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PAGE
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Financial Statements (Unaudited)
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GOLAR LNG PARTNERS LP
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Date:
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May 22, 2019
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By:
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/s/ Brian Tienzo
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Name:
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Brian Tienzo
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Title:
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Principal Executive, Financial and Accounting Officer
|
•
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the ability of Golar LNG Partners LP (“Golar Partners,” “we,” “us” and “our”) to enter into long-term time charters, including our ability to re-charter floating storage and regasification units (“FSRUs”) and liquefied natural gas (“LNG”) carriers following the termination or expiration of their time charters;
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•
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our ability to maximize the use of our vessels, including the re-deployment or disposition of vessels no longer under long-term time charter;
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•
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our ability to maintain cash distributions on our units and the amount of any such distributions;
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•
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market trends in the FSRU, LNG carrier and floating liquefied natural gas vessel (“FLNG”) industries, including charter rates, factors affecting supply and demand, and opportunities for the profitable operations of FSRUs, LNG carriers and FLNGs;
|
•
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the ability of Golar LNG Limited (“Golar”) and us to retrofit vessels as FSRUs or FLNGs and the timing of the delivery and acceptance of any such retrofitted vessels by their respective charterers;
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•
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our ability to realize the expected benefits from the Jamaica FSRU Project;
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•
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our ability to integrate and realize the expected benefits from acquisitions and potential acquisitions:
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•
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the future share of earnings relating to the
Hilli
, which is accounted for under the equity method;
|
•
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our anticipated growth strategies;
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•
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the effect of a worldwide economic slowdown;
|
•
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turmoil in the global financial markets;
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•
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fluctuations in currencies and interest rates;
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•
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general market conditions, including fluctuations in charter hire rates and vessel values;
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•
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changes in commodity prices;
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•
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the liquidity and creditworthiness of our charterers;
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•
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changes in our operating expenses, including dry-docking and insurance costs and bunker prices;
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•
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our future financial condition or results of operations and future revenues and expenses;
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•
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the repayment of debt and settling of interest rate swaps;
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•
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our and Golar's ability to make additional borrowings and to access debt and equity markets;
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•
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planned capital expenditures and availability of capital resources to fund capital expenditures;
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•
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the exercise of purchase options by our charters;
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•
|
our ability to maintain long-term relationships with major LNG traders;
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•
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our ability to leverage the relationships and reputation of Golar and Golar Power Limited (“Golar Power”) in the LNG industry;
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•
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our ability to purchase vessels from Golar and Golar Power in the future;
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•
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timely purchases and deliveries of newbuilding vessels;
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•
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future purchase prices of newbuildings and secondhand vessels;
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•
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our ability to compete successfully for future chartering and newbuilding opportunities;
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•
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acceptance of a vessel by its charterer;
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•
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termination dates and extensions of charters;
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•
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the expected cost of, and our ability to comply with, governmental regulations, maritime self-regulatory organization standards, as well as standard regulations imposed by its charterers applicable to our business;
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•
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availability of skilled labor, vessel crews and management;
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•
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our general and administrative expenses and our fees and expenses payable under the fleet management agreements and the management and administrative services agreement;
