Golar LNG Partners reported net income of $47.6 million and operating income of $54.7 million for the fourth quarter, as compared to net income of $35.4 million and operating income of $55.8 million for the third quarter of 2013.
The improvement in operating income over the same period in 2012 is a reflection of three factors. First, the Golar Spirit entered her first post retrofit drydock during December 2012 and this resulted in approximately three weeks of offhire and associated positioning costs during that quarter. Secondly, during the intervening period 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 to compensate for modification works completed took effect. Thirdly, the fourth quarter results include the contribution from Golar Maria. Comparable results for 2012 do not as this vessel was not under the common control of Golar at the time of her acquisition by the Partnership in February 2013. 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.
As anticipated, fourth quarter 2013 operating results were broadly in line with the third quarter. Revenue net of voyage expenses and operating expenses were both consistent with the prior quarter. Administration expenses were however increased in the fourth quarter by $0.5 million.
Net interest expenses decreased to $10.5 million for the fourth quarter of 2013 compared to $11.1 million for the third quarter. The reduction primarily reflects the maturity of a relatively high cost interest rate swap that matured during November.
On December 11, the Partnership received net proceeds of $150 million in respect of public and General Partner units issued in its fourth follow-on equity offering. Of this, $20 million was applied against a revolving facility provided by Golar and a further $70 million was paid down on two other revolving facilities. This will moderately lower interest expenses for the first quarter of 2014. As at December 31, the Partnership has undrawn facilities of $155 million.
LNG World News Staff, February 28, 2014; Image: Golar