
Vessels, net of accumulated depreciation | 929,907 | 929,907 | 944,683 | |||||||
Net investment in direct financing lease | 284,962 | 284,962 | 286,626 | |||||||
Goodwill | 251 | 251 | 251 | |||||||
Advances to joint ventures | 3,397 | 3,397 | 3,263 | |||||||
Total assets | 1,324,963 | 1,324,963 | 1,346,521 | |||||||
Accumulated losses of joint ventures | 50 | 50 | 50 | |||||||
Expenditures for vessels & equipment &prepayments | 630 | 630 | 811 | |||||||
Expenditures for drydocking | 318 | 318 | 0 | |||||||
Principal repayment direct financing lease | 1,863 | 1,863 | 3,485 | |||||||
Amortization of above market contract | 905 | 1,800 | 3,631 | |||||||
Total Segments reporting [Member] | Noncontrolling Interest [Member] | ||||||||||
Amortization of above market contract | (553) | |||||||||
Eliminations [Member] | ||||||||||
Time charter revenues | (10,576) | [6] | (10,225) | [1] | (21,572) | [6] | (21,149) | [1] | ||
Other revenue | ||||||||||
Total revenues | [2] | (10,576) | (21,572) | |||||||
Operating expenses | 2,709 | [6] | 1,984 | [1] | 5,182 | [6] | 4,603 | [1] | ||
Construction contract expenses | ||||||||||
Equity in earnings (losses) of joint ventures | 5,111 | [6] | 1,551 | [1] | 14,481 | [6] | 6,360 | [6] | ||
Less: Non-controlling interest in Segment EBITDA | [7] | 5,423 | 10,417 | [6] | ||||||
Segment EBITDA | ||||||||||
Add: Non-controlling interest in Segment EBITDA | [7] | (5,423) | (10,417) | [6] | ||||||
Depreciation and amortization | 2,399 | [6] | 2,476 | [1] | 4,800 | [6] | 4,916 | [6] | ||
Operating income (loss) | ||||||||||
Gain (loss) on derivative instruments | (2,967) | [6] | 785 | [1] | (9,482) | [6] | (1,711) | [1] | ||
Other financial income (expense), net | 3,324 | [6] | 3,429 | [1] | 6,591 | [6] | 6,981 | [6] | ||
Income (loss) before tax | 0 | 0 | 0 | 0 | ||||||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | 0 | 0 | 0 | 0 | ||||||
Preferred unitholders' interest in net income | [8] | 3,003 | 5,663 | |||||||
Non-controlling interest in net income | ||||||||||
Limited partners' interest in net income (loss) | (3,003) | [8] | $ 0 | (5,663) | [8] | $ 0 | ||||
Vessels, net of accumulated depreciation | [9] | (261,259) | (261,259) | (265,642) | ||||||
Net investment in direct financing lease | 0 | [9] | 0 | [9] | 0 | |||||
Goodwill | 0 | 0 | 0 | |||||||
Advances to joint ventures | 0 | 0 | 0 | |||||||
Total assets | [9] | (284,876) | (284,876) | (287,562) | ||||||
Accumulated losses of joint ventures | [9] | (6,315) | (6,315) | (20,796) | ||||||
Expenditures for vessels & equipment &prepayments | [3] | (530) | (530) | (524) | ||||||
Expenditures for drydocking | [3] | (318) | (318) | 0 | ||||||
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 consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. | |||||||||
[2] | Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of total revenues and is disclosed separately in the consolidated statement of cash flows. | |||||||||
[3] | Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. | |||||||||
[4] | Other revenue consists of insurance proceeds received, subsequent to June 30, 2018, for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs, subject to repayment to the extent recovered from insurance proceeds. The amount is expected to be refunded to Höegh LNG during the third quarter of 2018. Refer to notes 4 and 14. | |||||||||
[5] | Other revenue consists of insurance proceeds received, subsequent to June 30, 2018, for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs, subject to repayment to the extent recovered from insurance proceeds. The amount is expected to be refunded to Höegh LNG during the third quarter of 2018. Refer to notes 5 and 14. | |||||||||
[6] | 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. | |||||||||
[7] | 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. | |||||||||
[8] | Allocates the preferred unitholders’ interest in net income to the preferred unitholders. | |||||||||
[9] | 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. |
Segment information (Details Te
Segment information (Details Textual) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 01, 2017 | Jan. 02, 2017 | Jan. 01, 2017 |
Hoegh Grace entities [Member] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 49.00% | 51.00% | 51.00% |
Hoegh Grace entities [Member] | Consolidated Entities [Member] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Revolving Credit Facility [Member] | ||||
Long-term Line of Credit | $ 85 | |||
GDF Suez Neptune and the GDF Suez Cape Ann [Member] | ||||
Equity Method Investment, Ownership Percentage | 50.00% |
Time charter revenues and rel50
Time charter revenues and related contract balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||||
Lease revenues, excluding amortization | $ 22,467 | $ 44,146 | ||||||
Time charter service revenues, excluding amortization | 13,948 | 28,049 | ||||||
Amortization of above market contract intangibles | (905) | $ (906) | (1,800) | $ (1,801) | $ (3,631) | |||
Amortization of deferred revenue for modifications & drydock | 0 | 0 | ||||||
Other revenue | 1,100 | 0 | 1,100 | [1] | 0 | |||
Total revenues | 36,610 | [2] | 35,024 | 71,495 | [2] | 70,101 | ||
Majority held FSRUs [Member] | ||||||||
Lease revenues, excluding amortization | 22,467 | 44,146 | ||||||
Time charter service revenues, excluding amortization | 13,948 | 28,049 | ||||||
Amortization of above market contract intangibles | (905) | (1,800) | (3,631) | |||||
Amortization of deferred revenue for modifications & drydock | 0 | 0 | ||||||
Other revenue | [3],[4] | 1,100 | 1,100 | |||||
Total revenues | 36,610 | [2] | 35,024 | 71,495 | [2] | 70,101 | ||
Joint venture FSRUs [Member] | ||||||||
Lease revenues, excluding amortization | 6,405 | 12,739 | ||||||
Time charter service revenues, excluding amortization | 3,598 | 7,657 | ||||||
Amortization of above market contract intangibles | 0 | 0 | 0 | |||||
Amortization of deferred revenue for modifications & drydock | 573 | 1,176 | ||||||
Other revenue | [3] | 0 | 0 | |||||
