SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

 

This Report on Form 6-K for the period ended June 30, 2016 contains certain forward-looking statements concerning future events and our operations, performance and financial condition, including, in particular, the likelihood of our success in developing and expanding our business. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “projects,” “forecasts,” “will,” “may,” “potential,” “should,” and similar expressions are forward-looking statements. These forward-looking statements reflect management’s current views only as of the date of this Report and are not intended to give any assurance as to future results. As a result, unitholders are cautioned not to rely on any forward-looking statements.

 

Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to:

 

 

Forward looking statements in this Report on Form 6-K are based upon estimates reflecting the judgment of management and involve known and unknown risks and uncertainties, many of which are beyond our control. These forward-looking statements should be considered in light of various important factors, including those set forth in this report under the caption “Risk Factors” and in our Annual Report on Form 20-F under the caption “Item 3 — Key Information — Risk Factors.” All forward-looking statements included in this Report on Form 6-K are made only as of the date of this Report on Form 6-K. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. We do not intend to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Unless the context otherwise requires, references in this report to “Golar Partners,” the “Partnership,” “we,” “our,” “us” or similar terms refer to Golar LNG Partners LP, a Marshall Islands limited partnership, or any one or more of its subsidiaries, or to all of such entities. Those statements in this section that are not historical in nature should be deemed forward-looking statements that are inherently uncertain. See “Important Information Regarding Forward-Looking Statements” on page 5 for a discussion of the factors that could cause actual results to differ materially from those projected in these statements.

 

This section should be read in conjunction with the interim financial statements presented in this report, as well as the historical consolidated financial statements and notes thereto of Golar LNG Partners LP included in our Annual Report on Form 20-F for the year ended December 31, 2015 .

 

We acquired from Golar LNG Limited (“Golar”) interests in the companies that own and operate the Golar Tundra and the Golar Eskimo in May 2016 and January 2015, respectively. The results of the Golar Eskimo are consolidated into our results as of the date of its acquisition. There has been no retroactive restatement of our financial statements to reflect the historical results of the Golar Eskimo prior to the acquisition date. Pursuant to an agreement entered into between us and Golar in connection with the acquisition of the Golar Tundra, we have the right to require Golar to repurchase the shares of Tundra Corp (the disponent owner and operator of the Golar Tundra) under certain circumstances, and consequently Golar continues to consolidate Tundra Corp and the results of Tundra Corp are not currently reflected in our financial statements.

General

 

We were formed by Golar, a leading independent owner and operator of LNG carriers, to own and operate FSRUs and LNG carriers under long-term charters that generate long-term stable cash flows. As of June 30, 2016 , our fleet consisted of six FSRUs and four LNG carriers. We intend to make additional accretive acquisitions of FSRUs and LNG carriers with long-term charters from Golar and third parties in the future as market conditions permit. Golar is also developing a floating liquefaction (FLNG) business and currently has one FLNG vessel under construction and contracted for an eight year term. We may in the future consider potential opportunities to expand our business through the acquisition of interests in FLNG assets from Golar.

 

Recent Developments

Since January 1, 2016, the significant developments that have occurred are as follows:

Acquisitions

In February 2016, we entered into an agreement with Golar to acquire (the “Tundra Acquisition”) the disponent owner and operator of the FSRU, the Golar Tundra (“Tundra Corp”), for a purchase price of $330.0 million less assumed net lease obligations and net of working capital adjustments. We paid an initial $30 million deposit to Golar in February 2016. The Tundra Acquisition closed on May 23, 2016, at which time we paid the remaining $77.2 million cash purchase consideration. Concurrent with the closing of the Tundra Acquisition, we entered into an agreement with Golar (as amended, the “Tundra Letter Agreement”) pursuant to which Golar agreed pay us a daily fee plus operating expenses, from the closing date until the date that operations commence under the vessel’s charter with West African Gas Limited (“WAGL”). In return we agreed to pay to Golar any hire or other contract-related payments actually received with respect to the vessel. The Tundra Letter Agreement furthermore includes that in the event the Golar Tundra has not commenced service under the charter by May 23, 2017, we have the option to require Golar to repurchase the Tundra Corp at a price equal to the original purchase price (the “Tundra Put Option”).

