Cover Page
Cover Page - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Entity Information [Line Items] | ||
Document Type | 20-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 001-35123 | |
Entity Registrant Name | GOLAR LNG PARTNERS LP | |
Entity Incorporation, State or Country Code | 1T | |
Entity Address, Address Line One | 2nd Floor, S.E. Pearman Building | |
Entity Address, Address Line Two | 9 Par-la-Ville Road | |
Entity Address, City or Town | Hamilton | |
Entity Address, Postal Zip Code | HM 11 | |
Entity Address, Country | BM | |
Entity Common Stock, Shares Outstanding | 69,301,636 | |
Preferred units, outstanding (in shares) | 5,520,000 | 5,520,000 |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Document Accounting Standard | U.S. GAAP | |
Entity Shell Company | false | |
Entity Central Index Key | 0001415916 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Business Contact | ||
Entity Information [Line Items] | ||
Entity Address, Address Line One | 2nd Floor, S.E. Pearman Building | |
Entity Address, Address Line Two | 9 Par-la-Ville Road | |
Entity Address, City or Town | Hamilton | |
Entity Address, Postal Zip Code | HM 11 | |
Entity Address, Country | BM | |
Contact Personnel Name | Graham Robjohns | |
City Area Code | 441 | |
Local Phone Number | 295-4705 | |
8.75% Series A Cumulative Redeemable Preferred Units | ||
Entity Information [Line Items] | ||
Preferred units, outstanding (in shares) | 5,520,000 | |
NASDAQ/NMS (GLOBAL MARKET) | Common Units Representing Limited Partner Interest | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common units representing limited partner interests | |
Trading Symbol | GMLP | |
Security Exchange Name | NASDAQ | |
NASDAQ/NMS (GLOBAL MARKET) | 8.75% Series A Cumulative Redeemable Preferred Units | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 8.75% Series A Cumulative Redeemable Preferred Units | |
Trading Symbol | GMLPP | |
Security Exchange Name | NASDAQ |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating revenues | |||
Total operating revenues | $ 299,652 | $ 346,650 | $ 433,102 |
Operating expenses | |||
Vessel operating expenses | (60,958) | (65,247) | (68,278) |
Voyage and commission expenses | (7,648) | (11,222) | (9,694) |
Administrative expenses | (13,412) | (14,809) | (15,210) |
Depreciation and amortization | (83,239) | (98,812) | (103,810) |
Total operating expenses | (165,257) | (190,090) | (196,992) |
Operating income | 134,395 | 156,560 | 236,110 |
Other non-operating income | 4,795 | 449 | 922 |
Financial income/(expense) | |||
Interest income | 13,278 | 8,950 | 7,804 |
Interest expense | (79,791) | (80,650) | (75,425) |
(Losses)/gains on derivative instruments | (38,796) | 8,106 | 7,796 |
Other financial items, net | 675 | (592) | (15,363) |
Net financial expenses | (104,634) | (64,186) | (75,188) |
Income before tax, equity in net earnings of affiliate and non-controlling interests | 34,556 | 92,823 | 161,844 |
Income taxes | (17,962) | (17,465) | (16,996) |
Equity in net earnings of affiliate | 4,540 | 1,190 | 0 |
Net income | 21,134 | 76,548 | 144,848 |
Net income attributable to non-controlling interests | (3,329) | (3,358) | (15,568) |
Net income attributable to Golar LNG Partners LP Owners | 17,805 | 73,190 | 129,280 |
General Partner’s interest in net income | 115 | 1,223 | 2,544 |
Common unitholders’ interest in net income | 5,648 | 59,925 | 124,656 |
Preferred Units | |||
Financial income/(expense) | |||
Preferred unitholders’ interest in net income | 12,042 | 12,042 | 2,080 |
Common Units | |||
Financial income/(expense) | |||
Common unitholders’ interest in net income | $ 5,648 | $ 59,925 | $ 124,656 |
Common Units | |||
Earnings per unit: | |||
Basic - Common units (in dollars per share) | $ 0.08 | $ 0.86 | $ 1.82 |
Diluted - Common units (in dollars per share) | 0.08 | 0.86 | 1.80 |
Cash distributions declared and paid per unit in the period (in dollars per share) | $ 1.62 | $ 1.96 | $ 2.31 |
Time Charter | |||
Operating revenues | |||
Total operating revenues | $ 299,652 | $ 346,650 | $ 415,679 |
Related Parties | |||
Operating revenues | |||
Total operating revenues | $ 0 | $ 0 | $ 17,423 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21,134 | $ 76,548 | $ 144,848 | |
Unrealized net gain/(loss) on qualifying cash flow hedging instruments: | ||||
Other comprehensive income (loss) before reclassification | [1] | 0 | 0 | 94 |
Amounts reclassified from accumulated other comprehensive (loss)/income to the statement of operations | [2] | 0 | (26) | 4,985 |
Net other comprehensive (loss)/income | 0 | (26) | 5,079 | |
Comprehensive income | 21,134 | 76,522 | 149,927 | |
Comprehensive income attributable to: | ||||
Golar LNG Partners LP Owners | 17,805 | 73,164 | 134,359 | |
Non-controlling interests | 3,329 | 3,358 | 15,568 | |
Comprehensive income | $ 21,134 | $ 76,522 | $ 149,927 | |
[1] | There is no tax impact on any of the periods presented. | |||
[2] | From January 1, 2017, we de-designated the cross currency interest rate swap associated with our 2012 High-Yield Bonds as a cash flow hedge. Accordingly, the amount recorded in accumulated other comprehensive income of $5.0 million was reclassified to "Other financial items" in the consolidated statement of operations in the year ended December 31, 2017. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Other Financial Items | $ 15,363 |
Reclassification out of Accumulated Other Comprehensive Income | |
Other Financial Items | $ (5,000) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 47,661 | $ 96,648 |
Restricted cash and short-term deposits | 46,333 | 31,330 |
Trade accounts receivable | 17,303 | 27,986 |
Amounts due from related parties | 5,098 | 0 |
Net Investment in Lease, Current | 2,308 | 0 |
Inventories | 2,702 | 2,031 |
Current portion of investment in leased vessel, net | 11,894 | 6,534 |
Total current assets | 133,299 | 164,529 |
Non-current assets | ||
Restricted cash | 135,928 | 141,114 |
Investment in affiliate | 193,270 | 206,180 |
Vessels and equipment, net | 1,369,665 | 1,535,757 |
Vessel under finance lease, net | 108,433 | |
Vessel under finance lease, net | 114,711 | |
Investment in leased vessel, net | 111,829 | |
Intangible assets, net | 50,409 | 60,369 |
Other non-current assets | 2,779 | 18,157 |
Total assets | 2,105,612 | 2,240,817 |
Current liabilities | ||
Current portion of long-term debt | 225,254 | 75,451 |
Current portion of obligation under finance lease | 1,990 | 1,564 |
Trade accounts payable | 2,756 | 5,593 |
Accrued expenses | 23,451 | 27,229 |
Amounts due to related parties | 0 | 1,237 |
Other current liabilities | 55,703 | 25,033 |
Total current liabilities | 309,154 | 136,107 |
Non-current liabilities | ||
Long-term debt | 991,679 | 1,196,899 |
Obligation under finance lease | 120,789 | 118,119 |
Other non-current liabilities | 31,296 | 30,175 |
Total liabilities | 1,452,918 | 1,481,300 |
Commitments and contingencies | ||
Partners’ capital: | ||
Common unitholders: 69,301,636 units issued and outstanding at December 31, 2019 (2018: 69,455,364) | 387,631 | 495,576 |
Preferred unitholders: 5,520,000 preferred units issued and outstanding at December 31, 2019 (2018: 5,520,000) | 132,991 | 132,991 |
General partner interest: 1,436,391 units issued and outstanding at December 31, 2019 (2018: 1,436,391) | 48,841 | 51,048 |
Total partners’ capital before non-controlling interests | 569,463 | 679,615 |
Non-controlling interests | 83,231 | 79,902 |
Total equity | 652,694 | 759,517 |
Total liabilities and equity | $ 2,105,612 | $ 2,240,817 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common unit, issued (in shares) | 69,301,636 | 69,455,364 |
Common units, outstanding (in shares) | 69,301,636 | 69,455,364 |
Preferred units, issued (in shares) | 5,520,000 | 5,520,000 |
Preferred units, outstanding (in shares) | 5,520,000 | 5,520,000 |
General Partners Units, issued (in shares) | 1,436,391 | 1,436,391 |
General Partners Units, outstanding (in shares) | 1,436,391 | 1,436,391 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Operating activities | ||||
Net income | $ 21,134,000 | $ 76,548,000 | $ 144,848,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization expenses | 83,239,000 | 98,812,000 | 103,810,000 | |
Equity in net earnings of affiliate | (4,540,000) | (1,190,000) | 0 | |
Deferred tax expense | 3,620,000 | 1,728,000 | 7,171,000 | |
Amortization of deferred charges and debt guarantee, net | 2,683,000 | 7,154,000 | 5,969,000 | |
Foreign exchange losses/(gains) | 941,000 | (995,000) | 3,657,000 | |
Unit options expense | 207,000 | 234,000 | 238,000 | |
Drydocking expenditure | (10,463,000) | (25,522,000) | (20,660,000) | |
Dividends received from affiliates | 2,328,000 | 1,191,000 | 0 | |
Realized loss on bond repurchase | 0 | 0 | 6,327,000 | |
Interest element included in obligation under finance lease | 3,000 | (55,000) | (44,000) | |
Gain on recognition of net investment in leased vessel | (4,195,000) | 0 | 0 | |
Sales-type lease payments received in excess of interest income | 2,030,000 | 0 | 0 | |
Change in market value of derivatives | 43,746,000 | (5,921,000) | (15,894,000) | |
Change in assets and liabilities: | ||||
Trade accounts receivable | 10,682,000 | (9,730,000) | 2,189,000 | |
Inventories | (670,000) | 1,475,000 | 458,000 | |
Other current assets and non-current assets | (6,421,000) | 3,906,000 | 1,529,000 | |
Amounts due to/(from) related parties | 3,622,000 | (319,000) | 17,856,000 | |
Trade accounts payable | (2,836,000) | (3,610,000) | 1,417,000 | |
Accrued expenses | 3,414,000 | (6,566,000) | 9,889,000 | |
Other current liabilities | 4,183,000 | 26,000 | 1,670,000 | |
Net cash provided by operating activities | 152,707,000 | 137,166,000 | 270,430,000 | |
Investing activities | ||||
Additions to vessels and equipment | (10,232,000) | (10,735,000) | (426,000) | |
Dividends received from affiliates | 14,216,000 | 755,000 | 0 | |
Acquisition of investment in affiliate from Golar | (10,296,000) | (9,652,000) | (70,000,000) | |
Net cash used in investing activities | (6,312,000) | (19,632,000) | (70,426,000) | |
Financing activities | ||||
Proceeds from long-term debt (including related parties) | 40,000,000 | 51,419,000 | 375,000,000 | |
Repayments of long-term debt (including related parties) | (100,156,000) | (155,902,000) | (228,816,000) | |
Repurchase of high yield bonds and related swaps | 0 | 0 | (234,197,000) | |
Repayments of obligation under finance lease | (1,569,000) | (1,286,000) | (821,000) | |
Financing arrangement fees and other costs | 0 | (1,699,000) | (5,377,000) | |
Proceeds from issuances of equity, net of issue costs | 0 | 13,854,000 | 255,040,000 | |
Common units repurchased and canceled | (1,565,000) | (13,980,000) | 0 | |
Advances from/(releases to) related party for Methane Princess lease security deposit | 601,000 | 633,000 | (1,498,000) | |
Cash distributions paid | (126,599,000) | (165,250,000) | (161,060,000) | |
Dividends paid to non-controlling interests | 0 | 0 | (7,000,000) | |
Net cash used in financing activities | (189,288,000) | (272,211,000) | (8,729,000) | |
Effect of exchange rate changes on cash | 3,723,000 | (6,118,000) | 10,487,000 | |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (39,170,000) | (160,795,000) | 201,762,000 | |
Cash, cash equivalents and restricted cash at beginning of year | [1] | 269,092,000 | 429,887,000 | 228,125,000 |
Cash, cash equivalents and restricted cash at end of year | [1] | 229,922,000 | 269,092,000 | 429,887,000 |
Cash paid during the year for: | ||||
Interest expense | 75,892,000 | 81,962,000 | 62,670,000 | |
Income taxes | 13,791,000 | 5,929,000 | 4,470,000 | |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | [1] | $ 229,922,000 | $ 429,887,000 | $ 228,125,000 |
[1] | The following table identifies the balance sheet line-items included in "cash, cash equivalents and restricted cash" presented in the consolidated statements of cash flows: |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands | Total | Accumulated Other Comprehensive Income/ (loss) | [1] | Total before Non-controlling interest | Non-controlling Interest | General Partner Units and IDRs | Common Units | Common UnitsTotal before Non-controlling interest | Common UnitsLimited Partner | Preferred Units | Preferred UnitsTotal before Non-controlling interest | Preferred UnitsLimited Partner | |
Balance at beginning of the period at Dec. 31, 2016 | $ 604,429 | $ (5,053) | $ 536,453 | $ 67,976 | $ 50,942 | [2] | $ 490,564 | $ 0 | |||||
Increase (Decrease) in Partners' Capital | |||||||||||||
Net income | 144,848 | 129,280 | 15,568 | 2,544 | [2] | 124,656 | 2,080 | ||||||
Cash distributions | (163,141) | (163,141) | (3,221) | [2] | (157,840) | (2,080) | |||||||
Non-controlling interest dividends | (7,000) | (7,000) | |||||||||||
Other comprehensive income (loss) | 5,079 | 5,079 | 5,079 | ||||||||||
Net proceeds from issuance of units | 2,214 | [2] | $ 122,116 | $ 122,116 | 119,902 | $ 132,991 | $ 132,991 | 132,991 | |||||
Conversion of earn-out units | 8,041 | 8,041 | 121 | [2] | 7,920 | ||||||||
Grant of unit options | 238 | 238 | 238 | ||||||||||
Balance at end of the period at Dec. 31, 2017 | 847,601 | 26 | 771,057 | 76,544 | 52,600 | [2] | 585,440 | 132,991 | |||||
Increase (Decrease) in Partners' Capital | |||||||||||||
Net income | 76,548 | 73,190 | 3,358 | 1,223 | [2] | 59,925 | |||||||
Cash distributions | (164,714) | (164,714) | (3,066) | [2] | (149,606) | ||||||||
Other comprehensive income (loss) | (26) | (26) | (26) | ||||||||||
Net proceeds from issuance of units | 291 | [2] | $ 13,854 | $ 13,854 | 13,563 | ||||||||
Grant of unit options | 234 | 234 | 234 | ||||||||||
Common units repurchased and canceled | (13,980) | (13,980) | (13,980) | ||||||||||
Balance at end of the period at Dec. 31, 2018 | 759,517 | 0 | 679,615 | 79,902 | 51,048 | [2] | 495,576 | 132,991 | |||||
Increase (Decrease) in Partners' Capital | |||||||||||||
Net income | 21,134 | 17,805 | 3,329 | 115 | [2] | 5,648 | 12,042 | ||||||
Cash distributions | (126,599) | (126,599) | (2,322) | [2] | (112,235) | (12,042) | |||||||
Other comprehensive income (loss) | 0 | ||||||||||||
Grant of unit options | 207 | 207 | 207 | ||||||||||
Common units repurchased and canceled | (1,565) | (1,565) | (1,565) | ||||||||||
Balance at end of the period at Dec. 31, 2019 | $ 652,694 | $ 0 | $ 569,463 | $ 83,231 | $ 48,841 | [1] | $ 387,631 | $ 132,991 | |||||
[1] | Relates to unrealized net losses/(income) on qualifying cash flow hedges. | ||||||||||||
[2] | As of December 31, 2019 and 2018, the carrying value of the equity attributable to the incentive distribution rights holders was $32.5 million |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | ||
Carrying value of equity attributable to the IDR holders | $ 652,694 | $ 759,517 | ||
General Partner Units and IDRs | ||||
Carrying value of equity attributable to the IDR holders | 48,841 | [1] | 51,048 | [2] |
Incentive Distribution Rights | General Partner Units and IDRs | ||||
Carrying value of equity attributable to the IDR holders | $ 32,500 | $ 32,500 | ||
[1] | Relates to unrealized net losses/(income) on qualifying cash flow hedges. | |||
[2] | As of December 31, 2019 and 2018, the carrying value of the equity attributable to the incentive distribution rights holders was $32.5 million |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL Golar LNG Partners LP (the “Partnership,” “we,” “our,” or “us”) is a publicly traded Marshall Islands limited partnership initially formed as a subsidiary of Golar LNG Limited (“Golar”) in September 2007, to own and operate LNG carriers and FSRUs under long-term charters. We completed our initial public offering (“IPO”) in April 2011. Our common units are traded on the NASDAQ under the symbol: GMLP. On July 12, 2018, we acquired an interest in the Hilli Episeyo (the “ Hilli ”), a floating liquefied natural gas (“FLNG”) vessel through the acquisition of 50% of the common units (the “Hilli Common Units”) in Golar Hilli LLC ("Hilli LLC") (the “Hilli Acquisition”) (see note 10). As of December 31, 2019 and 2018, Golar held 30.6% of our common units. In addition, as of December 31, 2019 and 2018, Golar held a 2% general partner interest in us and 100% of our incentive distribution rights (“IDRs”). As of December 31, 2019 and 2018, we had a fleet of six FSRUs, four LNG carriers and an interest in the Hilli . References to Golar in these consolidated financial statements refer, depending on the context, to Golar LNG Limited and to one or any more of its direct or indirect subsidiaries. |
BASIS OF PREPARATION AND SUMMAR
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of preparation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The accounting policies set out below have been applied consistently to all periods in these consolidated financial statements, except for accounting policy for “Leases” that changed as a result of adopting the requirements of Accounting Standards Updates ("ASU") 2016-02 “Leases (Topic 842)” (hereafter, ASC 842), effective for January 1, 2019. Principles of consolidation A variable interest entity (“VIE”) is defined by the accounting standard as a legal entity where either (a) equity interest holders, as a group, lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. A party that is a variable interest holder is required to consolidate a VIE if the holder has both (a) the power to direct the activities that most significantly impact the entity’s economic performance, and (b) the obligation to absorb losses that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. These consolidated financial statements include the financial statements of the entities listed in notes 4 and 5. Investments in entities in which we directly or indirectly hold more than 50% of the voting control are consolidated in the financial statements, as well as certain variable interest entities in which we are deemed to be the primary beneficiary. All intercompany balances and transactions are eliminated. The non-controlling interests of the above mentioned subsidiaries are included in the consolidated balance sheets and consolidated statements of operations as “Non-controlling interests”. Foreign currencies We and our subsidiaries’ functional currency is the U.S. dollar as the majority of the revenues are received in U.S. dollars and a majority of our expenditures are incurred in U.S. dollars. Our reporting currency is U.S. dollars. Transactions in foreign currencies during the year are translated into U.S. dollars at the rates of exchange in effect at the date of the transaction. Foreign currency monetary assets and liabilities are translated using rates of exchange at the balance sheet date. Foreign currency non-monetary assets and liabilities are translated using historical rates of exchange. Foreign currency transaction and translation gains or losses are included in the statements of operations. Lease accounting versus revenue accounting Contracts relating to our LNG carriers and FSRUs can take the form of operating leases, sales-type leases, direct financing leases and operating and services agreements. Although the substance of these contracts are similar, the accounting treatment varies. We outline our policies for determining the appropriate U.S. GAAP treatment below. To determine whether a contract conveys a lease agreement for a period of time, we assess whether, throughout the period of use, the customer has both of the following: • the right to obtain substantially all of the economic benefits from the use of the identified asset; and • the right to direct the use of that identified asset. If a contract relating to an asset fails to give the customer both of the above rights, we account for the agreement as a revenue contract. A contract relating to an asset will generally be accounted for as a revenue contract if the customer does not contract for substantially all of the capacity of the asset (i.e. another third party could contract for a meaningful amount of the asset capacity). Where we provide services unrelated to an asset contract, we account for the services as a revenue contract. Lease accounting When a contract is designated as a lease, we make an assessment on whether the contract is an operating lease, sales-type lease, or direct financing lease. An agreement will be a sales-type lease if any of the following conditions are met: • ownership of the asset is transferred at the end of the lease term; • the contract contains an option to purchase the asset which is reasonably certain to be exercised; • the lease term is for a major part of the remaining useful life of the contract, although contracts entered into the last 25% of the asset’s useful life are not subject to this criterion; • the discounted value of the fixed payments under the lease represent substantially all of the fair value of the asset; or • the asset is heavily customized such that it could not be used for another charter at the end of the term. Lessor accounting In making the classification assessment, we estimate the residual value of the underlying asset at the end of the lease term with reference to broker valuations. None of our lease contracts contain residual value guarantees, and any purchase options are disclosed in note 9. Agreements with renewal and termination options in the control of the lessee are included together with the non-cancellable contract period in the lease term when “reasonably certain” to be exercised or if controlled by the lessor. The determination of reasonably certain depends on whether the lessee has an economic incentive to exercise the option. Generally, lease accounting commences when the asset is made available to the customer, however, where the contract contains specific customer acceptance testing conditions, lease accounting will not commence until the asset has successfully passed the acceptance test. We assess a lease under the modification guidance when there is change to the terms and conditions of the contract that results in a change in the scope or the consideration of the lease. Costs directly associated with the execution of the lease or costs incurred after lease inception or the execution of the contract but prior to the commencement of the lease that directly relate to preparing the asset for the lease (i.e. bunker costs), are capitalized and amortized to the consolidated statements of operations over the lease term. We also defer upfront revenue payments (i.e. repositioning fees) to the consolidated balance sheet and amortize to the consolidated statements of operations over the lease term. Time charter operating leases Revenues include fixed minimum lease payments under time charters and fees for repositioning vessels. Revenues generated from time charters, which we classify as operating leases, are recorded over the term of the charter on a straight-line basis as service is provided and is included in "Time charter revenues" in our consolidated statement of operations. Variable revenue is accounted for as incurred in the relevant period. Fixed revenue includes fixed payments (including in-substance fixed payments that are unavoidable) and variable payments based on a rate or index. However, we do not recognize revenue if a charter has not been contractually committed to by a customer and us, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. For our operating leases, we have elected the practical expedient to combine our service revenue and operating lease income as the timing and pattern of transfer of the components are the same. Repositioning fees (included in time and voyage charter revenues) received in respect of time charters are recognized at the end of the charter when the fee becomes fixed and determinable. However, where there is a fixed amount specified in the charter, which is not dependent upon redelivery location, the fee will be recognized evenly over the term of the charter. Time charter sales-type leases On inception of a sales-type lease for which we are lessor, we de-recognize the related asset and record "Net investment in leased vessel” on our consolidated balance sheet. The net investment in leased vessel represents the fixed payments due from the lessee, discounted at the rate implicit in the lease. We allocate sales-type lease income to the consolidated statements of operations in the "Interest income” line item to reflect a constant periodic rate of return on our sales-type lease investment. For sales-type leases, non-lease revenue and operating and service agreements in connection with the time charters are recorded over the term of the charter as the service is provided. The transaction price is based on the standalone selling price for the service. Lessor expense recognition Initial direct costs (those directly related to the negotiation and consummation of the lease) are deferred and allocated to earnings over the lease term. Under our time charters, the majority of voyage expenses are paid by our customers. Voyage related expenses, principally fuel, may also be incurred when positioning or repositioning the vessel before or after the period of time charter and during periods when the vessel is not under charter or is off-hire, for example when the vessel is undergoing repairs. These expenses are recognized as incurred. Vessel operating expenses, which are recognized when incurred, include crewing, repairs and maintenance, insurance, stores, lube oils, communication expenses and third party management fees. Use of estimates The preparation of financial statements requires that management make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In assessing the recoverability of our vessels’ carrying amounts, we make assumptions regarding estimated future cash flows, estimates in respect of residual or scrap value, charter rates, ship operating expenses, utilization and drydocking requirements. Investment in affiliate Affiliates are entities over which we generally have between 20% and 50% of the voting rights, or over which we have significant influence, but over which we do not exercise control or have the power to control the financial and operational policies. Investments in these entities are accounted for by the equity method of accounting. Affiliates are also entities in which we hold a majority ownership interest, but we do not control, due to the participating rights of non-controlling interests. Under the equity method of accounting, we record our investment in the affiliate at cost, and adjust the carrying amount for our share of the earnings or losses of the affiliate subsequent to the date of the investment and report the recognized earnings or losses in income. Dividends received from an affiliate reduce the carrying amount of the investment. The excess, if any, of the purchase price over book value of our investments in equity method affiliates, or basis difference, is included in the consolidated balance sheets as "Investment in affiliate". We allocate the basis difference across the assets and liabilities of the affiliate, with the residual assigned to goodwill. The basis difference will then be amortized through the consolidated statements of operations as part of the equity method of accounting. When our share of losses in an affiliate equals or exceeds the value of our interest, we do not recognize further losses, unless we have incurred obligations or made payments on behalf of the affiliate. We recognize gains and losses in earnings based on the economic results allocated based on a contractual agreement, net of interest, tax and basis difference amortization. Guarantees Guarantees issued by us, excluding those that are guaranteeing our own performance, are recognized at fair value at the time that the guarantees are issued, and reported in “Other current liabilities” and "Other non-current liabilities". A liability equal to the fair value of the obligation undertaken in issuing the guarantee in connection with an investment in affiliate is recognized. If it becomes probable that we will have to perform under a guarantee, we will recognize an additional liability if the amount of the loss can be reasonably estimated. The recognition of fair value is not required for certain guarantees such as the parent's guarantee of a subsidiary's debt to a third party. For those guarantees excluded from the above guidance requiring the fair value recognition provision of the liability, financial statement disclosures of such items are made. Business combinations When the assets acquired and liabilities assumed constitute a business, then the acquisition is a business combination. If substantially all of the fair value of the gross asset acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset is not considered a business. Business combinations are accounted for under the acquisition method. On acquisition, the identifiable assets, liabilities and contingent liabilities are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognized as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. bargain purchase) is credited to the statement of operations in the period of acquisition. The consideration transferred for an acquisition is measured at fair value of the consideration given. Acquisition related costs are expensed as incurred. The results of operations of acquired subsidiaries are included from the date of acquisition. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we will recognize a measurement-period adjustment during the period in which we determine the amount of the adjustment, including the effect on earnings of any amounts we would have recorded in previous periods if the accounting had been completed at the acquisition date. Income taxes Income taxes are based on a separate return basis. The guidance on income taxes prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Penalties and interest related to uncertain tax positions are recognized in “Income taxes” in our consolidated statements of operations. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization of the deferred income tax asset is dependent on generating sufficient taxable income in future years. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return regarding uncertainties in income tax positions. The first step is recognition: we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is measurement: a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Cash and cash equivalents We consider all demand and time deposits and highly liquid investments with original maturities of three months or less to be equivalent to cash. Restricted cash and short-term deposits Restricted cash and short-term deposits consist of bank deposits, which may only be used to settle certain pre-arranged loan or lease payments, other claims which requires us to restrict cash, performance bonds related to charters, cash collateral required for certain swaps, and cash held by the VIE. We consider all short-term deposits as held to maturity. These deposits are carried at amortized cost. We place our short-term deposits primarily in fixed term deposits with high credit quality financial institutions. Trade accounts receivable Trade receivables are presented net of allowances for doubtful balances. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate allowance for doubtful accounts. Inventories Inventories, which are comprised principally of fuel, lubricating oils and vessel spares, are stated at the lower of cost or market value. Cost is determined on a first-in, first-out basis. Vessels and equipment Vessels are stated at cost less accumulated depreciation. The cost of vessels less the estimated residual value is depreciated on a straight-line basis over the assets’ remaining useful economic lives. Management estimates the residual values of our vessels based on a scrap value cost of steel and aluminum times the weight of the vessel noted in lightweight tons. Residual values are periodically reviewed and revised to recognize changes in conditions, new regulations or other reasons. The cost of building mooring equipment is capitalized and depreciated over the initial lease term of the related charter. Refurbishment costs incurred during the period are capitalized as part of vessels and depreciated over the vessels’ remaining useful economic lives. Refurbishment costs are costs that appreciably increase the capacity, or improve the efficiency or safety of vessels and equipment. Drydocking expenditures are capitalized when incurred and amortized over the period until the next anticipated drydocking, which is generally every five years. For vessels that are newly built or acquired, we have adopted the “built-in overhaul” method of accounting. The built-in overhaul method is based on the segregation of vessel costs into those that should be depreciated over the useful life of the vessel and those that require drydocking at periodic intervals to reflect the different useful lives of the components of the assets. The estimated cost of the drydocking component is amortized until the date of the first drydocking following acquisition, upon which the cost is capitalized and the process is repeated. When a vessel is disposed, any unamortized drydocking expenditure is charged against income in the period of disposal. Useful lives applied in depreciation are as follows: Vessels (excluding converted FSRUs) 40 years Vessels - converted FSRUs 20 years from conversion date Drydocking expenditure 5 years Mooring equipment 11 years Vessel under finance lease We lease one vessel under an agreement that has been accounted for as a finance lease. Obligations under finance lease are carried at the present value of future minimum lease payments, and the asset balance is amortized on a straight-line basis over the remaining economic useful life of the vessel. Interest expense is calculated at a constant rate over the term of the lease. Depreciation of the vessel under finance lease is included within depreciation and amortization expense in the statement of operations. The vessel under finance lease is depreciated on a straight-line basis over the vessel’s remaining useful economic life, based on a useful life of 40 years. Refurbishment costs and drydocking expenditures incurred in respect of the vessel under finance lease is accounted for consistently as that of an owned vessel. Our finance lease is ‘funded’ via long term cash deposits which closely match the lease liability. Future changes in the lease liability arising from interest rate changes are only partially offset by changes in interest income on the cash deposits, and where differences arise, this is funded by, or released to, available working capital. Income derived from the sale of subsequently leased assets is deferred and amortized in proportion to the amortization of the leased assets (see note 22). Amortization of deferred income is offset against depreciation and amortization expense in the statement of operations. Intangible assets Intangible assets pertain to customer related and contract based assets representing primarily long-term time charter party agreements acquired in connection with the acquisition of certain subsidiaries from Golar. Intangible assets identified are recorded at fair value. Fair value is determined by reference to the discounted amount of expected future cash flows. These intangible assets are amortized over the term of the time charter party agreement and the amortization expense is included in the statement of operations in the depreciation and amortization line item. Impairment testing is performed when events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. Impairment of long-lived assets We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. In assessing the recoverability of our vessels’ carrying amounts, we make assumptions regarding estimated future cash flows and estimates in respect of residual scrap value. Management performs an annual impairment assessment and when such events or changes in circumstances are present, we assess the recoverability of long-term assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, an impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. Deferred charges Costs associated with long-term financing, including debt arrangement fees, are deferred and amortized over the term of the relevant loan under the effective interest method. Amortization of debt issuance cost is included in interest expense. These costs are presented as a deduction from the corresponding liability, consistent with debt discounts. Provisions In the ordinary course of business, we are subject to various claims, suits and complaints. Management, in consultation with internal and external advisers, will provide for a contingent loss in the financial statements if the contingency was present at the date of the financial statements and the likelihood of loss was probable and the amount can be reasonably estimated. If we have determined that the reasonable estimate of the loss is a range and there is no best estimate within the range, we will provide the lower amount within the range. Derivatives We use derivatives to reduce market risks associated with our operations. We use interest rate swaps for the management of interest risk exposure. The interest rate swaps effectively convert a portion of our debt from a floating to a fixed rate over the life of the transactions without an exchange of underlying principal. We seek to reduce our exposure to fluctuations in foreign exchange rates through the use of foreign currency forward contracts. All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying balance sheets and subsequently remeasured to fair value, regardless of the purpose or intent for holding the derivative. Where the fair value of a derivative instrument is a net liability, the derivative instrument is classified in “Other current liabilities” in the balance sheet. Where the fair value of a derivative instrument is a net asset, the derivative instrument is classified in “Other current assets” or “Other non-current assets” in the balance sheet depending on its maturity. The method of recognizing the resulting gain or loss is dependent on whether the derivative contract is designed to hedge a specific risk and also qualifies for hedge accounting. For derivative instruments that are not designated or do not qualify as hedges, the changes in fair value of the derivative financial instrument are recognized in earnings and recorded each period in current earnings in “Gains/(losses) on derivative instruments”. We have no existing interest rate swaps held for hedging. Cash flows from derivative instruments that are accounted for as cash flow hedges are classified in the same category as the cash flows from the items being hedged. Cash flows from economic hedges are classified in the same category as the items subject to the economic hedging relationship. Unit-based compensation We expense the fair value of unit options issued to employees over the period the options vest. We amortize unit-based compensation for awards on a straight-line basis over the period during which the employee is required to provide service in exchange for the reward - the requisite service (vesting) period. No compensation cost is recognized for unit options for which employees do not render the requisite service. The fair value of employee unit options is estimated using the Black-Scholes option-pricing model. Fair value measurements We account for fair value measurements in accordance with the accounting standards guidance using fair value to measure assets and liabilities. The guidance provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. |
