Golar LNG Partners reported net income of $32.7 million and operating income of $53.8 million for the first quarter, as compared to net income of $30.3 million and operating income of $45.2 million for the first quarter of 2013.
The improvement in operating income over the same period in 2013 is a reflection of three factors. First, the Golar Spirit commenced 2013 in drydock and this resulted in approximately 57 days of off-hire and associated positioning costs during that quarter. Secondly, during the intervening period, there was a biennial uplift to the capital component of the Golar Spirit and Golar Winter and a further increase in the charter rate for Golar Winter also took effect to compensate for the completion of the modification works. Thirdly, the Partnership completed the acquisition of the Golar Maria on February 7, 2013 and in so doing assumed the operating income of this vessel for the remainder of the quarter. First quarter 2014 operating income incorporates a full quarter’s contribution from the Golar Maria. The improved results are partially offset by increased depreciation and amortization as a consequence of the acquisition of the Golar Maria, the additional investment in Golar Winter modifications and four vessel drydocks over the intervening 12 months.
Taking account of the reduced number of calendar days in the first quarter and four day revenue contribution from the recently acquired Golar Igloo, revenue net of voyage expenses was consistent with the fourth quarter. Operating expenses increased by $1 million largely due to an increase in repairs and maintenance expenditure. Administration expenses were, however, marginally lower in the first quarter by $0.1 million.
Press Release, May 28, 2014; Image: Golar