The Golar Tundra was built by Korean shipyard, Samsung Heavy Industries Co. Ltd., and was delivered to Golar in November 2015. The Golar Tundr a is subject to a time charter with WAGL, for an initial term of five years, which may be extended for an additional five years at WAGL’s option. WAGL is a joint venture of the Nigerian National Petroleum Corporation and Sahara Energy Resource Ltd that is developing an LNG import project at the port of Tema on the coast of Ghana (the “Ghana LNG Project”). The Golar Tundra was expected to commence operations in order to serve the Ghana LNG Project in the second quarter of 2016. However, the Ghana LNG Project has experienced delays and WAGL has not been able to accept the Golar Tundra.

Tundra Corp issued its notice of readiness to WAGL in mid June 2016, with payments due under the contract accruing 30 days thereafter. However, due to the significant delays in connection with the Ghana LNG Project, WAGL has not been able to accept the vessel. We have received assurances that the Ghana LNG Project remains intact. However, at this time, we are unable to predict when or if the Golar Tundra will commence operations under its time charter with WAGL.

Golar is engaged in continuing constructive dialogue with WAGL with regard to finding a mutually agreeable way forward for the project, which we believe to be needed and supported by the Government of Ghana. As noted above, the Tundra Put Option permits us to sell Tundra Corp back to Golar if the vessel does not commence operations under its charter with WAGL by May 23, 2017.

For a discussion of certain risks associated with the Tundra Acquisition see “Risk Factors.”

Financing

In April 2016, we entered into an $800.0 million senior secured credit facility (the “$800 million credit facility”) which refinanced the bank debt secured by seven of our existing vessels and provided the remaining part of the cash purchase price for the acquisition of the Golar Tundra . The facility has a five year term and consists of a $650.0 million term loan facility and a $150.0 million revolving credit facility. It is repayable in quarterly installments with a total final balloon payment of $453.0 million in 2021, together with any amounts outstanding under the revolving facility, the maximum amount of which in 2021 would be $75.0 million. The facility is provided by a syndicate of banks and bears interest at LIBOR plus a margin of 2.5% as well as a commitment fee on undrawn amounts.

For a description of the sale and leaseback transaction in respect of the Golar Tundra , see note 3 to our unaudited condensed consolidated financial statements.

Cash Distributions

On May 13, 2016, we paid a quarterly cash distribution with respect to the quarter ended March 31, 2016 of $0.5775 per unit. This cash distribution amounting to $38.2 million in the aggregate, was paid to all unitholders of record as of the close of business on May 6, 2016.

On August 12, 2016, we paid a quarterly cash distribution with respect to the quarter ended June 30, 2016 of $0.5775 per unit. This cash distribution, amounting to $38.2 million in the aggregate, was paid to all unitholders of record as of the close of business on August 5, 2016.

Unit Repurchase Program

In December 2015, our board of directors approved a common unit repurchase program of up to $25.0 million of the outstanding common units of the Partnership in the open market over a two year period. During the six months ended June 30, 2016 , 38,000 units were repurchased and, in accordance with the provisions of the Partnership Agreement, were deemed cancelled and not outstanding with immediate effect.

Expiration of Subordination Period

In the second quarter of 2016, our board of directors determined that the conditions precedent for the expiration of the subordination period set forth in the definition of “Subordination Period” contained in the Partnership Agreement were satisfied, and on June 30, 2016, all 15,949,831 subordinated units (all of which were held by Golar) converted into common units on a one-for-one basis.

Golar LNG Partners LP Long Term Incentive Plan

The Golar LNG Partners LP Long Term Incentive Plan (the “GMLP LTIP”) was adopted by our board of directors, effective as of May 30, 2016. The purpose of the GMLP LTIP is to promote our interests and the interests of our affiliates by providing employees and consultants  of  the Partnership, its general partner or any of their  affiliates and directors of the Partnership with incentive compensation awards to encourage superior performance. The maximum aggregate number of common units that may be delivered pursuant to any and all awards under the GMLP LTIP shall not exceed 500,000 common units, subject to adjustment due to recapitalization or reorganization as provided under the GMLP LTIP. The GMLP LTIP allows for grants of (i) unit options, (ii) unit appreciation rights, (iii) restricted unit awards, which may include tandem unit distribution rights, (iv) phantom units, (v) unit awards, (vi) other unit-based awards, (vii) cash awards, (viii) distribution equivalent rights (whether granted alone or in tandem with another award, other than a restricted Unit or Unit award), (ix) substitute awards and (x) performance-based awards. To date, no awards have been granted under the GMLP LTIP.