RECENTLY ISSUED ACCOUNTING STAN
RECENTLY ISSUED ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS Adoption of new accounting standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (Topic 842) along with subsequent amendments ASU 2019-20 Leases (Topic 842): Narrow scope improvements for lessors in December 2018 and ASU 2019-01 Leases (Topic 842): Codification improvements in March 2019. Topic 842 modifies the definition of a lease, requires reassessment of the lease term upon the occurrence of certain triggers and introduces new disclosures. Lessors are required to classify leases as sales-type, direct financing or operating, with classification affecting the pattern of income recognition and provides guidance for sale and leaseback transactions. Topic 842 requires a lessee to recognize leases on its balance sheet by recording a lease liability (representing the obligation to make future lease payments) and a right of use asset (representing the right to use the asset for the lease term). Leases for lessees will be classified as either financing or operating with classification affecting the pattern of expense recognition in the income statement. We adopted this Topic 842 on January 1, 2019 under a modified retrospective transition approach. The Partnership does not have any lessee contracts, therefore the adoption solely impacts the contracts where we are the lessor. We have elected to use the ‘package’ of practical expedients available, which means no reassessment on transition of whether an agreement contains a lease, lease classification, and initial direct costs under ASC 842. As part of this package the lease term has been determined using hindsight up to the date of transition when considering lessee options to extend or terminate the agreement or to purchase the underlying asset. Furthermore, where available we have elected not to separate the components in our lease arrangements, instead accounting for them as a combined component under ASC 842. Our election of the practical expedient providing transition relief will result in our prior periods not being restated and will continue to be represented in accordance with Topic 840. Our legacy leases will continue to be classified in accordance with Topic 840, while modifications and subsequent accounting will follow the accounting under Topic 842. Leases entered into on or after January 1, 2019 have been assessed under the requirements of Topic 842. New lessor presentation and disclosure requirements have been applied to our new and existing lease agreements. Note 9 to our consolidated financial statements discloses the maturity analysis of operating lease payments under arrangements where we are the lessor. In July 2018, the FASB issued ASU 2018-09 Codification improvements . The amendments in this ASU cover a wide range of topics covering primarily minor corrections, clarifications and codification improvements. We adopted the codification improvements that were not effective on issuance on January 1, 2019 under the specified transition approach connected with each of the codification improvements. The impact of this amendment has not had a material impact on our consolidated financial statements or related disclosures, including retained earnings as at January 1, 2019. Accounting pronouncements that have been issued but not yet adopted In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments and subsequent amendments, including ASU 2018-19, ASU 2019-04 & ASU 2019-11 Codification Improvements to Topic 326 "Financial Instruments-Credit Losses". Topic 326 replaces the incurred loss impairment methodology that recognizes losses when a probable threshold is met, with a requirement to recognize lifetime expected credit losses (measured over the contractual life of the instrument) immediately based on information about past events, current conditions and forecasts of future economic conditions. This will reflect the net amount expected to be collected from the financial asset and is referred to as the current expected credit loss “CECL” methodology, with measurement applicable to financial assets measured at amortized cost as well as off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees and similar instruments). Topic 326 also makes changes to the accounting for available-for-sale debt securities and purchased credit deteriorated financial assets, however, no such financial assets existed on date of adoption or in the reporting periods covered by these consolidated financial statements. Topic 326 will become effective for us on January 1, 2020 and we will apply the modified retrospective transition approach. Cash and cash equivalents (including restricted cash and short-term deposits) either are payable on demand, have short-term maturities (highly liquid) or held with financial institutions with investment grade credit ratings that overall results in limited credit risk exposure. Trade receivables and related party transactions mostly have historic low write-offs and no significant past due amounts indicating delinquency of payments, which, together with the mostly short-term maturities, result in forward looking factors being insignificant and limited credit risk exposure impact based on current and past conditions. Net investment in finance lease receivables are akin to collateralized loans as the vessels would be returned in event of default, so a counterparty credit spread has been applied to the remaining exposure on default over the lease term that will not result in a material credit allowance. While our off-balance sheet exposures mostly related to financial guarantees, no material impact has been assessed given that the collateral from return of the vessel on default of payment will cover the guarantee amount in each remaining year covered by the guarantees. Under Topic 326, allowance for credit losses will be presented separately on the consolidated balance sheet as a contra-asset deducted from the asset’s amortized cost (or liability for off-balance sheet exposures) with associated credit loss expense in the consolidated statement of operations (with exception of transition when it will be an adjustment to retained earnings). However, our assessment is that there will be no material impact on our consolidated financial statements, including any cumulative-effect adjustment to retained earnings as at January 1, 2020. However, new presentation and disclosure requirements relating to this Topic will be introduced from January 1, 2020. The following table provides a brief description of other recent accounting standards that have been issued but not yet adopted: Standard Description Date of Adoption Effect on our Consolidated Financial Statements or Other Significant Matters 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. ASU 2019-12 Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes. The amendment removes certain exceptions previously available and provides some additional calculation rules to help simplify the accounting for income taxes. January 1, 2021 Under evaluation ASU 2020-03 Financial Instruments (Topic 825) - Codification Improvements The amendment proposes seven clarifications to improve the understandability of existing guidance, including: 1) that fees between debtor and creditor and third-party costs directly related to exchanges or modifications of debt instruments include line-of-credit or revolving debt arrangements; and 2) the contractual term of a net investment in a lease determined in accordance with Topic 842 Leases should be the contractual term used to measure expected credit losses under Topic 326 Financial Instruments Credit Losses. January 1, 2020 No impact. ASU 2020-04 Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The applicable expedients for us are in relation to modifications of contracts within the scope of Topics 310, Receivables, 470, Debt, and Topic 842, Leases. This optional guidance may be applied prospectively from any date beginning March 12, 2020 and cannot be applied to modifications that occur after December 31, 2022. Under evaluation Under evaluation |
SUBSIDIARIES
SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUBSIDIARIES | SUBSIDIARIES The following table lists our significant subsidiaries and their purpose as of December 31, 2019. Unless otherwise indicated, we own 100% of each subsidiary. Name Jurisdiction of Incorporation Purpose Golar Partners Operating LLC Marshall Islands Holding Company Golar LNG Holding Corporation Marshall Islands Holding Company Golar Maritime (Asia) Inc. Republic of Liberia Holding Company Golar Servicos de Operacao de Embaracaoes Limited Brazil Management Company Golar Winter Corporation Marshall Islands Owns Golar Winter Golar Winter UK Ltd United Kingdom Operates Golar Winter Golar Spirit Corporation Marshall Islands Owns Golar Spirit Faraway Maritime Shipping Company (60% ownership) Republic of Liberia Owns and operates Golar Mazo Golar LNG 2215 Corporation Marshall Islands Leases Methane Princess Golar 2215 UK Ltd United Kingdom Operates Methane Princess Golar Freeze Holding Corporation Marshall Islands Owns Golar Freeze Golar Freeze UK Ltd United Kingdom Operates Golar Freeze Golar Khannur Corporation Marshall Islands Holding Company Golar LNG (Singapore) Pte. Ltd. Singapore Holding Company PT Golar Indonesia* Indonesia Owns and operates NR Satu Golar Grand Corporation Marshall Islands Owns and operates Golar Grand Golar LNG 2234 LLC Republic of Liberia Owns and operates Golar Maria Golar Hull M2031 Corporation Marshall Islands Owns and operates Golar Igloo Golar Eskimo Corporation** Marshall Islands Leases and operates Golar Eskimo __________________________________________ * We hold all of the voting stock and control all of the economic interests in PT Golar Indonesia (“PTGI”) pursuant to a Shareholder’s Agreement with the other shareholder of PTGI, PT Pesona Sentra Utama (“PT Pesona”). PT Pesona holds the remaining 51% interest in the issued share capital of PTGI. ** The above table excludes Eskimo SPV, from which we lease one of our vessels, the Golar Eskimo , under a sale and leaseback. See note 5. |
VARIABLE INTEREST ENTITIES ("VI
VARIABLE INTEREST ENTITIES ("VIEs") | 12 Months Ended |
Dec. 31, 2019 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
VARIABLE INTEREST ENTITIES (VIEs) | VARIABLE INTEREST ENTITIES (“VIEs”) Eskimo SPV As of December 31, 2019 and 2018, we leased one vessel f rom a VIE under a finance lease with a wholly-owned subsidiary, Sea 23 Leasing Co. Limited (“Eskimo SPV”) of China Merchants Bank Leasing (“CMBL”). Eskimo SPV is a special purpose vehicle (SPV). In November 2015, we sold the Golar Eskimo to Eskimo SPV and subsequently leased back the vessel under a bareboat charter for a term of ten ten While we do not hold any equity investment in Eskimo SPV, we have determined that we have a variable interest in Eskimo SPV and that Eskimo SPV is a VIE. Based on our evaluation of the bareboat agreement we have concluded that we are the primary beneficiary of Eskimo SPV and, accordingly, have consolidated Eskimo SPV into our financial results. We did not record any gain or loss from the sale of the Golar Eskimo to Eskimo SPV, and we continued to report the vessel in our consolidated financial statements at the same carrying value, as if the sale had not occurred, and our contractual debt with the Eskimo SPV eliminates on consolidation. The equity attributable to CMBL in Eskimo SPV is included in non-controlling interests in our consolidated results. As of December 31, 2019 and 2018, the Golar Eskimo is reported under “Vessels and equipment, net” in our consolidated balance sheet. The following table gives a summary of the sale and leaseback arrangement, including repurchase options and obligation as of December 31, 2019: Vessel Effective from Sales value (in $ millions) Subsequent repurchase option Subsequent repurchase Repurchase obligation at end of lease term (in $ millions) End of lease term Golar Eskimo November 2015 285.0 202.0 November 2020 128.3 November 2025 A summary of our payment obligations under the bareboat charter with Eskimo SPV as of December 31, 2019 is shown below: (in $ thousands) 2020 2021 2022 2023 2024 After 2024 Golar Eskimo* 23,122 22,008 21,251 20,532 19,828 15,959 *The payment obligation table above includes variable rental payments due under the lease based on an assumed LIBOR plus margin but excludes the repurchase obligation at the end of lease term. The most significant impact of consolidation of Eskimo SPV’s liabilities on our consolidated balance sheet is as follows: (in $ thousands) 2019 2018 Liabilities Short-term debt (refer to note 21) 11,436 11,836 Long-term debt (refer to note 21) 169,395 187,401 The most significant impact of consolidation of Eskimo SPV’s operations on our consolidated statement of operations is interest expense of $7.6 million, $8.0 million and $8.2 million for the years ended December 31, 2019, 2018, and 2017 respectively. The most significant impact of consolidation of Eskimo SPV’s cash flows on our consolidated statement of cash flows is net cash of $20.1 million, $12.8 million, and $20.8 million used in financing activities for the years ended December 31, 2019, 2018, and 2017, respectively. Hilli LLC On July 12, 2018, we acquired an interest in the Hilli through the acquisition of 50% of the Hilli Common Units for a purchase price of $658 million less assumed net lease obligations and net of working capital adjustments. Concurrent with the closing of the Hilli Acquisition, we have determined that (i) Hilli LLC is a VIE, (ii) Golar is the primary beneficiary and retains sole control over the most significant activities and the greatest exposure to variability in residual returns and expected losses from the Hilli and (iii) we are not the primary beneficiary. Thus, Hilli LLC was not consolidated into our financial statements. As at December 31, 2019, our maximum exposure as a result of our ownership in the Hilli LLC is the carrying value of our investment in affiliate of $193.27 million (see note 10) a nd the outstanding portion of the Hilli Facility which we have guaranteed (see note 25). PTGI We consolidate PTGI, which owns the NR Satu , in our consolidated financial statements effective September 28, 2011. PTGI became a VIE and we became its primary beneficiary upon our agreement to acquire all of Golar’s interests in certain subsidiaries that own and operate the NR Satu on July 19, 2012. We consolidate PTGI as we hold all of the voting stock and control all of the economic interests in PTGI. The following table summarizes the balance sheets of PTGI as of December 31, 2019 and 2018: (in thousands of $) 2019 2018 ASSETS Cash 13,108 19,599 Restricted cash (see note 17) 9,543 10,209 Vessels and equipment, net* 227,418 248,526 Other assets 3,158 2,699 Total assets 253,227 281,033 LIABILITIES AND EQUITY Accrued liabilities 2,704 6,474 Current portion of long-term debt 14,382 14,303 Amounts due to related parties 51,203 83,334 Non-current debt 58,865 73,247 Other liabilities 974 638 Total liabilities 128,128 177,996 Total equity 125,099 103,037 Total liabilities and equity 253,227 281,033 *PTGI recorded the NR Satu at the acquisition price when it purchased the vessel from a Golar related party entity. However, as of the date of the acquisition of the subsidiaries which own and operate the NR Satu , the acquisition was deemed to be a reorganization of entities under common control, and accordingly, we recorded the NR Satu at historical book values. Trade creditors of PTGI have no recourse to our general credit. The long-term debt of PTGI is secured against the NR Satu and has been guaranteed by us. PTGI paid dividends to PT Pesona a mounting to $nil, $nil and $1.2 million during the years ended December 31, 2019, 2018 and 2017, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION A segment is a distinguishable component of the business that is engaged in business activities from which we earn revenues and incur expenses whose operating results are regularly reviewed by the chief operating decision maker, and which are subject to risks and rewards that are different from those of other segments. As of December 31, 2019, we operate in the following three reportable segments: FSRUs, LNG carriers and FLNG. • FSRUs are vessels that are permanently located offshore to regasify LNG. Six of our vessels are FSRUs; and • 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; • FLNG are vessels that are moored above an offshore natural gas field on a long-term basis. A FLNG receives, liquefies and stores LNG at sea and transfers it to LNG carriers that berth while offshore. The accounting policies applied to the segments are the same as those applied in the Consolidated Financial Statements, except that our equity in net earnings of affiliate is presented under the effective share of interest consolidation method for the segment reporting. On May 15, 2019, we executed a modification to the charter for the Golar Freeze (the "Golar Freeze Charter") which triggered a change in accounting for the Golar Freeze Charter from an operating lease to a sales-type lease ("Golar Freeze Finance Lease"). Following this change, management changed the metric by which it measures the profitability of our segments from EBITDA to Adjusted EBITDA to reflect the change in accounting treatment of this contract and enable the comparability with the rest of the business. This led to a change in the information that management required to manage both the standalone segments and our overall businesses. December 31, 2019 (in thousands of $) FSRU (1) LNG Carrier FLNG (2) Unallocated (3) Total Segment Reporting Elimination (4) Consolidated Reporting Statement of operations: Total operating revenues 240,695 58,957 104,073 — 403,725 (104,073) 299,652 Vessel operating expenses (40,978) (19,980) (23,042) — (84,000) 23,042 (60,958) Voyage and commission expenses (4,467) (3,181) (230) — (7,878) 230 (7,648) Administrative expenses (5) (8,090) (5,322) (1,093) — (14,505) 1,093 (13,412) Amount invoiced under sales-type lease 11,500 — — — 11,500 (11,500) — Adjusted EBITDA 198,660 30,474 79,708 — 308,842 (91,208) 217,634 Balance sheet: Total assets (6) 1,079,369 510,558 193,270 322,415 2,105,612 — 2,105,612 Other segmental financial information: Capital expenditure (6) (13,465) (15) — — (13,480) — (13,480) December 31, 2018 (in thousands of $) FSRU LNG Carrier FLNG (2) Unallocated (3) Total Segment Reporting Elimination (4) Consolidated Reporting Statement of operations: Total operating revenues 294,889 51,761 49,754 — 396,404 (49,754) 346,650 Vessel operating expenses (42,736) (22,511) (9,834) — (75,081) 9,834 (65,247) Voyage and commission expenses (7,138) (4,084) (434) — (11,656) 434 (11,222) Administrative expenses (5) (9,384) (5,425) (1,306) — (16,115) 1,306 (14,809) Adjusted EBITDA 235,631 19,741 38,180 — 293,552 (38,180) 255,372 Balance sheet: Total assets (6) 1,115,663 534,805 206,180 384,169 2,240,817 — 2,240,817 Other segmental financial information: Capital expenditure (6) (28,307) (13,894) — — (42,201) — (42,201) December 31, 2017 (in thousands of $) FSRU LNG Carrier FLNG (2) Unallocated (3) Total Segment and Consolidated Reporting Statement of operations: Total operating revenues 316,599 116,503 — — 433,102 Vessel operating expenses (47,960) (20,318) — — (68,278) Voyage and commission expenses (8,375) (1,319) — — (9,694) Administrative expenses (5) (10,029) (5,181) — — (15,210) Adjusted EBITDA 250,235 89,685 — — 339,920 Balance sheet: Total assets (6) 1,149,595 545,225 — 732,551 2,427,371 Other segmental financial information: Capital expenditure (6) (11,226) (11,215) — — (22,441) (1) Includes revenue relating to operating and service contracts, that is a non-lease component of sales-type leases recognized on a straight line basis over the contract term. (2) Relates to the effective share of revenues, expenses and Segment EBITDA attributable to our 50% ownership of the Hilli Common Units which we acquired in July 2018 (see note 10). The earnings attributable to our investment in Hilli LLC are reported in the equity in net earnings of affiliate on the consolidated income statement. (3) Relates to assets not allocated to a segment, but included to reflect the total assets in the consolidated balance sheet. (4) Eliminations reverse the effective earnings attributable to our 50% ownership of the Hilli Common Units and the amounts invoiced under the sales-type lease. There are no transactions between reportable segments. (5) Indirect administrative expenses are allocated to the FSRU and LNG carrier segments based on the number of vessels while administrative expenses for FLNG relate to our effective share of expenses attributable to our 50% ownership of the Hilli Common Units. (6) Total assets and capital expenditure by segment refers to our principal assets and capital expenditure relating to our vessels, including the net investment in leased vessel. Revenues from external customers During 2019, our FSRUs and LNG carriers operated under time charters with nine charterers, including, among others, Petrobras, PT Nusantara Regas (“PTNR”), the Hashemite Kingdom of Jordan (“Jordan”), and Kuwait National Petroleum Company (“KNPC”). For the years ended December 31, 2019, 2018 and 2017, revenues from each of the following customers accounted for over 10% of our total consolidated operating revenues: (in thousands of $) Segment 2019 2018 2017 PTNR FSRU 68,089 23 % 68,474 17 % 72,495 17 % Petrobras FSRU 64,368 21 % 63,098 16 % 94,588 22 % Jordan FSRU 57,535 19 % 57,337 14 % 57,144 13 % KNPC FSRU 40,379 13 % 48,093 12 % 47,646 11 % Dubai Supply Authority FSRU — — 56,823 14 % 44,726 10 % Geographical data The following geographical data presents our consolidated reporting information: revenues from customers and fixed assets with respect only to our FSRUs, while operating under long-term charters, at specific locations. LNG carriers operate on a worldwide basis and are not restricted to specific locations. Accordingly, it is not possible to allocate the assets of these operations to specific countries: Revenues (in thousands of $) 2019 2018 2017 Indonesia 68,089 68,474 72,495 Brazil 64,368 63,098 94,588 Jordan 57,535 57,337 57,144 Kuwait 40,379 48,093 47,645 United Arab Emirates — 56,823 44,726 Fixed assets (in thousands of $) 2019 2018 Jordan 254,881 261,163 Kuwait 262,530 258,942 Brazil 203,889 214,018 Indonesia 149,247 163,230 |
(LOSSES)_GAINS ON DERIVATIVES A
(LOSSES)/GAINS ON DERIVATIVES AND OTHER FINANCIAL ITEMS, NET | 12 Months Ended |
Dec. 31, 2019 | |
OTHER FINANCIAL ITEMS, NET [Abstract] | |
(LOSSES)/GAINS ON DERIVATIVES AND OTHER FINANCIAL ITEMS, NET | (LOSSES)/GAINS ON DERIVATIVES AND OTHER FINANCIAL ITEMS, NET (in thousands of $) 2019 2018 2017 Mark-to-market (losses)/gains for interest rate swap derivatives (43,746) (1,455) 12,073 Interest income/(expense) on un-designated interest rate swaps 4,950 2,161 (7,554) Mark-to-market adjustment on Earn-Out Units (1) — 7,400 (441) Gains on repurchase of cross currency interest rate swap — — 3,718 (Losses)/gains on derivative instruments (38,796) 8,106 7,796 Foreign exchange (losses)/gains on finance lease obligations and related restricted cash (941) 1,105 (659) Amortization of debt guarantee (see note 25) 2,065 503 — Financing arrangement fees and other costs (531) (1,363) (527) Foreign exchange gains/(losses) on operations 82 (837) (378) Losses on repurchase of 2012 High-Yield Bonds (2) — — (7,876) Foreign exchange losses on 2012 High-Yield Bonds — — (3,103) Premium paid on repurchase of 2012 High-Yield Bonds — — (2,820) Other financial items, net 675 (592) (15,363) (Losses)/gains on derivatives and other financial items, net (38,121) 7,514 (7,567) (1) This relates to the mark-to-market movement on the Earn-Out Units issued in connection with the IDR reset transaction in October 2016 which were recognized as a derivative liability in our consolidated balance sheet. In October 2018, we declared a reduced quarterly distribution of $0.4042 per common unit. Consequently, the second tranche of Earn-Out Units will not be issued. Accordingly, we have recognized a $nil valuation on the Earn-Out Units derivatives as of December 31, 2018, resulting in a mark-to-market gain related to the Earn-Out Units. See notes 28 and 29. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income tax expense are as follows: (in thousands of $) 2019 2018 2017 Current tax expense 14,342 15,737 9,825 Deferred tax expense 3,620 1,728 7,171 Total income tax expense 17,962 17,465 16,996 The income taxes for the years ended December 31, 2019, 2018 and 2017 differed from the amounts computed by applying the Marshall Islands statutory income tax rate of 0% for all years as follows: (In thousands of $) 2019 2018 2017 Effect of taxable income in various countries 18,023 16,342 16,311 Effect of change on uncertain tax positions (61) 1,329 685 Effect of recognition of deferred tax asset and liabilities — (206) — Total tax expense 17,962 17,465 16,996 Pursuant to the Internal Revenue Code of the United States (the “Code”), U.S. source income from the international operations of vessels is generally exempt from U.S. tax if the company operating the ships meets certain requirements. Among other things, in order to qualify for this exemption, the company operating the ships must be incorporated in a country which grants an equivalent exemption from income taxes to U.S. citizens and U.S. corporations and must either satisfy certain public trading requirements or be more than 50% owned by individuals who are residents, as defined, in such country or another foreign country that grants an equivalent exemption to U.S. citizens and U.S. corporations. We believe that we satisfied these requirements and therefore by virtue of the above provisions, we were not subject to tax on our U.S. source income. Jurisdictions open to examination The earliest tax years that remain subject to examination by the major taxable jurisdictions in which we operate are UK (2018), Brazil (2014), Indonesia (2017), Kuwait (2019), Jordan (2015) and Barbados (2017). Interest and penalties charged to “Income taxes” in our statement of operations amounted to $0.2 million $0.1 million and $0.6 million for the years ended December 31, 2019, 2018 and 2017 respectively. Deferred taxes Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. (in thousands of $) 2019 2018 At January 1 Deferred tax assets 103 250 Deferred tax liabilities (see note 23) (7,126) (5,545) (7,023) (5,295) Recognized in the year Adjustment in respect of prior year (1,537) 331 Utilization of tax losses — (271) Recognition of deferred tax liability on fixed asset temporary differences (2,083) (1,788) (3,620) (1,728) At December 31 Deferred tax assets — 103 Deferred tax liabilities (see note 23) (10,643) (7,126) (10,643) (7,023) There is no deferred tax asset as of December 31, 2019. The total deferred tax asset as of December 31, 2018 is related to the tax depreciation in excess of the accounting depreciation in respect of branch operations in Barbados. The total deferred tax liability as of December 31, 2019 and 2018, related to the tax basis for the Golar Eskimo being lower than the accounting net book value. There are no potential deferred tax liabilities arising on undistributed earnings within the Partnership. This is because either: (i) no tax would arise on distribution, or (ii) in the case of PTGI, the Partnership intends to utilize surplus earnings to reduce borrowings or reinvest its earnings, as opposed to making any distribution. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
OPERATING LEASES | OPERATING LEASES The minimum contractual future rentals represent revenues to be recognized on a straight line basis for each of the following periods, as of December 31, 2019: Year ending December 31, (in thousands of $) Total 2020 261,950 2021 262,779 2022 229,597 2023 136,696 2024 and thereafter 137,344 Total 1,028,366 Minimum lease rentals are calculated based on contractual future revenue expected to be recognized on a straight-line basis over the lease term with certain assumptions such as those relating to expected off-hire days. PTNR has the right to purchase the NR Satu at any time after the first anniversary of the commencement date of its charter at a price that must be agreed upon between us and PTNR. We have assumed that this option will not be exercised. Accordingly, the minimum lease rentals set out above include revenues arising within the option period. Jordan has the option, for a termination fee, to terminate the charter after the fifth anniversary of the delivery date of the Golar Eskimo . The minimum contractual future revenues above assume that this option will not be exercised. All our vessels are held for contractual future leasing, see note 13 and note 14. For arrangements where operating costs are borne by the charterer on a pass through basis, the pass through of operating costs are reflected in both revenue and expenses. The components of operating lease income were as follows: (in thousands of $) 2019 Operating lease income 291,806 Variable lease income (1) 2,148 Total operating lease income 293,954 (1) ‘Variable lease income’ is excluded from lease payments that comprise the minimum contractual future revenues from non-cancellable leases. |
INVESTMENTS IN AFFILIATE
INVESTMENTS IN AFFILIATE | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN AFFILIATES | INVESTMENT IN AFFILIATE The components of equity in net assets of our non-consolidated affiliate are as follows: (in thousands of $) 2019 2018 Equity in net assets of affiliate at January 1, 206,180 — Net purchase price on acquisition — 199,728 Dividends (17,450) (5,581) Equity in net earnings of affiliate 4,540 1,190 Fair value of debt guarantee (see note 25) — 10,843 Equity in net assets of affiliate at December 31 193,270 206,180 Quoted market prices for Hilli LLC are not available because it is not publicly traded. Hilli LLC On July 12, 2018, we purchased 50.0% of the Hilli Common Units from Golar, affiliates of Keppel Shipyard Limited ("Keppel") and Black &Veatch ("B&V") (together, the “Sellers”). Hilli LLC owns Golar Hilli Corporation ("Hilli Corp), the disponent owner of the Hilli . The Hilli Common Units provide us with significant influence over Hilli LLC. The Hilli is currently operating under an 8-year liquefaction tolling agreement (the “LTA”) with Perenco Cameroon S.A. (“Perenco”) and Société Nationale des Hydrocarbures (“SNH” and together with Perenco, the “Customer”). The purchase price for the Hilli Acquisition was $658 million, less 50% of the net lease obligations under the Hilli Facility on the Closing Date, plus working capital adjustments. The post closing purchase price adjustments were finalized in October 2018. We entered into the Amended and Restated Limited Liability Company Agreement of Hilli LLC (the “Hilli LLC Agreement”) on July 12, 2018. The ownership interests in Hilli LLC are represented by three classes of units, the Hilli Common Units, the Series A Special Units and the Series B Special Units. We do not own any of the Series A Special Units or Series B Special Units. The ownership interests of Hilli LLC are represented below: Percentage ownership interest Hilli Common Units The Partnership 50.0% Golar 44.6% Keppel 5.0% B&V 0.4% The Hilli LLC Agreement provides that within 60 days after the end of each quarter, Golar, in its capacity as the managing member of Hilli LLC shall determine the amount of Hilli LLC’s available cash and appropriate reserves (including cash reserves for future maintenance capital expenditures, working capital and other matters), and Hilli LLC shall make a distribution to the unitholders of Hilli LLC (the “Hilli Unitholders”) of the available cash, subject to such reserves. All three classes of ownership interests in Hilli LLC have certain participating and protective rights. Hilli LLC shall make distributions to the Hilli Unitholders when, as and if declared by Golar; provided, however, that no distributions may be made on the Hilli Common Units on any distribution date unless Series A Distributions (defined below) and Series B Distributions (defined below) for the most recently ended quarter and any accumulated Series A Distributions and Series B Distributions in arrears for any past quarter have been or contemporaneously are being paid or provided for. The Series A Special Units are entitled to receive the “Series A Distributions,” which means, with respect to any quarter, 100% of any Incremental Perenco Revenues received by Hilli Corp during such quarter. “Incremental Perenco Revenues” is contractually defined as: • any cash received by Hilli Corp from revenue invoiced to the extent such revenue invoiced are based on tolling fees under the LTA relating to an increase in the Brent Crude price above $60 per barrel; less • any incremental tax expense arising from or related to any cash receipts referred to in the bullet point above; less • the pro-rata portion of any costs that may arise as a result of the underperformance of the Hilli “Underperformance Costs”) incurred by Hilli Corp during such quarter. Series B Special Units are entitled to receive the “Series B Distributions,” which means, with respect to any quarter, an amount equal to 95% of Revenues Less Expenses received by Hilli Corp during such quarter. “Revenues Less Expenses” is contractually defined as: • the cash receipts from revenues invoiced by Hilli Corp as a direct result of the employment of more than the first 50% of LNG production capacity for the Hilli , before deducting any Underperformance Costs (unless the incremental capacity above the first 50% is supplied under the terms of the LTA and the term of the LTA is not expanded beyond 500 billion cubic feet of feed gas), excluding, for the avoidance of doubt, any Incremental Perenco Revenues; less • any incremental costs whatsoever, including but not limited to operating expenses, capital costs, financing costs and tax costs, arising as a result of employing and making available more than the first 50% of LNG production capacity for the Hilli ; less • any reduction in revenue attributable to the first 50% of LNG production capacity availability as a result of making more than 50% of capacity available under the LTA (including, but not limited to, for example, as a result of a tolling fee rate reduction as contemplated in the LTA); less • the pro-rata share of Underperformance Costs incurred by Hilli Corp during such quarter. Hilli Common Units: Distributions to Hilli Common Units may not be made until any Series A Distributions and Series B Distributions for the most recently ended quarter and any accumulated Series A Distributions and Series B Distributions in arrears for any past quarter have been paid. Hilli LLC Common Unitholders may also receive, with respect to any quarter, an amount equal to 5% of Revenues less Expenses received by Hilli Corp during such quarter. Summarized financial information of Hilli LLC* The following table summarizes the financial information of Hilli LLC shown on a 100% basis as of and for the years ended December 31, 2019 and 2018: (in thousands of $) 2019 2018 Balance sheet Current assets 54,000 124,642 Non-current assets 1,300,065 1,392,711 Current liabilities (45,106) (109,773) Non-current liabilities (924,578) (1,004,184) Statement of operations Liquefaction services revenue 218,095 127,625 Net income 70,756 77,842 *The summarized financial information of Hilli LLC excludes the Hilli LLC lessor VIE's financial information. |
TRADE ACCOUNTS RECEIVABLE
TRADE ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
TRADE ACCOUNTS RECEIVABLE | TRADE ACCOUNTS RECEIVABLE As of December 31, 2019 and 2018, there was no provision for doubtful accounts. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS (in thousands of $) 2019 2018 Prepaid expenses 2,087 2,386 Other receivables 9,807 2,346 Mark-to-market interest rate swaps valuation (see note 24) — 1,802 11,894 6,534 |
VESSELS AND EQUIPMENT, NET
VESSELS AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