Total revenues | 10,576 | [2] | 10,225 | 21,572 | [2] | 21,149 | ||
Other [Member] | ||||||||
Lease revenues, excluding amortization | 0 | 0 | ||||||
Time charter service revenues, excluding amortization | 0 | 0 | ||||||
Amortization of above market contract intangibles | 0 | 0 | 0 | |||||
Amortization of deferred revenue for modifications & drydock | 0 | 0 | ||||||
Other revenue | [3] | 0 | 0 | |||||
Total revenues | 0 | [2] | 0 | 0 | [2] | 0 | ||
Total Segments reporting [Member] | ||||||||
Lease revenues, excluding amortization | 28,872 | 56,885 | ||||||
Time charter service revenues, excluding amortization | 17,546 | 35,706 | ||||||
Amortization of above market contract intangibles | (905) | (1,800) | (3,631) | |||||
Amortization of deferred revenue for modifications & drydock | 573 | 1,176 | ||||||
Other revenue | [3] | 1,100 | 1,100 | |||||
Total revenues | 47,186 | [2] | $ 45,249 | 93,067 | [2] | $ 91,250 | ||
Eliminations [Member] | ||||||||
Lease revenues, excluding amortization | [5] | (6,405) | (12,739) | |||||
Time charter service revenues, excluding amortization | (3,598) | (7,657) | [5] | |||||
Amortization of above market contract intangibles | 0 | $ 0 | ||||||
Amortization of deferred revenue for modifications & drydock | (573) | [5] | (1,176) | |||||
Other revenue | ||||||||
Total revenues | [2] | $ (10,576) | $ (21,572) | |||||
[1] | Eliminations reverse each of the income statement line items of the proportional consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. | |||||||
[2] | Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of total revenues and is disclosed separately in the consolidated statement of cash flows. | |||||||
[3] | Other revenue consists of insurance proceeds received, subsequent to June 30, 2018, for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs, subject to repayment to the extent recovered from insurance proceeds. The amount is expected to be refunded to Höegh LNG during the third quarter of 2018. Refer to notes 4 and 14. | |||||||
[4] | Other revenue consists of insurance proceeds received, subsequent to June 30, 2018, for claims related to repairs under the Mooring warranty. The Partnership was indemnified by Höegh LNG for the cost of the repairs, subject to repayment to the extent recovered from insurance proceeds. The amount is expected to be refunded to Höegh LNG during the third quarter of 2018. Refer to notes 5 and 14. | |||||||
[5] | Eliminations reverse the proportional amounts of revenue for Joint venture FSRUs to reflect the consolidated revenues included in the consolidated income statement. The Partnership's share of the Joint venture FSRUs revenues is included in Equity in earnings (loss) of joint ventures on the consolidated income statement. |
Time charter revenues and rel51
Time charter revenues and related contract balances (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 |
Trade receivable for lease | $ 5,408 | $ 5,572 |
Trade receivable for time charter services | 3,252 | 6,277 |
Total trade receivable and amounts due from affiliates | $ 8,660 | $ 11,849 |
Time charter revenues and rel52
Time charter revenues and related contract balances (Details 2) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Lease [Member] | |
Balance January 1, 2018 | $ 8,326 |
Additions | 0 |
Reduction for receivables recorded | (397) |
Reduction for revenue recognized from previous years | 0 |
Balance June 30, 2018 | 7,929 |
Netting of contract asset and contract liability | (7,929) |
Balance January 1, 2018 | (8,326) |
Additions | 0 |
Reduction for revenue recognized | 397 |
Reduction for revenue recognized from previous years | 0 |
Balance June 30, 2018 | (7,929) |
Netting of contract asset and contract liability | 7,929 |
Balance reflected in balance sheet June 30, 2018 | 0 |
Balance reflected in balance sheet June 30, 2018 | 0 |
Services [Member] | |
Balance January 1, 2018 | 303 |
Additions | 119 |
Reduction for receivables recorded | (303) |
Reduction for revenue recognized from previous years | 0 |
Balance June 30, 2018 | 119 |
Netting of contract asset and contract liability | 0 |
Balance June 30, 2018 | 0 |
Netting of contract asset and contract liability | 119 |
Balance reflected in balance sheet June 30, 2018 | 119 |
Balance January 1, 2018 | (6,187) |
Additions | (496) |
Reduction for revenue recognized from previous years | 775 |
Repayments of refund liabilities to charterer | 2,990 |
Balance June 30, 2018 | (2,918) |
Balance reflected in balance sheet June 30, 2018 | $ (6,187) |
Time charter revenues and rel53
Time charter revenues and related contract balances (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Interest Income Recognized Finance Component Contract Asset Liability Lease Component | $ 71 | $ 143 |
Time Charter Services [Member] | ||
Reduction for revenue recognized from previous years | 775 | |
Contract with Customer Repayments of Refund Liabilities to Charterer | $ 2,990 |
Financial income (expense) (Det
Financial income (expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income | $ 174 | $ 113 | $ 361 | $ 243 |
Interest expense: | ||||
Interest expense | (6,742) | (7,301) | (13,382) | (14,561) |
Commitment fees | 0 | (241) | (37) | (504) |
Amortization of debt issuance cost and fair value of debt assumed | (176) | (210) | (363) | (423) |
Total interest expense | (6,918) | (7,752) | (13,782) | (15,488) |
Gain (loss) on derivative instruments | 544 | 247 | 1,175 | 910 |
Other items, net: | ||||
Foreign exchange gain (loss) | (198) | (811) | (140) | (944) |
Bank charges, fees and other | (37) | (29) | (72) | (52) |
Withholding tax on interest expense and other | (645) | (582) | (1,274) | (1,228) |
Total other items, net | (880) | (1,422) | (1,486) | (2,224) |
Total financial income (expense), net | $ (7,080) | $ (8,814) | $ (13,732) | $ (16,559) |
Income tax (Details Textual)
Income tax (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Noncash Income Tax Expense | $ 214 | $ 432 | $ 412 | $ 432 |
Income Tax Expense (Benefit) | 1,866 | 2,042 | 3,975 | 3,797 |
