Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Hoegh LNG Partners LP |
Entity Central Index Key | 0001603016 |
Current Fiscal Year End Date | --12-31 |
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 |
Trading Symbol | HMLP |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Common Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, number of units outstanding | 6,625,590 |
Preferred Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, number of units outstanding | 33,286,284 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES | |||
Time charter revenues | $ 145,321 | $ 144,952 | $ 143,531 |
Other revenue | 115 | 1,609 | 0 |
Total revenues | 145,436 | 146,561 | 143,531 |
OPERATING EXPENSES | |||
Vessel operating expenses | (30,870) | (24,195) | (23,791) |
Construction contract expenses | 0 | 0 | (151) |
Administrative expenses | (9,861) | (8,916) | (9,910) |
Depreciation and amortization | (21,477) | (21,146) | (21,054) |
Total operating expenses | (62,208) | (54,257) | (54,906) |
Equity in earnings (losses) of joint ventures | 6,078 | 17,938 | 5,139 |
Operating income (loss) | 89,306 | 110,242 | 93,764 |
FINANCIAL INCOME (EXPENSE), NET | |||
Interest income | 947 | 725 | 500 |
Interest expense | (27,692) | (26,814) | (30,085) |
Gain (loss) on debt extinguishment | 1,030 | 0 | 0 |
Gain (loss) on derivative instruments | 0 | 4,681 | 2,463 |
Other items, net | (3,575) | (2,907) | (3,574) |
Total financial income (expense), net | (29,290) | (24,315) | (30,696) |
Income (loss) before tax | 60,016 | 85,927 | 63,068 |
Income tax benefit (expense) | (7,275) | (8,305) | (3,878) |
Net income (loss) | 52,741 | 77,622 | 59,190 |
Non-controlling interest in net income | 0 | 0 | 10,408 |
Preferred unitholders' interest in net income | 13,850 | 12,303 | 2,480 |
Limited partners' interest in net income (loss) | 38,891 | 65,319 | 46,302 |
Common units public [Member] | |||
FINANCIAL INCOME (EXPENSE), NET | |||
Net income (loss) | $ 20,186 | $ 34,409 | $ 24,217 |
Earnings per unit | |||
Earnings Per Share, Basic and Diluted | $ 1.12 | $ 1.93 | $ 1.37 |
Common Units Hoegh LNG [Member] | |||
FINANCIAL INCOME (EXPENSE), NET | |||
Net income (loss) | $ 12,973 | $ 4,257 | $ 3,055 |
Earnings per unit | |||
Earnings Per Share, Basic and Diluted | $ 1.84 | $ 2.03 | $ 1.44 |
Subordinated Units Hoegh LNG [Member] | |||
FINANCIAL INCOME (EXPENSE), NET | |||
Net income (loss) | $ 5,732 | $ 26,653 | $ 19,030 |
Earnings per unit | |||
Earnings Per Share, Basic and Diluted | $ 0.70 | $ 2.03 | $ 1.45 |
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 (loss) | $ 52,741 | $ 77,622 | $ 59,190 |
Unrealized gains (losses) on cash flow hedge | (12,217) | (2,290) | 3,335 |
Income tax benefit (expense) | (389) | (299) | (347) |
Other comprehensive income (loss) | (12,606) | (2,589) | 2,988 |
Comprehensive income (loss) | 40,135 | 75,033 | 62,178 |
Non-controlling interest in comprehensive income | 0 | 0 | 10,794 |
Preferred unitholders' interest in net income | 13,850 | 12,303 | 2,480 |
Partners' interest in comprehensive income (loss) | $ 26,285 | $ 62,730 | $ 48,904 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 39,126 | $ 26,326 |
Restricted cash | 8,066 | 6,003 |
Trade receivables | 735 | 1,228 |
Amounts due from affiliates | 4,296 | 4,328 |
Inventory | 463 | 646 |
Current portion of net investment in direct financing lease | 4,551 | 4,168 |
Derivative instruments | 0 | 1,199 |
Prepaid expenses and other receivables | 2,534 | 2,967 |
Total current assets | 59,771 | 46,865 |
Long-term assets | ||
Restricted cash | 12,627 | 13,125 |
Accumulated earnings of joint ventures | 3,270 | 0 |
Advances to joint ventures | 3,831 | 3,536 |
Vessels, net of accumulated depreciation | 640,431 | 658,311 |
Other equipment | 256 | 445 |
Intangibles and goodwill | 17,108 | 20,739 |
Net investment in direct financing lease | 274,353 | 278,905 |
Long-term deferred tax asset | 217 | 174 |
Other long-term assets | 936 | 940 |
Total long-term assets | 953,029 | 976,175 |
Total assets | 1,012,800 | 1,023,040 |
Current liabilities | ||
Current portion of long-term debt | 44,660 | 45,458 |
Trade payables | 533 | 529 |
Amounts due to owners and affiliates | 2,513 | 2,301 |
Value added and withholding tax liability | 1,476 | 1,175 |
Derivative instruments | 2,907 | 259 |
Accrued liabilities and other payables | 11,164 | 7,458 |
Total current liabilities | 63,253 | 57,180 |
Long-term liabilities | ||
Accumulated losses of joint ventures | 0 | 2,808 |
Long-term debt | 412,301 | 390,087 |
Revolving credit facility due to owners and affiliates | 8,792 | 39,292 |
Derivative instruments | 12,028 | 2,438 |
Long-term tax liability | 2,283 | 1,725 |
Long-term deferred tax liability | 12,549 | 8,974 |
Other long-term liabilities | 84 | 99 |
Total long-term liabilities | 448,037 | 445,423 |
Total liabilities | 511,290 | 502,603 |
EQUITY | ||
Accumulated other comprehensive income (loss) | (17,943) | (5,337) |
Total partners' capital | 501,510 | 520,437 |
Total equity | 501,510 | 520,437 |
Total liabilities and equity | 1,012,800 | 1,023,040 |
8.75% Series A Preferred Units [Member] | ||
EQUITY | ||
Total partners' capital | 164,482 | 151,259 |
Total equity | 164,482 | 151,259 |
Common units public [Member] | ||
EQUITY | ||
Total partners' capital | 315,176 | 325,250 |
Total equity | 315,176 | 325,250 |
Common Units Hoegh LNG [Member] | ||
EQUITY | ||
Total partners' capital | 39,795 | 6,844 |
Total equity | 39,795 | 6,844 |
Subordinated Units Hoegh LNG [Member] | ||
EQUITY | ||
Total partners' capital | 0 | 42,421 |
Total equity | $ 0 | $ 42,421 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
8.75% Series A Preferred Units [Member] | ||
General Partners' Capital Account, Units Issued | 6,625,590 | 6,129,070 |
General Partners' Capital Account, Units Outstanding | 6,625,590 | 6,129,070 |
Common units public [Member] | ||
General Partners' Capital Account, Units Issued | 18,028,786 | 17,944,701 |
General Partners' Capital Account, Units Outstanding | 18,028,786 | 17,944,701 |
Common Units Hoegh LNG [Member] | ||
General Partners' Capital Account, Units Issued | 15,257,498 | 2,101,438 |
General Partners' Capital Account, Units Outstanding | 15,257,498 | 2,101,438 |
Subordinated Units Hoegh LNG [Member] | ||
General Partners' Capital Account, Units Issued | 0 | 13,156,060 |
General Partners' Capital Account, Units Outstanding | 0 | 13,156,060 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands | 8.75% Series A Preferred Units [Member] | Common units public [Member] | Common Units Hoegh LNG [Member] | Subordinated Units Hoegh LNG [Member] | AOCI Attributable to Parent [Member] | Non-controlling interest [Member] | Total |
Balance at Dec. 31, 2016 | $ 0 | $ 321,091 | $ 6,849 | $ 42,586 | $ (5,736) | $ 0 | $ 364,790 |
Non-controlling interest acquired from the purchase of the Hoegh Grace entities | 0 | 0 | 0 | 0 | 0 | 88,561 | 88,561 |
Net income | 2,480 | 24,217 | 3,055 | 19,030 | 0 | 10,408 | 59,190 |
Cash distributions to unitholders | 0 | (30,039) | (3,741) | (23,257) | 0 | 0 | (57,037) |
Cash distributions to non-controlling interest | 0 | 0 | 0 | 0 | 0 | (9,457) | (9,457) |
Cash contribution from Hoegh LNG | 0 | 0 | 315 | 1,760 | 0 | 0 | 2,075 |
Refund of indemnification received from Hoegh LNG | 0 | 0 | (213) | (1,321) | 0 | 0 | (1,534) |
Other comprehensive income | 0 | 0 | 0 | 0 | 2,602 | 386 | 2,988 |
Net proceeds from public offering and issuance of Series A preferred units | 110,924 | 0 | 0 | 0 | 0 | 0 | 110,924 |
Acquisition of non-controlling interest from the purchase of the Hoegh Grace entities | 0 | 0 | 0 | 0 | 0 | (89,898) | (89,898) |
Difference between net book value of acquired non-controlling interest and consideration paid | 0 | 1,528 | 183 | 1,139 | 386 | 0 | 3,236 |
Issuance of units for Board of Directors' fees | 0 | 189 | 0 | 0 | 0 | 0 | 189 |
Other and contributions from owners | 0 | 163 | 65 | 404 | 0 | 0 | 632 |
Balance at Dec. 31, 2017 | 113,404 | 317,149 | 6,513 | 40,341 | (2,748) | 0 | 474,659 |
Net income | 12,303 | 34,409 | 4,257 | 26,653 | 0 | 0 | 77,622 |
Cash distributions to unitholders | (13,107) | (31,211) | (3,881) | (24,298) | 0 | 0 | (72,497) |
Cash contribution from Hoegh LNG | 0 | 0 | 234 | 1,467 | 0 | 0 | 1,701 |
Refund of indemnification received from Hoegh LNG | 0 | 0 | (325) | (2,028) | 0 | 0 | (2,353) |
Other comprehensive income | 0 | 0 | 0 | 0 | (2,589) | 0 | (2,589) |
Net proceeds from issuance of common units | 0 | 4,563 | 0 | 0 | 0 | 0 | 4,563 |
Net proceeds from public offering and issuance of Series A preferred units | 38,659 | 0 | 0 | 0 | 0 | 0 | 38,659 |
Issuance of units for Board of Directors' fees | 0 | 200 | 0 | 0 | 0 | 0 | 200 |
Other and contributions from owners | 0 | 140 | 46 | 286 | 0 | 0 | 472 |
Balance at Dec. 31, 2018 | 151,259 | 325,250 | 6,844 | 42,421 | (5,337) | 0 | 520,437 |
Net income | 13,850 | 20,186 | 12,973 | 5,732 | 0 | 0 | 52,741 |
Cash distributions to unitholders | (13,692) | (31,663) | (10,051) | (18,398) | 0 | 0 | (73,804) |
Refund of indemnification received from Hoegh LNG | 0 | 0 | (9) | (55) | 0 | 0 | (64) |
Conversion of subordinated units to common units | 0 | 0 | 29,837 | (29,837) | 0 | 0 | 0 |
Other comprehensive income | 0 | 0 | 0 | 0 | (12,606) | 0 | (12,606) |
Net proceeds from issuance of common units | 0 | 1,029 | 0 | 0 | 0 | 0 | 1,029 |
Net proceeds from public offering and issuance of Series A preferred units | 13,065 | 0 | 0 | 0 | 0 | 0 | 13,065 |
Issuance of units for Board of Directors' fees | 0 | 194 | 0 | 0 | 0 | 0 | 194 |
Other and contributions from owners | 0 | 180 | 201 | 137 | 0 | 0 | 518 |
Balance at Dec. 31, 2019 | $ 164,482 | $ 315,176 | $ 39,795 | $ 0 | $ (17,943) | $ 0 | $ 501,510 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 52,741 | $ 77,622 | $ 59,190 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 21,477 | 21,146 | 21,054 |
Equity in (earnings) losses of joint ventures | (6,078) | (17,938) | (5,139) |
Changes in accrued interest income on advances to joint ventures | (295) | (273) | 3,955 |
Amortization of deferred debt issuance cost and fair value of debt assumed | 2,361 | 700 | 828 |
Amortization in revenue for above market contract | 3,631 | 3,631 | 3,631 |
Expenditure for drydocking | (3,107) | 0 | 0 |
Gain (loss) on debt extinguishment | (1,030) | 0 | 0 |
Changes in accrued interest expense | 2,246 | (605) | 218 |
Receipts from repayment of principal on direct financing lease | 4,168 | 0 | 0 |
Unrealized foreign exchange losses (gains) | 360 | 181 | 908 |
Gain (loss) on the settlement of the derivatives | (199) | 0 | 0 |
Proceeds from settlement of derivatives | 1,398 | 0 | 0 |
Unrealized loss (gain) on derivative instruments | 21 | (4,681) | (2,463) |
Non-cash revenue: tax paid directly by charterer | (867) | (852) | (861) |
Non-cash income tax expense: tax paid directly by charterer | 867 | 852 | 861 |
Deferred tax expense and provision for tax uncertainty | 3,707 | 5,272 | 1,614 |
Issuance of units for Board of Directors' fees | 194 | 200 | 189 |
Other adjustments | 512 | 472 | 632 |
Changes in working capital: | |||
Trade receivables | 543 | 6,344 | (1,035) |
Inventory | 183 | 22 | 29 |
Prepaid expenses and other receivables | (2,081) | (72) | 188 |
Trade payables | (10) | 155 | (804) |
Amounts due to owners and affiliates | 244 | 842 | (628) |
Value added and withholding tax liability | 2,827 | 4,257 | 4,519 |
Accrued liabilities and other payables | 1,439 | (5,594) | (6,939) |
Net cash provided by (used in) operating activities | 85,252 | 91,681 | 79,947 |
INVESTING ACTIVITIES | |||
Expenditure for purchase of Hoegh Grace entities | 0 | 0 | (137,475) |
Cash acquired in the purchase of the Hoegh Grace entities | 0 | 0 | 3,793 |
Decrease (increase) in restricted cash designated for purchase of the Hoegh Grace entities | 0 | 0 | 91,768 |
Expenditure for vessel and other equipment | (269) | (747) | (21) |
Receipts from repayment of principal on direct financing lease | 0 | 3,814 | 3,485 |
Net cash provided by (used in) investing activities | (269) | 3,067 | (38,450) |
FINANCING ACTIVITIES | |||
Proceeds from long term debt | 368,300 | 0 | 0 |
Proceeds from revolving credit facility due to owners and affiliates | 3,500 | 5,400 | 25,730 |
Repayment of long-term debt | (342,416) | (45,458) | (45,458) |
Payment of debt issuance costs | (5,797) | 0 | 0 |
Repayment of revolving credit facility due to owners and affiliates | (34,000) | (17,500) | (58,705) |
Repayment of customer loan for funding of value added liability on import | (438) | (4,993) | (5,878) |
Net proceeds from issuance of common units | 1,029 | 4,563 | 0 |
Net proceeds from issuance of Series A preferred units | 13,065 | 38,659 | 110,924 |
Cash distributions to limited partners and preferred unitholders | (73,804) | (72,497) | (57,037) |
Cash distributions to non-controlling interest | 0 | 0 | (9,457) |
Proceeds from indemnifications received from Hoegh LNG | 0 | 1,701 | 2,075 |
Repayment of indemnifications received from Hoegh LNG | (64) | (2,353) | (1,534) |
Net cash provided by (used in) financing activities | (70,625) | (92,478) | (39,340) |
Increase (decrease) in cash, cash equivalents and restricted cash | 14,358 | 2,270 | 2,157 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 7 | (97) | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 45,454 | 43,281 | 41,124 |
Cash, cash equivalents and restricted cash, end of period | $ 59,819 | $ 45,454 | $ 43,281 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 39,126 | $ 26,326 | $ 22,679 | $ 18,915 |
Restricted cash - current asset | 8,066 | 6,003 | 6,962 | 8,055 |
Restricted cash - non-current asset | 12,627 | 13,125 | 13,640 | 14,154 |
Total cash, cash equivalents and restricted cash | $ 59,819 | $ 45,454 | $ 43,281 | $ 41,124 |
Description of business
Description of business | 12 Months Ended |
Dec. 31, 2019 | |
Description of business | |
Description of business | 1. Description of business Höegh LNG Partners LP (the “Partnership”) was formed under the laws of the Marshall Islands on April 28, 2014 as an indirect 100% owned subsidiary of Höegh LNG Holdings Ltd. (“Höegh LNG”) for the purpose of acquiring Höegh LNG’s interests in Hoegh LNG Lampung Pte. Ltd., PT Hoegh LNG Lampung (the owner of the PGN FSRU Lampung ), SRV Joint Gas Ltd. (the owner of the Neptune ), and SRV Joint Gas Two Ltd. (the owner of the Cape Ann ) in connection with the Partnership’s initial public offering of its common units (the “IPO”) in August 2014. On August 12, 2014, the Partnership completed its IPO. Prior to the closing of the IPO, Höegh LNG contributed to the Partnership all of its equity interests and loans and promissory notes due to it and affiliates in each of the entities owning the Neptune , the Cape Ann and the PGN FSRU Lampung . The transfer of the interests was recorded at Höegh LNG’s consolidated book values. At the closing of the IPO (including the exercise by the underwriters of the option to purchase an additional 1,440,000 common units), (i) 11,040,000 common units were sold to the public for net proceeds, after deduction of offering expenses, of $203.5 million; (ii) Höegh LNG owned 2,116,060 common units and 13,156,060 subordinated units, representing approximately 58% of the limited partner interests in the Partnership, and 100% of the incentive distribution rights (“IDRs”) and (iii) a wholly owned subsidiary of Höegh LNG owned the non-economic general partner interest in the Partnership. Under the partnership agreement, the general partner has irrevocably delegated to the Partnership’s board of directors the power to oversee and direct the operations of, manage and determine the strategies and policies of the Partnership. Four of the seven board members were elected by the common unitholders at the Partnership’s first annual meeting of unitholders held on September 24, 2014. As a result, Höegh LNG, as the owner of the general partner, does not have the power to control the Partnership’s board of directors or the Partnership, and the Partnership is not considered to be under the control of Höegh LNG for United States generally accepted accounting principles (“US GAAP”) purposes. Therefore, the sale of a business from Höegh LNG to the Partnership is a change of control. As a result, the Partnership accounts for acquisitions of businesses under the purchase method of accounting and not as transfers of entities under common control. On October 1, 2015, the Partnership closed the acquisition of 100% of the shares in Höegh LNG FSRU III Ltd., the entity that indirectly owned the floating storage and regasification unit (“FSRU”) the Höegh Gallant (the “ Höegh Gallant entities”). The Höegh Gallant was constructed by Hyundai Heavy Industries Co., Ltd. (“HHI”) and was delivered to Höegh LNG in November 2014. In December 2016, the Partnership issued and sold 6,588,389 common units in an underwritten public offering for net proceeds of $111.5 million primarily to fund the purchase price of the acquisition of a 51% ownership interest in Höegh LNG Colombia Holding Ltd., the owner of the entities that own and operate the FSRU Höegh Grace (the “ Höegh Grace entities”) , in January 2017. Refer to note 3. On January 3, 2017, the Partnership closed the acquisition of a 51% ownership interest in Höegh Colombia Holding Ltd. On January 1, 2017, the Partnership entered an agreement with Höegh LNG, under which Höegh LNG granted to the Partnership the authority to make decisions about operations of Höegh LNG Colombia Holding Ltd. from January 1, 2017 to the closing date of the acquisition. As a result, the Partnership has recorded the results of operations of the Höegh Grace entities in its consolidated statement of income from January 1, 2017. Refer to note 3. On October 5, 2017, the Partnership issued 4,600,000 8.75% Series A cumulative redeemable preferred units (the “Series A preferred units”) for proceeds, net of underwriting discounts and expenses, of $110.9 million. Refer to note 20. A portion of the net proceeds was used to repay outstanding debt under the seller’s credit note related to the Höegh Gallant acquisition and outstanding debt under the revolving credit facility. On December 1, 2017, the Partnership closed the acquisition of the remaining 49% ownership interest in the Höegh Grace entities with a combination of cash remaining from the net proceeds from the issuance of Series A preferred units and draws on the revolving credit facility. Refer to note 3. On January 26, 2018, the Partnership entered into sales agreement with B. Riley FBR Inc. (the “Agent”). Under the terms of the sales agreement, the Partnership could offer and sell up to $120 million aggregate offering amount of common units and Series A preferred units through the Agent, acting as agent for the Partnership (the “Prior ATM Program”). On October 18, 2019, the Partnership entered into a sales agreement with the Agent for a new ATM program and terminated the Prior ATM Program. Under the terms of the new sales agreement, the Partnership may offer and sell up to $120 million aggregate offering amount of common units and Series A preferred units, from time to time, through the Agent, acting as an agent for the Partnership. Sales of such units may be made in negotiated transactions that are deemed to be “at the market” offerings, including sales made directly on the New York Stock Exchange or through a market maker other than on an exchange. The interests in SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., collectively, are referred to as the “joint ventures” and the remaining entities owned by the Partnership, as reflected in the table below are, collectively, referred to as the “subsidiaries” in these consolidated financial statements. The PGN FSRU Lampung , the Höegh Gallant , the Höegh Grace , the Neptune and the Cape Ann are FSRUs and, collectively, referred to in these consolidated financial statements as the vessels or the “FSRUs.” The Tower Yoke Mooring System (the “Mooring”) is an offshore installation that is used to moor the PGN FSRU Lampung to offload the gas into an offshore pipe that transports the gas to a land terminal. PT Hoegh LNG Lampung, Hoegh LNG Cyprus Limited, the owner of the Höegh Gallant , Höegh LNG FSRU IV Ltd., the owner of the Höegh Grace , and the two joint ventures, SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., are collectively referred to as the “FSRU-owning entities.” The Neptune and the Cape Ann operate under long-term time charters with expiration dates in 2029 and 2030, respectively, and, in each case, with an option for the charterer, Global LNG Supply SA, as novated to Total Gas & Power Ltd. in February 2020, both subsidiaries of Total S.A. (“Total”), to extend for up to one additional period of ten years or two additional periods of five years each. The PGN FSRU Lampung , operates under a long term time charter which started in July 2014 with an expiration date in 2034, with an option for the charterer to extend for up to two additional periods of five years each, and uses the Mooring that was constructed, installed and sold to the charterer, PT PGN LNG Indonesia (“PGN LNG”), a subsidiary of PT Perusahaan Gas Negara (Persero) Tbk (“PGN”), a subsidiary of PT Pertamina, a government-controlled, Indonesian oil and gas producer, natural gas transportation and distribution company. The Höegh Gallant operates under a long term time charter which started in April 2015 with an expiration date in April 2020 with Hoegh LNG Egypt LLC (“EgyptCo”), a subsidiary of Höegh LNG. EgyptCo had a charter with the government-owned Egyptian Natural Gas Holding Company (“EGAS”) until October 2018. EgyptCo has an LNG carrier time charter to a third party from October 2018 until April 2020. Pursuant to an option agreement, the Partnership exercised, on February 27, 2020, its right to cause Höegh LNG to charter the Höegh Gallant from the expiration of the EgyptCo charter until July 2025. The Höegh Grace operates under a long term time charter which started in December 2016 with Sociedad Portuaria El Cayao S.A. E.S.P. (“SPEC”). SPEC is owned 51% by Promigas S.A. ESP, a Colombian company focused on the transportation and distribution of natural gas, and 49% by private equity investors. The non-cancellable charter period of 10 years ends in December 2026. The initial term of the charter is 20 years. However, each party has an unconditional option to cancel the charter after 10 and 15 years without penalty. However, if SPEC waives its rights to terminate in year 10 within a certain deadline, the Partnership will not be able to exercise its right to terminate in year 10. The following table lists the entities included in these consolidated financial statements and their purpose as of December 31, 2019. Jurisdiction of Incorporation Name or Registration Purpose Höegh LNG Partners LP Marshall Islands Holding Company Höegh LNG Partners Operating LLC (100% owned) (4) Marshall Islands Holding Company Hoegh LNG Services Ltd (100% owned) United Kingdom Administration Services Company Hoegh LNG Lampung Pte. Ltd. (100% owned) Singapore Owns 49% of PT Hoegh LNG Lampung PT Hoegh LNG Lampung (49% owned) (1) Indonesia Owns PGN FSRU Lampung SRV Joint Gas Ltd. (50% owned) (2) Cayman Islands Owns Neptune SRV Joint Gas Two Ltd. (50% owned) (2) Cayman Islands Owns Cape Ann Höegh LNG FSRU III Ltd. (100% owned) (4) Cayman Islands Holding Company Hoegh LNG Cyprus Limited (100% owned) Cyprus Owns Höegh Gallant Hoegh LNG Cyprus Limited Egypt Branch (100% owned) Egypt Branch of Hoegh LNG Cyprus Limited Höegh LNG Colombia Holding Ltd. (100% owned) (3) Cayman Islands Owns 100% of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S. Höegh LNG FSRU IV Ltd. (100% indirectly owned) (3) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (100% indirectly owned) (3) Colombia Operating Company (1) PT Hoegh LNG Lampung is a variable interest entity, which is controlled by Hoegh LNG Lampung Pte. Ltd. and is, therefore, 100% consolidated in the consolidated financial statements. (2) The remaining 50% interest in each joint venture is owned by Mitsui O.S.K. Lines, Ltd. and Tokyo LNG Tanker Co. (3) The 51% of the ownership interests were acquired on January 3, 2017, and the remaining 49% of the ownership interests were acquired on December 1, 2017. (4) On January 31, 2019, Höegh LNG FSRU III Ltd. transferred its ownership in Hoegh LNG Cyprus Limited to Höegh LNG Partners Operating LLC. On February 14, 2020, the Certificate of Dissolution was received, certifying that Höegh LNG FSRU III Ltd. will be dissolved on May 4, 2020. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies | |
Significant accounting policies | 2. Significant accounting policies Basis of presentation The consolidated financial statements are prepared in accordance with US GAAP. All intercompany balances and transactions are eliminated. It has been determined that PT Hoegh LNG Lampung, Hoegh LNG Cyprus Limited , Höegh LNG Colombia Holding Ltd., SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. are variable interest entities. A variable interest entity (“VIE”) is defined by US GAAP as a legal entity where either (a) the voting rights of some investors are not proportional to their rights to receive the expected residual returns of the entity, their obligations to absorb the expected losses 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, 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) 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. The guidance requires a VIE to be consolidated if any of its interest holders are entitled to a majority of the entity’s residual returns or are exposed to a majority of its expected losses. Based upon the criteria set forth in US GAAP, the Partnership has determined that PT Hoegh LNG Lampung is a VIE, as the equity holders, through their equity investments, may not participate fully in the entity’s expected residual returns and substantially all of the entity’s activities either involve, or are conducted on behalf of, the Partnership. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of PT Hoegh LNG Lampung are included in the consolidated financial statements. Dividends may only be paid if the retained earnings are positive and a statutory reserve has been established equal to 20% of its paid up capital under Indonesian law. PT Hoegh LNG Lampung had not established the required statutory reserves as of December 31, 2019 and 2018. Therefore, PT Hoegh LNG Lampung cannot make dividend payments under Indonesian law. Under the Lampung facility, there are limitations on cash dividends and loans that can be made to the Partnership. Refer to note 13. As of December 31, 2019 and 2018, restricted net assets of the consolidated subsidiaries were $169.8 million and $164.4 million, respectively. The Partnership has determined that Hoegh LNG Cyprus Limited is a VIE, as the equity investment does not provide sufficient equity to permit the entity to finance its activities without financial guarantees. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of Hoegh LNG Cyprus Limited are included in the consolidated financial statements. Under Cyprus law, dividends may only be distributed out of profits and not from the share capital of the company. As of December 31, 2019 and 2018, restricted net assets of the consolidated subsidiaries were $0.0 million and $4.6 million, respectively. The Partnership has also determined that Höegh LNG Colombia Holding Ltd. is a VIE since the entity would not be able to finance its activities without financial guarantees under its subsidiary’s facility to finance Höegh Grace . As of January 1, 2017, the Partnership became the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives the majority of the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of Höegh LNG Colombia Holding Ltd., and subsidiaries, are included in the consolidated financial statements with a non-controlling interest reflected for the minority share until December 1, 2017. On December 1, 2017, the Partnership acquired the remaining 49% ownership interest in the Höegh Grace entities and, as of that date, there was no longer a non-controlling interest in the Höegh Grace entities. Under Cayman Islands law, dividends may only be paid out of profits or capital reserves if the entity is solvent after the distributions. As of December 31, 2019 and 2018, restricted net assets of the consolidated subsidiaries were $0.0 million and $0.2 million, respectively. Dividends and other distributions from Hoegh LNG Cyprus Limited , Höegh LNG Colombia Holding Ltd. and Höegh LNG FSRU IV Ltd. may only be distributed if after the dividend payment, the Partnership would remain in compliance with the financial covenants under the $385 million facility. Refer to note 13. In addition, the Partnership has determined that the two joint ventures, SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., are VIEs since each entity did not have a sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support. The entities have been financed with third party debt and subordinated shareholders loans. The Partnership is not the primary beneficiary, as the Partnership cannot make key operating decisions considered to be most significant to the VIEs, but has joint control with the other equity holders. Therefore, the joint ventures are accounted for under the equity method of accounting as the Partnership has significant influence. The Partnership’s carrying value is recorded in advances to joint ventures and accumulated earnings (losses) of joint ventures in the consolidated balance sheets. For SRV Joint Gas Ltd., the Partnership had a receivable for the advances of $3.0 million and $2.8 million as of December 31, 2019 and 2018, respectively. The Partnership’s accumulated earnings, or its share of net assets, was $2.6 million as of December 31, 2019 and the Partnership’s accumulated losses, or its share of net liabilities, was $0.8 million as of December 31, 2018. The Partnership’s carrying value for SRV Joint Gas Two Ltd. consists of a receivable for the advances of $0.8 million and $0.7 million as of December 31, 2019 and 2018, respectively. The Partnership’s accumulated earnings, or its share of net assets, was $0.7 million as of December 31, 2019 and the Partnership’s accumulated losses, or its share of net liabilities, was $2.0 million as of December 31, 2018. The major reasons that the Partnership had low accumulated earnings in the joint ventures as of December 31, 2019 and accumulated losses in the joint ventures as of December 31, 2018 was due to the fair value adjustments for the interest rate swaps recorded as liabilities on the balance sheets of SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. and eliminations for consolidation to the balance sheet. The maximum exposure to loss is the carrying value of the receivables, which is subordinated to the joint ventures’ long-term bank debt, the investments in the joint ventures (accumulated earnings or losses), as the shares are pledged as security for the joint ventures’ long-term bank debt, and Höegh LNG’s commitment under long-term bank loan agreements to fund its share of drydocking costs and remarketing efforts in the event of an early termination of the charters. If the charters terminate for any reason that does not result in a termination fee, the joint ventures’ long-term bank debt would be subject to mandatory repayment. Dividend distributions require a) agreement of the other joint venture owners; b) fulfilment of requirements of the long-term bank loans; c) and under Cayman Islands law may be paid out of profits or capital reserves subject to the joint venture being solvent after the distribution. Significant accounting policies Foreign currencies The reporting currency in the consolidated financial statements is the U.S. dollar, which is the functional currency of the FSRU-owning entities. Nearly all revenues are received in U.S. dollars and a majority of the Partnership’s expenditures for investments and all of the long-term debt are denominated in U.S. dollars. Transactions denominated in other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the time of the transactions. Monetary assets and liabilities that are denominated in currencies other than the U.S. dollar are translated at the exchange rates in effect at the balance sheet date. Resulting gains or losses are reflected in the accompanying consolidated statements of income. Business combinations and asset acquisitions Business combinations are accounted for under the purchase method of accounting. Under this method, the purchase price is allocated to identifiable assets acquired and liabilities assumed based on their fair values as of the acquisition date. Any excess of the purchase price over the fair values of net assets is recognized as goodwill. Acquisition related costs are expensed as incurred. The results of entity acquired are included in the consolidated financial statements from the date of acquisition. Dependent upon facts and circumstances, the assessment of a transaction may be considered the acquisition of an asset, when substantially all of the fair value of assets acquired is concentrated in a single identifiable asset, rather than a business combination. Asset acquisitions are accounted for by allocating the cost of the acquisition to the individual assets acquired and liabilities assumed on a relative fair value basis. Acquisition related costs are capitalized as a component of the cost of the assets acquired. Time charter revenue, related contract balances and related expenses Time charter revenues and related contract balances : The Partnership is required to evaluate whether two or more contracts should be combined and accounted for as a single contract, whether the contract promises to deliver more than one distinct good or service, or performance obligations, and/or a lease, determine the transaction price under the contract, allocate the transaction price to the lease and the performance obligations and recognize revenue as the performance obligation is satisfied. The Partnership believes the nature of its time charter contracts are the same, regardless of whether the contracts are accounted for as financing leases or operating leases for accounting purposes. As such, when adopting the revised guidance on leases as of January 1, 2019, the Partnership did not elect to apply the practical expedient to not separate lease and services components for operating leases because this would result in inconsistent disclosure for the time charter contracts. Performance obligations : The Partnership determined that its time charter contracts contain a lease and a performance obligation for the provision of time charter services. The lease of the vessel, representing the use of the vessel without any associated performance obligations or warranties, is accounted for in accordance with the provisions of Accounting Standards Codification ("ASC") 842; Leases . The provision of time charter services, including guarantees for the level of performance provided by the time charter contracts, is considered a distinct service and is accounted for in accordance with the provision of ASC 606, Revenue from Contracts with Customers. The Partnership determined that the nature of the time charter services promised, represents a single performance obligation, to stand ready over a 24‑hour interval to accept LNG cargos, to transport cargos, to regasify the LNG and discharge the resulting gas into a pipeline in accordance with the charterer’s instructions and requirements. Time charter services revenue can be recognized as the performance obligation is satisfied over the 24‑hour interval to the performance standards specified under the time charter contract. If the performance standards are not met, off-hire, reduced hire, liquidated damages or other performance payments may result. Contract terms, determination of transaction price and allocation to performance obligations : The Partnership’s time charter contracts for all FSRUs, except the Höegh Gallant , include day rates or hire rates and warranty provisions with the following components: · Fixed element : The fixed element is a fixed per day fee intended to cover remuneration for use of the vessel and the provision of time charter services. · Operating expense reimbursement element : The operating expense reimbursement element is a rate per day intended to cover the operating costs of the vessel, including the crew, insurance, consumables, miscellaneous services, spares and maintenance and repairs costs and management services and fees. The amount of the operating expense reimbursement element may be based on actual cost incurred, or fees subject to indexing or other adjustments after a defined period, or a combination of both. · Tax reimbursement element : The tax reimbursement element may be a rate per day, based on the estimated liability for the year divided by the number of days in the year, subject to adjustment for actual taxes incurred, or a reimbursement of the costs as the taxes are incurred. The tax reimbursement element may cover withholding taxes, payroll taxes, other local taxes and current income tax expense for the jurisdiction in which the vessel operates as defined by the provisions of the individual time charter contract. · Performance warranties element : The performance warranties element includes defined operational capacity and standards that can result in the FSRUs being off-hire or require compensation to the charterer through provision of reduced hire, liquidated damages or performance payments. Examples of performance warranties include the ability to discharge regasified LNG at specified performance rates, guaranteed minimum fuel consumption, guaranteed minimum boil-off rates and the ability to accept cargos. The Höegh Gallant has a single day rate intended to cover all of the elements listed above. In addition, the time charter contract for the Höegh Gallant includes a provision for 15 days of off-hire for scheduled maintenance. The joint ventures’ time charter contracts also provide for upfront payments for variable costs for certain vessel modifications, drydocking costs, other additions to equipment or spare parts. The hire rates for the PGN FSRU Lampung and the joint ventures are invoiced at the beginning of the month. The Höegh Gallant and the Höegh Grace invoice time charter revenues monthly in arrears. The transaction price is estimated as the standalone selling price for the lease and the time charter services components of the fixed day rate element. Variable consideration per day for operating expense and tax reimbursements is estimated at the most likely amount to which the Partnership is expected to be entitled to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty related to the variable consideration is resolved. When there is significant uncertainty related to that amount of variable consideration to be received, that variable consideration is considered constrained. Typically, variable reimbursements and performance warranties are known at the end of each 24‑hour interval, or as subsequently reassessed at the end of the reporting period. However, to the extent interpretations of contractual provisions are complex and/or disputed with the customer, this could give rise to constrained variable consideration. Constrained variable consideration is not estimated. Variable consideration is allocated entirely to one performance obligation when the variable day rate relates specifically to the efforts to satisfy the single performance obligation. The default method of the relative standalone selling price method was used to allocate the remaining transaction price, principally the fixed element, between the lease and the time charter services. The total estimated transaction price for time charter services is considered variable consideration because it may be reduced by performance warranties. The Partnership has made a policy election to exclude from the measurement of the transaction price all taxes assessed by a government entity on revenues and collected on behalf of that government entity from customers, such as sales or value added taxes. Lease revenue recognition : Leases are classified based upon defined criteria either as sale-type/direct financing leases (“financing leases”) or operating leases. A lease that transfers substantially all of the benefits and risks of the FSRU to the charterer is accounted for as a financing lease by the lessor. All other leases that do not meet the criteria are classified as operating leases. On January 1, 2019, when adopting the revised leasing guidance, the Partnership elected the package of practical expedients and did not reassess conclusions under the previous standard about whether any existing contracts are, or contain leases, lease classification, and initial direct costs for any existing leases. Accordingly, outstanding leases on January 1, 2019, continue to be classified in accordance with the prior lease guidance. The lease component of time charters that are accounted for as operating leases is recognized on a straight line basis over the term of the charter. The Höegh Gallant’s time charter, which had a five-year lease term at inception, is accounted for as an operating lease. The Höegh Grace’s time charter contracts, which have a non-cancellable charter period of ten years, are accounted for as an operating lease. Under one of the time charter contracts, the contract provides for additional variable payments, including a finance component, over the initial term depending upon the actual commencement date of the contract within a defined window of potential commencement dates. The variable payments are considered directly related to the lease performance obligation. The revenue, excluding the financing component, is recognized over the initial 10-year term. Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for final income tax directly related to the provision of the lease is recorded as a component of lease revenues. The amount of non-cash revenue is disclosed separately in the consolidated statement of cash flows. The lease component of time charters that are accounted for as financing leases is recognized over the lease term using the effective interest rate method and is included in time charter revenues. Origination costs related to the time charter are a component of the net investment in financing lease and amortized over the lease term using the effective interest method. Financing leases are reflected on the consolidated balance sheets as net investments in financing leases. The PGN FSRU Lampung time charter, which had a 20‑year lease term at inception, meets the criteria of transferring substantially all of the benefits and risks to the charterer and is accounted for as a financing lease. Time charter services revenue recognition : Variable consideration for the time charter services performance obligation, including amounts allocated to time charter services, estimated reimbursements for vessel operating expenses and estimated reimbursements of certain types of costs and taxes, are recognized as revenues as the performance obligation for the 24‑hour interval is fulfilled, subject to adjustment for off-hire and performance warranties. Constrained variable consideration is recognized as revenue on a cumulative catch-up basis when the significant uncertainty related to that amount of variable consideration to be received is resolved. Estimates for variable consideration, including constrained variable consideration, are reassessed at the end of each period. Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes directly related to the provision of the time charter services are recorded as a component of time charter service revenues. The amount of non-cash revenue is disclosed separately in the consolidated statement of cash flows. Joint venture FSRUs lease and time charter services revenue recognition : The Partnership’s interest in the Joint venture FSRUs’ net income is included in the consolidated financial statements under the equity method of accounting, however, the Joint venture FSRUs’ results are presented under the proportional consolidation method for the segment note (note 4) and the time charter revenue note (note 5). The Neptune’s and the Cape Ann’s time charters, which had a twenty-year lease term at inception, are accounted for as operating leases. The joint ventures’ time charters include provisions for the charterer to make upfront payments to compensate for variable cost for certain vessel modifications, drydocking costs, other additions to equipment or spare parts. The expenditures are considered costs required to fulfill the lease component of the contract. Payments for modifications are deferred and amortized over the shorter of the remaining charter period or the useful life of the additions. Payments for reimbursement of drydocking costs are deferred and recognized on a straight line basis over the period to the next drydocking. The accounting policy for time charter services for the joint ventures is the same as described above. Significant judgments in revenue recognition : The Partnership does not provide stand-alone bareboat leases or time charter services for FSRUs. As a result, observable stand-alone transaction prices for the performance obligations are not available. The estimation of the transaction price for the lease and the time charter service performance obligation is complex, subject to a number of input factors, such as market conditions when the contract is entered into, internal return objectives and pricing policies, and requires substantial judgment. Significant changes in the transaction price between the two performance obligations could impact conclusions on the accounting for leases as financing or operating leases. In addition, variable consideration is estimated at the most likely amount that the Partnership expects to be entitled to. Variable consideration is reassessed at the end of the reporting period taking into account performance warranties. The time charter contracts include provisions for performance guarantees that can result in off-hire, reduced hire, liquidated damages or other payments for performance warranties. Measurement of some of the performance warranties can be complex and require properly calibrated equipment on the vessel, complex conversions and computations based on substantial judgment in the interpretation of the contractual provisions. Conclusions on compliance with performance warranties impact the amount of variable consideration recognized for time charter services. Contract assets: Revenue recognized in excess of the monthly invoiced amounts, or accrued revenue, is recorded as contract assets on the consolidated balance sheet. The contract assets are reported in the consolidated balance sheet as a component of prepaid expenses and other receivables. Contract liabilities: Advance payments in excess of revenue recognized, or prepayments, and deferred revenue is recorded as contract liabilities on the consolidated balance sheet. Contract assets and liabilities are reported in a net position for each customer contract or combined contracts at the end of each reporting period. Contract liabilities are classified as current or non-current based on the expected timing of recognition of the revenue. Current and non-current contract liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables and other long-term liabilities, respectively. Refund liabilities: Amounts invoiced or paid by the customer that are expected to be refunded to the customer are recorded as refund liabilities on the consolidated balance sheet. Refund liabilities may include invoiced amounts for estimated reimbursable operating expenses or other costs and taxes that exceeded the actual costs incurred, or off-hire, reduced hire, liquidated damages, or other payments for performance warranties. Refund liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables. Remaining performance obligations : Remaining performance obligations represent the transaction price of contracts with customers under the scope of ASC 606 for which work has not been performed excluding unexercised contract options to extend the term. The Partnership qualifies for and has elected to apply the exemption to disclose the aggregate amount of remaining transaction price allocated to unsatisfied performance obligations at the end of the reporting period as consideration for time charter services is variable and allocated entirely to wholly satisfied performance obligations. Related expenses : Voyage expenses include bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls and agency fees. Voyage expenses are all expenses unique to a particular voyage and when a vessel is on hire under time charters are generally the responsibility of, and paid directly by the charterers, and not included in the statement of income. When the vessel is off-hire, voyage expenses, principally fuel, may also be incurred and are paid by the FSRU-owning entity. Vessel operating expenses, reflected in expenses in the statement of income, include crewing, repairs and maintenance, insurance, stores, lube oils, communication expenses and management fees. Vessel operating expenses also include bunker fuel expenses when the vessel is on hire and the expenses are not directly paid and owed by the charterers. When the vessel is on hire, vessel operating expenses are invoiced as time charter service fees to the charterer or are covered by time charter rates. When the vessel is off-hire, vessel operating expenses are not invoiced to the charterer. Voyage expenses, if applicable, and vessel operating expenses are expensed when incurred. Construction contract expenses Construction contract expenses include direct costs on contracts, including project management, labor and materials, amounts payable to subcontractors and capitalized interest. Loss contingencies, insurance and other claims Accruals are recorded for loss contingencies or claims when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. Significant judgment is required to determine the probability and the estimated amount of loss. Such assessments involve complex judgments about future events and estimates and assumptions that are deemed reasonable by management. Accruals are reviewed quarterly and adjusted to reflect the impact of additional information such as the impact of negotiations, advice of legal counsel or settlements. Insurance claims for property damage are recorded, net of any deductible amounts, for recoveries up to the amount of loss recognized when the claims to insurance carriers are probable of recovery. Claims for property damage in excess of the loss recognized and for loss of revenue during off-hire, whether from insurance providers or indemnification from Höegh LNG, are considered gain contingencies, which are recognized when the proceeds are received. Indemnification proceeds from Höegh LNG that cover the Partnership’s costs are accounted for following the guidance of the Securities and Exchange Commission’s Staff Accounting Bulletin (“SAB”) Topic 1.B and SAB Topic 5.T. SAB Topic 1.B provides that the separate financial statements of a subsidiary should reflect any costs of its operations which are incurred by the owner on its behalf. SAB Topic 5.T provides that costs should be reflected as an expense in the subsidiary’s financial statements with a corresponding credit to contributed equity. Income taxes Income taxes are accounted for using the liability method. Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of income tax expense. The amount of non-cash income tax expense is disclosed separately in the consolidated statement of cash flows. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the tax and the book bases of assets and liabilities. 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. Benefits of uncertain tax positions are recognized when it is more-likely-than-not that a tax position taken in a tax return will be sustained upon examination based on the technical merits of the position. If the more-likely-than-not recognition criterion is met, a tax position is measured based on the cumulative amount that is more-likely-than-not of being sustained upon examination by tax authorities to determine the amount of benefit to be recognized in the consolidated financial statements. Interest and penalties related to uncertain tax positions is recognized in income tax expense in the consolidated statement of income. Cash and cash equivalents Cash, banks deposits, time deposits and highly liquid investments with original maturities of three months or less are recognized as cash and cash equivalents. Restricted cash and cash designated for acquisition Restricted cash includes balances deposited with a bank as required under debt facilities to settle withholding tax, other tax liabilities and other current obligations of the entity, and principal and interest payments as required by the debt facilities. Restricted cash is classified as long-term when the settlement is more than 12 months from the balance sheet date. Cash designated for acquisition in the consolidated statement of cash flows is classified as an investing activity. Trade receivables and allowance for doubtful accounts Trade receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts, or impairment loss, is management’s best estimate of the amount of probable credit losses in existing accounts receivable based on historical write-off experience and customer economic data. Account balances are charged off against the allowance when management believes that the receivable will not be recovered. Investments in accumulated earnings or losses of and advances to joint ventures Investments in joint ventures are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for the Partnership’s proportionate share of earnings or losses and dividend distributions. As of December 31, 2019, the Partnership had an accumulated share of earnings and the balance is classified on the consolidated balance sheet as an asset on the line accumulated earnings of joint ventures. As of December 31, 2018, the Partnership had an accumulated share of losses and the balance is classified on the consolidated balance sheet as a liability on the line accumulated losses of joint ventures. Advances to joint ventures represent loan receivables due from the joint ventures and are recorded at cost. Interest on the advances to joint ventures is recorded to interest income in the consolidated statements of income as incurred. The quarterly payments from joint ventures included a payment of interest for the first month of the quarter and repayment of principal. Interest is accrued for the last two months of the quarter for repayment at the end of the loans after the original principal was fully repaid. The joint ventures repaid the original principal of all shareholder loans during 2016. Payments of interest, including accrued interest repaid at the end of the loans, are treated as return on investment and included as a component of net cash provided by operating activities in the consolidated statement of cash flows. Payments of principal are included as a component of net cash provided by investing activities in the consolidated statement of cash flows. Investments in joint vent |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business combinations | |
Business combinations | 3. Business combinations Höegh Grace Acquisition of 51% ownership interest in Höegh Grace On January 3, 2017, the Partnership closed the acquisition of 51% ownership interest in Höegh LNG Colombia Holding Ltd., the owner of the entities that own and operate Höegh Grace pursuant to a purchase, sale and contribution agreement that the Partnership entered into with Höegh LNG on December 1, 2016. The cash consideration was $91.8 million, excluding the working capital adjustment. The working capital adjustment was $0.4 million. In December 2016, the Höegh Grace , commenced on the time charter contract with a lease element and a services element with SPEC. The Höegh Grace serves as an LNG import terminal in Cartagena, on the Atlantic coast of Colombia. The initial term of the lease is 20 years. However, the charterer has an unconditional option to cancel the lease after 10 and 15 years. As a result, the non-cancellable lease period is for 10 years. Under terms of Höegh LNG Colombia Holding Ltd.’s memorandum and articles of association, the Partnership has the power to make key operating decisions considered to be most significant to the Höegh Grace entities and, therefore, has control over the Höegh Grace entities through the Partnership’s ownership of the equity interest of Höegh LNG Colombia Holding Ltd. As a result, the Partnership accounted for the acquisition of the 51% interest in Höegh LNG Colombia Holding Ltd. as a business combination. On January 1, 2017, the Partnership entered an agreement with Höegh LNG, under which Höegh LNG granted to the Partnership the authority to make decisions over the operations of Höegh LNG Colombia Holding Ltd. from January 1, 2017 to the closing date of the acquisition. As a result, the Partnership recorded the results of operations of the Höegh Grace entities in its consolidated income statement as of January 1, 2017. The purchase price of the acquisition was allocated to the identifiable fair values allocated to each class of identifiable assets acquired. Under the purchase method of accounting when control is obtained, the non-controlling interest is required to be measured at its fair value at the acquisition date. Management concluded that the pro-rata values of the controlling and non-controlling interests were the same. The fair value of the consideration transferred and the fair value of the 49% interest of the non-controlling interest was allocated to assets acquired and liabilities assumed as of the acquisition date with any remaining unallocated amount recognized as goodwill. The following summarizes the fair values of assets and liabilities assumed as of the acquisition date: (in thousands of U.S. dollars) Consideration Use of proceeds from public offering (issuance of 6,588,389 common units to the public) $ 91,768 Working capital adjustment 407 Total consideration $ 92,175 Assets acquired Cash and cash equivalents 3,774 Restricted cash 19 Trade receivables 4,446 Prepaid expenses and other receivables 51 Vessel 357,138 Other equipment 30 Intangibles: Above market time charter 11,760 Other long term assets 830 Total assets 378,048 Liabilities assumed Trade payables (193) Amounts due to owners and affiliates (622) Accrued liabilities and other payables (1,569) Total long term debt (192,286) Derivative instruments (2,642) Total liabilities assumed (197,312) Total identifiable net assets 180,736 Non-controlling interest in total identifiable net assets 88,561 Acquired share in total identifiable net asset $ 92,175 One contract related intangible was identified. The Partnership recorded $11.8 million for the favorable time charter contract with SPEC. Refer to note 2 Significant accounting policies: Intangibles and goodwill for information on the useful life and timing of amortization of the intangibles and note 12 for additional information. The premium arising in a business combination for the difference in the fair value of the debt assumed compared to the outstanding principal was reported in the consolidated balance sheet as a direct adjustment to the outstanding principal of the related debt and amortized on an effective interest rate method over the term of the relevant loan. Amortization of fair value of the debt assumed was included as a component of interest expense. The fair value of assets acquired and the liabilities assumed approximated the total consideration, therefore, no residual amount has been recognized as goodwill for the acquisition. All of the excess value associated with the business combination is associated with assets and liabilities of Höegh LNG FSRU IV Ltd., a Cayman Islands company, which is not subject to corporate income taxes. Therefore, there are no deferred tax assets or liabilities included in the purchase price allocation. As of the acquisition date, Höegh LNG Colombia S.A.S. had net deferred tax assets of less than $0.1 million which were fully offset by a valuation allowance. Acquisition of remaining 49% ownership interest in Höegh Grace On December 1, 2017, the Partnership closed the acquisition of the remaining 49% ownership interest in Höegh LNG Colombia Holding Ltd., and, as of that date, the Partnership has a 100% ownership interest in the Höegh Grace entities and there was no longer a non-controlling interest in the Höegh Grace entities. The purchase price for the acquisition was $85.9 million, excluding the working capital adjustment, pursuant to the purchase, sale and contribution agreement. The working capital adjustment was $0.8 million. The purchase price was settled with cash of $45.3 million from the issuance of the Series A preferred units and the rest of the purchase price of $41.4 million was financed by draws on the revolving credit facility. The acquisition of 51% ownership interest in the Höegh Grace entities in January 2017 was accounted for under the purchase method of accounting. The December 2017 acquisition of the remaining 49% ownership interest in the Höegh Grace entities is a change in the Partnership’s ownership and has been accounted for as an equity transaction for the acquisition of the 49% interest from the owner of the non-controlling interest. The carrying amount of the non-controlling interest is adjusted to reflect the change in ownership interest. Any difference between the fair value of the total consideration and the book value of the non-controlling interest was recognized as a capital contribution in equity attributable to the Partnership. The following summarizes the acquisition of the non-controlling interest as of the acquisition date: (in thousands of U.S. dollars) Consideration Cash portion of purchase price $ 45,300 Revolving credit facility draw Revolving credit facility draw for working capital adjustment 762 Total consideration $ 86,662 49% Assets acquired 181,420 49% Liabilities assumed (91,522) Total identifiable net assets 89,898 Non-controlling interest acquired 89,898 Difference between net book value of acquired non-controlling interest and consideration paid (3,236) Impact of acquisition of non-controlling interest on equity $ 86,662 Revenue and profit contributions Total revenues of $51.8 million and net income of $23.6 million have been included in the Partnership’s consolidated statement of income from January 1, 2017 through December 31, 2017. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2019 | |
Segment information | |
Segment information | 4. Segment information There are two operating segments. The segment profit measure is Segment EBITDA, which is defined as earnings before interest, taxes, depreciation, amortization and impairment, and other financial items (gain (loss) on debt extinguishment, gain (loss) on derivative instruments and other items, net). Segment EBITDA is reconciled to operating income and net income in the segment presentation below. The two segments are “Majority held FSRUs” and “Joint venture FSRUs.” In addition, unallocated corporate costs, interest income from advances to joint ventures and interest expense related to the outstanding balance on the $85 million revolving credit facility, the $385 million facility, and the seller’s credit note, repaid in October 2017, are included in “Other.” For the years ended December 31, 2019, 2018 and 2017, Majority held FSRUs includes the financing lease related to the PGN FSRU Lampung and the operating leases related to the Höegh Gallant and the Höegh Grace . As of December 31, 2019, 2018 and 2017, Joint venture FSRUs include two 50% owned FSRUs, the Neptune and the Cape Ann , that operate under long term time charters with one charterer. The accounting policies applied to the segments are the same as those applied in the consolidated financial statements, except that i) Joint venture FSRUs are presented under the proportional consolidation method for the segment note and under equity accounting for the consolidated financial statements, ii) internal interest income and interest expense between the Partnership’s subsidiaries that eliminate in consolidation are not included in the segment columns for the other financial income (expense), net line and iii) non-controlling interest in Segment EBITDA is subtracted in the segment note to reflect the Partnership’s interest in Segment EBITDA as the Partnership’s segment profit measure, Segment EBITDA. Under the proportional consolidation method, 50% of the Joint venture FSRUs’ revenues, expenses and assets are reflected in the segment note. Management monitors the results of operations of joint ventures under the proportional consolidation method and not the equity method of accounting. On January 1, 2017, the Partnership began consolidating its acquired 51% interest in the Höegh Grace entities. Since the Partnership obtained control of the Höegh Grace entities on that date, it consolidated 100% of the revenues, expenses, assets and liabilities of the Höegh Grace entities and the interest not owned by the Partnership was reflected as non-controlling interest in net income and non-controlling interest in total equity under US GAAP. Management monitored the results of operations of the Höegh Grace entities based on the Partnership’s 51% interest in Segment EBITDA of such entities and, therefore, subtracted the non-controlling interest in Segment EBITDA to present Segment EBITDA. The adjustment to non-controlling interest in Segment EBITDA is reversed to reconcile to operating income and net income in the segment presentation. On December 1, 2017, the Partnership acquired the remaining 49% ownership interest in the Höegh Grace entities and, as of that date, there was no longer a non-controlling interest in the Höegh Grace entities. In time charters, the charterer, not the Partnership, controls the choice of locations or routes the FSRUs serve. Accordingly, the presentation of information by geographical region is not meaningful. The following tables include the results for the segments for the years ended December 31, 2019, 2018 and 2017. Year ended December 31, 2019 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Time charter revenues $ 145,321 42,433 — 187,754 (42,433) (1) $ 145,321 Other revenue 115 — — 115 (1) 115 Total revenues 145,436 42,433 — 187,869 145,436 Operating expenses (2) (34,266) (9,044) (6,465) (49,775) 9,044 (1) (40,731) Equity in earnings (losses) of joint ventures — — — — 6,078 (1) 6,078 Segment EBITDA 111,170 33,389 (6,465) 138,094 Depreciation, amortization and impairment (21,477) (10,030) — (31,507) 10,030 (1) (21,477) Operating income (loss) 89,693 23,359 (6,465) 106,587 89,306 Gain (loss) on debt extinguishment 1,030 — — 1,030 (1) 1,030 Gain (loss) on derivative instruments — (5,209) — (5,209) 5,209 (1) — Other financial income (expense), net (12,511) (12,072) (17,809) (42,392) 12,072 (1) (30,320) Income (loss) before tax 78,212 6,078 (24,274) 60,016 — 60,016 Income tax expense (7,278) — 3 (7,275) — (7,275) Net income (loss) $ 70,934 6,078 (24,271) 52,741 — $ 52,741 Preferred unitholders’ interest in net income — — — — 13,850 (3) 13,850 Limited partners’ interest in net income (loss) $ 70,934 6,078 (24,271) 52,741 (13,850) (3) $ 38,891 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs net income (loss) to Equity in earnings (losses) of joint ventures. (2) The Partnership’s Indonesian subsidiary was assessed a property tax and penalties of $3.0 million by the Indonesian authorities for the period from 2015 through 2019. The retroactive assessment was as a result of the issuance of a new regulation in 2019, defining FSRUs as subject to the existing Indonesian property tax law. The property tax and penalties were recorded as a component of vessel operating expenses. (3) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. As of December 31, 2019 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Vessels, net of accumulated depreciation $ 640,431 252,789 — 893,220 (252,789) (1) $ 640,431 Net investment in financing lease 278,904 — — 278,904 — 278,904 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,831 3,831 — 3,831 Total assets 996,201 284,174 16,599 1,296,974 (284,174) (1) 1,012,800 Accumulated earnings of joint ventures — — 50 50 3,220 (1) 3,270 Expenditures for vessels & equipment 211 195 — 406 (195) (2) 211 Expenditures for drydocking 3,107 913 — 4,020 (913) (2) 3,107 Impairment/retirement of equipment — (75) — (75) 75 (2) — Principal repayment financing lease 4,168 — — 4,168 — 4,168 Amortization of above market contract $ 3,631 — — 3,631 — $ 3,631 (1) Eliminates the proportional share of the Joint venture FSRUs’ Vessels, net of accumulated depreciation, and Total assets and reflects the Partnership’s share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated earnings of joint ventures. (2) Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Year ended December 31, 2018 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Time charter revenues $ 144,952 43,169 — 188,121 (43,169) (1) $ 144,952 Other revenue — — 1,609 (1) 1,609 Total revenues 43,169 — 189,730 Operating expenses (27,294) (10,932) (5,817) (44,043) 10,932 (1) (33,111) Equity in earnings (losses) of joint ventures — — — — 17,938 (1) Segment EBITDA 32,237 (5,817) 145,687 Depreciation and amortization (21,146) (9,725) — (30,871) 9,725 (1) (21,146) Operating income (loss) 22,512 (5,817) 114,816 110,242 Gain (loss) on derivative instruments 8,496 — 13,177 (8,496) (1) 4,681 Other financial income (expense), net (26,381) (13,070) (2,615) (42,066) 13,070 (1) (28,996) Income (loss) before tax 17,938 (8,432) 85,927 — 85,927 Income tax expense (8,253) — (52) (8,305) — (8,305) Net income (loss) $ 68,168 17,938 (8,484) 77,622 — $ 77,622 Preferred unitholders’ interest in net income — — — — 12,303 (2) 12,303 Limited partners’ interest in net income (loss) $ 68,168 17,938 (8,484) 77,622 (12,303) (2) $ 65,319 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs net income (loss) to Equity in earnings (losses) of joint ventures. (2) Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. As of December 31, 2018 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Vessels, net of accumulated depreciation $ 658,311 261,614 — 919,925 (261,614) $ 658,311 Net investment in financing lease 283,073 — — 283,073 — 283,073 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,536 3,536 — 3,536 Total assets 1,007,202 286,283 15,838 1,309,323 (286,283) 1,023,040 Accumulated losses of joint ventures — — 50 50 (2,858) (2,808) Expenditures for vessels & equipment 257 3,305 — 3,562 (3,305) 257 Expenditures for drydocking — 2,490 — 2,490 (2,490) — Principal repayment financing lease 3,814 — — 3,814 — 3,814 Amortization of above market contract $ 3,631 — — 3,631 — $ 3,631 (1) Eliminates the proportional share of the Joint venture FSRUs’ Vessels, net of accumulated depreciation, and Total assets and reflects the Partnership’s share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated losses of joint ventures. (2) Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Year ended December 31, 2017 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Time charter revenues $ 143,531 42,165 — 185,696 (42,165) (1) $ 143,531 Accrual historical boil-off claim — (11,850) — (11,850) 11,850 (1)(2) — Total revenues 143,531 30,315 — 173,846 143,531 Operating expenses (27,612) (8,628) (6,089) (42,329) 8,628 (1) (33,701) Construction contract expenses (151) — — (151) (3) (151) Equity in earnings (losses) of joint ventures — — — — 5,139 (1) 5,139 Less: Non-controlling interest in Segment EBITDA (19,210) — — (19,210) 19,210 (4) — Segment EBITDA 96,558 21,687 (6,089) 112,156 Add: Non-controlling interest in Segment EBITDA 19,210 — — 19,210 (19,210) (4) — Depreciation and amortization (21,054) (9,815) — (30,869) 9,815 (1) (21,054) Operating income (loss) 94,714 11,872 (6,089) 100,497 93,764 Gain (loss) on derivative instruments 2,463 7,194 — 9,657 (7,194) (1) 2,463 Other financial income (expense), net (29,656) (13,927) (3,503) (47,086) 13,927 (1) (33,159) Income (loss) before tax 67,521 5,139 (9,592) 63,068 — 63,068 Income tax benefit (expense) (3,893) — 15 (3,878) — (3,878) Net income (loss) $ 63,628 5,139 (9,577) 59,190 — $ 59,190 Non-controlling interest in net income 10,408 — — 10,408 10,408 Preferred unitholders’ interest in net income — — — — 2,480 (5) 2,480 Limited partners’ interest in net income (loss) $ 53,220 5,139 (9,577) 48,782 (2,480) (5) $ 46,302 (1) Eliminations reverse each of the income statement line items of the proportional consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. (2) For additional information, refer to note 18 under “Joint ventures claims and accruals.” (3) The warranty work for the Mooring was completed in 2017 resulting in additional expense of $0.2 million for the year ended December 31, 2017. (4) Eliminations reverse the adjustment to Non-controlling interest in Segment EBITDA included for Segment EBITDA and the adjustment to reverse the Non-controlling interest in Segment EBITDA to reconcile to operating income and net income. (5) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. For the years ended December 31, 2019, 2018 and 2017, the percentage of consolidated total revenues from the following customers accounted for over 10% of the Partnership’s consolidated total revenues: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 PT PGN LNG Indonesia 33 % 33 % 33 % Höegh LNG Egypt LLC 31 % 31 % 31 % Sociedad Portuaria El Cayao S.A. E.S.P. 36 % 36 % 36 % |
Time charter revenues and relat
Time charter revenues and related contract balances | 12 Months Ended |
Dec. 31, 2019 | |
Time charter revenues and related contract balances | |
Time charter revenues and related contract balances | 5. Time charter revenues and related contract balances The Partnership presents its revenue by segment, disaggregated by revenue recognized in accordance with accounting standards on leasing and on revenue from contracts with customers for time charter services. In addition, material elements where the nature, amount, timing and uncertainty of revenue and cash flows differ from the monthly invoicing under time charter contracts are separately presented. Revenue recognized for the Majority held FSRUs includes the amortization of above market contract intangibles. Revenue recognized for Joint venture FSRUs include the amortization of deferred revenues related to the charterer’s reimbursements for certain vessel modifications and drydocking costs. As a result, the timing of cash flows differs from monthly time charter invoicing. The following tables summarize the disaggregated revenue of the Partnership by segment for the twelve months ended December 31, 2019 and 2018: Year ended December 31, 2019 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) reporting Lease revenues, excluding amortization (2) $ 88,889 25,690 — 114,579 (25,690) $ 88,889 Time charter service revenues, excluding amortization 60,063 14,095 — 74,158 (14,095) 60,063 Amortization of above market contract intangibles (3,631) — — (3,631) — (3,631) Amortization of deferred revenue for modifications & drydock — 2,648 — 2,648 (2,648) — Other revenue (3) 115 — — 115 — 115 Total revenues (4) $ 145,436 42,433 — 187,869 (42,433) $ 145,436 Year ended December 31, 2018 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) reporting Lease revenues, excluding amortization $ 89,215 25,690 — 114,905 (25,690) $ 89,215 Time charter service revenues, excluding amortization 59,368 15,078 — 74,446 (15,078) 59,368 Amortization of above market contract intangibles (3,631) — — (3,631) — (3,631) Amortization of deferred revenue for modifications & drydock — 2,401 — 2,401 (2,401) — Other revenue (3) 1,609 — — 1,609 — 1,609 Total revenues (4) $ 146,561 43,169 — 189,730 (43,169) $ 146,561 (1) Eliminations reverse the proportional amounts of revenue for Joint venture FSRUs to reflect the consolidated revenues included in the consolidated income statement. The Partnership’s share of the Joint venture FSRUs revenues is included in Equity in earnings (losses) of joint ventures on the consolidated income statement. (2) The financing lease revenues comprise about one-fourth of the total lease revenues for the year ended December 31, 2019. (3) Other revenue consists of insurance proceeds received for prior period claims related to repairs under the Mooring warranty and for repairs for the Höegh Gallant . The Partnership was indemnified by Höegh LNG for the cost of the repairs related to the Mooring, subject to repayment to the extent recovered from insurance proceeds. Refer to notes 4 and 18. (4) Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of total revenues and is disclosed separately in the consolidated statement of cash flows. For the year ended December 31, 2017, the Partnership did not present disaggregated time charter revenues. Refer to note 4 for the combined time charter revenues by segment for the year ended December 31, 2017. The Partnership’s risk and exposure related to uncertainty of revenues or cash flows related to its long-term time charter contracts primarily relate to the credit risk associated with the individual charterers. Payments are due under time charter contracts regardless of the demand for the charterers’ gas output or the utilization of the FSRU. The consolidated trade receivables, contract assets, contract liabilities and refund liabilities included in the table below, exclude the balances for the Joint venture FSRUs. The Partnership’s share of net assets in the Joint venture FSRUs are recorded in the consolidated balance sheet using the equity method on the line accumulated losses in joint ventures. The following table summarizes the allocation of consolidated receivables between lease and service components: As of December 31, (in thousands of U.S. dollars) 2019 2018 Trade receivable for lease $ 2,898 $ 2,898 Trade receivable for time charter services 2,133 2,658 Total trade receivable and amounts due from affiliates $ 5,031 $ 5,556 There were no impairment losses for lease or service receivables or contract assets for the year ended December 31, 2019 and 2018. The following table summarizes the consolidated contract assets, contract liabilities and refund liabilities to customers, as of December 31, 2019 and 2018: Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2019 $ — $ (1,834) Additions 279 (65) Reduction for receivables recorded — 89 Reduction for revenue recognized (excluding amortization) — — Reduction for revenue recognized from previous years — 497 Repayments of refund liabilities to charterer — 1,188 Balance December 31, 2019 279 (125) Netting of contract asset and contract liability — — Balance reflected in balance sheet December 31, 2019 $ 279 $ (125) Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2018 $ 303 $ (6,187) Additions — (1,747) Reduction for receivables recorded (303) — Reduction for revenue recognized (excluding amortization) — — Reduction for revenue recognized from previous years — 2,772 Repayments of refund liabilities to charterer — 3,328 Balance December 31, 2018 — (1,834) Netting of contract asset and contract liability — — Balance reflected in balance sheet December 31, 2018 $ — $ (1,834) Contract assets are reported in the consolidated balance sheet as a component of prepaid expenses and other receivables. Current and non-current contract liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables and other long-term liabilities, respectively. Refund liabilities are reported in the consolidated balance sheet as a component of accrued liabilities and other payables. Refund liabilities to charterers include invoiced revenue to be refunded to charterers for estimated reimbursable costs that exceeded the actual cost incurred and for non-compliance with performance warranties in the time charter contracts that result in reduction of hire, liquidated damages or other performance related payments. During the year ended December 31, 2019 the major changes in the refund liability to charterers related to the settlement of a 2018 performance claim of $1,101 and the recognition of $497 of revenue related to conclusion of an audit by a charterer related to 2018 reimbursable expenses. During the year ended December 31, 2018, the major changes related to recognition of previously constrained revenue related to prior periods’ performance obligations of $2,772 and repayment of $3,328 for the conclusion of an audit by a charterer at the end of 2017 and in the third quarter of 2018 for the amount the charterer would reimburse for certain 2014, 2015 and 2016 costs. Minimum contractual future revenues : As of December 31, 2019, the minimum contractual future revenues to be received under the time charters for the PGN FSRU Lampung, the Höegh Gallant and the Höegh Grace during the next five years and thereafter are as follows: (in thousands of U.S. dollars) Service related Lease related Total 2020 $ 24,880 71,100 $ 95,980 2021 19,703 59,903 79,606 2022 19,703 59,903 79,606 2023 19,703 59,903 79,606 2024 19,703 59,903 79,606 Thereafter 116,386 346,369 462,755 Total - undiscounted $ 220,078 657,081 $ 877,159 Operating lease $ 223,644 Financing lease 433,437 Discounting effect (193,437) Financing lease receivable $ 240,000 The long-term time charter for the PGN FSRU Lampung with PGN LNG has an initial term of 20 years from the acceptance date of October 30, 2014 and the contract expires in 2034. The time charter hire payments began July 21, 2014 when the project was ready to begin commissioning. The lease element of the time charter is accounted for as a financing lease. The minimum contractual future revenues in the table above include the fixed payments for the lease and services elements for the initial term but exclude the variable fees from the charterer for vessel operating expenses and reimbursement of tax expenses. The charterer has an option to purchase the PGN FSRU Lampung, which can be exercised after the third anniversary of the commencement of the charter until the twentieth anniversary, at stated prices in the time charter. The minimum contractual future revenues do not include the unexercised purchase option price. Should the purchase option be exercised in the short to medium term, the contractual price would exceed the net investment in financing lease, but the future hire payments would cease. The time charter also provides options for the charterer to extend the lease term for two five-year periods. Unexercised option periods are excluded from the minimum contractual future revenues. The long-term time charter for the Höegh Gallant has an initial term of five years from April 2015 and the contract expires in 2020. The lease element of the time charter is accounted for as an operating lease. The minimum contractual future revenues in the table above include the fixed payments for the lease element and the services element which also covers the vessel operating expenses and taxes. Pursuant to an option agreement, the Partnership has the right to cause Höegh LNG to charter the Höegh Gallant from the expiration or termination of the initial five-year charter until July 2025 at a rate equal to 90% of the rate payable pursuant to the current charter plus any incremental taxes or operating expenses as a result of the new charter. On February 27, 2020, the Partnership exercised its option and intends to enter into a Subsequent Charter with Höegh LNG for the Höegh Gallant , the final terms of which are subject to approval by the Partnership’s conflicts committee and board of directors. Since the option was exercised after the balance sheet date, the estimated fixed payments for the exercised option periods are excluded in the minimum contractual future revenues. The long-term time charter for the Höegh Grace has an initial term of 20 years and the contract expires in 2036. The minimum contractual future revenues in the table above include the fixed payments for the lease element and services element but exclude the variable fees from the charterer for vessel operating expenses and reimbursement of certain taxes. The non-cancellable charter period is 10 years. The initial term of the lease is 20 years. However, each party has an unconditional option to cancel the charter after 10 and 15 years without penalty. However, if the charterer waives its right to terminate in year 10 within a certain deadline, the Partnership will not be able to exercise its right to terminate in year 10. The charterer has an option to purchase the Höegh Grace at a price specified in the Höegh Grace charter in year 15 and year 20 of such charter. The minimum contractual future revenues do not include the unexercised purchase option price. Only the non-cancellable lease period is included the minimum contractual future revenues. Net investment in financing lease : The lease element of time charter hire for the PGN FSRU Lampung is recognized over the lease term using the effective interest rate method and is included in time charter revenues. The financing lease is reflected on the consolidated balance sheets as net investment in financing lease, a receivable, as follows: As of December 31, (in thousands of U.S. dollars) 2019 2018 Minimum lease payments $ 589,074 $ 589,074 Unguaranteed residual value 146,000 146,000 Unearned income (440,345) (440,345) Initial direct cost, net 3,095 3,095 Net investment in financing lease at origination 297,824 297,824 Principal repayment and amortization (18,920) (14,751) Net investment in financing lease at period end 278,904 283,073 Less: Current portion (4,551) (4,168) Long term net investment in financing lease $ 274,353 $ 278,905 Net investment in financing lease consists of: Financing lease receivable $ 240,000 $ 247,488 Discounted unguaranteed residual value 38,904 35,585 Net investment in financing lease at period end $ 278,904 $ 283,073 There was no impairment loss, or allowance for doubtful accounts, as of December 31, 2019 and 2018. |
Financial income (expense), net
Financial income (expense), net | 12 Months Ended |
Dec. 31, 2019 | |
Financial income (expense), net | |
Financial income (expense), net | 6. Financial income (expense), net The components of financial income (expense), net are as follows: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Interest income $ 947 725 $ 500 Interest expense: Interest expense (24,950) (26,077) (28,280) Commitment fees (381) (37) (977) Amortization of debt issuance cost and fair value of debt assumed (2,361) (700) (828) Total interest expense (27,692) (26,814) (30,085) Gain (loss) on debt extinguishment 1,030 — — Gain (loss) on derivative instruments — 4,681 2,463 Other items, net: Foreign exchange gain (loss) (396) (193) (968) Bank charges, fees and other (297) (143) (107) Withholding tax on interest expense and other (2,882) (2,571) (2,499) Total other items, net (3,575) (2,907) (3,574) Total financial income (expense), net $ (29,290) (24,315) $ (30,696) Interest income related to cash balances and interest accrued on the advances to the joint ventures for each of the years ended December 31, 2019, 2018 and 2017. As of January 1, 2019, interest expense includes reclassifications from accumulated other comprehensive income and amortization of the components excluded from hedge effectiveness related to derivatives due to the adoption of the revised guidance for derivatives and hedging. The entire change in fair value of the cash flow hedge included in the assessment of hedge effectiveness is included in other comprehensive income with the result that the hedge ineffectiveness is no longer recognized in earnings. Refer to note 2. For each of the years ended December 31, 2018 and 2017, gain (loss) on derivatives included the gain or loss on hedge ineffectiveness as well as amortization related to derivatives. Refer to note 17 for additional information on the types of gains and losses on derivatives included in interest expense for the year ended December 31, 2019. Interest expense also includes interest related to the revolving credit facility from Höegh LNG, the seller’s credit note until October 2017, the $385 million facility, the Lampung facility and the Gallant/Grace facility until January 31, 2019. The gain on debt extinguishment relates to the refinancing of the Gallant/Grace facility with the $385 million facility. When the entities owning the Höegh Gallant and the Höegh Grace were acquired, a premium on the debt under the Gallant facility and the Grace facility was recognized. The unamortized balance was recorded as a gain when the debt was extinguished on January 31, 2019. Refer to notes 13, 15 and 16. |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2019 | |
Income tax | |
Income tax | 7. Income tax The components of income tax expense recognized in the consolidated statements of income are as follows: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Current tax (benefit) expense $ 4,126 4,759 $ 35 Deferred tax (benefit) expense for Change in temporary differences 3,341 3,290 4,189 Tax loss and tax credit carried forward (196) 247 (314) Change in valuation allowance 4 9 (32) Total deferred tax (benefit) expense 3,149 3,546 3,843 Total income tax (benefit) expense $ 7,275 8,305 $ 3,878 Deferred tax (benefit) expense recognized in the consolidated statements of comprehensive income as a component of other comprehensive income (“OCI”) are as follows: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Cash flow hedge derivative instruments $ 389 299 $ 347 Deferred tax (benefit) expense recognized in OCI $ 389 299 $ 347 The reconciliation of the income before tax at the statutory rate in the Marshall Islands to the actual income tax expense for each year is as follows: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Income before tax $ 60,016 85,927 $ 63,068 At applicable statutory tax rate Amount computed at corporate tax of 0 % — — — Foreign tax rate differences 5,425 7,513 7,119 Permanent differences: Amended tax return: reinstatement of tax loss carryforward — — (1,486) Tax audit or amended tax return: change in uncertain tax position 558 (41) (2,228) Non-deductible interest expense 1,477 875 752 Non-deductible withholding tax 717 838 686 Non-deductible loss on derivatives 120 — — Tax exemptions (13) (36) (42) Non-deductible other financial items 194 116 81 Other non-deductible costs 45 63 59 Tax credits (1,252) (1,032) (1,031) Adjustment for valuation allowance 4 9 (32) Tax expense (benefit) for year $ 7,275 8,305 $ 3,878 Deferred income tax assets (liabilities) are summarized as follows: As of December 31, (in thousands of U.S. dollars) 2019 2018 Deferred tax assets: Accrued liabilities and other payables $ 235 $ 196 Derivative instruments 565 954 Other equipment 9 9 Tax credits carried forward 1,818 1,626 Tax loss carryforward 57 53 Valuation allowance (57) (53) Deferred tax liabilities: Accrued interest income (4,123) (3,837) Accrued liabilities and other payables (385) (154) Financing lease (10,451) (7,594) Deferred tax assets (liabilities), net $ (12,332) $ (8,800) The Partnership is not subject to Marshall Islands corporate income taxes. The Partnership is subject to tax for earnings of its subsidiaries incorporated in Singapore, Indonesia, Cyprus, and the UK and for certain Colombian source income. For the years ended December 31, 2019, 2018 and 2017, the tax expense principally related to subsidiaries in Indonesia, Singapore and Colombia. The Singapore subsidiary’s taxable income mainly arises from internal interest income. The charterer in Colombia pays certain taxes directly to the Colombian tax authorities on behalf of the Partnership’s subsidiaries that own and operate the Höegh Grace . The tax payments are a mechanism for advance collection of part of the income taxes for the Colombian subsidiary and a final income tax on Colombian source income for the non-Colombian subsidiary. The Partnership concluded these third-party payments to the tax authorities represent income taxes that must be accounted for under the guidance for income taxes. The amount of non-cash income tax expense was $867, $852 and $861 for the years ended December 31, 2019, 2018 and 2017. For the year ended December 31, 2017, tax benefits were recorded of $1,486 and $2,228 for the reinstatement of the tax loss carryforward and the reversal of an uncertain tax position, respectively, due to the amendment of the 2016 tax return of the Indonesian subsidiary. The amendment was a result of a reevaluation of the application of the infrastructure industry exemption to regulations introduced in 2016 placing limitations on interest expense deductions. The infrastructure exemption was also applied by the Indonesian subsidiary for the reported income tax expense for the years ended December 31, 2019, 2018 and 2017. In December of 2018, the Indonesian tax authorities concluded an audit of corporate income tax filings for the Indonesian subsidiary for the years ended December 31, 2013 and 2014. The outcome of the audit reduced the historical tax loss carryforward, mainly due to disallowed expenses, resulting in a settlement of $885 with respect to the unrecognized tax benefits originating in 2013. For the year ended December 31, 2018, tax benefits of $434 were recorded reflecting a reduction to the uncertain tax position originating in 2013 based on the audit’s conclusion. In addition, there was an increase to the uncertain tax position of $418 for a tax position taken in the 2018 tax return which was not more-likely-than-not to be sustained. For the year ended December 31, 2019, there was an increase to the uncertain tax position of $558 for a tax position to be taken in the 2019 tax return which is not more-likely-than-not to be sustained. As of December 31, 2019, the unrecognized tax benefits were $2,283. Benefits of uncertain tax positions are recognized when it is more-likely-than-not that a tax position taken in a tax return will be sustained upon examination based on the technical merits of the position. Changes in the unrecognized tax benefits is summarized below: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Unrecognized tax benefits as of January 1, $ (1,725) (2,626) $ (398) Increase related to prior year tax positions — — (2,228) Decrease related to prior year tax positions — 434 — Increase related to current year tax positions (558) (418) — Settlements — 885 — Unrecognized tax benefits as of December 31, $ (2,283) (1,725) $ (2,626) Tax loss carryforwards of $455 expire between 2020 and 2023. Tax credits carried forward of $566 and $1,003 expire in 2020 and 2021, respectively. The tax returns of Singapore and Indonesia are subject to examination for four years and five years, respectively, from the year of filing. For Colombia, tax returns are subject to examination for three years from the due date of the return. The tax returns from the years 2015 and subsequent years remain subject to review for Indonesia and Singapore. For Colombia, tax returns from the years 2017 and subsequent years remain subject to review. Refer to note 18. |
