Höegh LNG Partners, the spin-off of Norway’s Höegh LNG, reported on Monday a net income of $16.5 million in the fourth quarter of 2015, up from $7.5 million for the same period a year ago.
The net income for both periods was impacted by the “unrealized gains (losses) on derivative instruments” mainly on the Partnership’s share of equity in earnings of joint ventures. Excluding all the losses on derivatives, net income for the fourth quarter was $10.6 million, down from $14 million in the fourth quarter of 2014, Höegh LNG Partners said in a statement.
Time charter revenues for the quarter were $23.4 million, an increase of $10.3 million from the three months ended December 31, 2014.
“Höegh LNG Partners continues to show solid earnings that reflect the fixed rate nature of its contracts and the absence of any direct commodity price exposure,” Richard Tyrrell, CEO and CFO of Höegh LNG Partners said.
“The 22% increase in cash distributions is mainly attributable to the successful drop down of the FSRU Höegh Gallant. The Partnership’s vessels have charters with an average remaining term of 14 years. With no capital commitments or near term debt maturities, the Partnership is a stable platform from which to prepare for future drop downs from the healthy pipeline of candidates from Höegh LNG,” Tyrrell added.