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•
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the anticipated taxation of our partnership and distributions to our unitholders;
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•
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challenges by authorities to the tax benefits we previously obtained;
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•
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estimated future maintenance and replacement capital expenditures;
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•
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our and Golar's ability to retain key employees;
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•
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customers’ increasing emphasis on environmental and safety concerns;
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•
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potential liability from any pending or future litigation;
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•
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potential disruption of shipping routes due to accidents, political events, piracy or acts by terrorists;
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•
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our business strategy and other plans and objectives for future operations; and
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•
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other factors listed from time to time in the reports and other documents that we file with the U.S. Securities and Exchange Commission (the “SEC”).
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Three Months Ended March 31, 2019
|
Three Months Ended March 31, 2018
|
||||||||||||||||||||||||||
(dollars in thousands)
|
FSRU
|
LNG Carrier
|
FLNG
|
Elimination
(1)
|
Consolidated Reporting
|
FSRU
|
LNG Carrier
|
FLNG
|
Elimination
(1)
|
Consolidated Reporting
|
||||||||||||||||||
Total operating revenues
|
$
|
53,405
|
|
$
|
16,505
|
|
$
|
26,018
|
|
$
|
(26,018
|
)
|
$
|
69,910
|
|
$
|
62,547
|
|
$
|
11,667
|
|
—
|
|
—
|
|
$
|
74,214
|
|
Vessel operating expenses
|
(11,793
|
)
|
(5,017
|
)
|
(5,953
|
)
|
5,953
|
|
(16,810
|
)
|
(11,080
|
)
|
(5,280
|
)
|
—
|
|
—
|
|
(16,360
|
)
|
||||||||
Voyage and commission expenses
|
(1,124
|
)
|
(734
|
)
|
(180
|
)
|
180
|
|
(1,858
|
)
|
(1,517
|
)
|
(1,370
|
)
|
—
|
|
—
|
|
(2,887
|
)
|
||||||||
Administrative expenses
(2)
|
(2,377
|
)
|
(1,489
|
)
|
(308
|
)
|
308
|
|
(3,866
|
)
|
(2,001
|
)
|
(1,251
|
)
|
—
|
|
—
|
|
(3,252
|
)
|
||||||||
Segment EBITDA
|
$
|
38,111
|
|
$
|
9,265
|
|
$
|
19,577
|
|
$
|
(19,577
|
)
|
$
|
47,376
|
|
$
|
47,949
|
|
$
|
3,766
|
|
—
|
|
—
|
|
$
|
51,715
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
Change
|
|
% Change
|
|||||||
Statement of Operations Data:
|
(dollars in thousands except Average Daily TCE
(2)
)
|
|||||||||||||
Total operating revenues
|
$
|
53,405
|
|
|
$
|
62,547
|
|
|
$
|
(9,142
|
)
|
|
(15
|
)%
|
Vessel operating expenses
|
(11,793
|
)
|
|
(11,080
|
)
|
|
(713
|
)
|
|
6
|
%
|
|||
Voyage and commission expenses
|
(1,124
|
)
|
|
(1,517
|
)
|
|
393
|
|
|
(26
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)%
|
|||
Administrative expenses
(1)
|
(2,377
|
)
|
|
(2,001
|
)
|
|
(376
|
)
|
|
19
|
%
|
|||
FSRU Segment EBITDA
|
38,111
|
|
|
47,949
|
|
|
(9,838
|
)
|
|
(21
|
)%
|
|||
|
|
|
|
|
|
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|
|||||||
Other Financial Data:
|
|
|
|
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|
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|
|||||||
Average daily TCE
(2)
(to the closest $100)
|
$
|
136,100
|
|
|
$
|
154,500
|
|
|
$
|
(18,400
|
)
|
|
(12
|
)%
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
Change
|
|
% Change
|
|||||||
Statement of Operations Data:
|
(dollars in thousands except Average Daily TCE
(2)
)
|
|||||||||||||
Total operating revenues
|
$
|
16,505
|
|
|
$
|
11,667
|
|
|
$
|
4,838
|
|
|
41
|
%
|
Vessel operating expenses
|
(5,017
|
)
|
|
(5,280
|
)
|
|
263
|
|
|
(5
|
)%
|
|||
Voyage and commission expenses
|
(734
|
)
|
|
(1,370
|
)
|
|
636
|
|
|
(46
|
)%
|
|||
Administrative expenses
(1)
|
(1,489
|
)
|
|
(1,251
|
)
|
|
(238
|
)
|
|
19
|
%
|
|||
LNG carrier Segment EBITDA
|
9,265
|
|
|
3,766
|
|
|
5,499
|
|
|
146
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Average daily TCE
(2)
(to the closest $100)
|
$
|
50,200
|
|
|
$
|
28,600
|
|
|
$
|
21,600
|
|
|
76
|
%
|
|
Three Months Ended March 31,
|
|
|
|
|
||||||||
|
2019
|
|
2018
|
|
Change
|
|
% Change
|
||||||
Statement of Operations Data:
|
(dollars in thousands)
|
||||||||||||
Total operating revenues
|
$
|
26,018
|
|
|
$
|
—
|
|
|
26,018
|
|
|
100
|
%
|
Vessel operating expenses
|
(5,953
|
)
|
|
—
|
|
|
(5,953
|
)
|
|
100
|
%
|
||
Voyage and commission expenses
|
(180
|
)
|
|
—
|
|
|
(180
|
)
|
|
100
|
%
|
||
Administrative expenses
|
(308
|
)
|
|
—
|
|
|
(308
|
)
|
|
100
|
%
|
||
FLNG Segment EBITDA
|
19,577
|
|
|
—
|
|
|
19,577
|
|
|
100
|
%
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
Change
|
|
% Change
|
|||||||
|
(dollars in thousands)
|
|||||||||||||
Depreciation and amortization
|
$
|
(21,440
|
)
|
|
$
|
(25,649
|
)
|
|
$
|
4,209
|
|
|
(16
|
)%
|
Administrative expenses
|
(3,866
|
)
|
|
(3,252
|
)
|
|
(614
|
)
|
|
19
|
%
|
|||
Interest income
|
1,075
|
|
|
3,482
|
|
|
(2,407
|
)
|
|
(69
|
)%
|
|||
Interest expense
|
(20,777
|
)
|
|
(20,314
|
)
|
|
(463
|
)
|
|
2
|
%
|
|||
(Losses)/gains on derivative instruments
(1)
|
(13,967
|
)
|
|
10,235
|
|
|
(24,202
|
)
|
|
(236
|
)%
|
|||
Other financial items, net
(1)
|
(530
|
)
|
|
(644
|
)
|
|
114
|
|
|
(18
|
)%
|
|||
Taxes
|
(5,289
|
)
|
|
(3,923
|
)
|
|
(1,366
|
)
|
|
35
|
%
|
|||
Non-controlling interests
|
(1,711
|
)
|
|
(147
|
)
|
|
(1,564
|
)
|
|
1,064
|
%
|
•
|
$2.0 million reduction in the depreciation and amortization of the
Golar Freeze
following extension of her useful economic life to reflect the vessel being utilized for the new 15-year charter;
|
•
|
$0.7 million decrease in the amortization of the intangible asset acquired in connection with the acquisition of the
Golar Igloo
following the extension of the intangible's useful economic life to reflect the amended lease term; and
|
•
|
$0.6 million lower drydock amortization expense for the
Golar Spirit
as her drydock cost was fully amortized within the first quarter of 2018.
|
•
|
$1.0 million incremental interest on our Norwegian Bonds, due to higher LIBOR for the three months ended March 31, 2019; and
|
•
|
$1.0 million incremental interest on our $800 million credit facility, due to higher LIBOR and additional interest as a result of the balance drawn under the facility.
|
•
|
$0.9 million decrease in amortization of deferred financing costs as a result of our refinancing of the NR Satu debt facility in early 2018; and
|
•
|
$0.4 million decrease in amortization of deferred financing costs for the Eskimo, which was fully amortized during 2018.