Golar Power Omnibus Agreement

On June 29, 2016, Golar entered into a joint venture (“Golar Power”) with investment vehicles affiliated with private equity firm Stonepeak Infrastructure Partners. Golar Power, is expected to offer integrated LNG based downstream solutions, through the ownership and operation of FSRUs and associated terminal and power generation infrastructure. Golar has agreed to transfer certain assets to Golar Power, including two LNG carriers capable of conversion to FSRUs and one FSRU that is currently under construction. Golar Power’s operations are expected to involve, the long term chartering of FSRUs to an operator of a gas fired power plant in order to facilitate the importation of LNG to fuel such plant.

In connection with the formation of Golar Power, we entered into an omnibus agreement with Golar and Golar Power (the “Golar Power Omnibus Agreement”). Pursuant to the Golar Power Omnibus Agreement, Golar Power agreed not to acquire, own, operate or charter any FSRU or LNG carrier operating under a charter for five or more years (“Five-Year-Vessels”), subject to certain exceptions. The non-competition provisions applicable to Golar Power under the Golar Power Omnibus Agreement are similar to those applicable to Golar pursuant to the Omnibus Agreement that we entered into in connection with our initial public offering. In addition, under the Golar Power Omnibus Agreement, the Golar Power Entities granted to us a right of first offer on any proposed sale, transfer or other disposition of any Five-Year Vessels owned or acquired by any Golar Power Entity. 

Upon a change of control of us or our general partner, the Golar Power Omnibus Agreement shall terminate immediately. In the event that one or more Golar LNG Entities (as defined in the Golar Power Omnibus Agreement) cease to own, in the aggregate, at least 33 1/3% of the ownership interests in Golar Power, the Golar Power Omnibus Agreement shall terminate as of the date such ownership interest falls below 33 1/3%.

Other Partnership Matters

On September 28, 2016, Doug Arnell resigned from our board of directors. Our General Partner has appointed Mr. Andrew Whalley, an existing director, to replace Mr. Arnell as one of our board’s three appointed directors. As a result of this appointment, Mr. Whalley, who was previously an elected director, will now serve as one of our board’s three appointed directors. Also, effective September 28, 2016, Mr. Jeremy Kramer has been appointed by the remaining elected directors of our board to fill the vacancy created as a result of Mr. Whalley’s appointment as an appointed director. Mr. Kramer will also serve on the Partnership’s conflicts committee.

Mr. Kramer has been a Senior Portfolio Manager at Neuberger Berman for the last 18 years (1998-2016), managing equity portfolios primarily for high net worth clients. Prior to that, Mr. Kramer worked at Alliance Capital from 1994 to 1998, first as a Securities Analyst following several industries, including railroads, truckers, air freight and industrial conglomerates and then as a Portfolio Manager focused on small and mid-cap equity securities. He also managed a closed-end fund, the Alliance Global Environment Fund. Mr. Kramer worked at Neuberger Berman from 1988 to 1994 as a Securities Analyst following several industries, including railroads, conglomerates and environmental services. Mr. Kramer graduated from Harvard University Graduate School of Business in 1988 with an MBA. He graduated with a BA from Connecticut College in 1983.

On September 28, 2016, at our 2016 annual meeting, the unitholders elected Alf C. Thorkildsen as a Class I director, whose term will expire at the 2019 annual meeting.

^{(1)      TCE is a non-GAAP financial measure. See “Non-GAAP Measure” for a computation of TCE.}  

 

Operating revenues: Total operating revenues increased by $6.0 million to $111.8 million for the three months ended June 30, 2016 compared with $105.7 million for the same period in 2015 . This is primarily due to:

 

This was partially offset by:

The average daily time charter equivalent rate, or TCE, for the three months ended June 30, 2016 increased by $4,900 to $121,900 compared to $117,000 for the same period in 2015, primarily as a result of the Golar Freeze being on hire throughout the quarter.