Utilization Of Tax Loss Carryforwards | $ 407 | $ 65 | 786 | 224 |
Increase Long Term Income Tax Payable | $ 786 | $ 224 |
Advances to joint ventures (Det
Advances to joint ventures (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Advances to Joint Ventures [Line Items] | ||
Current portion of advances to joint ventures | $ 0 | $ 0 |
Long-term advances to joint ventures | 3,397 | 3,263 |
Advances/shareholder loans to joint ventures | $ 3,397 | $ 3,263 |
Advances to joint ventures (D57
Advances to joint ventures (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 3,397 | $ 3,263 |
SRV Joint Gas Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | 2,700 | 2,600 |
SRV Joint Gas Two Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 700 | $ 700 |
Long-term debt (Details)
Long-term debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Outstanding principal | $ 462,973 | $ 485,702 |
Total debt | 457,937 | 480,303 |
Less: Current portion of long-term debt | (45,458) | (45,458) |
Long-term debt | 412,479 | 434,845 |
Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Lampung facility unamortized debt issuance cost | (6,635) | (7,494) |
Total debt | 138,980 | 147,652 |
Gallant facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Unamortized Premium | 382 | 552 |
Total debt | 147,552 | 154,295 |
Grace facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Unamortized Premium | 1,217 | 1,543 |
Total debt | 171,405 | 178,356 |
Export Credit Tranche [Member] | Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 116,539 | 123,982 |
Export Credit Tranche [Member] | Gallant facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 31,167 | 33,000 |
Export Credit Tranche [Member] | Grace facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 29,250 | 30,750 |
FSRU tranche [Member] | Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 29,076 | 31,164 |
Commercial tranche [Member] | Gallant facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 116,003 | 120,743 |
Commercial tranche [Member] | Grace facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 140,938 | $ 146,063 |
Long-term debt (Details Textual
Long-term debt (Details Textual) | 6 Months Ended |
Jun. 30, 2018 | |
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 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 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 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 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 Current assets greater than current liabilities as defined in the agreements, and 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 | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Accumulated losses of joint ventures | $ 6,265 | $ 20,746 |
Investments in joint ventures61
Investments in joint ventures (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Time charter revenues | $ 35,510 | $ 35,024 | $ 70,395 | $ 70,101 | ||||
Total revenues | 36,610 | [1] | 35,024 | 71,495 | [1] | 70,101 | ||
Operating expenses | (7,563) | (8,093) | (16,103) | (17,027) | ||||
Depreciation and amortization | (5,268) | (5,263) | (10,536) | (10,526) | ||||
Operating income | 28,890 | 23,068 | 59,337 | 48,757 | ||||
Unrealized gain (loss) on derivative instruments | 544 | 247 | 1,175 | 910 | ||||
Net income (loss) | 19,944 | 12,212 | 41,630 | 28,401 | ||||
Equity in earnings (losses) of joint ventures | 5,111 | 1,551 | 14,481 | 6,360 | ||||
Cash and cash equivalents | 20,980 | 15,452 | 20,980 | 15,452 | $ 22,679 | $ 18,915 | ||
Restricted cash | 5,958 | 11,918 | 5,958 | 11,918 | 6,962 | 8,055 | ||
Total current assets | 43,337 | 43,337 | 46,426 | |||||
Restricted cash | 13,404 | 14,076 | 13,404 | 14,076 | 13,640 | $ 14,154 | ||
Vessels, net of accumulated depreciation | 668,648 | 668,648 | 679,041 | |||||
Total long-term assets | 996,750 | 996,750 | 1,012,533 | |||||
Current portion of long-term debt | 45,458 | 45,458 | 45,458 | |||||
Derivative financial liabilities | 331 | 331 | 2,015 | |||||
Refund liabilities | 26,089 | 0 | 26,089 | 0 | ||||
Total current liabilities | 57,020 | 57,020 | 63,824 | |||||
Long-term debt | 412,479 | 412,479 | 434,845 | |||||
Derivative financial liabilities | 0 | 0 | 2,102 | |||||
Contract liabilities for deferred revenue | 36,855 | 39,006 | 36,855 | 39,006 | ||||
Total long-term liabilities | 474,898 | 474,898 | 520,476 | |||||
Net liabilities | 531,918 | 531,918 | 584,300 | |||||
Accumulated losses of joint ventures | (6,265) | (6,265) | (20,746) | |||||
Srv Joint Gas Limited And Srv Joint Gas Two Limited [Member] | ||||||||
Time charter revenues | 21,152 | 20,449 | 43,143 | 42,297 | ||||
Total revenues | 21,152 | 20,449 | 43,143 | 42,297 | ||||
Operating expenses | (5,417) | (3,967) | (10,364) | (9,205) | ||||
Depreciation and amortization | (4,952) | (5,106) | (9,907) | (10,142) | ||||
Operating income | 10,783 | 11,376 | 22,872 | 22,950 | ||||
Unrealized gain (loss) on derivative instruments | 5,933 | (1,570) | 18,963 | 3,422 | ||||
Other financial expense, net | (6,648) | (6,858) | (13,181) | (13,962) | ||||
Net income (loss) | $ 10,068 | $ 2,948 | $ 28,654 | $ 12,410 | ||||
Share of joint ventures owned | 50.00% | 50.00% | 50.00% | 50.00% | ||||
Share of joint ventures net income (loss) before eliminations | $ 5,034 | $ 1,474 | $ 14,327 | $ 6,205 | ||||
Eliminations | 77 | 77 | 154 | 155 | ||||
Equity in earnings (losses) of joint ventures | 5,111 | $ 1,551 | 14,481 | $ 6,360 | ||||
Cash and cash equivalents | 5,008 | 5,008 | 8,100 | |||||
Restricted cash | 15,370 | 15,370 | 8,520 | |||||
Other current assets | 673 | 673 | 2,012 | |||||
Total current assets | 21,051 | 21,051 | 18,632 | |||||
Restricted cash | 25,323 | 25,323 | 25,208 | |||||
Vessels, net of accumulated depreciation | 538,921 | 538,921 | 547,993 | |||||
Deferred charges | 861 | 861 | 0 | |||||
Total long-term assets | 565,105 | 565,105 | 573,201 | |||||
Current portion of long-term debt | 25,789 | 25,789 | 25,003 | |||||
Amounts and loans due to owners and affiliates | 286 | 286 | 314 | |||||