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
(in thousands of $)
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
Mark-to-market (losses)/gains for interest rate swaps
|
$
|
(16,484
|
)
|
|
$
|
10,693
|
|
|
$
|
(27,177
|
)
|
|
(254
|
)%
|
Net interest income/(expense) on undesignated interest rate swaps
|
2,517
|
|
|
(458
|
)
|
|
2,975
|
|
|
(650
|
)%
|
|||
Total
|
$
|
(13,967
|
)
|
|
$
|
10,235
|
|
|
$
|
(24,202
|
)
|
|
(236
|
)%
|
•
|
payment of a cash distribution of $0.4042 per unit ($28.7 million in the aggregate) to all common and general partner unitholders with respect to the quarter ended
March 31, 2019
, in May 2019; and
|
•
|
payment of a cash distribution of $0.546875 per Series A Preferred Unit ($3.0 million in the aggregate), in respect of the period from February 15, 2019 through May 14, 2019, in May 2019.
|
|
Three Months Ended March 31,
|
|
|
|
|
|||||||||
(in thousands of $)
|
2019
|
|
|
2018
|
|
|
$ Change
|
|
|
% Change
|
|
|||
Net cash provided by operating activities
|
$
|
28,561
|
|
|
$
|
28,197
|
|
|
$
|
364
|
|
|
1
|
%
|
Net cash used in investing activities
|
(13,240
|
)
|
|
(1,673
|
)
|
|
(11,567
|
)
|
|
691
|
%
|
|||
Net cash used in financing activities
|
(28,162
|
)
|
|
(131,157
|
)
|
|
102,995
|
|
|
(79
|
)%
|
|||
Effect of exchange rate changes on cash
|
1,825
|
|
|
4,490
|
|
|
(2,665
|
)
|
|
(59
|
)%
|
|||
Net decrease in cash, cash equivalents and restricted cash
|
(11,016
|
)
|
|
(100,143
|
)
|
|
89,127
|
|
|
(89
|
)%
|
|||
Cash, cash equivalents and restricted cash at beginning of period
|
269,092
|
|
|
429,887
|
|
|
(160,795
|
)
|
|
(37
|
)%
|
|||
Cash, cash equivalents and restricted cash at end of period
|
258,076
|
|
|
329,744
|
|
|
(71,668
|
)
|
|
(22
|
)%
|
•
|
$10.3 million of cash consideration paid in respect of the remaining net purchase price less working capital adjustments in connection with the Hilli Acquisition; and
|
•
|
$6.3 million of capital expenditures for the Golar Igloo and Golar Freeze.
|
•
|
$21.3 million of repayment of our debt; and
|
•
|
payment of $31.7 million in cash distributions.
|
•
|
$91.6 million of repayment of long-term debt and revolving credit facilities;
|
•
|
payment of $45.0 million in cash distributions;
|
•
|
payment of $8.0 million of cash in connection with our common unit repurchase program; and
|
•
|
payment of $1.7 million of financing costs related to the refinancing of the NR Satu Facility.
|
(in thousands of $)
|
March 31,
2019 |
|
December 31,
2018 |
||||
|
|
|
|
||||
$800 million Credit Facility
|
$
|
607,000
|
|
|
$
|
595,000
|
|
2017 Norwegian Bonds
|
250,000
|
|
|
250,000
|
|
||
2015 Norwegian Bonds
|
150,000
|
|
|
150,000
|
|
||
NR Satu Facility
|
85,175
|
|
|
88,863
|
|
||
Eskimo SPV Debt
|
194,673
|
|
|
199,237
|
|
||
Total debt
|
$
|
1,286,848
|
|
|
$
|
1,283,100
|
|
Less: Deferred financing costs
|
(9,541
|
)
|
|
(10,750
|
)
|
||
Net debt
|
$
|
1,277,307
|
|
|
$
|
1,272,350
|
|
•
|
In February 2019, the Partnership borrowed the remaining $25 million available under the revolving credit facility under its $800 million credit facility. As of March 31, 2019, the revolving credit facility was fully drawn.
