Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Document Period End Date | Sep. 30, 2021 |
Entity File Number | 001-36588 |
Entity Registrant Name | Hoegh LNG Partners LP |
Entity Address, Address Line One | Canon’s Court |
Entity Address, Address Line Two | 22 Victoria Street |
Entity Address, City or Town | Hamilton |
Entity Address, Country | BM |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0001603016 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
UNAUDITED CONDENSED INTERIM CON
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
REVENUES | ||||
Time charter revenues | $ 35,596 | $ 35,913 | $ 105,068 | $ 107,036 |
Total revenues | 35,596 | 35,913 | 105,068 | 107,036 |
OPERATING EXPENSES | ||||
Vessel operating expenses | (5,927) | (5,963) | (18,213) | (17,246) |
Administrative expenses | (3,491) | (2,455) | (9,005) | (7,037) |
Depreciation and amortization | (5,096) | (5,210) | (15,318) | (15,727) |
Total operating expenses | (14,514) | (13,628) | (42,536) | (40,010) |
Equity in earnings (losses) of joint ventures | 6,056 | 5,774 | 20,397 | 2,202 |
Operating income (loss) | 27,138 | 28,059 | 82,929 | 69,228 |
FINANCIAL INCOME (EXPENSE), NET | ||||
Interest income | 166 | 135 | 397 | 470 |
Interest expense | (6,146) | (6,014) | (21,440) | (18,847) |
Other items, net | (982) | (846) | (2,293) | (1,980) |
Total financial income (expense), net | (6,962) | (6,725) | (23,336) | (20,357) |
Income (loss) before tax | 20,176 | 21,334 | 59,593 | 48,871 |
Income tax benefit (expense) | (2,817) | (1,859) | (15,757) | (4,240) |
Net income (loss) | 17,359 | 19,475 | 43,836 | 44,631 |
Preferred unitholders' interest in net income | 3,877 | 3,681 | 11,631 | 11,017 |
Limited partners' interest in net income (loss) | $ 13,482 | $ 15,794 | $ 32,205 | $ 33,614 |
Common units public [Member] | ||||
Earnings per unit | ||||
Earnings per share, basic and diluted | $ 0.40 | $ 0.46 | $ 0.95 | $ 0.97 |
Common units Hegh LNG [Member] | ||||
Earnings per unit | ||||
Earnings per share, basic and diluted | $ 0.40 | $ 0.49 | $ 0.98 | $ 1.05 |
UNAUDITED CONDENSED INTERIM C_2
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income (loss) | $ 17,359 | $ 19,475 | $ 43,836 | $ 44,631 |
Unrealized gains (losses) on cash flow hedge | 2,049 | 1,967 | 9,416 | (13,847) |
Income tax benefit (expense) | (43) | (61) | (160) | (190) |
Other comprehensive income (loss) | 2,006 | 1,906 | 9,256 | (14,037) |
Comprehensive income (loss) | 19,365 | 21,381 | 53,092 | 30,594 |
Preferred unitholders' interest in net income | 3,877 | 3,681 | 11,631 | 11,017 |
Limited partners' interest in comprehensive income (loss) | $ 15,488 | $ 17,700 | $ 41,461 | $ 19,577 |
UNAUDITED CONDENSED INTERIM C_3
UNAUDITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 45,373 | $ 31,770 |
Restricted cash | 6,215 | 7,198 |
Trade receivables | 4,430 | 415 |
Amounts due from affiliates | 3,880 | 3,639 |
Advances to joint ventures | 4,410 | 3,284 |
Inventory | 20 | |
Current portion of net investment in financing lease | 5,308 | 4,969 |
Prepaid expenses and other receivables | 3,220 | 3,883 |
Total current assets | 72,856 | 55,158 |
Long-term assets | ||
Restricted cash | 9,143 | 12,095 |
Accumulated earnings of joint ventures | 30,086 | 9,690 |
Advances to joint ventures | 869 | |
Vessels, net of accumulated depreciation | 605,911 | 619,620 |
Other equipment | 122 | 109 |
Intangibles and goodwill | 11,995 | 14,056 |
Net investment in financing lease | 265,264 | 269,288 |
Long-term deferred tax asset | 207 | 102 |
Other long-term assets | 822 | 823 |
Total long-term assets | 923,550 | 926,652 |
Total assets | 996,406 | 981,810 |
Current liabilities | ||
Current portion of long-term debt | 55,987 | 59,119 |
Trade payables | 1,222 | 467 |
Amounts due to owners and affiliates | 3,291 | 2,600 |
Value added and withholding tax liability | 573 | 1,445 |
Derivative instruments | 6,092 | 6,945 |
Accrued liabilities and other payables | 12,724 | 7,232 |
Total current liabilities | 79,889 | 77,808 |
Long-term liabilities | ||
Long-term debt | 341,394 | 355,470 |
Revolving credit facility due to owners and affiliates | 24,681 | 18,465 |
Derivative instruments | 11,136 | 19,530 |
Long-term tax liability | 8,459 | 2,668 |
Long-term deferred tax liability | 16,755 | 14,430 |
Other long-term liabilities | 131 | 124 |
Total long-term liabilities | 402,556 | 410,687 |
Total liabilities | 482,445 | 488,495 |
EQUITY | ||
Accumulated other comprehensive income (loss) | (20,316) | (29,572) |
Total partners' capital | 513,961 | 493,315 |
Total equity | 513,961 | 493,315 |
Total liabilities and equity | 996,406 | 981,810 |
8.75% Series A Preferred Units [Member] | ||
EQUITY | ||
Preferred units | 176,078 | 167,760 |
Common units public [Member] | ||
EQUITY | ||
Common units | 311,029 | 308,850 |
Common units Hegh LNG [Member] | ||
EQUITY | ||
Common units | $ 47,170 | $ 46,277 |
UNAUDITED CONDENSED INTERIM C_4
UNAUDITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Sep. 30, 2021 | Dec. 31, 2020 |
8.75% Series A Preferred Units [Member] | ||
General Partners' Capital Account, Units Issued | 7,089,325 | 6,752,333 |
General Partners' Capital Account, Units Outstanding | 7,089,325 | 6,752,333 |
Common units public [Member] | ||
General Partners' Capital Account, Units Issued | 18,115,504 | 18,050,941 |
General Partners' Capital Account, Units Outstanding | 18,115,504 | 18,050,941 |
Common units Hegh LNG [Member] | ||
General Partners' Capital Account, Units Issued | 15,257,498 | 15,257,498 |
General Partners' Capital Account, Units Outstanding | 15,257,498 | 15,257,498 |
UNAUDITED CONDENSED INTERIM C_5
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands | 8.75% Series A Preferred Units [Member]Preferred Units [Member] | Common units public [Member]Common Units [Member] | Common units Hegh LNG [Member]Common Units [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Dec. 31, 2019 | $ 164,482 | $ 315,176 | $ 39,795 | $ (17,943) | $ 501,510 |
Net income | 14,802 | 25,333 | 23,010 | 63,145 | |
Cash distributions to unitholders | (14,698) | (31,737) | (28,451) | (74,886) | |
Cumulative change in accounting principle | (84) | (72) | (156) | ||
Other comprehensive income | (11,629) | (11,629) | |||
Net proceeds from issuance of Series A preferred Units | 3,174 | 3,174 | |||
Issuance of units for Board of Directors' fees | 181 | 181 | |||
Contribution from Hoegh LNG | 11,850 | 11,850 | |||
Other and contributions from owners | (19) | 145 | 126 | ||
Balance at Dec. 31, 2020 | 167,760 | 308,850 | 46,277 | (29,572) | 493,315 |
Net income | 11,631 | 17,262 | 14,943 | 43,836 | |
Cash distributions to unitholders | (11,631) | (16,112) | (14,380) | (42,123) | |
Other comprehensive income | 9,256 | 9,256 | |||
Net proceeds from issuance of common units | 818 | 818 | |||
Net proceeds from issuance of Series A preferred Units | 8,318 | 8,318 | |||
Issuance of units for Board of Directors' fees | 211 | 211 | |||
Contribution from Hoegh LNG | 315 | 315 | |||
Other and contributions from owners | 15 | 15 | |||
Balance at Sep. 30, 2021 | $ 176,078 | $ 311,029 | $ 47,170 | $ (20,316) | $ 513,961 |
UNAUDITED CONDENSED INTERIM C_6
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING ACTIVITIES | ||||
Net income (loss) | $ 17,359 | $ 19,475 | $ 43,836 | $ 44,631 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 5,096 | 5,210 | 15,318 | 15,727 |
Equity in (earnings) losses of joint ventures | (6,056) | (5,774) | (20,397) | (2,202) |
Changes in accrued interest income on advances to joint ventures | (124) | (82) | (257) | (239) |
Amortization of deferred debt issuance cost | 572 | 567 | 5,214 | 1,737 |
Amortization in revenue for above market contract | 694 | 694 | 2,060 | 2,358 |
Expenditure for drydocking | (1,590) | |||
Changes in accrued interest expense | (120) | (147) | 284 | (289) |
Receipts from repayment of principal on financing lease | 1,256 | 1,150 | 3,686 | 3,376 |
Unrealized foreign exchange losses (gains) | 25 | 90 | 18 | 22 |
Unrealized loss (gain) on derivative instruments | 67 | 24 | 169 | 136 |
Non-cash revenue: tax paid directly by charterer | (225) | (215) | (657) | (638) |
Non-cash income tax expense: tax paid directly by charterer | 225 | 215 | 657 | 638 |
Deferred tax expense and provision for tax uncertainty | (849) | 809 | 10,491 | 1,643 |
Issuance of units for Board of Directors' fees | 84 | 128 | 211 | 128 |
Other adjustments | (4) | (85) | 15 | 135 |
Changes in working capital: | ||||
Trade receivables | 2 | (261) | (4,015) | (3,944) |
Inventory | 5 | (20) | 463 | |
Prepaid expenses and other receivables | 3,131 | 174 | 869 | (565) |
Trade payables | (190) | (136) | 759 | (277) |
Amounts due to owners and affiliates | (579) | 843 | 443 | 552 |
Value added and withholding tax liability | (96) | (250) | (1,127) | (1,109) |
Accrued liabilities and other payables | 1,585 | 379 | 3,109 | (2,139) |
Net cash provided by (used in) operating activities | 21,858 | 22,808 | 59,076 | 60,144 |
INVESTING ACTIVITIES | ||||
Expenditure for vessel and other equipment | (8) | |||
Net cash provided by (used in) investing activities | (8) | |||
FINANCING ACTIVITIES | ||||
Proceeds from long-term debt | 14,750 | 14,750 | ||
Proceeds from revolving credit facility due to owners and affiliates | 6,600 | 6,000 | 11,100 | |
Repayment of long-term debt | (11,165) | (11,165) | (33,495) | (33,495) |
Payment of debt issuance costs | (3,677) | (3,677) | ||
Net proceeds from issuance of common units | 818 | |||
Net proceeds from issuance of Series A preferred units | 268 | 8,318 | 2,393 | |
Cash distributions to limited partners and preferred unitholders | (4,211) | (18,713) | (42,123) | (56,141) |
Net cash provided by (used in) financing activities | (4,303) | (23,010) | (49,409) | (76,143) |
Increase (decrease) in cash, cash equivalents and restricted cash | 17,555 | (202) | 9,667 | (16,007) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2 | (29) | 1 | (30) |
Cash, cash equivalents and restricted cash, beginning of period | 43,174 | 44,013 | 51,063 | 59,819 |
Cash, cash equivalents and restricted cash, end of period | $ 60,731 | $ 43,782 | $ 60,731 | $ 43,782 |
UNAUDITED CONDENSED INTERIM C_7
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
Cash and cash equivalents | $ 45,373 | $ 31,770 | $ 25,048 | $ 39,126 | ||
Restricted cash - current asset | 6,215 | 7,198 | 6,524 | 8,066 | ||
Restricted cash - non-current asset | 9,143 | 12,095 | 12,210 | 12,627 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 60,731 | $ 43,174 | $ 51,063 | $ 43,782 | $ 44,013 | $ 59,819 |
Description of business
Description of business | 9 Months Ended |
Sep. 30, 2021 | |
Description of business | |
Description of business | l 1. Description of business Höegh LNG Partners LP (the “Partnership”) is a publicly traded Marshall Islands limited partnership initially formed for the purpose of acquiring from Höegh LNG Holdings Ltd. (“Höegh LNG”) its interests in Hoegh LNG Lampung Pte. Ltd., PT Hoegh LNG Lampung (the owner of the PGN FSRU Lampung Neptune Cape Ann 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 Höegh Gallant Höegh Grace Neptune Cape Ann PGN FSRU Lampung Höegh Gallant Höegh Grace The Neptune Cape Ann PGN FSRU Lampung Höegh Gallant Höegh Gallant Höegh Gallant Höegh Gallant Höegh Gallant Höegh Grace The following table lists the entities included in these consolidated financial statements and their purpose as of September 30, 2021: Jurisdiction of Incorporation Name or Registration Purpose Höegh LNG Partners LP Marshall Islands Holding Company Höegh LNG Partners Operating LLC (100% owned) 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 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) 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) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (100% indirectly owned) Colombia Operating Company (1) PT Hoegh LNG Lampung is a variable interest entity, which is 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. |
Significant accounting policies
Significant accounting policies | 9 Months Ended |
Sep. 30, 2021 | |
Significant accounting policies | |
Significant accounting policies | 2. Significant accounting policies Basis of presentation The accompanying unaudited condensed interim consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information. In the opinion of Management, all adjustments considered necessary for a fair presentation, which are of a normal recurring nature, have been included. All intercompany balances and transactions are eliminated. The footnotes are condensed and do not include all the disclosures required for a complete set of financial statements. Therefore, the unaudited condensed interim consolidated financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2020, included in the Partnership’s Annual Report on Form 20-F (the “Annual Report”). PT Hoegh LNG Lampung, Hoegh LNG Cyprus Limited, Höegh LNG Colombia Holding Ltd., SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. are treated as 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, 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. 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. As of September 30, 2021, PT Hoegh LNG Lampung is in the process of establishing the required statutory reserves and therefore is currently unable to make dividend payments under Indonesia law. Under the Lampung facility, there are limitations on cash dividends and loan distributions that can be made to the Partnership. Refer to note 9. The Partnership has also 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 support. 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. The Partnership has determined that Höegh LNG Colombia Holding Ltd. is a VIE since the entity would not be able to finance its activities without financial support and financial guarantees under its subsidiary’s facility to finance the Höegh Grace Dividends and other distributions from Höegh LNG Cyprus Limited, Hoegh LNG Colombia 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 9. 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 $3.5 million and $3.3 million, respectively, as of September 30, 2021 and December 31, 2020. The Partnership’s accumulated earnings, or its share of net assets, were $15.7 million and $5.5 million, respectively, as of September 30, 2021 and December 31, 2020. The Partnership's carrying value for SRV Joint Gas Two Ltd. consists of a receivable for the advances of $0.9 million and $0.9 million, respectively, as of September 30, 2021 and December 31, 2020. The Partnership’s accumulated earnings, or its share of net assets, were $14.4 million and $4.2 million, respectively, as of September 30, 2021 and December 31, 2020. The major reason that the Partnership had accumulated earnings in the joint ventures as of September 30, 2021 and the major reason that the Partnership historically has had accumulated losses in the joint ventures, or net liabilities, is 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. Refer to notes 8 and 14 for additional discussion on dividend distributions. Going concern The unaudited condensed interim consolidated financial statements have been prepared assuming that the Partnership will continue as a going concern. In considering going concern, management has reviewed the Partnership’s future cash requirements, covenant compliance and earnings projections. To ensure we have the necessary liquidity to satisfy our anticipated capital expenditures, scheduled repayments of long and short-term debts, financing costs and working capital requirements over the next 12 months, we are in ongoing discussions with various financial institutions. The main items that management considered from a liquidity standpoint were: ● the commercial tranche of the Lampung facility, which had an initial loan balance of $46.4 million, which was initially due to mature on September 29, 2021 but is now deferred to January 14, 2022 and will be further deferred to March 29, 2022 if commitment letters and a term sheet for an Approved Refinancing (as defined in the Lampung facility agreement) are in place by December 29, 2021; ● the export credit tranche of the Lampung facility, which had an initial loan balance of $178.6 million, which may be called if the commercial tranche of the Lampung facility is not refinanced when it matures; ● the Neptune facility, which had an initial loan balance of $297.4 million, due to mature on November 30, 2021; ● the Cape Ann facility, which had an initial loan balance of $300 million, due to mature on June 1, 2022; ● the $85 million revolving credit facility due to mature on January 1, 2023.; ● our ability to monetize assets, including but not limited to, the risk of fluctuations in our unit price. While we believe it is probable that we will be able to obtain the necessary funds and have a track record of successfully refinancing our debt requirements, and sourcing new funding, primarily as a result of the strong fundamentals in relation to our assets (including contracted cash flows), we cannot be certain that refinancing arrangements will be executed in time or at all. Global financial markets and economic conditions have been and continue to be volatile, particularly with the COVID-19 pandemic. In this context, we continue to have productive discussions with existing and potential new lenders, and believe that these external developments are not likely to have a material adverse effect on our ability to refinance existing debt requirements, monetize existing assets and source new funding. Further, if market and economic conditions were to be favorable, we may also consider, in conjunction with the refinancing of existing loans, further issuances of corporate debt or equity to increase liquidity to meet maturing obligations. To this aim, sources of funding for our long-term obligations are continually reviewed by management and include a combination of new loans, refinancing of existing arrangements, public and private debt or equity offerings, and potential asset sales. Accordingly, we believe that based on our plans, as outlined above, we will have sufficient resources to satisfy our obligations in the ordinary course of business for the 12-month period from the date these consolidated financial statements were issued. Please refer to note 19 for the Partnership’s plan to refinance the Lampung facility. Significant accounting policies The accounting policies used in the preparation of the unaudited condensed interim consolidated financial statements are consistent with those applied in the audited financial statements for the year ended December 31, 2020 included in the Partnership’s Annual Report, except as described below. Recently adopted accounting pronouncements On January 1, 2021, the Partnership adopted the Financial Accounting Standards Board’s (“FASB”) revised guidance on Income Taxes - Simplifying the Accounting for Income Taxes Recently issued accounting pronouncements In March 2020, FASB issued final guidance for Reference Rate Reform Other recently issued accounting pronouncements are not expected to materially impact the Partnership. |