Derivative financial liabilities | 10,833 | 10,833 | 10,649 | |||||
Other current liabilities | 10,315 | 10,315 | 37,725 | |||||
Total current liabilities | 73,312 | 73,312 | 73,691 | |||||
Long-term debt | 416,385 | 416,385 | 429,307 | |||||
Loans due to owners and affiliates | 6,793 | 6,793 | 6,526 | |||||
Derivative financial liabilities | 48,937 | 48,937 | 68,085 | |||||
Total long-term liabilities | 508,970 | 508,970 | 542,924 | |||||
Net liabilities | 3,874 | 3,874 | (24,782) | |||||
Share of joint ventures net liabilities before eliminations | 1,937 | 1,937 | (12,391) | |||||
Eliminations | (8,202) | (8,202) | (8,355) | |||||
Accumulated losses of joint ventures | $ (6,265) | $ (6,265) | $ (20,746) | |||||
[1] | Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of total revenues and is disclosed separately in the consolidated statement of cash flows. |
Investments in joint ventures62
Investments in joint ventures (Details Textual) | Jun. 30, 2018 |
SRV Joint Gas Ltd [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
SRV Joint Gas Two Ltd [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Revenues | |||||
Time charter revenue Höegh Gallant | $ 35,510 | $ 35,024 | $ 70,395 | $ 70,101 | |
Operating expenses | |||||
Vessel operating expenses | (5,462) | (5,628) | (11,215) | (11,805) | |
Interest income from joint ventures | 174 | 113 | 361 | 243 | |
Interest expense and commitment fees to Hoegh LNG | (6,918) | (7,752) | (13,782) | (15,488) | |
Total | 19,944 | 12,212 | 41,630 | 28,401 | |
Hoegh LNG and Subsidiaries [Member] | |||||
Operating expenses | |||||
Vessel operating expenses | [1] | (4,612) | (5,147) | (9,674) | (10,543) |
Hours, travel expenses and overhead and Board of Directors' fees | [2],[3] | (710) | (648) | (1,719) | (1,678) |
Interest income from joint ventures | [4] | 63 | 102 | 134 | 230 |
Interest expense and commitment fees to Hoegh LNG | [5] | (843) | (1,137) | (1,641) | (2,206) |
Total | 6,218 | 4,402 | 10,245 | 8,949 | |
Hoegh Gallant [Member] | |||||
Revenues | |||||
Time charter revenue Höegh Gallant | [6] | $ 12,320 | $ 11,232 | $ 23,145 | $ 23,146 |
[1] | Vessel operating expenses: Subsidiaries of Höegh LNG provide ship management of vessels, including crews and the provision of all other services and supplies. | ||||
[2] | Board of Directors’ fees: Effective June 6, 2018 a total of 11,050 common units were awarded to non-employee directors under the Höegh LNG Partners LP Long Term Incentive Plan as compensation of $195 for part of the directors’ fees. As of June 30, 2018, a total of 8,840 units were issued under the award for compensation of $160. Effective May 22, 2017 a total of 9,805 common units were awarded to non-employee directors as compensation of $189 for part of the directors’ fees. The awards were recorded as administrative expense and as an issuance of common units. Common units are recorded when issued. | ||||
[3] | Hours, travel expenses and overhead: Subsidiaries of Höegh LNG provide management, accounting, bookkeeping and administrative support under administrative service agreements. These services are charges based upon the actual hours incurred for each individual as registered in the time-write system based on a rate which includes a provision for overhead and any associated travel expenses. | ||||
[4] | 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. | ||||
[5] | Interest expense and commitment fees to Höegh LNG and affiliates: Höegh LNG and its affiliates provided an $85 million revolving credit facility for general partnership purposes which incurred a commitment fee on the undrawn balance until January 29, 2018 and interest expense on the drawn balance. A seller’s credit note to finance part of the Höegh Gallant acquisition incurred interest expense until it was repaid in October 2017. | ||||
[6] | Time charter revenue Höegh Gallant: A subsidiary of Höegh LNG, EgyptCo, leases the Höegh Gallant. |
Related party transactions (D64
Related party transactions (Details 1) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | ||
Related Party Transaction [Line Items] | |||
Equity: Total | $ 323 | $ 1,362 | |
Issuance of units for Board of Directors' fees | 160 | 189 | |
Other and contribution from owner | [1] | 163 | 632 |
Repayment of indemnifications received from Hoegh LNG | (1,500) | ||
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Issuance of units for Board of Directors' fees | [2] | 160 | 189 |
Hoegh LNG and Subsidiaries [Member] | |||
Related Party Transaction [Line Items] | |||
Equity: Total | [3] | 0 | 2,075 |
Repayment of indemnifications received from Hoegh LNG | [3] | $ 0 | $ (1,534) |
[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 March 23, 2018 and June 3, 2016 the Partnership granted the Chief Executive Officer and Chief Financial Officer 14,584 and 21,500 phantom units in the Partnership, respectively. Related expenses are recorded as an administrative expense and as increase in equity. | ||
[2] | Board of Directors’ fees: Effective June 6, 2018 a total of 11,050 common units were awarded to non-employee directors under the Höegh LNG Partners LP Long Term Incentive Plan as compensation of $195 for part of the directors’ fees. As of June 30, 2018, a total of 8,840 units were issued under the award for compensation of $160. Effective May 22, 2017 a total of 9,805 common units were awarded to non-employee directors as compensation of $189 for part of the directors’ fees. The awards were recorded as administrative expense and as an issuance of common units. Common units are recorded when issued. | ||
[3] | Cash contribution from/ distribution to Höegh LNG: As described under “Indemnifications” below, Höegh LNG made indemnification payments to the Partnership or received refunds of indemnification payments from the Partnership which were recorded as contributions or distributions to equity. |
Related party transactions (D65
Related party transactions (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Amounts due from affiliates | $ 4,235 | $ 4,286 |