|
(in thousands of $)
|
Lease liability
|
||
Capital lease liability
|
$
|
121,931
|
|
Less: Restricted cash deposit
|
(113,837
|
)
|
|
Net capital lease obligation
|
$
|
8,094
|
|
(in millions of $)
|
Total
Obligation
|
|
Due in the
remainder of
2019
|
|
Due in
2020-2021
|
|
Due in
2022-2023
|
|
Due
Thereafter
|
||||||||||
Long-term debt
(1)
|
$
|
1,286.8
|
|
|
$
|
59.7
|
|
|
$
|
1,023.2
|
|
|
$
|
70.2
|
|
|
$
|
133.7
|
|
Interest commitments on long-term debt - floating and other interest rate swaps
(2)
|
172.1
|
|
|
51.5
|
|
|
92.6
|
|
|
17.8
|
|
|
10.2
|
|
|||||
Capital lease obligations, net
(2)(3)
|
121.9
|
|
|
1.2
|
|
|
4.4
|
|
|
6.2
|
|
|
110.1
|
|
|||||
Total
|
$
|
1,580.8
|
|
|
$
|
112.4
|
|
|
$
|
1,120.2
|
|
|
$
|
94.2
|
|
|
$
|
254.0
|
|
|
FSRU Segment
|
|
LNG Carrier Segment
|
||||||||||||
|
Three Months Ended March 31,
|
|
Three Months Ended March 31,
|
||||||||||||
(in thousands of $, except number of days and average daily TCE)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Total operating revenues
|
$
|
53,405
|
|
|
$
|
62,547
|
|
|
$
|
16,505
|
|
|
$
|
11,667
|
|
Voyage and commission expenses
|
(1,124
|
)
|
|
(1,517
|
)
|
|
(734
|
)
|
|
(1,370
|
)
|
||||
|
52,281
|
|
|
61,030
|
|
|
15,771
|
|
|
10,297
|
|
||||
Calendar days less scheduled off-hire days
|
384
|
|
|
395
|
|
|
314
|
|
|
360
|
|
||||
Average daily TCE (to the closest $100)
|
$
|
136,100
|
|
|
$
|
154,500
|
|
|
$
|
50,200
|
|
|
$
|
28,600
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|||||
(in thousands of $, except per unit amounts)
|
Notes
|
2019
|
2018
|
||||
Time charter revenues
|
5
|
69,910
|
|
74,214
|
|
||
Total operating revenues
|
|
69,910
|
|
74,214
|
|
||
|
|
|
|
||||
Vessel operating expenses
|
|
(16,810
|
)
|
(16,360
|
)
|
||
Voyage and commission expenses
|
|
(1,858
|
)
|
(2,887
|
)
|
||
Administrative expenses
|
12
|
(3,866
|
)
|
(3,252
|
)
|
||
Depreciation and amortization
|
|
(21,440
|
)
|
(25,649
|
)
|
||
Total operating expenses
|
|
(43,974
|
)
|
(48,148
|
)
|
||
|
|
|
|
||||
Operating income
|
|
25,936
|
|
26,066
|
|
||
|
|
|
|
||||
Financial income/(expense)
|
|
|
|
|
|||
Interest income
|
12
|
1,075
|
|
3,482
|
|
||
Interest expense
|
|
(20,777
|
)
|
(20,314
|
)
|
||
(Losses)/gains on derivative instruments
|
2, 6
|
(13,967
|
)
|
10,235
|
|
||
Other financial items, net
|
2, 6
|
(530
|
)
|
(644
|
)
|
||
Net financial expenses
|
|
(34,199
|
)
|
(7,241
|
)
|
||
|
|
|
|
||||
(Loss)/income before tax, equity in net earnings of affiliate and non-controlling interests
|
|
(8,263
|
)
|
18,825
|
|
||
Tax
|
7
|
(5,289
|
)
|
(3,923
|
)
|
||
Equity in net earnings of affiliate
|
9
|
265
|
|
—
|
|
||
Net (loss)/income
|
|
(13,287
|
)
|
14,902
|
|
||
Net income attributable to non-controlling interests
|
|
(1,711
|
)
|
(147
|
)
|
||
Net (loss)/income attributable to Golar LNG Partners LP Owners
|
|
(14,998
|
)
|
14,755
|
|
||
|
|
|
|
||||
General partner interest in net (loss)/income
|
|
(360
|
)
|
236
|
|
||
Preferred unitholders’ interest in net income
|
|
3,019
|
|
2,985
|
|
||
Common unitholders’ interest in net (loss)/income
|
|
(17,657
|
)
|
11,534
|
|
||
|
|
|
|
||||
Earnings per unit
|
|
|
|
|
|
||
Common unit (basic and diluted)
|
14
|
$
|
(0.25
|
)
|
$
|
0.16
|
|
|
|
|
|
||||
Cash distributions declared and paid per common unit in the period
|
|
$
|
0.40
|
|
$
|
0.58
|
|
|
Three Months Ended March 31,
|
|||
(in thousands of $)
|
2019
|
2018
|
||
Net (loss)/income
|
(13,287
|
)
|
14,902
|
|
Other comprehensive (loss)/income:
|
|
|
|
|
Amount reclassified from accumulated other comprehensive income to statements of operations
|
—
|
|
(26
|
)
|
Other comprehensive loss
|
—
|
|
(26
|
)
|
Comprehensive (loss)/income
|
(13,287
|
)
|
14,876
|
|
|
|
|
||
Comprehensive (loss)/income attributable to:
|
|
|
|
|
Golar LNG Partners LP Owners
|
(14,998
|
)
|
14,729
|
|
Non-controlling interests
|
1,711
|
|
147
|
|
|
(13,287
|
)
|
14,876
|
|
|
|
March 31,
|
December 31,
|
||
(in thousands of $)
|
Note
|
2019
|
2018
|
||
|
|
Unaudited
|
|
Audited
|
|
ASSETS
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
74,412
|
|
96,648
|
|
Restricted cash and short-term deposits
|
|
43,043
|
|
31,330
|
|
Other current assets
|
|
25,299
|
|
34,520
|
|
Amount due from related parties
|
12
|
4,412
|
|
—
|
|
Inventories
|
|
2,342
|
|
2,031
|