Prepaid expenses and other rece
Prepaid expenses and other receivables | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid expenses and other receivables | |
Prepaid expenses and other receivables | 8. Prepaid expenses and other receivables The components of prepaid expenses and other receivables are as follows: As of December 31, (in thousands of U.S. dollars) 2019 2018 Refundable value added tax on import $ — $ 2,517 Prepaid expenses and other receivables 2,534 450 Total other prepaid expenses and other receivables $ 2,534 $ 2,967 Refundable value added tax was paid in Indonesia in local currency on the import of PGN FSRU Lampung into the country in 2014. The receivable was recovered by applying subsequent periods net value added tax liabilities against the receivable. As of December 31, 2019, the refundable balance was fully recovered. The charterer provided an advance for the funding of the refundable value added tax on import. Refer to note 14. |
Investments in joint ventures
Investments in joint ventures | 12 Months Ended |
Dec. 31, 2019 | |
Investments in joint ventures | |
Investments in joint ventures | 9. Investments in joint ventures As of December 31, (in thousands of U.S. dollars) 2019 2018 Accumulated earnings of joint ventures $ 3,270 $ — Accumulated losses of joint ventures $ — $ (2,808) The Partnership has a 50% interest in each of SRV Joint Gas Ltd. (owner of the Neptune ) and SRV Joint Gas Two Ltd. (owner of the Cape Ann ). The following table presents the summarized financial information of the joint ventures on a 100% combined basis. Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Time charter revenues $ 77,051 79,654 $ 84,330 Accrual historical boil-off claim (note 18) — — (23,700) Other income 7,814 6,684 — Total revenues 84,865 86,338 60,630 Operating expenses (18,088) (21,864) (17,256) Depreciation and amortization (20,524) (20,065) (20,244) Impairment of long-lived assets (1) (149) — — Operating income 46,104 44,409 23,130 Unrealized gain (loss) on derivative instruments (10,418) 16,992 14,388 Other financial expense, net (24,144) (26,140) (27,854) Net income (loss) $ 11,542 35,261 $ 9,664 Share of joint ventures owned 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations 5,771 17,631 4,832 Eliminations 307 307 307 Equity in earnings (losses) of joint ventures $ 6,078 17,938 $ 5,139 (1) At the completion of the class renewal survey of the Neptune , certain equipment was identified that was impaired. As of December 31, (in thousands of U.S. dollars) 2019 2018 Cash and cash equivalents $ 17,897 $ 7,958 Restricted cash 9,250 13,844 Other current assets 973 1,894 Total current assets 28,120 23,696 Restricted cash 34,650 25,448 Vessels, net of accumulated depreciation 521,060 539,324 Deferred charges — 194 Total long-term assets 555,710 564,966 Current portion of long-term debt 28,297 26,599 Amounts and loans due to owners and affiliates 629 1,215 Derivative instruments 13,089 10,178 Refund liabilities 26,691 26,055 Other current liabilities 10,327 8,924 Total current liabilities 79,033 72,971 Long-term debt 375,091 403,052 Loans due to owners and affiliates 7,663 7,071 Derivative instruments 59,070 51,563 Other long-term liabilities 40,952 43,526 Total long-term liabilities 482,776 505,212 Net assets (liabilities) $ 22,021 $ 10,479 Share of joint ventures owned 50 % 50 % Share of joint ventures net assets (liabilities) before eliminations 11,011 5,240 Eliminations (7,741) (8,048) Accumulated earnings (losses) of joint ventures $ 3,270 $ (2,808) |
Advances to joint ventures
Advances to joint ventures | 12 Months Ended |
Dec. 31, 2019 | |
Advances to joint ventures | |
Advances to joint ventures | 10. Advances to joint ventures As of December 31, (in thousands of U.S. dollars) 2019 2018 Current portion of advances to joint ventures $ — $ — Long-term advances to joint ventures 3,831 3,536 Advances/shareholder loans to joint ventures $ 3,831 $ 3,536 The Partnership had advances of $3.0 million and $2.8 million due from SRV Joint Gas Ltd. as of December 31, 2019 and 2018, respectively. The Partnership had advances of $0.8 million and $0.7 million due from SRV Joint Gas Two Ltd. as of December 31, 2019 and 2018, respectively. The advances consist of shareholder loans where the principal amounts, including accrued interest, are repaid based on available cash after servicing of long-term bank debt. The shareholder loans are due not later than the 12th anniversary of delivery date of each FSRU. The Neptune and the Cape Ann were delivered on November 30, 2009 and June 1, 2010, respectively. The shareholder loans are subordinated to long-term bank debt and the repayment plan is subject to quarterly discretionary revisions based on available cash after servicing of the long-term bank debt. Under terms of the shareholder loan agreements, the repayments shall be prioritized over any dividend payment to the owners of the joint ventures. The shareholder loans bear interest at a fixed rate of 8.0% per year. The other joint venture partners have, on a combined basis, an equal amount of shareholder loans outstanding at the same terms to each of the joint ventures. The shareholder loans financed part of the construction of the vessels and operating expenses until the delivery and commencement of the operations of the Neptune and the Cape Ann . In 2011, the joint ventures began repaying principal and a portion of the interest expense based on available cash after servicing of the external debt. The quarterly payments have included a payment of interest for the first month of the quarter and a repayment of principal. Interest was accrued for the last two months of the quarter for repayment at the end of the loans after the original principal was fully repaid. The joint ventures repaid the original principal of all shareholder loans during 2016 and all of the payments for the year ended December 31, 2017 represent payments of interest, including accrued interest to be repaid at the end of the loans. As of September 30, 2017, the joint ventures suspended payments on the shareholder loans pending the outcome of the boil-off claim. Accordingly, the outstanding balance on the shareholder loans is classified as long-term as of December 31, 2019 and December 31, 2018. Refer to note 18 under “Joint ventures claims and accruals.” The advances, including accrued interest, can be repaid based on available cash after servicing of long-term bank debt. There are no financial covenants in the joint ventures’ bank debt facilities, but certain other covenants and restrictions apply. Certain conditions apply to making distributions for the shareholder loans or dividends, including meeting a 1.20 historical and projected debt service coverage ratio. As of December 31, 2019, both the 1.20 historical and projected debt service coverage ratios were met by the joint venture owning the Neptune . As a result, the joint venture owning the Neptune qualifies to make payments on the shareholder loans or other distributions. As of December 31, 2019, the 1.20 historical debt service coverage ratio was met, however, the projected debt service coverage ratio was not met by the joint venture owning the Cape Ann . As a result, no payments on the shareholder loans or other distributions can be made by joint venture owning the Cape Ann until the debt service coverage ratio is met in future periods. |
Vessels and other equipment
Vessels and other equipment | 12 Months Ended |
Dec. 31, 2019 | |
Vessels and other equipment | |
Vessels and other equipment | 11. Vessels and other equipment Dry- (in thousands of U.S. dollars) Vessel docking Total Historical cost December 31, 2017 $ 706,458 6,667 $ 713,125 Additions 257 — 257 Historical cost December 31, 2018 706,715 6,667 713,382 Depreciation for the year (19,387) (1,600) (20,987) Accumulated depreciation December 31, 2018 (50,871) (4,200) (55,071) Vessels, net December 31, 2018 655,844 2,467 658,311 Historical cost December 31, 2018 706,715 6,667 713,382 Additions 183 3,107 3,290 Historical cost December 31, 2019 706,898 9,774 716,672 Depreciation for the year (19,393) (1,777) (21,170) Accumulated depreciation December 31, 2019 (70,264) (5,977) (76,241) Vessels, net December 31, 2019 $ 636,634 3,797 $ 640,431 As of December 31, 2019 and 2018, other equipment consists principally of warehouse, office equipment and computers. As of January 1, 2019, other equipment includes a right-of-use asset due to the adoption of the revised guidance for leases. Refer to note 2. Adoption of the new leasing standard resulted in recording a right-of-use assets and lease liability for operating leases of $0.15 million and $0.15 million, respectively, as of January 1, 2019. Other equipment of $845 and $817 is recorded net of accumulated depreciation of $679 and $372 in the consolidated balance sheet as of December 31, 2019 and 2018, respectively. As of December 31, 2019, the right-of-use assets and lease liability for operating leases was $91. Depreciation expense for other equipment was $307, $159 and $79 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Intangibles and goodwill
Intangibles and goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Intangibles and goodwill | |
Intangibles and goodwill | 12. Intangibles and goodwill Option Above for time market time charter Total (in thousands of U.S. dollars) charter extension Intangibles Goodwill Total Historical cost December 31, 2017 $ 22,760 8,000 30,760 251 $ 31,011 Amortization for the year (3,631) — (3,631) — (3,631) Accumulated amortization, December 31, 2018 (10,272) — (10,272) — (10,272) Intangibles and goodwill, December 31, 2018 12,488 8,000 20,488 251 20,739 Historical cost December 31, 2018 22,760 8,000 30,760 251 31,011 Additions — — — — — Historical cost December 31, 2019 22,760 8,000 30,760 251 31,011 Amortization for the year (3,631) — (3,631) — (3,631) Accumulated amortization, December 31, 2019 (13,903) — (13,903) — (13,903) Intangibles and goodwill, December 31, 2019 $ 8,857 8,000 16,857 251 $ 17,108 The following table presents estimated future amortization expense for the intangibles: (in thousands of U.S. dollars) Total 2020 $ 3,053 2021 2,755 2022 2,755 2023 2,755 2024 2,762 2025 and thereafter $ 2,777 |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term debt | 13. Long-term debt As of December 31, (in thousands of U.S. dollars) 2019 2018 Lampung facility: Export credit tranche $ 94,210 $ 109,096 FSRU tranche 22,812 26,988 Gallant facility: Commercial tranche — 111,264 Export credit tranche — 29,333 Grace facility: Commercial tranche — 135,813 Export credit tranche — 27,750 $385 million facility: Commercial tranche 249,635 — Export credit tranche 51,167 — Revolving credit tranche 48,300 — Outstanding principal 466,124 440,244 Lampung facility unamortized debt issuance cost (4,309) (5,809) Gallant facility unamortized fair value of debt assumed — 215 Grace facility unamortized fair value of debt assumed — 895 $385 million facility unamortized debt issuance costs (4,854) — Total debt 456,961 435,545 Less: Current portion of long-term debt (44,660) (45,458) Long-term debt $ 412,301 $ 390,087 Lampung facility In September 2013, PT Hoegh LNG Lampung (the “Borrower”) entered into a secured $299 million term loan facility (the “Lampung facility”) with a syndicate of banks and an export credit agency for the purpose of financing a portion of the construction of the PGN FSRU Lampung and the Mooring. Höegh LNG is the guarantor for the Lampung facility. The facility was drawn in installments as construction was completed. The term loan facility includes two commercial tranches, the FSRU tranche and the Mooring tranche, and the export credit tranche. The interest rates vary by tranche. The full principal amount on the Mooring tranche and accrued interest was repaid in 2014. The FSRU tranche has an interest rate of LIBOR plus a margin of 3.4%. The interest rate for the export credit tranche is LIBOR plus a margin of 2.3%. The FSRU tranche is repayable quarterly over 7 years with a final balloon payment of $16.5 million. The export credit tranche is repayable in quarterly installments over 12 years assuming the balloon payment of the FSRU tranche is refinanced. If not, the export credit agent can exercise a prepayment right for repayment of the outstanding balance upon maturity of the FSRU tranche. The weighted average interest rate, excluding the impact of the associated interest rate swaps, for the years ended December 31, 2019 and 2018 was 6.2% and 5.9% respectively. The primary financial covenants under the Lampung facility are as follows: · Borrower must maintain a minimum debt service coverage ratio of 1.10 to 1.00 for the preceding nine-month period tested on each quarterly repayment date; · Guarantor’s book equity must be greater than the higher of (i) $200 million and (ii) 25% of total assets; and · Guarantor’s free liquid assets (cash and cash equivalents or available draws on credit facilities) must be greater than $20 million. As of December 31, 2019 and 2018, the Borrower and the guarantor were in compliance with the financial covenants. Höegh LNG, as guarantor, has issued the following guarantees related to the Lampung facility that remain in effect as of December 31, 2019: (a) an unconditional and irrevocable on-demand guarantee for the repayment of the balloon repayment installment of the FSRU tranche callable only at final maturity of the FSRU tranche; (b) an unconditional and irrevocable on-demand guarantee for all amounts due in respect of the export credit agent in the event that the export credit agent exercises its prepayment right for the export credit tranche if the FSRU tranche is not refinanced; and (c) undertaking that, if the time charter is terminated for an event of vessel force majeure, that under certain conditions, a guarantee will be provided for the outstanding debt, less insurance proceeds for vessel force majeure. In addition, all project agreements and guarantees are assigned to the bank syndicate and the export credit agent, all cash accounts and the shares in PT Hoegh LNG Lampung and Hoegh LNG Lampung Pte. Ltd. are pledged in favor of the bank syndicate and the export credit agent. The Lampung facility requires cash reserves that are held for specifically designated uses, including working capital, operations and maintenance and debt service reserves. Distributions are subject to “waterfall” provisions that allocate revenues to specified priorities of use (such as operating expenses, scheduled debt service, targeted debt service reserves and any other reserves) with the remaining cash being distributable only on certain dates and subject to satisfaction of certain conditions, including meeting a 1.20 historical debt service coverage ratio, no default or event of default then continuing or resulting from such distribution and the guarantor not being in breach of the financial covenants applicable to it. The Lampung facility limits, among other things, the ability of the Borrower to change its business, sell or grant liens on its property including the PGN FSRU Lampung , incur additional indebtedness or guarantee other indebtedness, make investments or acquisitions, enter into intercompany transactions and make distributions. Gallant/Grace facility The Gallant/Grace facility included two borrowers, the Partnership’s subsidiaries owning the Höegh Gallant and the Höegh Grace . The Gallant/Grace facility included two commercial tranches and the export credit tranche related to the Höegh Gallant (the “Gallant facility”) and a commercial tranche and the export credit tranche related to the Höegh Grace (the “Grace facility”). All of the tranches under the Gallant/Grace facility were cross-defaulted, cross-collateralized and cross-guaranteed. The obligations of the Borrowers were joint and several. The interest rates varied by tranche. Höegh LNG, Höegh LNG Colombia Holding Ltd., Höegh LNG FSRU III Ltd. and the Partnership were guarantors for the facility. On January 31, 2019, the outstanding balance and the accrued interest of $303.2 million and $1.6 million, respectively, on the Gallant/Grace facility was repaid from the proceeds of the $385 million facility. The unamortized balance of the fair value of debt assumed, or premium, was recorded as a gain when the debt was extinguished. Refer to note 6. The interest rate swaps related to the Gallant/Grace facility were terminated on the same date. Refer to note 17. $385 million facility On January 29, 2019, the Partnership entered a loan agreement with a syndicate of banks to refinance the outstanding balances of the Gallant/Grace facility. Höegh LNG Partners LP is the borrower (the “Borrower”) for the senior secured term loan and revolving credit facility (the “$385 million facility”). The aggregate borrowing capacity is $320 million on the senior secured term loan and $63 million on the revolving credit tranche. Hoegh LNG Cyprus Limited, which owns the Höegh Gallant , and Höegh LNG FSRU IV Ltd., the owner of the Höegh Grace (collectively, the "Vessel Owners"), Höegh LNG Colombia S.A.S., and Höegh LNG Egypt LLC, a subsidiary of Höegh LNG, are guarantors for the facility (collectively, the "guarantors"). The facility is secured by, among other things, a first priority mortgage of the Höegh Gallant and the Höegh Grace , an assignment of the Hoegh LNG Cyprus Limited’s, Höegh LNG Egypt LLC’s, Höegh LNG FSRU IV Ltd.’s, Höegh LNG Colombia S.A.S.’s rights under their respective time charters and earnings and a pledge of the Borrower’s and Guarantor’s cash accounts. The Partnership and its subsidiaries have provided a pledge of shares in Hoegh LNG Cyprus Limited, Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S., and Höegh LNG has provided a pledge of its shares in Höegh LNG Egypt LLC as security for the facility. The senior secured term loan related to the $385 million facility includes a commercial tranche and the export credit tranche. Each tranche is divided into two term loans for each of the Höegh Gallant and the Höegh Grace . On January 31, 2019, the Partnership drew $320 million under the commercial and the export credit tranches on the $385 million facility to settle $303.2 million and $1.6 million of the outstanding balance and accrued interest, respectively, on the Gallant/Grace facility and used proceeds of $5.5 million to pay arrangement fees due under the $385 million facility. The remaining proceeds of $9.6 million were used for general partnership purposes. On August 12, 2019, the Partnership drew $48.3 million under the revolving credit tranche of the $385 million facility, of which $34.0 million was used to repay part of the outstanding balance on the $85 million revolving credit facility due to Höegh LNG. The commercial tranche and the revolving credit tranche related to the $385 million facility have an interest rate of LIBOR plus a margin of 2.30%. The commitment fee on the undrawn portion of the revolving credit tranche is approximately 1.6%. The interest rate for the export credit tranche related to the $385 million facility have fixed interest rates and guarantee commissions of 3.98% and 3.88% on the term loans related to the Höegh Gallant and the Höegh Grace , respectively. The commercial tranche is repayable quarterly with a final balloon payment of $136.1 million due in January 2026. The term loans for export credit tranche related to the Höegh Gallant and the Höegh Grace are repayable in quarterly installments with the final payments in October 2026 and April 2028, respectively, assuming the balloon payments of the commercial tranches are refinanced. If not, the export credit agent can exercise a prepayment right for repayment of the total outstanding balance on both the terms loans of the export credit tranche of $9.5 million upon maturity of the commercial tranche. Any outstanding balance on the revolving credit facility is due in full in January 2026. The weighted average interest rate, excluding the impact of the associated interest rate swaps, for the year ended December 31, 2019 was 4.7%. The primary financial covenants under the $385 million facility are as follows: · The Partnership must maintain o Consolidated book equity (excluding hedge reserves and mark to market value of derivatives) equal to the greater of · 25% of total assets, and · $150 million o Consolidated working capital (current assets, excluding intercompany receivables and marked-to-market value of any financial derivative, less current liabilities, excluding intercompany payables, marked-to-market value of any financial derivative and the current portion of long-term debt) shall at all time be greater than zero o Minimum liquidity (cash and cash equivalents and available draws under a bank credit facility for a term of more than 12 months) equal to the greater of · $15 million, and · $2.5 million multiplied by the number of vessels owned or leased by the Partnership (prorated for partial ownership), subject to a cap of $20 million o A ratio of combined EBITDA for the Vessel Owners to debt service (principal repayments, guarantee commission, commitment fees and interest expense) for the preceding twelve months of a minimum of 115% As of December 31, 2019, the Borrower and the Vessel Owners were in compliance with the financial covenants. In addition, a security maintenance ratio based on the aggregate market value of the Höegh Gallant , the Höegh Grace and any additional security must be at least 125% of the aggregate outstanding loan balance. If the security maintenance ratio is not maintained, the relevant Borrower has 30 days to provide more security or to repay part of the loan to be in compliance with the ratio no later than 30 days after notice from the lenders. Under the $385 million facility, cash accounts are freely available for the use of the Borrower and the guarantors, unless there is an event of default. Events of default include, among other things, change of control of the Partnership due to the failure of Höegh LNG to own at least 25% of the Partnership’s common units. Cash can be distributed as dividends or to service loans of owners and affiliates provided that after the distribution the Borrower and the guarantors would remain in compliance with the financial covenants. The $385 million facility limits, among other things, the ability of the Borrower and the guarantors to change their business, grant liens on the Höegh Gallant or the Höegh Grace , incur additional indebtedness that is not at pari passu with the $385 million facility, enter into intercompany debt that is not subordinated to the $385 million facility and for the Vessel Owners to make investments or acquisitions. The principal on long-term debt outstanding as of December 31, 2019 was repayable as follows: (in thousands of U.S. dollars) Total 2020 $ 44,660 2021 123,557 2022 25,597 2023 25,597 2024 25,597 2025 and thereafter 221,116 Total $ 466,124 The table includes the maturity of the FSRU tranche of the Lampung facility in 2021 and assumes the exercise of the prepayment right for the export credit tranche of the Lampung facility in the same period. |
Accrued liabilities and other p
Accrued liabilities and other payables | 12 Months Ended |
Dec. 31, 2019 | |
Accrued liabilities and other payables | |
Accrued liabilities and payables | 14. Accrued liabilities and other payables As of December 31, (in thousands of U.S. dollars) 2019 2018 Accrued operating and administrative expenses $ 3,314 $ 3,004 Accrued property tax 3,033 — Accrued interest 2,850 — Current tax payable 818 1,375 Refund liabilities (note 5) 125 1,834 Current portion of advance for refundable value added tax — 429 Lease liability (note 2 and note 11) 75 — Other accruals and payables 949 816 Total accrued liabilities and other payables $ 11,164 $ 7,458 Refer to note 5 for additional information on the refund liability to charterers. During 2019, the advance from the charterer for refundable value added tax was fully repaid. On January 1, 2019, the Partnership adopted the new leasing standard. Refer to notes 2 and 11. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions | |
Related party transactions | 15. Related party transactions Income (expenses) from related parties As described in Related party agreements below, subsidiaries of Höegh LNG have provided administrative services to the Partnership and ship management and/or technical support services for the PGN FSRU Lampung , the Höegh Gallant and the Höegh Grace . Amounts included in the consolidated statements of income for the years ended December 31, 2019, 2018 and 2017 or included in the consolidated balance sheets as of December 31, 2019 and 2018 are as follows: (in thousands of U.S. dollars) 2019 2018 2017 Revenues Time charter revenue Höegh Gallant (1) $ 47,173 47,108 $ 46,382 Time charter and construction contract revenues indemnified by/refunded to Höegh LNG (2) — — (2,496) Operating expenses Vessel operating expenses (3) (24,523) (21,520) (21,124) Hours, travel expense and overhead (4) and Board of Directors’ fees (5) (4,072) (3,671) (3,284) Financial (income) expense Interest income from joint ventures (6) 295 273 370 Interest expense and commitment fees to Höegh LNG (7) (1,882) (2,938) (3,934) Total $ 16,991 19,252 $ 15,914 As of Balance sheet December 31, (in thousands of U.S. dollars) 2019 2018 Equity Cash contribution from Höegh LNG (8) $ — $ 1,701 Repayment of indemnification received from Höegh LNG (8) (64) (2,353) Issuance of units for Board of Directors’ fees (5) 194 200 Other and contribution from owner (9) 485 472 Total $ 615 $ 20 1) Time charter revenue Höegh Gallant: A subsidiary of Höegh LNG, EgyptCo, leases the Höegh Gallant . 2) Time charter revenues indemnified by/ refunded to Höegh LNG: As described under “Indemnifications” below, the Partnership refunded to Höegh LNG certain previous indemnification payments in 2017. 3) Vessel operating expenses: Subsidiaries of Höegh LNG provides ship management of vessels, including crews and the provision of all other services and supplies. 4) Hours, travel expenses and overhead: Subsidiaries of Höegh LNG provide management, accounting, bookkeeping and administrative support under administrative service agreements. These services are charges based upon the actual hours incurred for each individual as registered in the time-write system based on a rate which includes a provision for overhead and any associated travel expenses. 5) Board of Directors’ fees: Total Board of Directors’ fees were $496, $501 and $467 for the years ended December 31, 2019, 2018 and 2017, respectively. Part of the compensation is awarded as common units of the Partnership. Effective June 4, 2019, a total of 11,180 common units of the Partnership were awarded to non-employee directors as compensation of $194 for part of directors’ fees for 2019 under the Höegh LNG Partners LP Long Term Incentive Plan. Effective June 6, 2018 and May 22, 2017, a total of 11,050 and 9,805 common units, respectively, of the Partnership were awarded to non-employee directors as compensation of $200 and $189, respectively, for part of directors’ fees for 2018 and 2017. The awards were recorded as administrative expense and as an issuance of common units. Common units are recorded when issued. 6) Interest income from joint ventures: The Partnership and its joint venture partners have provided subordinated financing to the joint ventures as shareholder loans. Interest income for the Partnership’s shareholder loans to the joint ventures is recorded as interest income. 7) Interest expense and commitment fees to Höegh LNG and affiliates: Höegh LNG and its affiliates provided an $85 million revolving credit facility for general partnership purposes. The Partnership incurred a commitment fee on the undrawn balance until January 29, 2018 and an interest expense on the drawn balance. A seller’s credit note to finance part of the Höegh Gallant acquisition incurred interest expense until it was repaid in October 2017. 8) Cash contribution from/ distribution to Höegh LNG: As described under “Indemnifications” below, Höegh LNG made indemnification payments to the Partnership or received refunds of indemnification from the Partnership which were recorded as contributions or distributions to equity. 9) Other and contribution from owner: Höegh LNG granted share-based incentives to certain key employees whose services benefit the Partnership. Related expenses are recorded as administrative expenses and as a contribution from owner since the Partnership is not invoiced for this employee benefit. Effective March 21, 2019 and September 14, 2018, the Partnership granted or extended the terms for 10,917 and 28,018 phantom units, respectively, to the Chief Executive Officer and Chief Financial Officer of the Partnership. Related expenses are recorded as an administrative expense and as increase in equity. Acquisitions from Höegh LNG: Effective January 1, 2017 and December 1, 2017, the Partnership acquired a 51% and a 49% interest in the Höegh Grace entities from Höegh LNG. Refer to note 3. The Partnership’s Board of Directors (the “Board”) and the Conflicts Committee of the Board (the “Conflicts Committee”) approved the purchase prices for the acquisitions. The Conflicts Committee retained financial advisors to assist with its evaluation of the transactions. Dividends to Höegh LNG: The Partnership has declared and paid quarterly distributions totaling $28.4 million, $28.2 million and $27.0 million to Höegh LNG for each of the years ended December 31, 2019, 2018 and 2017, respectively. Receivables and payables from related parties Amounts due from affiliates As of December 31, (in thousands of U.S. dollars) 2019 2018 Amounts due from affiliates $ 4,296 $ 4,328 The amount due from affiliates is a receivable for time charter hire from a subsidiary of Höegh LNG, EgyptCo, for the Höegh Gallant time charter. The time charter hire is due 18 days from the receipt of the invoice. Time charter hire is invoiced at the end of the month in arrears. Amounts, loans and promissory note due to owners and affiliates As of December 31, (in thousands of U.S. dollars) 2019 2018 Amounts due to owners and affiliates $ 2,513 $ 2,301 As of December 31, 2019 and 2018 amounts due to owners and affiliates principally relate to trade payables for services provided by subsidiaries of Höegh LNG. Revolving credit facility As of December 31, (in thousands of U.S. dollars) 2019 2018 Revolving credit facility $ 8,792 $ 39,292 In August 2014, upon the closing of the IPO, the Partnership entered into an $85 million revolving credit facility with Höegh LNG, to be used to fund acquisitions and working capital requirements of the Partnership. The credit facility is unsecured and was repayable on January 1, 2020. On May 28, 2019, the repayment date on the $85 million revolving credit facility was extended to January 1, 2023 and the terms amended for the interest rate to be LIBOR plus a margin of 1.4% in 2019, 3.0% in 2020 and 4.0% thereafter. The outstanding revolving credit facility had a weighted average interest rate for the years ended December 31, 2019 and 2018 of 6.6% and 6.3%, respectively Related party agreements In connection with the IPO the Partnership entered into several agreements including: (i) An $85 million revolving credit facility with Höegh LNG, which was undrawn at the closing of the IPO; (ii) An omnibus agreement with Höegh LNG, the general partner, and Höegh LNG Partners Operating LLC (the “operating company”) governing, among other things: a. To what extent the Partnership and Höegh LNG may compete with each other; b. The Partnership’s rights of first offer on certain FSRUs and LNG carriers operating under charters of five or more years; and c. Höegh LNG’s provision of certain indemnities to the Partnership. (iii) An administrative services agreement with Hoegh LNG Services Ltd., UK (“Höegh UK”), pursuant to which Höegh UK provided certain administrative services to the Partnership. This agreement expired during 2019; and (iv) Höegh UK entered into administrative services agreements with Höegh LNG AS (“Höegh Norway”) and Leif Höegh (U.K.) Limited, pursuant to which Höegh Norway and Leif Höegh (U.K.) Limited provided Höegh UK certain administrative services. Additionally, the operating company entered into an administrative services agreement with Leif Höegh (U.K.) Limited to allow Leif Höegh (U.K.) Limited to provide services directly to the operating company. Each of these agreements expired, or were terminated by mutual agreement, during 2019. Existing agreements remained in place following the IPO for provision of certain services to the Partnership’s vessel owning joint ventures or entity, of which the material agreements are as follows: · The joint ventures are parties to ship management agreements with Höegh LNG Fleet Management AS (“Höegh LNG Management”) pursuant to which Höegh LNG Management provides the joint ventures with technical and maritime management and crewing of the Neptune and the Cape Ann , and Höegh Norway is a party to a sub-technical support agreement with Höegh LNG Management pursuant to which Höegh LNG Management provides technical support services with respect to the PGN FSRU Lampung ; and · The joint ventures are parties to commercial and administration management agreements with Höegh Norway, and PT Hoegh LNG Lampung is a party to a technical information and services agreement with Höegh Norway. Subsequent to the IPO, the Partnership has acquired vessel owning entities. Existing agreements remained in place following the acquisition for the time charter of the Höegh Gallant and receipt of certain services, of which the material agreements are as follows: · Hoegh LNG Cyprus Limited acting through its Egyptian Branch has a Lease and Maintenance Agreement (the “time charter”) with EgyptCo for the lease and maintenance of the Höegh Gallant and the provision of crew and certain ship management services for a combined daily hire rate. The time charter started in April 2015 with an expiration date in April 2020; and · Hoegh LNG Cyprus Limited acting through its Egyptian Branch is party to a ship management agreement with Höegh LNG Management pursuant to which Höegh LNG Management provides the technical management of the Höegh Gallant , and Hoegh LNG Maritime Management Pte. Ltd. (“Höegh Maritime Management”) is a party to a secondment agreement, as amended, with Hoegh LNG Cyprus Limited pursuant to which Höegh Maritime Management provides qualified crew for the Höegh Gallant ; · Hoegh LNG Cyprus Limited acting through its Egyptian Branch is party to a management agreement with Höegh Norway, pursuant to which Höegh Norway provides administrative, commercial and technical management services, each as instructed from time to time by Hoegh LNG Cyprus Limited. Existing agreements remained in place for the time charter of the Höegh Grace following the acquisition and receipt of certain services, of which the material agreements are as follows: · a ship management agreement with Höegh LNG Management pursuant to which Höegh LNG Management provides technical and maritime management services; · a manning agreement with Höegh Fleet Services Philippines Inc. to recruit and engage crew for the vessel; · a technical services agreement with Höegh Norway to provide technical services for the vessel; · a management consulting agreement with Höegh Norway to provide support related to certain management activities; · a crew recruitment consulting services agreement with Höegh Maritime Management to provide professional consulting services in connection with recruitment of crew and other employees; · an agreement for provision of professional payment services with Höegh Maritime Management to provide services in connection with the payment of monthly salaries to the crew and employees working on the vessel; and · a spare parts procurement and insurance services agreement with Höegh LNG Management to arrange for the supply of spare parts and the insurance coverage for the vessel. In December 2019, the Partnership and the operating company entered an administrative services agreement with Höegh Norway, pursuant to which Höegh Norway provides certain administrative services to the Partnership. Indemnifications Environmental indemnifications: Under the omnibus agreement, Höegh LNG agreed to indemnify the Partnership until August 12, 2019 against certain environmental and toxic tort liabilities with respect to the assets contributed or sold to the Partnership to the extent arising prior to the time they were contributed or sold to the Partnership. No indemnification claims were filed for environmental liabilities under the agreement prior to its expiration. Other indemnifications: Under the omnibus agreement Höegh LNG also agreed to indemnify the Partnership for losses: 1. related to certain defects in title to the assets contributed or sold to the Partnership and any failure to obtain, prior to the time they were contributed to the Partnership, certain consents and permits necessary to conduct the business, which liabilities arose within three years after the closing of the IPO; 2. related to certain tax liabilities attributable to the operation of the assets contributed or sold to the Partnership prior to the time they were contributed or sold; 3. in the event that the Partnership did not receive hire rate payments under the PGN FSRU Lampung time charter for the period commencing on August 12, 2014 through the earlier of (i) the date of acceptance of the PGN FSRU Lampung or (ii) the termination of such time charter. The Partnership was indemnified by Höegh LNG for the September and October 2014 invoices not paid by PGN LNG in 2014 (refer to note 18); 4. with respect to any obligation to pay liquidated damages to PGN LNG under the PGN FSRU Lampung time charter for failure to deliver the PGN FSRU Lampung by the scheduled delivery date set forth in the PGN FSRU Lampung time charter; 5. with respect to any non-budgeted expenses (including repair costs) incurred in connection with the PGN FSRU Lampung project (including the construction of the Mooring) occurring prior to the date of acceptance of the PGN FSRU Lampung pursuant to the time charter; and 6. pursuant to a letter agreement dated August 12, 2015, Höegh LNG confirmed that the indemnification provisions of the omnibus agreement include indemnification for all non-budgeted, non-creditable Indonesian value added taxes and non-budgeted Indonesian withholding taxes, including any related impact on cash flow from PT Hoegh LNG Lampung and interest and penalties associated with any non-timely Indonesian tax filings related to the ownership or operation of the PGN FSRU Lampung and the Mooring whether incurred (i) prior to the closing date of the IPO, (ii) after the closing date of the IPO to the extent such taxes, interest, penalties or related impact on cash flows relate to periods of ownership or operation of the PGN FSRU Lampung and the Mooring and are not subject to prior indemnification payments or deemed reimbursable by the charterer under its audit of the taxes related to the PGN FSRU Lampung time charter for periods up to and including June 30, 2015, or (iii) after June 30, 2015 to the extent withholding taxes exceed the minimum amount of withholding tax due under Indonesian tax regulations due to lack of documentation or untimely withholding tax filings. For the years ended December 31, 2018 and 2017, the Partnership received indemnification payments from Höegh LNG for non-budgeted expenses (including warranty provisions, other non-budgeted expenses and replacement capital expenditure) of $0.9 million and $1.6 million, respectively, which were recorded as a contribution to equity. Indemnification payments received from Höegh LNG are subject to repayment to the extent the amounts are subsequently recovered from insurance or deemed reimbursable by the charterer. For the year ended December 31, 2019 and 2018, the Partnership refunded to Höegh LNG approximately $0.1 million and $2.4 million, respectively, related to insurance proceeds received related to the warranty provision and costs for previous years determined to be reimbursable by the charterer. For the year ended December 31, 2017, the Partnership refunded to Höegh LNG approximately $2.5 million related to previously recognized revenue from 2014 that was deemed reimbursable in 2017 and an additional cost recovery of $1.5 million, which was recorded as a cash distribution from equity. Refer to note 18. Under the contribution, purchase and sale agreement entered into with respect to the purchase of the Höegh Gallant entities , Höegh LNG will indemnify the Partnership for: 1. losses from breach of warranty; 2. losses related to certain environmental and tax liabilities attributable to the operation of the Höegh Gallant prior to the closing date; 3. all capital gains tax or other export duty incurred in connection with the transfer of the Höegh Gallant outside of Höegh LNG Cyprus Limited’s permanent establishment in a Public Free Zone in Egypt; 4. any recurring non-budgeted costs owed to Höegh LNG Management with respect to payroll taxes; 5. any non-budgeted losses suffered or incurred in connection with the commencement of services under the time charter with EgyptCo or EgyptCo’s time charter with EGAS; and 6. liabilities under the Gallant/Grace facility not attributable to the Höegh Gallant. Additionally, Höegh LNG has guaranteed the payment of hire by EgyptCo pursuant to the time charter for the Höegh Gallant under certain circumstances. For the years ended December 31, 2018 and 2017, the Partnership received indemnification payments from Höegh LNG for losses incurred in connection with the time charter with EgyptCo of $0.5 million and $0.5 million, respectively, which were recorded as contributions to equity. Refer to note 18. Pursuant to an option agreement, the Partnership has the right to cause Höegh LNG to charter the Höegh Gallant from the expiration of the EgyptCo charter until July 2025. Under the contribution, purchase and sale agreements entered into with respect to the acquisitions of the 51% and 49% ownership interests in the Höegh Grace entities, Höegh LNG will indemnify the Partnership for: 1. losses from breach of warranty; 2. losses related to certain environmental liabilities, damages or repair costs and tax liabilities attributable to the operation of the Höegh Grace prior to the closing date; 3. any recurring non-budgeted costs owed to tax authorities with respect to payroll taxes, taxes related to social security payments, corporate income taxes (including income tax for equality and surcharge on income tax for equality), withholding tax, port associations, local Cartagena tax, and financial transaction tax, including any penalties associated with taxes to the extent not reimbursed by the charterer; 4. any non-budgeted losses suffered or incurred in connection with commencement of services under the Höegh Grace charter with SPEC; and 5. any losses suffered or incurred in relation to the performance guarantee the Partnership provided with respect to the Höegh Grace charter, up to Höegh LNG’s pro rata share of such losses, based on its remaining ownership interest in Höegh LNG Colombia Holding Ltd. This provision is not applicable after December 1, 2019, when the Partnership acquired the remaining 49% interest in the Höegh Grace entities. On September 27, 2017, the Partnership entered into an indemnification agreement with Höegh LNG with respect to the boil-off claims under the Neptune and Cape Ann time charters, pursuant to which Höegh LNG will, among other things, indemnify the Partnership for its share of any losses and expenses related to or arising from the failure of either Neptune or Cape Ann to meet the performance standards related to the daily boil-off of LNG under their respective time charters (including any cash impact that may result from any settlement with respect to such claims, including any reduction in the hire rate under either time charter.) For the year ended December 31, 2018 the Partnership received indemnification payments of $0.3 million from Höegh LNG. Indemnification payments were recorded as contributions to equity. Refer to note 18. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments | |
Financial Instruments | 16. Financial Instruments Fair value measurements The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and cash equivalents, restricted cash and cash designated for acquisition – The fair value of the cash, cash equivalents, and restricted cash approximates its carrying amounts reported in the consolidated balance sheets. Amounts due from (to) owners and affiliates – The fair value of the non-interest bearing receivables or payables approximates their carrying amounts reported in the consolidated balance sheets since the receivables or payables are to be settled consistent with trade receivables and payables. Derivative instruments – The fair values of the interest rates swaps are estimated based on the present value of cash flows over the term of the instruments based on the relevant LIBOR interest rate curves, adjusted for the subsidiary’s credit worthiness and the credit worthiness of the counterparty to the derivative. Advances (shareholder loans) to joint ventures – The fair values of the fixed rate subordinated shareholder loans are estimated using discounted cash flow analyses based on rates currently available for debt with similar terms and remaining maturities and the current credit worthiness of the joint ventures. Lampung, Gallant, Grace and $385 million facilities – The fair values of the variable rate debt are estimated based on the present value of cash flows over the term of the instruments based on the estimated currently available margins and LIBOR interest rates as of the balance sheet date for debt with similar terms and remaining maturities and the current credit worthiness of the Partnership. Revolving credit due to owners and affiliates – The fair value of the variable rate debt is estimated based on the present value of cash flows over the term of the instruments based on the estimated currently available margins and LIBOR interest rates as of the balance sheet date for debt with similar terms and remaining maturities and the current credit worthiness of the Partnership. The fair value estimates are categorized by a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the financial instruments that are not accounted for at a fair value on a recurring basis. Trade payables and receivables for which the estimated fair values are equivalent to carrying values are not specified below. As of As of December 31, 2019 December 31, 2018 Carrying Fair Carrying Fair amount value amount value Asset Asset Asset Asset (in thousands of U.S. dollars) Level (Liability) (Liability) (Liability) (Liability) Recurring: Cash and cash equivalents 1 $ 39,126 39,126 26,326 $ 26,326 Restricted cash 1 20,693 20,693 19,128 19,128 Derivative instruments 2 (14,935) (14,935) (1,498) (1,498) Other: Amounts due from affiliate 2 4,296 4,296 4,328 4,328 Advances (shareholder loans) to joint ventures 2 3,831 4,029 3,536 3,579 Current amounts due to owners and affiliates 2 (2,513) (2,513) (2,301) (2,301) Lampung facility 2 (112,713) (119,598) (130,275) (142,087) Gallant facility 2 — — (140,812) (141,538) Grace facility 2 — — (164,458) (164,210) $385 million facility 2 (344,248) (352,219) — — Revolving credit facility due to owners and affiliates 2 $ (8,792) (8,717) (39,292) $ (38,999) Financing Receivables The following table contains a summary of the loan receivables by type of borrower and the method by which the credit quality is monitored on a quarterly basis: Class of Financing Receivables Credit Quality As of December 31, (in thousands of U.S. dollars) Indicator Grade 2019 2018 Trade receivable Payment activity Performing $ 735 $ 1,228 Amounts due from affiliate Payment activity Performing 4,296 4,328 Advances/ loans to joint ventures Payment activity Performing $ 3,831 $ 3,536 The shareholder loans to joint ventures are classified as advances to joint ventures in the consolidated balance sheet. Refer to note 10. |
Risk management and concentrati
Risk management and concentrations of risk | 12 Months Ended |
Dec. 31, 2019 | |
Risk management and concentrations of risk | |
Risk management and concentrations of risk | 17. Risk management and concentrations of risk Derivative instruments can be used in accordance with the overall risk management policy. Interest rate risk, derivative instruments and cash flow hedges Cash flow hedging strategy The Partnership is exposed to fluctuations in cash flows from floating interest rate exposure on its long-term debt used principally to finance its vessels. Interest rate swaps are used for the management of the floating interest rate risk exposure. The interest rate swaps have the effect of converting a portion of the outstanding debt from a floating to a fixed rate over the life of the interest rate swaps. Interest rate swaps exchange a receipt of floating interest for a payment of fixed interest which reduce the exposure to interest rate variability on the Partnership’s outstanding floating-rate debt over the life of the interest rate swaps. As of December 31, 2019, there are interest rate swap agreements related to the Lampung facility (“Lampung interest rate swaps”) and the commercial tranche of the $385 million facility (“$385 million interest rate swaps”) floating rate debt that are designated as cash flow hedges for accounting purposes. As of December 31, 2018, there were interest rate swap agreements related to the Lampung and $385 million facilities floating rate debt that were designated as cash flow hedges for accounting purposes. In addition, there were interest rate swap agreements related to the Gallant and Grace facilities floating rate debt. Hedge accounting was discontinued in the fourth quarter of 2018 for these interest rate swaps as a result of firm commitment for the refinancing of the Gallant and Grace facilities which was planned to occur in January 2019. As of January 31, 2019, the commercial and export credit tranches of the $385 million facility were drawn, and the Gallant and Grace facilities were repaid. The interest rate swaps related to the Gallant and Grace facilities were also terminated on the same date. As of December 31, 2019, the following interest rate swap agreements were outstanding: Fair value Fixed Interest carrying interest rate Notional amount rate (in thousands of U.S. dollars) index amount liability Term (1) LIBOR-based debt Lampung interest rate swaps (2) LIBOR $ 117,022 $ (3,610) Sep 2026 2.800 % $385 million facility swaps (2) LIBOR $ 61,478 $ (3,241) Jan 2026 2.941 % $385 million facility swaps (2) LIBOR $ 61,478 $ (2,909) Oct 2025 2.838 % $385 million facility swaps (2) LIBOR $ 61,478 $ (2,699) Jan 2026 2.735 % $385 million facility swaps (2) LIBOR $ 61,478 $ (2,476) Jan 2026 2.650 % 1) Excludes the margins paid on the floating-rate debt. 2) All interest rate swaps are U.S. dollar denominated and the notional amount reduces quarterly from the effective date of the interest rate swaps. The Borrower under the Lampung facility entered five forward starting swap agreements with identical terms for a total notional amount of $237.1 million with an effective date of March 17, 2014. The swaps amortize over 12 years to match the amortization profile of the Lampung facility and subsequent financing and exchange 3‑month USD LIBOR variable interest payments for fixed rate payments at 2.8%. The interest rate swaps were designated for accounting purposes as cash flow hedges of the variable interest payments on the Lampung facility and subsequent financing. As of December 29, 2014, a prepayment of $7.9 million on the Lampung facility occurred which resulted in an amendment of the original interest rate swaps and the hedge was de-designated for accounting purposes. The other terms of the amended interest rate swaps did not change but the nominal amount of the interest rate swaps was reduced to match the outstanding debt. The amended interest rate swaps were re-designated as a cash flow hedge for accounting purposes. As of October 1, 2015, the Partnership acquired the Höegh Gallant entities which had outstanding debt under the Gallant facility and three associated interest rate swap agreements with a total notional amount of $146.3 million. The swaps amortized to match the debt amortization of the Gallant facility until the scheduled repayment date in September 2019. The swaps exchanged 3 month USD LIBOR variable interest payments for fixed rate payments ranging from 1.9105% to 1.9145%. As of October 1, 2015, the interest rate swaps were designated for accounting purposes as cash flow hedges of the variable interest payments for $146.3 million of the commercial tranches of the Gallant facility. Hedge accounting was discontinued in the fourth quarter of 2018 as a result of firm commitment for the refinancing of the Gallant facility which was planned to occur in January 2019. Effective as of January 1, 2017, the Partnership acquired the Höegh Grace entities which had outstanding debt under the Grace facility and three associated interest rate swap agreements with a total notional amount of $164.0 million. The swaps amortized to match the debt amortization of the Grace facility until the scheduled repayment date in June 2020. The swaps exchanged 3 month USD LIBOR variable interest payments for fixed rate payments ranging from 2.305% to 2.315%. As of January 1, 2017, the interest rate swaps were designated for accounting purposes as cash flow hedges of the variable interest payments for $164.0 million of the commercial tranches of the Grace facility. Hedge accounting was discontinued in the fourth quarter of 2018 as a result of firm commitment for the refinancing of the Grace facility which was planned to occur in January 2019. As of December 31, 2018, the Partnership had entered into forward starting interest rate swaps with a nominal amount of $130.0 million to hedge part of the interest rate risk on the floating element of the interest rate for the commercial tranches of the $385 million facility. The Partnership makes fixed payments of 2.941% and 2.838%, based on a nominal amount of $65.0 million for each, in exchange for floating payments. The interest rate swaps were designated for accounting purposes as cash flow hedges of the variable interest payments for $130.0 million of the commercial tranches of the $385 million facility which was expected to be drawn and was drawn on January 31, 2019. In February 2019, the Partnership entered into interest rate swaps related to the $385 million facility with a nominal amount of $127.7 million for which the Partnership makes fixed payments of 2.650% and 2.735% based on nominal amount of $63.8 million for each. The interest rate swaps were designated for accounting purposes as cash flow hedges of the variable interest payments for $127.7 million of the commercial tranches of the $385 million facility. The export credit tranches have a fixed interest rate and, therefore, no variability in cash flows as a result of changes in interest rates. The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the consolidated balance sheets. Current Long-term Current Long-term assets: assets: liabilities: liabilities: derivative derivative derivative derivative (in thousands of U.S. dollars) instruments instruments instruments instruments As of December 31, 2019 Interest rate swaps $ — $ — $ (2,907) $ (12,028) As of December 31, 2018 Interest rate swaps $ 1,199 $ — $ (259) $ (2,438) The following effects of cash flow hedges relating to interest rate swaps are included in gain (loss) on derivative instruments in the consolidated statements of income for the year ended December 31, 2019. Year ended December 31, 2019 Income tax (in thousands of U.S. dollars) Interest expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (956) $ — Amortization of amount excluded from hedge effectiveness 966 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (987) 389 Settlement of cash flow hedge 199 — Total gains (losses) on derivative instruments $ (778) $ 389 The settlement of cash flow hedge related to the interest rate swaps for Gallant/Grace facility. The Gallant/Grace interest rate swaps were terminated when the facility was extinguished on January 31, 2019. Due to the termination, the counterparties of the Gallant/Grace interest rate swaps paid settlement amounts resulting in a gain on the settlement of the cash flow hedge. The following effects of cash flow hedges relating to interest rate swaps are included in total gains (losses) on derivative instruments in the consolidated statements of income for the years ended December 31, 2018 and 2017. Year ended December 31, (in thousands of U.S. dollars) 2018 2017 Interest rate swaps: Ineffective portion of cash flow hedge $ (990) $ (2) Amortization of amount excluded from hedge effectiveness 2,969 3,320 Reclassification discontinued hedge from OCI 3,557 — Reclassification from accumulated other comprehensive income (855) (855) Unrealized gains (losses) 4,681 2,463 Realized gains (losses) — — Total gains (losses) on derivative instruments $ 4,681 $ 2,463 For the year ended December 31, 2018, the reclassification to earnings from OCI for the discontinued cash flow hedges relates to Gallant/Grace facility which was to be refinanced on January 31, 2019. The accumulated other comprehensive income balance for the cash flow hedge is reclassified to earnings when the hedged future cash flows are no longer expected to occur. The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income, changes in accumulated other comprehensive income (“OCI”) and on earnings is as follows as of and for the year ended December 31, 2019. Cash Flow Hedge Accumulated other comprehensive income Earnings Before tax Accumulated gains Tax benefit OCI: Net of Interest Tax (in thousands of U.S. dollars) (losses) (expense) tax expense benefit Accumulated OCI as of December 31, 2018 $ (5,902) 565 $ (5,337) Initial value of interest rate swap to be recognized in earnings on amortization approach (625) — (625) Effective portion of unrealized loss on cash flow hedge (13,535) — (13,535) Reclassification from accumulated other comprehensive income included in hedge effectiveness 956 — 956 (956) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 987 (389) 598 (987) 389 Other comprehensive income for period (12,217) (389) (12,606) Accumulated OCI as of December 31, 2019 $ (18,119) 176 $ (17,943) Gain (loss) reclassified to earnings $ (1,943) $ 389 The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income and changes in accumulated other comprehensive income (“OCI”) is as follows as of and for the years ended December 31, 2018 and 2017. Cash Flow Hedge Before tax Tax benefit Accumulated (in thousands of U.S. dollars) gains (losses) (expense) Net of tax OCI Balance as of December 31, 2016 $ (6,947) 1,211 (5,736) $ (5,736) Effective portion of unrealized loss on cash flow hedge 2,480 — 2,480 2,480 Reclassification of amortization of cash flow hedge to earnings 855 (347) 508 508 Other comprehensive income for period 3,335 (347) 2,988 2,988 Balance as of December 31, 2017 $ (3,612) 864 (2,748) $ (2,748) Balance as of December 31, 2017 $ (3,612) 864 (2,748) $ (2,748) Effective portion of unrealized loss on cash flow hedge 412 — 412 412 Reclassification of amortization of cash flow hedge to earnings 855 (299) 556 556 Reclassification of discontinued cash flow hedge to earnings (3,557) — (3,557) (3,557) Other comprehensive income for period (2,290) (299) (2,589) (2,589) Balance as of December 31, 2018 $ (5,902) 565 (5,337) $ (5,337) As of December 31, 2019, the estimated amounts to be reclassified from accumulated other comprehensive income to earnings during the next twelve months is $3.2 million. Foreign exchange risk All financing, interest expenses from financing and most of the Partnership’s revenue and expenditures for vessel improvements are denominated in U.S. dollars. Certain operating expenses can be denominated in currencies other than U.S. dollars. For the years ended December 31, 2019, 2018 and 2017, no derivative instruments have been used to manage foreign exchange risk. Credit risk Credit risk is the exposure to credit loss in the event of non-performance by the counterparties related to cash and cash equivalents, restricted cash, trade receivables, amounts due from affiliates and interest rate swap agreements. Further, the Partnership has future exposure for Höegh LNG’s ability to make payments to the Partnership for future time charter hire under the option exercised for the Höegh Gallant and for indemnification payments related to the boil-off claim for the joint ventures. Refer to note 18. In order to minimize counterparty risk, bank relationships are established with counterparties with acceptable credit ratings at the time of the transactions. Credit risk related to receivables is limited by performing ongoing credit evaluations of the customers’ or counterparty’s financial condition. PGN guarantees PGN LNG’s obligations under the PGN FSRU Lampung time charter. The other time charters do not have parent company guarantees. Concentrations of risk Financial instruments, which potentially subject the Partnership to significant concentrations of credit risk, consist principally of cash and cash equivalents, restricted cash, trade receivables, amounts due from affiliates and derivative contracts (interest rate swaps). The maximum exposure to loss due to credit risk is the book value at the balance sheet date. The Partnership does not have a policy of requiring collateral or security. Cash and cash equivalents and restricted cash are placed with qualified financial institutions. Periodic evaluations are performed of the relative credit standing of those financial institutions. In addition, exposure is limited by diversifying among counterparties. There are three charterers so there is a concentration of risk related to trade receivables. Credit risk related to trade receivables is limited by performing ongoing credit evaluations of the customer’s financial condition. No allowance for doubtful accounts, or impairment loss, was recorded for the years ended December 31, 2019 and 2018. While the maximum exposure to loss due to credit risk is the book value of trade receivables at the balance sheet date, should the time charters for the PGN FSRU Lampung or the Höegh Grace terminate prematurely, or Höegh LNG prematurely terminate the Subsequent Charter for the Höegh Gallant , or the option to acquire the PGN FSRU Lampung be exercised , there could be delays in obtaining new time charters and the hire rates could be lower depending upon the prevailing market conditions. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and contingencies | |
Commitments and contingencies | 18. Commitments and contingencies Contractual commitments As of December 31, 2019, there were no material contractual purchase commitments. Claims and Contingencies Joint ventures claims and accruals Under the Neptune and the Cape Ann time charters, the joint ventures undertake to ensure that the vessel meets specified performance standards at all times during the term of the time charters. The performance standards include the vessel not exceeding a maximum average daily boil-off of LNG, subject to certain contractual exclusions, as specified in the time charter. Pursuant to the charters, the hire rate is subject to deduction by the charterer by, among other things, sums due in respect of the joint ventures’ failure to satisfy the specified performance standards during the period. The charterer requested that the joint ventures calculate and present the boil-off since the beginning of the charters, compared with maximum average daily boil-off allowed under the time charter. The charters for the Neptune and Cape Ann started in 2009 and 2010, respectively. On September 8, 2017, the charterer notified the joint ventures that it was formally making a claim for compensation in accordance with the provisions of the charters for a stated quantity of LNG exceeding the maximum average daily boil-off since the beginning for the charters. The claim asserted a gross amount of compensation of $58 million for the excess boil-off volume but the claim recognized that the calculations for the amount required adjustment for allowable exclusions under the charters. Accruals are recorded for loss contingencies or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. As of September 30, 2017, the joint ventures determined the liability associated with the boil-off claim was probable and could be reasonably estimated resulting in a total accrual of $23.7 million which was recorded as a reduction of time charter revenues in the third quarter of 2017. The Partnership’s 50% share of the accrual was approximately $11.9 million, which remained unchanged as of December 31, 2017. As a precaution, the joint ventures have suspended payments on their shareholder loans as of September 30, 2017 pending the outcome of the boil-off claim. Refer to note 10. The charterer and the joint ventures referred the claim to arbitration. The charterer’s claim as submitted in the arbitration request was for a gross amount of $52 million, covering a shorter time period for the time period for the first performance period as defined in the time charters, as well as interest and expenses. The charterer reserved it right to make a further claim with respect to subsequent performance periods. Subsequently, the charterer and the joint ventures asked the arbitration tribunal for a partial determination on certain key contractual interpretations and the proceedings commenced in November 2018. In March 2019, the tribunal’s determination was received. The determination did not cover all the questions of contractual interpretation on which there is disagreement between the parties. With the exception of one issue, the tribunal’s conclusions on the contractual interpretations were unambiguous. For the remaining issue related to the calculation of a deduction from the gross claim, the tribunal did not specify how the deduction should be determined. As a result, there remained significant uncertainty in the evaluation of the potential outcome of the boil-off claim. Based on the tribunal’s determination, the joint ventures updated their estimates to cover the period from the start of the time charters to December 31, 2018. Accordingly, the range of estimates is not directly comparable to the $52 million gross claim initially raised by the charterer through the end of the defined performance period. Depending on interpretations of the tribunal’s determination for the deduction to the gross claim and the other disputed contractual provisions, the joint ventures estimate that their aggregate liability associated with the boil-off claim is in the millions of dollars and could range between the mid-to-upper teens to the mid-$30’s, of which the Partnership’s share would be 50%. Based upon the additional information from the tribunal’s determination and updated estimates of the potential range of liability, the joint ventures concluded the existing accrual of $23.7 million continued to represent their best estimate of the probable liability as of December 31, 2018. Accordingly, the accrual was unchanged as of December 31, 2018. The Partnership’s 50% share of the accrual remained at approximately $11.9 million as of December 31, 2018. On June 14, 2019, the charterer served an updated claim submission for approximately $54 million to the tribunal, incorporating claims for the second performance period and certain other claims. The owners did not agree with the charterer’s claims or its interpretation of the deduction to the gross claim in accordance with the tribunal’s determination. The joint ventures assessed the additional information available and updated the estimates for the potential range of outcomes for each quarter during 2019.The joint ventures concluded the recorded accrual continued to be the best estimate within the range. The parties have continued discussions with the objective of reaching a negotiated solution to settle the boil-off claim. In February 2020, each of the joint ventures and the charterer reached a commercial settlement addressing all the past and future claims related to boil-off with respect to the Neptune and the Cape Ann . The settlement amount is in line with the accrual made by the joint ventures. Accordingly, the accrual was unchanged as of December 31, 2019. The settlement reached was subject to executing final binding agreements between the parties and the necessary board of directors’ and lenders’ approvals. The final settlement and release agreements were signed on and had an had an effective date of April 1, 2020. Refer to note 23. Among other things, the settlement provides that 1) the boil-off claim, up to the effective date of the settlement agreements, will be settled for an aggregate amount of $23.7 million, paid in instalments during 2020, 2) the costs of arbitration will be equally split between the parties and each party will settle its legal and other costs, 3) the joint ventures have or will implement technical upgrades on the vessels at their own cost to minimize boil-off, and 4) the relevant provisions of the time charters will be amended regarding the computation and settlement of prospective boil-off claims. Höegh LNG and the other major owner guarantee the performance and payment obligations of the joint ventures under the time charters. The Partnership will be indemnified by Höegh LNG for its share of the cash impact of the settlement, the arbitration costs and any legal expenses, the technical modifications of the vessels and any prospective boil-off claims or other direct impacts of the settlement agreement. The remaining costs to be incurred for the technical modifications of the vessels are estimated to be $0.8 million, of which the Partnership’s 50% share would be $0.4 million. Höegh LNG will indemnify the Partnership for the Partnership’s share of such costs. For the year ended December 31, 2018 the Partnership received indemnification payments of $0.3 million from Höegh LNG, related to the boil-off claim. Indemnification payments were recorded as contributions to equity. Refer to note 15. Indonesian corporate income tax Based upon the Partnership’ s experience in Indonesia, tax regulations, guidance and interpretation in Indonesia may not always be clear and may be subject to alternative interpretations or changes in interpretations over time. The Partnership's Indonesian subsidiary is subject to examination by the Indonesian tax authorities for the years from 2015 through 2018 for up to five years following the completion of a fiscal year. As a result, it is likely there will be an examination by the Indonesian tax authorities for the tax return for 2015 during 2020. For December 31, 2019, the Indonesian subsidiary plans to request a refund for overpayment of estimated taxes for 2019 when filing the 2019 tax return which will result in an automatic examination of the tax return for the year ended December 31, 2019. The examinations may lead to ordinary course adjustments or proposed adjustments to the Partnership’s taxes with respect to years under examination. In December 2018, the examination for the years 2013 and 2014 was completed. Refer to note 7 for additional information. Future examinations may or may not result in changes to the Partnership’ s provisions on tax filings from 2015 through 2019. As of December 31, 2019, the unrecognized tax benefits for uncertain tax positions were $2.3 million. Indonesian property tax The Partnership’s Indonesian subsidiary was assessed for Land and Building tax (“property tax”) and penalties of $3.0 million by the Indonesian authorities for the period from 2015 through 2019. The assessment was due to the issuance of the Indonesian Minister of Finance’s Decree No. 186/PMK.03/2019 (“PMK 186/2019”) which defines FSRUs as a “Building” subject to the tax. The Partnership’s Indonesian subsidiary plans to appeal the assessment. Depending on the level of appeal pursued, the appeal process could take a number of years to conclude. There can be no assurance of the result of the appeal or whether the Indonesian subsidiary will prevail. As a result, the property tax and penalties were expensed for the year ended December 31, 2019. Until the appeal is concluded, the Indonesian subsidiary will be required to pay an annual property tax of approximately $0.6 million. Property tax and penalties were reported as a component of vessel operating expense for the year ended December 31, 2019. PGN LNG claims including delay liquidated damages The Partnership was indemnified by Höegh LNG for i) any hire rate payments not received under the PGN FSRU Lampung time charter for the period commencing on August 12, 2014 through the acceptance date of the PGN FSRU Lampung and ii) non-budgeted expenses (including warranty costs associated with repairs of the Mooring) incurred in connection with the PGN FSRU Lampung project prior to the date of acceptance, and for iii) certain subsequently incurred non-budgeted costs and expenses. For the years ended December 31, 2018 and 2017, the Partnership received indemnification payments from Höegh LNG for non-budgeted expenses (including warranty provisions, other non-budgeted expenses and replacement capital expenditure) of $0.9 million and $1.6 million, respectively, which were recorded as a contribution to equity. Indemnification payments received from Höegh LNG are subject to repayment to the extent the amounts are subsequently recovered from insurance or deemed reimbursable by the charterer. For the year ended December 31, 2019 and 2018, the Partnership refunded to Höegh LNG approximately $0.1 million and $2.4 million, respectively, related to insurance proceeds received related to the warranty provision and costs for previous years determined to be reimbursable by the charterer. For the year ended December 31, 2017, the Partnership refunded to Höegh LNG approximately $2.5 million related to previously recognized revenue from 2014 that was deemed reimbursable in 2017 and an additional cost recovery of $1.5 million, which was recorded as a cash distribution from equity. Refer to note 15. Höegh Gallant claims and indemnification In the third quarter of 2017, the Partnership began investigating with EgyptCo a performance measure included in EgyptCo’s charter with respect to the Höegh Gallant. The investigation included whether such a performance measure is directly linked to a specified performance standard which could result in a customer claim for reduced hire or damages and legal basis for a potential claim, if any. No accrual was recorded. In October 2018, EgyptCo reached an agreement with EgyptCo’s charterer that there would be no reduction in hire for this performance measure. The Partnership was indemnified by Höegh LNG for losses incurred in connection with the commencement of services under the time charter with EgyptCo (including technical issues) incurred in connection with the Höegh Gallant . For the years ended December 31, 2018 and 2017, the Partnership received indemnification payments from Höegh LNG for losses incurred in connection with the time charter with EgyptCo of $0.5 million and $0.5 million, respectively, which were recorded as contributions to equity. Refer to note 15. |
Supplemental cash flow informat
Supplemental cash flow information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental cash flow information | |
Supplemental cash flow information | 19. Supplemental cash flow information Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Supplemental disclosure of non-cash investing activities Non-cash expenditures for vessel and other equipment $ — (229) $ — Non-cash acquisition of non-controlling interest for the remaining 49% interest in the Höegh Grace entities — — 41,362 Supplemental disclosure of non-cash financing activities Non-cash revolving credit facility draw for the acquisition of non-controlling interest for the remaining 49% interest in the Höegh Grace entities $ — — $ 41,362 Refer to note 3 for Business combinations. |
Issuance of common units and Se
Issuance of common units and Series A Preferred Units | 12 Months Ended |
Dec. 31, 2019 | |
Issuance of common units and Series A Preferred Units | |
Issuance of common units and Series A Preferred Units | 20. Issuance of common units and Series A Preferred Units From the commencement of the Prior ATM program in January 2018 through December 31, 2019, the Partnership sold 2,025,590. Series A preferred units and 306,266 common units and received net proceeds of $51.7 million and $5.6 million, respectively. The compensation paid to the Agent for such sales was $1.0 million. For the year ended December 31, 2019, the Partnership sold 53,160 common units at an average gross sales price of $19.6 per unit for net proceeds, after sales commissions, of $1.0 million. For the year ended December 31, 2019, the Partnership sold 496,520 Series A preferred units at an average gross sales price of $26.79 per unit for net proceeds, after sales commissions, of $13.1 million. The Partnership has paid an aggregate of $0.2 million in sales commissions to the Agent in connection with such sales for the period ended December 31, 2019. Proceeds in the table below are included for all units issued for the year ended December 31, 2019. Year ended December 31, 2019 Series A Preferred (in thousands of U.S. dollars) Common units Units Total Gross proceeds for units issued $ 1,042 13,298 $ 14,340 Less: Commissions (13) (233) (246) Net proceeds for units issued $ 1,029 13,065 $ 14,094 For the year ended December 31, 2018, the Partnership sold 253,106 common units at an average gross sales price of $18.26 per unit for net proceeds, after sales commissions, of $4.6 million. For the year ended December 31, 2018, the Partnership sold 1,529,070 Series A preferred units at an average gross sales price of $25.74 per unit for net proceeds, after sales commissions, of $38.7 million. The Partnership has paid an aggregate of $0.8 million in sales commissions to the Agent in connection with such sales for the period ended December 31, 2018. Proceeds in the table below are included for all units issued for the year ended December 31, 2018. Year ended December 31, 2018 Series A (in thousands of U.S. dollars) Common units Preferred Units Total Gross proceeds for units issued $ 4,623 39,360 $ 43,983 Less: Commissions (60) (701) (761) Net proceeds for units issued $ 4,563 38,659 $ 43,222 On October 5, 2017, the Partnership issued 4,600,000 8.75% Series A preferred units. The offering price was $25.0 per unit. The Partnership’s total proceeds and net proceeds from the preferred unit offering were $115.0 million and $110.9 million, respectively. During October 2017, net proceeds of $34.4 million and $24.3 million were used to repay outstanding balances under the seller’s credit note and revolving credit facility, respectively. During December 2017, the Partnership acquired the remaining 49% ownership interest in the Höegh Grace entities and settled part of the purchase price with cash of $45.3 million from the issuance of the Series A preferred units. 8.75% Series A Cumulative Redeemable Preferred Units: Year ended (in thousands of U.S. dollars) December 31, 2017 Gross proceeds received $ 115,000 Less: Underwriters' discount (3,623) Less: Offering expenses (453) Net proceeds received $ 110,924 |
Common, subordinated and prefer
Common, subordinated and preferred units | 12 Months Ended |
Dec. 31, 2019 | |
Common, subordinated and preferred units | |
Common, subordinated and preferred units | 21. Common, subordinated and preferred units The following table shows the movements in the number of common units, subordinated units and preferred units during the years ended December 31, 2019, 2018 and 2017: Common 8.75% Common Units Series A Units Höegh Subordinated Preferred (in units) Public LNG Units Units December 31, 2016 17,639,039 2,116,060 13,156,060 — May 22, 2017; Awards to non-employee directors as compensation for directors' fees 9,805 — — — October 5, 2017; Series A preferred units offering — — — 4,600,000 December 31, 2017 17,648,844 2,116,060 13,156,060 4,600,000 June 6, 2018; Awards to non-employee directors as compensation for directors' fees 8,840 — — — July 5, 2018; Awards to non-employee directors as compensation for directors' fees 2,210 — — — Units issued to staff at Höegh LNG during 2018 14,622 (14,622) — — Phantom units issued to CEO/CFO during 2018 17,079 — — — ATM program (from January 26, 2018 to December 31, 2018) 253,106 — — 1,529,070 December 31, 2018 17,944,701 2,101,438 13,156,060 6,129,070 June 4, 2019; Awards to non-employee directors as compensation for directors' fees 8,944 — — — July 16, 2019; Awards to non-employee directors as compensation for directors' fees 2,236 — — — August 16, 2019; Subordinated units converted to common units — 13,156,060 (13,156,060) — Phantom units issued to CEO/CFO during 2019 19,745 — — — ATM program (from January 1, 2019 to December 31, 2019) 53,160 — — 496,520 December 31, 2019 18,028,786 15,257,498 — 6,625,590 The subordination period, as defined in the Second Amended and Restated Agreement of Limited Partnership of Höegh LNG Partners LP, for the subordinated units ended on August 16, 2019. All of the subordinated units, which were owned by Höegh LNG, converted to common units on a one-for-one basis. As of December 31, 2019, Höegh LNG owned 15,257,498 common units. As of December 31, 2018 and 2017 Höegh LNG owned 2,101,438 common units and 13,156,060 subordinated units. Refer to note 22 for information on distributions to common and subordinated unitholders. The Series A preferred units represent perpetual equity interests in the Partnership and, unlike the Partnership’s debt, do not give rise to a claim for payment of a principal amount at a particular date. The Series A preferred units rank senior to the Partnership’s common units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up but junior to all the Partnership’s debt and other liabilities. The Series A preferred units have a liquidation preference of $25.00 per unit. At any time on or after October 5, 2022, the Partnership 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 to the date of redemption. The distribution rate on the Series A preferred units is 8.75% per annum of the $25.00 per unit value (equivalent to $2.1875 per annum per unit). The distributions are cumulative and recorded when declared. However, since the Series A preferred units rank senior to the Partnership’s common units, the portion of net income, equivalent to the Series A preferred units’ paid and undeclared distributions for that period, is reflected as Preferred unitholders’ interest in net income on the consolidated statement of income. Distributions are payable quarterly, when, and if declared by the Partnership’s board of directors out of legally available funds for such purpose. Holders of 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 will be entitled to replace one of the members of the Partnership’s board of directors appointed by the general partner with a person nominated by such holders. |
Earning per unit and cash distr
Earning per unit and cash distributions | 12 Months Ended |
Dec. 31, 2019 | |
Earning per unit and cash distributions | |
Earning per unit and cash distributions | 22. Earning per unit and cash distributions The calculation of basic and diluted earnings per unit are presented below: Year ended December 31, (in thousands of U.S. dollars, except per unit numbers) 2019 2018 2017 Net income $ 52,741 77,622 $ 59,190 Adjustment for: Non-controlling interest — — 10,408 Preferred unitholders’ interest in net income 13,850 12,303 2,480 Limited partners' interest in net income 38,891 65,319 46,302 Less: Dividends paid or to be paid (1) (60,149) (59,952) (57,764) Under (over) distributed earnings (21,258) 5,367 (11,462) Under (over) distributed earnings attributable to: Common units public (11,514) 2,900 (6,145) Common units Höegh LNG (3,211) 340 (736) Subordinated units Höegh LNG (6,533) 2,127 (4,581) $ (21,258) 5,367 $ (11,462) Basic weighted average units outstanding (in thousands) Common units public 17,986 17,856 17,645 Common units Höegh LNG 7,039 2,101 2,116 Subordinated units Höegh LNG 8,218 13,156 13,156 Diluted weighted average units outstanding (in thousands) Common units public 17,995 17,864 17,657 Common units Höegh LNG 7,039 2,101 2,116 Subordinated units Höegh LNG 8,218 13,156 13,156 Basic and diluted earnings per unit (2): Common unit public $ 1.12 $ 1.93 $ 1.37 Common unit Höegh LNG (3) $ 1.84 $ 2.03 $ 1.44 Subordinated unit Höegh LNG (3) $ 0.70 $ 2.03 $ 1.45 (1) Includes all distributions paid or to be paid in relationship to the period, regardless of whether the declaration and payment dates were prior to the end of the period and is based the number of units outstanding at the period end. (2) Effective March 21, 2019, granted 10,917 phantom units to the CEO/CFO of the Partnership. One-third of such phantom units vest as of November 30, 2020 and 2021, respectively. Effective March 23, 2018, the Partnership granted 14,584 phantom units to the then-serving CEO/CFO of the Partnership. One-third of such phantom units vest as of November 30, 2019, 2020 and 2021, respectively. Effective June 3, 2016, the Partnership granted 21,500 phantom units to the then-serving CEO/CFO of the Partnership. One-third of such phantom units vest as of December 31, 2017, November 30, 2018 and November 30, 2019, respectively. On September 14, 2018, the plan was amended to extend the terms and conditions of such unvested units for the grants effective March 23, 2017 and June 3, 2016 of the then-serving CEO/CFO that resigned as CEO/CFO of the Partnership. The phantom units impact the diluted weighted average units outstanding. (3) Includes total amounts attributable to incentive distributions rights of $1,597, $1,591 and $1,141 for the years ended December 31, 2019, 2018 and 2017, respectively, of which $908, $219 and $158 was attributed to common units owned by Höegh LNG and $688, $1,372 and $983 was attributed to subordinated units owned by Höegh LNG, for the years ended December 31, 2019, 2018 and 2017, respectively. (4) On August 16, 2019, all subordinated units converted into common units on a one-for-one basis. Earnings per unit is calculated by dividing net income by the weighted average number of common and subordinated units outstanding during the applicable period. The common unitholders’ interest in net income is calculated as if all net income were distributed according to terms of the Partnership’s Second Amended and Restated Agreement of Limited Partnership (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. Available cash, a contractual defined term, generally means all cash on hand at the end of the quarter after deduction for cash reserves established by the board of directors and the Partnership’s subsidiaries to i) provide for the proper conduct of the business (including reserves for future capital expenditures and for the anticipated credit needs); ii) comply with applicable law, any of the debt instruments or other agreements; iii) provide funds for payments on the Series A preferred units; and iv) provide funds for distributions to the unitholders for any one or more of the next four quarters. Therefore, the earnings per unit are not indicative of future cash distributions that may be made. Unlike available cash, net income is affected by non-cash items, such as depreciation and amortization, unrealized gains or losses on derivative instruments and unrealized gains or losses on foreign exchange transactions. In addition, Höegh LNG currently holds all the IDRs in the Partnership. IDRs represent the rights to receive an increasing percentage of quarterly distributions of available cash for operating surplus after the minimum quarterly distribution and the target distribution levels have been achieved. Distributions of available cash from operating surplus are to be made among the unitholders and the holders of the IDRs in the following manner for any quarter after the subordination period: · first , 100.0% to all common unitholders, pro rata, until each such unitholder receives a total of $0.388125 per unit for that quarter; · second , 85.0% to all common unitholders, pro rata, and 15.0% to the holders of the IDRs, pro rata, until each such unitholder receives a total of $0.421875 per unit for that quarter; · third , 75.0% to all common unitholders, pro rata, and 25.0% to the holders of the IDRs, pro rata, until each such unitholder receives a total of $0.50625 per unit for that quarter; and · thereafter , 50.0% to all common unitholders, pro rata, and 50.0% to the holders of the IDRs, pro rata. In each case, the percentage interests set forth above assume that the Partnership does not issue additional classes of equity securities. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent events | |
Subsequent events | 23. Subsequent events On February 15, 2020, the Partnership paid a cash distribution of $15.0 million, or $0.44 per common unit, with respect to the three months ended December 31, 2019, equivalent to $1.76 per unit on an annualized basis. On February 17, 2020, the Partnership paid a cash distribution of $3.7 million, or $0.546875 per Series A preferred unit, for the period commencing on November 15, 2019 to February 14, 2020. On February 27, 2020, the Partnership exercised the right to cause Höegh LNG to charter the Höegh Gallant from the expiration or termination of the EgyptCo charter until July 2025. The Partnership intends to enter into a new time charter with Höegh LNG for the Höegh Gallant , the final terms of which are subject to approval by the Partnership’s conflicts committee and board of directors. On March 26, 2020, the Partnership granted 8,100 phantom units to the CEO & CFO of the Partnership. One third of such phantom units vest as of November 30, 2021, 2022 and 2023, respectively. After the balance sheet date, we have seen significant macroeconomic uncertainty as a result of the Coronavirus (COVID-19) outbreak. The scale and duration of this development remains uncertain and could materially impact our earnings and cash flow. On April 1, 2020, the joint ventures and the charterer signed final settlement and release agreements related to the boil-off claim. The settlement amount is in line with the accrual made by the joint ventures. Accordingly, the accrual was unchanged as of December 31, 2019. Refer to note 18 for additional information on the terms of the settlement. |
Schedule I
Schedule I | 12 Months Ended |
Dec. 31, 2019 | |
Schedule I | |
Schedule I | Exhibit 15.1 Schedule I – Condensed Financial Information of Registrant CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Total revenue $ — — $ — EXPENSES Administrative expenses (6,473) (5,822) (8,608) Equity in earnings of subsidiaries 60,315 68,359 66,521 Equity in earnings (losses) of joint ventures 6,078 17,938 5,139 Interest income 11,205 93 83 Interest expense (18,242) (2,938) (3,934) Other items, net (142) (8) (11) Net income $ 52,741 77,622 $ 59,190 Share of subsidiaries unrealized losses on cash flow hedges (12,217) (2,290) 3,335 Share of subsidiaries income tax benefit (389) (299) (347) Comprehensive income $ 40,135 75,033 $ 62,178 See accompanying notes to condensed financial statements. CONDENSED BALANCE SHEETS As of December 31, (in thousands of U.S. dollars) 2019 2018 Cash $ 6,934 $ 7,006 Current portion of long-term loans to subsidiaries 25,597 — Promissory note from subsidiaries 123,248 123,248 Prepaid expenses and other receivables 224 14 Total current assets 156,003 130,268 Accumulated earnings of joint ventures 3,270 — Loans to subsidiaries 260,636 — Investments in subsidiaries 449,570 433,088 Total long-term assets 713,476 433,088 Total assets $ 869,479 $ 563,356 LIABILITIES AND PARTNER’S CAPITAL Current portion of long-term debt $ 25,597 $ — Trade payables 52 56 Amounts due to owners and affiliates 398 417 Derivative instruments 1,821 — Accrued liabilities and other payables 3,155 346 Total current liabilities 31,023 819 Accumulated losses of joint ventures — 2,808 Long-term debt 318,650 — Loans and promissory notes due to owners and affiliates 8,792 39,292 Derivative instruments 9,504 — Total long-term liabilities 336,946 42,100 Total liabilities 367,969 42,919 Total partners’ capital 501,510 520,437 Total liabilities and partners’ capital $ 869,479 $ 563,356 See accompanying notes to condensed financial statements. CONDENSED STATEMENT OF CASH FLOW Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Net cash provided by operating activities $ 33,130 42,401 $ 6,862 INVESTING ACTIVITIES Long-term loan due from subsidiaries (286,233) — — Expenditure for purchase of Höegh Grace entities — — (137,475) (Increase) decrease in restricted cash designated for purchase of the Höegh Grace entities — — 91,768 Proceeds from investment in subsidiaries — — 12,202 Net cash provided by (used in) investing activities (286,233) — (33,505) FINANCING ACTIVITIES Net proceeds from issuance of Series A Preferred Units 13,065 38,659 110,924 Net proceeds from issuance of common units 1,029 4,563 — Proceeds from long-term debt 368,300 — — Proceeds from loans and promissory notes due to owners and affiliates 3,500 5,400 25,730 Repayment of long-term debt (19,198) — — Repayment of debt issuance cost (5,797) — — Repayment of amounts due to owners and affiliates (34,000) (17,500) (58,705) Proceeds from indemnifications received from Höegh LNG — 1,701 2,075 Repayment of indemnifications received from Höegh LNG (64) (2,353) (1,534) Cash distributions to limited partners (73,804) (72,497) (57,037) Net cash provided by (used in) financing activities 253,031 (42,027) 21,453 Increase (decrease) in cash, cash equivalents and restricted cash (72) 374 (5,190) Cash, cash equivalents and restricted cash, beginning of period 7,006 6,632 11,822 Cash, cash equivalents and restricted cash, end of period $ 6,934 7,006 $ 6,632 See accompanying notes to condensed financial statements. 1. Basis of presentation Höegh LNG Partners LP – the Parent company is a Marshall Islands limited partnership formed on April 28, 2014. In the parent-only financial statements, the investment in subsidiaries and investment in joint ventures are stated at cost plus equity in undistributed earnings of subsidiaries and accumulated earnings in joint ventures since the date of acquisition and the closing of the initial public offering of Höegh LNG Partners LP (the “Partnership”) on August 12, 2014. The Partnership’s share of net income of its unconsolidated subsidiaries and joint ventures is included in the condensed income statement using the equity method. The Parent company’s financial statements should be read in conjunction with the Partnership’s consolidated financial statements contained elsewhere in the Partnership’s Report on Form 20‑F for the year ended December 31, 2019. 2. Dividends A cash dividend of $42.4 million, $51.7 million and $17.7 million was paid to the Parent company from its consolidated subsidiaries for the years ended December 31, 2019, 2018 and 2017, respectively. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies | |
Basis of presentation | Basis of presentation The consolidated financial statements are prepared in accordance with US GAAP. All intercompany balances and transactions are eliminated. It has been determined that PT Hoegh LNG Lampung, Hoegh LNG Cyprus Limited , Höegh LNG Colombia Holding Ltd., SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. are variable interest entities. A variable interest entity (“VIE”) is defined by US GAAP as a legal entity where either (a) the voting rights of some investors are not proportional to their rights to receive the expected residual returns of the entity, their obligations to absorb the expected losses 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, 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) 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. The guidance requires a VIE to be consolidated if any of its interest holders are entitled to a majority of the entity’s residual returns or are exposed to a majority of its expected losses. Based upon the criteria set forth in US GAAP, the Partnership has determined that PT Hoegh LNG Lampung is a VIE, as the equity holders, through their equity investments, may not participate fully in the entity’s expected residual returns and substantially all of the entity’s activities either involve, or are conducted on behalf of, the Partnership. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of PT Hoegh LNG Lampung are included in the consolidated financial statements. Dividends may only be paid if the retained earnings are positive and a statutory reserve has been established equal to 20% of its paid up capital under Indonesian law. PT Hoegh LNG Lampung had not established the required statutory reserves as of December 31, 2019 and 2018. Therefore, PT Hoegh LNG Lampung cannot make dividend payments under Indonesian law. Under the Lampung facility, there are limitations on cash dividends and loans that can be made to the Partnership. Refer to note 13. As of December 31, 2019 and 2018, restricted net assets of the consolidated subsidiaries were $169.8 million and $164.4 million, respectively. The Partnership has determined that Hoegh LNG Cyprus Limited is a VIE, as the equity investment does not provide sufficient equity to permit the entity to finance its activities without financial guarantees. The Partnership is the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives all the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of Hoegh LNG Cyprus Limited are included in the consolidated financial statements. Under Cyprus law, dividends may only be distributed out of profits and not from the share capital of the company. As of December 31, 2019 and 2018, restricted net assets of the consolidated subsidiaries were $0.0 million and $4.6 million, respectively. The Partnership has also determined that Höegh LNG Colombia Holding Ltd. is a VIE since the entity would not be able to finance its activities without financial guarantees under its subsidiary’s facility to finance Höegh Grace . As of January 1, 2017, the Partnership became the primary beneficiary, as it has the power to make key operating decisions considered to be most significant to the VIE and receives the majority of the expected benefits or expected losses. Therefore, 100% of the assets, liabilities, revenues and expenses of Höegh LNG Colombia Holding Ltd., and subsidiaries, are included in the consolidated financial statements with a non-controlling interest reflected for the minority share until December 1, 2017. On December 1, 2017, the Partnership acquired the remaining 49% ownership interest in the Höegh Grace entities and, as of that date, there was no longer a non-controlling interest in the Höegh Grace entities. Under Cayman Islands law, dividends may only be paid out of profits or capital reserves if the entity is solvent after the distributions. As of December 31, 2019 and 2018, restricted net assets of the consolidated subsidiaries were $0.0 million and $0.2 million, respectively. Dividends and other distributions from Hoegh LNG Cyprus Limited , Höegh LNG Colombia Holding Ltd. and Höegh LNG FSRU IV Ltd. may only be distributed if after the dividend payment, the Partnership would remain in compliance with the financial covenants under the $385 million facility. Refer to note 13. In addition, the Partnership has determined that the two joint ventures, SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd., are VIEs since each entity did not have a sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support. The entities have been financed with third party debt and subordinated shareholders loans. The Partnership is not the primary beneficiary, as the Partnership cannot make key operating decisions considered to be most significant to the VIEs, but has joint control with the other equity holders. Therefore, the joint ventures are accounted for under the equity method of accounting as the Partnership has significant influence. The Partnership’s carrying value is recorded in advances to joint ventures and accumulated earnings (losses) of joint ventures in the consolidated balance sheets. For SRV Joint Gas Ltd., the Partnership had a receivable for the advances of $3.0 million and $2.8 million as of December 31, 2019 and 2018, respectively. The Partnership’s accumulated earnings, or its share of net assets, was $2.6 million as of December 31, 2019 and the Partnership’s accumulated losses, or its share of net liabilities, was $0.8 million as of December 31, 2018. The Partnership’s carrying value for SRV Joint Gas Two Ltd. consists of a receivable for the advances of $0.8 million and $0.7 million as of December 31, 2019 and 2018, respectively. The Partnership’s accumulated earnings, or its share of net assets, was $0.7 million as of December 31, 2019 and the Partnership’s accumulated losses, or its share of net liabilities, was $2.0 million as of December 31, 2018. The major reasons that the Partnership had low accumulated earnings in the joint ventures as of December 31, 2019 and accumulated losses in the joint ventures as of December 31, 2018 was due to the fair value adjustments for the interest rate swaps recorded as liabilities on the balance sheets of SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. and eliminations for consolidation to the balance sheet. The maximum exposure to loss is the carrying value of the receivables, which is subordinated to the joint ventures’ long-term bank debt, the investments in the joint ventures (accumulated earnings or losses), as the shares are pledged as security for the joint ventures’ long-term bank debt, and Höegh LNG’s commitment under long-term bank loan agreements to fund its share of drydocking costs and remarketing efforts in the event of an early termination of the charters. If the charters terminate for any reason that does not result in a termination fee, the joint ventures’ long-term bank debt would be subject to mandatory repayment. Dividend distributions require a) agreement of the other joint venture owners; b) fulfilment of requirements of the long-term bank loans; c) and under Cayman Islands law may be paid out of profits or capital reserves subject to the joint venture being solvent after the distribution. |
Foreign currencies | Foreign currencies The reporting currency in the consolidated financial statements is the U.S. dollar, which is the functional currency of the FSRU-owning entities. Nearly all revenues are received in U.S. dollars and a majority of the Partnership’s expenditures for investments and all of the long-term debt are denominated in U.S. dollars. Transactions denominated in other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the time of the transactions. Monetary assets and liabilities that are denominated in currencies other than the U.S. dollar are translated at the exchange rates in effect at the balance sheet date. Resulting gains or losses are reflected in the accompanying consolidated statements of income. |
Business combinations and asset acquisitions | Business combinations and asset acquisitions Business combinations are accounted for under the purchase method of accounting. Under this method, the purchase price is allocated to identifiable assets acquired and liabilities assumed based on their fair values as of the acquisition date. Any excess of the purchase price over the fair values of net assets is recognized as goodwill. Acquisition related costs are expensed as incurred. The results of entity acquired are included in the consolidated financial statements from the date of acquisition. Dependent upon facts and circumstances, the assessment of a transaction may be considered the acquisition of an asset, when substantially all of the fair value of assets acquired is concentrated in a single identifiable asset, rather than a business combination. Asset acquisitions are accounted for by allocating the cost of the acquisition to the individual assets acquired and liabilities assumed on a relative fair value basis. Acquisition related costs are capitalized as a component of the cost of the assets acquired. |
Time charter revenue, related contract balances and related expenses | Time charter revenue, related contract balances and related expenses Time charter revenues and related contract balances : The Partnership is required to evaluate whether two or more contracts should be combined and accounted for as a single contract, whether the contract promises to deliver more than one distinct good or service, or performance obligations, and/or a lease, determine the transaction price under the contract, allocate the transaction price to the lease and the performance obligations and recognize revenue as the performance obligation is satisfied. The Partnership believes the nature of its time charter contracts are the same, regardless of whether the contracts are accounted for as financing leases or operating leases for accounting purposes. As such, when adopting the revised guidance on leases as of January 1, 2019, the Partnership did not elect to apply the practical expedient to not separate lease and services components for operating leases because this would result in inconsistent disclosure for the time charter contracts. Performance obligations : The Partnership determined that its time charter contracts contain a lease and a performance obligation for the provision of time charter services. The lease of the vessel, representing the use of the vessel without any associated performance obligations or warranties, is accounted for in accordance with the provisions of Accounting Standards Codification ("ASC") 842; Leases . The provision of time charter services, including guarantees for the level of performance provided by the time charter contracts, is considered a distinct service and is accounted for in accordance with the provision of ASC 606, Revenue from Contracts with Customers. The Partnership determined that the nature of the time charter services promised, represents a single performance obligation, to stand ready over a 24‑hour interval to accept LNG cargos, to transport cargos, to regasify the LNG and discharge the resulting gas into a pipeline in accordance with the charterer’s instructions and requirements. Time charter services revenue can be recognized as the performance obligation is satisfied over the 24‑hour interval to the performance standards specified under the time charter contract. If the performance standards are not met, off-hire, reduced hire, liquidated damages or other performance payments may result. Contract terms, determination of transaction price and allocation to performance obligations : The Partnership’s time charter contracts for all FSRUs, except the Höegh Gallant , include day rates or hire rates and warranty provisions with the following components: · Fixed element : The fixed element is a fixed per day fee intended to cover remuneration for use of the vessel and the provision of time charter services. · Operating expense reimbursement element : The operating expense reimbursement element is a rate per day intended to cover the operating costs of the vessel, including the crew, insurance, consumables, miscellaneous services, spares and maintenance and repairs costs and management services and fees. The amount of the operating expense reimbursement element may be based on actual cost incurred, or fees subject to indexing or other adjustments after a defined period, or a combination of both. · Tax reimbursement element : The tax reimbursement element may be a rate per day, based on the estimated liability for the year divided by the number of days in the year, subject to adjustment for actual taxes incurred, or a reimbursement of the costs as the taxes are incurred. The tax reimbursement element may cover withholding taxes, payroll taxes, other local taxes and current income tax expense for the jurisdiction in which the vessel operates as defined by the provisions of the individual time charter contract. · Performance warranties element : The performance warranties element includes defined operational capacity and standards that can result in the FSRUs being off-hire or require compensation to the charterer through provision of reduced hire, liquidated damages or performance payments. Examples of performance warranties include the ability to discharge regasified LNG at specified performance rates, guaranteed minimum fuel consumption, guaranteed minimum boil-off rates and the ability to accept cargos. The Höegh Gallant has a single day rate intended to cover all of the elements listed above. In addition, the time charter contract for the Höegh Gallant includes a provision for 15 days of off-hire for scheduled maintenance. The joint ventures’ time charter contracts also provide for upfront payments for variable costs for certain vessel modifications, drydocking costs, other additions to equipment or spare parts. The hire rates for the PGN FSRU Lampung and the joint ventures are invoiced at the beginning of the month. The Höegh Gallant and the Höegh Grace invoice time charter revenues monthly in arrears. The transaction price is estimated as the standalone selling price for the lease and the time charter services components of the fixed day rate element. Variable consideration per day for operating expense and tax reimbursements is estimated at the most likely amount to which the Partnership is expected to be entitled to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty related to the variable consideration is resolved. When there is significant uncertainty related to that amount of variable consideration to be received, that variable consideration is considered constrained. Typically, variable reimbursements and performance warranties are known at the end of each 24‑hour interval, or as subsequently reassessed at the end of the reporting period. However, to the extent interpretations of contractual provisions are complex and/or disputed with the customer, this could give rise to constrained variable consideration. Constrained variable consideration is not estimated. Variable consideration is allocated entirely to one performance obligation when the variable day rate relates specifically to the efforts to satisfy the single performance obligation. The default method of the relative standalone selling price method was used to allocate the remaining transaction price, principally the fixed element, between the lease and the time charter services. The total estimated transaction price for time charter services is considered variable consideration because it may be reduced by performance warranties. The Partnership has made a policy election to exclude from the measurement of the transaction price all taxes assessed by a government entity on revenues and collected on behalf of that government entity from customers, such as sales or value added taxes. Lease revenue recognition : Leases are classified based upon defined criteria either as sale-type/direct financing leases (“financing leases”) or operating leases. A lease that transfers substantially all of the benefits and risks of the FSRU to the charterer is accounted for as a financing lease by the lessor. All other leases that do not meet the criteria are classified as operating leases. On January 1, 2019, when adopting the revised leasing guidance, the Partnership elected the package of practical expedients and did not reassess conclusions under the previous standard about whether any existing contracts are, or contain leases, lease classification, and initial direct costs for any existing leases. Accordingly, outstanding leases on January 1, 2019, continue to be classified in accordance with the prior lease guidance. The lease component of time charters that are accounted for as operating leases is recognized on a straight line basis over the term of the charter. The Höegh Gallant’s time charter, which had a five-year lease term at inception, is accounted for as an operating lease. The Höegh Grace’s time charter contracts, which have a non-cancellable charter period of ten years, are accounted for as an operating lease. Under one of the time charter contracts, the contract provides for additional variable payments, including a finance component, over the initial term depending upon the actual commencement date of the contract within a defined window of potential commencement dates. The variable payments are considered directly related to the lease performance obligation. The revenue, excluding the financing component, is recognized over the initial 10-year term. Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for final income tax directly related to the provision of the lease is recorded as a component of lease revenues. The amount of non-cash revenue is disclosed separately in the consolidated statement of cash flows. The lease component of time charters that are accounted for as financing leases is recognized over the lease term using the effective interest rate method and is included in time charter revenues. Origination costs related to the time charter are a component of the net investment in financing lease and amortized over the lease term using the effective interest method. Financing leases are reflected on the consolidated balance sheets as net investments in financing leases. The PGN FSRU Lampung time charter, which had a 20‑year lease term at inception, meets the criteria of transferring substantially all of the benefits and risks to the charterer and is accounted for as a financing lease. Time charter services revenue recognition : Variable consideration for the time charter services performance obligation, including amounts allocated to time charter services, estimated reimbursements for vessel operating expenses and estimated reimbursements of certain types of costs and taxes, are recognized as revenues as the performance obligation for the 24‑hour interval is fulfilled, subject to adjustment for off-hire and performance warranties. Constrained variable consideration is recognized as revenue on a cumulative catch-up basis when the significant uncertainty related to that amount of variable consideration to be received is resolved. Estimates for variable consideration, including constrained variable consideration, are reassessed at the end of each period. Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes directly related to the provision of the time charter services are recorded as a component of time charter service revenues. The amount of non-cash revenue is disclosed separately in the consolidated statement of cash flows. Joint venture FSRUs lease and time charter services revenue recognition : The Partnership’s interest in the Joint venture FSRUs’ net income is included in the consolidated financial statements under the equity method of accounting, however, the Joint venture FSRUs’ results are presented under the proportional consolidation method for the segment note (note 4) and the time charter revenue note (note 5). The Neptune’s and the Cape Ann’s time charters, which had a twenty-year lease term at inception, are accounted for as operating leases. The joint ventures’ time charters include provisions for the charterer to make upfront payments to compensate for variable cost for certain vessel modifications, drydocking costs, other additions to equipment or spare parts. The expenditures are considered costs required to fulfill the lease component of the contract. Payments for modifications are deferred and amortized over the shorter of the remaining charter period or the useful life of the additions. Payments for reimbursement of drydocking costs are deferred and recognized on a straight line basis over the period to the next drydocking. The accounting policy for time charter services for the joint ventures is the same as described above. Significant judgments in revenue recognition : The Partnership does not provide stand-alone bareboat leases or time charter services for FSRUs. As a result, observable stand-alone transaction prices for the performance obligations are not available. The estimation of the transaction price for the lease and the time charter service performance obligation is complex, subject to a number of input factors, such as market conditions when the contract is entered into, internal return objectives and pricing policies, and requires substantial judgment. Significant changes in the transaction price between the two performance obligations could impact conclusions on the accounting for leases as financing or operating leases. In addition, variable consideration is estimated at the most likely amount that the Partnership expects to be entitled to. Variable consideration is reassessed at the end of the reporting period taking into account performance warranties. The time charter contracts include provisions for performance guarantees that can result in off-hire, reduced hire, liquidated damages or other payments for performance warranties. Measurement of some of the performance warranties can be complex and require properly calibrated equipment on the vessel, complex conversions and computations based on substantial judgment in the interpretation of the contractual provisions. Conclusions on compliance with performance warranties impact the amount of variable consideration recognized for time charter services. Contract assets: Revenue recognized in excess of the monthly invoiced amounts, or accrued revenue, is recorded as contract assets on the consolidated balance sheet. The contract assets are reported in the consolidated balance sheet as a component of prepaid expenses and other receivables. Contract liabilities: Advance payments in excess of revenue recognized, or prepayments, and deferred revenue is recorded as contract liabilities on the consolidated balance sheet. Contract assets and liabilities are reported in a net position for each customer contract or combined contracts at the end of each reporting period. Contract liabilities are classified as current or non-current based on the expected timing of recognition of the revenue. Current and non-current contract liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables and other long-term liabilities, respectively. Refund liabilities: Amounts invoiced or paid by the customer that are expected to be refunded to the customer are recorded as refund liabilities on the consolidated balance sheet. Refund liabilities may include invoiced amounts for estimated reimbursable operating expenses or other costs and taxes that exceeded the actual costs incurred, or off-hire, reduced hire, liquidated damages, or other payments for performance warranties. Refund liabilities are reported in the consolidated balance sheet as components of accrued liabilities and other payables. Remaining performance obligations : Remaining performance obligations represent the transaction price of contracts with customers under the scope of ASC 606 for which work has not been performed excluding unexercised contract options to extend the term. The Partnership qualifies for and has elected to apply the exemption to disclose the aggregate amount of remaining transaction price allocated to unsatisfied performance obligations at the end of the reporting period as consideration for time charter services is variable and allocated entirely to wholly satisfied performance obligations. Related expenses : Voyage expenses include bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls and agency fees. Voyage expenses are all expenses unique to a particular voyage and when a vessel is on hire under time charters are generally the responsibility of, and paid directly by the charterers, and not included in the statement of income. When the vessel is off-hire, voyage expenses, principally fuel, may also be incurred and are paid by the FSRU-owning entity. Vessel operating expenses, reflected in expenses in the statement of income, include crewing, repairs and maintenance, insurance, stores, lube oils, communication expenses and management fees. Vessel operating expenses also include bunker fuel expenses when the vessel is on hire and the expenses are not directly paid and owed by the charterers. When the vessel is on hire, vessel operating expenses are invoiced as time charter service fees to the charterer or are covered by time charter rates. When the vessel is off-hire, vessel operating expenses are not invoiced to the charterer. Voyage expenses, if applicable, and vessel operating expenses are expensed when incurred. |
Construction contract expenses | Construction contract expenses Construction contract expenses include direct costs on contracts, including project management, labor and materials, amounts payable to subcontractors and capitalized interest. |
Loss contingencies, insurance and other claims | Loss contingencies, insurance and other claims Accruals are recorded for loss contingencies or claims when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. Significant judgment is required to determine the probability and the estimated amount of loss. Such assessments involve complex judgments about future events and estimates and assumptions that are deemed reasonable by management. Accruals are reviewed quarterly and adjusted to reflect the impact of additional information such as the impact of negotiations, advice of legal counsel or settlements. Insurance claims for property damage are recorded, net of any deductible amounts, for recoveries up to the amount of loss recognized when the claims to insurance carriers are probable of recovery. Claims for property damage in excess of the loss recognized and for loss of revenue during off-hire, whether from insurance providers or indemnification from Höegh LNG, are considered gain contingencies, which are recognized when the proceeds are received. Indemnification proceeds from Höegh LNG that cover the Partnership’s costs are accounted for following the guidance of the Securities and Exchange Commission’s Staff Accounting Bulletin (“SAB”) Topic 1.B and SAB Topic 5.T. SAB Topic 1.B provides that the separate financial statements of a subsidiary should reflect any costs of its operations which are incurred by the owner on its behalf. SAB Topic 5.T provides that costs should be reflected as an expense in the subsidiary’s financial statements with a corresponding credit to contributed equity. |
Income taxes | Income taxes Income taxes are accounted for using the liability method. Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of income tax expense. The amount of non-cash income tax expense is disclosed separately in the consolidated statement of cash flows. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the tax and the book bases of assets and liabilities. 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. Benefits of uncertain tax positions are recognized when it is more-likely-than-not that a tax position taken in a tax return will be sustained upon examination based on the technical merits of the position. If the more-likely-than-not recognition criterion is met, a tax position is measured based on the cumulative amount that is more-likely-than-not of being sustained upon examination by tax authorities to determine the amount of benefit to be recognized in the consolidated financial statements. Interest and penalties related to uncertain tax positions is recognized in income tax expense in the consolidated statement of income. |
Cash and cash equivalents | Cash and cash equivalents Cash, banks deposits, time deposits and highly liquid investments with original maturities of three months or less are recognized as cash and cash equivalents. |
Restricted cash and cash designated for acquisition | Restricted cash and cash designated for acquisition Restricted cash includes balances deposited with a bank as required under debt facilities to settle withholding tax, other tax liabilities and other current obligations of the entity, and principal and interest payments as required by the debt facilities. Restricted cash is classified as long-term when the settlement is more than 12 months from the balance sheet date. Cash designated for acquisition in the consolidated statement of cash flows is classified as an investing activity. |
Trade receivables and allowance for doubtful accounts | Trade receivables and allowance for doubtful accounts Trade receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts, or impairment loss, is management’s best estimate of the amount of probable credit losses in existing accounts receivable based on historical write-off experience and customer economic data. Account balances are charged off against the allowance when management believes that the receivable will not be recovered. |
Investments in accumulated earnings or losses of and advances to joint ventures | Investments in accumulated earnings or losses of and advances to joint ventures Investments in joint ventures are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for the Partnership’s proportionate share of earnings or losses and dividend distributions. As of December 31, 2019, the Partnership had an accumulated share of earnings and the balance is classified on the consolidated balance sheet as an asset on the line accumulated earnings of joint ventures. As of December 31, 2018, the Partnership had an accumulated share of losses and the balance is classified on the consolidated balance sheet as a liability on the line accumulated losses of joint ventures. Advances to joint ventures represent loan receivables due from the joint ventures and are recorded at cost. Interest on the advances to joint ventures is recorded to interest income in the consolidated statements of income as incurred. The quarterly payments from joint ventures included a payment of interest for the first month of the quarter and repayment of principal. Interest is accrued for the last two months of the quarter for repayment at the end of the loans after the original principal was fully repaid. The joint ventures repaid the original principal of all shareholder loans during 2016. Payments of interest, including accrued interest repaid at the end of the loans, are treated as return on investment and included as a component of net cash provided by operating activities in the consolidated statement of cash flows. Payments of principal are included as a component of net cash provided by investing activities in the consolidated statement of cash flows. Investments in joint ventures are evaluated for impairment when events or circumstances indicate that the carrying value of such investments may have experienced an other-than-temporary decline in value below its carrying value. If the estimated fair value is less than the carrying value, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the consolidated statement of income. Loan receivables are impaired when, based on current information and events, it is probable that the full amount of the receivable will not be collected. The amount of the impairment is measured as the difference between the present value of expected future cash flows discounted at the loan’s effective interest rate and the carrying amount. The resulting impairment amount is recognized in earnings. |
Inventory | Inventory Inventory consists of bunker fuel maintained on the FSRUs, if it is owned by the FSRU-owning entity. Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. |
Vessels | Vessels All costs incurred during the construction of newbuildings, including interest and supervision and technical costs, are capitalized. The cost of an acquired vessel is the fair value. Vessels are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over a vessel’s estimated useful life, less an estimated residual value. Depreciation is calculated using an estimated useful life of 35 years for the FSRUs. Modifications to the vessels, including the addition of new equipment, which improves or increases the operational efficiency, functionality or safety of the vessels, are capitalized. These expenditures are amortized over the estimated useful life of the modification. Expenditures covering recurring routine repairs and maintenance are expensed as incurred. Drydocking expenditures are capitalized when incurred and amortized over the period until the next anticipated drydocking. For vessels that are newly built, the "built-in overhaul" method of accounting is applied. Under the built-in overhaul method, costs of the newbuilding are segregated into costs that should be depreciated over the useful life of the vessel and costs that require drydocking at periodic intervals. The drydocking component is amortized until the date of the first drydocking following the delivery, upon which the actual drydocking cost is capitalized and the process is repeated. Costs of drydocking incurred to meet regulatory requirements or improve the vessel’s operating efficiency, functionality or safety are generally capitalized. Costs incurred related to routine repairs and maintenance performed during drydocking are expensed. |
Impairment of long-lived assets | Impairment of long-lived assets Vessels are assessed for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. When such events or changes in circumstances are present, the recoverability of vessels is assessed by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the vessel’s net carrying value exceeds the net undiscounted cash flows expected to be generated over its remaining useful life, the carrying amount of the asset is reduced to its estimated fair value. An impairment loss is recognized based on the excess of the carrying amount over the fair value of the vessel. |
Intangibles and goodwill | Intangibles and goodwill Intangible assets are initially measured at their fair value as of the acquisition date of a business combination. All intangible assets of the Partnership have a definite life. Intangible assets with a definite life are amortized over their useful life. Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount exceeds the estimated fair value of the asset. In determining the useful lives of intangible assets, the expected use of the assets, the contractual provisions that limit the useful life and other economic factors are considered. The contract related intangibles and their useful lives as of the acquisition dates, are as follows: Useful life Intangible category (Years) Above market time charter Höegh Gallant Option for time charter extension Höegh Gallant 5.3 Above market time charter Höegh Grace 9.5 The intangible for the above market value of the time charter contract associated with the Höegh Gallant is amortized to time charter revenue on a straight line basis over the remaining term of the contract of approximately 3.4 years as of the acquisition date. The intangible for the above market value of the time charter contract associated with the Höegh Grace is amortized to time charter revenue on a straight line basis calculated per day over the remaining non-cancellable charter term of approximately 9.5 years as of the acquisition date of the initial 51% interest in the Höegh Grace entities. Höegh LNG and the Partnership have entered into an option agreement pursuant to which the Partnership has the right to cause Höegh LNG to charter the Höegh Gallant from the expiration or termination of the existing charter until July 2025. The Partnership exercised the option on February 27, 2020 and intends to enter into a new time charter with Höegh LNG for the Höegh Gallant (the “Subsequent Charter”) . The intangible for the option for time charter extension will be amortized on a straight line basis over the extension period starting at the beginning of the Subsequent Charter, subject to impairment testing for recoverability in the preceding periods. Goodwill arises when an acquisition is accounted for under the purchase method of accounting. The assets acquired and liabilities assumed are recorded at their fair values as of the acquisition date. Any excess of the consideration over the net assets acquired is recorded as goodwill. Goodwill is not amortized and is tested annually for impairment of value and whenever events or circumstances indicate that the carrying amount may not be recoverable. |
Derivative instruments | Derivative instruments All derivative instruments are initially recorded at fair value as either assets or liabilities in the consolidated balance sheet and are subsequently remeasured to fair value, regardless of the purpose or intent for holding the derivative. The method of recognizing the resulting gain or loss is dependent on whether the contract is designated as a hedging instrument and qualifies for hedge accounting. For derivative instruments that are not designated or that do not qualify for hedge accounting, the changes in the fair value of the derivative instruments are recognized in earnings. In order to designate a derivative as a cash flow hedge, formal documentation of the relationship between the derivative and the hedged item is required. This documentation includes the strategy and risk management objective for undertaking the hedge and the method that will be used to assess the effectiveness of the hedge. Interest rate swaps are used for the management of interest rate risk exposure. The interest rate swaps have the effect of converting a portion of the outstanding debt from a floating to a fixed rate over the life of the transactions. As of January 1, 2019, the following accounting policies became effective for cash flow hedges of interest rate swaps. For interest rate swaps qualifying as cash flow hedges, the fair value of the portion of the derivative instruments included in the assessment of hedge effectiveness ("hedge effectiveness") and the initial fair value of the hedge component excluded from hedge effectiveness are initially recorded in accumulated other comprehensive income as a component of total equity. Subsequent changes in fair value for the portion of the derivative instruments included in hedge effectiveness are recorded in other comprehensive income. In the periods when the hedged items affect earnings (interest expense is incurred for floating interest rate debt), those amounts are transferred from accumulated other comprehensive income to the same line (interest expense) in the consolidated statement of income as the earnings effect of the hedged item. The initial fair value component excluded from hedge effectiveness is amortized to earnings over the life of the hedging instrument. The amortization is recognized on the same line (interest expense) in the consolidated statement of income as the earnings effect of the hedged item. Any difference in the change in fair value of the hedge components excluded from hedge effectiveness and the amount recognized in earnings is recorded as a component of other comprehensive income. Prospective and retrospective hedge effectiveness is assessed on an ongoing basis. If a cash flow hedge is no longer deemed highly effective, hedge accounting is discontinued. If a cash flow hedge for an interest rate swap is terminated and the originally hedged item is still considered probable of occurring, the gains and losses initially recognized in accumulated other comprehensive income remain there until the hedged item impacts earnings, at which point they are amortized to earnings on a systematic and rational basis to interest expense in the consolidated statement of income. If the hedged items are no longer considered probable of occurring, amounts recognized in total equity are immediately transferred to interest expense in the consolidated statement of income. 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. For the years ended December 31, 2018 and 2017, changes in the fair value of the effective portion of the derivative instruments qualifying as cash flow hedges were initially recorded in other comprehensive income as a component of total equity. Any hedge ineffectiveness was recognized immediately in earnings, as were any gains and losses or amortization on the portion of the derivative instruments that were excluded from the assessment of hedge effectiveness. In the periods when the hedged items affect earnings, those amounts were transferred from accumulated other comprehensive income to the gain (loss) on derivative instruments line in the consolidated statement of income. |
Deferred debt issuance costs and fair value of debt assumed | Deferred debt issuance costs and fair value of debt assumed Debt issuance costs, including arrangement fees and legal expenses, are deferred and presented as a direct deduction from the outstanding principal of the related debt in the consolidated balance sheet and amortized on an effective interest rate method over the term of the relevant loan. Amortization of debt issuance costs is included as a component of interest expense. If a loan or part of a loan is repaid early, any unamortized portion of the deferred debt issuance costs is recognized as interest expense proportionate to the amount of the early repayment in the period in which the loan is repaid. The discount or premium arising in a business combination for the difference in the fair value of the debt assumed compared to the outstanding principal is reported in the consolidated balance sheet as a direct adjustment to the outstanding principal of the related debt and amortized on an effective interest rate method over the term of the relevant loan. Amortization of fair value of the debt assumed is included as a component of interest expense. If a loan or part of a loan is repaid early, any unamortized portion of the discount or premium is recognized as interest expense proportionate to the amount of the early repayment in the period in which the loan is repaid. |