Segment information
Segment information | 9 Months Ended |
Sep. 30, 2021 | |
Segment information | |
Segment information | 3. 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 balances on the $85 million revolving credit facility and the $385 million facility are included in “Other.” For the three and nine months ended September 30, 2021 and 2020, Majority held FSRUs includes the financing lease related to the PGN FSRU Lampung Höegh Gallant Höegh Grace For the three and nine months ended September 30, 2021 and 2020, Joint venture FSRUs include two 50% owned FSRUs, the Neptune Cape Ann 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 and 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. 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. 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 three and nine months ended September 30, 2021 and 2020. Three months ended September 30, 2021 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 35,596 10,835 — 46,431 (10,835) (1) $ 35,596 Total revenues 35,596 10,835 — 46,431 35,596 Operating expenses (7,332) (1,932) (2,086) (11,350) 1,932 (1) (9,418) Equity in earnings (losses) of joint ventures — — — — 6,056 (1) 6,056 Segment EBITDA 28,264 8,903 (2,086) 35,081 Depreciation and amortization (5,096) (2,489) — (7,585) 2,489 (1) (5,096) Operating income (loss) 23,168 6,414 (2,086) 27,496 27,138 Gain (loss) on derivative instruments — 2,287 — 2,287 (2,287) (1) — Other financial income (expense), net (2,935) (2,645) (4,027) (9,607) 2,645 (1) (6,962) Income (loss) before tax 20,233 6,056 (6,113) 20,176 20,176 Income tax expense (2,817) — — (2,817) — (2,817) Net income (loss) $ 17,416 6,056 (6,113) 17,359 — $ 17,359 Preferred unitholders’ interest in net income — — — — 3,877 (2) 3,877 Limited partners’ interest in net income (loss) $ 17,416 6,056 (6,113) 17,359 (3,877) (2) $ 13,482 (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) Allocates the preferred unitholders' interest in net income to the preferred unitholders. Three months ended September 30, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 35,913 10,896 — 46,809 (10,896) (1) $ 35,913 Total revenues 35,913 10,896 — 46,809 35,913 Operating expenses (6,831) (1,957) (1,587) (10,375) 1,957 (1) (8,418) Equity in earnings (losses) of joint ventures — — — — 5,774 (1) 5,774 Segment EBITDA 29,082 8,939 (1,587) 36,434 Depreciation and amortization (5,210) (2,490) — (7,700) 2,490 (1) (5,210) Operating income (loss) 23,872 6,449 (1,587) 28,734 28,059 Gain (loss) on derivative instruments — 2,226 — 2,226 (2,226) (1) — Other financial income (expense), net (2,415) (2,901) (4,310) (9,626) 2,901 (1) (6,725) Income (loss) before tax 21,457 5,774 (5,897) 21,334 21,334 Income tax expense (1,859) — — (1,859) — (1,859) Net income (loss) $ 19,598 5,774 (5,897) 19,475 — $ 19,475 Preferred unitholders’ interest in net income — — — — 3,681 (2) 3,681 Limited partners’ interest in net income (loss) $ 19,598 5,774 (5,897) 19,475 (3,681) (2) $ 15,794 (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) Allocates the preferred unitholders' interest in net income to the preferred unitholders. Nine months ended September 30, 2021 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 105,068 31,579 — 136,647 (31,579) (1) $ 105,068 Total revenues 105,068 31,579 — 136,647 105,068 Operating expenses (21,590) (5,608) (5,628) (32,826) 5,608 (1) (27,218) Equity in earnings (losses) of joint ventures — — — — 20,397 (1) 20,397 Segment EBITDA 83,478 25,971 (5,628) 103,821 Depreciation and amortization (15,318) (7,469) — (22,787) 7,469 (1) (15,318) Operating income (loss) 68,160 18,502 (5,628) 81,034 82,929 Gain (loss) on derivative instruments — 9,994 — 9,994 (9,994) (1) — Other financial income (expense), net (11,140) (8,099) (12,196) (31,435) 8,099 (1) (23,336) Income (loss) before tax 57,020 20,397 (17,824) 59,593 59,593 Income tax expense (15,757) — — (15,757) — (15,757) Net income (loss) $ 41,263 20,397 (17,824) 43,836 — $ 43,836 Preferred unitholders’ interest in net income — — — — 11,631 (2) 11,631 Limited partners’ interest in net income (loss) $ 41,263 20,397 (17,824) 43,836 (11,631) (2) $ 32,205 (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) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. Nine months ended September 30, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 107,036 33,561 — 140,597 (33,561) (1) $ 107,036 Total revenues 107,036 33,561 — 140,597 107,036 Operating expenses (19,676) (7,768) (4,607) (32,051) 7,768 (1) (24,283) Equity in earnings (losses) of joint ventures — — — — 2,202 (1) 2,202 Segment EBITDA 87,360 25,793 (4,607) 108,546 Depreciation and amortization (15,727) (7,475) — (23,202) 7,475 (1) (15,727) Operating income (loss) 71,633 18,318 (4,607) 85,344 69,228 Gain (loss) on derivative instruments — (7,264) — (7,264) 7,264 (1) — Other financial income (expense), net (7,195) (8,852) (13,162) (29,209) 8,852 (1) (20,357) Income (loss) before tax 64,438 2,202 (17,769) 48,871 48,871 Income tax expense (4,240) — — (4,240) — (4,240) Net income (loss) $ 60,198 2,202 (17,769) 44,631 — $ 44,631 Preferred unitholders’ interest in net income — — — — 11,017 (2) 11,017 Limited partners’ interest in net income (loss) $ 60,198 2,202 (17,769) 44,631 (11,017) (2) $ 33,614 (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) Allocates the preferred unitholders' interest in net income to the preferred unitholders. As of September 30, 2021 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Vessels, net of accumulated depreciation $ 605,911 234,795 — 840,706 (234,795) (1) $ 605,911 Net investment in financing lease 270,572 — — 270,572 — 270,572 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 4,410 4,410 — 4,410 Total assets 961,783 265,442 34,623 1,261,848 (265,442) (1) 996,406 Accumulated earnings of joint ventures — — 50 50 30,036 (1) 30,086 Expenditures for drydocking 1,590 6 — 1,596 (6) (2) 1,590 Principal repayment financing lease 3,686 — — 3,686 — 3,686 Amortization of above market contract $ 2,060 — — 2,060 — $ 2,060 (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 (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, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Vessels, net of accumulated depreciation $ 619,620 242,226 — 861,846 (242,226) (1) $ 619,620 Net investment in financing lease 274,257 — — 274,257 — 274,257 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 4,153 4,153 — 4,153 Total assets 969,278 267,003 12,532 1,248,813 (267,003) (1) 981,810 Accumulated earnings of joint ventures — — 50 50 9,640 (1) 9,690 Expenditures for vessels & equipment 8 75 — 83 (75) (2) 8 Expenditures for drydocking — 2 — 2 (2) (2) — Principal repayment financing lease 4,551 — — 4,551 — 4,551 Amortization of above market contract $ 3,052 — — 3,052 — $ 3,052 (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. |
Time charter revenues and relat
Time charter revenues and related contract balances | 9 Months Ended |
Sep. 30, 2021 | |
Time charter revenues and related contract balances | |
Time charter revenues and related contract balances | 4. 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 includes 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 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, the Partnership did not apply the practical expedient in the lease guidance to combine lease and services components for operating leases because this would result in inconsistent disclosure for the time charter contracts. The following tables summarize the disaggregated revenue of the Partnership by segment for the three and nine months ended September 30, 2021 and 2020: Three months ended September 30, 2021 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 21,733 6,475 — 28,208 (6,475) $ 21,733 Time charter service revenues, excluding amortization 14,557 3,677 — 18,234 (3,677) 14,557 Amortization of above market contract intangibles (694) — — (694) — (694) Amortization of deferred revenue for modifications & drydock — 683 — 683 (683) — Total revenues (3) $ 35,596 10,835 — 46,431 (10,835) $ 35,596 Three months ended September 30, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 21,830 6,476 — 28,306 (6,476) $ 21,830 Time charter service revenues, excluding amortization 14,777 3,738 — 18,515 (3,738) 14,777 Amortization of above market contract intangibles (694) — — (694) — (694) Amortization of deferred revenue for modifications & drydock — 682 — 682 (682) — Total revenues (3) $ 35,913 10,896 — 46,809 (10,896) $ 35,913 Nine months ended September 30, 2021 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 64,759 19,215 — 83,974 (19,215) $ 64,759 Time charter service revenues, excluding amortization 42,369 10,315 — 52,684 (10,315) 42,369 Amortization of above market contract intangibles (2,060) — — (2,060) — (2,060) Amortization of deferred revenue for modifications & drydock — 2,049 — 2,049 (2,049) — Total revenues (3) $ 105,068 31,579 — 136,647 (31,579) $ 105,068 Nine months ended September 30, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 66,224 19,285 — 85,509 (19,285) $ 66,224 Time charter service revenues, excluding amortization 43,170 12,245 — 55,415 (12,245) 43,170 Amortization of above market contract intangibles (2,358) — — (2,358) — (2,358) Amortization of deferred revenue for modifications & drydock — 2,031 — 2,031 (2,031) — Total revenues (3) $ 107,036 33,561 — 140,597 (33,561) $ 107,036 (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 (loss) of joint ventures on the consolidated income statement. (2) The financing lease revenues comprise about one-fourth of the total lease revenues for the three and nine months ended September 30, 2021 and 2020. (3) 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. 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 is recorded in the consolidated balance sheet using the equity method on the line Accumulated earnings in joint ventures. The following table summarizes the allocation of consolidated receivables between lease and service components: As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Trade receivable for lease $ 5,174 $ 2,608 Trade receivable for time charter services 3,196 1,506 Allowance for expected credit losses (60) (60) Total trade receivable and amounts due from affiliates $ 8,310 $ 4,054 For the three and nine months ended September 30, 2021, there was no change in the allowance for expected credit losses. For the year ended December 31, 2020, there was no change in the allowance for expected credit losses following the cumulative effect of adopting the standard on Financial Instruments – Credit Losses: Measurement of Credit Losses The following tables summarize the consolidated contract assets, contract liabilities and refund liabilities to customers for the nine months ended September 30, 2021 and for the year ended December 31, 2020: Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2021 $ 261 $ (891) Additions — (820) Reduction for receivables recorded — 312 Balance September 30, 2021 $ 261 $ (1,399) Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2020 $ 279 $ (125) Additions — (841) Reduction for receivables recorded (18) — Reduction for revenue recognized (excluding amortization) — 10 Reduction for revenue recognized from previous years — 48 Repayments of refund liabilities to charterer — 17 Balance December 31, 2020 $ 261 $ (891) 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. The service-related contract asset reflected in the balance sheet relates to accrued revenue for reimbursable costs from charterers. 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. Net investment in financing lease The lease element of time charter hire for the PGN FSRU Lampung As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 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 (27,156) (23,471) Allowance for credit loss (96) (96) Net investment in financing lease at period end 270,572 274,257 Less: Current portion (5,308) (4,969) Long term net investment in financing lease $ 265,264 $ 269,288 Net investment in financing lease consists of: Financing lease receivable $ 225,099 $ 231,725 Unguaranteed residual value 45,473 42,532 Net investment in financing lease at period end $ 270,572 $ 274,257 |
Financial income (expense), net
Financial income (expense), net | 9 Months Ended |
Sep. 30, 2021 | |
Financial income (expense), net | |
Financial income (expense), net | 5. Financial income (expense), net The components of financial income (expense), net are as follows: Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2021 2020 2021 2020 Interest income $ 166 $ 135 $ 397 $ 470 Interest expense: Interest expense (5,001) (5,388) (15,081) (16,871) Amortization and gain (loss) on cash flow hedge (67) (24) (169) (136) Commitment fees (506) (35) (976) (103) Amortization of debt issuance cost (572) (567) (5,214) (1,737) Total interest expense (6,146) (6,014) (21,440) (18,847) Other items, net: Foreign exchange gain (loss) (18) (157) (41) 56 Bank charges, fees and other (391) (93) (499) (219) Withholding tax on interest expense and other (573) (596) (1,753) (1,817) Total other items, net (982) (846) (2,293) (1,980) Total financial income (expense), net $ (6,962) $ (6,725) $ (23,336) $ (20,357) Interest income related to cash balances and interest accrued on the advances to the joint ventures for each of the three and nine months ended September 30, 2021 and 2020. Interest expense includes interest related to the revolving credit facility from Höegh LNG, the Lampung facility and the $385 million facility. |
Income tax
Income tax | 9 Months Ended |
Sep. 30, 2021 | |
Income tax | |
Income tax | 6. Income tax 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 for certain Colombian source income. Income tax expense for the three months ended September 30, 2021 was $2.8 million, an increase of $0.9 million compared to $1.9 million for the three months ended September 30, 2020. Income tax expense for the nine months ended September 30, 2021 was $15.8 million, an increase of $11.5 million compared to $4.2 million for the nine months ended September 30, 2020. The main reason for the increase in income taxes for the three and nine months ended September 30, 2021 was an additional tax expense of $2.7 million in current taxes and an increase in the uncertain tax position of $8.4 million due to the completion of a tax audit related to 2019 in Indonesia. In late June 2021, the tax audit for the Indonesian subsidiary's 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. For the three and nine months ended September 30, 2021, there were increases in uncertain tax positions of $0.5 million and $8.4 million, respectively. As of September 30, 2021, and December 31, 2020, the unrecognized tax benefits were $11.1 million and $2.7 million, respectively. 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 million for the three and nine months ended September 30, 2020, respectively. |
Investments in joint ventures
Investments in joint ventures | 9 Months Ended |
Sep. 30, 2021 | |
Investments in joint ventures | |
Investments in joint ventures | 7. Investments in joint ventures As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Accumulated earnings of joint ventures $ 30,086 $ 9,690 The Partnership has a 50% interest in each of SRV Joint Gas Ltd. (owner of the Neptune Two Cape Ann Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2021 2020 2021 2020 Time charter revenues $ 19,937 $ 19,899 $ 58,211 $ 60,275 Other income 1,732 1,892 4,946 6,847 Total revenues 21,669 21,791 63,157 67,122 Operating expenses (3,864) (3,913) (11,215) (15,535) Depreciation and amortization (5,132) (5,135) (15,400) (15,411) Operating income 12,673 12,743 36,542 36,176 Unrealized gain (loss) on derivative instruments 4,573 4,452 19,987 (14,527) Other financial expense, net (5,288) (5,801) (16,197) (17,706) Income (loss) before tax 11,958 11,394 40,332 3,943 Income tax expense — — — — Net income (loss) $ 11,958 $ 11,394 $ 40,332 $ 3,943 Share of joint ventures owned 50% 50% 50% 50% Share of joint ventures net income (loss) before eliminations 5,979 5,697 20,166 1,971 Eliminations 77 77 231 231 Equity in earnings (losses) of joint ventures $ 6,056 $ 5,774 $ 20,397 $ 2,202 As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Cash and cash equivalents $ 24,408 $ 13,455 Restricted cash 36,241 21,264 Other current assets 639 178 Total current assets 61,288 34,897 Restricted cash 6 14,656 Vessels, net of accumulated depreciation 483,994 499,318 Total long-term assets 484,000 513,974 Current portion of long-term debt 353,245 199,030 Amounts and loans due to owners and affiliates 10,999 7,278 Derivative instruments 13,889 14,687 Refund liabilities 1,636 1,040 Other current liabilities 8,555 8,811 Total current liabilities 388,324 230,846 Long-term debt — 176,385 Loans due to owners and affiliates — 1,737 Derivative instruments 50,429 69,618 Other long-term liabilities 31,959 36,040 Total long-term liabilities 82,388 283,780 Net assets (liabilities) $ 74,576 $ 34,245 Share of joint ventures owned 50% 50% Share of joint ventures net assets (liabilities) before eliminations 37,288 17,123 Eliminations (7,202) (7,433) Accumulated earnings (losses) of joint ventures $ 30,086 $ 9,690 |