|
Total Current Assets
|
|
149,508
|
|
164,529
|
|
Non-current Assets
|
|
|
|
|
|
Restricted cash
|
|
140,621
|
|
141,114
|
|
Investment in affiliate
|
9
|
203,448
|
|
206,180
|
|
Vessels and equipment, net
|
|
1,526,934
|
|
1,535,757
|
|
Vessel under capital lease, net
|
|
113,142
|
|
114,711
|
|
Intangible assets, net
|
|
57,879
|
|
60,369
|
|
Other non-current assets
|
|
11,241
|
|
18,157
|
|
Total Assets
|
|
2,202,773
|
|
2,240,817
|
|
|
|
|
|
||
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
Current portion of long-term debt and short-term debt
|
10
|
76,553
|
|
75,451
|
|
Current portion of obligation under capital lease
|
|
1,676
|
|
1,564
|
|
Amount due to related parties
|
12
|
—
|
|
1,237
|
|
Other current liabilities
|
|
57,419
|
|
57,855
|
|
Total Current Liabilities
|
|
135,648
|
|
136,107
|
|
Non-current Liabilities
|
|
|
|
|
|
Long-term debt
|
10
|
1,200,754
|
|
1,196,899
|
|
Obligation under capital lease
|
|
120,255
|
|
118,119
|
|
Other non-current liabilities
|
|
31,500
|
|
30,175
|
|
Total Liabilities
|
|
1,488,157
|
|
1,481,300
|
|
Equity
|
|
|
|
|
|
Partners' capital:
|
|
|
|
|
|
Common unitholders
|
|
449,905
|
|
495,576
|
|
Preferred unitholders
|
|
132,991
|
|
132,991
|
|
General partner interest
|
|
50,107
|
|
51,048
|
|
Total Partners' capital
|
|
633,003
|
|
679,615
|
|
Non-controlling interests
|
|
81,613
|
|
79,902
|
|
Total Equity
|
|
714,616
|
|
759,517
|
|
Total Liabilities and Equity
|
|
2,202,773
|
|
2,240,817
|
|
|
|
Three Months Ended March 31,
|
|||
(in thousands of $)
|
Notes
|
2019
|
2018
|
||
OPERATING ACTIVITIES
|
|
|
|
|
|
Net (loss)/income
|
|
(13,287
|
)
|
14,902
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
21,440
|
|
25,649
|
|
Equity in net income of affiliate
|
|
(265
|
)
|
—
|
|
Movement in deferred tax liability
|
|
2,036
|
|
440
|
|
Amortization of deferred charges and Partnership guarantee
|
|
680
|
|
2,580
|
|
Drydocking expenditure
|
|
(8,536
|
)
|
(3,207
|
)
|
Foreign exchange losses
|
|
807
|
|
262
|
|
Unit options expense
|
|
59
|
|
58
|
|
Dividends received from affiliate
|
|
265
|
|
—
|
|
Interest element included in obligation under capital lease, net
|
|
(26
|
)
|
39
|
|
Change in market value of derivatives
|
2
|
16,484
|
|
(10,668
|
)
|
Change in assets and liabilities:
|
|
|
|
||
Trade accounts receivable
|
|
8,977
|
|
10,229
|
|
Inventories
|
|
(311
|
)
|
(119
|
)
|
Other current assets and other non-current assets
|
2
|
(220
|
)
|
92
|
|
Amount due from related parties
|
|
3,218
|
|
1,252
|
|
Trade accounts payable
|
|
(3,856
|
)
|
(2,825
|
)
|
Accrued expenses
|
|
5,522
|
|
(6,819
|
)
|
Other current and non-current liabilities
|
2
|
(4,426
|
)
|
(3,668
|
)
|
Net cash provided by operating activities
|
|
28,561
|
|
28,197
|
|
|
|
|
|
||
INVESTING ACTIVITIES
|
|
|
|
|
|
Additions to vessels and equipment
|
|
(6,315
|
)
|
(1,673
|
)
|
Acquisition of Hilli Common Units
|
|
(10,296
|
)
|
—
|
|
Dividends received from affiliate
|
|
3,371
|
|
—
|
|
Net cash used in investing activities
|
|
(13,240
|
)
|
(1,673
|
)
|
|
|
|
|
||
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from issuance of equity, net of issue costs
|
|
—
|
|
13,854
|
|
Repayment of debt, including related parties
|
|
(21,251
|
)
|
(91,575
|
)
|
Proceeds from debt
|
|
25,000
|
|
1,419
|
|
Repayments of obligation under capital lease
|
|
(384
|
)
|
(317
|
)
|
Advances from related party for
Methane Princess
lease security deposit
|
|
146
|
|
164
|
|
Cash distributions paid
|
|
(31,673
|
)
|
(45,000
|
)
|
Financing costs paid
|
|
—
|
|
(1,699
|
)
|
Common units buy-back and cancellation
|
|
—
|
|
(8,003
|
)
|
Net cash used in financing activities
|
|
(28,162
|
)
|
(131,157
|
)
|
Effect of exchange rate changes on cash
|
|
1,825
|
|
4,490
|
|
Net decrease in cash, cash equivalents and restricted cash
(1)
|
|
(11,016
|
)
|
(100,143
|
)
|
Cash, cash equivalents and restricted cash at beginning of period
(1) (2)
|
|
269,092
|
|
429,887
|
|
Cash, cash equivalents and restricted cash at end of period
(1) (2)
|
|
258,076
|
|
329,744
|
|
|
March 31,
|
December 31,
|
March 31,
|
December 31,
|
||||
(in thousands of $)
|
2019
|
2018
|
2018
|
2017
|
||||
Cash and cash equivalents
|
74,412
|
|
96,648
|
|
142,629
|
|
246,954
|
|
Restricted cash and short-term deposits - current
|
43,043
|
|