VESSELS AND EQUIPMENT, NET | VESSELS AND EQUIPMENT, NET 2019 (in thousands of $) Vessels Drydocking expenditure Mooring equipment Total Cost As of January 1 2,143,388 65,088 37,826 2,246,302 Additions 7,547 5,933 — 13,480 Disposal (1) (208,987) (17,430) — (226,417) Write-off of fully depreciated and amortized asset — (6,363) — (6,363) As of December 31 1,941,948 47,228 37,826 2,027,002 Depreciation and amortization As of January 1 (663,123) (23,804) (23,618) (710,545) Charge for the year (55,796) (8,282) (3,547) (67,625) Disposal (1) 113,676 794 — 114,470 Write-off of fully depreciated and amortized asset — 6,363 — 6,363 As of December 31 (605,243) (24,929) (27,165) (657,337) Net book value as at December 31 1,336,705 22,299 10,661 1,369,665 2018 (in thousands of $) Vessels Drydocking expenditure Mooring equipment Total Cost As of January 1 2,132,856 88,450 37,826 2,259,132 Additions 10,549 17,853 — 28,402 Write-off of fully depreciated and amortized asset (17) (41,215) — (41,232) As of December 31 2,143,388 65,088 37,826 2,246,302 Depreciation and amortization As of January 1 (600,578) (49,559) (20,072) (670,209) Charge for the year (62,562) (15,460) (3,546) (81,568) Write-off of fully depreciated and amortized asset 17 41,215 — 41,232 As of December 31 (663,123) (23,804) (23,618) (710,545) Net book value as at December 31 1,480,265 41,284 14,208 1,535,757 (1) Relates to the de-recognition of the vessel asset carrying value of the Golar Freeze. See note 15. As of December 31, 2019 and 2018, vessels and equipment with a net book value of $1,241.9 million and $1,402.6 million, respectively, were pledged as security for certain debt facilities (see note 26). The following table presents the market values and carrying values of seven of our vessels that we have determined have a market value that is less than their carrying value as of December 31, 2019. While the market values of these vessels are below their carrying values, no vessel impairment has been recognized on any of these vessels as the estimated future undiscounted cash flows relating to such vessels are greater than their carrying values. Vessel 2019 Market value (1) 2019 Carrying value Deficit (in millions of $) Golar Winter 164.0 204.0 (40.0) NR Satu 115.0 149.0 (34.0) Methane Princess 63.0 108.0 (45.0) Golar Maria 82.0 172.0 (90.0) Golar Grand 84.0 102.0 (18.0) Golar Mazo 51.0 128.0 (77.0) Golar Igloo 261.0 263.0 (2.0) (1) Market values are determined with reference to average broker values provided by independent brokers. Broker values are considered an estimate of the market value for the purpose of determining whether an impairment trigger exists. Broker values are commonly used and accepted by our lenders in relation to determining compliance with relevant covenants in applicable credit facilities for the purpose of assessing security quality. Since vessel values can be volatile, our estimates of market value may not be indicative of either the current or future prices we could obtain if we sold any of the vessels. In addition, the determination of estimated market values may involve considerable judgment, given the illiquidity of the second-hand markets for these types of vessels. |
VESSEL UNDER CAPITAL LEASE, NET
VESSEL UNDER CAPITAL LEASE, NET | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
VESSEL UNDER CAPITAL LEASE, NET | VESSEL UNDER FINANCE LEASE, NET 2019 (in thousands of $) Vessels Drydocking expenditure Total Cost As of January 1, and December 31, 163,231 11,280 174,511 Depreciation and amortization As of January 1 (59,425) (375) (59,800) Charge for the year (4,022) (2,256) (6,278) As of December 31 (63,447) (2,631) (66,078) Net book value as at December 31 99,784 8,649 108,433 2018 Vessels Drydocking expenditure Total Cost As of January 1 160,535 8,305 168,840 Additions 2,696 11,104 13,800 Write-off of fully depreciated and amortized asset — (8,129) (8,129) As of December 31 163,231 11,280 174,511 Depreciation and amortization As of January 1 (55,510) (7,385) (62,895) Charge for the year (3,915) (1,119) (5,034) Write-off of fully depreciated and amortized asset — 8,129 8,129 As of December 31 (59,425) (375) (59,800) Net book value as at December 31 103,806 10,905 114,711 As of December 31, 2019 and 2018, we operated one vessel, the Methane Princess , under a finance lease. The lease is in respect of a refinancing transaction undertaken during 2003, as described in note 22. In connection with the Methane Princess Lease, we recorded an amount representing the difference between the net cash proceeds received upon sale of the vessel and the present value of the minimum lease payments. The depreciation and amortization expense for the year is offset against the amortization of the deferred credit in the statement of operations (see note 23). |
INVESTMENT IN LEASED VESSEL, NE
INVESTMENT IN LEASED VESSEL, NET | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
INVESTMENT IN LEASED VESSEL, NET | INVESTMENT IN LEASED VESSEL, NET On May 15, 2019, we executed a modification to the Golar Freeze Charter which triggered a change in lease classification from an operating lease to a sales-type lease. This classification change resulted in the de-recognition of the vessel asset carrying value, the recognition of net investment in leased vessel (consisting of present value of the future lease receivables and unguaranteed residual value), and a gain on disposal of $4.2 million, which is included within "Other non-operating income" in our consolidated statement of operations. Post modification to sales-type lease, all charter hire revenue from the Golar Freeze Finance Lease is to be recognized as interest income. We recognized interest income of $9.5 million for the year ended December 31, 2019, which is included within "interest income" in our consolidated statement of operations. The following table lists the components of our investment in leased vessel, net and the maturity profile of the undiscounted lease receivables: Year ending December 31, 2020 18,300 2021 18,250 2022 18,250 2023 18,250 2024 and thereafter 189,350 Total minimum lease receivable 262,400 Unguaranteed residual value 16,000 Gross investment in sales-type lease 278,400 Less: unearned interest income (164,263) Investment in leased vessel, net 114,137 Less: current portion of investment in leased vessel, net (2,308) Non-current portion of investment in leased vessel, net 111,829 The charter includes an option, upon twelve months written notice of a termination not before the 3 years anniversary of the charter commencement date in order to substitute the FSRU for an alternative vessel but only if certain throughput targets have not been achieved. In this event we have a matching right. The charter also includes a 5-year extension option. We have assumed that this option will not be exercised. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET (in thousands of $) 2019 2018 Cost As of January 1 114,616 114,616 Write-off of fully amortized asset (19,099) — As of December 31 95,517 114,616 Depreciation, amortization and impairment As of January 1 (54,247) (41,410) Charge for the year (9,960) (12,837) Write-off of fully amortized asset 19,099 — As of December 31 (45,108) (54,247) Net book value as at December 31 50,409 60,369 The intangible assets pertain to customer related and contract based assets representing primarily the long-term time charter party agreements acquired in connection with the acquisition of the Golar Igloo in March 2014 and Golar Eskimo in January 2015. The intangible asset acquired in connection with the acquisition of the Golar Igloo was amortized over the term of the contract with KNPC, which expired in December 2019. Accordingly, the intangible asset in connection with the Golar Igloo was fully amortized and written off as of December 31, 2019. The intangible asset acquired in connection with the acquisition of the Golar Eskimo is amortized over the term of the contract initially entered into with Jordan for ten years with termination option after five years expected not to be exercised. Both intangible assets have been assigned a zero residual value. As of December 31, 2019, there was no impairment of intangible assets. Amortization expense for the years ended December 31, 2019, 2018 and 2017 was $10.0 million, $12.8 million and $12.9 million respectively. The estimated future amortization of intangible assets as of December 31, 2019 is as follows: Year Ending December 31, (in thousands of $) 2020 9,114 2021 9,114 2022 9,114 2023 9,114 2024 9,114 2025 4,839 Total 50,409 |
RESTRICTED CASH AND SHORT-TERM
RESTRICTED CASH AND SHORT-TERM DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH AND SHORT-TERM DEPOSITS | RESTRICTED CASH AND SHORT-TERM DEPOSITS Our restricted cash balances are as follows: (in thousands of $) 2019 2018 Methane Princess lease security deposits (see note 22) (1) 114,676 112,362 Restricted cash relating to the $800 million facility (see note 21) (2) 23,552 30,845 Restricted cash relating to our interest rate swaps (see note 24) 14,810 6,480 Restricted cash relating to the NR Satu facility (see notes 5 and 21) 9,543 10,209 Restricted cash relating to security deposits (3) 19,680 12,548 Total restricted cash 182,261 172,444 Less: current portion of restricted cash (46,333) (31,330) Non-current restricted cash 135,928 141,114 Restricted cash does not include minimum consolidated cash balances of $30.0 million required to be maintained as part of the financial covenants in some of our loan facilities, as these amounts are included in “Cash and cash equivalents” (see note 21). (1) As of December 31, 2019 and 2018, the value of deposits used to obtain letters of credit to secure the obligations for the lease arrangements described in note 22 was $114.7 million and $112.4 million, respectively. These security deposits are referred to in these financial statements as restricted cash. The Methane Princess Lease security deposit earns interest based upon Pound Sterling LIBOR. (2) Restricted cash required by the $800 million facility provides additional security to the lenders following the early termination of the Golar Spirit's charter and amendments to the Golar Freeze's charter. Under the amendments in 2018 to the $800 million facility, the restricted cash relating to the Golar Freeze was released upon securing an acceptable replacement charter. The amendments also allow for a stepped reduction in the value of the security deposit for the Golar Spirit. The security deposit may be applied against Golar Spirit's proportion of the $800 million facility quarterly repayment. The security deposit will be reduced to $16.5 million in 2020. The security deposit will be fully utilized in 2021 on the final repayment of the $800 million facility. The security deposit may be released if we are able to enter into a suitable charter for the Golar Spirit . (3) As of December 31, 2019 and 2018, the value of collateral deposits required to secure performance guarantees issued to charterers on our behalf by banks was $18.1 million and $12.5 million, respectively. As of December 31, 2019 we held an outstanding bid bond with one of our charterers with a value of $1.6 million, which will mature in 2020. These security deposits are also referred to in these financial statements as restricted cash. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT ASSETS [Abstract] | |
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS (in thousands of $) 2019 2018 Other non-current assets 1,494 2,342 Mark-to-market interest rate swaps valuation (see note 24) 1,285 15,815 2,779 18,157 Other non-current assets consist of capitalized commission expenses and lease incentives incurred in connection with the NR Satu time charter amounting to $1.5 million and $2.2 million as of December 31, 2019 and 2018, respectively. These costs are amortized over the term of the NR Satu time charter. Amortization expense for each of the years ended December 31, 2019, 2018 and 2017 was $0.7 million, which are recognized mainly under “Voyage and commission expenses” in the statement of operations. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES (in thousands of $) 2019 2018 Current tax payable 9,134 12,155 Interest expense 7,036 7,887 Vessel operating and drydocking expenses 6,503 6,824 Administrative expenses 778 363 23,451 27,229 Current tax payable includes provision for interest and penalties of $0.2 million and $0.1 million for the years ended December 31, 2019 and 2018, respectively. Within current tax payable, $0.6 million of tax payable is expected to be recovered through indemnity clauses relating to past performance of a bareboat charter and operating and services agreement with a charterer. A corresponding asset has been recognized in ‘Other receivables’ (see note 12). |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES (in thousands of $) 2019 2018 Mark-to-market interest rate swaps valuation (see note 24) 36,167 8,753 Other creditors 7,910 1,410 Deferred revenue 7,720 10,636 Guarantee (see note 25) 1,772 2,066 Preferred units dividend payable (see note 28) 1,509 1,543 Deferred credits from finance lease transactions (see note 23) 625 625 55,703 25,033 Other creditors include $7.6 million of withholding and payroll taxes that is expected to be recovered through indemnity clauses relating to past performance of a bareboat charter and operating and services agreement with a charterer. A corresponding asset has been recognized in ‘Other receivables’ (see note 12). |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT (in thousands of $) 2019 2018 Total debt, net of deferred finance charges 1,216,933 1,272,350 Less: Current portion of long-term debt due to third parties, net of deferred finance charges (225,254) (75,451) Long-term debt, net of deferred finance charges 991,679 1,196,899 Our outstanding debt as of December 31, 2019 is repayable as follows: Year Ending December 31, (in thousands of $) 2020 228,186 2021 793,568 2022 57,431 2023 12,819 2024 12,836 2025 and thereafter 118,104 Total debt 1,222,944 Less: deferred finance charges (6,011) Total debt, net deferred finance charges 1,216,933 As of December 31, 2019 and 2018, the maturity dates for our total debt were as follows: (in thousands of $) 2019 2018 Maturity date 2015 Norwegian Bonds 150,000 150,000 2020 $800 million credit facility 568,000 595,000 2021 2017 Norwegian Bonds 250,000 250,000 2021 NR Satu Facility 74,113 88,863 2022 Eskimo SPV Debt* 180,831 199,237 2025 Total debt 1,222,944 1,283,100 __________________________________________ * This represents the total loan facility drawn down by the subsidiary of CMBL, which we consider to be a VIE. We determined that we are the primary beneficiary of this VIE as we are expected to absorb the majority of the VIEs’ losses and residual gains associated with the vessel sold and leased backed from the subsidiary of CMBL. Accordingly, the VIE and its related loan facilities are consolidated in our results. See note 2 and note 5. 2015 Norwegian Bonds In May 2015, we completed the issuance and sale of $150 million aggregate principal amount of five years non-amortizing bonds in Norway (the “2015 Norwegian Bonds”). The 2015 Norwegian Bonds mature on May 22, 2020 and bear interest at a rate of LIBOR plus 4.4%. In connection with the issuance of the 2015 Norwegian Bonds, we entered into an economic hedge interest rate swap arrangement to reduce the risk associated with fluctuations in interest rates by converting the floating rate of the interest obligation under the 2015 Norwegian Bonds to an all-in fixed rate of 6.275%. Refer to note 30 ‘Subsequent events’ for more information. $800 million credit facility In April 2016, we entered into an $800.0 million senior secured credit facility (the “$800 million credit facility”) with a syndicate of banks to refinance existing financing arrangements secured by seven of our existing vessels. The vessels included in this facility are the Golar Freeze , the Golar Grand , the Golar Igloo , the Golar Maria , the Golar Spirit and the Golar Winter and the Methane Princess . The $800 million credit facility has a five The facility requires a security deposit to be held for the period of the loan, unless certain conditions are met. These balances are referred to in these consolidated financial statements as restricted cash. As of December 31, 2019, the value of the restricted cash deposit secured against the loan was $23.6 million. See note 17. 2017 Norwegian Bonds On February 15, 2017, we completed the issuance and sale of $250.0 million aggregate principal amount of our 2017 Norwegian Bonds (the “2017 Norwegian Bonds”) which will mature in May 2021 and bear interest at a rate of 3-month LIBOR plus 6.25%. In connection with the issuance of the 2017 Norwegian Bonds, we entered into economic hedge interest rate swaps to reduce the risk associated with fluctuations in interest rates by converting the floating rate of the interest obligation under the 2017 Norwegian Bonds to an all-in interest rate of 8.194%. The 2017 Norwegian Bonds were listed on the Oslo Bors in July 2017. Refer to note 30 ‘Subsequent events’ for more information. NR Satu Facility In December 2012, PTGI, the company that owns and operates the NR Satu , entered into a seven In March 2018, the NR Satu facility was extinguished and subsequently refinanced with Sumitomo Mitsui Banking Corporation ("SMBC") under a new loan facility (the "New NR Satu Facility") which bears interest at LIBOR plus margin of 2.35%. The New NR Satu Facility is split into two tranches, a $155.0 million term loan facility and a $20.0 million revolving facility. The maturity of the New NR Satu Facility was extended to the earliest to occur of (i) November 30, 2022; (ii) the expiration date of the NR Satu Charter; or (iii) when all the amounts outstanding under the New NR Satu Facility have been repaid. The New NR Satu facility is payable on a quarterly basis with a final balloon payment upon maturity. As of December 31, 2019, the balance outstanding under the New NR Satu facility was $74.1 million. The facility requires certain cash balances to be held on deposit during the period of the loan. These balances are referred to in these Consolidated Financial Statements as restricted cash. As of December 31, 2019, the value of the restricted cash deposit secured against the loan was $9.5 million. See note 17. Eskimo SPV Debt In November 2015, we entered into a sale and leaseback transaction pursuant to which we sold the Golar Eskimo to Eskimo SPV, a subsidiary of CMBL, and leased back the vessel under a bareboat charter for a monthly hire rate. In November 2015, Eskimo SPV, which is the legal owner of the Golar Eskimo , entered into a long-term loan facility (the “Eskimo SPV Debt”). The facility bears interest at a rate of LIBOR plus a margin. See note 5. Debt and lease restrictions As of December 31, 2019, we were in compliance with all covenants under our existing debt and lease agreements. |
OBLIGATION UNDER CAPITAL LEASE
OBLIGATION UNDER CAPITAL LEASE | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
OBLIGATION UNDER CAPITAL LEASE | OBLIGATION UNDER FINANCE LEASE (in thousands of $) 2019 2018 Total obligation under finance lease 122,779 119,683 Less: current portion of obligation under finance lease (1,990) (1,564) Non-current portion of obligation under finance lease 120,789 118,119 As of December 31, 2019 and 2018, we operated one vessel under a finance lease. The leasing transaction, which occurred in August 2003, was in relation to the Methane Princess . We novated the Methane Princess contract prior to completion of construction and leased the vessel from the same financial institution in the United Kingdom (the “Methane Princess Lease”). The lessor of the Methane Princess has a second priority security interest in the Methane Princess, the Golar Spirit and the Golar Grand. Our obligation to the lessor under the Methane Princess Lease is secured by a letter of credit (“LC”) provided by other banks. Details of the security deposit provided by us to the bank providing the LC are given in note 17. As of December 31, 2019, we are committed to make quarterly minimum finance lease payments (including interest), as follows: Year ending December 31, (in thousands of $) Methane Princess Lease 2020 8,353 2021 8,678 2022 9,007 2023 9,343 2024 and thereafter 155,264 Total minimum lease payments 190,645 Less: Imputed interest (67,866) Present value of minimum lease payments 122,779 The interest element of the lease rentals is accrued at a floating rate based upon Pound Sterling LIBOR. We determined that the entity that owned the Methane Princess was a variable interest entity in which we have a variable interest and are the primary beneficiary. Upon the initial transfer of the Methane Princess to the financial institution, we measured the subsequently leased vessel at the same amount as if the transfer had not occurred, which was cost less accumulated depreciation at the time of transfer. |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Other Long-term Liabilities Disclosure [Abstract] | |
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES (in thousands of $) 2019 2018 Deferred tax liability (see note 8) 10,643 7,126 Guarantee (see note 25) 6,504 8,275 Deferred credits from finance lease transactions 14,149 14,774 31,296 30,175 Deferred credits from finance lease transactions (in thousands of $) 2019 2018 Deferred credits from finance lease transactions 24,691 24,691 Less: Accumulated amortization (9,917) (9,292) 14,774 15,399 Current 625 625 Non-current 14,149 14,774 14,774 15,399 In connection with the Methane Princess Lease (see note 22), we recorded an amount representing the difference between the net cash proceeds received upon sale of the vessel and the present value of the minimum lease payments. The amortization of the deferred credit for the year is offset against depreciation and amortization expense in the statement of operations. The deferred credits represent the upfront benefits derived from undertaking finance in the form of a UK lease. The deferred credits are amortized over the remaining estimated useful economic life of the Methane Princess on a straight-line basis. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Interest rate risk management In certain situations, we may enter into financial instruments to reduce the risk associated with fluctuations in interest rates. We have entered into swaps that convert floating rate interest obligations to fixed rates, which from an economic perspective hedge the interest rate exposure. We do not hold or issue instruments for speculative or trading purposes. The counterparties to such contracts are major banking and financial institutions. Credit risk exists to the extent that the counterparties are unable to perform under the contracts; however, we do not anticipate non-performance by any of our counterparties. We manage our debt and finance lease portfolio with interest rate swap agreements in U.S. dollars to achieve an overall desired position of fixed and floating interest rates. We hedge account for certain of our interest rate swap arrangements designated as cash flow hedges. Accordingly, the net gains and losses have been reported in a separate component of accumulated other comprehensive income to the extent the hedges are effective. The amount recorded in accumulated other comprehensive income will subsequently be reclassified into earnings, within other financial items, net, in the same period as the hedged items affect earnings. We have entered into the following interest rate swap transactions involving the payment of fixed rates in exchange for LIBOR: Instrument (in thousands of $) Year Ended Notional Amount Maturity Dates Fixed Interest Rate Interest rate swaps: Receiving floating, pay fixed December 31, 2019 1,557,834 2020 to 2026 1.12 % to 2.90% Receiving floating, pay fixed December 31, 2018 1,783,325 2019 to 2026 1.07 % to 2.90% Interest swaps with a notional value of $146.6 million matured during the year ended December 31, 2019. We entered into new interest rate swaps with a notional value of $637.2 million, restructured an existing interest rate swap with a notional value of $100.0 million, and terminated swaps with a notional value of $122.5 million during the year ended December 31, 2018. Foreign currency risk For the periods reported, the majority of our vessels’ gross earnings were receivable in U.S. dollars and the majority of our transactions, assets and liabilities were denominated in U.S. dollars, our functional currency. However, we incur expenditures in other currencies. Our finance lease obligation and related restricted cash deposit are denominated in Pound Sterling. There is a risk that currency fluctuations will have a negative effect on the value of our cash flows. A net foreign exchange loss of $0.9 million, gain of $1.1 million and loss of $0.7 million arose in the years ended December 31, 2019, 2018 and 2017, respectively. The net foreign exchange loss of $0.9 million that arose in the year ended December 31, 2019 was a result of the retranslation of our finance lease obligations and the cash deposits securing those obligations. As of December 31, 2019, and 2018 we had no foreign currency forward contracts. Fair values We recognize our fair value estimates using a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on reliability of inputs used to determine fair value as follows: Level 1: Quoted market prices in active markets for identical assets and liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. There have been no transfers between different levels in the fair value hierarchy during the year. We do not have any level 3 financial instruments. The carrying value and estimated fair value of our financial instruments at December 31, 2019 and 2018 are as follows: (in thousands of $) Fair Value Hierarchy 2019 Carrying Value 2019 Fair Value 2018 Carrying Value 2018 Fair Value Non-Derivatives: Cash and cash equivalents Level 1 47,661 47,661 96,648 96,648 Restricted cash and short-term deposits Level 1 182,261 182,261 172,444 172,444 2015 and 2017 Norwegian Bonds (1) Level 1 400,000 394,715 400,000 396,843 Long-term debt—floating (2) Level 2 822,944 822,944 883,100 883,100 Obligation under finance lease (2) Level 2 122,779 122,779 119,683 119,683 Derivatives: Interest rate swaps asset (3) Level 2 1,285 1,285 17,617 17,617 Interest rate swaps liability (3) Level 2 36,167 36,167 8,753 8,753 1. This pertains to bonds with a combined carrying value of $400.0 million as of December 31, 2019 (2018: $400.0 million) which is included under long-term debt on the balance sheet. The fair value of the bonds as of December 31, 2019 was $394.7 million (2018: $396.8 million), which represents 98.7% (2018: 99.2%) of their face value. 2. Our debt and finance lease obligation are recorded at amortized cost in the consolidated balance sheets. Debt is presented in the above table, gross of deferred financing cost of $6.0 million as of December 31, 2019 (2018: $10.8 million). 3. Derivative liabilities are captured within other current liabilities and derivative assets are captured within other current and non-current assets on the consolidated balance sheet. The following methods and assumptions were used to estimate the fair value of each class of financial instrument. The carrying values of trade accounts receivable, accounts payable, accrued liabilities and working capital facilities approximate fair values because of the short-term maturity of these instruments. The carrying value of cash and cash equivalents, which are highly liquid, is a reasonable estimate of fair value. The estimated fair value for restricted cash and short-term deposits is considered to be equal to the carrying value since they are placed for periods of less than six months. The estimated fair value for long-term restricted cash is considered to be equal to the carrying value since it bears variable interest rates which are reset on a quarterly basis. The estimated fair value of our 2015 Norwegian Bonds and 2017 Norwegian Bonds, are based on the quoted market price as of the balance sheet date. The estimated fair value of our floating long-term debt is considered to be equal to the carrying value since it bears variable interest rates, which are reset on a quarterly basis. The estimated fair value of long-term obligations under finance lease is considered to be equal to the carrying value since it bears interest at a variable interest rate, which is reset on a quarterly basis. The fair value of our derivative instruments is the estimated amount that we would receive or pay to terminate the agreements at the reporting date, taking into account current interest rates, foreign exchange rates, and our credit worthiness and of our swap counterparty. The mark-to-market gain or loss on our interest rate and foreign currency swaps that are not designated as hedges for accounting purposes for the period is reported in the statement of operations caption "(Losses)/gains on derivative instruments” (see note 7). The credit exposure of interest rate swap agreements is represented by the fair value of contracts with a positive fair value at the end of each period, reduced by the effects of master netting agreements. It is our policy to enter into master netting agreements with the counterparties to derivative financial instrument contracts, which give us the legal right to discharge all or a portion of amounts owed to that counterparty by offsetting them against amounts that the counterparty owes to us. We have elected not to offset the fair values of derivative assets and liabilities executed with the same counterparty that are generally subject to enforceable master netting arrangements. However, if we were to offset and record the asset and liability balance of derivatives on a net basis, the amounts presented in our consolidated balance sheets as of December 31, 2019 and 2018 would be adjusted as detailed in the following table: December 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 1,285 (1,029) 256 17,617 (3,281) 14,336 Total liability derivatives 36,167 (1,029) 35,138 8,753 (3,281) 5,472 Under one of our interest rate swaps we were required to provide initial cash collateral of $2.5 million and to subsequently post additional cash collateral that corresponds to any further unrealized loss. As at December 31, 2019, cash collateral amounting to $14.8 million has been provided (see note 17). The cash flows from economic hedges are classified in the same category as the cash flows from the items subject to the economic hedging relationship. Concentrations of credit risk The maximum exposure to credit risk is the carrying value of cash and cash equivalents, restricted cash and short-term deposits, trade accounts receivable, other receivables and amounts due from related parties. In respect of cash and cash equivalents, restricted cash and short-term deposits, credit risk lies with Nordea Bank Finland plc, Citibank, DNB Bank ASA, Santander UK plc, Sumitomo Mitsui Banking Corporation, Standard Chartered plc, Skandinaviska Enskilda Banken AB (publ), and China Merchants Bank Co., Ltd. However, we believe this risk is remote, as they are established and reputable establishments with no prior history of default. During the year ended December 31, 2019, nine charterers accounted for the majority of our operating revenues. We consider the credit risk of these customers to be low. See note 6. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Transactions with related parties: (in thousands of $) 2019 2018 2017 Transactions with Golar and affiliates: Time charter revenues (a) — — 17,423 Management and administrative services fees (b) (9,645) (9,809) (7,762) Ship management fees (c) (4,460) (5,200) (5,903) Interest expense on short-term loans (d) (109) — — Share options expense (e) — — (228) Income on deposits paid to Golar (f) — 4,779 4,622 Distributions with Golar, net (g) (19,291) (42,842) (52,255) Transactions with others: Dividends to China Petroleum Corporation (h) — — (7,000) Amounts due from/(to) related parties: As of December 31, 2019 and 2018, balances with related parties consisted of the following: (in thousands of $) 2019 2018 Balances due from/(to) Golar and its affiliates (d) 2,845 (4,091) Methane Princess lease security deposit movements (i) 2,253 2,854 5,098 (1,237) (a) Time charter revenues - In connection with our acquisition of the Golar Grand in November 2012, Golar provided us with an option pursuant to which in the event that the charterer did not renew or extend its charter for the Golar Grand beyond February 2015, we could require Golar to charter the vessel through to November 2017 at approximately 75% of the hire rate that would have been payable by the charterer. In February 2015, we exercised this option. In May 2017, Golar Grand started its new charter with a major international oil and gas company (the “New Grand Charter”). We sub-chartered back the Golar Grand from Golar at the same time charter rate as the New Grand Charter. The daily time charter rate receivable from Golar under the option had reverted back to the original rate following the vessel's drydocking in April 2017 but was reduced by the sub-charter income under the New Grand Charter. Following the cessation of the arrangement in November 2017, we earned $17.4 million in relation to this charter for year ended December 31, 2017. (b) Management and administrative services fees - We are party to a management and administrative services agreement with Golar Management, a wholly-owned subsidiary of Golar, pursuant to which Golar Management will provide to us certain management and administrative services. The services provided by Golar Management are charged at cost plus a management fee equal to 5% of Golar Management’s costs and expenses incurred in connection with providing these services. We may terminate the agreement by providing 120 days’ written notice. (c) Ship management fees - Golar and certain of its subsidiaries charged vessel management fees to us for the provision of technical and commercial management of the vessels. Each of our vessels is subject to management agreements pursuant to which certain commercial and technical management services are provided by certain subsidiaries of Golar, including Golar Management. We may terminate these agreements by providing 30 days’ written notice. (d) Interest expense on short-term loan, balances due from/(to)Golar and its affiliates - Receivables and payables with Golar and its affiliates primarily comprise of unpaid fees and expenses for management and administrative services and vessel management services performed by Golar and its affiliates, dividends due in respect of the Hilli Common Units, and other related party arrangements, including the Hilli Acquisition. In addition, certain receivables and payables arise when we pay an invoice on behalf of a related party and vice versa. Receivables and payables are generally settled quarterly in arrears. Balances due from and to Golar and its subsidiaries are unsecured, interest-free and intended to be settled in the ordinary course of business. In November 2019, we borrowed $15.0 million from Golar, with the loan bearing interest at a rate of LIBOR plus 5.0%. We repaid the loan in full, including interest of $0.1 million, on December 30, 2019. The movement in the net balance due to Golar and its affiliates as of December 31, 2019 is mainly attributable to the settlement of the outstanding amount due to Golar in relation to the Hilli Acquisition. (e) Share options expense - This relates to a recharge from Golar in relation to the award of 29,950 (with an exercise price of $23.50 at grant date) and 45,000 (with an exercise price of $56.70 at grant date) share options in Golar LNG granted to certain of our directors and officers. The exercise price is reduced by the value of dividends declared and paid. They have a contractual term of five three (f) Income on deposits paid to Golar - In May 2016, we completed the Tundra Acquisition and paid total cash purchase consideration of $107.2 million. In May 2017, we elected to exercise our right (the "Tundra Put Right") under the Tundra Letter Agreement to require Golar to repurchase Tundra Corp at a price equal to the original purchase price. In connection with the exercise of the Tundra Put Right, we and Golar entered into an agreement pursuant to which we agreed to sell Tundra Corp to Golar on the date of the closing of the Tundra Put Sale on October 17, 2017 in return for Golar's promise to pay an amount equal to $107.2 million (the “Deferred Purchase Price”) plus an additional amount equal to 5% per annum of the Deferred Purchase Price (the “Additional Amount”). The Deferred Purchase Price and the Additional Amount were applied to the net purchase price of the Hilli Acquisition on July 12, 2018. We received under the Tundra Letter Agreement $2.2 million as interest income for the year ended December 31, 2017. On August 15, 2017, Golar Partners Operating LLC, our wholly owned subsidiary, entered into a purchase and sale agreement (the “Hilli Purchase Agreement”) for the Hilli Acquisition. Concurrently with the execution of the Hilli Purchase Agreement, we paid a $70 million deposit to Golar, upon which we received interest at a rate of 5% per annum. We have accounted for $nil, $4.8 million, and $2.4 million as interest income for the years ended December 31, 2019, 2018 and 2017 on the Deferred Purchase Price and $70 million deposit. We applied the deposit and interest accrued to the net purchase price on July 12, 2018, upon completion of the Hilli Acquisition. (g) Distributions with Golar, net - We have declared and paid quarterly distributions totaling $36.8 million, $48.4 million, and $52.3 million to Golar for each of the years ended December 31, 2019, 2018 and 2017, respectively in respect of the Common Units and General Partner units owned by it. During the years ended December 31, 2019 and 2018, Hilli LLC declared quarterly distributions totaling $17.5 million and $5.6 million, in respect of the Hilli Common Units owned by us. As of December 31, 2019 and 2018, we have a dividend receivable of $4.5 million and $3.6 million, respectively. (h) Dividends to China Petroleum Corporation - During the years ended December 31, 2019, 2018, and 2017, Faraway Maritime Shipping Co., which is 60% owned by us and 40% owned by China Petroleum Corporation (“CPC”), paid total dividends to CPC of $nil, $nil and $7.0 million, respectively, as the Golar Mazo charter expired in December 2017. (i) Methane Princess Lease security deposit movements - This represents net advances to Golar since the IPO, which correspond with the net release of funds from the security deposits held relating to the Methane Princess Lease. This is in connection with the Methane Princess tax lease indemnity provided by Golar under the Omnibus Agreement (see below). Accordingly, these amounts held with Golar will be settled as part of the eventual termination of the Methane Princess Lease. Other transactions Agency agreement with PT Pesona Sentra Utama (or PT Pesona) - PT Pesona, an Indonesian company owns 51% of the issued share capital in our subsidiary, PTGI, the owner and operator of NR Satu , and provides agency and local representation services for us with respect to NR Satu . During the years ended December 31, 2019, 2018, and 2017, PT Pesona received an agency fee of $0.5 million, $0.9 million and $0.5 million, respectively. PT Pesona and certain of its subsidiaries also charged vessel management fees to us for the provision of technical and commercial management of the vessels amounting to $0.2 million for each of the years ended December 31, 2019, 2018, and 2017. Acquisitions from Golar As described in note (f) above, on July 12, 2018, we purchased 50.0% of the Hilli Common Units from Golar, affiliates of Keppel and B&V. See note 10. Omnibus Agreement In connection with our IPO in April 2011, we entered into an Omnibus Agreement with Golar, Golar GP LLC (our “General Partner”) and others governing, among others: • to what extent we and Golar may compete with each other; • certain rights of first offer on certain FSRUs and LNG carriers operating under charters for five • the provision of certain indemnities to us by Golar. Indemnifications and guarantees Tax lease indemnifications Under the Omnibus Agreement, Golar has agreed to indemnify us in the event of any liabilities in excess of scheduled or final settlement amounts arising from the Methane Princess leasing arrangement and the termination thereof. In addition, Golar has agreed to indemnify us against any liabilities incurred as a consequence of a successful challenge by the UK Revenue Authorities with regard to the initial tax basis of the transactions in respect of the Methane Princess and other vessels previously financed by UK tax leases or in relation to the restructuring terminations in 2010. See note 26. Golar Tundra financing related guarantees In November 2015, Tundra Corp sold the Golar Tundra to a subsidiary of CMBL (“Tundra SPV”) for $254.6 million and subsequently leased back the vessel under a bareboat charter (the “Tundra Lease”). In connection with the Tundra Lease, Golar is a party to a guarantee in favor of Tundra SPV, pursuant to which, in the event that Tundra Corp (a subsidiary of Golar) is in default of its obligations under the Tundra Lease, Golar, as the primary guarantor, will settle any liabilities due within five business days. In addition, we are also party to a further guarantee (the "Tundra Guarantee"), pursuant to which, in the event Golar is unable to satisfy its obligations as the primary guarantor, Tundra SPV may recover from us, as the deficiency guarantor. Under a separate side agreement, Golar has agreed to indemnify us for any costs incurred in our capacity as the deficiency guarantor. Hilli guarantees (in connection with the Hilli Acquisition) (i) Debt Hilli Corp is a party to a Memorandum of Agreement, dated September 9, 2015, with Fortune Lianjiang Shipping S.A., a subsidiary of China State Shipbuilding Corporation (“Fortune”), pursuant to which Hilli Corp has sold to and leased back from Fortune the Hilli under a 10-year bareboat charter agreement (the “Hilli Facility”). The Hilli Facility provided for post-construction financing for the Hilli in the amount of $960 million. Under the Hilli Facility, Hilli Corp will pay to Fortune forty consecutive equal quarterly repayments of 1.375% of the construction cost, plus interest based on LIBOR plus a margin of 3.95%. In connection with the closing of the Hilli Acquisition, we agreed to provide a several guarantee (the “Partnership Guarantee”) of 50% of the outstanding principal and interest amounts payable by Hilli Corp under the Hilli Facility pursuant to a Deed of Amendment, Restatement and Accession relating to a guarantee between Golar, Fortune and us dated July 12, 2018. We entered into a $480.0 million interest rate swap in relation to our proportionate share of the obligation under the Hilli Facility. (ii) Letter of credit On November 28, 2018, we entered into an agreement to guarantee (the "LOC Guarantee") the letter of credit issued by a financial institution in the event of Hilli Corp’s underperformance or non-performance under the LTA. Under the LOC Guarantee, we are severally liable for any outstanding amounts that are payable, based on the percentage ownership that Golar holds in us, multiplied by our percentage ownership in Hilli Common Units. Pursuant to the Partnership Guarantee and the LOC Guarantee, we are required to comply with the following covenants and ratios: • 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. As of December 31, 2019, the amount we have guaranteed under the Partnership Guarantee and the LOC Guarantee is $422.3 million (2018: $455.3 million), and the fair value of debt guarantee after amortization, presented under “Other current liabilities” and “Other non-current liabilities” in our consolidated balance sheet, amounted to $1.8 million and $6.5 million, respectively. As at December 31, 2019, we are in compliance with the covenants and ratios for both Hilli guarantees. Operating expense reimbursement Pursuant to the Hilli Purchase Agreement, we agreed to reimburse Golar, Keppel and B&V for (a) 50% of the amount, if any, by which Operating Expenses (as defined below) are less than $32.4 million per year and (b) 50% of the amount, if any, by which withholding taxes on Operating Expense payments are less than $4.2 million per year, for a period of eight Exchange of Incentive Distribution Rights ("IDRs") Pursuant to the terms of the Exchange Agreement by and between the Partnership, Golar and our General Partner, Golar and our General Partner exchanged all of their IDRs in the Partnership (see note 28). |