Advances to joint ventures
Advances to joint ventures | 9 Months Ended |
Sep. 30, 2021 | |
Advances to joint ventures | |
Advances to joint ventures | 8. Advances to joint ventures As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Current portion of advances to joint ventures $ 4,410 $ 3,284 Long-term advances to joint ventures — 869 Advances/shareholder loans to joint ventures $ 4,410 $ 4,153 The Partnership had advances of $3.5 million and $3.3 million due from SRV Joint Gas Ltd. as of September 30, 2021 and December 31, 2020, respectively. The Partnership had advances of $0.9 million and $0.9 million due from SRV Joint Gas Two Ltd. as September 30, 2021 and December 31, 2020. The joint ventures repaid the original principal of all shareholder loans during 2016. As of September 30, 2021, and December 31, 2020, the outstanding balances are accrued interest on the shareholder loans. As of September 30, 2017, the joint ventures suspended payments on the shareholder loans pending the outcome of the boil-off claim, which was settled in December 2020. The suspension of payments on the shareholder loans is currently being re-evaluated. Based on the final settlement of the boil-off claim made in December 2020, in addition to meeting certain conditions for making distributions as described below, the outstanding balances on the shareholder loans due from SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. have been classified as current as of September 30, 2021. Refer to note 14 under “Joint ventures boil-off settlement.” 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 September 30, 2021, both the 1.20 historical and projected debt service coverage ratios were met by SRV Joint Gas Ltd and SRV Joint Gas Two Ltd. As a result, both SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. qualify to make payments on the shareholder loans or other distributions. |
Long-term debt
Long-term debt | 9 Months Ended |
Sep. 30, 2021 | |
Long-term debt | |
Long-term debt | 9. Long-term debt As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Lampung facility: Export credit tranche $ 68,159 $ 79,324 FSRU tranche 15,504 18,635 $385 million facility: Commercial tranche 216,507 230,705 Export credit tranche 39,500 44,500 Revolving credit tranche 63,050 48,300 Outstanding principal 402,720 421,464 Lampung facility unamortized debt issuance cost (2,154) (2,999) $385 million facility unamortized debt issuance costs (3,185) (3,876) Total debt 397,381 414,589 Less: Current portion of long-term debt (55,987) (59,119) Long-term debt $ 341,394 $ 355,470 Lampung facility PT Hoegh LNG Lampung is the Borrower and Höegh LNG is the guarantor for the Lampung facility. The ( As previously reported, by letter dated July 13, 2021, the charterer under the lease and maintenance agreement for the PGN FSRU Lampung PGN FSRU Lampung The commercial tranche of the Lampung facility was initially due on September 29, 2021. During the third quarter of 2021, the maturity date was deferred to January 14, 2022 and will be further deferred to March 29, 2022 if commitment letters and a term sheet for an Approved Refinancing are in place by December 29, 2021. The export credit tranche of the Lampung facility can be called if the commercial tranche is not refinanced. The ongoing refinancing of the Lampung credit facility, which had been scheduled to close by the end of the second quarter of 2021, is not yet completed due to the failure by the charterer to countersign certain customary documents related to the new credit facility. These circumstances left the Partnership exposed to having to arrange alternative refinancing. Such alternative refinancing is in progress. In November we received commitment letters and a term sheet for an Approved Refinancing from a group of lenders. We expect to complete this refinancing before the deferred maturity date, subject to certain required approvals by export credit tranche lenders, completing documentation and customary closing conditions. However, we are also continuing to pursue other potential alternative debt structures. The terms of the alternative refinancing, if we are successful in finalizing such refinancing, are likely to be less favourable than the terms of the originally agreed refinancing and the existing Lampung facility. No assurance can be given at this time as to the outcome of the dispute with the charterer of the PGN FSRU 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 September 30, 2021, the borrower and the guarantor were in compliance with the financial covenants under the Lampung facility. There is a subjective acceleration clause in the Lampung facility agreement, that provides any event or circumstance, which, in the opinion of the lenders, has or is reasonable likely to have a material adverse effect, can be deemed an event of default requiring repayment of the facility. 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. Further, as a condition for the deferred maturity date of the Lampung facility, no shareholder loans may be repaid and no dividends may be paid to the Partnership by PT Höegh. As a consequence, no cash flow from the PGN FSRU Lampung will be available for the Partnership prior to March 29, 2022. The pending arbitration with the charterer may also limit the ability to distribute cash from the Borrower. 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 $385 million facility On January 29, 2019, the Partnership entered into 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 the owner of the Höegh Grace Höegh Grace 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 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 Hoegh LNG. There were no draws during the year ended December 31, 2020. On September 3, 2021 the Partnership drew the remaining $14.7 million available on the $63 million revolving credit tranche of the $385 million facility. 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 times 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 (prorate for partial ownership), subject to a cap of $20 million ● The Vessel Owners must maintain a ratio of combined EBITDA to debt service (principal repayments, guarantee commission, commitment fees and interest expense) for the preceding twelve months of a minimum of 115% In addition, a security maintenance ratio based on the aggregate market value of the Höegh Gallant Höegh Grace As of September 30, 2021, the borrower and the Vessel Owners were in compliance with the financial covenants. 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 Höegh LNG (a waiver of which was obtained in connection with the Amalgamation) or 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 Höegh Grace pari passu |
Accrued liabilities and payable
Accrued liabilities and payables | 9 Months Ended |
Sep. 30, 2021 | |
Accrued liabilities and payables | |
Accrued liabilities and payables | 10. Accrued liabilities and payables As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Accrued operating and administrative expenses $ 4,277 $ 3,042 Accrued interest 2,394 2,641 Current tax payable 1,149 469 Current portion – provision for tax uncertainty (note 6) 2,641 — Refund liabilities (note 4) 1,399 891 Lease liability 64 39 Other accruals and payables 800 150 Total accrued liabilities and other payables $ 12,724 $ 7,232 |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related party transactions | |
Related party transactions | 11. Related party transactions Income (expenses) from related parties As described in Related party agreements PGN FSRU Lampung Höegh Gallant Höegh Grace Höegh Gallant Höegh Gallant Höegh Grace Related party amounts included in the consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 or in the consolidated balance sheets as of September 30, 2021 and December 31, 2020 are as follows: Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2021 2020 2021 2020 Revenues Time charter revenue Höegh Gallant $ 10,950 $ 10,950 $ 32,493 $ 34,365 Operating expenses Vessel operating expenses (2) (3,191) (5,497) (11,440) (15,028) Hours, travel expense and overhead (3) and Board of Directors’ fees (4) (1,004) (838) (3,366) (2,967) Financial (income) expense Interest income from joint ventures (5) 124 82 257 239 Interest expense and commitment fees to Höegh LNG (6) (258) (95) (685) (291) Total $ 6,621 $ 4,602 $ 17,259 $ 16,318 As of Balance sheet September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Equity Contribution from Höegh LNG (7) $ 315 $ 11,850 Repayment of indemnification received from Höegh LNG (8) — — Issuance of units for Board of Directors’ fees (4) 211 181 Other and contribution from owner (9) 15 109 Total $ 541 $ 12,140 1) Time charter revenue Höegh Gallant: Subsidiaries of Höegh LNG have leased the Höegh Gallant . 2) Vessel operating expenses: Subsidiaries of Höegh LNG provide ship management of vessels, including crews and the provision of all other services and supplies. 3) Hours, travel expenses and overhead: Subsidiaries of Höegh LNG provide management, accounting, bookkeeping and administrative support under administrative service agreements. These services are charged 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. 4) Board of Directors’ fees: Board of Directors' fees were $448 and $412 for the nine months ended September 30, 2021 and 2020 respectively. Part of the compensation is awarded as common units of the Partnership. Effective June 7, 2021, a total of 11,960 common units were awarded to non-employee directors as compensation of $203 for part of directors' fees for 2021 under the Höegh LNG Partners LP Long Term Incentive Plan. 5) 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. 6) Interest expense to Höegh LNG and affiliates: Höegh LNG and its affiliates provided an $85 million revolving credit facility for general partnership purposes. The Partnership incurred interest expense on the drawn balance. 7) 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. 8) 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 26, 2020, March 21, 2019 and September 14, 2018, the Partnership granted or extended the terms for 8,100 , 10,917 and 28,018 phantom units, respectively, to the former Chief Executive Officer and Chief Financial Officer of the Partnership. Related expenses are recorded over the vesting period as an administrative expense and as an increase in equity. On August 6, 2020, the Partnership announced that the Partnership's former Chief Executive Officer and Chief Financial Officer resigned which resulted in 15,378 of the phantom units not vesting, resulting in a reduction in administrative expense and equity for the forfeited units. The remaining unvested phantom units vest in November 2021. Dividends to Höegh LNG: Receivables and payables from related parties Amounts due from affiliates As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Amounts due from affiliates $ 3,880 $ 3,639 The amount due from affiliates relates to a receivable for time charter hire from subsidiaries of Höegh LNG for the Höegh Gallant Amounts due to owners and affiliates As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Amounts due to owners and affiliates $ 3,291 $ 2,600 As of September 30, 2021, and December 31, 2020, amounts due to owners and affiliates principally relate to trade payables for services provided by subsidiaries of Höegh LNG. Revolving credit facility due to owners and affiliates As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Revolving credit facility due to owners and affiliates - non-current portion $ 24,681 $ 18,465 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. On April 8, and December 11, 2020, the Partnership was indemnified by Höegh LNG for its share of the joint ventures’ boil-off settlement payments by a reduction of $8.6 million and $3.3 million, respectively, on its outstanding balance on the revolving credit facility. On April 24, 2020, August 7, 2020 and October 23, 2020, the Partnership drew $4.5 million, $6.6 million and $10.7 million, respectively, on the revolving credit facility. On May 7, 2021, the Partnership drew $6.0 million on the $85 million revolving credit facility. 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. 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 LNG AS (“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 ● Hoegh LNG Cyprus Limited acting through its Egyptian Branch had 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 and expired in April 2020; ● 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 ; and ● 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 ● 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 into an administrative services agreement with Höegh Norway, pursuant to which Höegh Norway provides certain administrative services to the Partnership. On April 30, 2020, the Partnership entered into a Lease and Maintenance Agreement with a subsidiary of Höegh LNG for the time charter of the Höegh Gallant Höegh Gallant Following the consummation of an amalgamation by Höegh LNG that closed in May, 2021, some provisions of the omnibus agreement entered into in connection with our IPO terminated in accordance with their terms. Indemnifications 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 PGN FSRU Lampung PGN FSRU Lampung No indemnification claims were filed or received for the three or nine months ended September 30, 2021 and 2020. Under the contribution, purchase and sale agreement entered into with respect to the purchase of the Höegh Gallant , 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. No indemnification claims were filed or received for the three or nine months ended September 30, 2021 and 2020. 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 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; and 4. any non-budgeted losses suffered or incurred in connection with commencement of services under the Höegh Grace charter with SPEC. No indemnification claims were filed or received for the three or nine months ended September 30, 2021 and 2020. On September 27, 2017, the Partnership entered into an indemnification agreement with Höegh LNG with respect to the boil-off claims under the Neptune Cape Ann Neptune Cape Ann |
Financial instruments
Financial instruments | 9 Months Ended |
Sep. 30, 2021 | |
Financial instruments | |
Financial instruments | 12. 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 and restricted cash Amounts due from (to) owners and affiliates Derivative instruments – Advances (shareholder loans) to joint ventures – Lampung and $385 million facilities – Revolving credit due to owners and affiliates – 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 September 30, 2021 December 31, 2020 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 $ 45,373 45,373 31,770 $ 31,770 Restricted cash 1 15,358 15,358 19,293 19,293 Derivative instruments 2 (17,228) (17,228) (26,475) (26,475) Other: Amounts due from affiliate 2 3,880 3,880 3,639 3,639 Advances (shareholder loans) to joint ventures 2 4,410 4,442 4,153 4,305 Current amounts due to owners and affiliates 2 (3,291) (3,291) (2,600) (2,600) Lampung facility 2 (81,509) (83,547) (94,960) (99,295) $385 million facility 2 (315,872) (317,573) (319,629) (323,342) Revolving credit facility due to owners and affiliates 2 $ (24,681) (23,464) (18,465) $ (16,987) Financing receivables and net investment in financing lease The following table contains a summary of the class of financial asset, year of origination and the method by which the credit quality is monitored on a quarterly basis: As of Class Credit Quality September 30, December 31, (in thousands of U.S. dollars) Year Indicator Grade 2021 2020 Advances/shareholder loans to joint ventures 2006 Collection experience Performing $ 4,410 $ 4,153 Net investment in financing lease 2014 Credit Information Performing $ 270,572 $ 274,257 The shareholder loans to joint ventures are classified as advances to joint ventures in the consolidated balance sheet. Refer to note 8. For the three and nine months ended September 30, 2021, there was no change in the allowance for expected credit losses. For the year ended December 31, 2020, there was no change in the allowance for expected credit losses following the cumulative effect of adopting the standard on Financial Instruments – Credit Losses: Measurement of Credit Losses |
Risk management and concentrati
Risk management and concentrations of risk | 9 Months Ended |
Sep. 30, 2021 | |
Risk management and concentrations of risk | |