Amounts due to owners and affiliates | $ 559 | $ 1,417 |
Related party transactions (D66
Related party transactions (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Revolving credit facility due to owners and affiliates | $ 45,292 | $ 51,832 |
Related party transactions (D67
Related party transactions (Details Textual) - USD ($) $ in Thousands | Jun. 06, 2018 | Dec. 01, 2017 | May 22, 2017 | Jan. 02, 2017 | Jun. 03, 2016 | Jun. 30, 2018 | Mar. 23, 2018 | Aug. 31, 2014 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jan. 29, 2018 | Jan. 01, 2017 | |
Related Party Transaction [Line Items] | |||||||||||||||
Indemnification Under the Omnibus Agreement | $ 300 | $ 500 | $ 1,600 | ||||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 35,930 | 57,037 | |||||||||||||
Partners' Capital Account, Unit-based Compensation | 160 | 189 | |||||||||||||
Repayment of Indemnifications Received From Hoegh Lng | 1,500 | ||||||||||||||
Proceeds from Insurance Settlement, Operating Activities | $ 1,100 | ||||||||||||||
Hoegh Grace entities [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 51.00% | 49.00% | 49.00% | 51.00% | ||||||||||
Director [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Partners' Capital Account, Unit-based Compensation | [1] | $ 160 | 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 | 14,584 | |||||||||||||
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 | $ 85,000 | |||||||||||||
Line of Credit Facility, Expiration Date | Jan. 1, 2020 | ||||||||||||||
Omnibus Agreement [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Environmental Indemnifications | $ 5,000 | $ 5,000 | |||||||||||||
Environmental Indemnifications, Description | No claim may be made unless the aggregate dollar amount of all claims exceeds $0.5 million, in which case Höegh LNG is liable for claims only to the extent such aggregate amount exceeds $0.5 million. | ||||||||||||||
Hoegh LNG and Subsidiaries [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 14,000 | 13,300 | |||||||||||||
LP Long Term Incentive Plan [Member] | Director [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Partners' Capital Account, Units, Unit-based Compensation | 11,050 | 9,805 | 8,840 | ||||||||||||
Partners' Capital Account, Unit-based Compensation | $ 195 | $ 189 | $ 160 | ||||||||||||
Hoegh LNG [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Percentage Of Ownership Interest In Acquisition | 49.00% | 51.00% | |||||||||||||
Repayment of Indemnifications Received From Hoegh Lng | 2,500 | ||||||||||||||
Hoegh LNG [Member] | Revolving Credit Facility [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Debt Related Commitment Fee Percentage | 1.40% | ||||||||||||||
Hoegh Gallant [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Indemnification Under Technical Issues | $ 300 | $ 500 | $ 500 | ||||||||||||
[1] | Board of Directors’ fees: Effective June 6, 2018 a total of 11,050 common units were awarded to non-employee directors under the Höegh LNG Partners LP Long Term Incentive Plan as compensation of $195 for part of the directors’ fees. As of June 30, 2018, a total of 8,840 units were issued under the award for compensation of $160. Effective May 22, 2017 a total of 9,805 common units were awarded to non-employee directors as compensation of $189 for part of the directors’ fees. The awards were recorded as administrative expense and as an issuance of common units. Common units are recorded when issued. |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 20,980 | $ 22,679 | $ 15,452 | $ 18,915 |
Restricted cash | 19,362 | 20,602 | ||
Amounts due from affiliate | 4,235 | 4,286 | ||
Derivative instruments | 1,859 | (3,889) | ||
Advances (shareholder loans) to joint ventures | 3,397 | 3,263 | ||
Current amounts due to owners and affiliates | (559) | (1,417) | ||
Long-term Debt | (457,937) | (480,303) | ||
Revolving credit facility due to owners and affiliates | (45,292) | (51,832) | ||
Lampung Facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | (138,980) | (147,652) | ||
Gallant facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | (147,552) | (154,295) | ||
Grace facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | (171,405) | (178,356) | ||
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 | 20,980 | 22,679 | ||
Restricted cash | 19,362 | 20,602 | ||
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 | 4,235 | 4,286 | ||
Derivative instruments | 1,859 | (3,889) | ||
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 | 3,446 | 3,596 | ||
Current amounts due to owners and affiliates | (559) | (1,417) | ||
Revolving credit facility due to owners and affiliates | (44,980) | (51,099) | ||
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 | (152,429) | (162,597) | ||
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 | (148,453) | (155,325) | ||
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 | $ (171,415) | $ (178,652) |
Financial Instruments (Details
Financial Instruments (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Amounts due from affiliate | $ 4,235 | $ 4,286 |
Advances/ loans to joint ventures | 3,397 | 3,263 |
Payment activity [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Trade receivable | 4,425 | 7,563 |
Amounts due from affiliate | 4,235 | 4,286 |
Advances/ loans to joint ventures | $ 3,397 | $ 3,263 |
Risk management and concentra70
Risk management and concentrations of risk (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($) | [1] | |
Lampung [Member] | ||
Derivative [Line Items] | ||
Derivative, Interest rate index |  LIBOR | |
Derivative, Notional amount | $ 145,615 | |
Derivative Liability, Fair Value carrying amount assets | $ 106 | |
Derivative, Term | Sept 2,026 | |
Derivative, Fixed Interest rate | 2.80% | [2] |
Gallant [Member] | ||
Derivative [Line Items] | ||
Derivative, Interest rate index |  LIBOR | |
Derivative, Notional amount | $ 119,438 | |
Derivative Liability, Fair Value carrying amount assets | $ 918 | |
Derivative, Term | Sept 2,019 | |
Derivative, Fixed Interest rate | 1.90% | [2] |