OTHER COMMITMENTS AND CONTINGEN
OTHER COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER COMMITMENTS AND CONTINGENCIES | OTHER COMMITMENTS AND CONTINGENCIES Assets pledged (in thousands of $) 2019 2018 Carrying value of vessels and equipment secured against long-term loans and finance leases 1,350,301 1,517,297 Carrying value of investment in leased vessel, net secured against long-term loans and finance leases 114,137 — 1,464,438 1,517,297 Other contractual commitments and contingencies Insurance We insure the legal liability risks for our shipping activities with Gard and Skuld, which are mutual protection and indemnity associations. As a member of a mutual association, we have inquired to the associations based on our claims record in addition to the claims records of all other members of the association. A contingent liability exists to the extent that the claims records of the members of the association in the aggregate show significant deterioration, which results in additional premium on the members. Tax lease benefits As of December 31, 2019, we have one UK tax lease (relating to the Methane Princess ). A termination of this lease would realize the accrued currency gain or loss recorded against the lease liability, net of the restricted cash. As of December 31, 2019, there was a net accrued gain of approximately $1.2 million (2018: $2.1 million). Under the terms of the leasing arrangement, the benefits are derived primarily from the tax depreciation assumed to be available to the lessor as a result of their investment in the vessel. As is typical in these leasing arrangements, as the lessee we are obligated to maintain the lessor’s after-tax margin. Accordingly, in the event of any adverse tax changes or a successful challenge by the Her Majesty's Revenue and Customs (the “HMRC”), the UK tax authorities, with regard to the initial tax basis of the transactions, or in the event of an early termination of the Methane Princess lease or in relation to the other vessels previously financed by UK tax leases, we may be required to make additional payments principally to the applicable UK vessel lessor. We would be required to return all, or a portion of, or in certain circumstances significantly more than the upfront cash benefits that Golar received in respect of the applicable lease financing transaction. Furthermore, the lessor of the Methane Princess has a second priority security interest in the Methane Princess , the Golar Spirit and the Golar Grand . Our obligation to the lessor under the Methane Princess Lease is secured by a letter of credit (“LC”) provided by other banks. Details of the security deposit provided by us to the bank providing the LC are given in Note 17 “Restricted Cash” to our consolidated financial statements. HMRC has been challenging the use of similar tax lease structures and has been engaged in litigation of a test case for some years. In August 2015, following an appeal to the Court of Appeal by the HMRC which set aside previous judgments in favor of the tax payer, the First Tier Tribunal (UK court) ruled in favor of HMRC. The judgments of the First Tier Tribunal do not create binding precedent for other UK court decisions and therefore the ruling in favor of HMRC is not binding in the context of our structures. Further, we consider there are differences in the fact pattern and structure between this case and our leasing arrangements and therefore is not necessarily indicative of any outcome should HMRC challenge us, and we believe that our fact pattern is sufficiently different to succeed if we are challenged by HMRC. HMRC have written to our lessor to indicate that they believe the Methane Princess lease may be similar to the case noted above. We have reviewed the details of the case and the basis of the judgment with our legal and tax advisers to ascertain what impact, if any, the judgment may have on us and the possible range of exposure has been estimated at approximately $nil to $32.0 million (£24.0 million). Golar's discussions with HMRC on this matter have concluded without agreement and, in January 2020, Golar received a closure notice to the inquiry, which states the basis of HMRC’s position. In December 2019, in conjunction with the lessor, Golar obtained supplementary legal advice confirming Golar's position, and consequently a notice of appeal against the closure notice was submitted to HMRC. We remain confident of our position, however given the complexity of these discussions it is impossible to quantify the reasonably possible loss, and we continue to estimate the possible range of exposures as set out above. However, under the indemnity provisions of the Omnibus Agreement, Golar has agreed to indemnify us against any liabilities incurred as a consequence of a successful challenge by the UK Revenue Authorities with regard to the initial tax basis of the Methane Princess lease and in relation to other vessels previously financed by UK tax leases. Legal proceedings and claims We may, from time to time, be involved in legal proceedings and claims that arise in the ordinary course of business. A provision will be recognized in the financial statements only where we believe that a liability will be probable and for which the amounts are reasonably estimable, based upon the facts known prior to the issuance of the financial statements. In November and December 2015, the Indonesian tax authorities issued letters to our subsidiary, PTGI (see note 5), to, among other things, revoke a previously granted VAT importation waiver in the approximate amount of $24.0 million for the NR Satu . In April 2016, PTGI initiated an action in the Indonesian tax court to dispute the waiver cancellation. The final hearing took place in June 2016 and we received the verdict of the Tax Court in November 2017, which rejected PTGI’s claim. In February 2018, PTGI filed a Judicial Review with the Supreme Court of Indonesia, but in December 2018, the Supreme Court of Indonesia ruled against PTGI with regards the validity of waiver cancellation. However, we do not believe it probable that a liability exists as a result of this ruling, as no Tax Underpayment Assessment Notice has been received within the statute of limitations period. Should we receive such notice from the tax authorities, we intend to challenge the legality of the assessment. In any event, we believe PTGI will be indemnified by PTNR for any VAT liability as well as related interest and penalties under our time charter party agreement entered into with them. In December 2019, the Indonesian tax authorities issued tax assessments for land & buildings tax to our subsidiary, PTGI for the years 2015 to 2019 inclusive in relation to the NR Satu , for the amount of $3.5 million. We have subsequently paid the tax assessed to the tax authorities during January 2020 to avoid further penalties. However, we intend to appeal against the assessments for the land & buildings tax and we believe we have reasonable grounds for success, on the basis of no precedent set from past case law and new legislation effective prospectively from January 1, 2020, that now specifically lists FSRUs as being an object liable to land & buildings tax, when it previously did not. |
UNIT-BASED COMPENSATION
UNIT-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
UNIT-BASED COMPENSATION | UNIT-BASED COMPENSATION The Golar LNG Partners LP Long Term Incentive Plan (the “GMLP LTIP”) was adopted by our board of directors, effective as of May 30, 2016. The maximum aggregate number of common units that may be delivered pursuant to any and all awards under the GMLP LTIP shall not exceed 500,000 common units, subject to adjustment due to recapitalization or reorganization as provided under the GMLP LTIP. The GMLP LTIP allows for grants of (i) unit options, (ii) unit appreciation rights, (iii) restricted unit awards, which may include tandem unit distribution rights, (iv) phantom units, (v) unit awards, (vi) other unit-based awards, (vii) cash awards, (viii) distribution equivalent rights (whether granted alone or in tandem with another award, other than a restricted Unit or Unit award), (ix) substitute awards and (x) performance-based awards. Either authorized unissued shares or treasury shares (if there are any) in the Partnership may be used to satisfy exercised options. As of December 31, 2019, 99,000 options to purchase common units had been awarded to our directors and management under the GMLP LTIP. There were no options awarded in the year ended December 31, 2019. The options had an exercise price of $20.55 per unit, representing the closing price of the common units on November 17, 2016, the grant date, and a contractual term of five The fair value of each option award is estimated on the grant date or modification date using the Black-Scholes option pricing model based on the following assumptions as of the grant date. 2017 Risk free interest rate 1.5 % Expected volatility of common units (1) 44.8 % Expected dividend yield (2) 0.0 % Expected life of options (in years) 5.0 years (1) The assumption for expected future volatility is based primarily on an analysis of historical volatility of our common units. (2) The dividend yield has been estimated at 0.0% as the exercise price of the options are reduced by the value of distributions, declared and paid on a per unit basis. A summary of option activity for the years ended December 31, 2019, 2018 and 2017 is presented below: (in thousands of $, except per unit data) Units (in '000s) Weighted average exercise price Weighted average remaining contractual term (years) Options outstanding at December 31, 2018 99 $ 16.10 2.9 Options outstanding at December 31, 2019 99 $ 14.49 1.9 Options exercisable at: December 31, 2019 99 14.49 1.9 December 31, 2018 66 $ 16.10 2.9 Year ended December 31 (in thousands of $) 2019 2018 2017 Fair value of unit options which fully vested in the year 233 233 233 Compensation cost recognized in the consolidated statement of operations 207 234 238 As at December 31, 2019, the intrinsic value of unit options that were both outstanding and exercisable was $nil, as the exercise price was higher than the market value of the common units underlying the options at year end (2018: $nil). |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Partners' Capital Notes [Abstract] | |
EQUITY | EQUITY At December 31, 2019, a total of 69.4% (2018: 69.4%) of the Partnership's common units outstanding were held by the public. The remaining common units were held by Golar and the 2.0% general partner interest was held by our General Partner. All of the Partnership's outstanding Series A Cumulative Redeemable Preferred Units (the “Series A Preferred Units”) are held by the public. Rights and Obligations of Partnership Units • Common units . Common units represent limited partner interests in us. Each outstanding common unit is entitled to one vote on matters subject to a vote of common unitholders. However, if at any time, any person or group owns beneficially more than 4.9% or more of any class of units outstanding, any such units owned by that person or group in excess of 4.9% may not be voted (except for purposes of nominating a person for election to our Board). The voting rights of any such common unitholder in excess of 4.9% will effectively be redistributed pro rata among the other common unitholders holding less than 4.9% of the voting power of such class of units. The General Partner, its affiliates and persons who acquired common units with the prior approval of the Board will not be subject to this 4.9% limit except with respect to voting their common units in the election of the four elected directors. • General partner units. There is a limitation on the transferability of the general partner interest such that the General Partner may not transfer all or any part of its general partner interest to another person (except to an affiliate of the General Partner or another entity as part of the merger or consolidation of the General Partner with or into another entity or the transfer by the General Partner of all or substantially all of its assets to another entity) prior to March 31, 2021 without the approval of the holders of at least a majority of the outstanding common units, excluding common units held by the General Partner and its affiliates. The general partner units are not entitled to vote in the election of the four elected directors. However, subject to the rights of the holders of Series A Preferred Units in certain instances, the General Partner in its sole discretion appoints three of the seven members of the Board. • IDRs. The IDRs are non-voting and represent rights to receive an increasing percentage of quarterly distributions of available cash from operating surplus after the minimum quarterly distribution and the target distribution levels have been achieved (see note 29). Pursuant to the partnership agreement, the IDRs are transferable without unitholder approval. • Series A Preferred Units . The Series A Preferred Units represent perpetual equity interests in us and, unlike our indebtedness, will not give rise to a claim for payment of a principal amount at a particular date. Series A Preferred Units have the voting rights described below under “Series A Preferred Units”. The Series A Preferred Units have preferential distribution rights to our common units and rank junior to all of our indebtedness as set forth below. For additional information regarding the common units, general partner units, IDRs and Series A Preferred Units, please see our Registration Statement on Form 8-A/A filed on November 13, 2017. Equity Issuances The following table shows the movement in the number of preferred units, common units, and general partner units during the years ended December 31, 2019, 2018 and 2017: (in units) Preferred Units Common Units GP Units December 31, 2016 — 64,073,291 1,318,517 February 2017 common unit offering — 5,175,000 94,714 October 2017 preferred units offering 5,520,000 — — November 2017 earn-out units conversion (1st tranche) — 374,295 7,639 During 2017 Common Unit ATM Program — 145,675 2,973 December 31, 2017 5,520,000 69,768,261 1,423,843 January 2018 Common Unit ATM Program — 617,969 12,548 During 2018 unit repurchase program — (930,866) — December 31, 2018 5,520,000 69,455,364 1,436,391 August 2019 unit repurchase program — (153,728) — December 31, 2019 5,520,000 69,301,636 1,436,391 In March 2018, our Board approved a common unit repurchase program of up to $25.0 million of our outstanding common units in the open market over a two In September 2017, we entered into an equity distribution agreement with a sales agent pursuant to which we may, from time to time issue common units with an aggregate offering price of up to $150 million (the “Common Unit ATM Program”). During 2017 and 2018, we sold a total of 763,644 common units under the Common Unit ATM program, at an average gross sales price of $23.08 per unit, for which we received $17.4 million of net proceeds. In connection with such sales, our General Partner purchased 15,521 general partner units at an average price of $23.08 per unit, for which we received an additional $0.4 million of proceeds. Exchange of Incentive Distribution Rights On October 19, 2016 (the “IDR Exchange Closing Date”), pursuant to the terms of an Exchange Agreement (the “Exchange Agreement”), dated as of October 13, 2016, by and between the Partnership, Golar and our General Partner. Golar and our General Partner exchanged all of their incentive distribution rights in the Partnership (“Old IDRs”) for (i) the issuance by us on the IDR Exchange Closing Date of a new class of incentive distribution rights in the Partnership (“New IDRs”), (ii) an aggregate of 2,994,364 additional common units and an aggregate of 61,109 additional general partner units and (iii) the issuance in the future of an aggregate of up to 748,592 additional common units and up to 15,278 additional general partner units (collectively, the “Earn-Out Units”) that may be issued subject to certain conditions described below. The new IDRs result in the minimum distribution level increasing from $0.3850 per common unit to $0.5775 per common unit. The fair value of the Old IDRs was not materially different to the fair value of all of the newly issued instruments. On the IDR Exchange Closing Date (i) the Old IDRs were exchanged by Golar and the General Partner and canceled by us, (ii) 100% of the New IDRs were issued to the General Partner and Golar, (iii) 2,425,435 and 568,929 additional common units were issued to the General Partner and Golar, respectively, and (iv) 61,109 general partner units were issued to the General Partner. As of November 14, 2017 we had paid a distribution of available cash from operating surplus pursuant to the terms of our Second Amended and Restated Partnership Agreement, on each of the outstanding common units equal to or greater than $0.5775 per common unit in respect of each of the quarterly periods ended December 31, 2016, March 31, 2017, June 30, 2017 and September 30, 2017. Accordingly, we issued 50% of the Earn-Out Units - 374,295 common units and 7,639 general partner units to Golar and the General Partner, respectively. On October 24, 2018, we declared a reduced quarterly distribution of $0.4042 per common unit in respect of the quarterly period ended September 30, 2018. Consequently, we did not meet the requirement to pay a distribution of available cash from operating surplus on each of the outstanding common units equal to or greater than $0.5775 per common unit in respect of each of the quarterly periods ended December 31, 2017, March 31, 2018, June 30, 2018 and September 30, 2018. The remaining 50% of the Earn-Out Units were not issued. In relation to our IDR reset transaction, we accounted for this as a modification of the Old IDRs and determined that the earn-out units met the definition of a derivative. Accordingly, the overall effect of the transaction was (i) reclassification of the initial fair value of the derivative from equity to current liabilities of $15.0 million; (ii) reallocation between unitholders within equity due to the recognition of the incremental fair value of the modification and fair values of newly issued instruments and resulting deemed distribution. We recognized in 2017, a mark-to-market gain of $7.4 million reducing the fair value of the Earn-Out Units derivative to $nil. The issuance of the first 50% of the earn-out units valued at $8.0 million was transferred to equity in November 2017 (see note 24). Series A Preferred Units Our 8.75% Series A Cumulative Redeemable Preferred Units are listed on the Nasdaq Global Market under the symbol “GMLPP”. On October 31, 2017 we sold in a registered public offering 5,520,000 of our Series A Preferred Units, liquidation preference $25.00 per unit. We raised proceeds, net of the underwriters discounts and offering fees, of $133.0 million. The Series A Preferred Units rank: • senior to our common units and to each other class or series of limited partner interests or other equity securities established after the original issue date of the Series A Preferred Units that is not expressly made senior to or on parity with the Series A Preferred Units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up, whether voluntary or involuntary (“Junior Securities”); • pari passu with any class or series of limited partner interests or other equity securities established after the original issue date of the Series A Preferred Units with terms expressly providing that such class or series ranks on a parity with the Series A Preferred Units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up, whether voluntary or involuntary (“Parity Securities”); • junior to all of our indebtedness and other liabilities with respect to assets available to satisfy claims against us; and • junior to each other class or series of limited partner interests or other equity securities expressly made senior to the Series A Preferred Units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up, whether voluntary or involuntary (“Senior Securities”). The Series A Preferred Units have no conversion or exchange rights and are not subject to any pre-emptive rights. Distributions on the Series A Preferred Units are payable out of amounts legally available therefor at a rate equal to 8.75% per annum of the stated liquidation preference. Distributions are payable quarterly in arrears on the 15 th day of February, May, August and November of each year, when, as and if declared by our Board. The first distribution on the Series A Preferred Units was paid on February 15, 2018 in an amount equal to $0.63802 per unit, representing accumulated distributions from October 31, 2017, the original issuance date of the Series A Preferred Units, through February 14, 2018. The Series A Preferred Units generally have no voting rights. However, if and whenever distributions payable on the Series A Preferred Units are in arrears for six or more quarterly periods, whether or not consecutive, holders of Series A Preferred Units, voting as a class together with the holders of any Parity Securities upon which like voting rights have been conferred and are exercisable, will have the right to replace one of the members of our Board appointed by our General Partner with a person nominated by such holders (unless the holders of Series A Preferred Units and Parity Securities upon which like voting rights have been conferred voting as a class, have previously elected a member of our Board, and such director continues then to serve on the Board). Distributions payable on the Series A Preferred Units will be considered to be in arrears for any quarterly period for which full cumulative distributions through the most recent distribution payment date have not been paid on all outstanding Series A Preferred Units. The right of such holders of Series A Preferred Units to elect a member of our Board will continue until such time as all accumulated and unpaid distributions on the Series A Preferred Units have been paid in full. In addition, unless we have received the affirmative vote or consent of the holders of at least two-thirds of the outstanding Series A Preferred Units, voting as a single class, our Board may not adopt any amendment to our partnership agreement that would have a material adverse effect on the existing terms of the Series A Preferred Units. In addition, unless we have received the affirmative vote or consent of the holders of at least two-thirds of the outstanding Series A Preferred Units, voting as a class together with holders of any other Parity Securities upon which like voting rights have been conferred and are exercisable, we may not (i) issue any Parity Securities if the cumulative distributions on Series A Preferred Units are in arrears or (ii) create or issue any Senior Securities. In the event of a liquidation, dissolution or winding up of our affairs, whether voluntary or involuntary, holders of Series A Preferred Units will have the right to receive a liquidation preference of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of payment, whether declared or not. These payments will be paid before any payments are paid to our common unitholders. At any time on or after October 31, 2022, we may redeem, in whole or in part, the Series A Preferred Units at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon on the date of redemption, whether declared or not. Any such redemption will be effected from funds legally available for such purpose. We must provide not less than 30 days’ and not more than 60 days’ written notice of any such redemption. |
EARNINGS PER UNIT AND CASH DIST
EARNINGS PER UNIT AND CASH DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER UNIT AND CASH DISTRIBUTIONS [Abstract] | |
EARNINGS PER UNIT AND CASH DISTRIBUTIONS | EARNINGS PER UNIT AND CASH DISTRIBUTIONS Earnings per unit have been calculated in accordance with the distribution guidelines set forth in the partnership agreement and are determined by adjusting net income for the period by distributions made or to be made in relation to the period irrespective of the declaration and payment dates. The calculations of basic and diluted earnings per common unit are presented below: (in thousands of $ except unit and per unit data) 2019 2018 2017 Common unitholders’ interest in net income 5,648 59,925 124,656 Less: distributions paid (1) (112,201) (137,335) (160,069) Over distributed earnings (106,553) (77,410) (35,413) Basic: Weighted average common units outstanding (in thousands) 69,397 69,944 68,671 Diluted: Weighted average common units outstanding (in thousands) 69,397 69,944 68,671 Earn-out units — — 654 Common unit and common unit equivalents 69,397 69,944 69,325 Earnings per unit - Common unitholders : Basic $ 0.08 $ 0.86 $ 1.82 Diluted 0.08 0.86 1.80 Cash distributions declared and paid in the period per common unit (2) 1.62 1.96 2.31 Subsequent event: Cash distributions declared and paid per common unit relating to the period (3) 0.40 0.40 0.58 __________________________________________ (1) Refers to distributions made or to be made to the common unitholders in relation to the period irrespective of the declaration and payment dates, and is based on the weighted average number of units outstanding in the period. (2) Refers to cash distributions declared and paid during the period. (3) Refers to cash distributions relating to the period, declared and paid subsequent to the period end. As of December 31, 2019, of our total number of common units outstanding, 69.4% (2018: 69.4%) were held by the public and the remaining common units were held by Golar. Earnings per common unit is calculated using the two class method. Basic earnings per common unit is determined by adjusting net income for the period by distributions made or to be made in relation to the period. Any undistributed earnings for the period are allocated to the various unitholders based on the distribution waterfall for cash available for distribution as specified in the partnership agreement. Any distributions in excess of earnings are allocated to partnership units based upon the allocation and distribution of amounts from partners’ capital accounts. The resulting earnings figure is divided by the weighted average number of units outstanding during the period. Diluted earnings per common unit reflect the potential dilution that occur if securities or other contracts to issue common units were exercised. The various partnership interests in net income were calculated as if all net income was distributed according to the terms of the partnership agreement, regardless of whether those earnings would or could be distributed. The partnership agreement does not provide for the distribution of net income; rather, it provides for the distribution of available cash, which is a contractually defined term that generally means all cash on hand at the end of the quarter after establishment of cash reserves determined by our Board to (i) provide for the proper conduct of our business, among other things, including reserves for maintenance and replacement capital expenditure and anticipated credit needs; (ii) comply with applicable law and our debt and other agreements; (iii) provide funds for payments on the Series A Preferred Units and (iv) provide funds for distributions to unitholders for any one or more of the next four quarters. In addition, the holders of the incentive distribution rights are currently entitled to incentive distributions if the amount we distribute to unitholders with respect to any quarter exceeds specified target levels. Unlike available cash, net income is affected by non-cash items, such as depreciation and amortization, unrealized gains or losses on non-designated derivative instruments and foreign currency translation gains/(losses). Under our partnership agreement, we make distributions of available cash from operating surplus for any quarter as set forth in the following table. The following table illustrates the percentage allocations of the additional available cash from operating surplus among the common unitholders, our General Partner and the holders of the IDRs up to the various target distribution levels. The amounts set forth under “Marginal Percentage Interest in Distributions” are the percentage interests of the common unitholders, our General Partner and the holders of the IDRs in any available cash from operating surplus we distribute up to and including the corresponding amount in the column “Total Quarterly Distribution Target Amount,” until available cash from operating surplus we distribute reaches the next target distribution level, if any. The percentage interests shown for the common unitholders, our General Partner and the holders of the IDRs for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests shown for our General Partner include its 2.0% general partner interest only and assume that our General Partner has contributed any capital necessary to maintain its 2.0% general partner interest. Marginal Percentage Interest in Distributions Quarterly Distribution Target Amount (per unit) Common Unitholders General Partner Holders of IDRs Minimum Quarterly Distribution $ 0.5775 98 % 2 % — First Target Distribution up to $0.6641 98 % 2 % — Second Target Distribution above $0.6641 up to $0.7219 85 % 2 % 13 % Third Target Distribution above $0.7219 up to $0.8663 75 % 2 % 23 % Thereafter above $0.8663 50 % 2 % 48 % The percentage interests set forth above assume that our General Partner maintains its 2.0% general partner interest and that we do not issue additional classes of equity securities. The Series A Preferred Units rank senior to our common units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up, whether voluntary or involuntary. See note |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Global COVID-19 Outbreak After the balance sheet date, the outbreak of the 2019 coronavirus ("COVID-19") that originated in China and subsequently spread to many countries worldwide has resulted in the implementation of numerous actions taken by governments and governmental agencies in an attempt to mitigate the spread of COVID-19. These measures have resulted in a significant reduction in global economic activity and extreme volatility in the global financial markets, and the global demand for oil, natural gas and LNG has declined significantly. To date our operations have been impacted primarily by the cancellation and/or delays of crew changes on our vessels, postponement of equipment maintenance and various inspections. However, the extent to which COVID-19 will impact our results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including among others, the severity and duration of COVID-19 and the actions to contain or treat its impact. An estimate of the impact cannot therefore be made at this time. The severity and duration, as well as the impact of these factors remain uncertain but could have a material impact on our earnings, cash flow and financial condition. Series A Preferred Units ATM Program On January 28, 2020, the Partnership entered into a sales agreement with a sales agent (the "Agent"), relating to the Partnership’s 8.75% Series A Cumulative Redeemable Preferred Units representing limited partner interests (the "Series A Preferred Units"). In accordance with the terms of the sales agreement, we may, through the Agent, offer and sell from time to time, Series A Preferred Units having an aggregate offering price of up to $120.0 million. Cash Distributions In February 2020, we paid a cash distribution of $0.4042 per common unit in respect of the three months ended December 31, 2019 to unitholders of record as of February 7, 2020. We also paid a cash distribution of $0.546875 per Series A Preferred Unit for the period from November 15, 2019 through to February 14, 2020 to our Series A Preferred unitholders of record as of February 7, 2020. On April 1, 2020, we announced a 95% reduction to our quarterly common unit distribution to $0.0202 per unit for the quarter ended March 31, 2020 (from $0.4042 per unit in the previous quarter). Financing In February 2020, we borrowed $25.0 million from Golar, with interest of LIBOR plus 5.0%. We repaid the loan in full, including interest. 2015 Norwegian Bonds and 2017 Norwegian Bonds Refinancing On April 1, 2020, we announced the initiation of a process to seek bondholder approval for an extension of the maturity date by 18 months, subject to certain terms and conditions, for our 2015 Norwegian Bonds and our 2017 Norwegian Bonds. We intend to use the 18 month extension period to arrange a long-term refinancing of the 2015 Norwegian Bonds and the 2017 Norwegian Bonds, which has not been possible in light of the current turmoil in the Nordic and international capital markets due in part to the adverse conditions caused by COVID-19. We have scheduled a bondholder meeting on May 5, 2020 to approve the proposed amendments to the 2015 Norwegian Bonds and the 2017 Norwegian Bonds (the "Norwegian Bond Amendments"). In turn for the 18 month extension we will pay an amendment fee of 0.5% of the par value of all of the 2015 Norwegian Bonds and 2017 Norwegian Bonds.The proposed amendments include the following: 2015 Norwegian Bonds: The interest rate on the 2015 Norwegian Bonds will increase by 185 basis points, from LIBOR plus 4.4% per annum to LIBOR plus 6.25% per annum. In addition, the repayment profile of the 2015 Norwegian Bonds will change from a bullet repayment on the original maturity date to amortization as follows: • Equal instalments of $5 million (at 100% of par value), the first time on September 30, 2020 and thereafter on each interest payment date in the period up to and including the interest payment date in May 2021; • Equal instalments of $3.75 million (at 100% of the par value) from, but excluding the interest payment date in May 2021 and on each interest payment date thereafter; and • Repayment of the remaining amount at a price of 105% of the par value on the amended maturity date of November 22, 2021. 2017 Norwegian Bonds: The interest rate on the 2017 Norwegian Bonds will increase by 185 basis points, from LIBOR plus 6.25% per annum to LIBOR plus 8.1% per annum. In addition, the repayment profile of the 2017 Norwegian Bonds will change from a bullet repayment upon the original maturity date to amortization as follows: • Equal instalments of $5 million (at 100% of par value), the first time on September 30, 2020 and thereafter on each interest payment date in the period up to and including the interest payment date in May 2021; • Equal instalments of $6.25 million (at 100% of the par value) from, but excluding the interest payment date in November 2021 and on each interest payment date thereafter; • Equal instalments of $10 million (at 100% of the par value) from and including the interest payment date in February 2022 after the 2015 Norwegian Bonds have been redeemed in full; and • Repayment of the remaining amount at a price of 105% of the par value on the amended maturity date of November 22, 2022. Under the Norwegian Bond Amendments, we may incur no additional financial indebtedness without applying the proceeds received therefrom to redeem the 2015 Norwegian Bonds and the 2017 Norwegian Bonds on a pro rata basis, other than certain permitted financial indebtedness incurred: (i) to repay existing financial indebtedness, (ii) by way of secured debt from financial institutions incurred in the ordinary course of business in connection with acquisitions of assets or (iii) an amount up to $25 million in aggregate, provided that the proceeds in the case of each of (i) to (iii) above are not applied for redemption of any or all of the 2017 Norwegian Bonds prior to the redemption of the 2015 Norwegian Bonds in full. In addition, the Norwegian Bond Amendments will contain a provision prohibiting us from paying distributions to our common unit holders in an amount greater than (i) $0.0808 per common unit per annum or (ii) the aggregate amount of cash equity raised. Additionally, under the Norwegian Bond Amendments, we will not be permitted to repurchase any of our common or preferred units As of April 30, 2020, we had received support from bondholders for the required two-thirds majority to approve the proposed amendments at the meeting on May 5, 2020 for each of the 2015 Norwegian and the 2017 Norwegian Bonds. |
