Höegh LNG 1Q Interim Results
Höegh LNG announced the Interim results for the quarter ended 31 March 2015
Highlights
* Total income USD 46.9 million and EBITDA of USD 16.5 million, compared to USD 51.3 million and negative USD 1.0 million, respectively, in the first quarter 2014
* Loss before tax USD 1.9 million, compared to a loss of USD 4.5 million in the first quarter 2014
* First quarterly dividend payment of USD 0.10 per share
Subsequent Events
* Höegh Gallant completed all performance and commissioning tests and subsequently commenced commercial operations in Egypt
* Significant progress on Port Meridian FSRU project where the Company has an exclusive right to supply one FSRU and two LNG carriers
* The Board of Directors of Höegh LNG approved the Company's second quarter dividend payment of USD 0.10 per share to be paid on or around 19 June 2015. The HLNG share will be trading ex-dividend from 28 May 2015
* Former CEO of BG-Group, Mr. Chris Finlayson, joined the Höegh LNG Holdings Ltd. Board as non-executive director, replacing Mr. Jon-Erik Reinhardsen
Höegh LNG's President and Chief Executive Officer, Sveinung J. S. Støhle, said in a comment: "The improved EBITDA in the quarter is a result of PGN FSRU Lampung and Independence both generating income for a full quarter after start up of the long-term FSRU contract in Indonesia and Lithuania, respectively. In a subsequent event, Höegh Gallant also commenced operations under its long term FSRU contract in Egypt and will contribute positively to EBITDA from the second quarter 2015. With the increase in opportunities we see in the FSRU market, growth prospects are good and the Company is considering accelerating its newbuilding investment plan."
Group Financial review
HLNG recognises investments in joint venture companies according to the equity method. For the purpose of monitoring the operating performance of its underlying business, the Company reports segments based on proportionate consolidation of joint venture companies. Höegh LNG Partners LP (“HMLP”) is fully consolidated.
Consolidated results (joint venture investments accounted for according to the equity method) For the first quarter 2015, the Company reported USD 46.9 million in total income, down from USD 51.3 million in the first quarter 20141 , and EBITDA of USD 16.5 million, up from USD (1.0) million. The EBITDA increased mainly due to PGN FSRU Lampung and Independence generating income in the full quarter, off-set by start-up costs related to Höegh Gallant and no contribution from the PGN mooring that was delivered to the customer during fourth quarter 2014.
Depreciation in the first quarter 2015 was USD 8.4 million, an increase from USD 2.9 million, as the fleet comprised three more FSRUs; Independence, PGN FSRU Lampung and Höegh Gallant. Operating profit
after depreciation and impairment was USD 8.1 million in the quarter, up from USD (3.9) million.
Net financial items amounted to USD (10.0) million in the first quarter 2015 compared to USD (0.6) million. The increase is mainly due to higher interest expenses following delivery of the three FSRUs.
The Company reports a loss before tax of USD 1.9 million in the quarter, an improvement from a loss of USD 4.5 million. The improvement is mainly due to PGN FSRU Lampung and Independence being in operation, offset by Höegh Gallant still being in the pre-operational phase.
Total cash flow in the quarter was USD 14.3 million, compared to USD 16.0 million.
Current cash and marketable securities were USD 199.1 million at the end of the first quarter 2015, compared to USD 207.4 at the end of the previous quarter. The book equity after adjusting for mark-tomarket
of interest rate swaps was USD 560.1 million at the end of the quarter, down from USD 572.7 million at the end of the previous quarter, which is equivalent to an adjusted book equity ratio of 41% and 42%, respectively. Net interest bearing debt was USD 476.4 million at the end of the quarter, up from USD 460.5 million at the end of the previous quarter.
