Höegh LNG Partners, the Bermuda-based limited partnership formed by Norway’s Höegh LNG, reported a rise in its net income for the fourth quarter of 2016.
In its latest report, Höegh LNG Partners said its net income for the three months ended December 31, 2016, reached US$24.9 million, representing a $7.8 million increase from $17.1 million reported in the corresponding period a year before.
The net income for both periods was significantly impacted by unrealized gains on derivative instruments on the partnership’s share of equity in earnings of joint ventures.
Excluding all of the unrealized gains on derivative instruments, net income for the three months ended December 31, 2016, was $8.2 million, a decrease of $3.0 million from $11.2 million for the three months December 31, 2015, the partnership said.
Looking forward, Höegh LNG Partners, expects to report a reduced operating income by the equivalent of approximately five days of offhire, due to unscheduled repairs and maintenance during the first quarter of 2017 on the Höegh Gallant.
However, the Höegh Grace completed the commissioning phase in Colombia in early December 2016 and immediately commenced commercial operations under the long-term contract with Sociedad Portaria El Cayao in which the partnership acquired a 51 percent stake and expects to purchase the remaining 49 percent and expects the results of the Höegh Grace to contribute to the partnership’s earnings for the full first quarter of 2017.