BASIS OF PREPARATION AND SUMM_2
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of preparation | Basis of preparation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). |
Principles of consolidation | Principles of consolidation A variable interest entity (“VIE”) is defined by the accounting standard as a legal entity where either (a) equity interest holders, as a group, lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. A party that is a variable interest holder is required to consolidate a VIE if the holder has both (a) the power to direct the activities that most significantly impact the entity’s economic performance, and (b) the obligation to absorb losses that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. These consolidated financial statements include the financial statements of the entities listed in notes 4 and 5. Investments in entities in which we directly or indirectly hold more than 50% of the voting control are consolidated in the financial statements, as well as certain variable interest entities in which we are deemed to be the primary beneficiary. All intercompany balances and transactions are eliminated. The non-controlling interests of the above mentioned subsidiaries are included in the consolidated balance sheets and consolidated statements of operations as “Non-controlling interests”. |
Foreign currencies | Foreign currencies We and our subsidiaries’ functional currency is the U.S. dollar as the majority of the revenues are received in U.S. dollars and a majority of our expenditures are incurred in U.S. dollars. Our reporting currency is U.S. dollars. Transactions in foreign currencies during the year are translated into U.S. dollars at the rates of exchange in effect at the date of the transaction. Foreign currency monetary assets and liabilities are translated using rates of exchange at the balance sheet date. Foreign currency non-monetary assets and liabilities are translated using historical rates of exchange. Foreign currency transaction and translation gains or losses are included in the statements of operations. |
Leases accounting versus revenue accounting | Lease accounting versus revenue accounting Contracts relating to our LNG carriers and FSRUs can take the form of operating leases, sales-type leases, direct financing leases and operating and services agreements. Although the substance of these contracts are similar, the accounting treatment varies. We outline our policies for determining the appropriate U.S. GAAP treatment below. To determine whether a contract conveys a lease agreement for a period of time, we assess whether, throughout the period of use, the customer has both of the following: • the right to obtain substantially all of the economic benefits from the use of the identified asset; and • the right to direct the use of that identified asset. If a contract relating to an asset fails to give the customer both of the above rights, we account for the agreement as a revenue contract. A contract relating to an asset will generally be accounted for as a revenue contract if the customer does not contract for substantially all of the capacity of the asset (i.e. another third party could contract for a meaningful amount of the asset capacity). Where we provide services unrelated to an asset contract, we account for the services as a revenue contract. Lease accounting When a contract is designated as a lease, we make an assessment on whether the contract is an operating lease, sales-type lease, or direct financing lease. An agreement will be a sales-type lease if any of the following conditions are met: • ownership of the asset is transferred at the end of the lease term; • the contract contains an option to purchase the asset which is reasonably certain to be exercised; • the lease term is for a major part of the remaining useful life of the contract, although contracts entered into the last 25% of the asset’s useful life are not subject to this criterion; • the discounted value of the fixed payments under the lease represent substantially all of the fair value of the asset; or |
Lessor accounting | Lessor accounting In making the classification assessment, we estimate the residual value of the underlying asset at the end of the lease term with reference to broker valuations. None of our lease contracts contain residual value guarantees, and any purchase options are disclosed in note 9. Agreements with renewal and termination options in the control of the lessee are included together with the non-cancellable contract period in the lease term when “reasonably certain” to be exercised or if controlled by the lessor. The determination of reasonably certain depends on whether the lessee has an economic incentive to exercise the option. Generally, lease accounting commences when the asset is made available to the customer, however, where the contract contains specific customer acceptance testing conditions, lease accounting will not commence until the asset has successfully passed the acceptance test. We assess a lease under the modification guidance when there is change to the terms and conditions of the contract that results in a change in the scope or the consideration of the lease. Costs directly associated with the execution of the lease or costs incurred after lease inception or the execution of the contract but prior to the commencement of the lease that directly relate to preparing the asset for the lease (i.e. bunker costs), are capitalized and amortized to the consolidated statements of operations over the lease term. We also defer upfront revenue payments (i.e. repositioning fees) to the consolidated balance sheet and amortize to the consolidated statements of operations over the lease term. Time charter operating leases Revenues include fixed minimum lease payments under time charters and fees for repositioning vessels. Revenues generated from time charters, which we classify as operating leases, are recorded over the term of the charter on a straight-line basis as service is provided and is included in "Time charter revenues" in our consolidated statement of operations. Variable revenue is accounted for as incurred in the relevant period. Fixed revenue includes fixed payments (including in-substance fixed payments that are unavoidable) and variable payments based on a rate or index. However, we do not recognize revenue if a charter has not been contractually committed to by a customer and us, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. For our operating leases, we have elected the practical expedient to combine our service revenue and operating lease income as the timing and pattern of transfer of the components are the same. Repositioning fees (included in time and voyage charter revenues) received in respect of time charters are recognized at the end of the charter when the fee becomes fixed and determinable. However, where there is a fixed amount specified in the charter, which is not dependent upon redelivery location, the fee will be recognized evenly over the term of the charter. Time charter sales-type leases On inception of a sales-type lease for which we are lessor, we de-recognize the related asset and record "Net investment in leased vessel” on our consolidated balance sheet. The net investment in leased vessel represents the fixed payments due from the lessee, discounted at the rate implicit in the lease. We allocate sales-type lease income to the consolidated statements of operations in the "Interest income” line item to reflect a constant periodic rate of return on our sales-type lease investment. For sales-type leases, non-lease revenue and operating and service agreements in connection with the time charters are recorded over the term of the charter as the service is provided. The transaction price is based on the standalone selling price for the service. Lessor expense recognition Initial direct costs (those directly related to the negotiation and consummation of the lease) are deferred and allocated to earnings over the lease term. Under our time charters, the majority of voyage expenses are paid by our customers. Voyage related expenses, principally fuel, may also be incurred when positioning or repositioning the vessel before or after the period of time charter and during periods when the vessel is not under charter or is off-hire, for example when the vessel is undergoing repairs. These expenses are recognized as incurred. Vessel operating expenses, which are recognized when incurred, include crewing, repairs and maintenance, insurance, stores, lube oils, communication expenses and third party management fees. |
Use of estimates | Use of estimates The preparation of financial statements requires that management make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Investment in Affiliate | Investment in affiliate Affiliates are entities over which we generally have between 20% and 50% of the voting rights, or over which we have significant influence, but over which we do not exercise control or have the power to control the financial and operational policies. Investments in these entities are accounted for by the equity method of accounting. Affiliates are also entities in which we hold a majority ownership interest, but we do not control, due to the participating rights of non-controlling interests. Under the equity method of accounting, we record our investment in the affiliate at cost, and adjust the carrying amount for our share of the earnings or losses of the affiliate subsequent to the date of the investment and report the recognized earnings or losses in income. Dividends received from an affiliate reduce the carrying amount of the investment. The excess, if any, of the purchase price over book value of our investments in equity method affiliates, or basis difference, is included in the consolidated balance sheets as "Investment in affiliate". We allocate the basis difference across the assets and liabilities of the affiliate, with the residual assigned to goodwill. The basis difference will then be amortized through the consolidated statements of operations as part of the equity method of accounting. When our share of losses in an affiliate equals or exceeds the value of our interest, we do not recognize further losses, unless we have incurred obligations or made payments on behalf of the affiliate. We recognize gains and losses in earnings based on the economic results allocated based on a contractual agreement, net of interest, tax and basis difference amortization. |
Guarantees | Guarantees Guarantees issued by us, excluding those that are guaranteeing our own performance, are recognized at fair value at the time that the guarantees are issued, and reported in “Other current liabilities” and "Other non-current liabilities". A liability equal to the fair value of the obligation undertaken in issuing the guarantee in connection with an investment in affiliate is recognized. If it becomes probable that we will have to perform under a guarantee, we will recognize an additional liability if the amount of the loss can be reasonably estimated. The recognition of fair value is not required for certain guarantees such as the parent's guarantee of a subsidiary's debt to a third party. For those guarantees excluded from the above guidance requiring the fair value recognition provision of the liability, financial statement disclosures of such items are made. |
Business combinations | Business combinations When the assets acquired and liabilities assumed constitute a business, then the acquisition is a business combination. If substantially all of the fair value of the gross asset acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset is not considered a business. Business combinations are accounted for under the acquisition method. On acquisition, the identifiable assets, liabilities and contingent liabilities are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognized as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. bargain purchase) is credited to the statement of operations in the period of acquisition. The consideration transferred for an acquisition is measured at fair value of the consideration given. Acquisition related costs are expensed as incurred. The results of operations of acquired subsidiaries are included from the date of acquisition. |
Income taxes | Income taxes Income taxes are based on a separate return basis. The guidance on income taxes prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Penalties and interest related to uncertain tax positions are recognized in “Income taxes” in our consolidated statements of operations. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization of the deferred income tax asset is dependent on generating sufficient taxable income in future years. |
Cash and cash equivalents | Cash and cash equivalents We consider all demand and time deposits and highly liquid investments with original maturities of three months or less to be equivalent to cash. |
Restricted cash and short-term deposits | Restricted cash and short-term deposits Restricted cash and short-term deposits consist of bank deposits, which may only be used to settle certain pre-arranged loan or lease payments, other claims which requires us to restrict cash, performance bonds related to charters, cash collateral required for certain swaps, and cash held by the VIE. We consider all short-term deposits as held to maturity. These deposits are carried at amortized cost. We place our short-term deposits primarily in fixed term deposits with high credit quality financial institutions. |
Trade accounts receivable | Trade accounts receivable Trade receivables are presented net of allowances for doubtful balances. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate allowance for doubtful accounts. |
Inventories | Inventories Inventories, which are comprised principally of fuel, lubricating oils and vessel spares, are stated at the lower of cost or market value. Cost is determined on a first-in, first-out basis. |
Vessels and equipment | Vessels and equipment Vessels are stated at cost less accumulated depreciation. The cost of vessels less the estimated residual value is depreciated on a straight-line basis over the assets’ remaining useful economic lives. Management estimates the residual values of our vessels based on a scrap value cost of steel and aluminum times the weight of the vessel noted in lightweight tons. Residual values are periodically reviewed and revised to recognize changes in conditions, new regulations or other reasons. The cost of building mooring equipment is capitalized and depreciated over the initial lease term of the related charter. Refurbishment costs incurred during the period are capitalized as part of vessels and depreciated over the vessels’ remaining useful economic lives. Refurbishment costs are costs that appreciably increase the capacity, or improve the efficiency or safety of vessels and equipment. Drydocking expenditures are capitalized when incurred and amortized over the period until the next anticipated drydocking, which is generally every five years. For vessels that are newly built or acquired, we have adopted the “built-in overhaul” method of accounting. The built-in overhaul method is based on the segregation of vessel costs into those that should be depreciated over the useful life of the vessel and those that require drydocking at periodic intervals to reflect the different useful lives of the components of the assets. The estimated cost of the drydocking component is amortized until the date of the first drydocking following acquisition, upon which the cost is capitalized and the process is repeated. When a vessel is disposed, any unamortized drydocking expenditure is charged against income in the period of disposal. Useful lives applied in depreciation are as follows: Vessels (excluding converted FSRUs) 40 years Vessels - converted FSRUs 20 years from conversion date Drydocking expenditure 5 years Mooring equipment 11 years |
Vessel under capital lease | Vessel under finance lease We lease one vessel under an agreement that has been accounted for as a finance lease. Obligations under finance lease are carried at the present value of future minimum lease payments, and the asset balance is amortized on a straight-line basis over the remaining economic useful life of the vessel. Interest expense is calculated at a constant rate over the term of the lease. Depreciation of the vessel under finance lease is included within depreciation and amortization expense in the statement of operations. The vessel under finance lease is depreciated on a straight-line basis over the vessel’s remaining useful economic life, based on a useful life of 40 years. Refurbishment costs and drydocking expenditures incurred in respect of the vessel under finance lease is accounted for consistently as that of an owned vessel. Our finance lease is ‘funded’ via long term cash deposits which closely match the lease liability. Future changes in the lease liability arising from interest rate changes are only partially offset by changes in interest income on the cash deposits, and where differences arise, this is funded by, or released to, available working capital. Income derived from the sale of subsequently leased assets is deferred and amortized in proportion to the amortization of the leased assets (see note 22). Amortization of deferred income is offset against depreciation and amortization expense in the statement of operations. |
Intangible assets | Intangible assetsIntangible assets pertain to customer related and contract based assets representing primarily long-term time charter party agreements acquired in connection with the acquisition of certain subsidiaries from Golar. Intangible assets identified are recorded at fair value. Fair value is determined by reference to the discounted amount of expected future cash flows. These intangible assets are amortized over the term of the time charter party agreement and the amortization expense is included in the statement of operations in the depreciation and amortization line item. Impairment testing is performed when events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. |
Impairment of long-lived assets | Impairment of long-lived assets We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. In assessing the recoverability of our vessels’ carrying amounts, we make assumptions regarding estimated future cash flows and estimates in respect of residual scrap value. Management performs an annual impairment assessment and when such events or changes in circumstances are present, we assess the recoverability of long-term assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, an impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. |
Deferred charges | Deferred charges Costs associated with long-term financing, including debt arrangement fees, are deferred and amortized over the term of the relevant loan under the effective interest method. Amortization of debt issuance cost is included in interest expense. These costs are presented as a deduction from the corresponding liability, consistent with debt discounts. |
Provisions | ProvisionsIn the ordinary course of business, we are subject to various claims, suits and complaints. Management, in consultation with internal and external advisers, will provide for a contingent loss in the financial statements if the contingency was present at the date of the financial statements and the likelihood of loss was probable and the amount can be reasonably estimated. If we have determined that the reasonable estimate of the loss is a range and there is no best estimate within the range, we will provide the lower amount within the range. |
Derivatives | Derivatives We use derivatives to reduce market risks associated with our operations. We use interest rate swaps for the management of interest risk exposure. The interest rate swaps effectively convert a portion of our debt from a floating to a fixed rate over the life of the transactions without an exchange of underlying principal. We seek to reduce our exposure to fluctuations in foreign exchange rates through the use of foreign currency forward contracts. All derivative instruments are initially recorded at fair value as either assets or liabilities in the accompanying balance sheets and subsequently remeasured to fair value, regardless of the purpose or intent for holding the derivative. Where the fair value of a derivative instrument is a net liability, the derivative instrument is classified in “Other current liabilities” in the balance sheet. Where the fair value of a derivative instrument is a net asset, the derivative instrument is classified in “Other current assets” or “Other non-current assets” in the balance sheet depending on its maturity. The method of recognizing the resulting gain or loss is dependent on whether the derivative contract is designed to hedge a specific risk and also qualifies for hedge accounting. For derivative instruments that are not designated or do not qualify as hedges, the changes in fair value of the derivative financial instrument are recognized in earnings and recorded each period in current earnings in “Gains/(losses) on derivative instruments”. We have no existing interest rate swaps held for hedging. Cash flows from derivative instruments that are accounted for as cash flow hedges are classified in the same category as the cash flows from the items being hedged. Cash flows from economic hedges are classified in the same category as the items subject to the economic hedging relationship. |
Unit-based compensation | Unit-based compensation We expense the fair value of unit options issued to employees over the period the options vest. We amortize unit-based compensation for awards on a straight-line basis over the period during which the employee is required to provide service in exchange for the reward - the requisite service (vesting) period. No compensation cost is recognized for unit options for which employees do not render the requisite service. The fair value of employee unit options is estimated using the Black-Scholes option-pricing model. |
Fair value measurements | Fair value measurements We account for fair value measurements in accordance with the accounting standards guidance using fair value to measure assets and liabilities. The guidance provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. |
Adoption of new accounting standards | Adoption of new accounting standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (Topic 842) along with subsequent amendments ASU 2019-20 Leases (Topic 842): Narrow scope improvements for lessors in December 2018 and ASU 2019-01 Leases (Topic 842): Codification improvements in March 2019. Topic 842 modifies the definition of a lease, requires reassessment of the lease term upon the occurrence of certain triggers and introduces new disclosures. Lessors are required to classify leases as sales-type, direct financing or operating, with classification affecting the pattern of income recognition and provides guidance for sale and leaseback transactions. Topic 842 requires a lessee to recognize leases on its balance sheet by recording a lease liability (representing the obligation to make future lease payments) and a right of use asset (representing the right to use the asset for the lease term). Leases for lessees will be classified as either financing or operating with classification affecting the pattern of expense recognition in the income statement. We adopted this Topic 842 on January 1, 2019 under a modified retrospective transition approach. The Partnership does not have any lessee contracts, therefore the adoption solely impacts the contracts where we are the lessor. We have elected to use the ‘package’ of practical expedients available, which means no reassessment on transition of whether an agreement contains a lease, lease classification, and initial direct costs under ASC 842. As part of this package the lease term has been determined using hindsight up to the date of transition when considering lessee options to extend or terminate the agreement or to purchase the underlying asset. Furthermore, where available we have elected not to separate the components in our lease arrangements, instead accounting for them as a combined component under ASC 842. Our election of the practical expedient providing transition relief will result in our prior periods not being restated and will continue to be represented in accordance with Topic 840. Our legacy leases will continue to be classified in accordance with Topic 840, while modifications and subsequent accounting will follow the accounting under Topic 842. Leases entered into on or after January 1, 2019 have been assessed under the requirements of Topic 842. New lessor presentation and disclosure requirements have been applied to our new and existing lease agreements. Note 9 to our consolidated financial statements discloses the maturity analysis of operating lease payments under arrangements where we are the lessor. In July 2018, the FASB issued ASU 2018-09 Codification improvements . The amendments in this ASU cover a wide range of topics covering primarily minor corrections, clarifications and codification improvements. We adopted the codification improvements that were not effective on issuance on January 1, 2019 under the specified transition approach connected with each of the codification improvements. The impact of this amendment has not had a material impact on our consolidated financial statements or related disclosures, including retained earnings as at January 1, 2019. Accounting pronouncements that have been issued but not yet adopted In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments and subsequent amendments, including ASU 2018-19, ASU 2019-04 & ASU 2019-11 Codification Improvements to Topic 326 "Financial Instruments-Credit Losses". Topic 326 replaces the incurred loss impairment methodology that recognizes losses when a probable threshold is met, with a requirement to recognize lifetime expected credit losses (measured over the contractual life of the instrument) immediately based on information about past events, current conditions and forecasts of future economic conditions. This will reflect the net amount expected to be collected from the financial asset and is referred to as the current expected credit loss “CECL” methodology, with measurement applicable to financial assets measured at amortized cost as well as off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees and similar instruments). Topic 326 also makes changes to the accounting for available-for-sale debt securities and purchased credit deteriorated financial assets, however, no such financial assets existed on date of adoption or in the reporting periods covered by these consolidated financial statements. Topic 326 will become effective for us on January 1, 2020 and we will apply the modified retrospective transition approach. Cash and cash equivalents (including restricted cash and short-term deposits) either are payable on demand, have short-term maturities (highly liquid) or held with financial institutions with investment grade credit ratings that overall results in limited credit risk exposure. Trade receivables and related party transactions mostly have historic low write-offs and no significant past due amounts indicating delinquency of payments, which, together with the mostly short-term maturities, result in forward looking factors being insignificant and limited credit risk exposure impact based on current and past conditions. Net investment in finance lease receivables are akin to collateralized loans as the vessels would be returned in event of default, so a counterparty credit spread has been applied to the remaining exposure on default over the lease term that will not result in a material credit allowance. While our off-balance sheet exposures mostly related to financial guarantees, no material impact has been assessed given that the collateral from return of the vessel on default of payment will cover the guarantee amount in each remaining year covered by the guarantees. Under Topic 326, allowance for credit losses will be presented separately on the consolidated balance sheet as a contra-asset deducted from the asset’s amortized cost (or liability for off-balance sheet exposures) with associated credit loss expense in the consolidated statement of operations (with exception of transition when it will be an adjustment to retained earnings). However, our assessment is that there will be no material impact on our consolidated financial statements, including any cumulative-effect adjustment to retained earnings as at January 1, 2020. However, new presentation and disclosure requirements relating to this Topic will be introduced from January 1, 2020. The following table provides a brief description of other recent accounting standards that have been issued but not yet adopted: Standard Description Date of Adoption Effect on our Consolidated Financial Statements or Other Significant Matters 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. ASU 2019-12 Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes. The amendment removes certain exceptions previously available and provides some additional calculation rules to help simplify the accounting for income taxes. January 1, 2021 Under evaluation ASU 2020-03 Financial Instruments (Topic 825) - Codification Improvements The amendment proposes seven clarifications to improve the understandability of existing guidance, including: 1) that fees between debtor and creditor and third-party costs directly related to exchanges or modifications of debt instruments include line-of-credit or revolving debt arrangements; and 2) the contractual term of a net investment in a lease determined in accordance with Topic 842 Leases should be the contractual term used to measure expected credit losses under Topic 326 Financial Instruments Credit Losses. January 1, 2020 No impact. ASU 2020-04 Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The applicable expedients for us are in relation to modifications of contracts within the scope of Topics 310, Receivables, 470, Debt, and Topic 842, Leases. This optional guidance may be applied prospectively from any date beginning March 12, 2020 and cannot be applied to modifications that occur after December 31, 2022. Under evaluation Under evaluation |
BASIS OF PREPARATION AND SUMM_3
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Useful Lives Applied in Depreciation | Useful lives applied in depreciation are as follows: Vessels (excluding converted FSRUs) 40 years Vessels - converted FSRUs 20 years from conversion date Drydocking expenditure 5 years Mooring equipment 11 years |
RECENTLY ISSUED ACCOUNTING ST_2
RECENTLY ISSUED ACCOUNTING STANDARDS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table provides a brief description of other recent accounting standards that have been issued but not yet adopted: Standard Description Date of Adoption Effect on our Consolidated Financial Statements or Other Significant Matters 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. ASU 2019-12 Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes. The amendment removes certain exceptions previously available and provides some additional calculation rules to help simplify the accounting for income taxes. January 1, 2021 Under evaluation ASU 2020-03 Financial Instruments (Topic 825) - Codification Improvements The amendment proposes seven clarifications to improve the understandability of existing guidance, including: 1) that fees between debtor and creditor and third-party costs directly related to exchanges or modifications of debt instruments include line-of-credit or revolving debt arrangements; and 2) the contractual term of a net investment in a lease determined in accordance with Topic 842 Leases should be the contractual term used to measure expected credit losses under Topic 326 Financial Instruments Credit Losses. January 1, 2020 No impact. ASU 2020-04 Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The applicable expedients for us are in relation to modifications of contracts within the scope of Topics 310, Receivables, 470, Debt, and Topic 842, Leases. This optional guidance may be applied prospectively from any date beginning March 12, 2020 and cannot be applied to modifications that occur after December 31, 2022. Under evaluation Under evaluation |
SUBSIDIARIES (Tables)
SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Significant Subsidiaries | The following table lists our significant subsidiaries and their purpose as of December 31, 2019. Unless otherwise indicated, we own 100% of each subsidiary. Name Jurisdiction of Incorporation Purpose Golar Partners Operating LLC Marshall Islands Holding Company Golar LNG Holding Corporation Marshall Islands Holding Company Golar Maritime (Asia) Inc. Republic of Liberia Holding Company Golar Servicos de Operacao de Embaracaoes Limited Brazil Management Company Golar Winter Corporation Marshall Islands Owns Golar Winter Golar Winter UK Ltd United Kingdom Operates Golar Winter Golar Spirit Corporation Marshall Islands Owns Golar Spirit Faraway Maritime Shipping Company (60% ownership) Republic of Liberia Owns and operates Golar Mazo Golar LNG 2215 Corporation Marshall Islands Leases Methane Princess Golar 2215 UK Ltd United Kingdom Operates Methane Princess Golar Freeze Holding Corporation Marshall Islands Owns Golar Freeze Golar Freeze UK Ltd United Kingdom Operates Golar Freeze Golar Khannur Corporation Marshall Islands Holding Company Golar LNG (Singapore) Pte. Ltd. Singapore Holding Company PT Golar Indonesia* Indonesia Owns and operates NR Satu Golar Grand Corporation Marshall Islands Owns and operates Golar Grand Golar LNG 2234 LLC Republic of Liberia Owns and operates Golar Maria Golar Hull M2031 Corporation Marshall Islands Owns and operates Golar Igloo Golar Eskimo Corporation** Marshall Islands Leases and operates Golar Eskimo __________________________________________ * We hold all of the voting stock and control all of the economic interests in PT Golar Indonesia (“PTGI”) pursuant to a Shareholder’s Agreement with the other shareholder of PTGI, PT Pesona Sentra Utama (“PT Pesona”). PT Pesona holds the remaining 51% interest in the issued share capital of PTGI. ** The above table excludes Eskimo SPV, from which we lease one of our vessels, the Golar Eskimo , under a sale and leaseback. See note 5. |
VARIABLE INTEREST ENTITIES ("_2
VARIABLE INTEREST ENTITIES ("VIEs") (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
Schedule of Sale Leaseback Transactions | The following table gives a summary of the sale and leaseback arrangement, including repurchase options and obligation as of December 31, 2019: Vessel Effective from Sales value (in $ millions) Subsequent repurchase option Subsequent repurchase Repurchase obligation at end of lease term (in $ millions) End of lease term Golar Eskimo November 2015 285.0 202.0 November 2020 128.3 November 2025 |
Summary of the Bareboat Charter Rates Per Day Based on Base LIBOR Interest Rate for the Next Five Years | A summary of our payment obligations under the bareboat charter with Eskimo SPV as of December 31, 2019 is shown below: (in $ thousands) 2020 2021 2022 2023 2024 After 2024 Golar Eskimo* 23,122 22,008 21,251 20,532 19,828 15,959 *The payment obligation table above includes variable rental payments due under the lease based on an assumed LIBOR plus margin but excludes the repurchase obligation at the end of lease term. |