Use of estimates | Use of estimates The preparation of financial statements in accordance with US GAAP 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. Significant estimates subject to such estimates and assumptions include revenue recognition, purchase price allocation, the useful lives of vessels, drydocking, loss contingencies and the value of derivative instruments. |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements Leases : In February 2016, the Financial Accounting Standards Board ("FASB") issued revised guidance for leasing, Leases , that amends the accounting guidance on leases for both lessors and lessees. On January 1, 2019, the Partnership adopted the new standard using the optional transition method to apply the new standard at the transition date of January 1, 2019 with no retrospective adjustments to prior periods. Consequently, the accounting and disclosures for the prior periods continue to be presented in accordance with the previous standard for leases. The Partnership elected the package of practical expedients and has not reassessed conclusions under the previous standard about whether any expired or existing contracts are, or contain leases, lease classification, and initial direct costs for any existing leases. In addition, the election to use hindsight when determining lease term for modifications to existing leases at the transition date was applied. The Partnership adopted an accounting policy to apply the short-term lease expedient as a lessee for leases under 12‑months. This includes classes of leases for office equipment, office premises and vehicles used for administrative purposes, as well as, short-term leases of equipment used for projects, drydocking or maintenance associated with the vessels. The Partnership is the lessor for time charters for its FSRUs. There were no changes to the timing or amount of revenue recognized and, therefore, no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessor accounting. Additional qualitative and quantitative disclosures are required and have been implemented for reporting periods beginning as of January 1, 2019, while prior periods are not adjusted and continue to be reported under the previous accounting standards. Refer to note 5 for the qualitative and quantitative disclosures provided. As of January 1, 2019, cash payments received for the principal portion of the financing lease are presented as an operating cash inflow rather than as an investing cash inflow as presented for prior periods in the consolidated statement of cash flows. The Partnership does not have material lease assets. Adoption of the new standard resulted in recording at a right-of-use asset and a lease liability on the consolidated balance sheet for operating leases of $0.15 million and $0.15 million, respectively, as of December 1, 2019. There was no cumulative effect adjustment to retained earnings of initially applying the standard related to the lessee accounting. As of December 31, 2019, the right-of-use asset and the lease liability for operating leases was $0.1 million and $0.1 million, respectively. The right-of-use asset is included as a component of other equipment in the consolidated balance sheet. The current and long-term lease liabilities are included as components of accrued liabilities and other long-term liabilities, respectively. Derivatives and Hedging : In August 2017, the FASB issued revised guidance for Derivatives and Hedging, Targeted Improvements to Accounting for Hedging Activities . The entire change in fair value of the cash flow hedge included in the assessment of hedge effectiveness is included in other comprehensive income with the result that the hedge ineffectiveness is no longer recognized in earnings. Those amounts are reclassified to earnings in the same income statement line as the hedged item when hedged item affects earnings. On January 1, 2019, the Partnership adopted the new standard on a prospective basis which had no material impact for accounting for cash flow hedges for the Partnership’s interest rate swaps. There was no cumulative effect adjustment to retained earnings from initial application of the standard. However, certain amounts reclassified or recorded to earnings were reported as a component of interest expense for the year ended December 31, 2019 compared with the presentation in previous periods in the gain (loss) on the derivative instruments line in the consolidated statements of income. In addition, the new disclosure requirements were applied on a prospective basis in note 17. Recently issued accounting pronouncements In June 2016, the FASB issued revised guidance for Financial Instruments — Credit Losses:Measurement of Credit Losses on Financial Instruments . The revised guidance replaces the incurred loss impairment methodology with a methodlogy that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This revised guidance is effective for the Partnership from January 1, 2020, with a modified retrospective approach. The adoption of the standard is not expected to have a material impact on the consolidated financial statements. In January 2017, FASB issued revised guidance for Intangibles – Goodwill and Other: Simplifying the test for Goodwill Impirment . The revised guidance simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The revised guidance is effective for annual and interim impairment tests performed for periods beginning after December 15, 2019, and the Partnership will adopt the standard from January 1, 2020. The adoption of the standard will not have a material effect on the consolidated financial statements. The recorded amount of the Partnership’s goodwill is $0.3 million as of December 31, 2019. Refer to note 12. In Decenber 2019, FASB issued revised guidance for Income Taxes – Simplifying the Accounting for Income Taxes . The revised guidance eliminates certain exceptions to the guidance related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those years. Early adoption is permitted in interim or annual periods for which public business entities have not yet issued financial statements. The Partnership is evaluating the impact of this revised guidance on its consolidated financial statements and related disclosures. |
Description of business (Tables
Description of business (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Description of business | |
Schedule of entities | The following table lists the entities included in these consolidated financial statements and their purpose as of December 31, 2019. Jurisdiction of Incorporation Name or Registration Purpose Höegh LNG Partners LP Marshall Islands Holding Company Höegh LNG Partners Operating LLC (100% owned) (4) Marshall Islands Holding Company Hoegh LNG Services Ltd (100% owned) United Kingdom Administration Services Company Hoegh LNG Lampung Pte. Ltd. (100% owned) Singapore Owns 49% of PT Hoegh LNG Lampung PT Hoegh LNG Lampung (49% owned) (1) Indonesia Owns PGN FSRU Lampung SRV Joint Gas Ltd. (50% owned) (2) Cayman Islands Owns Neptune SRV Joint Gas Two Ltd. (50% owned) (2) Cayman Islands Owns Cape Ann Höegh LNG FSRU III Ltd. (100% owned) (4) Cayman Islands Holding Company Hoegh LNG Cyprus Limited (100% owned) Cyprus Owns Höegh Gallant Hoegh LNG Cyprus Limited Egypt Branch (100% owned) Egypt Branch of Hoegh LNG Cyprus Limited Höegh LNG Colombia Holding Ltd. (100% owned) (3) Cayman Islands Owns 100% of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S. Höegh LNG FSRU IV Ltd. (100% indirectly owned) (3) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (100% indirectly owned) (3) Colombia Operating Company (1) PT Hoegh LNG Lampung is a variable interest entity, which is controlled by Hoegh LNG Lampung Pte. Ltd. and is, therefore, 100% consolidated in the consolidated financial statements. (2) The remaining 50% interest in each joint venture is owned by Mitsui O.S.K. Lines, Ltd. and Tokyo LNG Tanker Co. (3) The 51% of the ownership interests were acquired on January 3, 2017, and the remaining 49% of the ownership interests were acquired on December 1, 2017. (4) On January 31, 2019, Höegh LNG FSRU III Ltd. transferred its ownership in Hoegh LNG Cyprus Limited to Höegh LNG Partners Operating LLC. On February 14, 2020, the Certificate of Dissolution was received, certifying that Höegh LNG FSRU III Ltd. will be dissolved on May 4, 2020. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies | |
Schedule of contract related intangibles and their useful lives | The contract related intangibles and their useful lives as of the acquisition dates, are as follows: Useful life Intangible category (Years) Above market time charter Höegh Gallant Option for time charter extension Höegh Gallant 5.3 Above market time charter Höegh Grace 9.5 |
Business combinations (Tables)
Business combinations (Tables) - Hoegh Grace | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of fair values of assets and liabilities | The following summarizes the fair values of assets and liabilities assumed as of the acquisition date: (in thousands of U.S. dollars) Consideration Use of proceeds from public offering (issuance of 6,588,389 common units to the public) $ 91,768 Working capital adjustment 407 Total consideration $ 92,175 Assets acquired Cash and cash equivalents 3,774 Restricted cash 19 Trade receivables 4,446 Prepaid expenses and other receivables 51 Vessel 357,138 Other equipment 30 Intangibles: Above market time charter 11,760 Other long term assets 830 Total assets 378,048 Liabilities assumed Trade payables (193) Amounts due to owners and affiliates (622) Accrued liabilities and other payables (1,569) Total long term debt (192,286) Derivative instruments (2,642) Total liabilities assumed (197,312) Total identifiable net assets 180,736 Non-controlling interest in total identifiable net assets 88,561 Acquired share in total identifiable net asset $ 92,175 |
Schedule of acquisition of the non-controlling interest | The following summarizes the acquisition of the non-controlling interest as of the acquisition date: (in thousands of U.S. dollars) Consideration Cash portion of purchase price $ 45,300 Revolving credit facility draw Revolving credit facility draw for working capital adjustment 762 Total consideration $ 86,662 49% Assets acquired 181,420 49% Liabilities assumed (91,522) Total identifiable net assets 89,898 Non-controlling interest acquired 89,898 Difference between net book value of acquired non-controlling interest and consideration paid (3,236) Impact of acquisition of non-controlling interest on equity $ 86,662 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment information | |
Schedule of segment information | The following tables include the results for the segments for the years ended December 31, 2019, 2018 and 2017. Year ended December 31, 2019 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Time charter revenues $ 145,321 42,433 — 187,754 (42,433) (1) $ 145,321 Other revenue 115 — — 115 (1) 115 Total revenues 145,436 42,433 — 187,869 145,436 Operating expenses (2) (34,266) (9,044) (6,465) (49,775) 9,044 (1) (40,731) Equity in earnings (losses) of joint ventures — — — — 6,078 (1) 6,078 Segment EBITDA 111,170 33,389 (6,465) 138,094 Depreciation, amortization and impairment (21,477) (10,030) — (31,507) 10,030 (1) (21,477) Operating income (loss) 89,693 23,359 (6,465) 106,587 89,306 Gain (loss) on debt extinguishment 1,030 — — 1,030 (1) 1,030 Gain (loss) on derivative instruments — (5,209) — (5,209) 5,209 (1) — Other financial income (expense), net (12,511) (12,072) (17,809) (42,392) 12,072 (1) (30,320) Income (loss) before tax 78,212 6,078 (24,274) 60,016 — 60,016 Income tax expense (7,278) — 3 (7,275) — (7,275) Net income (loss) $ 70,934 6,078 (24,271) 52,741 — $ 52,741 Preferred unitholders’ interest in net income — — — — 13,850 (3) 13,850 Limited partners’ interest in net income (loss) $ 70,934 6,078 (24,271) 52,741 (13,850) (3) $ 38,891 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs net income (loss) to Equity in earnings (losses) of joint ventures. (2) The Partnership’s Indonesian subsidiary was assessed a property tax and penalties of $3.0 million by the Indonesian authorities for the period from 2015 through 2019. The retroactive assessment was as a result of the issuance of a new regulation in 2019, defining FSRUs as subject to the existing Indonesian property tax law. The property tax and penalties were recorded as a component of vessel operating expenses. (3) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. As of December 31, 2019 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Vessels, net of accumulated depreciation $ 640,431 252,789 — 893,220 (252,789) (1) $ 640,431 Net investment in financing lease 278,904 — — 278,904 — 278,904 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,831 3,831 — 3,831 Total assets 996,201 284,174 16,599 1,296,974 (284,174) (1) 1,012,800 Accumulated earnings of joint ventures — — 50 50 3,220 (1) 3,270 Expenditures for vessels & equipment 211 195 — 406 (195) (2) 211 Expenditures for drydocking 3,107 913 — 4,020 (913) (2) 3,107 Impairment/retirement of equipment — (75) — (75) 75 (2) — Principal repayment financing lease 4,168 — — 4,168 — 4,168 Amortization of above market contract $ 3,631 — — 3,631 — $ 3,631 (1) Eliminates the proportional share of the Joint venture FSRUs’ Vessels, net of accumulated depreciation, and Total assets and reflects the Partnership’s share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated earnings of joint ventures. (2) Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Year ended December 31, 2018 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Time charter revenues $ 144,952 43,169 — 188,121 (43,169) (1) $ 144,952 Other revenue — — 1,609 (1) 1,609 Total revenues 43,169 — 189,730 Operating expenses (27,294) (10,932) (5,817) (44,043) 10,932 (1) (33,111) Equity in earnings (losses) of joint ventures — — — — 17,938 (1) Segment EBITDA 32,237 (5,817) 145,687 Depreciation and amortization (21,146) (9,725) — (30,871) 9,725 (1) (21,146) Operating income (loss) 22,512 (5,817) 114,816 110,242 Gain (loss) on derivative instruments 8,496 — 13,177 (8,496) (1) 4,681 Other financial income (expense), net (26,381) (13,070) (2,615) (42,066) 13,070 (1) (28,996) Income (loss) before tax 17,938 (8,432) 85,927 — 85,927 Income tax expense (8,253) — (52) (8,305) — (8,305) Net income (loss) $ 68,168 17,938 (8,484) 77,622 — $ 77,622 Preferred unitholders’ interest in net income — — — — 12,303 (2) 12,303 Limited partners’ interest in net income (loss) $ 68,168 17,938 (8,484) 77,622 (12,303) (2) $ 65,319 (1) Eliminations reverse each of the income statement line items of the proportional amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs net income (loss) to Equity in earnings (losses) of joint ventures. (2) Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. As of December 31, 2018 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Vessels, net of accumulated depreciation $ 658,311 261,614 — 919,925 (261,614) $ 658,311 Net investment in financing lease 283,073 — — 283,073 — 283,073 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 3,536 3,536 — 3,536 Total assets 1,007,202 286,283 15,838 1,309,323 (286,283) 1,023,040 Accumulated losses of joint ventures — — 50 50 (2,858) (2,808) Expenditures for vessels & equipment 257 3,305 — 3,562 (3,305) 257 Expenditures for drydocking — 2,490 — 2,490 (2,490) — Principal repayment financing lease 3,814 — — 3,814 — 3,814 Amortization of above market contract $ 3,631 — — 3,631 — $ 3,631 (1) Eliminates the proportional share of the Joint venture FSRUs’ Vessels, net of accumulated depreciation, and Total assets and reflects the Partnership’s share of net assets (assets less liabilities) of the Joint venture FSRUs as Accumulated losses of joint ventures. (2) Eliminates the Joint venture FSRUs’ Expenditures for vessels & equipment and drydocking to reflect the consolidated expenditures of the Partnership. Year ended December 31, 2017 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations reporting Time charter revenues $ 143,531 42,165 — 185,696 (42,165) (1) $ 143,531 Accrual historical boil-off claim — (11,850) — (11,850) 11,850 (1)(2) — Total revenues 143,531 30,315 — 173,846 143,531 Operating expenses (27,612) (8,628) (6,089) (42,329) 8,628 (1) (33,701) Construction contract expenses (151) — — (151) (3) (151) Equity in earnings (losses) of joint ventures — — — — 5,139 (1) 5,139 Less: Non-controlling interest in Segment EBITDA (19,210) — — (19,210) 19,210 (4) — Segment EBITDA 96,558 21,687 (6,089) 112,156 Add: Non-controlling interest in Segment EBITDA 19,210 — — 19,210 (19,210) (4) — Depreciation and amortization (21,054) (9,815) — (30,869) 9,815 (1) (21,054) Operating income (loss) 94,714 11,872 (6,089) 100,497 93,764 Gain (loss) on derivative instruments 2,463 7,194 — 9,657 (7,194) (1) 2,463 Other financial income (expense), net (29,656) (13,927) (3,503) (47,086) 13,927 (1) (33,159) Income (loss) before tax 67,521 5,139 (9,592) 63,068 — 63,068 Income tax benefit (expense) (3,893) — 15 (3,878) — (3,878) Net income (loss) $ 63,628 5,139 (9,577) 59,190 — $ 59,190 Non-controlling interest in net income 10,408 — — 10,408 10,408 Preferred unitholders’ interest in net income — — — — 2,480 (5) 2,480 Limited partners’ interest in net income (loss) $ 53,220 5,139 (9,577) 48,782 (2,480) (5) $ 46,302 (1) Eliminations reverse each of the income statement line items of the proportional consolidation amounts for Joint venture FSRUs and record the Partnership’s share of the Joint venture FSRUs’ net income (loss) to Equity in earnings (loss) of joint ventures. (2) For additional information, refer to note 18 under “Joint ventures claims and accruals.” (3) The warranty work for the Mooring was completed in 2017 resulting in additional expense of $0.2 million for the year ended December 31, 2017. (4) Eliminations reverse the adjustment to Non-controlling interest in Segment EBITDA included for Segment EBITDA and the adjustment to reverse the Non-controlling interest in Segment EBITDA to reconcile to operating income and net income. (5) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. |
Schedule of total revenues from the customers | For the years ended December 31, 2019, 2018 and 2017, the percentage of consolidated total revenues from the following customers accounted for over 10% of the Partnership’s consolidated total revenues: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 PT PGN LNG Indonesia 33 % 33 % 33 % Höegh LNG Egypt LLC 31 % 31 % 31 % Sociedad Portuaria El Cayao S.A. E.S.P. 36 % 36 % 36 % |
Time charter revenues and rel_2
Time charter revenues and related contract balances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Time charter revenues and related contract balances | |
Schedule of disaggregated revenue | The following tables summarize the disaggregated revenue of the Partnership by segment for the twelve months ended December 31, 2019 and 2018: Year ended December 31, 2019 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) reporting Lease revenues, excluding amortization (2) $ 88,889 25,690 — 114,579 (25,690) $ 88,889 Time charter service revenues, excluding amortization 60,063 14,095 — 74,158 (14,095) 60,063 Amortization of above market contract intangibles (3,631) — — (3,631) — (3,631) Amortization of deferred revenue for modifications & drydock — 2,648 — 2,648 (2,648) — Other revenue (3) 115 — — 115 — 115 Total revenues (4) $ 145,436 42,433 — 187,869 (42,433) $ 145,436 Year ended December 31, 2018 Joint venture Majority FSRUs Total held (proportional Segment Elimin- Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting ations (1) reporting Lease revenues, excluding amortization $ 89,215 25,690 — 114,905 (25,690) $ 89,215 Time charter service revenues, excluding amortization 59,368 15,078 — 74,446 (15,078) 59,368 Amortization of above market contract intangibles (3,631) — — (3,631) — (3,631) Amortization of deferred revenue for modifications & drydock — 2,401 — 2,401 (2,401) — Other revenue (3) 1,609 — — 1,609 — 1,609 Total revenues (4) $ 146,561 43,169 — 189,730 (43,169) $ 146,561 (1) Eliminations reverse the proportional amounts of revenue for Joint venture FSRUs to reflect the consolidated revenues included in the consolidated income statement. The Partnership’s share of the Joint venture FSRUs revenues is included in Equity in earnings (losses) of joint ventures on the consolidated income statement. (2) The financing lease revenues comprise about one-fourth of the total lease revenues for the year ended December 31, 2019. (3) Other revenue consists of insurance proceeds received for prior period claims related to repairs under the Mooring warranty and for repairs for the Höegh Gallant . The Partnership was indemnified by Höegh LNG for the cost of the repairs related to the Mooring, subject to repayment to the extent recovered from insurance proceeds. Refer to notes 4 and 18. (4) Payments made by the charterer directly to the tax authorities on behalf of the subsidiaries for advance collection of income taxes or final income tax is recorded as a component of total revenues and is disclosed separately in the consolidated statement of cash flows. |
Schedule of consolidated receivables between lease and service | The following table summarizes the allocation of consolidated receivables between lease and service components: As of December 31, (in thousands of U.S. dollars) 2019 2018 Trade receivable for lease $ 2,898 $ 2,898 Trade receivable for time charter services 2,133 2,658 Total trade receivable and amounts due from affiliates $ 5,031 $ 5,556 |
Schedule of contract assets and liabilities refund liabilities to customers | The following table summarizes the consolidated contract assets, contract liabilities and refund liabilities to customers, as of December 31, 2019 and 2018: Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2019 $ — $ (1,834) Additions 279 (65) Reduction for receivables recorded — 89 Reduction for revenue recognized (excluding amortization) — — Reduction for revenue recognized from previous years — 497 Repayments of refund liabilities to charterer — 1,188 Balance December 31, 2019 279 (125) Netting of contract asset and contract liability — — Balance reflected in balance sheet December 31, 2019 $ 279 $ (125) Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2018 $ 303 $ (6,187) Additions — (1,747) Reduction for receivables recorded (303) — Reduction for revenue recognized (excluding amortization) — — Reduction for revenue recognized from previous years — 2,772 Repayments of refund liabilities to charterer — 3,328 Balance December 31, 2018 — (1,834) Netting of contract asset and contract liability — — Balance reflected in balance sheet December 31, 2018 $ — $ (1,834) |
Schedule of contractual future revenues | As of December 31, 2019, the minimum contractual future revenues to be received under the time charters for the PGN FSRU Lampung, the Höegh Gallant and the Höegh Grace during the next five years and thereafter are as follows: (in thousands of U.S. dollars) Service related Lease related Total 2020 $ 24,880 71,100 $ 95,980 2021 19,703 59,903 79,606 2022 19,703 59,903 79,606 2023 19,703 59,903 79,606 2024 19,703 59,903 79,606 Thereafter 116,386 346,369 462,755 Total - undiscounted $ 220,078 657,081 $ 877,159 Operating lease $ 223,644 Financing lease 433,437 Discounting effect (193,437) Financing lease receivable $ 240,000 |
Schedule of net investment in financing lease | The financing lease is reflected on the consolidated balance sheets as net investment in financing lease, a receivable, as follows: As of December 31, (in thousands of U.S. dollars) 2019 2018 Minimum lease payments $ 589,074 $ 589,074 Unguaranteed residual value 146,000 146,000 Unearned income (440,345) (440,345) Initial direct cost, net 3,095 3,095 Net investment in financing lease at origination 297,824 297,824 Principal repayment and amortization (18,920) (14,751) Net investment in financing lease at period end 278,904 283,073 Less: Current portion (4,551) (4,168) Long term net investment in financing lease $ 274,353 $ 278,905 Net investment in financing lease consists of: Financing lease receivable $ 240,000 $ 247,488 Discounted unguaranteed residual value 38,904 35,585 Net investment in financing lease at period end $ 278,904 $ 283,073 |
Financial income (expense), n_2
Financial income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial income (expense), net | |
Schedule of financial income expense | The components of financial income (expense), net are as follows: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Interest income $ 947 725 $ 500 Interest expense: Interest expense (24,950) (26,077) (28,280) Commitment fees (381) (37) (977) Amortization of debt issuance cost and fair value of debt assumed (2,361) (700) (828) Total interest expense (27,692) (26,814) (30,085) Gain (loss) on debt extinguishment 1,030 — — Gain (loss) on derivative instruments — 4,681 2,463 Other items, net: Foreign exchange gain (loss) (396) (193) (968) Bank charges, fees and other (297) (143) (107) Withholding tax on interest expense and other (2,882) (2,571) (2,499) Total other items, net (3,575) (2,907) (3,574) Total financial income (expense), net $ (29,290) (24,315) $ (30,696) |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income tax | |
Schedule of components of income tax expense | The components of income tax expense recognized in the consolidated statements of income are as follows: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Current tax (benefit) expense $ 4,126 4,759 $ 35 Deferred tax (benefit) expense for Change in temporary differences 3,341 3,290 4,189 Tax loss and tax credit carried forward (196) 247 (314) Change in valuation allowance 4 9 (32) Total deferred tax (benefit) expense 3,149 3,546 3,843 Total income tax (benefit) expense $ 7,275 8,305 $ 3,878 Deferred tax (benefit) expense recognized in the consolidated statements of comprehensive income as a component of other comprehensive income (“OCI”) are as follows: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Cash flow hedge derivative instruments $ 389 299 $ 347 Deferred tax (benefit) expense recognized in OCI $ 389 299 $ 347 |
Schedule of reconciliation of the income before tax at the statutory rate | The reconciliation of the income before tax at the statutory rate in the Marshall Islands to the actual income tax expense for each year is as follows: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Income before tax $ 60,016 85,927 $ 63,068 At applicable statutory tax rate Amount computed at corporate tax of 0 % — — — Foreign tax rate differences 5,425 7,513 7,119 Permanent differences: Amended tax return: reinstatement of tax loss carryforward — — (1,486) Tax audit or amended tax return: change in uncertain tax position 558 (41) (2,228) Non-deductible interest expense 1,477 875 752 Non-deductible withholding tax 717 838 686 Non-deductible loss on derivatives 120 — — Tax exemptions (13) (36) (42) Non-deductible other financial items 194 116 81 Other non-deductible costs 45 63 59 Tax credits (1,252) (1,032) (1,031) Adjustment for valuation allowance 4 9 (32) Tax expense (benefit) for year $ 7,275 8,305 $ 3,878 |
Schedule of deferred income tax assets (liabilities) | Deferred income tax assets (liabilities) are summarized as follows: As of December 31, (in thousands of U.S. dollars) 2019 2018 Deferred tax assets: Accrued liabilities and other payables $ 235 $ 196 Derivative instruments 565 954 Other equipment 9 9 Tax credits carried forward 1,818 1,626 Tax loss carryforward 57 53 Valuation allowance (57) (53) Deferred tax liabilities: Accrued interest income (4,123) (3,837) Accrued liabilities and other payables (385) (154) Financing lease (10,451) (7,594) Deferred tax assets (liabilities), net $ (12,332) $ (8,800) |
Schedule of changes in the unrecognized tax benefits | Changes in the unrecognized tax benefits is summarized below: Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Unrecognized tax benefits as of January 1, $ (1,725) (2,626) $ (398) Increase related to prior year tax positions — — (2,228) Decrease related to prior year tax positions — 434 — Increase related to current year tax positions (558) (418) — Settlements — 885 — Unrecognized tax benefits as of December 31, $ (2,283) (1,725) $ (2,626) |
Prepaid expenses and other re_2
Prepaid expenses and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid expenses and other receivables | |
Schedule of prepaid expenses | The components of prepaid expenses and other receivables are as follows: As of December 31, (in thousands of U.S. dollars) 2019 2018 Refundable value added tax on import $ — $ 2,517 Prepaid expenses and other receivables 2,534 450 Total other prepaid expenses and other receivables $ 2,534 $ 2,967 |
Investments in joint ventures (
Investments in joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Investment method | As of December 31, (in thousands of U.S. dollars) 2019 2018 Accumulated earnings of joint ventures $ 3,270 $ — Accumulated losses of joint ventures $ — $ (2,808) |
SRV Joint Gas Ltd and SRV Joint Gas Two Ltd | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Financial information | The Partnership has a 50% interest in each of SRV Joint Gas Ltd. (owner of the Neptune ) and SRV Joint Gas Two Ltd. (owner of the Cape Ann ). The following table presents the summarized financial information of the joint ventures on a 100% combined basis. Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Time charter revenues $ 77,051 79,654 $ 84,330 Accrual historical boil-off claim (note 18) — — (23,700) Other income 7,814 6,684 — Total revenues 84,865 86,338 60,630 Operating expenses (18,088) (21,864) (17,256) Depreciation and amortization (20,524) (20,065) (20,244) Impairment of long-lived assets (1) (149) — — Operating income 46,104 44,409 23,130 Unrealized gain (loss) on derivative instruments (10,418) 16,992 14,388 Other financial expense, net (24,144) (26,140) (27,854) Net income (loss) $ 11,542 35,261 $ 9,664 Share of joint ventures owned 50 % 50 % 50 % Share of joint ventures net income (loss) before eliminations 5,771 17,631 4,832 Eliminations 307 307 307 Equity in earnings (losses) of joint ventures $ 6,078 17,938 $ 5,139 (1) At the completion of the class renewal survey of the Neptune , certain equipment was identified that was impaired. As of December 31, (in thousands of U.S. dollars) 2019 2018 Cash and cash equivalents $ 17,897 $ 7,958 Restricted cash 9,250 13,844 Other current assets 973 1,894 Total current assets 28,120 23,696 Restricted cash 34,650 25,448 Vessels, net of accumulated depreciation 521,060 539,324 Deferred charges — 194 Total long-term assets 555,710 564,966 Current portion of long-term debt 28,297 26,599 Amounts and loans due to owners and affiliates 629 1,215 Derivative instruments 13,089 10,178 Refund liabilities 26,691 26,055 Other current liabilities 10,327 8,924 Total current liabilities 79,033 72,971 Long-term debt 375,091 403,052 Loans due to owners and affiliates 7,663 7,071 Derivative instruments 59,070 51,563 Other long-term liabilities 40,952 43,526 Total long-term liabilities 482,776 505,212 Net assets (liabilities) $ 22,021 $ 10,479 Share of joint ventures owned 50 % 50 % Share of joint ventures net assets (liabilities) before eliminations 11,011 5,240 Eliminations (7,741) (8,048) Accumulated earnings (losses) of joint ventures $ 3,270 $ (2,808) |
Advances to joint ventures (Tab
Advances to joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Advances to joint ventures | |
Schedule of advances to joint ventures | As of December 31, (in thousands of U.S. dollars) 2019 2018 Current portion of advances to joint ventures $ — $ — Long-term advances to joint ventures 3,831 3,536 Advances/shareholder loans to joint ventures $ 3,831 $ 3,536 |
Vessels and other equipment (Ta
Vessels and other equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Vessels and other equipment | |
Schedule of vessels and other equipment | Dry- (in thousands of U.S. dollars) Vessel docking Total Historical cost December 31, 2017 $ 706,458 6,667 $ 713,125 Additions 257 — 257 Historical cost December 31, 2018 706,715 6,667 713,382 Depreciation for the year (19,387) (1,600) (20,987) Accumulated depreciation December 31, 2018 (50,871) (4,200) (55,071) Vessels, net December 31, 2018 655,844 2,467 658,311 Historical cost December 31, 2018 706,715 6,667 713,382 Additions 183 3,107 3,290 Historical cost December 31, 2019 706,898 9,774 716,672 Depreciation for the year (19,393) (1,777) (21,170) Accumulated depreciation December 31, 2019 (70,264) (5,977) (76,241) Vessels, net December 31, 2019 $ 636,634 3,797 $ 640,431 |
Intangibles and goodwill (Table
Intangibles and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangibles and goodwill | |
Schedule of indefinite-lived intangible assets | Option Above for time market time charter Total (in thousands of U.S. dollars) charter extension Intangibles Goodwill Total Historical cost December 31, 2017 $ 22,760 8,000 30,760 251 $ 31,011 Amortization for the year (3,631) — (3,631) — (3,631) Accumulated amortization, December 31, 2018 (10,272) — (10,272) — (10,272) Intangibles and goodwill, December 31, 2018 12,488 8,000 20,488 251 20,739 Historical cost December 31, 2018 22,760 8,000 30,760 251 31,011 Additions — — — — — Historical cost December 31, 2019 22,760 8,000 30,760 251 31,011 Amortization for the year (3,631) — (3,631) — (3,631) Accumulated amortization, December 31, 2019 (13,903) — (13,903) — (13,903) Intangibles and goodwill, December 31, 2019 $ 8,857 8,000 16,857 251 $ 17,108 |
Schedule of estimated future amortization expense | The following table presents estimated future amortization expense for the intangibles: (in thousands of U.S. dollars) Total 2020 $ 3,053 2021 2,755 2022 2,755 2023 2,755 2024 2,762 2025 and thereafter $ 2,777 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | As of December 31, (in thousands of U.S. dollars) 2019 2018 Lampung facility: Export credit tranche $ 94,210 $ 109,096 FSRU tranche 22,812 26,988 Gallant facility: Commercial tranche — 111,264 Export credit tranche — 29,333 Grace facility: Commercial tranche — 135,813 Export credit tranche — 27,750 $385 million facility: Commercial tranche 249,635 — Export credit tranche 51,167 — Revolving credit tranche 48,300 — Outstanding principal 466,124 440,244 Lampung facility unamortized debt issuance cost (4,309) (5,809) Gallant facility unamortized fair value of debt assumed — 215 Grace facility unamortized fair value of debt assumed — 895 $385 million facility unamortized debt issuance costs (4,854) — Total debt 456,961 435,545 Less: Current portion of long-term debt (44,660) (45,458) Long-term debt $ 412,301 $ 390,087 |
Schedule of outstanding principal on long-term debt | (in thousands of U.S. dollars) Total 2020 $ 44,660 2021 123,557 2022 25,597 2023 25,597 2024 25,597 2025 and thereafter 221,116 Total $ 466,124 |
Accrued liabilities and other_2
Accrued liabilities and other payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued liabilities and other payables | |
Summary of accrued liabilities and payables | As of December 31, (in thousands of U.S. dollars) 2019 2018 Accrued operating and administrative expenses $ 3,314 $ 3,004 Accrued property tax 3,033 — Accrued interest 2,850 — Current tax payable 818 1,375 Refund liabilities (note 5) 125 1,834 Current portion of advance for refundable value added tax — 429 Lease liability (note 2 and note 11) 75 — Other accruals and payables 949 816 Total accrued liabilities and other payables $ 11,164 $ 7,458 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of related party transactions | Amounts due from affiliates As of December 31, (in thousands of U.S. dollars) 2019 2018 Amounts due from affiliates $ 4,296 $ 4,328 Amounts, loans and promissory note due to owners and affiliates As of December 31, (in thousands of U.S. dollars) 2019 2018 Amounts due to owners and affiliates $ 2,513 $ 2,301 Revolving credit facility As of December 31, (in thousands of U.S. dollars) 2019 2018 Revolving credit facility $ 8,792 $ 39,292 |
Hoegh LNG and Subsidiaries [Member] | |
Schedule of related party transactions | As described in Related party agreements below, subsidiaries of Höegh LNG have provided administrative services to the Partnership and ship management and/or technical support services for the PGN FSRU Lampung , the Höegh Gallant and the Höegh Grace . Amounts included in the consolidated statements of income for the years ended December 31, 2019, 2018 and 2017 or included in the consolidated balance sheets as of December 31, 2019 and 2018 are as follows: (in thousands of U.S. dollars) 2019 2018 2017 Revenues Time charter revenue Höegh Gallant (1) $ 47,173 47,108 $ 46,382 Time charter and construction contract revenues indemnified by/refunded to Höegh LNG (2) — — (2,496) Operating expenses Vessel operating expenses (3) (24,523) (21,520) (21,124) Hours, travel expense and overhead (4) and Board of Directors’ fees (5) (4,072) (3,671) (3,284) Financial (income) expense Interest income from joint ventures (6) 295 273 370 Interest expense and commitment fees to Höegh LNG (7) (1,882) (2,938) (3,934) Total $ 16,991 19,252 $ 15,914 As of Balance sheet December 31, (in thousands of U.S. dollars) 2019 2018 Equity Cash contribution from Höegh LNG (8) $ — $ 1,701 Repayment of indemnification received from Höegh LNG (8) (64) (2,353) Issuance of units for Board of Directors’ fees (5) 194 200 Other and contribution from owner (9) 485 472 Total $ 615 $ 20 1) Time charter revenue Höegh Gallant: A subsidiary of Höegh LNG, EgyptCo, leases the Höegh Gallant . 2) Time charter revenues indemnified by/ refunded to Höegh LNG: As described under “Indemnifications” below, the Partnership refunded to Höegh LNG certain previous indemnification payments in 2017. 3) Vessel operating expenses: Subsidiaries of Höegh LNG provides ship management of vessels, including crews and the provision of all other services and supplies. 4) Hours, travel expenses and overhead: Subsidiaries of Höegh LNG provide management, accounting, bookkeeping and administrative support under administrative service agreements. These services are charges based upon the actual hours incurred for each individual as registered in the time-write system based on a rate which includes a provision for overhead and any associated travel expenses. 5) Board of Directors’ fees: Total Board of Directors’ fees were $496, $501 and $467 for the years ended December 31, 2019, 2018 and 2017, respectively. Part of the compensation is awarded as common units of the Partnership. Effective June 4, 2019, a total of 11,180 common units of the Partnership were awarded to non-employee directors as compensation of $194 for part of directors’ fees for 2019 under the Höegh LNG Partners LP Long Term Incentive Plan. Effective June 6, 2018 and May 22, 2017, a total of 11,050 and 9,805 common units, respectively, of the Partnership were awarded to non-employee directors as compensation of $200 and $189, respectively, for part of directors’ fees for 2018 and 2017. The awards were recorded as administrative expense and as an issuance of common units. Common units are recorded when issued. 6) Interest income from joint ventures: The Partnership and its joint venture partners have provided subordinated financing to the joint ventures as shareholder loans. Interest income for the Partnership’s shareholder loans to the joint ventures is recorded as interest income. 7) Interest expense and commitment fees to Höegh LNG and affiliates: Höegh LNG and its affiliates provided an $85 million revolving credit facility for general partnership purposes. The Partnership incurred a commitment fee on the undrawn balance until January 29, 2018 and an interest expense on the drawn balance. A seller’s credit note to finance part of the Höegh Gallant acquisition incurred interest expense until it was repaid in October 2017. 8) Cash contribution from/ distribution to Höegh LNG: As described under “Indemnifications” below, Höegh LNG made indemnification payments to the Partnership or received refunds of indemnification from the Partnership which were recorded as contributions or distributions to equity. 9) Other and contribution from owner: Höegh LNG granted share-based incentives to certain key employees whose services benefit the Partnership. Related expenses are recorded as administrative expenses and as a contribution from owner since the Partnership is not invoiced for this employee benefit. Effective March 21, 2019 and September 14, 2018, the Partnership granted or extended the terms for 10,917 and 28,018 phantom units, respectively, to the Chief Executive Officer and Chief Financial Officer of the Partnership. Related expenses are recorded as an administrative expense and as increase in equity. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments | |
Schedule of estimated fair value and carrying value of assets and liabilities | The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the financial instruments that are not accounted for at a fair value on a recurring basis. Trade payables and receivables for which the estimated fair values are equivalent to carrying values are not specified below. As of As of December 31, 2019 December 31, 2018 Carrying Fair Carrying Fair amount value amount value Asset Asset Asset Asset (in thousands of U.S. dollars) Level (Liability) (Liability) (Liability) (Liability) Recurring: Cash and cash equivalents 1 $ 39,126 39,126 26,326 $ 26,326 Restricted cash 1 20,693 20,693 19,128 19,128 Derivative instruments 2 (14,935) (14,935) (1,498) (1,498) Other: Amounts due from affiliate 2 4,296 4,296 4,328 4,328 Advances (shareholder loans) to joint ventures 2 3,831 4,029 3,536 3,579 Current amounts due to owners and affiliates 2 (2,513) (2,513) (2,301) (2,301) Lampung facility 2 (112,713) (119,598) (130,275) (142,087) Gallant facility 2 — — (140,812) (141,538) Grace facility 2 — — (164,458) (164,210) $385 million facility 2 (344,248) (352,219) — — Revolving credit facility due to owners and affiliates 2 $ (8,792) (8,717) (39,292) $ (38,999) |
Summary of the loan receivables by type of borrower | The following table contains a summary of the loan receivables by type of borrower and the method by which the credit quality is monitored on a quarterly basis: Class of Financing Receivables Credit Quality As of December 31, (in thousands of U.S. dollars) Indicator Grade 2019 2018 Trade receivable Payment activity Performing $ 735 $ 1,228 Amounts due from affiliate Payment activity Performing 4,296 4,328 Advances/ loans to joint ventures Payment activity Performing $ 3,831 $ 3,536 |
Risk management and concentra_2
Risk management and concentrations of risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risk management and concentrations of risk | |
Schedule of interest rate swap agreements | As of December 31, 2019, the following interest rate swap agreements were outstanding: Fair value Fixed Interest carrying interest rate Notional amount rate (in thousands of U.S. dollars) index amount liability Term (1) LIBOR-based debt Lampung interest rate swaps (2) LIBOR $ 117,022 $ (3,610) Sep 2026 2.800 % $385 million facility swaps (2) LIBOR $ 61,478 $ (3,241) Jan 2026 2.941 % $385 million facility swaps (2) LIBOR $ 61,478 $ (2,909) Oct 2025 2.838 % $385 million facility swaps (2) LIBOR $ 61,478 $ (2,699) Jan 2026 2.735 % $385 million facility swaps (2) LIBOR $ 61,478 $ (2,476) Jan 2026 2.650 % 1) Excludes the margins paid on the floating-rate debt. 2) All interest rate swaps are U.S. dollar denominated and the notional amount reduces quarterly from the effective date of the interest rate swaps. |
Schedule of fair value of derivative instruments | The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the consolidated balance sheets. Current Long-term Current Long-term assets: assets: liabilities: liabilities: derivative derivative derivative derivative (in thousands of U.S. dollars) instruments instruments instruments instruments As of December 31, 2019 Interest rate swaps $ — $ — $ (2,907) $ (12,028) As of December 31, 2018 Interest rate swaps $ 1,199 $ — $ (259) $ (2,438) |
Schedule of effect of cash flow hedge accounting on the consolidated statement of income | The following effects of cash flow hedges relating to interest rate swaps are included in gain (loss) on derivative instruments in the consolidated statements of income for the year ended December 31, 2019. Year ended December 31, 2019 Income tax (in thousands of U.S. dollars) Interest expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (956) $ — Amortization of amount excluded from hedge effectiveness 966 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (987) 389 Settlement of cash flow hedge 199 — Total gains (losses) on derivative instruments $ (778) $ 389 The following effects of cash flow hedges relating to interest rate swaps are included in total gains (losses) on derivative instruments in the consolidated statements of income for the years ended December 31, 2018 and 2017. Year ended December 31, (in thousands of U.S. dollars) 2018 2017 Interest rate swaps: Ineffective portion of cash flow hedge $ (990) $ (2) Amortization of amount excluded from hedge effectiveness 2,969 3,320 Reclassification discontinued hedge from OCI 3,557 — Reclassification from accumulated other comprehensive income (855) (855) Unrealized gains (losses) 4,681 2,463 Realized gains (losses) — — Total gains (losses) on derivative instruments $ 4,681 $ 2,463 |
Schedule of effect of cash flow hedge accounting on accumulated other comprehensive income (OCI) and earnings | Cash Flow Hedge Accumulated other comprehensive income Earnings Before tax Accumulated gains Tax benefit OCI: Net of Interest Tax (in thousands of U.S. dollars) (losses) (expense) tax expense benefit Accumulated OCI as of December 31, 2018 $ (5,902) 565 $ (5,337) Initial value of interest rate swap to be recognized in earnings on amortization approach (625) — (625) Effective portion of unrealized loss on cash flow hedge (13,535) — (13,535) Reclassification from accumulated other comprehensive income included in hedge effectiveness 956 — 956 (956) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 987 (389) 598 (987) 389 Other comprehensive income for period (12,217) (389) (12,606) Accumulated OCI as of December 31, 2019 $ (18,119) 176 $ (17,943) Gain (loss) reclassified to earnings $ (1,943) $ 389 The effect of cash flow hedges relating to interest rate swaps and the related tax effects on other comprehensive income and changes in accumulated other comprehensive income (“OCI”) is as follows as of and for the years ended December 31, 2018 and 2017. Cash Flow Hedge Before tax Tax benefit Accumulated (in thousands of U.S. dollars) gains (losses) (expense) Net of tax OCI Balance as of December 31, 2016 $ (6,947) 1,211 (5,736) $ (5,736) Effective portion of unrealized loss on cash flow hedge 2,480 — 2,480 2,480 Reclassification of amortization of cash flow hedge to earnings 855 (347) 508 508 Other comprehensive income for period 3,335 (347) 2,988 2,988 Balance as of December 31, 2017 $ (3,612) 864 (2,748) $ (2,748) Balance as of December 31, 2017 $ (3,612) 864 (2,748) $ (2,748) Effective portion of unrealized loss on cash flow hedge 412 — 412 412 Reclassification of amortization of cash flow hedge to earnings 855 (299) 556 556 Reclassification of discontinued cash flow hedge to earnings (3,557) — (3,557) (3,557) Other comprehensive income for period (2,290) (299) (2,589) (2,589) Balance as of December 31, 2018 $ (5,902) 565 (5,337) $ (5,337) |
Supplemental cash flow inform_2
Supplemental cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental cash flow information | |
Schedule of supplemental cash flow information | Year ended December 31, (in thousands of U.S. dollars) 2019 2018 2017 Supplemental disclosure of non-cash investing activities Non-cash expenditures for vessel and other equipment $ — (229) $ — Non-cash acquisition of non-controlling interest for the remaining 49% interest in the Höegh Grace entities — — 41,362 Supplemental disclosure of non-cash financing activities Non-cash revolving credit facility draw for the acquisition of non-controlling interest for the remaining 49% interest in the Höegh Grace entities $ — — $ 41,362 |
Issuance of common units and _2
Issuance of common units and Series A Preferred Units (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Issuance of common units and Series A Preferred Units | |
Schedule of proceeds received after issue of common units and preferred units in a public offering | Year ended December 31, 2019 Series A Preferred (in thousands of U.S. dollars) Common units Units Total Gross proceeds for units issued $ 1,042 13,298 $ 14,340 Less: Commissions (13) (233) (246) Net proceeds for units issued $ 1,029 13,065 $ 14,094 Year ended December 31, 2018 Series A (in thousands of U.S. dollars) Common units Preferred Units Total Gross proceeds for units issued $ 4,623 39,360 $ 43,983 Less: Commissions (60) (701) (761) Net proceeds for units issued $ 4,563 38,659 $ 43,222 Year ended (in thousands of U.S. dollars) December 31, 2017 Gross proceeds received $ 115,000 Less: Underwriters' discount (3,623) Less: Offering expenses (453) Net proceeds received $ 110,924 |
Common, subordinated and pref_2
Common, subordinated and preferred units (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Common, subordinated and preferred units | |