31,330
|
|
28,752
|
|
27,306
|
|
Restricted cash - non-current
|
140,621
|
|
141,114
|
|
158,363
|
|
155,627
|
|
|
258,076
|
|
269,092
|
|
329,744
|
|
429,887
|
|
(in thousands of $)
|
Partners’ capital
|
Accumulated
Other Comprehensive
Income/(Loss) |
Total Before
Non-Controlling
Interest |
Non-Controlling
Interest |
Total Equity
|
||
Preferred units
|
Common
Units
|
General Partner Units and IDRs
(1)
|
|||||
Consolidated balance at December 31, 2017
|
132,991
|
585,440
|
52,600
|
26
|
771,057
|
76,544
|
847,601
|
Net income
|
2,985
|
11,534
|
236
|
—
|
14,755
|
147
|
14,902
|
Other comprehensive loss
|
—
|
—
|
—
|
(26)
|
(26)
|
—
|
(26)
|
Cash distributions
|
(2,985)
|
(40,649)
|
(830)
|
—
|
(44,464)
|
—
|
(44,464)
|
Net proceeds from equity issuances
|
—
|
13,563
|
291
|
—
|
13,854
|
—
|
13,854
|
Unit options expense
|
—
|
58
|
—
|
—
|
58
|
—
|
58
|
Common units acquired and cancelled
|
—
|
(8,003)
|
—
|
—
|
(8,003)
|
—
|
(8,003)
|
Consolidated balance at March 31, 2018
|
132,991
|
561,943
|
52,297
|
—
|
747,231
|
76,691
|
823,922
|
(in thousands of $)
|
Partners’ capital
|
Accumulated
Other Comprehensive
Income/(Loss) |
Total Before
Non-Controlling
Interest |
Non-Controlling
Interest |
Total Equity
|
||
Preferred Units
|
Common
Units
|
General Partner Units and IDRs
(1)
|
|||||
Consolidated balance at December 31, 2018
|
132,991
|
495,576
|
51,048
|
—
|
679,615
|
79,902
|
759,517
|
Net (loss)/income
|
3,019
|
(17,657)
|
(360)
|
—
|
(14,998)
|
1,711
|
(13,287)
|
Cash distributions
|
(3,019)
|
(28,073)
|
(581)
|
—
|
(31,673)
|
—
|
(31,673)
|
Unit options expense
|
—
|
59
|
—
|
—
|
59
|
—
|
59
|
Consolidated balance at March 31, 2019
|
132,991
|
449,905
|
50,107
|
—
|
633,003
|
81,613
|
714,616
|
|
Three Months Ended March 31, 2018
|
|||||
(in thousands of $)
|
As previously reported
|
Adjustments Increase/
(Decrease)
|
As adjusted
|
|||
Gains/(losses) on derivative instruments
|
—
|
|
10,235
|
|
10,235
|
|
Other financial items, net
|
9,591
|
|
(10,235
|
)
|
(644
|
)
|
|
Three Months Ended March 31, 2018
|
|||||
(in thousands of $)
|
As previously reported
|
Adjustments Increase/
(Decrease)
|
As adjusted
|
|||
Change in market value of derivatives
|
—
|
|
(10,668
|
)
|
(10,668
|
)
|
Change in assets and liabilities:
|
|
|
|
|||
Other current assets and other non-current assets
|
(13,858
|
)
|
13,950
|
|
92
|
|
Other current liabilities
|
(386
|
)
|
(3,282
|
)
|
(3,668
|
)
|
Standard
|
Description
|
Date of Adoption
|
Effect on our Consolidated Financial Statements or Other Significant Matters
|
ASU 2016-13
Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
and subsequent amendment ASU 2018-19
Codification Improvements to Topic 326 ‘‘Financial Instruments-Credit Losses”
|
Replaces the incurred loss impairment methodology with an expected loss methodology that requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates.
|
January 1, 2020
|
Under evaluation
|
ASU 2018-13
Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement
|
Removes some disclosure requirements relating to transfers between Level 1 and Level 2 of the FV hierarchy. Introduces new disclosure requirements for Level 3 measurements
|
January 1, 2020
|
No material impact on our disclosure requirements as we have no Level 3 measurements.
|
ASU 2018-17
Consolidation (Topic 810) - Targeted Improvements to Related Party Guidance for Variable Interest Entities
|
For the purposes of determining whether a decision making fee is a variable interest, a company is now required to consider indirect interests held through related parties under common control on a proportionate basis as opposed to as a direct investment in the entity.
|
January 1, 2020
|
No impact on consolidation assessments.
|
(in thousands of $)
|
2019
(1)
|
2020
|
2021
|
2022
|
2023
|
After 2023
|
Golar Eskimo*
|
19,135
|
24,113
|
22,873
|
21,927
|
21,094
|
36,502
|
(in thousands of $)
|
March 31, 2019
|
December 31, 2018
|
||
Liabilities
|
|
|
||
Short-term debt (refer to note 10)
|
12,843
|
|
11,836
|
|
Long-term debt (refer to note 10)
|
181,830
|
|
187,401
|
|
•
|
LNG carriers are vessels that transport LNG and are compatible with many LNG loading and receiving terminals globally.
Four
of our vessels are LNG carriers;
|
•
|
FSRUs are vessels that are permanently located offshore to regasify LNG.