Schedule of Variable Interest Entities | The most significant impact of consolidation of Eskimo SPV’s liabilities on our consolidated balance sheet is as follows: (in $ thousands) 2019 2018 Liabilities Short-term debt (refer to note 21) 11,436 11,836 Long-term debt (refer to note 21) 169,395 187,401 The following table summarizes the financial information of Hilli LLC shown on a 100% basis as of and for the years ended December 31, 2019 and 2018: (in thousands of $) 2019 2018 Balance sheet Current assets 54,000 124,642 Non-current assets 1,300,065 1,392,711 Current liabilities (45,106) (109,773) Non-current liabilities (924,578) (1,004,184) Statement of operations Liquefaction services revenue 218,095 127,625 Net income 70,756 77,842 *The summarized financial information of Hilli LLC excludes the Hilli LLC lessor VIE's financial information. |
Balance Sheet of Variable Interest Entity | The following table summarizes the balance sheets of PTGI as of December 31, 2019 and 2018: (in thousands of $) 2019 2018 ASSETS Cash 13,108 19,599 Restricted cash (see note 17) 9,543 10,209 Vessels and equipment, net* 227,418 248,526 Other assets 3,158 2,699 Total assets 253,227 281,033 LIABILITIES AND EQUITY Accrued liabilities 2,704 6,474 Current portion of long-term debt 14,382 14,303 Amounts due to related parties 51,203 83,334 Non-current debt 58,865 73,247 Other liabilities 974 638 Total liabilities 128,128 177,996 Total equity 125,099 103,037 Total liabilities and equity 253,227 281,033 *PTGI recorded the NR Satu at the acquisition price when it purchased the vessel from a Golar related party entity. However, as of the date of the acquisition of the subsidiaries which own and operate the NR Satu , the acquisition was deemed to be a reorganization of entities under common control, and accordingly, we recorded the NR Satu at historical book values. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Assets from Segment to Consolidated | December 31, 2019 (in thousands of $) FSRU (1) LNG Carrier FLNG (2) Unallocated (3) Total Segment Reporting Elimination (4) Consolidated Reporting Statement of operations: Total operating revenues 240,695 58,957 104,073 — 403,725 (104,073) 299,652 Vessel operating expenses (40,978) (19,980) (23,042) — (84,000) 23,042 (60,958) Voyage and commission expenses (4,467) (3,181) (230) — (7,878) 230 (7,648) Administrative expenses (5) (8,090) (5,322) (1,093) — (14,505) 1,093 (13,412) Amount invoiced under sales-type lease 11,500 — — — 11,500 (11,500) — Adjusted EBITDA 198,660 30,474 79,708 — 308,842 (91,208) 217,634 Balance sheet: Total assets (6) 1,079,369 510,558 193,270 322,415 2,105,612 — 2,105,612 Other segmental financial information: Capital expenditure (6) (13,465) (15) — — (13,480) — (13,480) December 31, 2018 (in thousands of $) FSRU LNG Carrier FLNG (2) Unallocated (3) Total Segment Reporting Elimination (4) Consolidated Reporting Statement of operations: Total operating revenues 294,889 51,761 49,754 — 396,404 (49,754) 346,650 Vessel operating expenses (42,736) (22,511) (9,834) — (75,081) 9,834 (65,247) Voyage and commission expenses (7,138) (4,084) (434) — (11,656) 434 (11,222) Administrative expenses (5) (9,384) (5,425) (1,306) — (16,115) 1,306 (14,809) Adjusted EBITDA 235,631 19,741 38,180 — 293,552 (38,180) 255,372 Balance sheet: Total assets (6) 1,115,663 534,805 206,180 384,169 2,240,817 — 2,240,817 Other segmental financial information: Capital expenditure (6) (28,307) (13,894) — — (42,201) — (42,201) December 31, 2017 (in thousands of $) FSRU LNG Carrier FLNG (2) Unallocated (3) Total Segment and Consolidated Reporting Statement of operations: Total operating revenues 316,599 116,503 — — 433,102 Vessel operating expenses (47,960) (20,318) — — (68,278) Voyage and commission expenses (8,375) (1,319) — — (9,694) Administrative expenses (5) (10,029) (5,181) — — (15,210) Adjusted EBITDA 250,235 89,685 — — 339,920 Balance sheet: Total assets (6) 1,149,595 545,225 — 732,551 2,427,371 Other segmental financial information: Capital expenditure (6) (11,226) (11,215) — — (22,441) (1) Includes revenue relating to operating and service contracts, that is a non-lease component of sales-type leases recognized on a straight line basis over the contract term. (2) Relates to the effective share of revenues, expenses and Segment EBITDA attributable to our 50% ownership of the Hilli Common Units which we acquired in July 2018 (see note 10). The earnings attributable to our investment in Hilli LLC are reported in the equity in net earnings of affiliate on the consolidated income statement. (3) Relates to assets not allocated to a segment, but included to reflect the total assets in the consolidated balance sheet. (4) Eliminations reverse the effective earnings attributable to our 50% ownership of the Hilli Common Units and the amounts invoiced under the sales-type lease. There are no transactions between reportable segments. (5) Indirect administrative expenses are allocated to the FSRU and LNG carrier segments based on the number of vessels while administrative expenses for FLNG relate to our effective share of expenses attributable to our 50% ownership of the Hilli Common Units. |
Reconciliation of Revenue from Segments to Consolidated | December 31, 2019 (in thousands of $) FSRU (1) LNG Carrier FLNG (2) Unallocated (3) Total Segment Reporting Elimination (4) Consolidated Reporting Statement of operations: Total operating revenues 240,695 58,957 104,073 — 403,725 (104,073) 299,652 Vessel operating expenses (40,978) (19,980) (23,042) — (84,000) 23,042 (60,958) Voyage and commission expenses (4,467) (3,181) (230) — (7,878) 230 (7,648) Administrative expenses (5) (8,090) (5,322) (1,093) — (14,505) 1,093 (13,412) Amount invoiced under sales-type lease 11,500 — — — 11,500 (11,500) — Adjusted EBITDA 198,660 30,474 79,708 — 308,842 (91,208) 217,634 Balance sheet: Total assets (6) 1,079,369 510,558 193,270 322,415 2,105,612 — 2,105,612 Other segmental financial information: Capital expenditure (6) (13,465) (15) — — (13,480) — (13,480) December 31, 2018 (in thousands of $) FSRU LNG Carrier FLNG (2) Unallocated (3) Total Segment Reporting Elimination (4) Consolidated Reporting Statement of operations: Total operating revenues 294,889 51,761 49,754 — 396,404 (49,754) 346,650 Vessel operating expenses (42,736) (22,511) (9,834) — (75,081) 9,834 (65,247) Voyage and commission expenses (7,138) (4,084) (434) — (11,656) 434 (11,222) Administrative expenses (5) (9,384) (5,425) (1,306) — (16,115) 1,306 (14,809) Adjusted EBITDA 235,631 19,741 38,180 — 293,552 (38,180) 255,372 Balance sheet: Total assets (6) 1,115,663 534,805 206,180 384,169 2,240,817 — 2,240,817 Other segmental financial information: Capital expenditure (6) (28,307) (13,894) — — (42,201) — (42,201) December 31, 2017 (in thousands of $) FSRU LNG Carrier FLNG (2) Unallocated (3) Total Segment and Consolidated Reporting Statement of operations: Total operating revenues 316,599 116,503 — — 433,102 Vessel operating expenses (47,960) (20,318) — — (68,278) Voyage and commission expenses (8,375) (1,319) — — (9,694) Administrative expenses (5) (10,029) (5,181) — — (15,210) Adjusted EBITDA 250,235 89,685 — — 339,920 Balance sheet: Total assets (6) 1,149,595 545,225 — 732,551 2,427,371 Other segmental financial information: Capital expenditure (6) (11,226) (11,215) — — (22,441) (1) Includes revenue relating to operating and service contracts, that is a non-lease component of sales-type leases recognized on a straight line basis over the contract term. (2) Relates to the effective share of revenues, expenses and Segment EBITDA attributable to our 50% ownership of the Hilli Common Units which we acquired in July 2018 (see note 10). The earnings attributable to our investment in Hilli LLC are reported in the equity in net earnings of affiliate on the consolidated income statement. (3) Relates to assets not allocated to a segment, but included to reflect the total assets in the consolidated balance sheet. (4) Eliminations reverse the effective earnings attributable to our 50% ownership of the Hilli Common Units and the amounts invoiced under the sales-type lease. There are no transactions between reportable segments. (5) Indirect administrative expenses are allocated to the FSRU and LNG carrier segments based on the number of vessels while administrative expenses for FLNG relate to our effective share of expenses attributable to our 50% ownership of the Hilli Common Units. |
Revenue by Major Customer | For the years ended December 31, 2019, 2018 and 2017, revenues from each of the following customers accounted for over 10% of our total consolidated operating revenues: (in thousands of $) Segment 2019 2018 2017 PTNR FSRU 68,089 23 % 68,474 17 % 72,495 17 % Petrobras FSRU 64,368 21 % 63,098 16 % 94,588 22 % Jordan FSRU 57,535 19 % 57,337 14 % 57,144 13 % KNPC FSRU 40,379 13 % 48,093 12 % 47,646 11 % Dubai Supply Authority FSRU — — 56,823 14 % 44,726 10 % |
Revenues and Fixed Assets with Respect to Geographical Area | The following geographical data presents our consolidated reporting information: revenues from customers and fixed assets with respect only to our FSRUs, while operating under long-term charters, at specific locations. LNG carriers operate on a worldwide basis and are not restricted to specific locations. Accordingly, it is not possible to allocate the assets of these operations to specific countries: Revenues (in thousands of $) 2019 2018 2017 Indonesia 68,089 68,474 72,495 Brazil 64,368 63,098 94,588 Jordan 57,535 57,337 57,144 Kuwait 40,379 48,093 47,645 United Arab Emirates — 56,823 44,726 Fixed assets (in thousands of $) 2019 2018 Jordan 254,881 261,163 Kuwait 262,530 258,942 Brazil 203,889 214,018 Indonesia 149,247 163,230 |
(LOSSES)_GAINS ON DERIVATIVES_2
(LOSSES)/GAINS ON DERIVATIVES AND OTHER FINANCIAL ITEMS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER FINANCIAL ITEMS, NET [Abstract] | |
Schedule of Other financial Items | (in thousands of $) 2019 2018 2017 Mark-to-market (losses)/gains for interest rate swap derivatives (43,746) (1,455) 12,073 Interest income/(expense) on un-designated interest rate swaps 4,950 2,161 (7,554) Mark-to-market adjustment on Earn-Out Units (1) — 7,400 (441) Gains on repurchase of cross currency interest rate swap — — 3,718 (Losses)/gains on derivative instruments (38,796) 8,106 7,796 Foreign exchange (losses)/gains on finance lease obligations and related restricted cash (941) 1,105 (659) Amortization of debt guarantee (see note 25) 2,065 503 — Financing arrangement fees and other costs (531) (1,363) (527) Foreign exchange gains/(losses) on operations 82 (837) (378) Losses on repurchase of 2012 High-Yield Bonds (2) — — (7,876) Foreign exchange losses on 2012 High-Yield Bonds — — (3,103) Premium paid on repurchase of 2012 High-Yield Bonds — — (2,820) Other financial items, net 675 (592) (15,363) (Losses)/gains on derivatives and other financial items, net (38,121) 7,514 (7,567) (1) This relates to the mark-to-market movement on the Earn-Out Units issued in connection with the IDR reset transaction in October 2016 which were recognized as a derivative liability in our consolidated balance sheet. In October 2018, we declared a reduced quarterly distribution of $0.4042 per common unit. Consequently, the second tranche of Earn-Out Units will not be issued. Accordingly, we have recognized a $nil valuation on the Earn-Out Units derivatives as of December 31, 2018, resulting in a mark-to-market gain related to the Earn-Out Units. See notes 28 and 29. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Credit) | The components of income tax expense are as follows: (in thousands of $) 2019 2018 2017 Current tax expense 14,342 15,737 9,825 Deferred tax expense 3,620 1,728 7,171 Total income tax expense 17,962 17,465 16,996 |
Schedule of Effective Income Tax Rate Reconciliation | The income taxes for the years ended December 31, 2019, 2018 and 2017 differed from the amounts computed by applying the Marshall Islands statutory income tax rate of 0% for all years as follows: (In thousands of $) 2019 2018 2017 Effect of taxable income in various countries 18,023 16,342 16,311 Effect of change on uncertain tax positions (61) 1,329 685 Effect of recognition of deferred tax asset and liabilities — (206) — Total tax expense 17,962 17,465 16,996 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. (in thousands of $) 2019 2018 At January 1 Deferred tax assets 103 250 Deferred tax liabilities (see note 23) (7,126) (5,545) (7,023) (5,295) Recognized in the year Adjustment in respect of prior year (1,537) 331 Utilization of tax losses — (271) Recognition of deferred tax liability on fixed asset temporary differences (2,083) (1,788) (3,620) (1,728) At December 31 Deferred tax assets — 103 Deferred tax liabilities (see note 23) (10,643) (7,126) (10,643) (7,023) |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Maturity | The minimum contractual future rentals represent revenues to be recognized on a straight line basis for each of the following periods, as of December 31, 2019: Year ending December 31, (in thousands of $) Total 2020 261,950 2021 262,779 2022 229,597 2023 136,696 2024 and thereafter 137,344 Total 1,028,366 |
Operating Lease, Lease Income | The components of operating lease income were as follows: (in thousands of $) 2019 Operating lease income 291,806 Variable lease income (1) 2,148 Total operating lease income 293,954 (1) ‘Variable lease income’ is excluded from lease payments that comprise the minimum contractual future revenues from non-cancellable leases. |
INVESTMENTS IN AFFILIATE (Table
INVESTMENTS IN AFFILIATE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in and Advances to Affiliates | The components of equity in net assets of our non-consolidated affiliate are as follows: (in thousands of $) 2019 2018 Equity in net assets of affiliate at January 1, 206,180 — Net purchase price on acquisition — 199,728 Dividends (17,450) (5,581) Equity in net earnings of affiliate 4,540 1,190 Fair value of debt guarantee (see note 25) — 10,843 Equity in net assets of affiliate at December 31 193,270 206,180 |
Equity Method Investments | The ownership interests of Hilli LLC are represented below: Percentage ownership interest Hilli Common Units The Partnership 50.0% Golar 44.6% Keppel 5.0% B&V 0.4% |
Schedule of Variable Interest Entities | The most significant impact of consolidation of Eskimo SPV’s liabilities on our consolidated balance sheet is as follows: (in $ thousands) 2019 2018 Liabilities Short-term debt (refer to note 21) 11,436 11,836 Long-term debt (refer to note 21) 169,395 187,401 The following table summarizes the financial information of Hilli LLC shown on a 100% basis as of and for the years ended December 31, 2019 and 2018: (in thousands of $) 2019 2018 Balance sheet Current assets 54,000 124,642 Non-current assets 1,300,065 1,392,711 Current liabilities (45,106) (109,773) Non-current liabilities (924,578) (1,004,184) Statement of operations Liquefaction services revenue 218,095 127,625 Net income 70,756 77,842 *The summarized financial information of Hilli LLC excludes the Hilli LLC lessor VIE's financial information. |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Other Current Assets | (in thousands of $) 2019 2018 Prepaid expenses 2,087 2,386 Other receivables 9,807 2,346 Mark-to-market interest rate swaps valuation (see note 24) — 1,802 11,894 6,534 |
VESSELS AND EQUIPMENT, NET (Tab
VESSELS AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Vessels and Equipment, Net | 2019 (in thousands of $) Vessels Drydocking expenditure Mooring equipment Total Cost As of January 1 2,143,388 65,088 37,826 2,246,302 Additions 7,547 5,933 — 13,480 Disposal (1) (208,987) (17,430) — (226,417) Write-off of fully depreciated and amortized asset — (6,363) — (6,363) As of December 31 1,941,948 47,228 37,826 2,027,002 Depreciation and amortization As of January 1 (663,123) (23,804) (23,618) (710,545) Charge for the year (55,796) (8,282) (3,547) (67,625) Disposal (1) 113,676 794 — 114,470 Write-off of fully depreciated and amortized asset — 6,363 — 6,363 As of December 31 (605,243) (24,929) (27,165) (657,337) Net book value as at December 31 1,336,705 22,299 10,661 1,369,665 2018 (in thousands of $) Vessels Drydocking expenditure Mooring equipment Total Cost As of January 1 2,132,856 88,450 37,826 2,259,132 Additions 10,549 17,853 — 28,402 Write-off of fully depreciated and amortized asset (17) (41,215) — (41,232) As of December 31 2,143,388 65,088 37,826 2,246,302 Depreciation and amortization As of January 1 (600,578) (49,559) (20,072) (670,209) Charge for the year (62,562) (15,460) (3,546) (81,568) Write-off of fully depreciated and amortized asset 17 41,215 — 41,232 As of December 31 (663,123) (23,804) (23,618) (710,545) Net book value as at December 31 1,480,265 41,284 14,208 1,535,757 (1) Relates to the de-recognition of the vessel asset carrying value of the Golar Freeze. See note 15. The following table presents the market values and carrying values of seven of our vessels that we have determined have a market value that is less than their carrying value as of December 31, 2019. While the market values of these vessels are below their carrying values, no vessel impairment has been recognized on any of these vessels as the estimated future undiscounted cash flows relating to such vessels are greater than their carrying values. Vessel 2019 Market value (1) 2019 Carrying value Deficit (in millions of $) Golar Winter 164.0 204.0 (40.0) NR Satu 115.0 149.0 (34.0) Methane Princess 63.0 108.0 (45.0) Golar Maria 82.0 172.0 (90.0) Golar Grand 84.0 102.0 (18.0) Golar Mazo 51.0 128.0 (77.0) Golar Igloo 261.0 263.0 (2.0) (1) Market values are determined with reference to average broker values provided by independent brokers. Broker values are considered an estimate of the market value for the purpose of determining whether an impairment trigger exists. Broker values are commonly used and accepted by our lenders in relation to determining compliance with relevant covenants in applicable credit facilities for the purpose of assessing security quality. Since vessel values can be volatile, our estimates of market value may not be indicative of either the current or future prices we could obtain if we sold any of the vessels. In addition, the determination of estimated market values may involve considerable judgment, given the illiquidity of the second-hand markets for these types of vessels. |
VESSEL UNDER CAPITAL LEASE, N_2
VESSEL UNDER CAPITAL LEASE, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Capital Leased Assets | 2019 (in thousands of $) Vessels Drydocking expenditure Total Cost As of January 1, and December 31, 163,231 11,280 174,511 Depreciation and amortization As of January 1 (59,425) (375) (59,800) Charge for the year (4,022) (2,256) (6,278) As of December 31 (63,447) (2,631) (66,078) Net book value as at December 31 99,784 8,649 108,433 2018 Vessels Drydocking expenditure Total Cost As of January 1 160,535 8,305 168,840 Additions 2,696 11,104 13,800 Write-off of fully depreciated and amortized asset — (8,129) (8,129) As of December 31 163,231 11,280 174,511 Depreciation and amortization As of January 1 (55,510) (7,385) (62,895) Charge for the year (3,915) (1,119) (5,034) Write-off of fully depreciated and amortized asset — 8,129 8,129 As of December 31 (59,425) (375) (59,800) Net book value as at December 31 103,806 10,905 114,711 |
Lease, Cost | 2019 (in thousands of $) Vessels Drydocking expenditure Total Cost As of January 1, and December 31, 163,231 11,280 174,511 Depreciation and amortization As of January 1 (59,425) (375) (59,800) Charge for the year (4,022) (2,256) (6,278) As of December 31 (63,447) (2,631) (66,078) Net book value as at December 31 99,784 8,649 108,433 2018 Vessels Drydocking expenditure Total Cost As of January 1 160,535 8,305 168,840 Additions 2,696 11,104 13,800 Write-off of fully depreciated and amortized asset — (8,129) (8,129) As of December 31 163,231 11,280 174,511 Depreciation and amortization As of January 1 (55,510) (7,385) (62,895) Charge for the year (3,915) (1,119) (5,034) Write-off of fully depreciated and amortized asset — 8,129 8,129 As of December 31 (59,425) (375) (59,800) Net book value as at December 31 103,806 10,905 114,711 |
INVESTMENT IN LEASED VESSEL, _2
INVESTMENT IN LEASED VESSEL, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | The following table lists the components of our investment in leased vessel, net and the maturity profile of the undiscounted lease receivables: Year ending December 31, 2020 18,300 2021 18,250 2022 18,250 2023 18,250 2024 and thereafter 189,350 Total minimum lease receivable 262,400 Unguaranteed residual value 16,000 Gross investment in sales-type lease 278,400 Less: unearned interest income (164,263) Investment in leased vessel, net 114,137 Less: current portion of investment in leased vessel, net (2,308) Non-current portion of investment in leased vessel, net 111,829 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | (in thousands of $) 2019 2018 Cost As of January 1 114,616 114,616 Write-off of fully amortized asset (19,099) — As of December 31 95,517 114,616 Depreciation, amortization and impairment As of January 1 (54,247) (41,410) Charge for the year (9,960) (12,837) Write-off of fully amortized asset 19,099 — As of December 31 (45,108) (54,247) Net book value as at December 31 50,409 60,369 |
Schedule of Future Amortization Expense | The estimated future amortization of intangible assets as of December 31, 2019 is as follows: Year Ending December 31, (in thousands of $) 2020 9,114 2021 9,114 2022 9,114 2023 9,114 2024 9,114 2025 4,839 Total 50,409 |
RESTRICTED CASH AND SHORT-TER_2
RESTRICTED CASH AND SHORT-TERM DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Restricted Cash | Our restricted cash balances are as follows: (in thousands of $) 2019 2018 Methane Princess lease security deposits (see note 22) (1) 114,676 112,362 Restricted cash relating to the $800 million facility (see note 21) (2) 23,552 30,845 Restricted cash relating to our interest rate swaps (see note 24) 14,810 6,480 Restricted cash relating to the NR Satu facility (see notes 5 and 21) 9,543 10,209 Restricted cash relating to security deposits (3) 19,680 12,548 Total restricted cash 182,261 172,444 Less: current portion of restricted cash (46,333) (31,330) Non-current restricted cash 135,928 141,114 Restricted cash does not include minimum consolidated cash balances of $30.0 million required to be maintained as part of the financial covenants in some of our loan facilities, as these amounts are included in “Cash and cash equivalents” (see note 21). (1) As of December 31, 2019 and 2018, the value of deposits used to obtain letters of credit to secure the obligations for the lease arrangements described in note 22 was $114.7 million and $112.4 million, respectively. These security deposits are referred to in these financial statements as restricted cash. The Methane Princess Lease security deposit earns interest based upon Pound Sterling LIBOR. (2) Restricted cash required by the $800 million facility provides additional security to the lenders following the early termination of the Golar Spirit's charter and amendments to the Golar Freeze's charter. Under the amendments in 2018 to the $800 million facility, the restricted cash relating to the Golar Freeze was released upon securing an acceptable replacement charter. The amendments also allow for a stepped reduction in the value of the security deposit for the Golar Spirit. The security deposit may be applied against Golar Spirit's proportion of the $800 million facility quarterly repayment. The security deposit will be reduced to $16.5 million in 2020. The security deposit will be fully utilized in 2021 on the final repayment of the $800 million facility. The security deposit may be released if we are able to enter into a suitable charter for the Golar Spirit . (3) As of December 31, 2019 and 2018, the value of collateral deposits required to secure performance guarantees issued to charterers on our behalf by banks was $18.1 million and $12.5 million, respectively. As of December 31, 2019 we held an outstanding bid bond with one of our charterers with a value of $1.6 million, which will mature in 2020. These security deposits are also referred to in these financial statements as restricted cash. |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT ASSETS [Abstract] | |
Schedule of Other Non-current Assets | (in thousands of $) 2019 2018 Other non-current assets 1,494 2,342 Mark-to-market interest rate swaps valuation (see note 24) 1,285 15,815 2,779 18,157 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | (in thousands of $) 2019 2018 Current tax payable 9,134 12,155 Interest expense 7,036 7,887 Vessel operating and drydocking expenses 6,503 6,824 Administrative expenses 778 363 23,451 27,229 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | (in thousands of $) 2019 2018 Mark-to-market interest rate swaps valuation (see note 24) 36,167 8,753 Other creditors 7,910 1,410 Deferred revenue 7,720 10,636 Guarantee (see note 25) 1,772 2,066 Preferred units dividend payable (see note 28) 1,509 1,543 Deferred credits from finance lease transactions (see note 23) 625 625 55,703 25,033 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | (in thousands of $) 2019 2018 Total debt, net of deferred finance charges 1,216,933 1,272,350 Less: Current portion of long-term debt due to third parties, net of deferred finance charges (225,254) (75,451) Long-term debt, net of deferred finance charges 991,679 1,196,899 |
Schedule of Maturities of Long-term Debt | Our outstanding debt as of December 31, 2019 is repayable as follows: Year Ending December 31, (in thousands of $) 2020 228,186 2021 793,568 2022 57,431 2023 12,819 2024 12,836 2025 and thereafter 118,104 Total debt 1,222,944 Less: deferred finance charges (6,011) Total debt, net deferred finance charges 1,216,933 |
Schedule of Long-term Debt Instruments | As of December 31, 2019 and 2018, the maturity dates for our total debt were as follows: (in thousands of $) 2019 2018 Maturity date 2015 Norwegian Bonds 150,000 150,000 2020 $800 million credit facility 568,000 595,000 2021 2017 Norwegian Bonds 250,000 250,000 2021 NR Satu Facility 74,113 88,863 2022 Eskimo SPV Debt* 180,831 199,237 2025 Total debt 1,222,944 1,283,100 __________________________________________ * This represents the total loan facility drawn down by the subsidiary of CMBL, which we consider to be a VIE. We determined that we are the primary beneficiary of this VIE as we are expected to absorb the majority of the VIEs’ losses and residual gains associated with the vessel sold and leased backed from the subsidiary of CMBL. Accordingly, the VIE and its related loan facilities are consolidated in our results. See note 2 and note 5. |
OBLIGATION UNDER CAPITAL LEASE
OBLIGATION UNDER CAPITAL LEASE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Finance Lease Liability | (in thousands of $) 2019 2018 Total obligation under finance lease 122,779 119,683 Less: current portion of obligation under finance lease (1,990) (1,564) Non-current portion of obligation under finance lease 120,789 118,119 |
Finance Lease, Liability, Maturity | As of December 31, 2019, we are committed to make quarterly minimum finance lease payments (including interest), as follows: Year ending December 31, (in thousands of $) Methane Princess Lease 2020 8,353 2021 8,678 2022 9,007 2023 9,343 2024 and thereafter 155,264 Total minimum lease payments 190,645 Less: Imputed interest (67,866) Present value of minimum lease payments 122,779 |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Long-term Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | (in thousands of $) 2019 2018 Deferred tax liability (see note 8) 10,643 7,126 Guarantee (see note 25) 6,504 8,275 Deferred credits from finance lease transactions 14,149 14,774 31,296 30,175 |
Deferred Credits From Capital Lease Transactions | (in thousands of $) 2019 2018 Deferred credits from finance lease transactions 24,691 24,691 Less: Accumulated amortization (9,917) (9,292) 14,774 15,399 Current 625 625 Non-current 14,149 14,774 14,774 15,399 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | We have entered into the following interest rate swap transactions involving the payment of fixed rates in exchange for LIBOR: Instrument (in thousands of $) Year Ended Notional Amount Maturity Dates Fixed Interest Rate Interest rate swaps: Receiving floating, pay fixed December 31, 2019 1,557,834 2020 to 2026 1.12 % to 2.90% Receiving floating, pay fixed December 31, 2018 1,783,325 2019 to 2026 1.07 % to 2.90% |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The carrying value and estimated fair value of our financial instruments at December 31, 2019 and 2018 are as follows: (in thousands of $) Fair Value Hierarchy 2019 Carrying Value 2019 Fair Value 2018 Carrying Value 2018 Fair Value Non-Derivatives: Cash and cash equivalents Level 1 47,661 47,661 96,648 96,648 Restricted cash and short-term deposits Level 1 182,261 182,261 172,444 172,444 2015 and 2017 Norwegian Bonds (1) Level 1 400,000 394,715 400,000 396,843 Long-term debt—floating (2) Level 2 822,944 822,944 883,100 883,100 Obligation under finance lease (2) Level 2 122,779 122,779 119,683 119,683 Derivatives: Interest rate swaps asset (3) Level 2 1,285 1,285 17,617 17,617 Interest rate swaps liability (3) Level 2 36,167 36,167 8,753 8,753 1. This pertains to bonds with a combined carrying value of $400.0 million as of December 31, 2019 (2018: $400.0 million) which is included under long-term debt on the balance sheet. The fair value of the bonds as of December 31, 2019 was $394.7 million (2018: $396.8 million), which represents 98.7% (2018: 99.2%) of their face value. 2. Our debt and finance lease obligation are recorded at amortized cost in the consolidated balance sheets. Debt is presented in the above table, gross of deferred financing cost of $6.0 million as of December 31, 2019 (2018: $10.8 million). 3. Derivative liabilities are captured within other current liabilities and derivative assets are captured within other current and non-current assets on the consolidated balance sheet. |
Offsetting Assets | However, if we were to offset and record the asset and liability balance of derivatives on a net basis, the amounts presented in our consolidated balance sheets as of December 31, 2019 and 2018 would be adjusted as detailed in the following table: December 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 1,285 (1,029) 256 17,617 (3,281) 14,336 Total liability derivatives 36,167 (1,029) 35,138 8,753 (3,281) 5,472 |
Offsetting Liabilities | However, if we were to offset and record the asset and liability balance of derivatives on a net basis, the amounts presented in our consolidated balance sheets as of December 31, 2019 and 2018 would be adjusted as detailed in the following table: December 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 1,285 (1,029) 256 17,617 (3,281) 14,336 Total liability derivatives 36,167 (1,029) 35,138 8,753 (3,281) 5,472 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Transactions with related parties: (in thousands of $) 2019 2018 2017 Transactions with Golar and affiliates: Time charter revenues (a) — — 17,423 Management and administrative services fees (b) (9,645) (9,809) (7,762) Ship management fees (c) (4,460) (5,200) (5,903) Interest expense on short-term loans (d) (109) — — Share options expense (e) — — (228) Income on deposits paid to Golar (f) — 4,779 4,622 Distributions with Golar, net (g) (19,291) (42,842) (52,255) Transactions with others: Dividends to China Petroleum Corporation (h) — — (7,000) Amounts due from/(to) related parties: As of December 31, 2019 and 2018, balances with related parties consisted of the following: (in thousands of $) 2019 2018 Balances due from/(to) Golar and its affiliates (d) 2,845 (4,091) Methane Princess lease security deposit movements (i) 2,253 2,854 5,098 (1,237) (a) Time charter revenues - In connection with our acquisition of the Golar Grand in November 2012, Golar provided us with an option pursuant to which in the event that the charterer did not renew or extend its charter for the Golar Grand beyond February 2015, we could require Golar to charter the vessel through to November 2017 at approximately 75% of the hire rate that would have been payable by the charterer. In February 2015, we exercised this option. In May 2017, Golar Grand started its new charter with a major international oil and gas company (the “New Grand Charter”). We sub-chartered back the Golar Grand from Golar at the same time charter rate as the New Grand Charter. The daily time charter rate receivable from Golar under the option had reverted back to the original rate following the vessel's drydocking in April 2017 but was reduced by the sub-charter income under the New Grand Charter. Following the cessation of the arrangement in November 2017, we earned $17.4 million in relation to this charter for year ended December 31, 2017. (b) Management and administrative services fees - We are party to a management and administrative services agreement with Golar Management, a wholly-owned subsidiary of Golar, pursuant to which Golar Management will provide to us certain management and administrative services. The services provided by Golar Management are charged at cost plus a management fee equal to 5% of Golar Management’s costs and expenses incurred in connection with providing these services. We may terminate the agreement by providing 120 days’ written notice. (c) Ship management fees - Golar and certain of its subsidiaries charged vessel management fees to us for the provision of technical and commercial management of the vessels. Each of our vessels is subject to management agreements pursuant to which certain commercial and technical management services are provided by certain subsidiaries of Golar, including Golar Management. We may terminate these agreements by providing 30 days’ written notice. (d) Interest expense on short-term loan, balances due from/(to)Golar and its affiliates - Receivables and payables with Golar and its affiliates primarily comprise of unpaid fees and expenses for management and administrative services and vessel management services performed by Golar and its affiliates, dividends due in respect of the Hilli Common Units, and other related party arrangements, including the Hilli Acquisition. In addition, certain receivables and payables arise when we pay an invoice on behalf of a related party and vice versa. Receivables and payables are generally settled quarterly in arrears. Balances due from and to Golar and its subsidiaries are unsecured, interest-free and intended to be settled in the ordinary course of business. In November 2019, we borrowed $15.0 million from Golar, with the loan bearing interest at a rate of LIBOR plus 5.0%. We repaid the loan in full, including interest of $0.1 million, on December 30, 2019. The movement in the net balance due to Golar and its affiliates as of December 31, 2019 is mainly attributable to the settlement of the outstanding amount due to Golar in relation to the Hilli Acquisition. (e) Share options expense - This relates to a recharge from Golar in relation to the award of 29,950 (with an exercise price of $23.50 at grant date) and 45,000 (with an exercise price of $56.70 at grant date) share options in Golar LNG granted to certain of our directors and officers. The exercise price is reduced by the value of dividends declared and paid. They have a contractual term of five three (f) Income on deposits paid to Golar - In May 2016, we completed the Tundra Acquisition and paid total cash purchase consideration of $107.2 million. In May 2017, we elected to exercise our right (the "Tundra Put Right") under the Tundra Letter Agreement to require Golar to repurchase Tundra Corp at a price equal to the original purchase price. In connection with the exercise of the Tundra Put Right, we and Golar entered into an agreement pursuant to which we agreed to sell Tundra Corp to Golar on the date of the closing of the Tundra Put Sale on October 17, 2017 in return for Golar's promise to pay an amount equal to $107.2 million (the “Deferred Purchase Price”) plus an additional amount equal to 5% per annum of the Deferred Purchase Price (the “Additional Amount”). The Deferred Purchase Price and the Additional Amount were applied to the net purchase price of the Hilli Acquisition on July 12, 2018. We received under the Tundra Letter Agreement $2.2 million as interest income for the year ended December 31, 2017. On August 15, 2017, Golar Partners Operating LLC, our wholly owned subsidiary, entered into a purchase and sale agreement (the “Hilli Purchase Agreement”) for the Hilli Acquisition. Concurrently with the execution of the Hilli Purchase Agreement, we paid a $70 million deposit to Golar, upon which we received interest at a rate of 5% per annum. We have accounted for $nil, $4.8 million, and $2.4 million as interest income for the years ended December 31, 2019, 2018 and 2017 on the Deferred Purchase Price and $70 million deposit. We applied the deposit and interest accrued to the net purchase price on July 12, 2018, upon completion of the Hilli Acquisition. (g) Distributions with Golar, net - We have declared and paid quarterly distributions totaling $36.8 million, $48.4 million, and $52.3 million to Golar for each of the years ended December 31, 2019, 2018 and 2017, respectively in respect of the Common Units and General Partner units owned by it. During the years ended December 31, 2019 and 2018, Hilli LLC declared quarterly distributions totaling $17.5 million and $5.6 million, in respect of the Hilli Common Units owned by us. As of December 31, 2019 and 2018, we have a dividend receivable of $4.5 million and $3.6 million, respectively. (h) Dividends to China Petroleum Corporation - During the years ended December 31, 2019, 2018, and 2017, Faraway Maritime Shipping Co., which is 60% owned by us and 40% owned by China Petroleum Corporation (“CPC”), paid total dividends to CPC of $nil, $nil and $7.0 million, respectively, as the Golar Mazo charter expired in December 2017. (i) Methane Princess Lease security deposit movements - This represents net advances to Golar since the IPO, which correspond with the net release of funds from the security deposits held relating to the Methane Princess Lease. This is in connection with the Methane Princess tax lease indemnity provided by Golar under the Omnibus Agreement (see below). Accordingly, these amounts held with Golar will be settled as part of the eventual termination of the Methane Princess Lease. |