Schedule of movements in the number of units, subordinated units and preferred units | The following table shows the movements in the number of common units, subordinated units and preferred units during the years ended December 31, 2019, 2018 and 2017: Common 8.75% Common Units Series A Units Höegh Subordinated Preferred (in units) Public LNG Units Units December 31, 2016 17,639,039 2,116,060 13,156,060 — May 22, 2017; Awards to non-employee directors as compensation for directors' fees 9,805 — — — October 5, 2017; Series A preferred units offering — — — 4,600,000 December 31, 2017 17,648,844 2,116,060 13,156,060 4,600,000 June 6, 2018; Awards to non-employee directors as compensation for directors' fees 8,840 — — — July 5, 2018; Awards to non-employee directors as compensation for directors' fees 2,210 — — — Units issued to staff at Höegh LNG during 2018 14,622 (14,622) — — Phantom units issued to CEO/CFO during 2018 17,079 — — — ATM program (from January 26, 2018 to December 31, 2018) 253,106 — — 1,529,070 December 31, 2018 17,944,701 2,101,438 13,156,060 6,129,070 June 4, 2019; Awards to non-employee directors as compensation for directors' fees 8,944 — — — July 16, 2019; Awards to non-employee directors as compensation for directors' fees 2,236 — — — August 16, 2019; Subordinated units converted to common units — 13,156,060 (13,156,060) — Phantom units issued to CEO/CFO during 2019 19,745 — — — ATM program (from January 1, 2019 to December 31, 2019) 53,160 — — 496,520 December 31, 2019 18,028,786 15,257,498 — 6,625,590 |
Earning per unit and cash dis_2
Earning per unit and cash distributions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earning per unit and cash distributions | |
Schedule of calculation of basic and diluted earnings per unit | Year ended December 31, (in thousands of U.S. dollars, except per unit numbers) 2019 2018 2017 Net income $ 52,741 77,622 $ 59,190 Adjustment for: Non-controlling interest — — 10,408 Preferred unitholders’ interest in net income 13,850 12,303 2,480 Limited partners' interest in net income 38,891 65,319 46,302 Less: Dividends paid or to be paid (1) (60,149) (59,952) (57,764) Under (over) distributed earnings (21,258) 5,367 (11,462) Under (over) distributed earnings attributable to: Common units public (11,514) 2,900 (6,145) Common units Höegh LNG (3,211) 340 (736) Subordinated units Höegh LNG (6,533) 2,127 (4,581) $ (21,258) 5,367 $ (11,462) Basic weighted average units outstanding (in thousands) Common units public 17,986 17,856 17,645 Common units Höegh LNG 7,039 2,101 2,116 Subordinated units Höegh LNG 8,218 13,156 13,156 Diluted weighted average units outstanding (in thousands) Common units public 17,995 17,864 17,657 Common units Höegh LNG 7,039 2,101 2,116 Subordinated units Höegh LNG 8,218 13,156 13,156 Basic and diluted earnings per unit (2): Common unit public $ 1.12 $ 1.93 $ 1.37 Common unit Höegh LNG (3) $ 1.84 $ 2.03 $ 1.44 Subordinated unit Höegh LNG (3) $ 0.70 $ 2.03 $ 1.45 (1) Includes all distributions paid or to be paid in relationship to the period, regardless of whether the declaration and payment dates were prior to the end of the period and is based the number of units outstanding at the period end. (2) Effective March 21, 2019, granted 10,917 phantom units to the CEO/CFO of the Partnership. One-third of such phantom units vest as of November 30, 2020 and 2021, respectively. Effective March 23, 2018, the Partnership granted 14,584 phantom units to the then-serving CEO/CFO of the Partnership. One-third of such phantom units vest as of November 30, 2019, 2020 and 2021, respectively. Effective June 3, 2016, the Partnership granted 21,500 phantom units to the then-serving CEO/CFO of the Partnership. One-third of such phantom units vest as of December 31, 2017, November 30, 2018 and November 30, 2019, respectively. On September 14, 2018, the plan was amended to extend the terms and conditions of such unvested units for the grants effective March 23, 2017 and June 3, 2016 of the then-serving CEO/CFO that resigned as CEO/CFO of the Partnership. The phantom units impact the diluted weighted average units outstanding. (3) Includes total amounts attributable to incentive distributions rights of $1,597, $1,591 and $1,141 for the years ended December 31, 2019, 2018 and 2017, respectively, of which $908, $219 and $158 was attributed to common units owned by Höegh LNG and $688, $1,372 and $983 was attributed to subordinated units owned by Höegh LNG, for the years ended December 31, 2019, 2018 and 2017, respectively. (4) On August 16, 2019, all subordinated units converted into common units on a one-for-one basis. |
Description of business (Detail
Description of business (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Hoegh LNG Partners LP [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Marshall Islands |
Purpose | Holding Company |
Hoegh LNG Partners Operating LLC [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Marshall Islands |
Purpose | Holding Company |
Hoegh LNG Services Ltd [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | United Kingdom |
Purpose | Administration Services Company |
Hoegh LNG Lampung Pte. Ltd [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Singapore |
Purpose | Owns 49% of PT Hoegh LNG Lampung |
PT Hoegh LNG Lampung [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Indonesia |
Purpose | Owns PGN FSRU Lampung |
SRV Joint Gas Ltd [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Cayman Islands |
Purpose | Owns Neptune |
SRV Joint Gas Two Ltd [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Cayman Islands |
Purpose | Owns Cape Ann |
Hoegh LNG FRSU III Ltd | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Cayman Islands |
Purpose | Holding Company |
Hoegh LNG Cyprus Limited [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Cyprus |
Purpose | Owns Höegh Gallant |
Hoegh LNG Cyprus Limited Egypt Branch [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Egypt |
Purpose | Branch of Hoegh LNG Cyprus Limited |
Hoegh LNG Colombia Holding Ltd [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Cayman Islands |
Purpose | Owns 100% of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia S.A.S. |
Hoegh LNG FSRU IV Ltd | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Cayman Islands |
Purpose | Owns Höegh Grace |
Hoegh LNG Colombia S A S [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Jurisdiction of Incorporation or Registration | Colombia |
Purpose | Operating Company |
Description of business - Addit
Description of business - Additional information (Details) - USD ($) $ in Millions | Dec. 01, 2017 | Oct. 05, 2017 | Jan. 03, 2017 | Oct. 01, 2015 | Aug. 12, 2014 | Aug. 28, 2014 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 26, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Maximum Offering Amount | $ 120 | |||||||||
Subordinated Units Hoegh LNG [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Limited Partners Capital Account, Units Issued | 13,156,060 | |||||||||
Hoegh LNG FSRU IV Ltd | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Non Cancellable Lease Expiration Term | 10 years | |||||||||
Lease Expiration Term | 10 years | |||||||||
Lease Initial Term | 20 years | |||||||||
Hoegh LNG FSRU IV Ltd | Maximum [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Lease Expiration Term | 15 years | |||||||||
Hoegh LNG FSRU IV Ltd | Minimum [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Lease Expiration Term | 10 years | |||||||||
Hoegh LNG Holdings Ltd [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Limited Partners Capital Account, Units Issued | 2,116,060 | |||||||||
Percentage of incentive distribution rights | 100.00% | |||||||||
Percentage of Partnership Interest | 58.00% | |||||||||
Hoegh LNG Lampung Pte. Ltd [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | |||||||||
Mitsui Osk Lines Ltd And Tokyo Lng Tanker Co [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||||||
Hoegh LNG Partners LP [Member] | Series A Preferred Stock [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Limited Partners Capital Account, Units Issued | 4,600,000 | |||||||||
Proceeds from Issuance of Preferred Limited Partners Units | $ 110.9 | |||||||||
Preferred Stock, Dividend Rate, Percentage | 8.75% | |||||||||
Hoegh LNG Colombia Holding Ltd [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 49.00% | 51.00% | 51.00% | |||||||
Percentage of Partnership Interest | 51.00% | |||||||||
Hoegh LNG FRSU III Ltd | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | |||||||||
Sociedad Portuaria El Cayao [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Ownership Interest By Private Equity Investors | 49.00% | |||||||||
Sociedad Portuaria El Cayao [Member] | Promigas S.a. Esp [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 51.00% | |||||||||
Hoegh Grace entities [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Percentage of Partnership Interest | 51.00% | |||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | 49.00% | ||||||||
Non Cancellable Lease Expiration Term | 10 years | |||||||||
Lease Initial Term | 20 years | |||||||||
Hoegh Grace entities [Member] | Maximum [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Lease Expiration Term | 15 years | |||||||||
Hoegh Grace entities [Member] | Minimum [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Lease Expiration Term | 10 years | |||||||||
IPO [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Exercise Of Option, Additional Common Units | 1,440,000 | |||||||||
Limited Partners Capital Account, Units Issued | 11,040,000 | |||||||||
Partners' Capital Account, Public Sale of Units Net of Offering Costs | $ 203.5 | |||||||||
Subsidiaries [Member] | Hoegh LNG Holdings Ltd [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 100.00% | |||||||||
Underwritten Public Offering [Member] | ||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||
Limited Partners Capital Account, Units Issued | 6,588,389 | |||||||||
Partners' Capital Account, Public Sale of Units Net of Offering Costs | $ 111.5 |
Significant accounting polici_4
Significant accounting policies (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Above Market Leases [Member] | Hoegh Gallant [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years 4 months 24 days |
Above Market Leases [Member] | Hoegh Grace entities [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 9 years 6 months |
Option for time charter extension [Member] | Hoegh Gallant [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years 3 months 18 days |
Significant accounting polici_5
Significant accounting policies - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 01, 2019 | Jan. 01, 2019 | Dec. 31, 2017 | Dec. 01, 2017 | Jan. 31, 2017 | Jan. 03, 2017 | |
Significant Accounting Policies [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385,000 | |||||||
Lease, Practical Expedients, Package [true false] | true | |||||||
Lease, Practical Expedient, Use of Hindsight [true false] | true | |||||||
Operating Lease, Right-of-Use Asset | $ 91 | $ 150 | ||||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Due from Joint Ventures, Noncurrent | |||||||
Operating Lease, Liability | $ 91 | $ 150 | ||||||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Other Accrued Liabilities, Current | Accounts Payable and Other Accrued Liabilities, Current | Accounts Payable and Other Accrued Liabilities, Current | |||||
Goodwill | $ 251 | $ 251 | $ 251 | |||||
Hoegh Grace entities [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | 49.00% | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 49.00% | 51.00% | 51.00% | ||||
Neptune And Cape Ann [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | |||||
Above Market Leases [Member] | Hoegh Grace entities [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 9 years 6 months | |||||||
Above Market Leases [Member] | Hoegh Gallant [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 3 years 4 months 24 days | |||||||
Revolving Credit Facility [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85,000 | |||||||
$385 Million Facility [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385,000 | |||||||
Vessels [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 35 years | |||||||
SRV Joint Gas Two Ltd [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Advances to Affiliate | $ 800 | $ 700 | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||||
SRV Joint Gas Two Ltd [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Net assets (liabilities) | $ 700 | (2,000) | ||||||
Hoegh Grace | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 10 years | |||||||
SRV Joint Gas Ltd [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Advances to Affiliate | $ 3,000 | 2,800 | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||||
SRV Joint Gas Ltd [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Net assets (liabilities) | $ 2,600 | (800) | ||||||
PT Hoegh LNG Lampung [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Restricted Net Assets | $ 169,800 | $ 164,400 | ||||||
Property, Plant and Equipment, Useful Life | 20 years | |||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | |||||||
Statutory reserve on paid up capital, Percentage | 20.00% | 20.00% | ||||||
Hoegh LNG Cyprus Limited [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Restricted Net Assets | $ 0 | $ 4,600 | ||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | |||||||
Hoegh Lng Colombia Ltd [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Restricted Net Assets | $ 0 | $ 200 | ||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | |||||||
Hoegh Lng Colombia Ltd [Member] | Hoegh Grace entities [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | |||||||
Accounting Standards Update 2016-02 [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Operating Lease, Right-of-Use Asset | $ 100 | $ 150 | ||||||
Operating Lease, Liability | $ 100 | $ 150 |
Business combinations (Details)
Business combinations (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Use of proceeds from public offering (issuance of 6,588,389 common units to the public) | $ 45,300 |
Working capital adjustment | 800 |
Liabilities assumed | |
Total liabilities assumed | (91,522) |
Total identifiable net assets | 89,898 |
Acquired share in total identifiable net asset | 3,236 |
Hoegh Grace | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Use of proceeds from public offering (issuance of 6,588,389 common units to the public) | 91,768 |
Working capital adjustment | 407 |
Total consideration | 92,175 |
Assets acquired | |
Cash and cash equivalents | 3,774 |
Restricted cash | 19 |
Trade receivables | 4,446 |
Prepaid expenses and other receivables | 51 |
Vessel | 357,138 |
Other equipment | 30 |
Intangibles: Above market time charter | 11,760 |
Other long term assets | 830 |
Total assets | 378,048 |
Liabilities assumed | |
Trade payables | (193) |
Amounts due to owners and affiliates | (622) |
Accrued liabilities and other payables | (1,569) |
Total long term debt | (192,286) |
Derivative instruments | (2,642) |
Total liabilities assumed | (197,312) |
Total identifiable net assets | 180,736 |
Non-controlling interest in total identifiable net assets | 88,561 |
Acquired share in total identifiable net asset | $ 92,175 |
Business combinations - Acquisi
Business combinations - Acquisition of the non-controlling interest (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Business combinations | |
Cash portion of purchase price | $ 45,300 |
Revolving credit facility draw | 40,600 |
Revolving credit facility draw for working capital adjustment | 762 |
Total consideration | 86,662 |
49% Assets acquired | 181,420 |
49% Liabilities assumed | (91,522) |
Total identifiable net assets | 89,898 |
Non-controlling interest acquired | 89,898 |
Difference between net book value of acquired non-controlling interest and consideration paid | (3,236) |
Impact of acquisition of non-controlling interest on equity | $ 88,561 |
Business combinations - Additio
Business combinations - Additional information (Details) - USD ($) $ in Thousands | Dec. 01, 2017 | Jan. 03, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 31, 2017 |
Purchase Price Consideration [Line Items] | |||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 51,800 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 23,600 | ||||
Payments to Acquire Businesses, Gross | 45,300 | ||||
Business Combination, Consideration Transferred | 86,662 | ||||
Working Capital Adjustment | 800 | ||||
Revolving Credit Facility [Member] | |||||
Purchase Price Consideration [Line Items] | |||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 41,400 | ||||
Series A Preferred Stock [Member] | |||||
Purchase Price Consideration [Line Items] | |||||
Payments to Acquire Businesses, Gross | 45,300 | ||||
SPEC [Member] | |||||
Purchase Price Consideration [Line Items] | |||||
Other Intangible Assets, Net | 11,800 | ||||
Hoegh LNG FSRU IV Ltd | |||||
Purchase Price Consideration [Line Items] | |||||
Lease Initial Term | 20 years | ||||
Lease Expiration Term | 10 years | ||||
Non Cancellable Lease Expiration Term | 10 years | ||||
Hoegh LNG FSRU IV Ltd | Maximum [Member] | |||||
Purchase Price Consideration [Line Items] | |||||
Lease Expiration Term | 15 years | ||||
Hoegh LNG FSRU IV Ltd | Minimum [Member] | |||||
Purchase Price Consideration [Line Items] | |||||
Lease Expiration Term | 10 years | ||||
Hoegh LNG Colombia Holding Ltd [Member] | |||||
Purchase Price Consideration [Line Items] | |||||
Percentage of Partnership Interest | 51.00% | ||||
Deferred Tax Assets, Net of Valuation Allowance | $ 100 | ||||
Hoegh Grace entities [Member] | |||||
Purchase Price Consideration [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 51.00% | 49.00% | 51.00% | |
Lease Initial Term | 20 years | ||||
Percentage of Partnership Interest | 51.00% | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | 49.00% | |||
Business Combination, Consideration Transferred | $ 85,900 | ||||
Non Cancellable Lease Expiration Term | 10 years | ||||
Hoegh Grace entities [Member] | Maximum [Member] | |||||
Purchase Price Consideration [Line Items] | |||||
Lease Expiration Term | 15 years | ||||
Hoegh Grace entities [Member] | Minimum [Member] | |||||
Purchase Price Consideration [Line Items] | |||||
Lease Expiration Term | 10 years | ||||
Hoegh Grace Entities and Hoegh LNG Colombia Holding Ltd [Member] | |||||
Purchase Price Consideration [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | $ 400 | ||||
Payments to Acquire Businesses, Gross | $ 91,800 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Time charter revenues | $ 145,321 | $ 144,952 | $ 143,531 |
Other revenue | 115 | 1,609 | 0 |
Accrual historical boil-off claim | 0 | ||
Total revenues | 145,436 | 146,561 | 143,531 |
Operating expenses | (40,731) | (33,111) | (33,701) |
Construction contract expenses | 0 | 0 | (151) |
Equity in earnings (losses) of joint ventures | 6,078 | 17,938 | 5,139 |
Less: Non-controlling interest in Segment EBITDA | 0 | ||
Segment EBITDA | 0 | 0 | 0 |
Add: Non-controlling interest in Segment EBITDA | 0 | ||
Depreciation, amortization and impairment | (21,477) | (21,146) | (21,054) |
Operating income (loss) | 89,306 | 110,242 | 93,764 |
Gain (loss) on debt extinguishment | 1,030 | 0 | 0 |
Gain (loss) on derivative instruments | 0 | 4,681 | 2,463 |
Other financial income (expense), net | (30,320) | (28,996) | (33,159) |
Income (loss) before tax | 60,016 | 85,927 | 63,068 |
Income tax benefit (expense) | (7,275) | (8,305) | (3,878) |
Net income (loss) | 52,741 | 77,622 | 59,190 |
Preferred unitholders' interest in net income | 13,850 | 12,303 | 2,480 |
Non-controlling interest in net income | 0 | 0 | 10,408 |
Limited partners' interest in net income (loss) | 38,891 | 65,319 | 46,302 |
Vessels, net of accumulated depreciation | 640,431 | 658,311 | |
Net investment in financing lease | 278,904 | 283,073 | |
Goodwill | 251 | 251 | 251 |
Advances to joint ventures | 3,831 | 3,536 | |
Total assets | 1,012,800 | 1,023,040 | |
Accumulated earnings of joint ventures | 3,270 | 0 | |
Accumulated losses of joint ventures | 0 | (2,808) | |
Expenditures for vessels & equipment | 211 | 257 | |
Expenditures for drydocking | 3,107 | 0 | |
Impairment/retirement of equipment | 0 | ||
Principal repayment direct financing lease | 4,168 | 3,814 | |
Amortization of above market contract | 3,631 | 3,631 | 3,631 |
Majority Held FSRUs | |||
Time charter revenues | 145,321 | 144,952 | 143,531 |
Other revenue | 115 | 1,609 | |
Accrual historical boil-off claim | 0 | ||
Total revenues | 145,436 | 146,561 | 143,531 |
Operating expenses | (34,266) | (27,294) | (27,612) |
Construction contract expenses | (151) | ||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 |
Less: Non-controlling interest in Segment EBITDA | (19,210) | ||
Segment EBITDA | 111,170 | 119,267 | 96,558 |
Add: Non-controlling interest in Segment EBITDA | 19,210 | ||
Depreciation, amortization and impairment | (21,477) | (21,146) | (21,054) |
Operating income (loss) | 89,693 | 98,121 | 94,714 |
Gain (loss) on debt extinguishment | 1,030 | ||
Gain (loss) on derivative instruments | 0 | 4,681 | 2,463 |
Other financial income (expense), net | (12,511) | (26,381) | (29,656) |
Income (loss) before tax | 78,212 | 76,421 | 67,521 |
Income tax benefit (expense) | (7,278) | (8,253) | (3,893) |
Net income (loss) | 70,934 | 68,168 | 63,628 |
Preferred unitholders' interest in net income | 0 | 0 | 0 |
Non-controlling interest in net income | 10,408 | ||
Limited partners' interest in net income (loss) | 70,934 | 68,168 | 53,220 |
Vessels, net of accumulated depreciation | 640,431 | 658,311 | |
Net investment in financing lease | 278,904 | 283,073 | |
Goodwill | 251 | 251 | |
Advances to joint ventures | 0 | 0 | |
Total assets | 996,201 | 1,007,202 | |
Accumulated earnings of joint ventures | 0 | ||
Accumulated losses of joint ventures | 0 | ||
Expenditures for vessels & equipment | 211 | 257 | |
Expenditures for drydocking | 3,107 | 0 | |
Impairment/retirement of equipment | 0 | ||
Principal repayment direct financing lease | 4,168 | 3,814 | |
Amortization of above market contract | 3,631 | 3,631 | |
Joint Venture FSRUs | |||
Time charter revenues | 42,433 | 43,169 | 42,165 |
Other revenue | 0 | 0 | |
Accrual historical boil-off claim | (11,850) | ||
Total revenues | 42,433 | 43,169 | 30,315 |
Operating expenses | (9,044) | (10,932) | (8,628) |
Construction contract expenses | 0 | ||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 |
Less: Non-controlling interest in Segment EBITDA | 0 | ||
Segment EBITDA | 33,389 | 32,237 | 21,687 |
Add: Non-controlling interest in Segment EBITDA | 0 | ||
Depreciation, amortization and impairment | (10,030) | (9,725) | (9,815) |
Operating income (loss) | 23,359 | 22,512 | 11,872 |
Gain (loss) on debt extinguishment | 0 | ||
Gain (loss) on derivative instruments | (5,209) | 8,496 | 7,194 |
Other financial income (expense), net | (12,072) | (13,070) | (13,927) |
Income (loss) before tax | 6,078 | 17,938 | 5,139 |
Income tax benefit (expense) | 0 | 0 | 0 |
Net income (loss) | 6,078 | 17,938 | 5,139 |
Preferred unitholders' interest in net income | 0 | 0 | 0 |
Non-controlling interest in net income | 0 | ||
Limited partners' interest in net income (loss) | 6,078 | 17,938 | 5,139 |
Vessels, net of accumulated depreciation | 252,789 | 261,614 | |
Net investment in financing lease | 0 | 0 | |
Goodwill | 0 | 0 | |
Advances to joint ventures | 0 | 0 | |
Total assets | 284,174 | 286,283 | |
Accumulated earnings of joint ventures | 0 | ||
Accumulated losses of joint ventures | 0 | ||
Expenditures for vessels & equipment | 195 | 3,305 | |
Expenditures for drydocking | 913 | 2,490 | |
Impairment/retirement of equipment | (75) | ||
Principal repayment direct financing lease | 0 | 0 | |
Amortization of above market contract | 0 | 0 | |
Other | |||
Time charter revenues | 0 | 0 | 0 |
Other revenue | 0 | 0 | |
Accrual historical boil-off claim | 0 | ||
Total revenues | 0 | 0 | 0 |
Operating expenses | (6,465) | (5,817) | (6,089) |
Construction contract expenses | 0 | ||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 |
Less: Non-controlling interest in Segment EBITDA | 0 | ||
Segment EBITDA | (6,465) | (5,817) | (6,089) |
Add: Non-controlling interest in Segment EBITDA | 0 | ||
Depreciation, amortization and impairment | 0 | 0 | 0 |
Operating income (loss) | (6,465) | (5,817) | (6,089) |
Gain (loss) on debt extinguishment | 0 | ||
Gain (loss) on derivative instruments | 0 | 0 | 0 |
Other financial income (expense), net | (17,809) | (2,615) | (3,503) |
Income (loss) before tax | (24,274) | (8,432) | (9,592) |
Income tax benefit (expense) | 3 | (52) | 15 |
Net income (loss) | (24,271) | (8,484) | (9,577) |
Preferred unitholders' interest in net income | 0 | 0 | 0 |
Non-controlling interest in net income | 0 | ||
Limited partners' interest in net income (loss) | (24,271) | (8,484) | (9,577) |
Vessels, net of accumulated depreciation | 0 | 0 | |
Net investment in financing lease | 0 | 0 | |
Goodwill | 0 | 0 | |
Advances to joint ventures | 3,831 | 3,536 | |
Total assets | 16,599 | 15,838 | |
Accumulated earnings of joint ventures | 50 | ||
Accumulated losses of joint ventures | 50 | ||
Expenditures for vessels & equipment | 0 | 0 | |
Expenditures for drydocking | 0 | 0 | |
Impairment/retirement of equipment | 0 | ||
Principal repayment direct financing lease | 0 | 0 | |
Amortization of above market contract | 0 | 0 | |
Total Segment reporting | |||
Time charter revenues | 187,754 | 188,121 | 185,696 |
Other revenue | 115 | 1,609 | |
Accrual historical boil-off claim | (11,850) | ||
Total revenues | 187,869 | 189,730 | 173,846 |
Operating expenses | (49,775) | (44,043) | (42,329) |
Construction contract expenses | (151) | ||
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 |
Less: Non-controlling interest in Segment EBITDA | (19,210) | ||
Segment EBITDA | 138,094 | 145,687 | 112,156 |
Add: Non-controlling interest in Segment EBITDA | 19,210 | ||
Depreciation, amortization and impairment | (31,507) | (30,871) | (30,869) |
Operating income (loss) | 106,587 | 114,816 | 100,497 |
Gain (loss) on debt extinguishment | 1,030 | ||
Gain (loss) on derivative instruments | (5,209) | 13,177 | 9,657 |
Other financial income (expense), net | (42,392) | (42,066) | (47,086) |
Income (loss) before tax | 60,016 | 85,927 | 63,068 |
Income tax benefit (expense) | (7,275) | (8,305) | (3,878) |
Net income (loss) | 52,741 | 77,622 | 59,190 |
Preferred unitholders' interest in net income | 0 | 0 | 0 |
Non-controlling interest in net income | 10,408 | ||
Limited partners' interest in net income (loss) | 52,741 | 77,622 | 48,782 |
Vessels, net of accumulated depreciation | 893,220 | 919,925 | |
Net investment in financing lease | 278,904 | 283,073 | |
Goodwill | 251 | 251 | |
Advances to joint ventures | 3,831 | 3,536 | |
Total assets | 1,296,974 | 1,309,323 | |
Accumulated earnings of joint ventures | 50 | ||
Accumulated losses of joint ventures | 50 | ||
Expenditures for vessels & equipment | 406 | 3,562 | |
Expenditures for drydocking | 4,020 | 2,490 | |
Impairment/retirement of equipment | (75) | ||
Principal repayment direct financing lease | 4,168 | 3,814 | |
Amortization of above market contract | 3,631 | 3,631 | |
Eliminations | |||
Time charter revenues | (42,433) | (43,169) | (42,165) |
Other revenue | 0 | 0 | |
Accrual historical boil-off claim | 11,850 | ||
Total revenues | (42,433) | (43,169) | 0 |
Operating expenses | 9,044 | 10,932 | 8,628 |
Construction contract expenses | 0 | ||
Equity in earnings (losses) of joint ventures | 6,078 | 17,938 | 5,139 |
Less: Non-controlling interest in Segment EBITDA | 19,210 | ||
Segment EBITDA | 0 | 0 | 0 |
Add: Non-controlling interest in Segment EBITDA | (19,210) | ||
Depreciation, amortization and impairment | 10,030 | 9,725 | 9,815 |
Operating income (loss) | 0 | 0 | 0 |
Gain (loss) on debt extinguishment | 0 | ||
Gain (loss) on derivative instruments | 5,209 | (8,496) | (7,194) |
Other financial income (expense), net | 12,072 | 13,070 | 13,927 |
Income (loss) before tax | 0 | 0 | 0 |
Income tax benefit (expense) | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 |
Preferred unitholders' interest in net income | 13,850 | 12,303 | 2,480 |
Non-controlling interest in net income | 0 | ||
Limited partners' interest in net income (loss) | (13,850) | (12,303) | $ (2,480) |
Vessels, net of accumulated depreciation | (252,789) | (261,614) | |
Net investment in financing lease | 0 | 0 | |
Goodwill | 0 | 0 | |
Advances to joint ventures | 0 | 0 | |
Total assets | (284,174) | (286,283) | |
Accumulated earnings of joint ventures | 3,220 | ||
Accumulated losses of joint ventures | (2,858) | ||
Expenditures for vessels & equipment | (195) | (3,305) | |
Expenditures for drydocking | (913) | (2,490) | |
Impairment/retirement of equipment | 75 | ||
Principal repayment direct financing lease | 0 | 0 | |
Amortization of above market contract | $ 0 | $ 0 |
Segment information - Percentag
Segment information - Percentage of consolidated total revenues (Details) - Sales Revenue, Net [Member] | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PT PGN LNG Indonesia [Member] | |||
Percentage of Revenue | 33.00% | 33.00% | 33.00% |
Hoegh LNG Egypt LLC [Member] | |||
Percentage of Revenue | 31.00% | 31.00% | 31.00% |
Sociedad Portuaria El Cayao [Member] | |||
Percentage of Revenue | 36.00% | 36.00% | 36.00% |
Segment information - Additiona
Segment information - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 01, 2017 | Jan. 01, 2017 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 385,000 | ||||
Property tax and penalties | 3,000 | ||||
Construction contract expenses | 0 | $ 0 | $ 151 | ||
Other [Member] | |||||
Construction contract expenses | $ 200 | ||||
Hoegh Grace entities [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 49.00% | 51.00% | ||
Hoegh Grace entities [Member] | Consolidated Entities [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 85,000 | ||||
$385 Million Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385,000 | ||||
Neptune And Cape Ann [Member] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% |
Time charter revenues and rel_3
Time charter revenues and related contract balances - Disaggregated revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lease revenues, excluding amortization | $ 88,889 | $ 89,215 | |
Time charter service revenues, excluding amortization | 60,063 | 59,368 | |
Amortization of above market contract intangibles | (3,631) | (3,631) | $ (3,631) |
Amortization of deferred revenue for modifications & drydock | 0 | 0 | |
Other revenue | 115 | 1,609 | 0 |
Total revenues | 145,436 | 146,561 | 143,531 |
Majority Held FSRUs | |||
Lease revenues, excluding amortization | 88,889 | 89,215 | |
Time charter service revenues, excluding amortization | 60,063 | 59,368 | |
Amortization of above market contract intangibles | (3,631) | (3,631) | |
Amortization of deferred revenue for modifications & drydock | 0 | 0 | |
Other revenue | 115 | 1,609 | |
Total revenues | 145,436 | 146,561 | 143,531 |
Joint Venture FSRUs | |||
Lease revenues, excluding amortization | 25,690 | 25,690 | |
Time charter service revenues, excluding amortization | 14,095 | 15,078 | |
Amortization of above market contract intangibles | 0 | 0 | |
Amortization of deferred revenue for modifications & drydock | 2,648 | 2,401 | |
Other revenue | 0 | 0 | |
Total revenues | 42,433 | 43,169 | 30,315 |
Other | |||
Lease revenues, excluding amortization | 0 | 0 | |
Time charter service revenues, excluding amortization | 0 | 0 | |
Amortization of above market contract intangibles | 0 | 0 | |
Amortization of deferred revenue for modifications & drydock | 0 | 0 | |
Other revenue | 0 | 0 | |
Total revenues | 0 | 0 | 0 |
Total Segment reporting | |||
Lease revenues, excluding amortization | 114,579 | 114,905 | |
Time charter service revenues, excluding amortization | 74,158 | 74,446 | |
Amortization of above market contract intangibles | (3,631) | (3,631) | |
Amortization of deferred revenue for modifications & drydock | 2,648 | 2,401 | |
Other revenue | 115 | 1,609 | |
Total revenues | 187,869 | 189,730 | 173,846 |
Eliminations | |||
Lease revenues, excluding amortization | (25,690) | (25,690) | |
Time charter service revenues, excluding amortization | (14,095) | (15,078) | |
Amortization of above market contract intangibles | 0 | 0 | |
Amortization of deferred revenue for modifications & drydock | (2,648) | (2,401) | |
Other revenue | 0 | 0 | |
Total revenues | $ (42,433) | $ (43,169) | $ 0 |
Time charter revenues and rel_4
Time charter revenues and related contract balances - Consolidated receivables between lease and service (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Time charter revenues and related contract balances | ||
Trade receivable for lease | $ 2,898 | $ 2,898 |
Trade receivable for time charter services | 2,133 | 2,658 |
Total trade receivable and amounts due from affiliates | $ 5,031 | $ 5,556 |
Time charter revenues and rel_5
Time charter revenues and related contract balances - Contract assets and liabilities (Details) - Time Charter Services - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Beginning Balance | $ 303 | |
Additions | $ 279 | |
Reduction for receivables recorded | (303) | |
Ending Balance | 279 | |
Balance reflected in balance sheet | 279 | |
Beginning Balance | (1,834) | (6,187) |
Additions | (65) | (1,747) |
Reduction for receivables recorded | 89 | |
Reduction for revenue recognized from previous years | 497 | 2,772 |
Repayments of refund liabilities to charterer | 1,188 | 3,328 |
Ending Balance | (125) | (1,834) |
Balance reflected in balance sheet | $ (125) | $ (1,834) |
Time charter revenues and rel_6
Time charter revenues and related contract balances - Minimum contractual future revenues (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Time charter revenues and related contract balances | ||
2020 | $ 24,880 | |
2021 | 19,703 | |
2022 | 19,703 | |
2023 | 19,703 | |
2024 | 19,703 | |
Thereafter | 116,386 | |
Total - undiscounted | 220,078 | |
2020 | 71,100 | |
2021 | 59,903 | |
2022 | 59,903 | |
2023 | 59,903 | |
2024 | 59,903 | |
Thereafter | 346,369 | |
Total - undiscounted | 657,081 | |
Operating lease | 223,644 | |
Financing lease | 433,437 | |
Discounting effect | (193,437) | |
Financing lease | 240,000 | $ 247,488 |
2020 | 95,980 | |
2021 | 79,606 | |
2022 | 79,606 | |
2023 | 79,606 | |
2024 | 79,606 | |
Thereafter | 462,755 | |
Total - undiscounted | $ 877,159 |
Time charter revenues and rel_7
Time charter revenues and related contract balances - Direct financing lease receivable and unguaranteed residual value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing lease | ||
Minimum lease payments | $ 589,074 | $ 589,074 |
Unguaranteed residual value | 146,000 | 146,000 |
Unearned income | (440,345) | (440,345) |
Initial direct cost, net | 3,095 | 3,095 |
Net investment in financing lease at origination | 297,824 | 297,824 |
Principal repayment and amortization | (18,920) | (14,751) |
Net investment in financing lease at period end | 278,904 | 283,073 |
Less: Current portion | (4,551) | (4,168) |
Long term net investment in financing lease | 274,353 | 278,905 |
Net investment in financing lease consists of: | ||
Financing lease receivable | 240,000 | 247,488 |
Discounted unguaranteed residual value | 38,904 | 35,585 |
Net investment in financing lease at period end | $ 278,904 | $ 283,073 |
Time charter revenues and net i
Time charter revenues and net investment in direct financing lease - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Hoegh LNG FRSU III Ltd | ||
Capital Leased Assets [Line Items] | ||
Business Combinations Charter Out One Vessel to Predefined Hire Rate | 90.00% | |
Hoegh Gallant [Member] | ||
Capital Leased Assets [Line Items] | ||
Lease Expiration Year | 2020 | |
Lease Expiration Term | 5 years | |
PGN FSRU Lampung | ||
Capital Leased Assets [Line Items] | ||
Lease Expiration Year | 2034 | |
Lease Expiration Term | 20 years | |
Hoegh Grace | ||
Capital Leased Assets [Line Items] | ||
Lease Expiration Year | 2036 | |
Lease Expiration Term | 20 years | |
Non Cancellable Lease Expiration Term | 10 years | |
Hoegh LNG FSRU IV Ltd | ||
Capital Leased Assets [Line Items] | ||
Lease Initial Term | 20 years | |
Maximum [Member] | Hoegh LNG FSRU IV Ltd | ||
Capital Leased Assets [Line Items] | ||
Lease Expiration Term | 15 years | |
Minimum [Member] | Hoegh LNG FSRU IV Ltd | ||
Capital Leased Assets [Line Items] | ||
Lease Expiration Term | 10 years | |
Time Charter Services | ||
Capital Leased Assets [Line Items] | ||
Reduction for revenue recognized from previous years | $ 497 | $ 2,772 |
Repayments of refund liabilities to charterer | $ 1,188 | $ 3,328 |
Financial income (expense), n_3
Financial income (expense), net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial income (expense), net | |||
Interest income | $ 947 | $ 725 | $ 500 |
Interest expense: | |||
Interest expense | (24,950) | (26,077) | (28,280) |
Commitment fees | (381) | (37) | (977) |
Amortization of debt issuance cost and fair value of debt assumed | (2,361) | (700) | (828) |
Total interest expense | (27,692) | (26,814) | (30,085) |
Gain (loss) on debt extinguishment | 1,030 | 0 | 0 |
Gain (loss) on derivative instruments | 0 | 4,681 | 2,463 |
Other items, net: | |||
Foreign exchange gain (loss) | (396) | (193) | (968) |
Bank charges, fees and other | (297) | (143) | (107) |
Withholding tax on interest expense and other | (2,882) | (2,571) | (2,499) |
Total other items, net | (3,575) | (2,907) | (3,574) |
Total financial income (expense), net | (29,290) | $ (24,315) | $ (30,696) |
Debt Instrument Financial Covenants | $ 385,000 |
Income tax (Details)
Income tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax | |||
Total current tax (benefit) expense | $ 4,126 | $ 4,759 | $ 35 |
Deferred tax (benefit) expense for | |||
Change in temporary differences | 3,341 | 3,290 | 4,189 |
Tax loss and tax credit carried forward | (196) | 247 | (314) |
Change in valuation allowance | 4 | 9 | (32) |
Total deferred tax (benefit) expense | 3,149 | 3,546 | 3,843 |
Total income tax (benefit) expense | $ 7,275 | $ 8,305 | $ 3,878 |
Income tax - Deferred tax (bene
Income tax - Deferred tax (benefit) expense recognized in OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax | |||
Cash flow hedge derivative instruments | $ 389 | $ 299 | $ 347 |
Deferred tax (benefit) expense recognized in OCI | $ 389 | $ 299 | $ 347 |
Income tax - Reconciliation of
Income tax - Reconciliation of the income before tax at the statutory rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax | |||
Income before tax | $ 60,016 | $ 85,927 | $ 63,068 |
At applicable statutory tax rate | |||
Amount computed at corporate tax of 0% | 0 | 0 | 0 |
Foreign tax rate differences | 5,425 | 7,513 | 7,119 |
Permanent differences: | |||
Amended tax return: reinstatement of tax loss carryforward | 0 | 0 | (1,486) |
Tax audit or amended tax return: change in uncertain tax position | 558 | (41) | (2,228) |
Non-deductible interest expense | 1,477 | 875 | 752 |
Non-deductible withholding tax | 717 | 838 | 686 |
Non-deductible loss on derivatives | 120 | 0 | 0 |
Tax exemptions | (13) | (36) | (42) |
Non-deductible other financial items | 194 | 116 | 81 |
Other non-deductible costs | 45 | 63 | 59 |
Tax credits | (1,252) | (1,032) | (1,031) |
Adjustment for valuation allowance | 4 | 9 | (32) |
Tax expense (benefit) for year | $ 7,275 | $ 8,305 | $ 3,878 |
Income tax - Deferred income ta
Income tax - Deferred income tax assets (liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Accrued liabilities and other payables | $ 235 | $ 196 |
Derivative instruments | 565 | 954 |
Other equipment | 9 | 9 |
Tax credits carried forward | 1,818 | 1,626 |
Tax loss carryforward | 57 | 53 |
Valuation allowance | (57) | (53) |
Deferred tax liabilities: | ||
Accrued interest income | (4,123) | (3,837) |
Accrued liabilities and other payables | (385) | (154) |
Financing lease | (10,451) | (7,594) |
Deferred tax assets (liabilities), net | $ (12,332) | $ (8,800) |
Income tax - Changes in the unr
Income tax - Changes in the unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax | |||
Unrecognized tax benefits as of January 1, | $ (1,725) | $ (2,626) | $ (398) |
Increase related to prior year tax positions | 0 | 0 | (2,228) |
Decrease related to prior year tax positions | 0 | 434 | 0 |
Increase related to current year tax positions | (558) | (418) | 0 |
Settlements | 0 | 885 | 0 |
Unrecognized tax benefits as of December 31, | $ (2,283) | $ (1,725) | $ (2,626) |
Income tax - Additional Informa
Income tax - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Tax Credit Carryforward, Amount | $ 1,486 | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 4 | $ 9 | (32) | |
Unrecognized Tax Benefits | 2,283 | 1,725 | 2,626 | $ 398 |
Reduction to the uncertain tax position | 434 | |||
Increases in uncertain tax positions | 558 | 418 | ||
Amended tax return: reinstatement of tax loss carryforward | 0 | 885 | 0 | |
Other Noncash Income Tax Expense | 867 | 852 | 861 | |
Accrued Income Taxes, Noncurrent | 2,283 | 1,725 | ||
Reversal of uncertain tax position | 2,228 | |||
Income Tax Expense (Benefit) | $ 7,275 | $ 8,305 | $ 3,878 | |
Colombia | ||||
Income tax subject to examination year | 2017 | |||
Indonesia | ||||
Income tax subject to examination year | 2015 | |||
Income Tax Examination Year Concluded Audit | 2013 | |||
Income Tax Examination Year Concluded Audit One | 2014 | |||
SINGAPORE | ||||
Income tax subject to examination year | 2015 | |||
Tax Credit Carry forward Expiring In 2020 And 2023 [Member] | ||||
Tax Credit Carryforward, Amount | $ 455 | |||
Tax Credit Carryforward Expiring In 2020 [Member] | ||||
Tax Credit Carryforward, Amount | $ 566 | |||
Tax Credit Carryforward, Year of Expiration | 2020 | |||
Tax Credit Carryforward Expiring In 2021 [Member] | ||||
Tax Credit Carryforward, Amount | $ 1,003 | |||
Tax Credit Carryforward, Year of Expiration | 2021 |
Prepaid expenses and other re_3
Prepaid expenses and other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid expenses and other receivables | ||
Refundable value added tax on import | $ 2,517 | |
Prepaid expenses and other receivables | $ 2,534 | 450 |
Total other prepaid expenses and other receivables | $ 2,534 | $ 2,967 |
Investments in joint ventures -
Investments in joint ventures - Investment method (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments in joint ventures | ||
Accumulated earnings of joint ventures | $ 3,270 | $ 0 |
Accumulated losses of joint ventures | $ 0 | $ (2,808) |
Investments in joint ventures_2
Investments in joint ventures - Joint ventures on aggregated basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Time charter revenues | $ 145,321 | $ 144,952 | $ 143,531 | |
Accrual historical boil-off claim (note 18) | 0 | |||
Other income | 115 | 1,609 | 0 | |
Total revenues | 145,436 | 146,561 | 143,531 | |
Operating expenses | (40,731) | (33,111) | (33,701) | |
Depreciation and amortization | (21,477) | (21,146) | (21,054) | |
Impairment of long-lived assets | 0 | |||
Operating income | 89,306 | 110,242 | 93,764 | |
Unrealized gain (loss) on derivative instruments | 0 | 4,681 | 2,463 | |
Net income (loss) | 52,741 | 77,622 | 59,190 | |
Equity in earnings (losses) of joint ventures | 6,078 | 17,938 | 5,139 | |
Cash and cash equivalents | 39,126 | 26,326 | 22,679 | $ 18,915 |
Restricted cash | 8,066 | 6,003 | 6,962 | 8,055 |
Total current assets | 59,771 | 46,865 | ||
Restricted cash | 12,627 | 13,125 | 13,640 | $ 14,154 |
Vessels, net of accumulated depreciation | 640,431 | 658,311 | ||
Total long-term assets | 953,029 | 976,175 | ||
Current portion of long-term debt | 44,660 | 45,458 | ||
Derivative instruments | 2,907 | 259 | ||
Refund liabilities | 125 | 1,834 | ||
Total current liabilities | 63,253 | 57,180 | ||
Long-term debt | 412,301 | 390,087 | ||
Derivative instruments | 12,028 | 2,438 | ||
Other long-term liabilities | 84 | 99 | ||
Total long-term liabilities | 448,037 | 445,423 | ||
Srv Joint Gas Limited And Srv Joint Gas Two Limited | ||||
Time charter revenues | 77,051 | 79,654 | 84,330 | |
Accrual historical boil-off claim (note 18) | (23,700) | |||
Other income | 7,814 | 6,684 | ||
Total revenues | 84,865 | 86,338 | 60,630 | |
Operating expenses | (18,088) | (21,864) | (17,256) | |
Depreciation and amortization | (20,524) | (20,065) | (20,244) | |
Impairment of long-lived assets | (149) | |||
Operating income | 46,104 | 44,409 | 23,130 | |
Unrealized gain (loss) on derivative instruments | (10,418) | 16,992 | 14,388 | |
Other financial expense, net | (24,144) | (26,140) | (27,854) | |
Net income (loss) | $ 11,542 | $ 35,261 | $ 9,664 | |
Share of joint ventures owned | 50.00% | 50.00% | 50.00% | |
Share of joint ventures net income (loss) before eliminations | $ 5,771 | $ 17,631 | $ 4,832 | |
Eliminations | 307 | 307 | 307 | |
Equity in earnings (losses) of joint ventures | 6,078 | 17,938 | $ 5,139 | |
Cash and cash equivalents | 17,897 | 7,958 | ||
Restricted cash | 9,250 | 13,844 | ||
Other current assets | 973 | 1,894 | ||
Total current assets | 28,120 | 23,696 | ||
Restricted cash | 34,650 | 25,448 | ||
Vessels, net of accumulated depreciation | 521,060 | 539,324 | ||
Deferred charges | 194 | |||
Total long-term assets | 555,710 | 564,966 | ||
Current portion of long-term debt | 28,297 | 26,599 | ||
Amounts and loans due to owners and affiliates | 629 | 1,215 | ||
Derivative instruments | 13,089 | 10,178 | ||
Refund liabilities | 26,691 | 26,055 | ||
Other current liabilities | 10,327 | 8,924 | ||
Total current liabilities | 79,033 | 72,971 | ||
Long-term debt | 375,091 | 403,052 | ||
Loans due to owners and affiliates | 7,663 | 7,071 | ||
Derivative instruments | 59,070 | 51,563 | ||
Other long-term liabilities | 40,952 | 43,526 | ||
Total long-term liabilities | 482,776 | 505,212 | ||
Net assets (liabilities) | $ 22,021 | $ 10,479 | ||
Share of joint ventures owned | 50.00% | 50.00% | 50.00% | |
Share of joint ventures net liabilities before eliminations | $ 11,011 | $ 5,240 | ||
Eliminations | (7,741) | (8,048) | ||
Accumulated earnings (losses) of joint ventures | $ 3,270 | $ (2,808) |
Investments in joint ventures_3
Investments in joint ventures - Additional Information (Details) | Dec. 31, 2019 |
SRV Joint Gas Ltd [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
SRV Joint Gas Two Ltd [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Advances to joint ventures (Det
Advances to joint ventures (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Advances to joint ventures | ||
Long-term advances to joint ventures | $ 3,831 | $ 3,536 |
Advances/shareholder loans to joint ventures | $ 3,831 | $ 3,536 |
Advances to joint ventures - Ad
Advances to joint ventures - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 3,831 | $ 3,536 |
Debt Service Coverage Ratio | 1.20% | |
SRV Joint Gas Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 3,000 | 2,800 |
SRV Joint Gas Two Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from Joint Ventures | $ 800 | $ 700 |