 

Vessel operating expenses: The decrease of $0.3 million in vessel operating expenses to $16.9 million for the three months ended June 30, 2016 , as compared to $17.2 million for the three months ended June 30, 2015 was primarily due to:

This was partially offset by:

 

Voyage and commission expenses: Voyage and commission expenses decreased by $ 0.7 million to $1.4 million for the three months ended June 30, 2016 , compared to $2.2 million for the same period in 2015 , due to lower bunker consumption and commission costs incurred by the Golar Igloo .

Depreciation and amortization : Depreciation and amortization increased by $2.3 million to $24.9 million for the three months ended June 30, 2016 , compared to $22.6 million for the same period in 2015 . This was primarily due to:

Interest expense: Interest expense increased by $0.5 million to $14.6 million for the three months ended June 30, 2016 , compared to $14.1 million for the three months ended June 30, 2015 . This was principally due to:

This was partially offset by:

Other financial items: Other financial items reflect losses of $15.6 million and $1.5 million for the three months ended June 30, 2016 and 2015 , respectively, as set forth in the table below:

 

 

As of June 30, 2016 , we had an interest rate swaps portfolio with a notional value of $1,155.0 million (excluding the cross-currency interest rate swap of $227.2 million related to our Norwegian Krone denominated bonds). The mark-to-market shift to losses of $7.1 million from gains of $6.0 million was due to the decrease in long-term swap rates during the three months ended June 30, 2016 . We designated approximately 8% of these swaps as hedging instruments.

We are also a party to a cross-currency interest rate swap with a notional value of $227.2 million which was designated as a cash flow hedge. A $1.4 million loss was accounted for as a change in other comprehensive income which would have otherwise been recognized in earnings for the three months ended June 30, 2016 . A $1.1 million gain was accounted for as a change in other comprehensive income, which would have otherwise been recognized in earnings, for the same period in 2015 . The cross currency interest rate swap has a credit support arrangement that requires us to provide cash collateral in the event that the market valuation drops below a certain level.

Amortization of deferred financing costs: Amortization of deferred financing costs increased by $2.8 million to $5.3 million for the three months ended June 30, 2016 , compared to $2.5 million for the same period in 2015 . This was principally due to the write-off of deferred financing costs following the refinancing of our credit facilities secured by seven of our vessels under the new $800 million credit facility in May 2016.

Income taxes: The tax charge for the three months ended June 30, 2016 included (i) corporate income taxes in respect of our operations in the United Kingdom, Brazil and Kuwait; (ii) withholding taxes and interest and penalties primarily on withholding taxes in respect of our operations in Indonesia; and (iii) utilization of losses against our taxable profits in Indonesia and Jordan. We do not currently incur any corporate income tax in respect of our operations in Indonesia and Jordan given the availability of brought forward tax losses which can be utilized against taxable profits.

Taxes during the three months ended June 30, 2016 increased by $ 2.6 million to $6.0 million compared to $3.4 million in the same period in 2015 . The increase was mainly attributable to withholding taxes and interest and penalties primarily on withholding taxes in respect of our Indonesian operations. In 2016 the tax audits for our Indonesian operations for the years 2012 and 2013 were re-opened and concluded by the local tax authorities. The conclusion of the tax audits resulted in recognition of a provision of $2.3 million to cover penalties and interest on certain taxes for the periods 2012 to June 30, 2016. See note 7 to our unaudited condensed consolidated financial statements.

Net income: As a result of the foregoing, we earned net income of $31.3 million and $43.6 million for the three months ended June 30, 2016 and 2015 , respectively.

 

Non-controlling interest: Non-controlling interest refers to the 40% interest in the Golar Mazo and earnings from our consolidated variable interest entity, or VIE. See note 3 to our unaudited condensed consolidated financial statements.

 

^{(1)   TCE is a non-GAAP financial measure. See “Non-GAAP Measure” for a computation of TCE.}  

 

Operating revenues: Total operating revenues increased by $7.3 million to $212.8 million for the six months ended June 30, 2016 , compared to $205.6 million for the same period in 2015 . This is due to:

This was partially offset by:

The decrease of $300 in the average daily TCE for the six months ended June 30, 2016 to $116,800 compared to $117,100 for the same period in 2015 , is primarily a result of the lower hire rate of the Golar Grand following her charter back to Golar and reduced revenue from the Golar Maria following her scheduled drydocking in March 2016.