OTHER COMMITMENTS AND CONTING_2
OTHER COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Other Assets Pledged as Collateral | Assets pledged (in thousands of $) 2019 2018 Carrying value of vessels and equipment secured against long-term loans and finance leases 1,350,301 1,517,297 Carrying value of investment in leased vessel, net secured against long-term loans and finance leases 114,137 — 1,464,438 1,517,297 |
UNIT-BASED COMPENSATION (Tables
UNIT-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Weighted Average Assumptions Used | The fair value of each option award is estimated on the grant date or modification date using the Black-Scholes option pricing model based on the following assumptions as of the grant date. 2017 Risk free interest rate 1.5 % Expected volatility of common units (1) 44.8 % Expected dividend yield (2) 0.0 % Expected life of options (in years) 5.0 years (1) The assumption for expected future volatility is based primarily on an analysis of historical volatility of our common units. (2) The dividend yield has been estimated at 0.0% as the exercise price of the options are reduced by the value of distributions, declared and paid on a per unit basis. |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | A summary of option activity for the years ended December 31, 2019, 2018 and 2017 is presented below: (in thousands of $, except per unit data) Units (in '000s) Weighted average exercise price Weighted average remaining contractual term (years) Options outstanding at December 31, 2018 99 $ 16.10 2.9 Options outstanding at December 31, 2019 99 $ 14.49 1.9 Options exercisable at: December 31, 2019 99 14.49 1.9 December 31, 2018 66 $ 16.10 2.9 Year ended December 31 (in thousands of $) 2019 2018 2017 Fair value of unit options which fully vested in the year 233 233 233 Compensation cost recognized in the consolidated statement of operations 207 234 238 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Partners' Capital Notes [Abstract] | |
Schedule of movement in the number of common units, subordinated units and general partner units | The following table shows the movement in the number of preferred units, common units, and general partner units during the years ended December 31, 2019, 2018 and 2017: (in units) Preferred Units Common Units GP Units December 31, 2016 — 64,073,291 1,318,517 February 2017 common unit offering — 5,175,000 94,714 October 2017 preferred units offering 5,520,000 — — November 2017 earn-out units conversion (1st tranche) — 374,295 7,639 During 2017 Common Unit ATM Program — 145,675 2,973 December 31, 2017 5,520,000 69,768,261 1,423,843 January 2018 Common Unit ATM Program — 617,969 12,548 During 2018 unit repurchase program — (930,866) — December 31, 2018 5,520,000 69,455,364 1,436,391 August 2019 unit repurchase program — (153,728) — December 31, 2019 5,520,000 69,301,636 1,436,391 |
EARNINGS PER UNIT AND CASH DI_2
EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER UNIT AND CASH DISTRIBUTIONS [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculations of basic and diluted earnings per common unit are presented below: (in thousands of $ except unit and per unit data) 2019 2018 2017 Common unitholders’ interest in net income 5,648 59,925 124,656 Less: distributions paid (1) (112,201) (137,335) (160,069) Over distributed earnings (106,553) (77,410) (35,413) Basic: Weighted average common units outstanding (in thousands) 69,397 69,944 68,671 Diluted: Weighted average common units outstanding (in thousands) 69,397 69,944 68,671 Earn-out units — — 654 Common unit and common unit equivalents 69,397 69,944 69,325 Earnings per unit - Common unitholders : Basic $ 0.08 $ 0.86 $ 1.82 Diluted 0.08 0.86 1.80 Cash distributions declared and paid in the period per common unit (2) 1.62 1.96 2.31 Subsequent event: Cash distributions declared and paid per common unit relating to the period (3) 0.40 0.40 0.58 __________________________________________ (1) Refers to distributions made or to be made to the common unitholders in relation to the period irrespective of the declaration and payment dates, and is based on the weighted average number of units outstanding in the period. (2) Refers to cash distributions declared and paid during the period. (3) Refers to cash distributions relating to the period, declared and paid subsequent to the period end. |
Schedule of Marginal Percentage Interest in Distributions | Marginal Percentage Interest in Distributions Quarterly Distribution Target Amount (per unit) Common Unitholders General Partner Holders of IDRs Minimum Quarterly Distribution $ 0.5775 98 % 2 % — First Target Distribution up to $0.6641 98 % 2 % — Second Target Distribution above $0.6641 up to $0.7219 85 % 2 % 13 % Third Target Distribution above $0.7219 up to $0.8663 75 % 2 % 23 % Thereafter above $0.8663 50 % 2 % 48 % |
GENERAL - Narrative (Details)
GENERAL - Narrative (Details) | Dec. 31, 2019 | Dec. 31, 2019vessel | Dec. 31, 2019storage_unit | Dec. 31, 2019carrier | Dec. 31, 2018carrierstorage_unit | Jul. 12, 2018 |
FSRUs | ||||||
Ownership interests: | ||||||
Number of vessels | 6 | 6 | 6 | |||
LNG Carriers | ||||||
Ownership interests: | ||||||
Number of vessels | 4 | 4 | 4 | |||
Golar | ||||||
Ownership interests: | ||||||
Ownership interest | 30.60% | 30.60% | ||||
Golar GP LLC | ||||||
Ownership interests: | ||||||
General Partners ownership interest | 2.00% | 2.00% | ||||
Incentive Distribution Rights | Golar GP LLC | ||||||
Ownership interests: | ||||||
Ownership of incentive distribution rights (IDRs) | 100.00% | 100.00% | ||||
Hilli | ||||||
Ownership interests: | ||||||
Percentage of voting interests acquired | 50.00% | 50.00% | ||||
Hilli | Hilli | ||||||
Ownership interests: | ||||||
Percentage of voting interests acquired | 50.00% |
BASIS OF PREPARATION AND SUMM_4
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2019vessel | |
Property, Plant and Equipment [Line Items] | |
Investment owned, percent of net assets | 50.00% |
Number of vessels | 1 |
Drydocking expenditure | |
Property, Plant and Equipment [Line Items] | |
Vessel estimated useful life (in years) | 5 years |
Vessels Under Finance Leases | |
Property, Plant and Equipment [Line Items] | |
Vessel estimated useful life (in years) | 40 years |
BASIS OF PREPARATION AND SUMM_5
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Vessels and Equipment Estimated Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Vessels (excluding converted FSRUs) | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 40 years |
Vessels - converted FSRUs | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 20 years |
Drydocking expenditure | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Mooring equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 11 years |
SUBSIDIARIES - Schedule of Sign
SUBSIDIARIES - Schedule of Significant Subsidiaries (Details) | Dec. 31, 2019 | Dec. 31, 2019vessel | Dec. 31, 2019tax_lease | Dec. 31, 2018vessel |
Ownership interests: | ||||
Ownership in subsidiary | 100.00% | |||
Number of leased shipping vessels | 1 | 1 | 1 | |
Faraway Maritime Shipping Company | ||||
Ownership interests: | ||||
Ownership in subsidiary | 60.00% | |||
PT Pesona | ||||
Ownership interests: | ||||
Third-party ownership of subsidiary | 51.00% |
VARIABLE INTEREST ENTITIES ("_3
VARIABLE INTEREST ENTITIES ("VIEs") - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2015 | Dec. 31, 2019USD ($)vessel | Dec. 31, 2018USD ($)vessel | Dec. 31, 2017USD ($) | Jul. 12, 2018USD ($) | |
Variable Interest Entity [Line Items] | |||||
Number of vessels | vessel | 1 | ||||
Interest expense | $ 79,791,000 | $ 80,650,000 | $ 75,425,000 | ||
Net cash used in financing activities | (189,288,000) | (272,211,000) | (8,729,000) | ||
Investment in affiliate | 193,270,000 | 206,180,000 | |||
PT Pesona | |||||
Variable Interest Entity [Line Items] | |||||
Dividends | $ 0 | 0 | 1,200,000 | ||
Hilli LLC | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of voting interests acquired | 50.00% | 50.00% | |||
Hilli LLC | |||||
Variable Interest Entity [Line Items] | |||||
Equity method investment, aggregate cost | $ 658,000,000 | ||||
Hilli LLC | Hilli LLC | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of voting interests acquired | 50.00% | ||||
Eskimo SPV Agreement | Golar Eskimo | |||||
Variable Interest Entity [Line Items] | |||||
Lease term | 10 years | ||||
Annual option to repurchase vessel at fixed, pre-determined amounts, period post commencement of bareboat charter | 3 years | ||||
Interest expense | $ 7,600,000 | 8,000,000 | 8,200,000 | ||
Net cash used in financing activities | $ 20,100,000 | $ 12,800,000 | 20,800,000 | ||
Variable Interest Entity, Primary Beneficiary | Eskimo SPV Agreement | |||||
Variable Interest Entity [Line Items] | |||||
Number of vessels | vessel | 1 | 1 | |||
Hilli LLC | |||||
Variable Interest Entity [Line Items] | |||||
Investment in affiliate | $ 193,270,000 | $ 206,180,000 | $ 0 |
VARIABLE INTEREST ENTITIES ("_4
VARIABLE INTEREST ENTITIES ("VIEs") - Summary of Sale and Leaseback Arrangements (Details) - Variable Interest Entity, Primary Beneficiary - Golar Eskimo - Eskimo SPV Agreement - USD ($) $ in Millions | 1 Months Ended | ||
Nov. 30, 2015 | Nov. 30, 2025 | Nov. 30, 2020 | |
Variable Interest Entity [Line Items] | |||
Sales value | $ 285 | ||
Scenario, Forecast | |||
Variable Interest Entity [Line Items] | |||
First repurchase option | $ 202 | ||
Repurchase obligation at end of lease term | $ 128.3 |
VARIABLE INTEREST ENTITIES ("_5
VARIABLE INTEREST ENTITIES ("VIEs") - Summary of Payment Obligations Under the Bareboat Charter (Details) - Variable Interest Entity, Primary Beneficiary - Golar Eskimo - Eskimo SPV Agreement $ in Thousands | Dec. 31, 2019USD ($) |
Variable Interest Entity [Line Items] | |
2020 | $ 23,122 |
2021 | 22,008 |
2022 | 21,251 |
2023 | 20,532 |
2024 | 19,828 |
After 2024 | $ 15,959 |
VARIABLE INTEREST ENTITIES ("_6
VARIABLE INTEREST ENTITIES ("VIEs") - Significant Assets & Liabilities of CMBL Lessor VIE (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities | ||
Long-term debt | $ 991,679 | $ 1,196,899 |
Eskimo SPV Agreement | Golar Eskimo | ||
Liabilities | ||
Short-term Debt | 11,436 | 11,836 |
Long-term debt | $ 169,395 | $ 187,401 |
VARIABLE INTEREST ENTITIES ("_7
VARIABLE INTEREST ENTITIES ("VIEs") - Balance Sheet of Variable Interest Entity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash | $ 47,661 | $ 96,648 | $ 246,954 | $ 65,710 |
Restricted cash (see note 17) | 135,928 | 141,114 | ||
Vessels and equipment, net | 1,369,665 | 1,535,757 | ||
Total assets | 2,105,612 | 2,240,817 | 2,427,371 | |
LIABILITIES AND EQUITY | ||||
Accrued liabilities | 23,451 | 27,229 | ||
Current portion of long-term debt | 225,254 | 75,451 | ||
Amounts due to related parties | 0 | 1,237 | ||
Non-current debt | 991,679 | 1,196,899 | ||
Total liabilities | 1,452,918 | 1,481,300 | ||
Total equity | 652,694 | 759,517 | $ 847,601 | $ 604,429 |
Total liabilities and equity | 2,105,612 | 2,240,817 | ||
PT Golar Indonesia | ||||
ASSETS | ||||
Cash | 13,108 | 19,599 | ||
Restricted cash (see note 17) | 9,543 | 10,209 | ||
Vessels and equipment, net | 227,418 | 248,526 | ||
Other assets | 3,158 | 2,699 | ||
Total assets | 253,227 | 281,033 | ||
LIABILITIES AND EQUITY | ||||
Accrued liabilities | 2,704 | 6,474 | ||
Current portion of long-term debt | 14,382 | 14,303 | ||
Amounts due to related parties | 51,203 | 83,334 | ||
Non-current debt | 58,865 | 73,247 | ||
Other liabilities | 974 | 638 | ||
Total liabilities | 128,128 | 177,996 | ||
Total equity | 125,099 | 103,037 | ||
Total liabilities and equity | $ 253,227 | $ 281,033 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2019charternumberOfSegmentvessel | Dec. 31, 2019storage_unit | Dec. 31, 2019carrier | Dec. 31, 2018carrierstorage_unit | |
Segment Reporting Information [Line Items] | ||||
Number of segments | numberOfSegment | 3 | |||
Number of charterers | charter | 9 | |||
LNG Carriers | ||||
Segment Reporting Information [Line Items] | ||||
Number of vessels | 4 | 4 | 4 | |
FSRUs | ||||
Segment Reporting Information [Line Items] | ||||
Number of vessels | 6 | 6 | 6 |
SEGMENT INFORMATION - Restateme
SEGMENT INFORMATION - Restatement (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 12, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total operating revenues | $ 299,652 | $ 346,650 | $ 433,102 | |
Vessel operating expenses | (60,958) | (65,247) | (68,278) | |
Voyage and commission expenses | (7,648) | (11,222) | (9,694) | |
Administrative expenses | (13,412) | (14,809) | (15,210) | |
Amount invoiced under sales-type lease | 0 | |||
Adjusted EBITDA | 217,634 | 255,372 | 339,920 | |
Assets | 2,105,612 | 2,240,817 | 2,427,371 | |
Capital expenditure | (13,480) | (42,201) | (22,441) | |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total operating revenues | 403,725 | 396,404 | ||
Vessel operating expenses | (84,000) | (75,081) | ||
Voyage and commission expenses | (7,878) | (11,656) | ||
Administrative expenses | (14,505) | (16,115) | ||
Amount invoiced under sales-type lease | 11,500 | |||
Adjusted EBITDA | 308,842 | 293,552 | ||
Assets | 2,105,612 | 2,240,817 | ||
Capital expenditure | (13,480) | (42,201) | ||
Operating Segments | FSRUs | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total operating revenues | 240,695 | 294,889 | 316,599 | |
Vessel operating expenses | (40,978) | (42,736) | (47,960) | |
Voyage and commission expenses | (4,467) | (7,138) | (8,375) | |
Administrative expenses | (8,090) | (9,384) | (10,029) | |
Amount invoiced under sales-type lease | 11,500 | |||
Adjusted EBITDA | 198,660 | 235,631 | 250,235 | |
Assets | 1,079,369 | 1,115,663 | 1,149,595 | |
Capital expenditure | (13,465) | (28,307) | (11,226) | |
Operating Segments | LNG Carrier | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total operating revenues | 58,957 | 51,761 | 116,503 | |
Vessel operating expenses | (19,980) | (22,511) | (20,318) | |
Voyage and commission expenses | (3,181) | (4,084) | (1,319) | |
Administrative expenses | (5,322) | (5,425) | (5,181) | |
Amount invoiced under sales-type lease | 0 | |||
Adjusted EBITDA | 30,474 | 19,741 | 89,685 | |
Assets | 510,558 | 534,805 | 545,225 | |
Capital expenditure | (15) | (13,894) | (11,215) | |
Operating Segments | FLNG | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total operating revenues | 104,073 | 49,754 | 0 | |
Vessel operating expenses | (23,042) | (9,834) | 0 | |
Voyage and commission expenses | (230) | (434) | 0 | |
Administrative expenses | (1,093) | (1,306) | 0 | |
Amount invoiced under sales-type lease | 0 | |||
Adjusted EBITDA | 79,708 | 38,180 | 0 | |
Assets | 193,270 | 206,180 | 0 | |
Capital expenditure | 0 | 0 | 0 | |
Unallocated | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total operating revenues | 0 | 0 | 0 | |
Vessel operating expenses | 0 | 0 | 0 | |
Voyage and commission expenses | 0 | 0 | 0 | |
Administrative expenses | 0 | 0 | 0 | |
Amount invoiced under sales-type lease | 0 | |||
Adjusted EBITDA | 0 | 0 | 0 | |
Assets | 322,415 | 384,169 | 732,551 | |
Capital expenditure | 0 | 0 | $ 0 | |
Consolidation Eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total operating revenues | (104,073) | (49,754) | ||
Vessel operating expenses | 23,042 | 9,834 | ||
Voyage and commission expenses | 230 | 434 | ||
Administrative expenses | 1,093 | 1,306 | ||
Amount invoiced under sales-type lease | (11,500) | |||
Adjusted EBITDA | (91,208) | (38,180) | ||
Assets | 0 | 0 | ||
Capital expenditure | $ 0 | $ 0 | ||
Hilli LLC | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Percentage of voting interests acquired | 50.00% | 50.00% |
SEGMENT INFORMATION - Revenues
SEGMENT INFORMATION - Revenues from External Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from external customers: | |||
Benchmark percentage of revenue for major customer | 10.00% | 10.00% | 10.00% |
PTNR | |||
Revenues from external customers: | |||
Revenues | $ 68,089 | $ 68,474 | $ 72,495 |
PTNR | Revenues | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk | 23.00% | 17.00% | 17.00% |
Petrobras | |||
Revenues from external customers: | |||
Revenues | $ 64,368 | $ 63,098 | $ 94,588 |
Petrobras | Revenues | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk | 21.00% | 16.00% | 22.00% |
Jordan | |||
Revenues from external customers: | |||
Revenues | $ 57,535 | $ 57,337 | $ 57,144 |
Jordan | Revenues | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk | 19.00% | 14.00% | 13.00% |
KNPC | |||
Revenues from external customers: | |||
Revenues | $ 40,379 | $ 48,093 | $ 47,646 |
KNPC | Revenues | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk | 13.00% | 12.00% | 11.00% |
Dubai Supply Authority | |||
Revenues from external customers: | |||
Revenues | $ 0 | $ 56,823 | $ 44,726 |
Dubai Supply Authority | Revenues | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk | 0.00% | 14.00% | 10.00% |
SEGMENT INFORMATION - Geographi
SEGMENT INFORMATION - Geographical Segment Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Geographical segment data: | |||
Fixed assets | $ 1,369,665 | $ 1,535,757 | |
Indonesia | |||
Geographical segment data: | |||
Revenues | 68,089 | 68,474 | $ 72,495 |
Fixed assets | 149,247 | 163,230 | |
Brazil | |||
Geographical segment data: | |||
Revenues | 64,368 | 63,098 | 94,588 |
Fixed assets | 203,889 | 214,018 | |
Jordan | |||
Geographical segment data: | |||
Revenues | 57,535 | 57,337 | 57,144 |
Fixed assets | 254,881 | 261,163 | |
Kuwait | |||
Geographical segment data: | |||
Revenues | 40,379 | 48,093 | 47,645 |
Fixed assets | 262,530 | 258,942 | |
United Arab Emirates | |||
Geographical segment data: | |||
Revenues | $ 0 | $ 56,823 | $ 44,726 |
(LOSSES)_GAINS ON DERIVATIVES_3
(LOSSES)/GAINS ON DERIVATIVES AND OTHER FINANCIAL ITEMS, NET (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 24, 2018 | |
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
(Losses)/gains on derivative instruments | $ (38,796,000) | $ 8,106,000 | $ 7,796,000 | |
Unrealized foreign exchange (gains)/losses | (941,000) | 995,000 | (3,657,000) | |
Amortization of debt guarantee (see note 25) | 2,065,000 | 503,000 | 0 | |
Financing arrangement fees and other costs | (531,000) | (1,363,000) | (527,000) | |
Losses on repurchase of 2012 High-Yield Bonds | 0 | 0 | (6,327,000) | |
Other financial items, net | 675,000 | (592,000) | (15,363,000) | |
(Losses)/gains on derivatives and other financial items, net | (38,121,000) | 7,514,000 | (7,567,000) | |
Derivative liability | 36,167,000 | 8,753,000 | ||
Interest Rate Swap | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
(Losses)/gains on derivative instruments | (43,746,000) | (1,455,000) | 12,073,000 | |
Earn-Out Units | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
(Losses)/gains on derivative instruments | 0 | 7,400,000 | (441,000) | |
Cross Currency Interest Rate Swap | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
(Losses)/gains on derivative instruments | 0 | 0 | 3,718,000 | |
Interest rate cash flow hedge gain (loss) reclassified to earnings, net | (5,000,000) | |||
Net Interest Income (Expense) within Derivative Financial Instruments | Interest Rate Swap | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
(Losses)/gains on derivative instruments | 4,950,000 | 2,161,000 | (7,554,000) | |
Other Non-Operating Expense | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Unrealized foreign exchange (gains)/losses | 82,000 | (837,000) | (378,000) | |
Capital lease obligation and related Restricted Cash | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Unrealized foreign exchange (gains)/losses | (941,000) | 1,105,000 | (659,000) | |
High-Yield Bonds | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Unrealized foreign exchange (gains)/losses | 0 | 0 | (3,103,000) | |
Losses on repurchase of 2012 High-Yield Bonds | 0 | 0 | (7,876,000) | |
Premium paid on repurchase of 2012 High-Yield Bonds | 0 | 0 | (2,820,000) | |
Foreign currency transaction gain (loss), realized | $ (2,900,000) | |||
Common Stock | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Distribution amount per share (in dollars per share) | $ 0.4042 | |||
Carrying Value | Level 2 | Interest Rate Swap | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Derivative liability | 36,167,000 | $ 8,753,000 | ||
Carrying Value | Level 2 | Earn-Out Units | ||||
Component of Other Income (Expense), Nonoperating [Line Items] | ||||
Derivative liability | $ 0 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax Expense (Credit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current tax expense (credit) | $ 14,342 | $ 15,737 | $ 9,825 |
Deferred tax expense | 3,620 | 1,728 | 7,171 |
Total income tax expense | $ 17,962 | $ 17,465 | $ 16,996 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Income Tax Expense (Benefit) | |||
Total income tax expense | $ 17,962 | $ 17,465 | $ 16,996 |
Foreign Tax Authority | |||
Components of Income Tax Expense (Benefit) | |||
Effect of taxable income in various countries | 18,023 | 16,342 | 16,311 |
Effect of change on uncertain tax positions | (61) | 1,329 | 685 |
Effect of recognition of deferred tax asset and liabilities | 0 | (206) | 0 |
Total income tax expense | $ 17,962 | $ 17,465 | $ 16,996 |
Foreign Tax Authority | Marshall Islands | |||
Components of Income Tax Expense (Benefit) | |||
Statutory income tax rate | 0.00% | 0.00% | 0.00% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax penalties and interest expense | $ 0.2 | $ 0.1 | $ 0.6 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Deferred Tax Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Tax Asset, Net Reconciliation | ||
Deferred tax assets, at period start | $ 103,000 | $ 250,000 |
Deferred tax liabilities, at period start | (7,126,000) | (5,545,000) |
Deferred tax liabilities, at period start | (7,023,000) | (5,295,000) |
Recognized in the year | ||
Tax Adjustments, Settlements, and Unusual Provisions | (1,537,000) | 331,000 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | (271,000) |
Recognition of Deferred Tax Liability on Fixed Assets | (2,083,000) | (1,788,000) |
Adjustments recognized in period | (3,620,000) | (1,728,000) |
Deferred tax assets, at period end | 0 | 103,000 |
Deferred tax liabilities, at period end | (10,643,000) | (7,126,000) |
Deferred tax liabilities, at period end | $ (10,643,000) | $ (7,023,000) |
OPERATING LEASES (Details)
OPERATING LEASES (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 261,950 |
2021 | 262,779 |
2022 | 229,597 |
2023 | 136,696 |
2024 and thereafter | 137,344 |
Total | $ 1,028,366 |
OPERATING LEASES - OPERATING LE
OPERATING LEASES - OPERATING LEASE INCOME (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease income | $ 291,806 |
Variable lease income | 2,148 |
Total operating lease income | $ 293,954 |
INVESTMENTS IN AFFILIATE (Detai
INVESTMENTS IN AFFILIATE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Underlying Equity in Net Assets [Roll Forward] | |||
Equity in net assets of affiliate at January 1, | $ 206,180 | ||
Dividend | (2,328) | $ (1,191) | $ 0 |
Equity in net earnings of affiliate | 4,540 | 1,190 | 0 |
Equity in net assets of affiliate at December 31 | 193,270 | 206,180 | |
Hilli LLC | |||
Underlying Equity in Net Assets [Roll Forward] | |||
Equity in net assets of affiliate at January 1, | 206,180 | 0 | |
Net purchase price on acquisition | 0 | 199,728 | |
Dividend | (17,450) | (5,581) | |
Equity in net earnings of affiliate | 4,540 | 1,190 | |
Fair value of debt guarantee (see note 11) | 0 | 10,843 | |
Equity in net assets of affiliate at December 31 | $ 193,270 | $ 206,180 | $ 0 |
INVESTMENTS IN AFFILIATE - Narr
INVESTMENTS IN AFFILIATE - Narrative (Details) $ in Millions | Jul. 12, 2018USD ($) | Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019$ / barrel |
Investments in and Advances to Affiliates [Line Items] | ||||
Crude oil, sale price | $ / barrel | 60 | |||
Perenco and SNH | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Liquefaction trains, contractual term | 8 years | |||
Hilli LLC | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Hilli LLC | Golar, Keppel, and B&V | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Portion of net lease obligations | 50.00% | |||
Hilli LLC | Golar | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Percentage ownership by wholly owned subsidiary | 44.60% | |||
Series A Preferred Stock | Hilli LLC | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Entitlement to distributions | 100.00% | |||
Series B Preferred Stock | Hilli LLC | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Entitlement to distributions | 95.00% | |||
Portion of LNG production capacity used to calculate distributions | 50.00% | |||
Common Stock | Hilli LLC | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Entitlement to distributions | 5.00% | |||
Hilli LLC | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Business acquisition, percentage of interests acquired | 50.00% | 50.00% | ||
Hilli LLC | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Equity method investment, aggregate cost | $ | $ 658 | |||
Hilli LLC | Hilli LLC | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Business acquisition, percentage of interests acquired | 50.00% | |||
Hilli LLC | Keppel Shipyard Limited (“Keppel”) | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 5.00% | |||
Hilli LLC | Black and Veatch (“B&V”) | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 0.40% |
INVESTMENT IN AFFILIATE - Hilli
INVESTMENT IN AFFILIATE - Hilli LLC Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Current assets | $ 133,299 | $ 164,529 | |
Current liabilities | (309,154) | (136,107) | |
Net income | 21,134 | 76,548 | $ 144,848 |
Hilli LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 54,000 | 124,642 | |
Non-current assets | 1,300,065 | 1,392,711 | |
Current liabilities | (45,106) | (109,773) | |
Non-current liabilities | (924,578) | (1,004,184) | |
Revenues | 218,095 | 127,625 | |
Net income | $ 70,756 | $ 77,842 |
TRADE ACCOUNTS RECEIVABLE (Deta
TRADE ACCOUNTS RECEIVABLE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Provision for doubtful accounts | $ 0 | $ 0 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative | ||
Prepaid expenses | $ 2,087 | $ 2,386 |
Other receivables | 9,807 | 2,346 |
Other receivables and prepaid expenses | 11,894 | 6,534 |
Contract receivable | 8,200 | |
Accrued withholding and payroll taxes, current | 7,600 | |
Interest Rate Swap | ||
Derivative | ||
Mark-to-market interest rate swaps valuation (see note 24) | 0 | $ 1,802 |
Accrued Expenses | ||
Derivative | ||
Accrued withholding and payroll taxes, current | 600 | |
Other Current Liabilities | ||
Derivative | ||
Accrued withholding and payroll taxes, current | $ 7,600 |
VESSELS AND EQUIPMENT, NET - Sc
VESSELS AND EQUIPMENT, NET - Schedule of Vessels and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Property, Plant and Equipment [Roll Forward] | ||
Vessels and equipment, gross at period start | $ 2,246,302 | $ 2,259,132 |
Additions | 13,480 | 28,402 |
Disposal | (226,417) | |
Write-off of fully depreciated and amortized asset | (6,363) | (41,232) |
Vessels and equipment, gross at period end | 2,027,002 | 2,246,302 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | ||
Depreciation and amortization at period start | (710,545) | (670,209) |
Charge for the year | (67,625) | (81,568) |
Disposal | 114,470 | |
Write-off of fully depreciated and amortized asset | 6,363 | 41,232 |
Depreciation and amortization at period end | (657,337) | (710,545) |
Net book value | 1,369,665 | 1,535,757 |
Vessels | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Vessels and equipment, gross at period start | 2,143,388 | 2,132,856 |
Additions | 7,547 | 10,549 |
Disposal | (208,987) | |
Write-off of fully depreciated and amortized asset | 0 | (17) |
Vessels and equipment, gross at period end | 1,941,948 | 2,143,388 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | ||
Depreciation and amortization at period start | (663,123) | (600,578) |
Charge for the year | (55,796) | (62,562) |
Disposal | 113,676 | |
Write-off of fully depreciated and amortized asset | 0 | 17 |
Depreciation and amortization at period end | (605,243) | (663,123) |
Net book value | 1,336,705 | 1,480,265 |
Drydocking expenditure | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Vessels and equipment, gross at period start | 65,088 | 88,450 |
Additions | 5,933 | 17,853 |
Disposal | (17,430) | |
Write-off of fully depreciated and amortized asset | (6,363) | (41,215) |
Vessels and equipment, gross at period end | 47,228 | 65,088 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | ||
Depreciation and amortization at period start | (23,804) | (49,559) |
Charge for the year | (8,282) | (15,460) |
Disposal | 794 | |
Write-off of fully depreciated and amortized asset | 6,363 | 41,215 |
Depreciation and amortization at period end | (24,929) | (23,804) |
Net book value | 22,299 | 41,284 |
Mooring Equipment | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Vessels and equipment, gross at period start | 37,826 | 37,826 |
Additions | 0 | 0 |
Disposal | 0 | |
Write-off of fully depreciated and amortized asset | 0 | 0 |
Vessels and equipment, gross at period end | 37,826 | 37,826 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | ||
Depreciation and amortization at period start | (23,618) | (20,072) |
Charge for the year | (3,547) | (3,546) |
Disposal | 0 | |
Write-off of fully depreciated and amortized asset | 0 | 0 |
Depreciation and amortization at period end | (27,165) | (23,618) |
Net book value | $ 10,661 | $ 14,208 |
VESSELS AND EQUIPMENT, NET (Det
VESSELS AND EQUIPMENT, NET (Details) $ in Millions | Dec. 31, 2019USD ($)vessel | Dec. 31, 2018USD ($) |
Property, Plant and Equipment [Abstract] | ||
Vessels and equipment pledged as collateral | $ | $ 1,241.9 | $ 1,402.6 |
Number of vessels with carrying value in excess of market value | vessel | 7 |
VESSELS AND EQUIPMENT, NET - _2
VESSELS AND EQUIPMENT, NET - Schedule of Market Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
2019 Carrying value | $ 1,369,665 | $ 1,535,757 |
Golar Winter | ||
Property, Plant and Equipment [Line Items] | ||
2018 Market value | 164,000 | |
2019 Carrying value | 204,000 | |
Deficit | (40,000) | |
NR Satu | ||
Property, Plant and Equipment [Line Items] | ||
2018 Market value | 115,000 | |
2019 Carrying value | 149,000 | |
Deficit | (34,000) | |
Methane Princess | ||
Property, Plant and Equipment [Line Items] | ||
2018 Market value | 63,000 | |
2019 Carrying value | 108,000 | |
Deficit | (45,000) | |
Golar Maria | ||
Property, Plant and Equipment [Line Items] | ||
2018 Market value | 82,000 | |
2019 Carrying value | 172,000 | |
Deficit | (90,000) | |
Golar Grand | ||
Property, Plant and Equipment [Line Items] | ||
2018 Market value | 84,000 | |
2019 Carrying value | 102,000 | |
Deficit | (18,000) | |
Golar Mazo | ||
Property, Plant and Equipment [Line Items] | ||
2018 Market value | 51,000 | |
2019 Carrying value | 128,000 | |
Deficit | (77,000) | |
Golar Igloo | ||
Property, Plant and Equipment [Line Items] | ||
2018 Market value | 261,000 | |
2019 Carrying value | 263,000 | |
Deficit | $ (2,000) |
VESSEL UNDER CAPITAL LEASE, N_3
VESSEL UNDER CAPITAL LEASE, NET (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)vessel | Dec. 31, 2019vessel | Dec. 31, 2019tax_lease | |
Property, Plant and Equipment [Line Items] | ||||
Number of leased shipping vessels | 1 | 1 | 1 | |
Cost | ||||
As of January 1, and December 31, | $ 174,511 | |||
Depreciation and amortization | ||||
As of January 1 | $ (59,800) | |||
Charge for the year | (6,278) | |||
As of December 31 | (66,078) | (59,800) | ||
Net book value as at December 31 | 108,433 | |||
Cost | ||||
As of January 1 | 174,511 | |||
Additions | 13,800 | |||
Write-off of fully depreciated and amortized asset | (8,129) | |||
As of December 31 | 174,511 | 168,840 | ||
Depreciation and amortization | ||||
As of January 1 | (59,800) | (62,895) | ||
Charge for the year | (5,034) | |||
Write-off of fully depreciated and amortized asset | 8,129 | |||
As of December 31 | (59,800) | |||
Net book value as at December 31 | 114,711 | |||
Vessels | ||||
Cost | ||||
As of January 1, and December 31, | 163,231 | |||
Depreciation and amortization | ||||
As of January 1 | (59,425) | |||
Charge for the year | (4,022) | |||
As of December 31 | (63,447) | (59,425) | ||
Net book value as at December 31 | 99,784 | |||
Cost | ||||
As of January 1 | 163,231 | |||
Additions | 2,696 | |||
Write-off of fully depreciated and amortized asset | 0 | |||
As of December 31 | 163,231 | 160,535 | ||
Depreciation and amortization | ||||
As of January 1 | (59,425) | (55,510) | ||
Charge for the year | (3,915) | |||
Write-off of fully depreciated and amortized asset | 0 | |||
As of December 31 | (59,425) | |||
Net book value as at December 31 | 103,806 | |||
Drydocking expenditure | ||||
Cost | ||||
As of January 1, and December 31, | 11,280 | |||
Depreciation and amortization | ||||
As of January 1 | (375) | |||
Charge for the year | (2,256) | |||
As of December 31 | (2,631) | (375) | ||
Net book value as at December 31 | 8,649 | |||
Cost | ||||
As of January 1 | 11,280 | |||
Additions | 11,104 | |||
Write-off of fully depreciated and amortized asset | (8,129) | |||
As of December 31 | 11,280 | 8,305 | ||
Depreciation and amortization | ||||
As of January 1 | (375) | (7,385) | ||
Charge for the year | (1,119) | |||
Write-off of fully depreciated and amortized asset | 8,129 | |||
As of December 31 | $ (375) | |||
Net book value as at December 31 | $ 10,905 |
INVESTMENT IN LEASED VESSEL, _3
INVESTMENT IN LEASED VESSEL, NET (Details) - USD ($) $ in Thousands | May 15, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Lessor, Lease, Description [Line Items] | |||
Sales-type lease, termination period | 3 years | ||
Sales-type lease, renewal term | 5 years | ||
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |||
2020 | $ 18,300 | ||
2021 | 18,250 | ||
2022 | 18,250 | ||
2023 | 18,250 | ||
2024 and thereafter | 189,350 | ||
Total minimum lease receivable | 262,400 | ||
Unguaranteed residual value | 16,000 | ||
Gross investment in sales-type lease | 278,400 | ||
Less: unearned interest income | (164,263) | ||
Investment in leased vessel, net | 114,137 | ||
Less: current portion of investment in leased vessel, net | (2,308) | $ 0 | |
Non-current portion of investment in leased vessel, net | 111,829 | ||
Leased Vessel | |||
Lessor, Lease, Description [Line Items] | |||
Gain (loss) on disposition | $ 4,200 | ||
Sales-type lease, interest income | $ 9,500 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cost | ||
As of January 1 | $ 114,616 | $ 114,616 |
Write-off of fully amortized asset | (19,099) | 0 |
As of December 31 | 95,517 | 114,616 |
Depreciation, amortization and impairment | ||
As of January 1 | (54,247) | (41,410) |
Charge for the year | (9,960) | (12,837) |
Write-off of fully amortized asset | 19,099 | 0 |
As of December 31 | (45,108) | (54,247) |
Total | $ 50,409 | $ 60,369 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets | |||
Intangible asset residual value | $ 0 | ||
Impairment of intangible assets | 0 | ||
Amortization of Intangible Assets | $ 10,000,000 | $ 12,800,000 | $ 12,900,000 |
Ministry of Energy and Mineral Resources of the Hashemite Kingdom of Jordan | |||
Finite-Lived Intangible Assets | |||
Remaining amortization period (in years) | 10 years |
INTANGIBLE ASSETS, NET - Sche_2
INTANGIBLE ASSETS, NET - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 9,114 | |
2021 | 9,114 | |
2022 | 9,114 | |
2023 | 9,114 | |
2024 | 9,114 | |
2025 | 4,839 | |
Total | $ 50,409 | $ 60,369 |
RESTRICTED CASH AND SHORT-TER_3
RESTRICTED CASH AND SHORT-TERM DEPOSITS - Schedule of Restricted Cash and Short-Term Investments (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 30, 2016 | Dec. 31, 2012 |
Restricted Cash and Cash Equivalents Items | |||||||
Total restricted cash | $ 182,261,000 | $ 172,444,000 | |||||
Less: current portion of restricted cash | (46,333,000) | (31,330,000) | $ (27,306,000) | $ (44,927,000) | |||
Non-current restricted cash | 135,928,000 | 141,114,000 | |||||
Minimum amount of cash and cash equivalents | 30,000,000 | ||||||
NR Satu Facility | |||||||
Restricted Cash and Cash Equivalents Items | |||||||
Face amount of debt instrument | $ 175,000,000 | ||||||
Interest Rate Swap | |||||||
Restricted Cash and Cash Equivalents Items | |||||||
Total restricted cash | 14,810,000 | 6,480,000 | |||||
Secured Debt | NR Satu Facility | |||||||
Restricted Cash and Cash Equivalents Items | |||||||
Total restricted cash | 9,543,000 | 10,209,000 | |||||
Performance Guarantee | |||||||
Restricted Cash and Cash Equivalents Items | |||||||
Total restricted cash | 19,680,000 | 12,548,000 | |||||
Collateral Deposits | |||||||
Restricted Cash and Cash Equivalents Items | |||||||
Total restricted cash | 18,100,000 | 12,500,000 | |||||
Methane Princess Lease | |||||||
Restricted Cash and Cash Equivalents Items | |||||||
Total restricted cash | 114,676,000 | 112,362,000 | |||||
$800 million facility | $800 million credit facility | |||||||
Restricted Cash and Cash Equivalents Items | |||||||
Total restricted cash | 23,552,000 | $ 30,845,000 | |||||
Face amount of debt instrument | 800,000,000 | $ 800,000,000 | |||||
Scenario, Forecast | $800 million facility | $800 million credit facility | |||||||
Restricted Cash and Cash Equivalents Items | |||||||
Total restricted cash | $ 16,500,000 | ||||||
Bid Bond | Performance Guarantee | |||||||
Restricted Cash and Cash Equivalents Items | |||||||
Total restricted cash | $ 1,600,000 |
OTHER NON-CURRENT ASSETS - Sche
OTHER NON-CURRENT ASSETS - Schedule of Other Non-Current Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of other non-current assets: | |||
Other non-current assets | $ 1,494 | $ 2,342 | |
Mark-to-market interest rate swaps valuation (see note 24) | 1,285 | 15,815 | |
Other non-current assets | 2,779 | 18,157 | |
NR Satu | |||
Components of other non-current assets: | |||
Capitalized commission expenses and lease incentives | 1,500 | 2,200 | |
Amortization expense | $ 700 | $ 700 | $ 700 |
ACCRUED EXPENSES - Schedule of