Risk management and concentrations of risk | 13. Risk management, derivative instruments 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 reduces the exposure to interest rate variability on the Partnership's outstanding floating-rate debt over the life of the interest rate swaps. As of September 30, 2021 and 2020, there were 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 September 30, 2021, 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 $ 68,159 $ (3,427) Sep 2026 2.800% $385 million facility swaps (2) LIBOR $ 53,260 $ (3,739) Jan 2026 2.941% $385 million facility swaps (2) LIBOR $ 53,260 $ (3,473) Oct 2025 2.838% $385 million facility swaps (2) LIBOR $ 53,260 $ (3,370) Jan 2026 2.735% $385 million facility swaps (2) LIBOR $ 53,260 $ (3,219) 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 principal 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 outstanding balance of the Lampung facility 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. 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 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 2.735% and 2.650% 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 swaps amortize over approximately 7 years to match the outstanding balances of the commercial tranches of the $385 million facility until the maturity dates. 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. All derivatives are designated as cash flow hedging instruments. Fair value of derivative instruments 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 September 30, 2021 Interest rate swaps $ — $ — $ (6,092) $ (11,136) As of December 31, 2020 Interest rate swaps $ — $ — $ (6,945) $ (19,530) The following effects of cash flow hedges relating to interest rate swaps are included in interest expense and income tax expense in the consolidated statements of income which are the same lines as the earnings effects of the hedged item for the three and nine months ended September 30, 2021 and 2020. Effect of cash flow hedge accounting on the consolidated statement of income Three months ended Nine months ended September 30, 2021 September 30, 2021 Interest Income tax Interest Income tax (in thousands of U.S. dollars) expense benefit expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (2,034) $ — $ (6,524) $ — Amortization of amount excluded from hedge effectiveness 189 — 599 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (256) 43 (768) 160 Total gains (losses) on derivative instruments $ (2,101) $ 43 $ (6,693) $ 160 Three months ended Nine months ended September 30, 2020 September 30, 2020 Interest Income tax Interest Income tax (in thousands of U.S. dollars) expense benefit expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (1,906) $ — $ (3,716) $ — Amortization of amount excluded from hedge effectiveness 232 — 632 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (256) 61 (768) 190 Total gains (losses) on derivative instruments $ (1,930) $ 61 $ (3,852) $ 190 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 period ended September 30, 2021. 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: Interest Tax (in thousands of U.S. dollars) (losses) (expense) Net of tax expense benefit Accumulated OCI as of December 31, 2020 $ (29,486) (86) $ (29,572) Effective portion of unrealized loss on cash flow hedge 2,124 — 2,124 Reclassification from accumulated other comprehensive income included in hedge effectiveness 6,524 — 6,524 (6,524) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 768 (160) 608 (768) 160 Other comprehensive income for period 9,416 (160) 9,256 Accumulated OCI as of September 30, 2021 $ (20,070) (246) $ (20,316) Gain (loss) reclassified to earnings $ (7,292) $ 160 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 period ended December 31, 2020. 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: Interest Tax (in thousands of U.S. dollars) (losses) (expense) Net of tax expense benefit Accumulated OCI as of December 31, 2019 $ (18,119) 176 $ (17,943) Initial value of interest rate swap to be recognized in earnings on amortization approach (18,331) — (18,331) Effective portion of unrealized loss on cash flow hedge 3,716 — 3,716 (3,716) — Reclassification from accumulated other comprehensive income included in hedge effectiveness 768 (190) 578 (768) 190 Other comprehensive income for period (13,847) (190) (14,037) Accumulated OCI as of September 30, 2020 $ (31,966) (14) $ (31,980) Gain (loss) reclassified to earnings $ (4,484) $ 190 Other comprehensive income for the period from October 1, 2020 to December 31, 2020 2,480 (72) 2,408 Accumulated OCI as of December 31, 2020 $ (29,486) (86) $ (29,572) As of September 30, 2021, the estimated amounts to be reclassified from accumulated other comprehensive income to earnings during the next twelve months is $7.0 million for amortization of accumulated other comprehensive income. 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 nine months ended September 30, 2021 and the year ended December 31, 2020, 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, net investment in financing lease and interest rate swap agreements. Further, the Partnership has future exposure for Höegh LNG's ability to make payments to the Partnership for the technical modifications of the vessels and any prospective boil-off claims or other direct impacts of the boil-off settlement agreement. 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 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. 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 Höegh Grace PGN FSRU Lampung , |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and contingencies | |
Commitments and contingencies | 14. Commitments and contingencies Contractual commitments As of September 30, 2021, the Partnership has no material commitments for capital expenditures. During the second quarter of 2021, the procedures for the on-water class renewal survey for the Höegh Grace As of September 30, 2021, there were no material contractual purchase commitments. Claims and Contingencies Joint ventures boil-off settlement Under the Neptune Cape Ann 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 Cape Ann The first installment of the settlement of $17.2 million was paid by the joint ventures in April 2020. The Partnership’s 50% share was $8.6 million. The second and final installment of the settlement of $6.5 million was paid by the joint ventures in December 2020. The Partnership’s 50% share was $3.3 million. The Partnership is indemnified by Höegh LNG for its share of the technical modifications of the vessels and any prospective boil-off claims or other direct impacts of the settlement agreement. On April 8, 2020 and December 11, 2020, the Partnership was indemnified by Höegh LNG for its share of the joint ventures boil-off settlement payments by a reduction of $8.6 million and $3.3 million, respectively, on its outstanding balance on the $85 million revolving credit facility from Höegh LNG. On March 12, 2021, the Partnership was indemnified by Höegh LNG for its share of the joint ventures performance claims for the year ended December 31, 2020 by a reduction of $0.3 million on its outstanding balance on the $85 million revolving credit facility from Höegh LNG. Höegh LNG and the other major owner guarantee the performance and payment obligations of the joint ventures under the time charters. 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 corporate income tax for up to five years following the completion of a fiscal year. On January 22, 2021, the Partnership’s Indonesian subsidiary received a letter from the Indonesian tax authorities that there will be an examination by the Indonesian tax authorities for the tax return from 2019 during 2021. The examinations may lead to ordinary course adjustments or proposed adjustments to the subsidiary’s income taxes with respect to years under examination. Future examinations may or may not result in changes to the Partnership’s provisions on tax filings for the open tax years that remain subject to a potential tax audit in Indonesia. The position for the open tax years was to take a tax deduction for the interest expense on the internal promissory note. For 2019, see Indonesian 2019 tax audit Indonesian 2019 tax audit In June 2021, the tax audit for PGN FSRU Lampung’s Indonesian corporate income tax 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 has appealed the assessment. 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 as a component of vessel operating expenses 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 $0.5 million. PGN FSRU Lampung Arbitration As previously reported, by letter dated July 13, 2021, the charterer under the lease and maintenance agreement for the PGN FSRU Lampung PGN FSRU Lampung The commercial tranche of the Lampung facility was initially due on September 29, 2021. During the third quarter of 2021, the maturity date was deferred to January 14, 2022 and will be further deferred to March 29, 2022 if commitment letters and a term sheet for an Approved Refinancing are in place by December 29, 2021. The export credit tranche of the Lampung facility can be called if the commercial tranche is not refinanced. The ongoing refinancing of the Lampung credit facility, which had been scheduled to close by the end of the second quarter of 2021, is not yet completed due to the failure by the charterer to countersign certain customary documents related to the new credit facility. These circumstances left the Partnership exposed to having to arrange alternative refinancing. Such alternative refinancing is in progress. In November we received commitment letters and a term sheet for an Approved Refinancing from a group of lenders. We expect to complete this refinancing before the deferred maturity date, subject to certain required approvals by export credit tranche lenders, completing documentation and customary closing conditions. However, we are also continuing to pursue other potential alternative debt structures. The terms of the alternative refinancing, if we are successful in finalizing such refinancing, are likely to be less favourable than the terms of the originally agreed refinancing and the existing Lampung facility. No assurance can be given at this time as to the outcome of the dispute with the charterer of the PGN FSRU Lampung The Securities Class Actions On October 27, 2021, a federal securities class action lawsuit was filed against the Partnership and certain of its current and former officers in the United States District Court for the District of New Jersey. The name of the case is Guillermo Sanchez v. Hoegh LNG Partners LP, et al., Case No. 2:21-cv-19374-KM-JBC. The complaint alleges that the Partnership made materially false and misleading statements about its business and operations, and seeks unspecified damages, attorneys’ fees and any other relief the court deems proper. A substantially identical suit named Arthur F. Roizman v. Hoegh LNG Partners LP, et al., Case No. 1:21-cv-19613 was filed on November 3, 2021 in the same court (together with the previously mentioned suit, the “Securities Class Actions”). The Partnership believes the allegations in these suits are without merit, and intends to vigorously defend against them. As a result of the uncertainty regarding the outcome of these matters, no provision has been made in the Unaudited Condensed Interim Consolidated Financial Statements. |
Supplemental cash flow informat
Supplemental cash flow information | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental cash flow information | |
Supplemental cash flow information | 15 . Supplemental cash flow information Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2021 2020 2021 2020 Supplemental disclosure of non-cash financing activities Non-cash indemnifications received $ — $ — $ 315 $ 8,600 Refer to note 11 for non-cash indemnification received information. |
Issuance of common units and Se
Issuance of common units and Series A preferred units | 9 Months Ended |
Sep. 30, 2021 | |
Issuance of common units and Series A preferred units | |
Issuance of common units and Series A preferred units | 16. Issuance of common units and Series A preferred units 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. From the commencement of the Prior ATM program in January 2018 through September 30, 2021, the Partnership sold 2,489,325 Series A preferred units and 358,869 common units under the ATM programs and received net proceeds of $63.2 million and $6.4 million, respectively. The compensation paid to the Agent for such sales was $1.3 million. For the period from January 1, 2021 to September 30, 2021, the Partnership sold (i) an aggregate of 52,603 common units under the ATM program at an average gross sales price of $15.75 per unit and received net proceeds, after sales commissions, of $0.8 million and (ii) an aggregate of 336,992 Series A preferred units under the ATM program at an average gross sales price of $25.12 per unit and received net proceeds, after sales commissions, of $8.3 million. The compensation paid to the Agent for such sales was $0.2 million. As of September 30, 2021 Series A Common preferred (in thousands of U.S. dollars) units units Total Gross proceeds for units issued $ 829 8,467 $ 9,296 Less: Commissions (11) (149) (160) Net proceeds for units issued $ 818 8,318 $ 9,136 |
Common and preferred units
Common and preferred units | 9 Months Ended |
Sep. 30, 2021 | |
Common and preferred units | |
Common and preferred units | 17. Common and preferred units The following table shows the movements in the number of common units and preferred units from December 31, 2019 until September 30, 2021: Common 8,75% Common Units Series A Units Höegh Preferred (in units) Public LNG Units December 31, 2019 18,028,786 15,257,498 6,625,590 September 4, 2020; Awards to non-employee directors as compensation for directors' fees 3,882 — — September 15, 2020; Awards to non-employee directors as compensation for directors' fees 7,764 — — October 23, 2020; Awards to non-employee directors as compensation for directors' fees 3,882 — — Phantom units issued to CEO/CFO during 2020 6,627 — — ATM program (from January 1, 2020 to December 31, 2020) — — 126,743 December 31, 2020 18,050,941 15,257,498 6,752,333 ATM program (from January 1, 2021 to September 30, 2021) 52,603 — 336,992 June 21, 2021; Awards to non-employee directors as compensation for directors' fees 7,176 — — July 12, 2021; Awards to non-employee directors as compensation for directors' fees 2,392 — — July 16, 2021; Awards to non-employee directors as compensation for directors' fees 2,392 — — September 30, 2021 18,115,504 15,257,498 7,089,325 Refer to note 18 for information on distributions to common 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 | 9 Months Ended |
Sep. 30, 2021 | |
Earning per unit and cash distributions | |
Earning per unit and cash distributions | 18. Earning per unit and cash distributions The calculation of basic and diluted earnings per unit are presented below: Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars, except per unit numbers) 2021 2020 2021 2020 Net income $ 17,359 $ 19,475 $ 43,836 $ 44,631 Adjustment for: Preferred unitholders’ interest in net income 3,877 3,681 11,631 11,017 Limited partners' interest in net income 13,482 15,794 32,205 33,614 Less: Dividends paid or to be paid (1) (334) (15,052) (15,747) (45,143) Under (over) distributed earnings 13,148 742 16,458 (11,529) Under (over) distributed earnings attributable to: Common units public 7,137 402 8,934 (6,246) Common units Höegh LNG 6,011 340 7,524 (5,283) $ 13,148 $ 742 $ 16,458 $ (11,529) Basic weighted average units outstanding (in thousands) Common units public 18,115 18,031 18,102 18,030 Common units Höegh LNG 15,257 15,257 15,257 15,257 Diluted weighted average units outstanding (in thousands) Common units public 18,122 18,037 18,119 18,037 Common units Höegh LNG 15,257 15,257 15,257 15,257 Basic and diluted earnings per unit (2): Common unit public $ 0.40 $ 0.46 $ 0.95 $ 0.97 Common unit Höegh LNG (3) $ 0.40 $ 0.49 $ 0.98 $ 1.05 (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 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. Effective March 21, 2019, the Partnership granted 10,917 phantom units to the CEO/CFO of the Partnership. One-third of such phantom units vest as of November 30, 2019, 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. On September 14, 2018, the plan was amended to extend the terms and conditions of 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. As a result of the resignation of the former CEO/CFO of the Partnership in August 2020, a total of 15,378 of the unvested phantom units terminated. (3) Includes total amounts attributable to incentive distributions rights of $0 and $800 for the three and nine months ended September 30, 2021, respectively. For the three and nine months ended September 30, 2021, the full amount was attributable to common units owned by Höegh LNG. For the three and nine months ended September 30, 2020, respectively, $400 and $1,198 were attributed to common units owned by Höegh LNG. 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: ● 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 | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent events | |
Subsequent events | 19. Subsequent events On November 15, 2021, the Partnership paid a cash distribution of $0.3 million, or $0.01 per common unit, with respect to the three months ended September 30, 2021. On November 15, 2021, the Partnership paid a distribution of $3.9 million, or $0.546875 per Series A preferred unit, for the period commencing on August 15, 2021 to November 14, 2021. The commercial tranche of the Lampung facility was initially due on September 29, 2021. During the third quarter of 2021, the maturity date was deferred to January 14, 2022 and will be further deferred to March 29, 2022 if commitment letters and a term sheet for an Approved Refinancing are in place by December 29, 2021. The export credit tranche of the Lampung facility can be called if the commercial tranche is not refinanced. The ongoing refinancing of the Lampung credit facility, which had been scheduled to close by the end of the second quarter of 2021, is not yet completed due to the failure by the charterer to countersign certain customary documents related to the new credit facility. In addition, by letter dated July 13, 2021, the charterer raised certain issues in relation to the operations of the PGN FSRU Lampung and PGN FSRU Lampung Notwithstanding the NOA, both parties have continued to perform their respective obligations under the LOM. PT HLNG has served a reply refuting the claims as baseless and without legal merit and has also served a counterclaim against the charterer for multiple breaches of the LOM. PT HLNG will take all necessary steps and will vigorously defend the charterer’s claims in the legal process. In addition, we are at an advanced stage for the refinancing of the Neptune facility and the Cape Ann facility which mature and become payable by our Joint Ventures on November 30, 2021 and June 1, 2022, respectively. The loan agreement for the Neptune Cape Ann Neptune Cape Ann Should we be unable to refinance the Lampung facility or the Neptune and Cape Ann facilities or our other debt maturities on a timely basis or at all, we may not have sufficient funds or other assets to satisfy all our obligations, which would have a material adverse effect on our business, results of operations, financial condition and ability to make distributions to unitholders. On November 1, 2021, Mr. Sveinung J. S. Støhle stepped down from his position as the Partnership's Chief Executive Officer in order to pursue an alternative career opportunity. The board of directors of the Partnership is undertaking a process to select a successor for the CEO position, and has appointed Håvard Furu, the Partnership's Chief Financial Officer, to also act as the Partnership's interim Chief Executive Officer while the board conducts its search. For information on the Securities Class Actions, refer to Note 14. |