Grace [Member] | ||
Derivative [Line Items] | ||
Derivative, Interest rate index |  LIBOR | |
Derivative, Notional amount | $ 130,688 | |
Derivative Liability, Fair Value carrying amount assets | $ 835 | |
Derivative, Term | March 2,020 | |
Derivative, Fixed Interest rate | 2.30% | [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 concentra71
Risk management and concentrations of risk (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | $ (331) | $ (2,015) |
Derivative Liability, Noncurrent | 0 | (2,102) |
Derivative Asset, Noncurrent | 1,217 | 228 |
Derivative Asset, Current | 973 | 0 |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | (331) | (2,015) |
Derivative Liability, Noncurrent | 0 | (2,102) |
Derivative Asset, Noncurrent | 1,217 | 228 |
Derivative Asset, Current | $ 973 | $ 0 |
Risk management and concentra72
Risk management and concentrations of risk (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Total gains (losses) on derivative instruments | $ 544 | $ 247 | $ 1,175 | $ 910 |
Interest Rate Swap [Member] | ||||
Ineffective portion of cash flow hedge | (21) | (354) | 22 | (350) |
Amortization of amount excluded from hedge effectiveness | 779 | 815 | 1,581 | 1,688 |
Reclassification from accumulated other comprehensive income | (214) | (214) | (428) | (428) |
Realized Gains (Losses) [Member] | ||||
Total gains (losses) on derivative instruments | 0 | 0 | 0 | 0 |
Unrealized Gains (Losses) [Member] | ||||
Total gains (losses) on derivative instruments | $ 544 | $ 247 | $ 1,175 | $ 910 |
Risk management and concentra73
Risk management and concentrations of risk (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Beginning Balance, Before tax gains (losses) | $ (3,612) | $ (6,947) | ||
Effective portion of unrealized loss on cash flow hedge, Before tax gains (losses) | 4,144 | (317) | ||
Reclassification of amortization of cash flow hedge to earnings, Before tax gains (losses) | 428 | 428 | ||
Other comprehensive income for period, Before tax gains (losses) | $ 745 | $ (1,029) | 4,572 | 111 |
Ending Balance, Before tax gains (losses) | 960 | (6,836) | 960 | (6,836) |
Beginning Balance, Tax benefit (expense) | 864 | 1,211 | ||
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) | (165) | (175) | ||
Other comprehensive income for period, Tax benefit (expense) | (165) | (175) | ||
Ending Balance, Tax benefit (expense) | 699 | 1,036 | 699 | 1,036 |
Beginning Balance, Net of tax | (2,748) | (5,736) | ||
Effective portion of unrealized loss on cash flow hedge, Net of tax | 4,144 | (317) | ||
Reclassification of amortization of cash flow hedge to earnings, Net of tax | 263 | 253 | ||
Other comprehensive income for period, Net of tax | 4,407 | (64) | ||
Ending Balance, Net of tax | 1,659 | (5,800) | 1,659 | (5,800) |
Beginning Balance, Accumulated OCI | (2,748) | (5,736) | ||
Effective portion of unrealized loss on cash flow hedge, Accumulated OCI | 4,144 | (317) | ||
Reclassification of amortization of cash flow hedge to earnings, Accumulated OCI | 263 | 253 | ||
Other comprehensive income for period, Accumulated OCI | 4,407 | (64) | ||
Ending Balance, Accumulated OCI | $ 1,659 | $ (5,800) | $ 1,659 | $ (5,800) |
Risk management and concentra74
Risk management and concentrations of risk (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
UNITED STATES | Hoegh Gallant [Member] | ||||
Concentration Risk, Percentage | 97.00% | 94.00% | 97.00% | 94.00% |
EGYPT | Hoegh Gallant [Member] | ||||
Concentration Risk, Percentage | 3.00% | 6.00% | 3.00% | 6.00% |
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 Millions | Sep. 08, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 |
Repayment of Indemnifications Received From Hoegh Lng | $ 1.5 | |||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 50.00% | |||||||
Capital Improvements Expect to Incur costs for Future | $ 1.2 | $ 1.7 | ||||||
Common Unit, Issuance Value | $ 1.1 | |||||||
Corporate Joint Venture [Member] | ||||||||
Loss Contingency, Estimate of Possible Loss | $ 58 | |||||||
Gross Amount Of Aribitration Claim Liability | $ 52 | |||||||
Loss Contingency, Accrual, Current | $ 23.7 | |||||||
Egypt Co [Member] | ||||||||
Other General Expense | $ 0.3 | $ 0.5 | ||||||
Höegh LNG [Member] | ||||||||
Indemnification Under Technical Issues | 0.5 | |||||||
Deferred Revenue, Revenue Recognized | 1.5 | |||||||
Indemnifications Under Omnibus Agreement | $ 0.3 | $ 0.5 | 1.6 | |||||
Repayment of Indemnifications Received From Hoegh Lng | $ 2.5 | |||||||
Loss Contingency Accrual | $ 11.9 | |||||||
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 Partnership’s 50% share of the excess boil-off claim could range from zero or negligible amounts to approximately $29 million. |
Supplemental cash flow inform76
Supplemental cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Supplemental disclosure of non-cash investing activities | ||||
Non-cash expenditures for vessel and other equipment | $ 100 | $ 0 | $ 100 | $ 0 |
Non-cash expenditures on direct finance lease | 200 | 0 | 200 | 0 |
Series A Preferred Units [Member] | ||||
Supplemental disclosure of non-cash financing activities | ||||
Non-cash proceeds | 380 | 0 | 380 | 0 |
Common Units [Member] | ||||
Supplemental disclosure of non-cash financing activities | ||||
Non-cash proceeds | $ 202 | $ 0 | $ 202 | $ 0 |
Issuance of common units and 77
Issuance of common units and Series A Preferred Units (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Gross proceeds for units issued | $ 23,484 | |
Less: Commissions | (404) | |
Net proceeds for units issued | 23,080 | |
Series A Preferred Units [Member] | ||
Gross proceeds for units issued | 20,360 | |
Less: Commissions | $ (200) | (364) |
Net proceeds for units issued | 19,996 | |
Common Units [Member] | ||
Gross proceeds for units issued | 3,124 | |
Less: Commissions | (40) | |
Net proceeds for units issued | $ 3,084 |
Issuance of common units and 78
Issuance of common units and Series A Preferred Units (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jan. 26, 2018 | |