ACCRUED EXPENSES - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Current tax payable | $ 9,134 | $ 12,155 |
Interest expense | 7,036 | 7,887 |
Vessel operating and drydocking expenses | 6,503 | 6,824 |
Administrative expenses | 778 | 363 |
Accrued expenses | 23,451 | 27,229 |
Provision for interest and penalties | 200 | $ 100 |
Tax receivable, current | $ 600 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Mark-to-market swaps valuation: | ||
Other creditors | $ 7,910 | $ 1,410 |
Deferred revenue | 7,720 | 10,636 |
Guarantee (see note 25) | 1,772 | 2,066 |
Deferred credits from capital lease transactions (see note 22) | 625 | 625 |
Other current liabilities | 55,703 | 25,033 |
Accrued withholding and payroll taxes, current | 7,600 | |
Interest Rate Swap | ||
Mark-to-market swaps valuation: | ||
Mark-to-market interest rate swaps valuation (see note 24) | 36,167 | 8,753 |
Preferred Stock | ||
Mark-to-market swaps valuation: | ||
Preferred units dividend payable (see note 28) | $ 1,509 | $ 1,543 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Total debt, net deferred finance charges | $ 1,216,933 | $ 1,272,350 |
Less: Current portion of long-term debt due to third parties, net of deferred finance charges | (225,254) | (75,451) |
Long-term debt, net of deferred finance charges | $ 991,679 | $ 1,196,899 |
DEBT - Schedule of Repayment of
DEBT - Schedule of Repayment of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 228,186 | |
2021 | 793,568 | |
2022 | 57,431 | |
2023 | 12,819 | |
2024 | 12,836 | |
2025 and thereafter | 118,104 | |
Total debt | 1,222,944 | $ 1,283,100 |
Less: deferred finance charges | (6,011) | (10,800) |
Total debt, net deferred finance charges | $ 1,216,933 | $ 1,272,350 |
DEBT - Schedule of Long-Term De
DEBT - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,222,944 | $ 1,283,100 |
2015 Norwegian Bonds | ||
Debt Instrument [Line Items] | ||
Total debt | 150,000 | 150,000 |
$800 million credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 568,000 | 595,000 |
2017 Norwegian Bonds | ||
Debt Instrument [Line Items] | ||
Total debt | 250,000 | 250,000 |
NR Satu Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 74,113 | 88,863 |
Eskimo SPV Debt* | ||
Debt Instrument [Line Items] | ||
Total debt | $ 180,831 | $ 199,237 |
DEBT - $800 Million Credit Faci
DEBT - $800 Million Credit Facility Narrative (Details) | 1 Months Ended | ||||
Apr. 30, 2016USD ($)vessel | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |||||
Drawdown of revolving credit facility | $ 1,216,933,000 | $ 1,272,350,000 | |||
Value of deposit secured against loan | 182,261,000 | 172,444,000 | |||
Senior Secured Credit Facility | $800 million facility | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 800,000,000 | 800,000,000 | |||
Number of vessels as collateral | vessel | 7 | ||||
Debt instrument term (in years) | 5 years | ||||
Value of deposit secured against loan | 23,552,000 | $ 30,845,000 | |||
Senior Secured Credit Facility | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 650,000,000 | ||||
Senior Secured Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Final balloon payment | $ 378,000,000 | ||||
Senior Secured Credit Facility | Line of Credit | $800 million facility | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | 568,000,000 | ||||
Senior Secured Credit Facility | Line of Credit | $800 million facility | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Margin on LIBOR | 2.50% | ||||
Senior Secured Credit Facility | Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 150,000,000 | ||||
Amount of reduction to maximum borrowing capacity | $ 50,000,000 | $ 25,000,000 | |||
Drawdown of revolving credit facility | $ 125,000,000 |
DEBT - 2015 and 2017 Norwegian
DEBT - 2015 and 2017 Norwegian Bonds (Details) - Extended Bonds - USD ($) | Feb. 15, 2017 | May 31, 2015 | Dec. 31, 2019 |
2015 Norwegian Bonds | |||
Debt Instrument [Line Items] | |||
Face amount of debt instrument | $ 150,000,000 | ||
Debt instrument term (in years) | 5 years | ||
Margin on LIBOR | 4.40% | 4.40% | |
2015 Norwegian Bonds | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
All-in fixed interest rate | 6.275% | ||
2017 Norwegian Bonds | |||
Debt Instrument [Line Items] | |||
Face amount of debt instrument | $ 250,000,000 | ||
Margin on LIBOR | 6.25% | 6.25% | |
2017 Norwegian Bonds | Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
All-in fixed interest rate | 8.194% |
DEBT - NR Satu Facility Narrati
DEBT - NR Satu Facility Narrative (Details) | 1 Months Ended | |||
Mar. 31, 2018USD ($)tranche | Dec. 31, 2012USD ($)tranche | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||
Value of deposit secured against loan | $ 182,261,000 | $ 172,444,000 | ||
NR Satu Facility | ||||
Debt Instrument [Line Items] | ||||
Term of loan | 7 years | |||
Debt Instrument, Face Amount | $ 175,000,000 | |||
Number of tranches | tranche | 2 | |||
Line of credit | 74,100,000 | |||
NR Satu Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Value of deposit secured against loan | $ 9,543,000 | $ 10,209,000 | ||
NR Satu Facility | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 155,000,000 | |||
Final balloon payment | 52,500,000 | |||
NR Satu Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 20,000,000 | |||
New NR Satu Facility | ||||
Debt Instrument [Line Items] | ||||
Number of tranches | tranche | 2 | |||
New NR Satu Facility | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 155,000,000 | |||
New NR Satu Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 20,000,000 | |||
London Interbank Offered Rate (LIBOR) | NR Satu Facility | ||||
Debt Instrument [Line Items] | ||||
Margin on LIBOR | 3.50% | |||
London Interbank Offered Rate (LIBOR) | New NR Satu Facility | ||||
Debt Instrument [Line Items] | ||||
Margin on LIBOR | 2.35% |
DEBT - Debt and Lease Restricti
DEBT - Debt and Lease Restrictions Narrative (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Free liquid assets requirement (at least) | $ 30,000,000 |
EBITDA to debt service leverage ratio, minimum | 1.15 |
Covenant, net debt to EBITDA leverage ratio, maximum | 6.5 |
Percent of outstanding facility amount (at least) | 110.00% |
Minimum | |
Debt Instrument [Line Items] | |
Consolidated net worth requirement | $ 123,950,000 |
Maximum | |
Debt Instrument [Line Items] | |
Consolidated net worth requirement | $ 250,000,000 |
Certain Partnership Subsidiaries | |
Debt Instrument [Line Items] | |
EBITDA to debt service leverage ratio, minimum | 1.10 |
OBLIGATION UNDER CAPITAL LEAS_2
OBLIGATION UNDER CAPITAL LEASE - Schedule of Long-Term Obligations Under Capital Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019vessel | Dec. 31, 2019tax_lease | Dec. 31, 2018USD ($)vessel |
Leases [Abstract] | ||||
Total obligation under finance lease | $ 122,779 | |||
Less: current portion of obligation under finance lease | (1,990) | |||
Non-current portion of obligation under finance lease | 120,789 | |||
Total obligation under finance lease | $ 119,683 | |||
Less: current portion of obligation under finance lease | (1,990) | (1,564) | ||
Non-current portion of obligation under finance lease | $ 120,789 | $ 118,119 | ||
Number of leased shipping vessels | 1 | 1 | 1 |
OBLIGATION UNDER CAPITAL LEAS_3
OBLIGATION UNDER CAPITAL LEASE - Schedule of Future Minimum Lease Payments for Capital Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leased Assets | |
Present value of minimum lease payments | $ 122,779 |
Methane Princess Lease | |
Operating Leased Assets | |
2020 | 8,353 |
2021 | 8,678 |
2022 | 9,007 |
2023 | 9,343 |
2024 and thereafter | 155,264 |
Total minimum lease payments | 190,645 |
Less: Imputed interest | (67,866) |
Present value of minimum lease payments | $ 122,779 |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Long-term Liabilities Disclosure [Abstract] | |||
Deferred tax liability (see note 8) | $ 10,643 | $ 7,126 | $ 5,545 |
Guarantee (see note 25) | 6,504 | 8,275 | |
Deferred credits from finance lease transactions | 14,149 | 14,774 | |
Other long-term liabilities | 31,296 | 30,175 | |
Deferred credits from capital lease transactions: | |||
Deferred credits from finance lease transactions | 24,691 | 24,691 | |
Less: Accumulated amortization | (9,917) | (9,292) | |
Deferred credits from capital lease transactions | 14,774 | 15,399 | |
Non-current | 625 | 625 | |
Deferred credits from finance lease transactions | $ 14,149 | $ 14,774 |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Interest Rate Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative | ||
Notional Amount | $ 637,200 | |
Interest Rate Swap | ||
Derivative | ||
Notional Amount | $ 1,557,834 | $ 1,783,325 |
Interest Rate Swap | Minimum | ||
Derivative | ||
Fixed Interest Rate | 1.12% | 1.07% |
Interest Rate Swap | Maximum | ||
Derivative | ||
Fixed Interest Rate | 2.90% | 2.90% |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)customer | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative | |||
Notional Amount | $ 637,200 | ||
Foreign currency transaction loss | $ 900 | $ 700 | |
Net foreign exchange gain | 1,100 | ||
Cash collateral provided | $ 182,261 | 172,444 | |
Number of customers accounting for all of revenues | customer | 9 | ||
Interest Rate Swap | |||
Derivative | |||
Initial fixed collateral amount | $ 2,500 | ||
Cash collateral provided | 14,810 | 6,480 | |
Interest Rate Swap | |||
Derivative | |||
Derivative, notional amount, maturity | 146,600 | ||
Notional Amount | $ 1,557,834 | 1,783,325 | |
Existing Interest Rate Swaps | |||
Derivative | |||
Notional amount, restructured | 100,000 | ||
Terminated Interest Rate Swaps | |||
Derivative | |||
Notional amount, terminated | $ 122,500 |
FINANCIAL INSTRUMENTS - Sched_2
FINANCIAL INSTRUMENTS - Schedule of Derivative Instruments in Statement of Financial Positions, Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Non-Derivatives: | ||||
Cash and cash equivalents | $ 47,661 | $ 96,648 | $ 246,954 | $ 65,710 |
Restricted cash and short-term deposits - current | 46,333 | 31,330 | $ 27,306 | $ 44,927 |
Drawdown of revolving credit facility | 1,216,933 | 1,272,350 | ||
Capital lease obligation | 122,779 | |||
Capital lease obligations | 119,683 | |||
Derivatives: | ||||
Derivative asset | 1,285 | 17,617 | ||
Derivative liability | 36,167 | 8,753 | ||
Debt issuance costs | 6,011 | 10,800 | ||
Carrying Value | Level 1 | ||||
Non-Derivatives: | ||||
Cash and cash equivalents | 47,661 | 96,648 | ||
Restricted cash and short-term deposits - current | 182,261 | 172,444 | ||
Carrying Value | Level 1 | Norwegian Bonds | ||||
Non-Derivatives: | ||||
Drawdown of revolving credit facility | 400,000 | 400,000 | ||
Carrying Value | Level 2 | ||||
Non-Derivatives: | ||||
Long-term debt, floating | 822,944 | 883,100 | ||
Capital lease obligation | 122,779 | |||
Capital lease obligations | 119,683 | |||
Carrying Value | Level 2 | Interest Rate Swap | ||||
Derivatives: | ||||
Derivative asset | 1,285 | 17,617 | ||
Derivative liability | 36,167 | 8,753 | ||
Fair Value | Level 1 | ||||
Non-Derivatives: | ||||
Cash and cash equivalents | 47,661 | 96,648 | ||
Restricted cash and short-term deposits | 182,261 | 172,444 | ||
Fair Value | Level 1 | Norwegian Bonds | ||||
Non-Derivatives: | ||||
High-yield and Norwegian bonds | $ 394,715 | $ 396,843 | ||
Derivatives: | ||||
Fair value as a percentage of face value | 98.70% | 99.20% | ||
Fair Value | Level 2 | ||||
Non-Derivatives: | ||||
Short-term and long-term debt—floating | $ 822,944 | $ 883,100 | ||
Obligations under capital leases | 122,779 | 119,683 | ||
Fair Value | Level 2 | Interest Rate Swap | ||||
Derivatives: | ||||
Derivative asset | 1,285 | 17,617 | ||
Derivative liability | $ 36,167 | $ 8,753 |
FINANCIAL INSTRUMENTS - Sched_3
FINANCIAL INSTRUMENTS - Schedule of Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total asset derivatives | ||
Gross amounts presented in the consolidated balance sheet | $ 1,285 | $ 17,617 |
Gross amounts not offset in the consolidated balance sheet subject to netting agreements | (1,029) | (3,281) |
Net amount | 256 | 14,336 |
Total liability derivatives | ||
Gross amounts presented in the consolidated balance sheet | 36,167 | 8,753 |
Gross amounts not offset in the consolidated balance sheet subject to netting agreements | (1,029) | (3,281) |
Net amount | $ 35,138 | $ 5,472 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Dividends to China Petroleum Corporation | $ 0 | $ 0 | $ (7,000,000) |
Golar LNG Limited | |||
Related Party Transaction [Line Items] | |||
Interest income | 2,200,000 | ||
Distributions to Golar | (19,291,000) | (42,842,000) | (52,255,000) |
Receivables (payables) from related parties | 5,098,000 | (1,237,000) | |
Golar LNG Limited | Time Charter Revenues | |||
Related Party Transaction [Line Items] | |||
Time charter revenues | 0 | 0 | 17,423,000 |
Golar LNG Limited | Management and Administrative Service Fees | |||
Related Party Transaction [Line Items] | |||
Management and administrative service fees | (9,645,000) | (9,809,000) | (7,762,000) |
Golar LNG Limited | Ship Management Fees | |||
Related Party Transaction [Line Items] | |||
Fees and expenses | (4,460,000) | (5,200,000) | (5,903,000) |
Golar LNG Limited | Interest Income on Short-term Loans | |||
Related Party Transaction [Line Items] | |||
Fees and expenses | (109,000) | 0 | 0 |
Golar LNG Limited | Share Options Expense | |||
Related Party Transaction [Line Items] | |||
Fees and expenses | 0 | 0 | (228,000) |
Golar LNG Limited | Deposit Paid | |||
Related Party Transaction [Line Items] | |||
Interest income | 0 | 4,779,000 | 4,622,000 |
Golar LNG Limited | Balances Due from Golar and its Affiliates | |||
Related Party Transaction [Line Items] | |||
Receivables (payables) from related parties | 2,845,000 | (4,091,000) | |
Golar LNG Limited | Methane Princess Lease Security Deposit Movements | |||
Related Party Transaction [Line Items] | |||
Receivables (payables) from related parties | 2,253,000 | 2,854,000 | |
China Petroleum Corporation | |||
Related Party Transaction [Line Items] | |||
Dividends to China Petroleum Corporation | $ 0 | $ 0 | $ (7,000,000) |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions Footnotes (Details) - USD ($) | Oct. 17, 2017 | Aug. 15, 2017 | Nov. 30, 2019 | May 31, 2016 | Feb. 28, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||||||||
Management and administrative services agreement fee percentage | 5.00% | |||||||
Required notice for termination of management service agreement | 120 days | |||||||
Dividends to China Petroleum Corporation | $ 0 | $ 0 | $ 7,000,000 | |||||
Hilli LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Distributed earnings | $ 17,500,000 | 5,600,000 | ||||||
Golar Wilhelmsen Management AS | ||||||||
Related Party Transaction [Line Items] | ||||||||
Required notice for termination of management service agreement | 30 days | |||||||
Golar LNG Limited | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest income | 2,200,000 | |||||||
Quarterly distributions | $ 36,800,000 | $ 48,400,000 | $ 52,300,000 | |||||
Golar LNG Limited | Employee Stock Option | ||||||||
Related Party Transaction [Line Items] | ||||||||
Granted during the year | 29,950 | 45,000 | ||||||
Exercise price as of grant date (in dollars per share) | $ 23.50 | $ 56.70 | ||||||
Contractual term | 5 years | |||||||
Vesting period | 3 years | |||||||
Golar LNG Limited | Charter-hire Revenues Golar Grand | ||||||||
Related Party Transaction [Line Items] | ||||||||
Time charter revenues | $ 17,400,000 | |||||||
Golar LNG Limited | Interest Income on Short-term Loans | ||||||||
Related Party Transaction [Line Items] | ||||||||
Costs and Expenses, Related Party | $ 109,000 | 0 | $ 0 | |||||
Golar LNG Limited | Deposit Paid Excluding Tundra Letter Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest income | 2,400,000 | |||||||
Golar LNG Limited | Deposit Paid | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction fees | $ 70,000,000 | |||||||
Interest income | 0 | 4,779,000 | $ 4,622,000 | |||||
Interest rate, margin on LIBOR | 5.00% | |||||||
Golar LNG Limited | Unsecured Debt | ||||||||
Related Party Transaction [Line Items] | ||||||||
Proceeds from issuance of debt | $ 15,000,000 | |||||||
Golar LNG Limited | London Interbank Offered Rate (LIBOR) | Unsecured Debt | ||||||||
Related Party Transaction [Line Items] | ||||||||
Margin on LIBOR | 5.00% | |||||||
Golar LNG Limited | Golar Grand | ||||||||
Related Party Transaction [Line Items] | ||||||||
Time charter revenue, reduced hire rate | 75.00% | |||||||
Hilli LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Dividends Receivable | $ 4,500,000 | $ 3,600,000 | ||||||
Golar LNG Limited | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Transaction, Additional Annual Consideration, Percent of Deferred Purchase Price | 5.00% | |||||||
Golar LNG Limited | Related Party, Deposit Amount | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction fees | $ 107,200,000 | |||||||
Faraway Maritime Shipping Company | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of ownership | 60.00% | |||||||
China Petroleum Corporation | Faraway Maritime Shipping Company | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage by noncontrolling owners | 40.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | Jul. 12, 2018USD ($) | Sep. 05, 2015USD ($)quarterly_payment | Nov. 30, 2015USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Related Party Transaction [Line Items] | ||||||
Term of Charter | 5 years | |||||
Notional Amount | $ 637,200,000 | |||||
Covenant, net debt to EBITDA leverage ratio, maximum | 6.5 | |||||
Debt guarantee | $ 422,300,000 | 455,300,000 | ||||
PT Pesona | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related party | $ 500,000 | 900,000 | $ 500,000 | |||
PTGI | PT Pesona | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 51.00% | |||||
Golar, Keppel, and B&V | ||||||
Related Party Transaction [Line Items] | ||||||
Operating expense reimbursement percentage | 50.00% | |||||
Operating expense reimbursement, threshold | $ 32,400,000 | |||||
Operating expense reimbursement, withholding taxes | 50.00% | |||||
Operating expense reimbursement, withholding taxes, threshold | $ 4,200,000 | |||||
Operating expense reimbursement, maximum exposure, period | 8 years | |||||
Operating expense reimbursement, maximum | $ 20,000,000 | |||||
Hilli LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Business acquisition, percentage of interests acquired | 50.00% | 50.00% | ||||
Interest Rate Swap | ||||||
Related Party Transaction [Line Items] | ||||||
Notional Amount | $ 1,557,834,000 | 1,783,325,000 | ||||
Interest Rate Swap | Hilli LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Notional Amount | 480,000,000 | |||||
Hilli Facility | Hilli LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Long-term debt, term | 10 years | |||||
Face amount of debt instrument | $ 960,000,000 | |||||
Number of quarterly consecutive payments | quarterly_payment | 40 | |||||
Percentage of quarterly repayments of construction costs | 1.375% | |||||
Margin on LIBOR | 3.95% | |||||
Tunda Corp | Golar Tundra | ||||||
Related Party Transaction [Line Items] | ||||||
Purchase consideration | $ 254,600,000 | |||||
Golar, Keppel, and B&V | ||||||
Related Party Transaction [Line Items] | ||||||
Operating expense reimbursement, threshold | 39,500,000 | |||||
Operating expense reimbursement, withholding taxes, threshold | $ 5,200,000 | |||||
Operating expense reimbursement, maximum exposure, period | 8 years | |||||
Operating expense reimbursement, maximum | $ 20,000,000 | |||||
Hilli LLC | Golar, Keppel, and B&V | ||||||
Related Party Transaction [Line Items] | ||||||
Operating Expense Reimbursement, Amount | 2,200,000 | |||||
Ship Management Fees | PT Pesona | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses from transactions with related party | 200,000 | $ 200,000 | $ 200,000 | |||
Golar Hilli LLC | Fortune Lianjiang Shipping | ||||||
Related Party Transaction [Line Items] | ||||||
Covenants, free liquid assets | $ 30,000,000 | |||||
Covenant, net debt to EBITDA leverage ratio, maximum | 6.5 | |||||
Consolidated net worth requirement | $ 123,950,000 | |||||
Other Current Liabilities | ||||||
Related Party Transaction [Line Items] | ||||||
Guarantor obligations, fair value | 1,800,000 | |||||
Other Noncurrent Liabilities | ||||||
Related Party Transaction [Line Items] | ||||||
Guarantor obligations, fair value | $ 6,500,000 |
OTHER COMMITMENTS AND CONTING_3
OTHER COMMITMENTS AND CONTINGENCIES (Details) £ in Millions | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2015USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019vessel | Dec. 31, 2019tax_lease | Dec. 31, 2018USD ($)vessel | |
Loss Contingencies | ||||||
Debt instrument, collateral amount | $ 1,464,438,000 | $ 1,517,297,000 | ||||
Number of tax leases | 1 | 1 | 1 | |||
Accrued gain or loss on terminated contracts | 1,200,000 | $ 2,100,000 | ||||
Indonesia | NR Satu Related Claim | Foreign Tax Authority | ||||||
Loss Contingencies | ||||||
Range of exposure | $ 24,000,000 | |||||
Indonesia | Land And Building Tax Assessments | Foreign Tax Authority | ||||||
Loss Contingencies | ||||||
Loss contingency, estimate of possible loss | 3,500,000 | |||||
Minimum | ||||||
Loss Contingencies | ||||||
Range of exposure | 0 | |||||
Maximum | ||||||
Loss Contingencies | ||||||
Range of exposure | 32,000,000 | £ 24 | ||||
Vessels | ||||||
Loss Contingencies | ||||||
Debt instrument, collateral amount | 1,350,301,000 | 1,517,297,000 | ||||
Net Investment in Lease Vessel | ||||||
Loss Contingencies | ||||||
Debt instrument, collateral amount | $ 114,137,000 | $ 0 |
UNIT-BASED COMPENSATION (Detail
UNIT-BASED COMPENSATION (Details) - USD ($) | 12 Months Ended | 43 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of common units that may be delivered (in shares) | 500,000 | 500,000 | ||
Options, vested in period, fair value | $ 233,000 | $ 233,000 | $ 233,000 | |
Compensation cost recognized | 207,000 | 234,000 | $ 238,000 | |
Options outstanding, aggregate intrinsic value | 0 | $ 0 | $ 0 | |
Unrecognized compensation cost | $ 0 | $ 0 | ||
Golar Partners, Common Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share options granted (in shares) | 0 | 99,000 | ||
Exercise price as of grant date (in dollars per share) | $ 20.55 | |||
Golar Partners, Common Units | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Contractual term | 5 years | |||
Vesting November 18, 2017 | Golar Partners, Common Units | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Vesting November 18, 2018 | Golar Partners, Common Units | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Vesting November 18, 2019 | Golar Partners, Common Units | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% |
UNIT-BASED COMPENSATION - Sched
UNIT-BASED COMPENSATION - Schedule of Weighted Average Assumptions Used (Details) - Employee Stock Option | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free interest rate | 1.50% |
Expected volatility of common units | 44.80% |
Expected dividend yield | 0.00% |
Expected life of options (in years) | 5 years |
UNIT-BASED COMPENSATION - Activ
UNIT-BASED COMPENSATION - Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding (in shares) | 99 | |
Options outstanding (in shares) | 99 | 99 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Options exercisable (in shares) | 99 | 66 |
Options outstanding, weighted average exercise price, beginning balance (in dollars per share) | $ 16.10 | |
Options outstanding, weighted average exercise price, ending balance | $ 14.49 | $ 16.10 |
Weighted average remaining contractual term (years) | 1 year 10 months 24 days | 2 years 10 months 24 days |
EQUITY (Details)
EQUITY (Details) | 1 Months Ended | 12 Months Ended | 24 Months Ended | ||
Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2019USD ($)votedirectorshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of votes each outstanding common unit is entitled to | vote | 1 | ||||
Noncontrolling interest, voting right pro rata distribution threshold, percentage | 4.90% | ||||
Number of elected directors | director | 4 | ||||
Number of appointed directors | director | 3 | ||||
Maximum number of board of directors | director | 7 | ||||
Partners' Capital Account, Treasury Units, Purchased | $ 1,600,000 | $ 14,000,000 | |||
Common Units | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Partners' Capital Account, Treasury Units, Purchased | $ 25,000,000 | ||||
Authorized amount of share repurchase program | $ 50,000,000 | $ 50,000,000 | |||
Sale of stock, maximum gross offerings | $ 150,000,000 | ||||
Sale of stock, number of shares issued | shares | 763,644 | ||||
Sale of stock, price per share (in usd per share) | $ / shares | $ 23.08 | $ 23.08 | |||
Consideration received on sale of stock | $ 17,400,000 | ||||
Limited Partner | Common Units | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchase period (in years) | 2 years | ||||
Repurchase of units (in shares) | shares | 153,728 | 930,866 | |||
General Partner | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Sale of stock, number of shares issued | shares | 15,521 | ||||
Sale of stock, price per share (in usd per share) | $ / shares | $ 23.08 | $ 23.08 | |||
Consideration received on sale of stock | $ 400,000 | ||||
Public Ownership | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Ownership percentage by noncontrolling owners | 69.40% | 69.40% | 69.40% | ||
General Partners | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
General Partner ownership interest | 2.00% |
EQUITY - Schedule of Movement i
EQUITY - Schedule of Movement in Number of Common Units, Subordinated Units, and General Partner Units (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Limited Partners' Capital Account, Units Outstanding [Roll Forward] | |||
General Partners Units, beginning balance (in shares) | 1,436,391 | ||
General Partners Units, ending balance (in shares) | 1,436,391 | 1,436,391 | |
Limited Partner | Preferred Units | |||
Increase (Decrease) in Limited Partners' Capital Account, Units Outstanding [Roll Forward] | |||
Common and Subordinated Units, beginning balance (in shares) | 5,520,000 | 5,520,000 | |
Number of Units Issued | 5,520,000 | ||
Common and Subordinated Units, ending balance (in shares) | 5,520,000 | 5,520,000 | 5,520,000 |
Limited Partner | Common Units | |||
Increase (Decrease) in Limited Partners' Capital Account, Units Outstanding [Roll Forward] | |||
Common and Subordinated Units, beginning balance (in shares) | 69,455,364 | 69,768,261 | 64,073,291 |
Number of Units Issued | 5,175,000 | ||
Subordinated units converted into common units (in shares) | 374,295 | ||
Common unit repurchase program (in shares) | (153,728) | (930,866) | |
Common and Subordinated Units, ending balance (in shares) | 69,301,636 | 69,455,364 | 69,768,261 |
General Partner | |||
Increase (Decrease) in Limited Partners' Capital Account, Units Outstanding [Roll Forward] | |||
General Partners Units, beginning balance (in shares) | 1,436,391 | 1,423,843 | 1,318,517 |
Number of Units Issued | 94,714 | ||
Subordinated units converted into common units (in shares) | 7,639 | ||
General Partners Units, ending balance (in shares) | 1,436,391 | 1,436,391 | 1,423,843 |
Continuous Offering Program | Limited Partner | Common Units | |||
Increase (Decrease) in Limited Partners' Capital Account, Units Outstanding [Roll Forward] | |||
Number of Units Issued | 617,969 | 145,675 | |
Continuous Offering Program | General Partner | |||
Increase (Decrease) in Limited Partners' Capital Account, Units Outstanding [Roll Forward] | |||
Number of Units Issued | 12,548 | 2,973 |
EQUITY - Exchange Agreement (De
EQUITY - Exchange Agreement (Details) - USD ($) | Oct. 24, 2018 | Nov. 14, 2017 | Oct. 19, 2016 | Oct. 18, 2016 | Nov. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||||
Minimum quarterly distribution per unit (in dollars per share) | $ 0.5775 | $ 0.5775 | $ 0.5775 | $ 0.3850 | |||
Partnership Agreement, percent of Earn-Out Units to be issued | 50.00% | ||||||
Golar Partners, Common Units | |||||||
Class of Stock [Line Items] | |||||||
IDR reset (in shares) | 2,994,364 | ||||||
Number of earn-out units (in shares) | 748,592 | ||||||
Golar Partners, General Partner Units | |||||||
Class of Stock [Line Items] | |||||||
IDR reset (in shares) | 61,109 | ||||||
Number of earn-out units (in shares) | 15,278 | ||||||
Golar LNG Limited and Golar GP LLC | Incentive Distribution Rights | |||||||
Class of Stock [Line Items] | |||||||
Percent of units issued | 100.00% | ||||||
Golar GP LLC | Golar Partners, Common Units | |||||||
Class of Stock [Line Items] | |||||||
IDR reset (in shares) | 2,425,435 | ||||||
Golar GP LLC | Golar Partners, General Partner Units | |||||||
Class of Stock [Line Items] | |||||||
IDR reset (in shares) | 61,109 | ||||||
Golar LNG Limited | Golar Partners, Common Units | |||||||
Class of Stock [Line Items] | |||||||
IDR reset (in shares) | 568,929 | ||||||
Current Liabilities | |||||||
Class of Stock [Line Items] | |||||||
Reclassification of derivative | $ 15,000,000 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | |||||||
Class of Stock [Line Items] | |||||||
Reclassification of derivative | $ (15,000,000) | ||||||
Earn-Out Units | |||||||
Class of Stock [Line Items] | |||||||
Revised Partnership Agreement, percent of Earn-Out Units to be issued | 50.00% | ||||||
Mark-to-market valuation / Derivative liability | $ 0 | $ 7,400,000 | |||||
Earn-out units, value, transferred to equity | $ 8,000,000 | ||||||
General Partner | |||||||
Class of Stock [Line Items] | |||||||
General partners' capital account, units converted (in shares) | 7,639 | ||||||
Common Units | Limited Partner | |||||||
Class of Stock [Line Items] | |||||||
Limited partners' capital account, units converted (in shares) | 374,295 | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Distribution amount per share (in dollars per share) | $ 0.4042 |
EQUITY - Series A Preferred Uni
EQUITY - Series A Preferred Units (Details) - Preferred Partner - 8.75% Series A Cumulative Redeemable Preferred Units - USD ($) $ / shares in Units, $ in Millions | Feb. 15, 2018 | Oct. 31, 2017 | Dec. 31, 2019 |
Preferred Units [Line Items] | |||
Consideration received on sale of stock | $ 133 | ||
Preferred Units | |||
Preferred Units [Line Items] | |||
Preferred stock, dividend percentage | 8.75% | ||
Sale of stock, number of shares issued | 5,520,000 | ||
Sale of stock, price per share | $ 25 | ||
Preferred stock, dividend rate (in dollars per share) | $ 0.63802 | ||
Preferred stock, redemption price (in dollars per share) | $ 25 |
EARNINGS PER UNIT AND CASH DI_3
EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Unitholders’ interest in net income | $ 5,648 | $ 59,925 | $ 124,656 |
Less: distributions paid | (112,201) | (137,335) | (160,069) |
Over distributed earnings | $ (106,553) | (77,410) | (35,413) |
First distribution of additional available cash from operating surplus | After Subordination Period | |||
Earnings per unit: | |||
Distribution percentage to all unit holders | 98.00% | ||
General partner interest distribution percentage | 2.00% | ||
Distribution percentage to holders of Incentive distribution rights | 0.00% | ||
Quarterly distribution amount | $ 577.5000 | ||
Second distribution of additional available cash from operating surplus | First Target Quarterly Distribution | |||
Earnings per unit: | |||
Distribution percentage to all unit holders | 98.00% | ||
General partner interest distribution percentage | 2.00% | ||
Distribution percentage to holders of Incentive distribution rights | 0.00% | ||
Quarterly distribution amount | $ 0.6641 | ||
Third distribution of additional available cash from operating surplus | Second Target Quarterly Distribution | |||
Earnings per unit: | |||
Distribution percentage to all unit holders | 85.00% | ||
General partner interest distribution percentage | 2.00% | ||
Distribution percentage to holders of Incentive distribution rights | 13.00% | ||
Fourth distribution of additional available cash from operating surplus | Third Target Quarterly Distribution | |||
Earnings per unit: | |||
Distribution percentage to all unit holders | 75.00% | ||
General partner interest distribution percentage | 2.00% | ||
Distribution percentage to holders of Incentive distribution rights | 23.00% | ||
Thereafter | After Subordination Period | |||
Earnings per unit: | |||
Distribution percentage to all unit holders | 50.00% | ||
General partner interest distribution percentage | 2.00% | ||
Distribution percentage to holders of Incentive distribution rights | 48.00% | ||
Quarterly distribution amount | $ 0.8663 | ||
Common Units | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Unitholders’ interest in net income | $ 5,648 | $ 59,925 | $ 124,656 |
Basic: | |||
Weighted average units outstanding (in shares) | 69,397 | 69,944 | 68,671 |
Earnout units | |||
Diluted: | |||
Weighted average units outstanding (in shares) | 0 | 0 | 654 |
Common stock and common stock equivalents | |||
Diluted: | |||
Weighted average units outstanding (in shares) | 69,397 | 69,944 | 69,325 |
Common Units | |||
Earnings per unit: | |||
Basic - Common unitholders (in dollars per share) | $ 0.08 | $ 0.86 | $ 1.82 |
Diluted - Common unitholders (in dollars per share) | 0.08 | 0.86 | 1.80 |
Cash distributions declared and paid in the period per unit (in dollars per share) | 1.62 | 1.96 | 2.31 |
Subsequent event: Cash distributions declared and paid per unit relating to the period (in dollars per share) | 0.40 | $ 0.40 | $ 0.58 |
Minimum | Third distribution of additional available cash from operating surplus | Second Target Quarterly Distribution | |||
Earnings per unit: | |||
Quarterly distribution amount | 0.6641 | ||
Minimum | Fourth distribution of additional available cash from operating surplus | Third Target Quarterly Distribution | |||
Earnings per unit: | |||
Quarterly distribution amount | 0.7219 | ||
Maximum | Third distribution of additional available cash from operating surplus | Second Target Quarterly Distribution | |||
Earnings per unit: | |||
Quarterly distribution amount | 0.7219 | ||
Maximum | Fourth distribution of additional available cash from operating surplus | Third Target Quarterly Distribution | |||
Earnings per unit: | |||
Quarterly distribution amount | $ 0.8663 | ||
Public Ownership | |||
Earnings per unit: | |||
Ownership percentage by noncontrolling owners | 69.40% | 69.40% | |
General Partners | |||
Earnings per unit: | |||
General Partner ownership interest | 2.00% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Apr. 01, 2020 | Feb. 14, 2020 | Jan. 28, 2020 | Feb. 15, 2017 | Apr. 30, 2020 | Feb. 29, 2020 | May 31, 2015 | Dec. 31, 2019 |
Subsequent Event | ||||||||
Subsequent events: | ||||||||
Cash distributions paid (in dollars per share) | $ 0.4042 | |||||||
Preferred stock, dividends, per share, cash paid (in dollars per share) | $ 0.546875 | |||||||
Percentage of change in quarterly distributions | 95.00% | |||||||
Dividends, declared (in dollars per share) | $ 0.0202 | |||||||
8.75% Series A Cumulative Redeemable Preferred Units | Subsequent Event | ||||||||
Subsequent events: | ||||||||
Preferred stock, dividend percentage | 8.75% | |||||||
Sale of stock, authorized amount | $ 120,000,000 | |||||||
Extended Bonds | 2015 Norwegian Bonds | ||||||||
Subsequent events: | ||||||||
Margin on LIBOR | 4.40% | 4.40% | ||||||
Extended Bonds | 2017 Norwegian Bonds | ||||||||
Subsequent events: | ||||||||
Margin on LIBOR | 6.25% | 6.25% | ||||||
Extended Bonds | Subsequent Event | Norwegian Bond Amendments | ||||||||
Subsequent events: | ||||||||
Amendment fee percentage of par value | 0.50% | |||||||
Additional indebtedness required to be applied to original debt | $ 25,000,000 | |||||||
Covenant, maximum distribution payment (in dollars per unit) | $ 0.0808 | |||||||
Extended Bonds | Subsequent Event | 2015 Norwegian Bonds | ||||||||
Subsequent events: | ||||||||
Margin on LIBOR | 6.25% | |||||||
Debt instrument, extended term | 18 months | |||||||
Interest rate, increase (decrease) | 1.85% | |||||||
Extended Bonds | Subsequent Event | 2017 Norwegian Bonds | ||||||||
Subsequent events: | ||||||||
Margin on LIBOR | 8.10% | |||||||
Debt instrument, extended term | 18 months | |||||||
Interest rate, increase (decrease) | 1.85% | |||||||
Extended Bonds | Subsequent Event | Debt Instrument, Redemption, Period One | 2015 Norwegian Bonds | ||||||||
Subsequent events: | ||||||||
Periodic payment, interest | $ 5,000,000 | |||||||
Redemption price, percentage | 100.00% | |||||||
Extended Bonds | Subsequent Event | Debt Instrument, Redemption, Period One | 2017 Norwegian Bonds | ||||||||
Subsequent events: | ||||||||
Periodic payment, interest | $ 5,000,000 | |||||||
Redemption price, percentage | 100.00% | |||||||
Extended Bonds | Subsequent Event | Debt Instrument, Redemption, Period Two | 2015 Norwegian Bonds | ||||||||
Subsequent events: | ||||||||
Periodic payment, interest | $ 3,750,000 | |||||||
Redemption price, percentage | 100.00% | |||||||
Extended Bonds | Subsequent Event | Debt Instrument, Redemption, Period Two | 2017 Norwegian Bonds | ||||||||
Subsequent events: | ||||||||
Periodic payment, interest | $ 6,250,000 | |||||||
Redemption price, percentage | 100.00% | |||||||
Extended Bonds | Subsequent Event | Debt Instrument, Redemption, Period Three | 2015 Norwegian Bonds | ||||||||
Subsequent events: | ||||||||
Redemption price, percentage | 105.00% | |||||||
Extended Bonds | Subsequent Event | Debt Instrument, Redemption, Period Three | 2017 Norwegian Bonds | ||||||||
Subsequent events: | ||||||||
Periodic payment, interest | $ 10,000,000 | |||||||
Redemption price, percentage | 100.00% | |||||||
Extended Bonds | Subsequent Event | Debt Instrument, Redemption, Period Four | 2017 Norwegian Bonds | ||||||||
Subsequent events: | ||||||||
Redemption price, percentage | 105.00% | |||||||
Golar LNG Limited | Subsequent Event | ||||||||
Subsequent events: | ||||||||
Proceeds from notes payable | $ 25,000,000 | |||||||
Golar LNG Limited | London Interbank Offered Rate (LIBOR) | Subsequent Event | ||||||||
Subsequent events: | ||||||||
Margin on LIBOR | 5.00% |
Uncategorized Items - gmlp-2019
Label | Element | Value |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | $ 117,488,000 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 155,627,000 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 135,928,000 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | $ 141,114,000 |