 

Vessel operating expenses: The increase of $0.2 million in vessel operating expenses to $33.1 million for the six months ended June 30, 2016 as compared to $32.9 million in the six months ended June 30, 2015 , was due mainly to:

This was partially offset by:

Voyage and commission expenses: Voyage and commission expenses for the six months ended June 30, 2016 were broadly comparable to those incurred for the same period in 2015 .

Depreciation and amortization : Depreciation and amortization increased by $4.7 million to $49.9 million for the six months ended June 30, 2016 compared to $45.2 million for the same period in 2015 primarily due to:

 

Interest expense: Interest expense increased by $0.4 million to $27.2 million for the six months ended June 30, 2016 , compared to $26.8 million for the six months ended June 30, 2015 . This was principally due to:

This was partially offset by:

Other financial items: Other financial items reflect losses of $37.4 million and $11.8 million for the six months ended June 30, 2016 and 2015 , respectively, as set forth in the table below:

 

As of June 30, 2016 , our interest rate swaps portfolio had a notional value of $1,155.0 million (excluding our cross-currency interest rate swap of $227.2 million related to our Norwegian Krone denominated bonds). The increase in the mark-to-market losses of $24.4 million for the six months ended June 30, 2016 from a gain of $0.1 million for the same period in 2015 on our interest rate swaps was due to the decrease in long-term swap rates during the six months ended June 30, 2016 . We designated approximately 8% of these swaps as hedging instruments.

We are also a party to a cross-currency interest rate swap with a notional value of $227.2 million which was designated as a cash flow hedge. An $11.9 million loss was accounted for as a change in other comprehensive income which would have otherwise been recognized in earnings for the six months ended June 30, 2016 . A $2.9 million gain was accounted for as a change in other comprehensive income, which would have otherwise been recognized in earnings, for the same period in 2015 . The cross currency interest rate swap has a credit support arrangement that requires us to provide cash collateral in the event that the market valuation drops below a certain level.

Amortization of deferred financing costs: Amortization of deferred financing costs increased by $2.9 million to $6.4 million for the six months ended June 30, 2016 , compared to $3.5 million for the six months ended June 30, 2015 . This was principally due to the write-off of deferred financing costs following the refinancing of our credit facilities secured by seven of our vessels under the new $800 million credit facility in May 2016.

Income taxes: The tax charge for the six months ended June 30, 2016 included (i) corporate income taxes in respect of our operations in the United Kingdom, Brazil and Kuwait; (ii) withholding taxes and interest and penalties primarily on withholding taxes in respect of our operations in Indonesia; and (iii) utilization of losses against our taxable profits in Indonesia and Jordan. We do not currently incur any corporate income tax in respect of our operations in Indonesia and Jordan given the availability of brought forward tax losses which can be utilized against taxable profits.

 

Taxes during the six months ended June 30, 2016 increased by $ 3.9 million to $9.5 million compared to $ 5.6 million in the same period in 2015 . The increase was mainly attributable to withholding taxes and interest and penalties primarily on withholding taxes in respect of our Indonesian operations. In 2016, the tax audits for our Indonesian operations for the years 2012 and 2013 were re-opened and concluded by the local tax authorities. The conclusion of the tax audits resulted in recognition of a tax provision of $2.3 million to cover penalties and interest on certain taxes for the periods 2012 to June 30, 2016. See note 7 to our unaudited condensed consolidated financial statements.

Net income: As a result of the foregoing, we earned net income of $51.1 million and $77.3 million for the six months ended June 30, 2016 and 2015 , respectively.

 

Non-controlling interest: Non-controlling interest refers to the 40% interest in the Golar Mazo and earnings from our consolidated variable interest entity, or VIE. See note 3 of our unaudited condensed consolidated interim financial statements.

Liquidity and Capital Resources

 

Liquidity and Cash Needs

 

We operate in a capital-intensive industry and we expect to finance the purchase of additional vessels and other capital expenditures through a combination of borrowings from, and leasing arrangements with, commercial banks, cash generated from operations and debt and equity financings. In addition to paying distributions, our other short-term liquidity requirements relate to servicing interest on our debt, scheduled repayments of long-term debt, funding working capital requirements, including drydocking, and maintaining cash reserves against fluctuations in operating cash flows.