Six
of our vessels are FSRUs; and
|
•
|
FLNG is a vessel that is moored above an offshore natural gas field on a long-term basis. The vessel produces, liquefies and stores LNG at sea and transfers it to LNG carriers that berth while offshore.
|
|
Three Months Ended March 31, 2019
|
|||||||||||||
(in thousands of $)
|
FSRU
|
LNG Carrier
|
FLNG
(1)
|
Unallocated
(2)
|
Total Segment Reporting
|
Elimination
(3)
|
Consolidated Reporting
|
|||||||
Statement of operations:
|
|
|
|
|
|
|
|
|||||||
Total operating revenues
|
53,405
|
|
16,505
|
|
26,018
|
|
—
|
|
95,928
|
|
(26,018
|
)
|
69,910
|
|
Vessel operating expenses
|
(11,793
|
)
|
(5,017
|
)
|
(5,953
|
)
|
—
|
|
(22,763
|
)
|
5,953
|
|
(16,810
|
)
|
Voyage and commission expenses
|
(1,124
|
)
|
(734
|
)
|
(180
|
)
|
—
|
|
(2,038
|
)
|
180
|
|
(1,858
|
)
|
Administrative expenses
(4)
|
(2,377
|
)
|
(1,489
|
)
|
(308
|
)
|
—
|
|
(4,174
|
)
|
308
|
|
(3,866
|
)
|
Segment EBITDA
|
38,111
|
|
9,265
|
|
19,577
|
|
—
|
|
66,953
|
|
(19,577
|
)
|
47,376
|
|
Balance sheet (at end of period):
|
|
|
|
|
|
|
|
|||||||
Total assets
(5)
|
1,110,774
|
|
529,302
|
|
—
|
|
562,697
|
|
2,202,773
|
|
—
|
|
2,202,773
|
|
Investment in affiliate
|
—
|
|
—
|
|
203,448
|
|
—
|
|
203,448
|
|
—
|
|
203,448
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2018
|
|||||||||||||
(in thousands of $)
|
FSRU
|
LNG Carrier
|
FLNG
(1)
|
Unallocated
(2)
|
Total Segment Reporting
|
Elimination
(3)
|
Consolidated Reporting
|
|||||||
Statement of operations:
|
|
|
|
|
|
|
|
|||||||
Total operating revenues
|
62,547
|
|
11,667
|
|
—
|
|
—
|
|
74,214
|
|
—
|
|
74,214
|
|
Vessel operating expenses
|
(11,080
|
)
|
(5,280
|
)
|
—
|
|
—
|
|
(16,360
|
)
|
—
|
|
(16,360
|
)
|
Voyage and commission expenses
|
(1,517
|
)
|
(1,370
|
)
|
—
|
|
—
|
|
(2,887
|
)
|
—
|
|
(2,887
|
)
|
Administrative expenses
(4)
|
(2,001
|
)
|
(1,251
|
)
|
—
|
|
—
|
|
(3,252
|
)
|
—
|
|
(3,252
|
)
|
Segment EBITDA
|
47,949
|
|
3,766
|
|
—
|
|
—
|
|
51,715
|
|
—
|
|
51,715
|
|
Balance sheet (at end of period):
|
|
|
|
|
|
|
|
|||||||
Total assets
(5)
|
1,137,523
|
|
539,832
|
|
—
|
|
631,541
|
|
2,308,896
|
|
—
|
|
2,308,896
|
|
|
Three Months Ended March 31,
|
|||
(in thousands of $)
|
2019
|
2018
|
||
Mark-to-market (losses)/gains for interest rate swaps
|
(16,484
|
)
|
10,693
|
|
Net interest income/(expense) on un-designated interest rate swaps
|
2,517
|
|
(458
|
)
|
(Losses)/gains on derivative instruments
|
(13,967
|
)
|
10,235
|
|
|
|
|
||
Amortization of debt guarantee (see note 12)
|
539
|
|
—
|
|
Foreign exchange losses on capital lease obligation and related restricted cash
|
(807
|
)
|
(152
|
)
|
Foreign exchange losses on operations
|
(150
|
)
|
(281
|
)
|
Financing arrangement fees and other costs
|
(112
|
)
|
(211
|
)
|
Other financial items, net
|
(530
|
)
|
(644
|
)
|
|
|
|
||
(Losses)/gains on derivatives and Other financial items, net
|
(14,497
|
)
|
9,591
|
|
(in thousands of $)
|
|
Total
|
|
2019
(1)
|
|
222,136
|
|
2020
|
|
227,664
|
|
2021
|
|
219,535
|
|
2022
|
|
219,535
|
|
2023 and thereafter
|
|
530,988
|
|
Total
|
|
1,419,858
|
|
(in thousands of $)
|
|
Three Months Ended March 31, 2019
|
|
Operating lease income
|
|
68,696
|
|
Variable lease income
(1)
|
|
1,214
|
|
Total operating lease income
|
|
69,910
|
|
(in thousands of $)
|
|
|
|
Equity in net assets of affiliate at January 1, 2019
|
|
206,180
|
|
Dividend
|
|
(2,997
|
)
|
Equity in net earnings of affiliate
|
|
265
|
|
Equity in net assets of affiliate at March 31, 2019
|
|
203,448
|
|
(in thousands of $)
|
|
Balance at March 31, 2019
|
|
Balance at December 31, 2018
|
||
Balance sheet
|
|
|
|
|
||
Current assets
|
|
66,193
|
|
|
124,642
|
|
Non-current assets
|
|
1,407,256
|
|
|
1,392,711
|
|
Current liabilities
|
|
(49,917
|
)
|
|
(109,773
|
)
|
Non-current liabilities
|
|
(984,478
|
)
|
|
(1,004,184
|
)
|
|
|
|
|
March 31, 2019
|