Shareholder [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% |
Vessels and other equipment (De
Vessels and other equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Beginning Balance, Historical Cost | $ 713,382 | $ 713,125 |
Additions | 3,290 | 257 |
Ending Balance, Historical Cost | 716,672 | 713,382 |
Depreciation for the year | (21,170) | (20,987) |
Accumulated depreciation | (76,241) | (55,071) |
Vessel, net | 640,431 | 658,311 |
Vessel [Member] | ||
Beginning Balance, Historical Cost | 706,715 | 706,458 |
Additions | 183 | 257 |
Ending Balance, Historical Cost | 706,898 | 706,715 |
Depreciation for the year | (19,393) | (19,387) |
Accumulated depreciation | (70,264) | (50,871) |
Vessel, net | 636,634 | 655,844 |
Dry Docking [Member] | ||
Beginning Balance, Historical Cost | 6,667 | 6,667 |
Additions | 3,107 | 0 |
Ending Balance, Historical Cost | 9,774 | 6,667 |
Depreciation for the year | (1,777) | (1,600) |
Accumulated depreciation | (5,977) | (4,200) |
Vessel, net | $ 3,797 | $ 2,467 |
Vessels and other equipment - A
Vessels and other equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 01, 2019 | Jan. 01, 2019 | |
Operating Lease, Right-of-Use Asset | $ 91 | $ 150 | |||
Operating Lease, Liability | 91 | $ 150 | |||
Property, Plant and Equipment, Gross | 716,672 | $ 713,382 | $ 713,125 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 76,241 | 55,071 | |||
Depreciation | 21,170 | 20,987 | |||
Equipment [Member] | |||||
Property, Plant and Equipment, Gross | 845 | 817 | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 679 | 372 | |||
Depreciation | 307 | $ 159 | $ 79 | ||
Accounting Standards Update 2016-02 [Member] | |||||
Operating Lease, Right-of-Use Asset | 100 | $ 150 | |||
Operating Lease, Liability | $ 100 | $ 150 |
Intangibles and goodwill (Detai
Intangibles and goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Historical cost, Beginning balance | $ 30,760 | $ 30,760 | ||
Amortization for the year | (3,631) | (3,631) | ||
Accumulated amortization | $ (13,903) | $ (10,272) | ||
Historical cost, Ending balance | 30,760 | 30,760 | ||
Intangibles and goodwill | 16,857 | 20,488 | ||
Historical cost, Goodwill beginning balance | 251 | 251 | ||
Historical cost, Goodwill ending balance | 251 | 251 | ||
Intangibles and goodwill | 251 | 251 | 251 | 251 |
Historical cost, Beginning balance | 20,739 | 31,011 | ||
Accumulated amortization | (13,903) | (10,272) | ||
Amortization for the year | (3,631) | (3,631) | ||
Historical cost, Ending balance | 17,108 | 20,739 | ||
Option for time charter extension [Member] | ||||
Historical cost, Beginning balance | 8,000 | 8,000 | ||
Historical cost, Ending balance | 8,000 | 8,000 | ||
Intangibles and goodwill | 8,000 | 8,000 | ||
Above Market Time Charter [Member] | ||||
Historical cost, Beginning balance | 22,760 | 22,760 | ||
Amortization for the year | (3,631) | (3,631) | ||
Accumulated amortization | (13,903) | (10,272) | ||
Historical cost, Ending balance | $ 22,760 | $ 22,760 | ||
Intangibles and goodwill | $ 8,857 | $ 12,488 |
Intangibles and goodwill - Esti
Intangibles and goodwill - Estimated future amortization expense (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Intangibles and goodwill | |
2020 | $ 3,053 |
2021 | 2,755 |
2022 | 2,755 |
2023 | 2,755 |
2024 | 2,762 |
2025 and thereafter | $ 2,777 |
Long-term debt (Details)
Long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Outstanding principal | $ 466,124 | $ 440,244 |
Total debt | 456,961 | 435,545 |
Less: Current portion of long-term debt | (44,660) | (45,458) |
Long-term debt | 412,301 | 390,087 |
Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (4,309) | (5,809) |
Total debt | 112,713 | 130,275 |
Gallant facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized fair value of debt assumed | 0 | 215 |
Total debt | 0 | 140,812 |
Grace facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized fair value of debt assumed | 0 | 895 |
Total debt | 0 | 164,458 |
$385 Million Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (4,854) | 0 |
Export Credit Tranche [Member] | Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 94,210 | 109,096 |
Export Credit Tranche [Member] | Gallant facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 0 | 29,333 |
Export Credit Tranche [Member] | Grace facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 0 | 27,750 |
Export Credit Tranche [Member] | $385 Million Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 51,167 | 0 |
FSRU tranche [Member] | Lampung Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 22,812 | 26,988 |
Commercial tranche [Member] | Gallant facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 0 | 111,264 |
Commercial tranche [Member] | Grace facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 0 | 135,813 |
Commercial tranche [Member] | $385 Million Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 249,635 | 0 |
Revolving Credit Facility [Member] | $385 Million Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 48,300 | $ 0 |
Long-term debt - Principal on l
Long-term debt - Principal on long-term debt outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 44,660 | |
2021 | 123,557 | |
2022 | 25,597 | |
2023 | 25,597 | |
2024 | 25,597 | |
2025 and thereafter | 221,116 | |
Total | $ 466,124 | $ 440,244 |
Long-term debt - Additional inf
Long-term debt - Additional information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 29, 2019 | Sep. 30, 2013 | |
Debt Instrument [Line Items] | ||||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 381 | $ 37 | $ 977 | |||
Loan Covenant, Security Maintenance Percentage to Loans Outstanding | 125.00% | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385,000 | |||||
Repayments of Debt | 34,000 | 17,500 | 58,705 | |||
Revolving credit due to owners and affiliates repayment | 34,000 | |||||
Payments of arrangement fees | $ 5,797 | $ 0 | $ 0 | |||
Hoegh LNG Partners LP [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Covenant Description | The Partnership must maintainConsolidated book equity (excluding hedge reserves and mark to market value of derivatives) equal to the greater of25% of total assets, and$150 millionConsolidated working capital (current assets, excluding intercompany receivables and marked-to-market value of any financial derivative, less current liabilities, excluding intercompany payables, marked-to-market value of any financial derivative and the current portion of long-term debt) shall at all time be greater than zeroMinimum liquidity (cash and cash equivalents and available draws under a bank credit facility for a term of more than 12 months) equal to the greater of$15 million, and$2.5 million multiplied by the number of vessels owned or leased by the Partnership (prorated for partial ownership), subject to a cap of $20 millionA ratio of combined EBITDA for the Vessel Owners to debt service (principal repayments, guarantee commission, commitment fees and interest expense) for the preceding twelve months of a minimum of 115% | |||||
Lampung Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Weighted Average Interest Rate | 6.20% | 5.90% | ||||
Gallant And Grace Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Debt | $ 303,200 | |||||
Repayments of Accrued interest | 1,600 | |||||
$385 Million Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 320,000 | |||||
Repayments of Debt | 303,200 | |||||
Repayments of Accrued interest | 1,600 | |||||
Payments of arrangement fees | 5,500 | |||||
Remaining proceeds used for general partnership purposes | $ 9,600 | |||||
Export credit tranche [Member] | Hegh Gallant [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.98% | |||||
Export credit tranche [Member] | Hegh Grace [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.88% | |||||
Export credit tranche [Member] | Lampung Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Description of Variable Rate Basis | The interest rate for the export credit tranche is LIBOR plus a margin of 2.3%. | |||||
Line of Credit Facility, Frequency of Payments | The export credit tranche is repayable in quarterly installments over 12 years | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.30% | |||||
Export credit tranche [Member] | $385 Million Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Future repayment upon maturity of commercial tranche | $ 9,500 | |||||
FSRU tranche [Member] | Lampung Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Description of Variable Rate Basis | The FSRU tranche has an interest rate of LIBOR plus a margin of 3.4%. | |||||
Line of Credit Facility, Frequency of Payments | The FSRU tranche is repayable quarterly over 7 years | |||||
Debt Instrument, Balloon Payment | $ 16,500 | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.40% | |||||
Commercial tranche [Member] | $385 Million Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Weighted Average Interest Rate | 4.70% | |||||
Secured Debt [Member] | Lampung Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Covenant Description | The primary financial covenants under the Lampung facility are as follows:Borrower must maintain a minimum debt service coverage ratio of 1.10 to 1.00 for the preceding nine-month period tested on each quarterly repayment date;Guarantor's book equity must be greater than the higher of (i) $200 million and (ii) 25% of total assets; andGuarantor's free liquid assets (cash and cash equivalents or available draws on credit facilities) must be greater than $20 million. | |||||
Term Loan Facility [Member] | Lampung Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 299,000 | |||||
385 million Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus a margin of 2.30% | |||||
Line of Credit Facility, Frequency of Payments | The commercial tranche is repayable quarterly with a final balloon payment of $136.1 | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.30% | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385,000 | |||||
Amount drew | $ 320,000 | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 1.60% | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Weighted Average Interest Rate | 6.60% | 6.30% | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85,000 | |||||
Revolving Credit Facility [Member] | $385 Million Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 63,000 | |||||
Amount drew | $ 48,300 | |||||
Revolving Credit Facility Due To Owners And Affiliates [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85,000 |
Accrued liabilities and other_3
Accrued liabilities and other payables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued liabilities and other payables | ||
Accrued administrative expenses | $ 3,314 | $ 3,004 |
Accrued operating expense | 3,033 | |
Accrued interest | 2,850 | |
Current tax payable | 818 | 1,375 |
Refund liabilities (note 5) | 125 | 1,834 |
Current portion of advance for refundable value added tax | 429 | |
Lease liability (note 2 and note 11) | 75 | |
Other accruals and payables | 949 | 816 |
Total accrued liabilities and other payables | $ 11,164 | $ 7,458 |
Related party transactions - St
Related party transactions - Statement of income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Time charter revenue Hegh Gallant | $ 145,321 | $ 144,952 | $ 143,531 |
Time charter and construction contract revenues indemnified by/refunded to Hegh LNG | 64 | 2,353 | 1,534 |
Operating expenses | |||
Vessel operating expenses | (30,870) | (24,195) | (23,791) |
Interest income from joint ventures | 947 | 725 | 500 |
Interest expense and commitment fees to Hegh LNG | (27,692) | (26,814) | (30,085) |
Total | 52,741 | 77,622 | 59,190 |
Hoegh LNG and Subsidiaries [Member] | |||
Revenues | |||
Time charter and construction contract revenues indemnified by/refunded to Hegh LNG | (2,496) | ||
Operating expenses | |||
Vessel operating expenses | (24,523) | (21,520) | (21,124) |
Hours, travel expense and overhead and Board of Directors' fees | (4,072) | (3,671) | (3,284) |
Interest income from joint ventures | 295 | 273 | 370 |
Interest expense and commitment fees to Hegh LNG | (1,882) | (2,938) | (3,934) |
Total | 16,991 | 19,252 | 15,914 |
Hoegh Gallant [Member] | |||
Revenues | |||
Time charter revenue Hegh Gallant | $ 47,173 | $ 47,108 | $ 46,382 |
Related party transactions - Ba
Related party transactions - Balance sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Cash contribution from Hoegh LNG | $ 1,701 | $ 2,075 | |
Repayment of indemnifications received from Hoegh LNG | $ (64) | (2,353) | (1,534) |
Issuance of units for Board of Directors' fees | 194 | 200 | $ 189 |
Other and contribution from owner | 485 | 472 | |
Equity: Total | 615 | 20 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Issuance of units for Board of Directors' fees | 194 | 200 | |
Hoegh LNG and Subsidiaries [Member] | |||
Related Party Transaction [Line Items] | |||
Cash contribution from Hoegh LNG | 0 | 1,701 | |
Repayment of indemnifications received from Hoegh LNG | $ (64) | $ (2,353) |
Related party transactions - Re
Related party transactions - Receivables and payables from related parties (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Related party transactions | ||
Amounts due from affiliates | $ 4,296 | $ 4,328 |
Amounts due to owners and affiliates | $ 2,513 | $ 2,301 |
Related party transactions - _2
Related party transactions - Revolving credit facility (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Related party transactions | ||
Revolving credit facility | $ 8,792 | $ 39,292 |
Related party transactions - Ad
Related party transactions - Additional Information (Details) - USD ($) $ in Thousands | Jun. 04, 2019 | May 29, 2019 | Mar. 21, 2019 | Sep. 14, 2018 | Jun. 06, 2018 | Dec. 31, 2017 | May 22, 2017 | Jan. 03, 2017 | Jun. 03, 2016 | Mar. 21, 2019 | Mar. 23, 2018 | Aug. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 29, 2018 | Dec. 01, 2017 | Jan. 01, 2017 |
Related Party Transaction [Line Items] | ||||||||||||||||||
Revolving Credit Due To Owners And Affiliates | $ 8,792 | $ 39,292 | ||||||||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | 73,804 | 72,497 | $ 57,037 | |||||||||||||||
Partners' Capital Account, Unit-based Compensation | 194 | 200 | 189 | |||||||||||||||
Repayment of Indemnifications Received From Hoegh Lng | 64 | 2,353 | $ 1,534 | |||||||||||||||
Hoegh Grace entities [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 49.00% | 49.00% | 51.00% | ||||||||||||||
Director [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Total Board of Directors' fees | 496 | 501 | $ 467 | |||||||||||||||
Partners' Capital Account, Unit-based Compensation | $ 194 | $ 200 | ||||||||||||||||
Chief Executive Officer Chief Financial Officer [Member] | Phantom Units [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Units granted | 10,917 | 28,018 | 21,500 | 10,917 | 14,584 | |||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Debt, Weighted Average Interest Rate | 6.60% | 6.30% | ||||||||||||||||
Revolving Credit Due To Owners And Affiliates | $ 85,000 | $ 85,000 | $ 85,000 | $ 85,000 | ||||||||||||||
Line of Credit Facility Original Expiration Date | Jan. 1, 2020 | |||||||||||||||||
Line of Credit Facility, Expiration Date | Jan. 1, 2023 | |||||||||||||||||
Hoegh LNG [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Indemnification Under the Omnibus Agreement | $ 900 | 1,600 | ||||||||||||||||
Percentage Of Ownership Interest In Acquisition | 49.00% | 51.00% | ||||||||||||||||
Repayment of Indemnification Received from Hoegh Lng Revenue | 2,500 | |||||||||||||||||
Repayment of Indemnification Received from Hoegh Lng | $ 100 | 2,400 | 1,500 | |||||||||||||||
Hoegh LNG [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.40% | |||||||||||||||||
Hoegh LNG [Member] | Revolving Credit Facility Maturing At 2020 [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||||||||||||||||
Hoegh LNG [Member] | Revolving Credit Facility Maturing At 2021 And Thereaftter[Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | |||||||||||||||||
Hoegh LNG and Subsidiaries [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 28,400 | 28,200 | 27,000 | |||||||||||||||
Repayment of Indemnifications Received From Hoegh Lng | (2,496) | |||||||||||||||||
LP Long Term Incentive Plan [Member] | Director [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Partners' Capital Account, Units, Unit-based Compensation | 11,180 | 11,050 | 9,805 | |||||||||||||||
Partners' Capital Account, Unit-based Compensation | $ 194 | 200 | 189 | |||||||||||||||
Egypt Co [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Indemnification Under Technical Issues | 500 | $ 500 | ||||||||||||||||
SRV Joint Gas Ltd [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
indemnification received from HoeghLng | $ 300 |
Financial Instruments - Estimat
Financial Instruments - Estimated fair value and carrying value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 39,126 | $ 26,326 | $ 22,679 | $ 18,915 |
Restricted cash | 20,693 | 19,128 | ||
Amounts due from affiliate | 4,296 | 4,328 | ||
Derivative instruments | (14,935) | (1,498) | ||
Advances (shareholder loans) to joint ventures | 3,831 | 3,536 | ||
Current amounts due to owners and affiliates | (2,513) | (2,301) | ||
Long-term Debt | (456,961) | (435,545) | ||
Revolving credit facility | (8,792) | (39,292) | ||
Lampung Facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | (112,713) | (130,275) | ||
Gallant facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | 0 | (140,812) | ||
Grace facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | 0 | (164,458) | ||
385 million Facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | (344,248) | 0 | ||
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 39,126 | 26,326 | ||
Restricted cash | 20,693 | 19,128 | ||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative instruments | (14,935) | (1,498) | ||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amounts due from affiliate | 4,296 | 4,328 | ||
Advances (shareholder loans) to joint ventures | 4,029 | 3,579 | ||
Current amounts due to owners and affiliates | (2,513) | (2,301) | ||
Revolving credit facility | (8,717) | (38,999) | ||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | Lampung Facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | (119,598) | (142,087) | ||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | Gallant facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | 0 | (141,538) | ||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | Grace facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | 0 | (164,210) | ||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | 385 million Facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | $ (352,219) | $ 0 |
Financial Instruments - Loan re
Financial Instruments - Loan receivables by type of borrower (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Amounts due from affiliate | $ 4,296 | $ 4,328 |
Advances/ loans to joint ventures | 3,831 | 3,536 |
Payment activity [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Trade receivable | 735 | 1,228 |
Amounts due from affiliate | 4,296 | 4,328 |
Advances/ loans to joint ventures | $ 3,831 | $ 3,536 |
Risk management and concentra_3
Risk management and concentrations of risk - Interest rate swap agreements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
2.941 % Interest Rate [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional Amount | $ 61,478 |
Derivative Liability, Fair Value carrying amount assets | $ (3,241) |
Derivative, Term | Jan 2026 |
Derivative, Fixed interest rate | 2.941% |
2.838 % Interest Rate [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional Amount | $ 61,478 |
Derivative Liability, Fair Value carrying amount assets | $ (2,909) |
Derivative, Term | Oct 2025 |
Derivative, Fixed interest rate | 2.838% |
2.735 % Interest Rate [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional Amount | $ 61,478 |
Derivative Liability, Fair Value carrying amount assets | $ (2,699) |
Derivative, Term | Jan 2026 |
Derivative, Fixed interest rate | 2.735% |
2.650 % Interest Rate [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional Amount | $ 61,478 |
Derivative Liability, Fair Value carrying amount assets | $ (2,476) |
Derivative, Term | Jan 2026 |
Derivative, Fixed interest rate | 2.65% |
Lampung [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional Amount | $ 117,022 |
Derivative Liability, Fair Value carrying amount assets | $ (3,610) |
Derivative, Term | Sep 2026 |
Derivative, Fixed interest rate | 2.80% |
Risk management and concentra_4
Risk management and concentrations of risk - Fair value of derivative instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | $ 0 | $ 1,199 |
Derivative Liability, Current | (2,907) | (259) |
Derivative Liability, Noncurrent | (12,028) | (2,438) |
Interest rate swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 0 | 1,199 |
Derivative Asset, Noncurrent | 0 | 0 |
Derivative Liability, Current | (2,907) | (259) |
Derivative Liability, Noncurrent | $ (12,028) | $ (2,438) |
Risk management and concentra_5
Risk management and concentrations of risk - Cash flow hedge accounting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification from accumulated other comprehensive income included in hedge effectiveness | $ (956) | $ (855) | $ (855) |
Reclassification from accumulated other comprehensive income included in hedge effectiveness, tax | 0 | (299) | $ (347) |
Amortization of amount excluded from hedge effectiveness, tax | 0 | ||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach | 987 | $ (3,557) | |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, tax | 389 | ||
Settlement of cash flow hedge, tax | 0 | ||
Total gains (losses) on derivative instruments, tax | 389 | ||
Interest rate swap [Member] | |||
Reclassification from accumulated other comprehensive income included in hedge effectiveness | (956) | ||
Amortization of amount excluded from hedge effectiveness | 966 | ||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach | (987) | ||
Settlement of cash flow hedge | 199 | ||
Total gains (losses) on derivative instruments | $ (778) |
Risk management and concentra_6
Risk management and concentrations of risk - Cash flow hedges relating to interest rate swaps are included in total gains (losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total gains (losses) on derivative instruments | $ 0 | $ 4,681 | $ 2,463 |
Realized gains (losses) [Member] | |||
Total gains (losses) on derivative instruments | 0 | 0 | |
Unrealized gains (losses) [Member] | |||
Total gains (losses) on derivative instruments | 4,681 | 2,463 | |
Interest rate swap [Member] | |||
Ineffective portion of cash flow hedge | (990) | (2) | |
Amortization of amount excluded from hedge effectiveness | 2,969 | 3,320 | |
Reclassification discontinued hedge from OCI | 3,557 | ||
Reclassification from accumulated other comprehensive income | $ (855) | $ (855) |
Risk management and concentra_7
Risk management and concentrations of risk - Effect of cash flow hedge accounting on accumulated other comprehensive income (OCI) and earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Beginning Balance, Before tax gains (losses) | $ (5,902) | $ (3,612) | $ (6,947) |
Initial value of interest rate swap to be recognized in earnings on amortization approach, Before tax gains (losses) | (625) | ||
Effective portion of unrealized loss on cash flow hedge, Before tax gains (losses) | (13,535) | 412 | 2,480 |
Reclassification of amortization of cash flow hedge to earnings, Before tax gains (losses) | 956 | 855 | 855 |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Before tax gains (losses) | 987 | (3,557) | |
Other comprehensive income for period, Before tax gains (losses) | (12,217) | (2,290) | 3,335 |
Ending Balance, Before tax gains (losses) | (18,119) | (5,902) | (3,612) |
Beginning Balance, Tax benefit (expense) | 565 | 864 | 1,211 |
Initial value of interest rate swap to be recognized in earnings on amortization approach, Tax benefit (expense) | 0 | ||
Effective portion of unrealized loss on cash flow hedge, Tax benefit (expense) | 0 | ||
Reclassification of amortization of cash flow hedge to earnings, Tax benefit (expense) | 0 | (299) | (347) |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Tax benefit (expense) | (389) | ||
Other comprehensive income for period, Tax benefit (expense) | (389) | (299) | (347) |
Ending Balance, Tax benefit (expense) | 176 | 565 | 864 |
Beginning Balance, Net of tax | (5,337) | (2,748) | (5,736) |
Initial value of interest rate swap to be recognized in earnings on amortization approach, Net of tax | (625) | ||
Effective portion of unrealized loss on cash flow hedge, Net of tax | (13,535) | 412 | 2,480 |
Reclassification of amortization of cash flow hedge to earnings, Net of tax | 956 | 556 | 508 |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Net of tax | 598 | (3,557) | |
Other comprehensive income for period, Net of tax | (12,606) | (2,589) | 2,988 |
Ending Balance, Net of tax | (17,943) | $ (5,337) | $ (2,748) |
Gain (loss) reclassified to earnings, tax | 389 | ||
Interest Expense [Member] | |||
Reclassification of amortization of cash flow hedge to earnings, Before tax gains (losses) | (956) | ||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Before tax gains (losses) | (987) | ||
Gain (loss) reclassified to earnings | $ (1,943) |
Risk management and concentra_8
Risk management and concentrations of risk - Additional Information (Details) - USD ($) $ in Millions | Dec. 29, 2014 | Mar. 17, 2014 | Dec. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Jan. 01, 2017 | Oct. 01, 2015 |
Debt Instrument Financial Covenants | $ 385 | ||||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 3.2 | ||||||
$385 million facility [Member] | |||||||
Debt Instrument Financial Covenants | $ 385 | $ 385 | |||||
Derivative, Notional Amount | $ 127.7 | 130 | |||||
2.941% rate [Member] | |||||||
Derivative, Notional Amount | 65 | ||||||
2.838% rate [Member] | |||||||
Derivative, Notional Amount | $ 65 | ||||||
2.650% rate [Member] | |||||||
Derivative, Notional Amount | 63.8 | ||||||
2.735% rate [Member] | |||||||
Derivative, Notional Amount | $ 63.8 | ||||||
Grace [Member] | |||||||
Derivative, Notional Amount | $ 164 | ||||||
Debt Instrument, Face Amount | $ 164 | ||||||
Maximum [Member] | Grace [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.315% | ||||||
Maximum [Member] | Hoegh Gallant [Member] | |||||||
Derivative, Notional Amount | $ 146.3 | ||||||
Derivative, Fixed Interest Rate | 1.9145% | ||||||
Minimum [Member] | Grace [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.305% | ||||||
Minimum [Member] | Hoegh Gallant [Member] | |||||||
Derivative, Notional Amount | $ 146.3 | ||||||
Derivative, Fixed Interest Rate | 1.9105% | ||||||
Interest rate swap [Member] | Maximum [Member] | $385 million facility [Member] | |||||||
Derivative, Fixed Interest Rate | 2.735% | 2.838% | |||||
Interest rate swap [Member] | Minimum [Member] | $385 million facility [Member] | |||||||
Derivative, Fixed Interest Rate | 2.65% | 2.941% | |||||
Lampung Facility [Member] | |||||||
Derivative, Notional Amount | $ 237.1 | ||||||
Derivative, Term of Contract | 12 years | ||||||
Derivative, Fixed Interest Rate | 2.80% | ||||||
Repayments of Secured Debt | $ 7.9 |
Commitments and contingencies (
Commitments and contingencies (Details) - USD ($) $ in Thousands | Jun. 14, 2019 | Sep. 08, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Indemnification Under Technical Modification, Remaining Cost | $ 800 | |||||||
Repayment of Indemnifications Received From Hoegh Lng | 64 | $ 2,353 | $ 1,534 | |||||
Unrecognized Tax Benefits | $ 2,626 | 2,283 | 1,725 | 2,626 | $ 398 | |||
Exposure to property tax and penalties | 3,000 | |||||||
Annual Property Tax Payable | $ 600 | |||||||
Income tax examination, year under examination | 5 years | |||||||
Corporate Joint Venture [Member] | ||||||||
Loss Contingency, Estimate of Possible Loss | $ 58,000 | |||||||
Gross Amount Of Arbitration Claim Liability | $ 54,000 | $ 52,000 | ||||||
Loss Contingency, Liability associated with the Boil of Claim | 23,700 | $ 23,700 | ||||||
Hoegh LNG [Member] | ||||||||
Indemnification Under Technical Modification, Remaining Cost | $ 400 | |||||||
Indemnification Under Technical Issues | 500 | 500 | ||||||
Indemnification payments received | 300 | |||||||
Indemnifications Under Omnibus Agreement | 900 | 1,600 | ||||||
Repayment of Indemnifications Received From Hoegh Lng | $ 100 | 2,400 | 2,500 | |||||
Loss Contingency Accrual | $ 11,900 | 11,900 | ||||||
Loss Contingency, Damages Sought | Depending on interpretations of the tribunal's determination for the deduction to the gross claim and the other disputed contractual provisions, the joint ventures estimate that their aggregate liability associated with the boil-off claim is in the millions of dollars and could range between the mid-to-upper teens to the mid-$30's | |||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 50.00% | |||||||
Deferred Revenue, Revenue Recognized | $ 1,500 | |||||||
Hoegh LNG [Member] | Corporate Joint Venture [Member] | ||||||||
Loss Contingency Accrual | $ 11,900 | |||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 50.00% | 50.00% |
Supplemental cash flow inform_3
Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental disclosure of non-cash investing activities | |||
Non-cash expenditures for vessel and other equipment | $ 0 | $ (229) | $ 0 |
Non-cash acquisition of non-controlling interest for the remaining 49% interest in the Hoegh Grace entities | 0 | 0 | 41,362 |
Supplemental disclosure of non-cash financing activities | |||
Non-cash revolving credit facility draw for the acquisition of non-controlling interest for the remaining 49% interest in the Hegh Grace entities | $ 0 | $ 0 | $ 41,362 |
Supplemental cash flow inform_4
Supplemental cash flow information - Additional Information (Details) - Hoegh Grace | Dec. 31, 2017 |
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% |
Revolving Credit Facility [Member] | |
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% |
Issuance of common units and _3
Issuance of common units and Series A Preferred Units (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gross proceeds for units issued | $ 14,340 | $ 43,983 | |
Less: Commissions | (246) | (761) | |
Net proceeds for units issued | 14,094 | 43,222 | |
8.75% Series A Preferred Units [Member] | |||
Gross proceeds for units issued | 13,298 | 39,360 | $ 115,000 |
Less: Commissions | (233) | (701) | |
Net proceeds for units issued | 13,065 | 38,659 | 110,924 |
Less: Underwriters' discount | (3,623) | ||
Less: Offering expenses | $ (453) | ||
Common Units [Member] | |||
Gross proceeds for units issued | 1,042 | 4,623 | |
Less: Commissions | (13) | (60) | |
Net proceeds for units issued | $ 1,029 | $ 4,563 |
Issuance of common units and _4
Issuance of common units and Series A Preferred Units - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 05, 2017 | Dec. 31, 2017 | Oct. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Jan. 26, 2018 | Dec. 01, 2017 | Jan. 01, 2017 | Dec. 31, 2016 |
Proceeds from Issuance of Common Limited Partners Units | $ 1,029 | $ 4,563 | $ 0 | ||||||||
Maximum Offering Amount | $ 120,000 | ||||||||||
Agent [Member] | |||||||||||
Sales Commissions | $ 200 | $ 800 | $ 1,000 | ||||||||
Common Stock [Member] | |||||||||||
Partners' Capital Account, Units, Sale of Units | 53,160 | 253,106 | 306,266 | ||||||||
Proceeds from Issuance of Common Limited Partners Units | $ 1,000 | $ 4,600 | |||||||||
Average Gross Sales Price Per Share | $ 19.6 | $ 18.26 | |||||||||
Hoegh Grace entities [Member] | |||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 49.00% | 49.00% | 51.00% | |||||||
Revolving Credit Facility [Member] | |||||||||||
Repayments of Lines of Credit | $ 34,400 | ||||||||||
Line of Credit [Member] | |||||||||||
Repayments of Lines of Credit | $ 24,300 | ||||||||||
Underwritten Public Offering [Member] | |||||||||||
Limited Partners' Capital Account, Units Issued | 6,588,389 | ||||||||||
8.75% Series A Preferred Units [Member] | |||||||||||
Partners' Capital Account, Units, Sale of Units | 496,520 | 1,529,070 | 2,025,590 | ||||||||
Payments to Acquire Businesses and Interest in Affiliates | $ 45,300 | ||||||||||
Shares Issued, Price Per Share | $ 25 | ||||||||||
Proceeds from Issuance of Preferred Limited Partners Units | $ 110,900 | $ 13,100 | $ 38,700 | $ 51,700 | |||||||
Preferred Stock, Dividend Rate, Percentage | 8.75% | ||||||||||
Gross Proceeds from Issuance Preferred Units | $ 115,000 | ||||||||||
Average Gross Sales Price Per Share | $ 26.79 | $ 25.74 | |||||||||
Limited Partners' Capital Account, Units Issued | 4,600,000 |
Common, subordinated and pref_3
Common, subordinated and preferred units - Movements (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common units public [Member] | |||
Common And Subordinated Units [Line Items] | |||
Beginning Balance | 17,944,701 | 17,648,844 | 17,639,039 |
Awards to non-employee directors as compensation for directors' fees | 8,944 | 8,840 | 9,805 |
ATM program | 53,160 | 253,106 | |
Ending Balance | 18,028,786 | 17,944,701 | 17,648,844 |
Common units public [Member] | Director [Member] | |||
Common And Subordinated Units [Line Items] | |||
Awards to non-employee directors as compensation for directors' fees | 2,236 | 2,210 | |
Common units public [Member] | Phantom Share Units (PSUs) [Member] | |||
Common And Subordinated Units [Line Items] | |||
Phantom units issued | 19,745 | 17,079 | |
Common units public [Member] | Units issued to staff at Hegh LNG [Member] | |||
Common And Subordinated Units [Line Items] | |||
Units issued to staff at Hegh LNG | 14,622 | ||
Common Units Hoegh LNG [Member] | |||
Common And Subordinated Units [Line Items] | |||
Beginning Balance | 2,101,438 | 2,116,060 | 2,116,060 |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 13,156,060 | ||
Ending Balance | 15,257,498 | 2,101,438 | 2,116,060 |
Common Units Hoegh LNG [Member] | Units issued to staff at Hegh LNG [Member] | |||
Common And Subordinated Units [Line Items] | |||
Units issued to staff at Hegh LNG | (14,622) | ||
Subordinated Units Hoegh LNG [Member] | |||
Common And Subordinated Units [Line Items] | |||
Beginning Balance | 13,156,060 | 13,156,060 | 13,156,060 |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | (13,156,060) | ||
Ending Balance | 13,156,060 | 13,156,060 | |
8.75% Series A Preferred Units [Member] | |||
Common And Subordinated Units [Line Items] | |||
Beginning Balance | 6,129,070 | 4,600,000 | |
Offering | 4,600,000 | ||
ATM program | 496,520 | 1,529,070 | |
Ending Balance | 6,625,590 | 6,129,070 | 4,600,000 |
Common, subordinated and pref_4
Common, subordinated and preferred units - Additional information (Details) - $ / shares | Oct. 05, 2022 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Series A Preferred Stock [Member] | Scenario, Forecast [Member] | |||||
Common And Subordinated Units [Line Items] | |||||
Preferred Stock, Liquidation Preference Per Share | $ 25 | ||||
Preferred Stock, Redemption Price Per Share | $ 25 | ||||
Preferred stock distribution rate, Percentage | 8.75% | ||||
Partners Capital Distribution Amount Per Unit | $ 2.1875 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 25 | ||||
Common Units Hoegh LNG [Member] | |||||
Common And Subordinated Units [Line Items] | |||||
Partners Capital Account, Units | 15,257,498 | 2,101,438 | 2,116,060 | 2,116,060 | |
Subordinated Units Hoegh LNG [Member] | |||||
Common And Subordinated Units [Line Items] | |||||
Partners Capital Account, Units | 13,156,060 | 13,156,060 |
Earning per unit and cash dis_3
Earning per unit and cash distributions - Calculation of basic and diluted earnings per unit (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] | |||
Net income | $ 52,741 | $ 77,622 | $ 59,190 |
Adjustment for: | |||
Non-controlling interest | 0 | 0 | 10,408 |
Preferred unitholders' interest in net income | 13,850 | 12,303 | 2,480 |
Limited partners' interest in net income | 38,891 | 65,319 | 46,302 |
Less: Dividends paid or to be paid | (60,149) | (59,952) | (57,764) |
Under (over) distributed earnings attributable to: | |||
Distributed Earnings | (21,258) | 5,367 | (11,462) |
Common units public [Member] | |||
Under (over) distributed earnings attributable to: | |||
Distributed Earnings | $ (11,514) | $ 2,900 | $ (6,145) |
Basic weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Basic | 17,986 | 17,856 | 17,645 |
Diluted weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Diluted | 17,995 | 17,864 | 17,657 |
Basic and diluted earnings per unit : | |||
Earnings Per Share, Basic and Diluted | $ 1.12 | $ 1.93 | $ 1.37 |
Common Units Hoegh LNG [Member] | |||
Under (over) distributed earnings attributable to: | |||
Distributed Earnings | $ (3,211) | $ 340 | $ (736) |
Basic weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Basic | 7,039 | 2,101 | 2,116 |
Diluted weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Diluted | 7,039 | 2,101 | 2,116 |
Basic and diluted earnings per unit : | |||
Earnings Per Share, Basic and Diluted | $ 1.84 | $ 2.03 | $ 1.44 |
Subordinated Units Hoegh LNG [Member] | |||
Under (over) distributed earnings attributable to: | |||
Distributed Earnings | $ (6,533) | $ 2,127 | $ (4,581) |
Basic weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Basic | 8,218 | 13,156 | 13,156 |
Diluted weighted average units outstanding | |||
Weighted Average Number of Shares Outstanding, Diluted | 8,218 | 13,156 | 13,156 |
Basic and diluted earnings per unit : | |||
Earnings Per Share, Basic and Diluted | $ 0.70 | $ 2.03 | $ 1.45 |
Earning per unit and cash dis_4
Earning per unit and cash distributions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 21, 2019 | Sep. 14, 2018 | Jun. 03, 2016 | Mar. 21, 2019 | Mar. 23, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Incentive Distribution Right Target Distribution | $ 1,597 | $ 1,591 | $ 1,141 | |||||
Subordinated Units Hoegh LNG [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Incentive Distribution Right Target Distribution | $ 688 | 1,372 | 983 | |||||
Phantom Units [Member] | Chief Executive Officer Chief Financial Officer [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 10,917 | 28,018 | 21,500 | 10,917 | 14,584 | |||
Second Target Distribution [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Incentive Distribution Right Target Distribution Per Unit | $ 0.421875 | |||||||
Distribution Percentage To All Unit Holders | 85.00% | |||||||
Distribution Percentage To Holders Of Incentive Distribution Rights | 15.00% | |||||||
Third Target Distribution [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Incentive Distribution Right Target Distribution Per Unit | $ 0.506250 | |||||||
Distribution Percentage To All Unit Holders | 75.00% | |||||||
Distribution Percentage To Holders Of Incentive Distribution Rights | 25.00% | |||||||
After Target Distribution [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Distribution Percentage To All Unit Holders | 50.00% | |||||||
Distribution Percentage To Holders Of Incentive Distribution Rights | 50.00% | |||||||
Common units public [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Incentive Distribution Right Target Distribution Per Unit | $ 0.388125 | |||||||
Distribution Percentage To Holders Of Incentive Distribution Rights | 100.00% | |||||||
Common units Hoegh LNG [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Incentive Distribution Right Target Distribution | $ 908 | $ 219 | $ 158 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 26, 2020 | Feb. 17, 2020 | Feb. 15, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 73,804 | $ 72,497 | $ 57,037 | ||||
Common and Subordinated Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ 1.76 | ||||||
Subsequent Event [Member] | Phantom Share Units (PSUs) [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 8,100 | ||||||
Subsequent Event [Member] | Series A Preferred Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ 0.546875 | ||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 3,700 | ||||||
Subsequent Event [Member] | Common and Subordinated Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ 0.44 | ||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 15,000 |
Schedule I -CONDENSED STATEMENT
Schedule I -CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total revenues | $ 145,436 | $ 146,561 | $ 143,531 |
EXPENSES | |||
Administrative expenses | (9,861) | (8,916) | (9,910) |
Equity in earnings (losses) of joint ventures | 6,078 | 17,938 | 5,139 |
Interest expense | (27,692) | (26,814) | (30,085) |
Net income (loss) | 52,741 | 77,622 | 59,190 |
Parent Company | Reportable Legal Entities | |||
Total revenues | 0 | 0 | 0 |
EXPENSES | |||
Administrative expenses | (6,473) | (5,822) | (8,608) |
Equity in earnings of subsidiaries | 60,315 | 68,359 | 66,521 |
Equity in earnings (losses) of joint ventures | 6,078 | 17,938 | 5,139 |
Interest income | 11,205 | 93 | 83 |
Interest expense | (18,242) | (2,938) | (3,934) |
Other items, net | (142) | (8) | (11) |
Net income (loss) | 52,741 | 77,622 | 59,190 |
Share of subsidiaries unrealized losses on cash flow hedges | (12,217) | (2,290) | 3,335 |
Share of subsidiaries income tax benefit | (389) | (299) | (347) |
Comprehensive income | $ 40,135 | $ 75,033 | $ 62,178 |
Schedule I - CONSOLIDATED BALAN
Schedule I - CONSOLIDATED BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||||
Cash and cash equivalents | $ 39,126 | $ 26,326 | $ 22,679 | $ 18,915 |
Prepaid expenses and other receivables | 2,534 | 2,967 | ||
Total current assets | 59,771 | 46,865 | ||
Long-term assets | ||||
Accumulated earnings of joint ventures | 3,270 | 0 | ||
Total long-term assets | 953,029 | 976,175 | ||
Total assets | 1,012,800 | 1,023,040 | ||
Current liabilities | ||||
Current portion of long-term debt | 44,660 | 45,458 | ||
Trade payables | 533 | 529 | ||
Amounts due to owners and affiliates | 2,513 | 2,301 | ||
Derivative instruments | 2,907 | 259 | ||
Accrued liabilities and other payables | 11,164 | 7,458 | ||
Total current liabilities | 63,253 | 57,180 | ||
Long-term liabilities | ||||
Accumulated losses of joint ventures | 0 | 2,808 | ||
Long-term debt | 412,301 | 390,087 | ||
Loans and promissory notes due to owners and affiliates | 8,792 | 39,292 | ||
Derivative instruments | 12,028 | 2,438 | ||
Total long-term liabilities | 448,037 | 445,423 | ||
Total liabilities | 511,290 | 502,603 | ||
Total equity | 501,510 | 520,437 | $ 474,659 | $ 364,790 |
Total liabilities and equity | 1,012,800 | 1,023,040 | ||
Parent Company | Reportable Legal Entities | ||||
Current assets | ||||
Cash and cash equivalents | 6,934 | 7,006 | ||
Current portion of net investment in direct financing lease | 25,597 | 0 | ||
Promissory note from subsidiaries | 123,248 | 123,248 | ||
Prepaid expenses and other receivables | 224 | 14 | ||
Total current assets | 156,003 | 130,268 | ||
Long-term assets | ||||
Accumulated earnings of joint ventures | 3,270 | 0 | ||
Loans to subsidiaries | 260,636 | 0 | ||
Investments in subsidiaries | 449,570 | 433,088 | ||
Total long-term assets | 713,476 | 433,088 | ||
Total assets | 869,479 | 563,356 | ||
Current liabilities | ||||
Current portion of long-term debt | 25,597 | 0 | ||
Trade payables | 52 | 56 | ||
Amounts due to owners and affiliates | 398 | 417 | ||
Derivative instruments | 1,821 | 0 | ||
Accrued liabilities and other payables | 3,155 | 346 | ||
Total current liabilities | 31,023 | 819 | ||
Long-term liabilities | ||||
Accumulated losses of joint ventures | 0 | 2,808 | ||
Long-term debt | 318,650 | 0 | ||
Loans and promissory notes due to owners and affiliates | 8,792 | 39,292 | ||
Derivative instruments | 9,504 | 0 | ||
Total long-term liabilities | 336,946 | 42,100 | ||
Total liabilities | 367,969 | 42,919 | ||
Total equity | 501,510 | 520,437 | ||
Total liabilities and equity | $ 869,479 | $ 563,356 |
Schedule I - CONDENSED STATEMEN
Schedule I - CONDENSED STATEMENT OF CASH FLOW (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | $ 85,252 | $ 91,681 | $ 79,947 |
INVESTING ACTIVITIES | |||
Net cash provided by (used in) investing activities | (269) | 3,067 | (38,450) |
FINANCING ACTIVITIES | |||
Net proceeds from issuance of Series A preferred units | 13,065 | 38,659 | 110,924 |
Net proceeds from issuance of common units | 1,029 | 4,563 | 0 |
Proceeds from long term debt | 368,300 | 0 | 0 |
Repayment of long-term debt | (342,416) | (45,458) | (45,458) |
Repayment of debt issuance cost | (5,797) | 0 | 0 |
Repayment of amounts due to owners and affiliates | (34,000) | (17,500) | (58,705) |
Proceeds from indemnifications received from Hoegh LNG | 0 | 1,701 | 2,075 |
Repayment of indemnifications received from Hoegh LNG | (64) | (2,353) | (1,534) |
Cash distributions to limited partners | (73,804) | (72,497) | (57,037) |
Net cash provided by (used in) financing activities | (70,625) | (92,478) | (39,340) |
Increase (decrease) in cash, cash equivalents and restricted cash | 14,358 | 2,270 | 2,157 |
Cash, cash equivalents and restricted cash, beginning of period | 45,454 | 43,281 | 41,124 |
Cash, cash equivalents and restricted cash, end of period | 59,819 | 45,454 | 43,281 |
Reportable Legal Entities | Parent Company | |||
OPERATING ACTIVITIES | |||
Net cash provided by (used in) operating activities | 33,130 | 42,401 | 6,862 |
INVESTING ACTIVITIES | |||
Long-term loan due from subsidiaries | (286,233) | 0 | 0 |
Expenditure for purchase of Hoegh Grace entities | 0 | 0 | (137,475) |
(Increase) decrease in restricted cash designated for purchase of the Hegh Grace entities | 0 | 0 | 91,768 |
Proceeds from investment in subsidiaries | 0 | 0 | 12,202 |
Net cash provided by (used in) investing activities | (286,233) | 0 | (33,505) |
FINANCING ACTIVITIES | |||
Net proceeds from issuance of Series A preferred units | 13,065 | 38,659 | 110,924 |
Net proceeds from issuance of common units | 1,029 | 4,563 | 0 |
Proceeds from long term debt | 368,300 | 0 | 0 |
Proceeds from loans and promissory notes due to owners and affiliates | 3,500 | 5,400 | 25,730 |
Repayment of long-term debt | (19,198) | 0 | 0 |
Repayment of debt issuance cost | (5,797) | 0 | 0 |
Repayment of amounts due to owners and affiliates | (34,000) | (17,500) | (58,705) |
Proceeds from indemnifications received from Hoegh LNG | 0 | 1,701 | 2,075 |
Repayment of indemnifications received from Hoegh LNG | (64) | (2,353) | (1,534) |
Cash distributions to limited partners | (73,804) | (72,497) | (57,037) |
Net cash provided by (used in) financing activities | 253,031 | (42,027) | 21,453 |
Increase (decrease) in cash, cash equivalents and restricted cash | (72) | 374 | (5,190) |
Cash, cash equivalents and restricted cash, beginning of period | 7,006 | 6,632 | 11,822 |
Cash, cash equivalents and restricted cash, end of period | $ 6,934 | $ 7,006 | $ 6,632 |
Schedule I - Dividends (Details
Schedule I - Dividends (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reportable Legal Entities | Parent Company | |||
Proceeds from Dividends Received | $ 42.4 | $ 51.7 | $ 17.7 |