Significant accounting polici_2
Significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Significant accounting policies | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed interim consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information. In the opinion of Management, all adjustments considered necessary for a fair presentation, which are of a normal recurring nature, have been included. All intercompany balances and transactions are eliminated. The footnotes are condensed and do not include all the disclosures required for a complete set of financial statements. Therefore, the unaudited condensed interim consolidated financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2020, included in the Partnership’s Annual Report on Form 20-F (the “Annual Report”). PT Hoegh LNG Lampung, Hoegh LNG Cyprus Limited, Höegh LNG Colombia Holding Ltd., SRV Joint Gas Ltd. and SRV Joint Gas Two Ltd. are treated as 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, 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. 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. As of September 30, 2021, PT Hoegh LNG Lampung is in the process of establishing the required statutory reserves and therefore is currently unable to make dividend payments under Indonesia law. Under the Lampung facility, there are limitations on cash dividends and loan distributions that can be made to the Partnership. Refer to note 9. The Partnership has also 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 support. 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. The Partnership has determined that Höegh LNG Colombia Holding Ltd. is a VIE since the entity would not be able to finance its activities without financial support and financial guarantees under its subsidiary’s facility to finance the Höegh Grace Dividends and other distributions from Höegh LNG Cyprus Limited, Hoegh LNG Colombia 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 9. 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 $3.5 million and $3.3 million, respectively, as of September 30, 2021 and December 31, 2020. The Partnership’s accumulated earnings, or its share of net assets, were $15.7 million and $5.5 million, respectively, as of September 30, 2021 and December 31, 2020. The Partnership's carrying value for SRV Joint Gas Two Ltd. consists of a receivable for the advances of $0.9 million and $0.9 million, respectively, as of September 30, 2021 and December 31, 2020. The Partnership’s accumulated earnings, or its share of net assets, were $14.4 million and $4.2 million, respectively, as of September 30, 2021 and December 31, 2020. The major reason that the Partnership had accumulated earnings in the joint ventures as of September 30, 2021 and the major reason that the Partnership historically has had accumulated losses in the joint ventures, or net liabilities, is 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. Refer to notes 8 and 14 for additional discussion on dividend distributions. |
Going concern | Going concern The unaudited condensed interim consolidated financial statements have been prepared assuming that the Partnership will continue as a going concern. In considering going concern, management has reviewed the Partnership’s future cash requirements, covenant compliance and earnings projections. To ensure we have the necessary liquidity to satisfy our anticipated capital expenditures, scheduled repayments of long and short-term debts, financing costs and working capital requirements over the next 12 months, we are in ongoing discussions with various financial institutions. The main items that management considered from a liquidity standpoint were: ● the commercial tranche of the Lampung facility, which had an initial loan balance of $46.4 million, which was initially due to mature on September 29, 2021 but is now deferred to January 14, 2022 and will be further deferred to March 29, 2022 if commitment letters and a term sheet for an Approved Refinancing (as defined in the Lampung facility agreement) are in place by December 29, 2021; ● the export credit tranche of the Lampung facility, which had an initial loan balance of $178.6 million, which may be called if the commercial tranche of the Lampung facility is not refinanced when it matures; ● the Neptune facility, which had an initial loan balance of $297.4 million, due to mature on November 30, 2021; ● the Cape Ann facility, which had an initial loan balance of $300 million, due to mature on June 1, 2022; ● the $85 million revolving credit facility due to mature on January 1, 2023.; ● our ability to monetize assets, including but not limited to, the risk of fluctuations in our unit price. While we believe it is probable that we will be able to obtain the necessary funds and have a track record of successfully refinancing our debt requirements, and sourcing new funding, primarily as a result of the strong fundamentals in relation to our assets (including contracted cash flows), we cannot be certain that refinancing arrangements will be executed in time or at all. Global financial markets and economic conditions have been and continue to be volatile, particularly with the COVID-19 pandemic. In this context, we continue to have productive discussions with existing and potential new lenders, and believe that these external developments are not likely to have a material adverse effect on our ability to refinance existing debt requirements, monetize existing assets and source new funding. Further, if market and economic conditions were to be favorable, we may also consider, in conjunction with the refinancing of existing loans, further issuances of corporate debt or equity to increase liquidity to meet maturing obligations. To this aim, sources of funding for our long-term obligations are continually reviewed by management and include a combination of new loans, refinancing of existing arrangements, public and private debt or equity offerings, and potential asset sales. Accordingly, we believe that based on our plans, as outlined above, we will have sufficient resources to satisfy our obligations in the ordinary course of business for the 12-month period from the date these consolidated financial statements were issued. Please refer to note 19 for the Partnership’s plan to refinance the Lampung facility. |
Significant accounting policies | Significant accounting policies The accounting policies used in the preparation of the unaudited condensed interim consolidated financial statements are consistent with those applied in the audited financial statements for the year ended December 31, 2020 included in the Partnership’s Annual Report, except as described below. |
Recently adopted accounting pronouncements and Recently issued accounting pronouncements | Recently adopted accounting pronouncements On January 1, 2021, the Partnership adopted the Financial Accounting Standards Board’s (“FASB”) revised guidance on Income Taxes - Simplifying the Accounting for Income Taxes Recently issued accounting pronouncements In March 2020, FASB issued final guidance for Reference Rate Reform Other recently issued accounting pronouncements are not expected to materially impact the Partnership. |
Description of business (Tables
Description of business (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Description of business | |
Schedule of entities | The following table lists the entities included in these consolidated financial statements and their purpose as of September 30, 2021: Jurisdiction of Incorporation Name or Registration Purpose Höegh LNG Partners LP Marshall Islands Holding Company Höegh LNG Partners Operating LLC (100% owned) 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 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) 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) Cayman Islands Owns Höegh Grace Höegh LNG Colombia S.A.S. (100% indirectly owned) Colombia Operating Company (1) PT Hoegh LNG Lampung is a variable interest entity, which is 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. |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment information | |
Schedule of results of segments | The following tables include the results for the segments for the three and nine months ended September 30, 2021 and 2020. Three months ended September 30, 2021 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 35,596 10,835 — 46,431 (10,835) (1) $ 35,596 Total revenues 35,596 10,835 — 46,431 35,596 Operating expenses (7,332) (1,932) (2,086) (11,350) 1,932 (1) (9,418) Equity in earnings (losses) of joint ventures — — — — 6,056 (1) 6,056 Segment EBITDA 28,264 8,903 (2,086) 35,081 Depreciation and amortization (5,096) (2,489) — (7,585) 2,489 (1) (5,096) Operating income (loss) 23,168 6,414 (2,086) 27,496 27,138 Gain (loss) on derivative instruments — 2,287 — 2,287 (2,287) (1) — Other financial income (expense), net (2,935) (2,645) (4,027) (9,607) 2,645 (1) (6,962) Income (loss) before tax 20,233 6,056 (6,113) 20,176 20,176 Income tax expense (2,817) — — (2,817) — (2,817) Net income (loss) $ 17,416 6,056 (6,113) 17,359 — $ 17,359 Preferred unitholders’ interest in net income — — — — 3,877 (2) 3,877 Limited partners’ interest in net income (loss) $ 17,416 6,056 (6,113) 17,359 (3,877) (2) $ 13,482 (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) Allocates the preferred unitholders' interest in net income to the preferred unitholders. Three months ended September 30, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 35,913 10,896 — 46,809 (10,896) (1) $ 35,913 Total revenues 35,913 10,896 — 46,809 35,913 Operating expenses (6,831) (1,957) (1,587) (10,375) 1,957 (1) (8,418) Equity in earnings (losses) of joint ventures — — — — 5,774 (1) 5,774 Segment EBITDA 29,082 8,939 (1,587) 36,434 Depreciation and amortization (5,210) (2,490) — (7,700) 2,490 (1) (5,210) Operating income (loss) 23,872 6,449 (1,587) 28,734 28,059 Gain (loss) on derivative instruments — 2,226 — 2,226 (2,226) (1) — Other financial income (expense), net (2,415) (2,901) (4,310) (9,626) 2,901 (1) (6,725) Income (loss) before tax 21,457 5,774 (5,897) 21,334 21,334 Income tax expense (1,859) — — (1,859) — (1,859) Net income (loss) $ 19,598 5,774 (5,897) 19,475 — $ 19,475 Preferred unitholders’ interest in net income — — — — 3,681 (2) 3,681 Limited partners’ interest in net income (loss) $ 19,598 5,774 (5,897) 19,475 (3,681) (2) $ 15,794 (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) Allocates the preferred unitholders' interest in net income to the preferred unitholders. Nine months ended September 30, 2021 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 105,068 31,579 — 136,647 (31,579) (1) $ 105,068 Total revenues 105,068 31,579 — 136,647 105,068 Operating expenses (21,590) (5,608) (5,628) (32,826) 5,608 (1) (27,218) Equity in earnings (losses) of joint ventures — — — — 20,397 (1) 20,397 Segment EBITDA 83,478 25,971 (5,628) 103,821 Depreciation and amortization (15,318) (7,469) — (22,787) 7,469 (1) (15,318) Operating income (loss) 68,160 18,502 (5,628) 81,034 82,929 Gain (loss) on derivative instruments — 9,994 — 9,994 (9,994) (1) — Other financial income (expense), net (11,140) (8,099) (12,196) (31,435) 8,099 (1) (23,336) Income (loss) before tax 57,020 20,397 (17,824) 59,593 59,593 Income tax expense (15,757) — — (15,757) — (15,757) Net income (loss) $ 41,263 20,397 (17,824) 43,836 — $ 43,836 Preferred unitholders’ interest in net income — — — — 11,631 (2) 11,631 Limited partners’ interest in net income (loss) $ 41,263 20,397 (17,824) 43,836 (11,631) (2) $ 32,205 (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) Allocates the preferred unitholders’ interest in net income to the preferred unitholders. Nine months ended September 30, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Time charter revenues $ 107,036 33,561 — 140,597 (33,561) (1) $ 107,036 Total revenues 107,036 33,561 — 140,597 107,036 Operating expenses (19,676) (7,768) (4,607) (32,051) 7,768 (1) (24,283) Equity in earnings (losses) of joint ventures — — — — 2,202 (1) 2,202 Segment EBITDA 87,360 25,793 (4,607) 108,546 Depreciation and amortization (15,727) (7,475) — (23,202) 7,475 (1) (15,727) Operating income (loss) 71,633 18,318 (4,607) 85,344 69,228 Gain (loss) on derivative instruments — (7,264) — (7,264) 7,264 (1) — Other financial income (expense), net (7,195) (8,852) (13,162) (29,209) 8,852 (1) (20,357) Income (loss) before tax 64,438 2,202 (17,769) 48,871 48,871 Income tax expense (4,240) — — (4,240) — (4,240) Net income (loss) $ 60,198 2,202 (17,769) 44,631 — $ 44,631 Preferred unitholders’ interest in net income — — — — 11,017 (2) 11,017 Limited partners’ interest in net income (loss) $ 60,198 2,202 (17,769) 44,631 (11,017) (2) $ 33,614 (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) Allocates the preferred unitholders' interest in net income to the preferred unitholders. As of September 30, 2021 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Vessels, net of accumulated depreciation $ 605,911 234,795 — 840,706 (234,795) (1) $ 605,911 Net investment in financing lease 270,572 — — 270,572 — 270,572 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 4,410 4,410 — 4,410 Total assets 961,783 265,442 34,623 1,261,848 (265,442) (1) 996,406 Accumulated earnings of joint ventures — — 50 50 30,036 (1) 30,086 Expenditures for drydocking 1,590 6 — 1,596 (6) (2) 1,590 Principal repayment financing lease 3,686 — — 3,686 — 3,686 Amortization of above market contract $ 2,060 — — 2,060 — $ 2,060 (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 (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, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations reporting Vessels, net of accumulated depreciation $ 619,620 242,226 — 861,846 (242,226) (1) $ 619,620 Net investment in financing lease 274,257 — — 274,257 — 274,257 Goodwill 251 — — 251 — 251 Advances to joint ventures — — 4,153 4,153 — 4,153 Total assets 969,278 267,003 12,532 1,248,813 (267,003) (1) 981,810 Accumulated earnings of joint ventures — — 50 50 9,640 (1) 9,690 Expenditures for vessels & equipment 8 75 — 83 (75) (2) 8 Expenditures for drydocking — 2 — 2 (2) (2) — Principal repayment financing lease 4,551 — — 4,551 — 4,551 Amortization of above market contract $ 3,052 — — 3,052 — $ 3,052 (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. |
Time charter revenues and rel_2
Time charter revenues and related contract balances (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Time charter revenues and related contract balances | |
Summary of disaggregated revenue | The following tables summarize the disaggregated revenue of the Partnership by segment for the three and nine months ended September 30, 2021 and 2020: Three months ended September 30, 2021 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 21,733 6,475 — 28,208 (6,475) $ 21,733 Time charter service revenues, excluding amortization 14,557 3,677 — 18,234 (3,677) 14,557 Amortization of above market contract intangibles (694) — — (694) — (694) Amortization of deferred revenue for modifications & drydock — 683 — 683 (683) — Total revenues (3) $ 35,596 10,835 — 46,431 (10,835) $ 35,596 Three months ended September 30, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 21,830 6,476 — 28,306 (6,476) $ 21,830 Time charter service revenues, excluding amortization 14,777 3,738 — 18,515 (3,738) 14,777 Amortization of above market contract intangibles (694) — — (694) — (694) Amortization of deferred revenue for modifications & drydock — 682 — 682 (682) — Total revenues (3) $ 35,913 10,896 — 46,809 (10,896) $ 35,913 Nine months ended September 30, 2021 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 64,759 19,215 — 83,974 (19,215) $ 64,759 Time charter service revenues, excluding amortization 42,369 10,315 — 52,684 (10,315) 42,369 Amortization of above market contract intangibles (2,060) — — (2,060) — (2,060) Amortization of deferred revenue for modifications & drydock — 2,049 — 2,049 (2,049) — Total revenues (3) $ 105,068 31,579 — 136,647 (31,579) $ 105,068 Nine months ended September 30, 2020 Joint venture Majority FSRUs Total held (proportional Segment Consolidated (in thousands of U.S. dollars) FSRUs consolidation) Other reporting Eliminations (1) reporting Lease revenues, excluding amortization (2) $ 66,224 19,285 — 85,509 (19,285) $ 66,224 Time charter service revenues, excluding amortization 43,170 12,245 — 55,415 (12,245) 43,170 Amortization of above market contract intangibles (2,358) — — (2,358) — (2,358) Amortization of deferred revenue for modifications & drydock — 2,031 — 2,031 (2,031) — Total revenues (3) $ 107,036 33,561 — 140,597 (33,561) $ 107,036 (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 (loss) of joint ventures on the consolidated income statement. (2) The financing lease revenues comprise about one-fourth of the total lease revenues for the three and nine months ended September 30, 2021 and 2020. (3) 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 components | The following table summarizes the allocation of consolidated receivables between lease and service components: As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Trade receivable for lease $ 5,174 $ 2,608 Trade receivable for time charter services 3,196 1,506 Allowance for expected credit losses (60) (60) Total trade receivable and amounts due from affiliates $ 8,310 $ 4,054 |