December 31, 2018
|
||||||
(in thousands of $)
|
Fair value
Hierarchy
|
Carrying
Value
|
Fair
Value
|
Carrying
Value
|
Fair
Value
|
||||
Non-Derivatives:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
Level 1
|
74,412
|
|
74,412
|
|
96,648
|
|
96,648
|
|
Restricted cash and short-term deposits
|
Level 1
|
183,664
|
|
183,664
|
|
172,444
|
|
172,444
|
|
2015 and 2017 Norwegian Bonds
(1)
|
Level 1
|
(400,000
|
)
|
(401,973
|
)
|
(400,000
|
)
|
(396,843
|
)
|
Short and long-term debt — floating
(2)
|
Level 2
|
(886,847
|
)
|
(886,847
|
)
|
(883,100
|
)
|
(883,100
|
)
|
Obligation under capital lease
(2)
|
Level 2
|
(121,931
|
)
|
(121,931
|
)
|
(119,683
|
)
|
(119,683
|
)
|
|
|
|
|
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
Interest rate swaps asset
(3)
|
Level 2
|
10,302
|
|
10,302
|
|
17,617
|
|
17,617
|
|
Interest rate swaps liability
(3)
|
Level 2
|
(17,922
|
)
|
(17,922
|
)
|
(8,753
|
)
|
(8,753
|
)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||
(in thousands of $)
|
Gross amounts presented in the consolidated balance sheet
|
|
Gross amounts not offset in the consolidated balance sheet subject to netting agreements
|
|
Net amount
|
|
Gross amounts presented in the consolidated balance sheet
|
|
Gross amounts not offset in the consolidated balance sheet subject to netting agreements
|
|
Net amount
|
||||||
Total asset derivatives
|
10,302
|
|
|
(2,951
|
)
|
|
7,351
|
|
|
17,617
|
|
|
(3,281
|
)
|
|
14,336
|
|
Total liability derivatives
|
(17,922
|
)
|
|
2,951
|
|
|
(14,971
|
)
|
|
(8,753
|
)
|
|
3,281
|
|
|
5,472
|
|
Instrument
(in thousands of $)
|
Notional amount
|
Maturity Dates
|
Fixed Interest Rates
|
||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
|
Receiving floating, pay fixed
|
1,763,203
|
|
2019
|
to
|
2026
|
1.07
|
%
|
to
|
2.90%
|
|
Three Months Ended March 31,
|
|||
(in thousands of $)
|
2019
|
2018
|
||
Transactions with Golar and affiliates:
|
|
|
|
|
Management and administrative services fees (a)
|
(2,436
|
)
|
(1,889
|
)
|
Ship management fees (b)
|
(1,115
|
)
|
(1,300
|
)
|
Income on deposits paid to Golar (c)
|
—
|
|
2,247
|
|
Distributions with Golar, net (d)
|
(6,163
|
)
|
(13,088
|
)
|
(in thousands of $)
|
March 31,
2019 |
|
December 31,
2018 |
||
Balances due from/(to) Golar and affiliates (e)
|
1,849
|
|
|
(4,091
|
)
|
Methane Princess
lease security deposit movements (f)
|
2,563
|
|
|
2,854
|
|
Total
|
4,412
|
|
|
(1,237
|
)
|
•
|
free liquid assets of at least
$30 million
throughout the Hilli facility period;
|
•
|
a maximum net debt to EBITDA ratio for the previous 12 months of
6.5
:1; and
|
•
|
a consolidated tangible net worth of
$123.95 million
.
|
(in thousands of $)
|
At March 31, 2019
|
|
At December 31, 2018
|
||
Book value of vessels secured against long-term loans and capital lease
|
1,507,686
|
|
|
1,517,297
|
|
|
Three Months Ended March 31,
|
|||||
(in thousands of $, except per unit data)
|
2019
|
2018
|
||||
Common unitholders' interest in net (loss)/income
|
(17,657
|
)
|
11,534
|
|
||
Less: distributions paid
(1)
|
(28,074
|
)
|
(40,525
|
)
|
||
Over distributed earnings
|
(45,731
|
)
|
(28,991
|
)
|
||
|
|
|
||||
Basic:
|
|
|
||||
Weighted average Common Units outstanding (in thousands)
|
69,455
|
|
70,173
|
|
||
Diluted:
|
|
|
||||
Weighted average Common Units outstanding (in thousands)
|
69,455
|
|
70,173
|
|
||
Earn-out units
(2)
|
—
|
|
374
|
|
||
Common unit and common unit equivalents
|
69,455
|
|
70,547
|
|
||
|
|
|
||||
(Loss)/earnings per unit (basic and diluted):
|
|
|
|
|
||
Basic - Common unitholders
|
$
|
(0.25
|
)
|
$
|
0.16
|
|
Diluted - Common unitholders
|
$
|
(0.25
|
)
|
$
|
0.16
|
|
|
|
|
||||
Cash distributions declared and paid in the period per common unit
(3)
:
|
$
|
0.40
|
|
$
|
0.58
|
|
Subsequent event:
Cash distributions declared and paid per common unit relating to the period
(4)
:
|
$
|
0.40
|
|
$
|
0.58
|
|