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Höegh LNG Partners net income $5.2 million

Staff writer |
Höegh LNG Partners LP reported its financial results for the quarter ended September 30, 2015.

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Net income for the three months ended September 30, 2015 of $5.2 million, an increase of $1.9 million from $3.3 million for the three months ended September 30, 2014.

The net income for both periods was impacted by the unrealized gains (losses) on derivative instruments mainly on the Partnership's share of equity in earnings of joint ventures.

Excluding these unrealized gains (losses) on derivative instruments, net income for the three months ended September 30, 2015 was $6.9 million, an increase of $5.0 million from $1.9 million for the three months September 30, 2014.

All FSRUs were onhire for the entire third quarter of 2015. During the third quarter of 2014, the PGN FSRU Lampung only had time charter revenues for part of the period since its time charter commenced on July 21, 2014.

Operating income for the three months ended September 30, 2015 was $7.5 million, an increase of $2.3 million from $5.2 million for the three months ended September 30, 2014. Operating income was also impacted by the unrealized gains (losses) on derivative instruments on the Partnership's share of equity in earnings of joint ventures.

1 Adjusted EBITDA is a non-GAAP financial measure used by investors to measure financial and operating performance. Please see Appendix A for a reconciliation of Adjusted EBITDA and Segment EBITDA to net income, the most directly comparable GAAP financial measure.

2 Financial data for the three and nine months ended September 30, 2014 contained herein have been restated as further described in Note 2d. to the financial statements contained in the Partnership's Form 6-K for the period ended September 30, 2015 filed with the SEC today.

Adjusted EBITDA was $16.9 million for the three months ended September 30, 2015, an increase of $5.5 million from $11.4 million for the three months ended September 30, 2014.

Equity in losses of joint ventures, which own the vessels GDF Suez Neptune and the GDF Suez Cape Ann, for the three months ended September 30, 2015 was $0.2 million, a decrease of $3.3 million from equity in earnings of joint ventures of $3.1 million for the three months ended September 30, 2014.

The reason for the decrease was the Partnership's share of an unrealized loss on derivative financial instruments of the joint ventures for the three months ended September 30, 2015 of $2.1 million compared with an unrealized gain of $1.4 million for the three months ended September 30, 2014.

The joint ventures do not apply hedge accounting for interest rate swaps and all changes in fair value is included in equity in earnings (losses) of joint ventures.

For the three months ended September 30, 2015, the Partnership's share of operating income in the joint ventures was $5.9 million compared with $6.0 million for the three months ended September 30, 2014.


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