Summary of consolidated contract assets, contract liabilities and refund liabilities to customers | The following tables summarize the consolidated contract assets, contract liabilities and refund liabilities to customers for the nine months ended September 30, 2021 and for the year ended December 31, 2020: Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2021 $ 261 $ (891) Additions — (820) Reduction for receivables recorded — 312 Balance September 30, 2021 $ 261 $ (1,399) Services related Contract Refund liability (in thousands of U.S. dollars) asset to charters Balance January 1, 2020 $ 279 $ (125) Additions — (841) Reduction for receivables recorded (18) — Reduction for revenue recognized (excluding amortization) — 10 Reduction for revenue recognized from previous years — 48 Repayments of refund liabilities to charterer — 17 Balance December 31, 2020 $ 261 $ (891) |
Summary of direct financing lease | As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 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 (27,156) (23,471) Allowance for credit loss (96) (96) Net investment in financing lease at period end 270,572 274,257 Less: Current portion (5,308) (4,969) Long term net investment in financing lease $ 265,264 $ 269,288 Net investment in financing lease consists of: Financing lease receivable $ 225,099 $ 231,725 Unguaranteed residual value 45,473 42,532 Net investment in financing lease at period end $ 270,572 $ 274,257 |
Financial income (expense), n_2
Financial income (expense), net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Financial income (expense), net | |
Schedule of components of financial income (expense), net | The components of financial income (expense), net are as follows: Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2021 2020 2021 2020 Interest income $ 166 $ 135 $ 397 $ 470 Interest expense: Interest expense (5,001) (5,388) (15,081) (16,871) Amortization and gain (loss) on cash flow hedge (67) (24) (169) (136) Commitment fees (506) (35) (976) (103) Amortization of debt issuance cost (572) (567) (5,214) (1,737) Total interest expense (6,146) (6,014) (21,440) (18,847) Other items, net: Foreign exchange gain (loss) (18) (157) (41) 56 Bank charges, fees and other (391) (93) (499) (219) Withholding tax on interest expense and other (573) (596) (1,753) (1,817) Total other items, net (982) (846) (2,293) (1,980) Total financial income (expense), net $ (6,962) $ (6,725) $ (23,336) $ (20,357) |
Investments in joint ventures (
Investments in joint ventures (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of equity method investments | As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Accumulated earnings of joint ventures $ 30,086 $ 9,690 |
SRV Joint Gas Ltd and SRV Joint Gas Two Ltd [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of financial statement information of joint ventures on aggregated basis | Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2021 2020 2021 2020 Time charter revenues $ 19,937 $ 19,899 $ 58,211 $ 60,275 Other income 1,732 1,892 4,946 6,847 Total revenues 21,669 21,791 63,157 67,122 Operating expenses (3,864) (3,913) (11,215) (15,535) Depreciation and amortization (5,132) (5,135) (15,400) (15,411) Operating income 12,673 12,743 36,542 36,176 Unrealized gain (loss) on derivative instruments 4,573 4,452 19,987 (14,527) Other financial expense, net (5,288) (5,801) (16,197) (17,706) Income (loss) before tax 11,958 11,394 40,332 3,943 Income tax expense — — — — Net income (loss) $ 11,958 $ 11,394 $ 40,332 $ 3,943 Share of joint ventures owned 50% 50% 50% 50% Share of joint ventures net income (loss) before eliminations 5,979 5,697 20,166 1,971 Eliminations 77 77 231 231 Equity in earnings (losses) of joint ventures $ 6,056 $ 5,774 $ 20,397 $ 2,202 As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Cash and cash equivalents $ 24,408 $ 13,455 Restricted cash 36,241 21,264 Other current assets 639 178 Total current assets 61,288 34,897 Restricted cash 6 14,656 Vessels, net of accumulated depreciation 483,994 499,318 Total long-term assets 484,000 513,974 Current portion of long-term debt 353,245 199,030 Amounts and loans due to owners and affiliates 10,999 7,278 Derivative instruments 13,889 14,687 Refund liabilities 1,636 1,040 Other current liabilities 8,555 8,811 Total current liabilities 388,324 230,846 Long-term debt — 176,385 Loans due to owners and affiliates — 1,737 Derivative instruments 50,429 69,618 Other long-term liabilities 31,959 36,040 Total long-term liabilities 82,388 283,780 Net assets (liabilities) $ 74,576 $ 34,245 Share of joint ventures owned 50% 50% Share of joint ventures net assets (liabilities) before eliminations 37,288 17,123 Eliminations (7,202) (7,433) Accumulated earnings (losses) of joint ventures $ 30,086 $ 9,690 |
Advances to joint ventures (Tab
Advances to joint ventures (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Advances to joint ventures | |
Schedule of investments in and advances to affiliates | As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Current portion of advances to joint ventures $ 4,410 $ 3,284 Long-term advances to joint ventures — 869 Advances/shareholder loans to joint ventures $ 4,410 $ 4,153 |
Long-term debt (Tables)
Long-term debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Long-term debt | |
Schedule of long-term debt | As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Lampung facility: Export credit tranche $ 68,159 $ 79,324 FSRU tranche 15,504 18,635 $385 million facility: Commercial tranche 216,507 230,705 Export credit tranche 39,500 44,500 Revolving credit tranche 63,050 48,300 Outstanding principal 402,720 421,464 Lampung facility unamortized debt issuance cost (2,154) (2,999) $385 million facility unamortized debt issuance costs (3,185) (3,876) Total debt 397,381 414,589 Less: Current portion of long-term debt (55,987) (59,119) Long-term debt $ 341,394 $ 355,470 |
Accrued liabilities and payab_2
Accrued liabilities and payables (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accrued liabilities and payables | |
Schedule of accrued liabilities and payables | As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Accrued operating and administrative expenses $ 4,277 $ 3,042 Accrued interest 2,394 2,641 Current tax payable 1,149 469 Current portion – provision for tax uncertainty (note 6) 2,641 — Refund liabilities (note 4) 1,399 891 Lease liability 64 39 Other accruals and payables 800 150 Total accrued liabilities and other payables $ 12,724 $ 7,232 |
Related party transactions (Tab
Related party transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Schedule of related party transactions | Amounts due from affiliates As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Amounts due from affiliates $ 3,880 $ 3,639 Amounts due to owners and affiliates As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Amounts due to owners and affiliates $ 3,291 $ 2,600 Revolving credit facility due to owners and affiliates As of September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Revolving credit facility due to owners and affiliates - non-current portion $ 24,681 $ 18,465 |
Hoegh LNG and Subsidiaries [Member] | |
Schedule of related party transactions | Related party amounts included in the consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 or in the consolidated balance sheets as of September 30, 2021 and December 31, 2020 are as follows: Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2021 2020 2021 2020 Revenues Time charter revenue Höegh Gallant $ 10,950 $ 10,950 $ 32,493 $ 34,365 Operating expenses Vessel operating expenses (2) (3,191) (5,497) (11,440) (15,028) Hours, travel expense and overhead (3) and Board of Directors’ fees (4) (1,004) (838) (3,366) (2,967) Financial (income) expense Interest income from joint ventures (5) 124 82 257 239 Interest expense and commitment fees to Höegh LNG (6) (258) (95) (685) (291) Total $ 6,621 $ 4,602 $ 17,259 $ 16,318 As of Balance sheet September 30, December 31, (in thousands of U.S. dollars) 2021 2020 Equity Contribution from Höegh LNG (7) $ 315 $ 11,850 Repayment of indemnification received from Höegh LNG (8) — — Issuance of units for Board of Directors’ fees (4) 211 181 Other and contribution from owner (9) 15 109 Total $ 541 $ 12,140 1) Time charter revenue Höegh Gallant: Subsidiaries of Höegh LNG have leased the Höegh Gallant . 2) Vessel operating expenses: Subsidiaries of Höegh LNG provide ship management of vessels, including crews and the provision of all other services and supplies. 3) Hours, travel expenses and overhead: Subsidiaries of Höegh LNG provide management, accounting, bookkeeping and administrative support under administrative service agreements. These services are charged 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. 4) Board of Directors’ fees: Board of Directors' fees were $448 and $412 for the nine months ended September 30, 2021 and 2020 respectively. Part of the compensation is awarded as common units of the Partnership. Effective June 7, 2021, a total of 11,960 common units were awarded to non-employee directors as compensation of $203 for part of directors' fees for 2021 under the Höegh LNG Partners LP Long Term Incentive Plan. 5) 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. 6) Interest expense to Höegh LNG and affiliates: Höegh LNG and its affiliates provided an $85 million revolving credit facility for general partnership purposes. The Partnership incurred interest expense on the drawn balance. 7) 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. 8) 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 26, 2020, March 21, 2019 and September 14, 2018, the Partnership granted or extended the terms for 8,100 , 10,917 and 28,018 phantom units, respectively, to the former Chief Executive Officer and Chief Financial Officer of the Partnership. Related expenses are recorded over the vesting period as an administrative expense and as an increase in equity. On August 6, 2020, the Partnership announced that the Partnership's former Chief Executive Officer and Chief Financial Officer resigned which resulted in 15,378 of the phantom units not vesting, resulting in a reduction in administrative expense and equity for the forfeited units. The remaining unvested phantom units vest in November 2021. |
Financial instruments (Tables)
Financial instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Financial instruments | |
Schedule of estimated fair value and carrying value of assets and liabilities | As of As of September 30, 2021 December 31, 2020 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 $ 45,373 45,373 31,770 $ 31,770 Restricted cash 1 15,358 15,358 19,293 19,293 Derivative instruments 2 (17,228) (17,228) (26,475) (26,475) Other: Amounts due from affiliate 2 3,880 3,880 3,639 3,639 Advances (shareholder loans) to joint ventures 2 4,410 4,442 4,153 4,305 Current amounts due to owners and affiliates 2 (3,291) (3,291) (2,600) (2,600) Lampung facility 2 (81,509) (83,547) (94,960) (99,295) $385 million facility 2 (315,872) (317,573) (319,629) (323,342) Revolving credit facility due to owners and affiliates 2 $ (24,681) (23,464) (18,465) $ (16,987) |
Summary of Financing receivables and net investment in financing lease | As of Class Credit Quality September 30, December 31, (in thousands of U.S. dollars) Year Indicator Grade 2021 2020 Advances/shareholder loans to joint ventures 2006 Collection experience Performing $ 4,410 $ 4,153 Net investment in financing lease 2014 Credit Information Performing $ 270,572 $ 274,257 |
Risk management and concentra_2
Risk management and concentrations of risk (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Risk management and concentrations of risk | |
Schedule of interest rate swap agreements | As of September 30, 2021, 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 $ 68,159 $ (3,427) Sep 2026 2.800% $385 million facility swaps (2) LIBOR $ 53,260 $ (3,739) Jan 2026 2.941% $385 million facility swaps (2) LIBOR $ 53,260 $ (3,473) Oct 2025 2.838% $385 million facility swaps (2) LIBOR $ 53,260 $ (3,370) Jan 2026 2.735% $385 million facility swaps (2) LIBOR $ 53,260 $ (3,219) 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 principal 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. All derivatives are designated as cash flow hedging instruments. Fair value of derivative instruments 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 September 30, 2021 Interest rate swaps $ — $ — $ (6,092) $ (11,136) As of December 31, 2020 Interest rate swaps $ — $ — $ (6,945) $ (19,530) |
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 interest expense and income tax expense in the consolidated statements of income which are the same lines as the earnings effects of the hedged item for the three and nine months ended September 30, 2021 and 2020. Effect of cash flow hedge accounting on the consolidated statement of income Three months ended Nine months ended September 30, 2021 September 30, 2021 Interest Income tax Interest Income tax (in thousands of U.S. dollars) expense benefit expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (2,034) $ — $ (6,524) $ — Amortization of amount excluded from hedge effectiveness 189 — 599 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (256) 43 (768) 160 Total gains (losses) on derivative instruments $ (2,101) $ 43 $ (6,693) $ 160 Three months ended Nine months ended September 30, 2020 September 30, 2020 Interest Income tax Interest Income tax (in thousands of U.S. dollars) expense benefit expense benefit Gain (loss) on interest rate swaps in cash flow hedging relationships: Reclassification from accumulated other comprehensive income included in hedge effectiveness $ (1,906) $ — $ (3,716) $ — Amortization of amount excluded from hedge effectiveness 232 — 632 — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach (256) 61 (768) 190 Total gains (losses) on derivative instruments $ (1,930) $ 61 $ (3,852) $ 190 |
Schedule of effect of cash flow hedge accounting on accumulated OCI and earnings | 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: Interest Tax (in thousands of U.S. dollars) (losses) (expense) Net of tax expense benefit Accumulated OCI as of December 31, 2020 $ (29,486) (86) $ (29,572) Effective portion of unrealized loss on cash flow hedge 2,124 — 2,124 Reclassification from accumulated other comprehensive income included in hedge effectiveness 6,524 — 6,524 (6,524) — Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach 768 (160) 608 (768) 160 Other comprehensive income for period 9,416 (160) 9,256 Accumulated OCI as of September 30, 2021 $ (20,070) (246) $ (20,316) Gain (loss) reclassified to earnings $ (7,292) $ 160 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 period ended December 31, 2020. 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: Interest Tax (in thousands of U.S. dollars) (losses) (expense) Net of tax expense benefit Accumulated OCI as of December 31, 2019 $ (18,119) 176 $ (17,943) Initial value of interest rate swap to be recognized in earnings on amortization approach (18,331) — (18,331) Effective portion of unrealized loss on cash flow hedge 3,716 — 3,716 (3,716) — Reclassification from accumulated other comprehensive income included in hedge effectiveness 768 (190) 578 (768) 190 Other comprehensive income for period (13,847) (190) (14,037) Accumulated OCI as of September 30, 2020 $ (31,966) (14) $ (31,980) Gain (loss) reclassified to earnings $ (4,484) $ 190 Other comprehensive income for the period from October 1, 2020 to December 31, 2020 2,480 (72) 2,408 Accumulated OCI as of December 31, 2020 $ (29,486) (86) $ (29,572) |
Supplemental cash flow inform_2
Supplemental cash flow information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental cash flow information | |
Schedule of supplemental cash flow information | Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars) 2021 2020 2021 2020 Supplemental disclosure of non-cash financing activities Non-cash indemnifications received $ — $ — $ 315 $ 8,600 |
Issuance of common units and _2
Issuance of common units and Series A preferred units (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Issuance of common units and Series A preferred units | |
Schedule of net proceeds for units issued | As of September 30, 2021 Series A Common preferred (in thousands of U.S. dollars) units units Total Gross proceeds for units issued $ 829 8,467 $ 9,296 Less: Commissions (11) (149) (160) Net proceeds for units issued $ 818 8,318 $ 9,136 |
Common and preferred units (Tab
Common and preferred units (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Common and preferred units | |
Schedule of movements in the number of common and preferred units | The following table shows the movements in the number of common units and preferred units from December 31, 2019 until September 30, 2021: Common 8,75% Common Units Series A Units Höegh Preferred (in units) Public LNG Units December 31, 2019 18,028,786 15,257,498 6,625,590 September 4, 2020; Awards to non-employee directors as compensation for directors' fees 3,882 — — September 15, 2020; Awards to non-employee directors as compensation for directors' fees 7,764 — — October 23, 2020; Awards to non-employee directors as compensation for directors' fees 3,882 — — Phantom units issued to CEO/CFO during 2020 6,627 — — ATM program (from January 1, 2020 to December 31, 2020) — — 126,743 December 31, 2020 18,050,941 15,257,498 6,752,333 ATM program (from January 1, 2021 to September 30, 2021) 52,603 — 336,992 June 21, 2021; Awards to non-employee directors as compensation for directors' fees 7,176 — — July 12, 2021; Awards to non-employee directors as compensation for directors' fees 2,392 — — July 16, 2021; Awards to non-employee directors as compensation for directors' fees 2,392 — — September 30, 2021 18,115,504 15,257,498 7,089,325 |