Payment of Financing and Stock Issuance Costs | $ 404 | ||
Maximum Offering Amount | $ 120,000 | ||
Agent [Member] | |||
Sales Commissions | $ 400 | ||
Common Stock [Member] | |||
Partners' Capital Account, Units, Sale of Units | 16,875 | 229,606 | |
Shares Issued, Price Per Share | $ 18.23 | $ 18.23 | |
Proceeds from Issuance of Preferred Limited Partners Units | $ 300 | ||
Share Price | $ 18.36 | $ 18.36 | |
Common Stock, Shares, Issued | 171,375 | 171,375 | |
Sales Commissions | $ 3,100 | ||
Series A Preferred Units [Member] | |||
Partners' Capital Account, Units, Sale of Units | 478,874 | ||
Shares Issued, Price Per Share | $ 25.84 | $ 25.84 | |
Proceeds from Issuance of Preferred Limited Partners Units | $ 12,100 | ||
Share Price | $ 25.64 | $ 25.64 | |
Payment of Financing and Stock Issuance Costs | $ 200 | $ 364 | |
Sales Commissions | $ 20,000 | ||
Preferred Stock, Shares Issued | 788,026 | 788,026 |
Common, subordinated and pref79
Common, subordinated and preferred units (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Common units public [Member] | ||
Common And Subordinated Units [Line Items] | ||
Begining Balance | 17,648,844 | 17,639,039 |
Awards to non-employee directors as compensation for directors' fees | 8,840 | 9,805 |
Offering | 0 | |
ATM program | 171,375 | |
Ending Balance | 17,851,819 | 17,648,844 |
Common units public [Member] | Phantom Share Units (PSUs) [Member] | ||
Common And Subordinated Units [Line Items] | ||
Phantom units issued | 8,138 | |
Common units public [Member] | Units issued to staff at Höegh LNG [Member] | ||
Common And Subordinated Units [Line Items] | ||
June 6, 2018; Awards to non-employee directors as compensation for directors' fees | 14,622 | |
Common units Hoegh LNG [Member] | ||
Common And Subordinated Units [Line Items] | ||
Begining Balance | 2,116,060 | 2,116,060 |
Awards to non-employee directors as compensation for directors' fees | 0 | 0 |
Offering | 0 | |
ATM program | 0 | |
Ending Balance | 2,101,438 | 2,116,060 |
Common units Hoegh LNG [Member] | Phantom Share Units (PSUs) [Member] | ||
Common And Subordinated Units [Line Items] | ||
Phantom units issued | 0 | |
Common units Hoegh LNG [Member] | Units issued to staff at Höegh LNG [Member] | ||
Common And Subordinated Units [Line Items] | ||
June 6, 2018; Awards to non-employee directors as compensation for directors' fees | (14,622) | |
Subordinated units [Member] | ||
Common And Subordinated Units [Line Items] | ||
Begining Balance | 13,156,060 | 13,156,060 |
Awards to non-employee directors as compensation for directors' fees | 0 | 0 |
Offering | 0 | |
ATM program | 0 | |
Ending Balance | 13,156,060 | 13,156,060 |
Subordinated units [Member] | Phantom Share Units (PSUs) [Member] | ||
Common And Subordinated Units [Line Items] | ||
Phantom units issued | 0 | |
Subordinated units [Member] | Units issued to staff at Höegh LNG [Member] | ||
Common And Subordinated Units [Line Items] | ||
June 6, 2018; Awards to non-employee directors as compensation for directors' fees | 0 | |
8.75% Series A Preferred Units [Member] | ||
Common And Subordinated Units [Line Items] | ||
Begining Balance | 4,600,000 | 0 |
Awards to non-employee directors as compensation for directors' fees | 0 | 0 |
Offering | 4,600,000 | |
ATM program | 788,026 | |
Ending Balance | 5,388,026 | 4,600,000 |
8.75% Series A Preferred Units [Member] | Phantom Share Units (PSUs) [Member] | ||
Common And Subordinated Units [Line Items] | ||
Phantom units issued | 0 | |
8.75% Series A Preferred Units [Member] | Units issued to staff at Höegh LNG [Member] | ||
Common And Subordinated Units [Line Items] | ||
June 6, 2018; Awards to non-employee directors as compensation for directors' fees | 0 |
Common, subordinated and pref80
Common, subordinated and preferred units (Details Textual) - $ / shares | Oct. 05, 2022 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Series A Preferred Stock [Member] | Scenario, Forecast [Member] | ||||
Common And Subordinated Units [Line Items] | ||||
Preferred Stock, Liquidation Preference Per Share | $ 25 | |||
Preferred Stock, Redemption Price Per Share | $ 25 | |||
Preferred stock distribution rate, Percentage | 8.75% | |||
Partners Capital Distribution Amount Per Unit | $ 2.1875 | |||
Preferred Stock, Par or Stated Value Per Share | $ 25 | |||
Common units Hoegh LNG [Member] | ||||
Common And Subordinated Units [Line Items] | ||||
Partners Capital Account, Units | 2,101,438 | 2,116,060 | 2,116,060 | |
Subordinated Units Hoegh LNG [Member] | ||||
Common And Subordinated Units [Line Items] | ||||
Partners Capital Account, Units | 13,156,060 | 13,156,060 |
Earning per unit and cash dis81
Earning per unit and cash distributions (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Net income | $ 19,944 | $ 12,212 | $ 41,630 | $ 28,401 | |
Adjustment for: | |||||
Non-controlling interest | 0 | 2,812 | 0 | 5,556 | |
Preferred unitholders' interest in net income | 3,003 | 0 | 5,663 | 0 | |
Limited partners' interest in net income | 16,941 | 9,400 | 35,967 | 22,845 | |
Less: Dividends paid or to be paid | [1] | (14,988) | (14,441) | (29,942) | (28,878) |
Under (over) distributed earnings attributable to: | |||||
Distributed Earnings | 1,953 | (5,041) | 6,026 | (6,033) | |
Common unit public [Member] | |||||
Under (over) distributed earnings attributable to: | |||||
Distributed Earnings | $ 1,053 | $ (2,702) | $ 3,253 | $ (3,233) | |
Basic weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic | 17,827 | 17,643 | 17,790 | 17,641 | |
Diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Diluted | 17,839 | 17,654 | 17,804 | 17,651 | |
Basic and diluted earnings per unit: | |||||
Earnings Per Share, Basic and Diluted | [2] | $ 0.50 | $ 0.28 | $ 1.07 | $ 0.68 |
Common unit Höegh LNG [Member] | |||||
Under (over) distributed earnings attributable to: | |||||
Distributed Earnings | $ 124 | $ (324) | $ 383 | $ (388) | |
Basic weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Basic | 2,101 | 2,116 | 2,102 | 2,116 | |
Diluted weighted average units outstanding | |||||