Our funding and treasury activities are intended to maximize investment returns while maintaining appropriate liquidity. Cash and cash equivalents are held primarily in U.S. Dollars with some balances held in other currencies. We have not used derivative instruments other than for interest rate and currency risk management purposes.

Short-Term Liquidity and Cash Requirements

Sources of short-term liquidity include cash balances, restricted cash balances, short-term investments, available amounts under revolving credit facilities and receipts from our charters. Revenues from the majority of our time charters are received monthly in advance. In addition we benefit from low inventory requirements (consisting primarily of fuel, lubricating oil and spare parts) due to fuel costs, which represent the majority of these costs being paid for by the charterer under time charters.

 

As of June 30, 2016 , our cash and cash equivalents, including restricted cash was $232.7 million, and we had access to undrawn borrowing facilities of $25.0 million. Our restricted cash balances contribute to our short and medium term liquidity as they are used to fund payment of certain debts, swaps and capital leases which would otherwise be paid out of our cash balances. Since June 30, 2016 , significant transactions impacting our cash flows include:

As of June 30, 2016 , our current liabilities exceeded current assets by $107.4 million.

However, included within current liabilities are (i) mark-to-market valuations of our swap derivatives of $117.5 million (includes $79.3 million mark-to-market valuations for our cross-currency interest rate swap) maturing between 2017 and 2022 (see note 10 to our unaudited condensed consolidated financial statements) and (ii) deferred drydocking and operating cost revenue of $18.5 million which relates to charter hire received in advance from our charterers. No cash outflows are expected in respect of deferred drydocking and operating cost revenue.

Moreover, the cash expected to be generated from operations (assuming the current rates earned from existing charters) will be sufficient to cover our operational cash outflows and our ongoing obligations under our financing commitments to pay loan interest and make scheduled loan repayments and make distributions.

We believe our current resources, including our undrawn revolving credit facility totaling $25.0 million as of June 30, 2016 , are sufficient to meet our working capital requirements for our current business for at least the next twelve months.

 

In addition to our cash and cash equivalents noted above, as of June 30, 2016, we had restricted cash of $171.5 million. This comprised principally of (i) $131.5 million representing balances retained on restricted accounts in accordance with certain lease and loan requirements (these balances act as security for our obligations and, in the case of restricted cash relating to our lease obligation, is used to repay the obligation); (ii) $32.2 million in relation to cash collateral in respect of our cross-currency interest rate swap entered into in connection with the NOK denominated High-Yield Bonds, the collateral requirements of which are dependent upon the mark to market valuation of the swap; and (iii) the balance which relates mainly to collateral deposits relating to performance guarantees issued to charterers.

Net Cash provided by Operating Activities

 

Net cash provided by operations increased by $27.8 million to $ 122.2 million for the six months ended June 30, 2016 compared to $94.4 million for the same period in 2015 . This was primarily due to:

Net Cash used in Investing Activities

Net cash used in investing activities of $ 107.2 million for the six months ended June 30, 2016 was primarily due to the payment of $107.2 million of cash consideration in connection with the acquisition of the Golar Tundra in May 2016.

Net cash used in investing activities of $ 8.3 million for the six months ended June 30, 2015 was primarily due to the $6.0 million of cash consideration paid (net of cash acquired) in connection with the acquisition of the Golar Eskimo in January 2015 and $2.1 million of additions to vessels and equipment.

Net Cash used in Financing Activities

 

Net cash used in financing activities is principally generated from funds from equity offerings, new debt and lease financings and contributions from owners, offset by debt and lease repayments.

Net cash generated by financing activities during the six months ended June 30, 2016 of $ 5.6 million was primarily due to the following:

This was partially offset by:

Net cash used in financing activities during the six months ended June 30, 2015 of $125.6 million was primarily due to the following:

This was partially offset by the receipt of aggregate proceeds of $420.0 million from our new debt, refinancings and revolvers, comprising: (i) $170.0 million from the Maria and Freeze facility; (ii) $150.0 million from the issuance of our 2015 Norwegian Bonds; and (iii) the balance relating to drawdowns under our credit facilities including revolvers.