Earning per unit and cash dis_2
Earning per unit and cash distributions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earning per unit and cash distributions | |
Schedule of calculation of basic and diluted earnings per unit | Three months ended Nine months ended September 30, September 30, (in thousands of U.S. dollars, except per unit numbers) 2021 2020 2021 2020 Net income $ 17,359 $ 19,475 $ 43,836 $ 44,631 Adjustment for: Preferred unitholders’ interest in net income 3,877 3,681 11,631 11,017 Limited partners' interest in net income 13,482 15,794 32,205 33,614 Less: Dividends paid or to be paid (1) (334) (15,052) (15,747) (45,143) Under (over) distributed earnings 13,148 742 16,458 (11,529) Under (over) distributed earnings attributable to: Common units public 7,137 402 8,934 (6,246) Common units Höegh LNG 6,011 340 7,524 (5,283) $ 13,148 $ 742 $ 16,458 $ (11,529) Basic weighted average units outstanding (in thousands) Common units public 18,115 18,031 18,102 18,030 Common units Höegh LNG 15,257 15,257 15,257 15,257 Diluted weighted average units outstanding (in thousands) Common units public 18,122 18,037 18,119 18,037 Common units Höegh LNG 15,257 15,257 15,257 15,257 Basic and diluted earnings per unit (2): Common unit public $ 0.40 $ 0.46 $ 0.95 $ 0.97 Common unit Höegh LNG (3) $ 0.40 $ 0.49 $ 0.98 $ 1.05 (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 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. Effective March 21, 2019, the Partnership granted 10,917 phantom units to the CEO/CFO of the Partnership. One-third of such phantom units vest as of November 30, 2019, 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. On September 14, 2018, the plan was amended to extend the terms and conditions of 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. As a result of the resignation of the former CEO/CFO of the Partnership in August 2020, a total of 15,378 of the unvested phantom units terminated. (3) Includes total amounts attributable to incentive distributions rights of $0 and $800 for the three and nine months ended September 30, 2021, respectively. For the three and nine months ended September 30, 2021, the full amount was attributable to common units owned by Höegh LNG. For the three and nine months ended September 30, 2020, respectively, $400 and $1,198 were attributed to common units owned by Höegh LNG. |
Description of business - Entit
Description of business - Entities (Details) | 9 Months Ended | |
Sep. 30, 2021 | ||
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 | [1] |
Purpose | Owns PGN FSRU Lampung | [1] |
SRV Joint Gas Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cayman Islands | [2] |
Purpose | Owns Neptune | [2] |
SRV Joint Gas Two Ltd [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Jurisdiction of Incorporation or Registration | Cayman Islands | [2] |
Purpose | Owns Cape Ann | [2] |
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 [Member] | ||
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 | |
[1] | PT Hoegh LNG Lampung is a variable interest entity, which is 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. |
Description of business - Addit
Description of business - Additional information (Details) | 9 Months Ended |
Sep. 30, 2021 | |
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 O.S.K. Lines, Ltd. and Tokyo LNG Tanker Co. [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Hoegh LNG FSRU IV Ltd [Member] | |
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 [Member] | Maximum [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Lease Expiration Term | 15 years |
Hoegh LNG FSRU IV Ltd [Member] | Minimum [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Lease Expiration Term | 10 years |
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% |
Significant accounting polici_3
Significant accounting policies (Details) - USD ($) $ in Millions | 9 Months Ended | ||||||||
Sep. 30, 2021 | Jan. 01, 2023 | Jun. 01, 2022 | Nov. 30, 2021 | Sep. 29, 2021 | May 07, 2021 | Dec. 31, 2020 | May 28, 2019 | Aug. 31, 2014 | |
SRV Joint Gas Ltd [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Advances to Affiliate | $ 3.5 | $ 3.3 | |||||||
SRV Joint Gas Two Ltd [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Advances to Affiliate | 0.9 | 0.9 | |||||||
Neptune facility | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 297.4 | ||||||||
Cape Ann facility | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300 | ||||||||
$385 million facility [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385 | ||||||||
Commercial tranche | Lampung facility | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 46.4 | ||||||||
Revolving credit facility | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85 | $ 85 | $ 85 | $ 85 | |||||
Export credit tranche | Lampung facility | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 178.6 | ||||||||
PT Hoegh LNG Lampung [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Statutory Reserve on Paid Up Capital Percentage | 20.00% | ||||||||
Hoegh LNG Cyprus Limited [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | ||||||||
Hoegh LNG Colombia Holding Ltd [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | ||||||||
Variable Interest Entity, Primary Beneficiary [Member] | SRV Joint Gas Ltd [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Net assets (liabilities) | $ 15.7 | 5.5 | |||||||
Variable Interest Entity, Primary Beneficiary [Member] | SRV Joint Gas Two Ltd [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Net assets (liabilities) | $ 14.4 | $ 4.2 |
Segment information - Additiona
Segment information - Additional information (Details) $ in Millions | 9 Months Ended | |||||||
Sep. 30, 2021USD ($)segment | Jan. 01, 2023USD ($) | May 07, 2021USD ($) | Mar. 12, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020 | May 28, 2019USD ($) | Aug. 31, 2014USD ($) | |
Number of Operating Segments | segment | 2 | |||||||
Revolving credit facility | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85 | $ 85 | $ 85 | $ 85 | ||||
Revolving credit facility | Hoegh LNG [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85 | $ 85 | $ 85 | |||||
$385 million facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 385 | |||||||
Neptune and the Cape Ann | ||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Segment information - Results f
Segment information - Results for the segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Time charter revenues | $ 35,596 | $ 35,913 | $ 105,068 | $ 107,036 | |
Total revenues | 35,596 | 35,913 | 105,068 | 107,036 | |
Operating expenses | (9,418) | (8,418) | (27,218) | (24,283) | |
Equity in earnings (losses) of joint ventures | 6,056 | 5,774 | 20,397 | 2,202 | |
Depreciation and amortization | (5,096) | (5,210) | (15,318) | (15,727) | |
Operating income (loss) | 27,138 | 28,059 | 82,929 | 69,228 | |
Gain (loss) on derivative instruments | 0 | 0 | 0 | 0 | |
Other financial income (expense), net | (6,962) | (6,725) | (23,336) | (20,357) | |
Income (loss) before tax | 20,176 | 21,334 | 59,593 | 48,871 | |
Income tax expense | (2,817) | (1,859) | (15,757) | (4,240) | |
Net income (loss) | 17,359 | 19,475 | 43,836 | 44,631 | |
Preferred unitholders' interest in net income | 3,877 | 3,681 | 11,631 | 11,017 | |
Limited partners' interest in net income (loss) | 13,482 | 15,794 | 32,205 | 33,614 | |
Vessels, net of accumulated depreciation | 605,911 | 605,911 | $ 619,620 | ||
Net investment in financing lease | 270,572 | 270,572 | 274,257 | ||
Goodwill | 251 | 251 | 251 | ||
Advances to joint ventures | 4,410 | 4,410 | 4,153 | ||
Total assets | 996,406 | 996,406 | 981,810 | ||
Accumulated earnings of joint ventures | 30,086 | 30,086 | 9,690 | ||
Expenditures for vessels & equipment | 8 | ||||
Expenditures for drydocking | 1,590 | 1,590 | |||
Principal repayment financing lease | 3,686 | 3,686 | 4,551 | ||
Amortization of above market contract | 694 | 694 | 2,060 | 2,358 | 3,052 |
Majority held FSRUs [Member] | |||||
Time charter revenues | 35,596 | 35,913 | 105,068 | 107,036 | |
Total revenues | 35,596 | 35,913 | 105,068 | 107,036 | |
Operating expenses | (7,332) | (6,831) | (21,590) | (19,676) | |
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | 28,264 | 29,082 | 83,478 | 87,360 | |
Depreciation and amortization | (5,096) | (5,210) | (15,318) | (15,727) | |
Operating income (loss) | 23,168 | 23,872 | 68,160 | 71,633 | |
Gain (loss) on derivative instruments | 0 | 0 | 0 | 0 | |
Other financial income (expense), net | (2,935) | (2,415) | (11,140) | (7,195) | |
Income (loss) before tax | 20,233 | 21,457 | 57,020 | 64,438 | |
Income tax expense | (2,817) | (1,859) | (15,757) | (4,240) | |
Net income (loss) | 17,416 | 19,598 | 41,263 | 60,198 | |
Preferred unitholders' interest in net income | 0 | 0 | 0 | 0 | |
Limited partners' interest in net income (loss) | 17,416 | 19,598 | 41,263 | 60,198 | |
Vessels, net of accumulated depreciation | 605,911 | 605,911 | 619,620 | ||
Net investment in financing lease | 270,572 | 270,572 | 274,257 | ||
Goodwill | 251 | 251 | 251 | ||
Advances to joint ventures | 0 | 0 | 0 | ||
Total assets | 961,783 | 961,783 | 969,278 | ||
Accumulated earnings of joint ventures | 0 | 0 | 0 | ||
Expenditures for vessels & equipment | 8 | ||||
Expenditures for drydocking | 1,590 | 1,590 | 0 | ||
Principal repayment financing lease | 3,686 | 3,686 | 4,551 | ||
Amortization of above market contract | 694 | 694 | 2,060 | 2,358 | 3,052 |
Joint venture FSRUs [Member] | |||||
Time charter revenues | 10,835 | 10,896 | 31,579 | 33,561 | |
Total revenues | 10,835 | 10,896 | 31,579 | 33,561 | |
Operating expenses | (1,932) | (1,957) | (5,608) | (7,768) | |
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | 8,903 | 8,939 | 25,971 | 25,793 | |
Depreciation and amortization | (2,489) | (2,490) | (7,469) | (7,475) | |
Operating income (loss) | 6,414 | 6,449 | 18,502 | 18,318 | |
Gain (loss) on derivative instruments | 2,287 | 2,226 | 9,994 | (7,264) | |
Other financial income (expense), net | (2,645) | (2,901) | (8,099) | (8,852) | |
Income (loss) before tax | 6,056 | 5,774 | 20,397 | 2,202 | |
Income tax expense | 0 | 0 | 0 | 0 | |
Net income (loss) | 6,056 | 5,774 | 20,397 | 2,202 | |
Preferred unitholders' interest in net income | 0 | 0 | 0 | 0 | |
Limited partners' interest in net income (loss) | 6,056 | 5,774 | 20,397 | 2,202 | |
Vessels, net of accumulated depreciation | 234,795 | 234,795 | 242,226 | ||
Net investment in financing lease | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Advances to joint ventures | 0 | 0 | 0 | ||
Total assets | 265,442 | 265,442 | 267,003 | ||
Accumulated earnings of joint ventures | 0 | 0 | 0 | ||
Expenditures for vessels & equipment | 75 | ||||
Expenditures for drydocking | 6 | 6 | 2 | ||
Principal repayment financing lease | 0 | 0 | 0 | ||
Amortization of above market contract | 0 | 0 | |||
Other Segments [Member] | |||||
Time charter revenues | 0 | 0 | 0 | 0 | |
Total revenues | 0 | 0 | 0 | 0 | |
Operating expenses | (2,086) | (1,587) | (5,628) | (4,607) | |
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | (2,086) | (1,587) | (5,628) | (4,607) | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income (loss) | (2,086) | (1,587) | (5,628) | (4,607) | |
Gain (loss) on derivative instruments | 0 | 0 | 0 | 0 | |
Other financial income (expense), net | (4,027) | (4,310) | (12,196) | (13,162) | |
Income (loss) before tax | (6,113) | (5,897) | (17,824) | (17,769) | |
Income tax expense | 0 | 0 | 0 | 0 | |
Net income (loss) | (6,113) | (5,897) | (17,824) | (17,769) | |
Preferred unitholders' interest in net income | 0 | 0 | 0 | 0 | |
Limited partners' interest in net income (loss) | (6,113) | (5,897) | (17,824) | (17,769) | |
Vessels, net of accumulated depreciation | 0 | 0 | 0 | ||
Net investment in financing lease | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Advances to joint ventures | 4,410 | 4,410 | 4,153 | ||
Total assets | 34,623 | 34,623 | 12,532 | ||
Accumulated earnings of joint ventures | 50 | 50 | 50 | ||
Expenditures for vessels & equipment | 0 | ||||
Expenditures for drydocking | 0 | 0 | 0 | ||
Principal repayment financing lease | 0 | 0 | 0 | ||
Amortization of above market contract | 0 | 0 | |||
Total Segment Reporting [Member] | |||||
Time charter revenues | 46,431 | 46,809 | 136,647 | 140,597 | |
Total revenues | 46,431 | 46,809 | 136,647 | 140,597 | |
Operating expenses | (11,350) | (10,375) | (32,826) | (32,051) | |
Equity in earnings (losses) of joint ventures | 0 | 0 | 0 | 0 | |
Segment EBITDA | 35,081 | 36,434 | 103,821 | 108,546 | |
Depreciation and amortization | (7,585) | (7,700) | (22,787) | (23,202) | |
Operating income (loss) | 27,496 | 28,734 | 81,034 | 85,344 | |
Gain (loss) on derivative instruments | 2,287 | 2,226 | 9,994 | (7,264) | |
Other financial income (expense), net | (9,607) | (9,626) | (31,435) | (29,209) | |
Income (loss) before tax | 20,176 | 21,334 | 59,593 | 48,871 | |
Income tax expense | (2,817) | (1,859) | (15,757) | (4,240) | |
Net income (loss) | 17,359 | 19,475 | 43,836 | 44,631 | |
Preferred unitholders' interest in net income | 0 | 0 | 0 | 0 | |
Limited partners' interest in net income (loss) | 17,359 | 19,475 | 43,836 | 44,631 | |
Vessels, net of accumulated depreciation | 840,706 | 840,706 | 861,846 | ||
Net investment in financing lease | 270,572 | 270,572 | 274,257 | ||
Goodwill | 251 | 251 | 251 | ||
Advances to joint ventures | 4,410 | 4,410 | 4,153 | ||
Total assets | 1,261,848 | 1,261,848 | 1,248,813 | ||
Accumulated earnings of joint ventures | 50 | 50 | 50 | ||
Expenditures for vessels & equipment | 83 | ||||
Expenditures for drydocking | 1,596 | 1,596 | 2 | ||
Principal repayment financing lease | 3,686 | 3,686 | 4,551 | ||
Amortization of above market contract | 2,060 | 3,052 | |||
Eliminations [Member] | |||||
Time charter revenues | (10,835) | (10,896) | (31,579) | (33,561) | |
Total revenues | (10,835) | (10,896) | (31,579) | (33,561) | |
Operating expenses | 1,932 | 1,957 | 5,608 | 7,768 | |
Equity in earnings (losses) of joint ventures | 6,056 | 5,774 | 20,397 | 2,202 | |
Depreciation and amortization | 2,489 | 2,490 | 7,469 | 7,475 | |
Gain (loss) on derivative instruments | (2,287) | (2,226) | (9,994) | 7,264 | |
Other financial income (expense), net | 2,645 | 2,901 | 8,099 | 8,852 | |
Income tax expense | 0 | 0 | 0 | 0 | |
Net income (loss) | 0 | 0 | 0 | 0 | |
Preferred unitholders' interest in net income | 3,877 | 3,681 | 11,631 | 11,017 | |
Limited partners' interest in net income (loss) | (3,877) | $ (3,681) | (11,631) | $ (11,017) | |
Vessels, net of accumulated depreciation | (234,795) | (234,795) | (242,226) | ||
Net investment in financing lease | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Advances to joint ventures | 0 | 0 | 0 | ||
Total assets | (265,442) | (265,442) | (267,003) | ||
Accumulated earnings of joint ventures | 30,036 | 30,036 | 9,640 | ||
Expenditures for vessels & equipment | (75) | ||||
Expenditures for drydocking | (6) | (6) | (2) | ||
Principal repayment financing lease | $ 0 | 0 | 0 | ||
Amortization of above market contract | $ 0 | $ 0 |
Time charter revenues and rel_3
Time charter revenues and related contract balances - Disaggregated revenue by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Lease revenues, excluding amortization | $ 21,733 | $ 21,830 | $ 64,759 | $ 66,224 | |
Time charter service revenues, excluding amortization | 14,557 | 14,777 | 42,369 | 43,170 | |
Amortization of above market contract intangibles | (694) | (694) | (2,060) | (2,358) | $ (3,052) |
Total revenues | 35,596 | 35,913 | 105,068 | 107,036 | |
Total segment reporting [Member] | |||||
Lease revenues, excluding amortization | 28,208 | 28,306 | 83,974 | 85,509 | |
Time charter service revenues, excluding amortization | 18,234 | 18,515 | 52,684 | 55,415 | |
Amortization of above market contract intangibles | (694) | (694) | (2,060) | (2,358) | |
Amortization of deferred revenue for modifications & drydock | 683 | 682 | 2,049 | 2,031 | |
Total revenues | 46,431 | 46,809 | 136,647 | 140,597 | |
Majority held FSRUs [Member] | |||||
Lease revenues, excluding amortization | 21,733 | 21,830 | 64,759 | 66,224 | |
Time charter service revenues, excluding amortization | 14,557 | 14,777 | 42,369 | 43,170 | |
Amortization of above market contract intangibles | (694) | (694) | (2,060) | (2,358) | (3,052) |
Total revenues | 35,596 | 35,913 | 105,068 | 107,036 | |
Joint venture FSRUs [Member] | |||||
Lease revenues, excluding amortization | 6,475 | 6,476 | 19,215 | 19,285 | |
Time charter service revenues, excluding amortization | 3,677 | 3,738 | 10,315 | 12,245 | |
Amortization of above market contract intangibles | 0 | 0 | |||
Amortization of deferred revenue for modifications & drydock | 683 | 682 | 2,049 | 2,031 | |
Total revenues | 10,835 | 10,896 | 31,579 | 33,561 | |
Other Segments [Member] | |||||
Amortization of above market contract intangibles | 0 | 0 | |||
Total revenues | 0 | 0 | 0 | 0 | |
Eliminations [Member] | |||||
Lease revenues, excluding amortization | (6,475) | (6,476) | (19,215) | (19,285) | |
Time charter service revenues, excluding amortization | (3,677) | (3,738) | (10,315) | (12,245) | |
Amortization of above market contract intangibles | 0 | $ 0 | |||
Amortization of deferred revenue for modifications & drydock | (683) | (682) | (2,049) | (2,031) | |