Weighted Average Number of Shares Outstanding, Diluted | 2,101 | 2,116 | 2,102 | 2,116 | |
Basic and diluted earnings per unit: | |||||
Earnings Per Share, Basic and Diluted | [3] | $ 0.53 | $ 0.30 | $ 1.11 | $ 0.71 |
Subordinated unit Höegh LNG [Member] | |||||
Under (over) distributed earnings attributable to: | |||||
Distributed Earnings | $ 776 | $ (2,015) | $ 2,390 | $ (2,412) | |
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 | [3] | $ 0.53 | $ 0.30 | $ 1.11 | $ 0.71 |
[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 March 23, 2018, the Partnership granted 14,584 phantom units to the CEO/CFO of the Partnership. One-third of the phantom units vest as of November 30, 2019, 2020 and 2021, respectively. Effective June 3, 2016, the Partnership granted 21,500 phantom units to the CEO/CFO of the Partnership. One-third of the phantom units vest as of December 31, 2017, November 30, 2018 and November 30, 2019, respectively. 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 were the same. | ||||
[3] | Includes total amounts attributable to incentive distributions rights of $398 and $795 for the three and six months ended June 30, 2018, respectively. Of which $55 and $109 for the three and six months ended June 30, 2018, respectively, was attributed to common units owned by Höegh LNG. $343 and $685 for the three and six months ended June 30, 2018, respectively, was attributed to subordinated units owned by Höegh LNG. For the three and six months ended June 30, 2017, includes total amounts attributable to incentive distributions rights of $285 and $570, of which $40 and 79 were attributed to common units owned by Höegh LNG and $246 and $491 was attributed to subordinated units owned by Höegh LNG. |
Earning per unit and cash dis82
Earning per unit and cash distributions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jun. 03, 2016 | Mar. 23, 2018 | Jun. 30, 2018 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common Unit, Outstanding | 19,953,257 | ||
Limited Liability Company (LLC) Preferred Unit, Outstanding | 5,388,026 | ||
Common Unit, Issued | 19,953,257 | ||
Limited Liability Company (LLC) Preferred Unit, Issued | 5,388,026 | ||
Phantom Units [Member] | Chief Executive Officer Chief Financial Officer [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 21,500 | 14,584 | |
Second Target Distribution [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Incentive Distribution Right Target Distribution Per Unit | $ 0.421875 | ||
Distribution Percentage To All Unit Holders | 85.00% | ||
Distribution Percentage To Holders Of Incentive Distribution Rights | 15.00% | ||
Third Target Distribution [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Incentive Distribution Right Target Distribution Per Unit | $ 0.50625 | ||
Distribution Percentage To All Unit Holders | 75.00% | ||
Distribution Percentage To Holders Of Incentive Distribution Rights | 25.00% | ||
After Target Distribution [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Distribution Percentage To All Unit Holders | 50.00% | ||
Distribution Percentage To Holders Of Incentive Distribution Rights | 50.00% | ||
Common units public [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Incentive Distribution Right Target Distribution Per Unit | $ 0.388125 | ||
Distribution Percentage To Holders Of Incentive Distribution Rights | 100.00% | ||
Common Unit, Outstanding | 17,851,819 | ||
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% | ||
Subordinated units [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Distribution Percentage To Holders Of Incentive Distribution Rights | 100.00% | ||
Minimum Quarterly Distribution To Common And Subordinated Per Unit | $ 0.3375 | ||
General Partners' Capital Account, Units Outstanding | 13,156,060 | ||
General Partners' Capital Account, Units Issued | 13,156,060 | ||
Parent [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Incentive Distribution Right Target Distribution | $ 109 | ||
General Partners' Capital Account, Units Outstanding | 2,101,438 |
Subsequent events (Details Text
Subsequent events (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Aug. 15, 2018 | Aug. 14, 2018 | Aug. 21, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 35,930 | $ 57,037 | ||||||
Payment of Financing and Stock Issuance Costs | 404 | |||||||
Proceeds from Issuance of Common Limited Partners Units | $ 104 | $ 0 | 2,882 | $ 0 | ||||
Compensation Paid to Agent | $ 600 | |||||||
Common Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Share Price | $ 18.36 | $ 18.36 | ||||||
Partners' Capital Account, Units, Sale of Units | 16,875 | 229,606 | ||||||
Proceeds from Issuance of Preferred Limited Partners Units | $ 300 | |||||||
Proceeds from Issuance of Common Limited Partners Units | $ 4,100 | |||||||
Series A Preferred Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Partners' Capital Account, Units, Sale of Units | 1,294,913 | |||||||
Proceeds from Issuance of Preferred Limited Partners Units | $ 32,800 | |||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Payment of Financing and Stock Issuance Costs | $ 200 | |||||||
Subsequent Event [Member] | Common Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Share Price | $ 18.28 | |||||||
Partners' Capital Account, Units, Sale of Units | 58,231 | |||||||
Proceeds from Issuance of Common Limited Partners Units | $ 1,100 | |||||||
Subsequent Event [Member] | Series A Preferred Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ 0.546875 | |||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 3,200 | |||||||
Share Price | $ 25.68 | |||||||
Partners' Capital Account, Units, Sale of Units | 506,887 | |||||||
Proceeds from Issuance of Preferred Limited Partners Units | $ 12,800 | |||||||
Subsequent Event [Member] | Common and Subordinated Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ 0.44 | |||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 15,000 | |||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayments of Lines of Credit | $ 6,000 |