Total revenues | $ (10,835) | $ (10,896) | $ (31,579) | $ (33,561) |
Time charter revenues and rel_4
Time charter revenues and related contract balances - Allocation of consolidated receivables between lease and service (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Time charter revenues and related contract balances | |||
Trade receivable for lease | $ 5,174 | $ 5,174 | $ 2,608 |
Trade receivable for time charter services | 3,196 | 3,196 | 1,506 |
Allowance for expected credit losses | (60) | (60) | (60) |
Total trade receivable and amounts due from affiliates | 8,310 | 8,310 | 4,054 |
Impairment losses for trade receivables | $ 0 | $ 0 | $ 0 |
Time charter revenues and rel_5
Time charter revenues and related contract balances - Consolidated contract assets, contract liabilities and refund liabilities (Details) - Time Charter Services [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Beginning Balance | $ 261 | $ 279 |
Reduction for receivables recorded | (18) | |
Ending Balance | 261 | 261 |
Beginning Balance | (891) | (125) |
Additions | (820) | (841) |
Reduction for receivables recorded | 312 | |
Reduction for revenue recognized (excluding amortization) | 10 | |
Reduction for revenue recognized from previous years | 48 | |
Repayments of refund liabilities to charterer | 17 | |
Ending Balance | $ (1,399) | $ (891) |
Time charter revenues and rel_6
Time charter revenues and related contract balances - Direct financing lease receivable and unguaranteed residual value (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Direct 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 | (27,156) | (23,471) |
Allowance for credit loss | (96) | (96) |
Net investment in financing lease at period end | 270,572 | 274,257 |
Less: Current portion | (5,308) | (4,969) |
Long term net investment in financing lease | 265,264 | 269,288 |
Net investment in financing lease consists of: | ||
Financing lease receivable | 225,099 | 231,725 |
Unguaranteed residual value | 45,473 | 42,532 |
Net investment in financing lease at period end | 270,572 | 274,257 |
Allowance for expected credit losses | $ 0 | $ 0 |
Financial income (expense), n_3
Financial income (expense), net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financial income (expense), net | ||||
Interest income | $ 166 | $ 135 | $ 397 | $ 470 |
Interest expense: | ||||
Interest expense | (5,001) | (5,388) | (15,081) | (16,871) |
Amortization and gain (loss) on cash flow hedge | (67) | (24) | (169) | (136) |
Commitment fees | (506) | (35) | (976) | (103) |
Amortization of debt issuance cost | (572) | (567) | (5,214) | (1,737) |
Interest expense | (6,146) | (6,014) | (21,440) | (18,847) |
Other items, net: | ||||
Foreign exchange gain (loss) | (18) | (157) | (41) | 56 |
Bank charges, fees and other | (391) | (93) | (499) | (219) |
Withholding tax on interest expense and other | (573) | (596) | (1,753) | (1,817) |
Total other items, net | (982) | (846) | (2,293) | (1,980) |
Total financial income (expense), net | (6,962) | $ (6,725) | (23,336) | $ (20,357) |
Interest expense | $ 385,000 | $ 385,000 |
Income tax (Details)
Income tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 60 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Income tax | ||||||
Income tax benefit (expense) | $ 2,817 | $ 1,859 | $ 15,757 | $ 4,240 | ||
Increase of Income tax expense | 900 | 11,500 | ||||
Amount of additional tax expense in current income taxes | 2,700 | 2,700 | ||||
Non-cash income tax expense | 225 | $ 215 | $ 657 | $ 638 | ||
Percentage of accrued interest disallowed | 100.00% | |||||
Potential future obligation | $ 8,400 | $ 3,000 | ||||
Increases in uncertain tax positions | 500 | 8,400 | ||||
Unrecognized tax benefits | $ 11,100 | $ 11,100 | $ 2,700 |
Investments in joint ventures_2
Investments in joint ventures (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Investments in joint ventures | ||
Accumulated earnings of joint ventures | $ 30,086 | $ 9,690 |
Investments in joint ventures -
Investments in joint ventures - Combined joint ventures on an aggregated basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Time charter revenues | $ 35,596 | $ 35,913 | $ 105,068 | $ 107,036 | ||
Total revenues | 35,596 | 35,913 | 105,068 | 107,036 | ||
Operating expenses | (9,418) | (8,418) | (27,218) | (24,283) | ||
Depreciation and amortization | (5,096) | (5,210) | (15,318) | (15,727) | ||
Operating income | 27,138 | 28,059 | 82,929 | 69,228 | ||
Unrealized gain (loss) on derivative instruments | 0 | 0 | 0 | 0 | ||
Income (loss) before tax | 20,176 | 21,334 | 59,593 | 48,871 | ||
Income tax expense | 2,817 | 1,859 | 15,757 | 4,240 | ||
Net income (loss) | 17,359 | 19,475 | 43,836 | 44,631 | ||
Equity in earnings (losses) of joint ventures | 6,056 | 5,774 | 20,397 | 2,202 | ||
Cash and cash equivalents | 45,373 | 25,048 | 45,373 | 25,048 | $ 31,770 | $ 39,126 |
Restricted cash | 6,215 | 6,524 | 6,215 | 6,524 | 7,198 | 8,066 |
Total current assets | 72,856 | 72,856 | 55,158 | |||
Restricted cash | 9,143 | 12,210 | 9,143 | 12,210 | 12,095 | $ 12,627 |
Vessels, net of accumulated depreciation | 605,911 | 605,911 | 619,620 | |||
Total long-term assets | 923,550 | 923,550 | 926,652 | |||
Current portion of long-term debt | 55,987 | 55,987 | 59,119 | |||
Derivative instruments | 6,092 | 6,092 | 6,945 | |||
Refund liabilities | 1,399 | 1,399 | 891 | |||
Total current liabilities | 79,889 | 79,889 | 77,808 | |||
Long-term debt | 341,394 | 341,394 | 355,470 | |||
Derivative instruments | 11,136 | 11,136 | 19,530 | |||
Other long-term liabilities | 131 | 131 | 124 | |||
Total long-term liabilities | 402,556 | 402,556 | $ 410,687 | |||
Srv Joint Gas Limited And Srv Joint Gas Two Limited [Member] | ||||||
Time charter revenues | 19,937 | 19,899 | 58,211 | 60,275 | ||
Other income | 1,732 | 1,892 | 4,946 | 6,847 | ||
Total revenues | 21,669 | 21,791 | 63,157 | 67,122 | ||
Operating expenses | (3,864) | (3,913) | (11,215) | (15,535) | ||
Depreciation and amortization | (5,132) | (5,135) | (15,400) | (15,411) | ||
Operating income | 12,673 | 12,743 | 36,542 | 36,176 | ||
Unrealized gain (loss) on derivative instruments | 4,573 | 4,452 | 19,987 | (14,527) | ||
Other financial expense, net | (5,288) | (5,801) | (16,197) | (17,706) | ||
Income (loss) before tax | 11,958 | 11,394 | 40,332 | 3,943 | ||
Net income (loss) | $ 11,958 | $ 11,394 | $ 40,332 | $ 3,943 | ||
Share of joint ventures owned | 50.00% | 50.00% | 50.00% | 50.00% | ||
Share of joint ventures net income (loss) before eliminations | $ 5,979 | $ 5,697 | $ 20,166 | $ 1,971 | ||
Eliminations | 77 | 77 | 231 | 231 | ||
Equity in earnings (losses) of joint ventures | 6,056 | 5,774 | 20,397 | 2,202 | ||
Cash and cash equivalents | 24,408 | 13,455 | 24,408 | 13,455 | ||
Restricted cash | 36,241 | 21,264 | 36,241 | 21,264 | ||
Other current assets | 639 | 178 | 639 | 178 | ||
Total current assets | 61,288 | 34,897 | 61,288 | 34,897 | ||
Restricted cash | 6 | 14,656 | 6 | 14,656 | ||
Vessels, net of accumulated depreciation | 483,994 | 499,318 | 483,994 | 499,318 | ||
Total long-term assets | 484,000 | 513,974 | 484,000 | 513,974 | ||
Current portion of long-term debt | 353,245 | 199,030 | 353,245 | 199,030 | ||
Amounts and loans due to owners and affiliates | 10,999 | 7,278 | 10,999 | 7,278 | ||
Derivative instruments | 13,889 | 14,687 | 13,889 | 14,687 | ||
Refund liabilities | 1,636 | 1,040 | 1,636 | 1,040 | ||
Other current liabilities | 8,555 | 8,811 | 8,555 | 8,811 | ||
Total current liabilities | 388,324 | 230,846 | 388,324 | 230,846 | ||
Long-term debt | 176,385 | 176,385 | ||||
Loans due to owners and affiliates | 1,737 | 1,737 | ||||
Derivative instruments | 50,429 | 69,618 | 50,429 | 69,618 | ||
Other long-term liabilities | 31,959 | 36,040 | 31,959 | 36,040 | ||
Total long-term liabilities | 82,388 | 283,780 | 82,388 | 283,780 | ||
Net assets (liabilities) | 74,576 | 34,245 | 74,576 | 34,245 | ||
Share of joint ventures net assets (liabilities) before eliminations | 37,288 | 17,123 | 37,288 | 17,123 | ||
Eliminations | $ (7,202) | $ (7,433) | (7,202) | (7,433) | ||
Accumulated earnings (losses) of joint ventures | $ 30,086 | $ 9,690 |
Investments in joint ventures_3
Investments in joint ventures - Additional Information (Details) | Sep. 30, 2021 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Advances to joint ventures | ||
Current portion of advances to joint ventures | $ 4,410 | $ 3,284 |
Long-term advances to joint ventures | 869 | |
Advances/shareholder loans to joint ventures | $ 4,410 | $ 4,153 |
Advances to joint ventures - Ad
Advances to joint ventures - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Advances to Joint Ventures [Line Items] | ||
Due from joint ventures | $ 4,410 | $ 4,153 |
Debt service coverage ratio | 1.20% | |
SRV Joint Gas Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from joint ventures | $ 3,500 | 3,300 |
SRV Joint Gas Two Ltd [Member] | ||
Advances to Joint Ventures [Line Items] | ||
Due from joint ventures | $ 900 | $ 900 |
Long-term debt (Details)
Long-term debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Outstanding principal | $ 402,720 | $ 421,464 |
Total debt | 397,381 | 414,589 |
Less: Current portion of long-term debt | (55,987) | (59,119) |
Long-term debt | 341,394 | 355,470 |
Lampung facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (2,154) | (2,999) |
$385 million facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (3,185) | (3,876) |
Export credit tranche | Lampung facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 68,159 | 79,324 |
Export credit tranche | $385 million facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 39,500 | 44,500 |
FSRU tranche [Member] | Lampung facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 15,504 | 18,635 |
Commercial tranche | $385 million facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 216,507 | 230,705 |
Revolving credit facility | $385 million facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $ 63,050 | $ 48,300 |
Long-term debt - Additional inf
Long-term debt - Additional information (Details) - USD ($) $ in Millions | Sep. 03, 2021 | May 07, 2021 | Aug. 12, 2019 | Jan. 31, 2019 | Sep. 30, 2021 | Dec. 31, 2020 | Jan. 01, 2023 | May 28, 2019 | Jan. 29, 2019 | Aug. 31, 2014 |
Debt Instrument [Line Items] | ||||||||||
Loan Covenant Security Maintenance Percentage to Loans Outstanding | 125.00% | |||||||||
Debt service coverage ratio | 1.20% | |||||||||
Amount drew | $ 0 | |||||||||
Revolving credit due to owners and affiliates repayment | $ 34 | |||||||||
Lampung facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt service minimum coverage ratio | 1.10 | |||||||||
Guarantors equity minimum amount | $ 200 | |||||||||
Guarantor equity, percentage | 25.00% | |||||||||
Guarantors liquid assets | $ 20 | |||||||||
Debt service coverage ratio | 1.20% | |||||||||
Loans may be repaid | $ 0 | |||||||||
Dividends may be paid | $ 0 | |||||||||
$385 million facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt service minimum coverage ratio | 115 | |||||||||
Guarantors equity minimum amount | $ 150 | |||||||||
Guarantor equity, percentage | 25.00% | |||||||||
Guarantors liquid assets | $ 15 | |||||||||
Guarantors liquid assets, cap value | 20 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 385 | $ 320 | ||||||||
Repayment of revolving credit facility due to owners and affiliates | $ 303.2 | |||||||||
Repayments of Accrued interest | 1.6 | |||||||||
Payments of arrangement fees | 5.5 | |||||||||
Remaining proceeds used for general partnership purposes | 9.6 | |||||||||
Minimum amount of working capital | 0 | |||||||||
Minimum liquid assets per vessel | $ 2.5 | |||||||||
Export credit tranche [Member] | Lampung facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Frequency of Payments | The export credit tranche is repayable in quarterly installments over 12 years | |||||||||
Debt instrument, term | 12 years | |||||||||
FSRU tranche [Member] | Lampung facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Frequency of Payments | The FSRU (commercial) tranche was repayable quarterly over 7 years | |||||||||
Debt instrument, term | 7 years | |||||||||
Debt Instrument, Balloon Payment | $ 16.5 | |||||||||
385 million facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 385 | |||||||||
Amount drew | $ 14.7 | 320 | ||||||||
Percentage of common units owned | 25.00% | |||||||||
Revolving credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85 | $ 85 | $ 85 | $ 85 | ||||||
Amount drew | $ 6 | |||||||||
Revolving credit facility | $385 million facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 63 | |||||||||
Amount drew | $ 48.3 | |||||||||
Revolving Credit Facility Due To Owners And Affiliates [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 85 |
Accrued liabilities and payab_3
Accrued liabilities and payables (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued liabilities and payables | ||
Accrued operating and administrative expenses | $ 4,277 | $ 3,042 |
Accrued interest | 2,394 | 2,641 |
Current tax payable | 1,149 | 469 |
Current portion - provision for tax uncertainty (note 6) | 2,641 | |
Refund liabilities (note 4) | 1,399 | 891 |
Lease liability | 64 | 39 |
Other accruals and payables | 800 | 150 |
Total accrued liabilities and other payables | $ 12,724 | $ 7,232 |
Related party transactions - St
Related party transactions - Statement of income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Time charter revenue Hoegh Gallant | $ 35,596 | $ 35,913 | $ 105,068 | $ 107,036 |
Operating expenses | ||||
Vessel operating expenses | (5,927) | (5,963) | (18,213) | (17,246) |
Interest income from joint ventures | 166 | 135 | 397 | 470 |
Interest expense and commitment fees to Hoegh LNG | (6,146) | (6,014) | (21,440) | (18,847) |
Total | 17,359 | 19,475 | 43,836 | 44,631 |
Hoegh Gallant [Member] | ||||
Revenues | ||||
Time charter revenue Hoegh Gallant | 10,950 | 10,950 | 32,493 | 34,365 |
Hoegh LNG and Subsidiaries [Member] | ||||
Operating expenses | ||||
Vessel operating expenses | (3,191) | (5,497) | (11,440) | (15,028) |
Hours, travel expense and overhead and Board of Directors' fees | (1,004) | (838) | (3,366) | (2,967) |
Interest income from joint ventures | 124 | 82 | 257 | 239 |
Interest expense and commitment fees to Hoegh LNG | (258) | (95) | (685) | (291) |
Total | $ 6,621 | $ 4,602 | $ 17,259 | $ 16,318 |
Related party transactions - Ba
Related party transactions - Balance sheet (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Contribution from Hoegh LNG | $ 315 | $ 11,850 |
Issuance of units for Board of Directors' fees | 211 | 181 |
Other and contribution from owner | 15 | 109 |
Equity: Total | 541 | 12,140 |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Issuance of units for Board of Directors' fees | 211 | 181 |
Hoegh LNG and Subsidiaries [Member] | ||
Related Party Transaction [Line Items] | ||
Contribution from Hoegh LNG | $ 315 | $ 11,850 |
Related party transactions - Re
Related party transactions - Receivables and payables from related parties (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Related party transactions | ||
Amounts due from affiliates | $ 3,880 | $ 3,639 |
Amounts due to owners and affiliates | $ 3,291 | $ 2,600 |
Related party transactions - _2
Related party transactions - Revolving credit facility (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Related party transactions | ||
Revolving credit facility due to owners and affiliates - non-current portion | $ 24,681 | $ 18,465 |
Related party transactions - Ad
Related party transactions - Additional Information (Details) $ in Thousands | May 07, 2021USD ($) | Mar. 12, 2021USD ($) | Dec. 11, 2020USD ($) | Oct. 23, 2020USD ($) | Aug. 07, 2020USD ($) | Aug. 06, 2020shares | Apr. 24, 2020USD ($) | Apr. 08, 2020USD ($) | Mar. 26, 2020shares | May 28, 2019USD ($) | Mar. 21, 2019shares | Sep. 14, 2018shares | Mar. 23, 2018shares | Dec. 31, 2017 | Jan. 03, 2017 | Aug. 31, 2020shares | Mar. 21, 2019shares | Aug. 31, 2014USD ($) | Sep. 30, 2021USD ($)claim | Sep. 30, 2020claim | Sep. 30, 2021USD ($)claimshares | Sep. 30, 2020USD ($)claim | Dec. 31, 2020USD ($) | Dec. 31, 2019 | Jan. 01, 2023USD ($) | Jan. 29, 2018USD ($) |
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Revolving Credit Due To Owners And Affiliates | $ 24,681 | $ 24,681 | $ 18,465 | |||||||||||||||||||||||
Indemnification claims filed or received | claim | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Amount drawn | 0 | |||||||||||||||||||||||||
Partners' Capital Account, Unit-based Compensation | $ 211 | 181 | ||||||||||||||||||||||||
Director [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Total Board of Directors' fees | 448 | $ 412 | ||||||||||||||||||||||||
Partners' Capital Account, Unit-based Compensation | 211 | 181 | ||||||||||||||||||||||||
Chief Executive Officer Chief Financial Officer [Member] | Phantom Units [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Units granted | shares | 8,100 | 10,917 | 28,018 | 14,584 | 15,378 | 10,917 | ||||||||||||||||||||
Unvested units forfeited | shares | 15,378 | |||||||||||||||||||||||||
Hoegh LNG [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Reduction of loan | $ 300 | $ 11,900 | ||||||||||||||||||||||||
Percentage Of Ownership Interest In Acquisition | 49.00% | 51.00% | ||||||||||||||||||||||||
Hoegh LNG and Subsidiaries [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 14,400 | $ 21,300 | ||||||||||||||||||||||||
LP Long Term Incentive Plan [Member] | Director [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Partners' Capital Account, Units, Unit-based Compensation | shares | 11,960 | |||||||||||||||||||||||||
Partners' Capital Account, Unit-based Compensation | $ 203 | |||||||||||||||||||||||||
Revolving credit facility | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Revolving Credit Due To Owners And Affiliates | $ 85,000 | |||||||||||||||||||||||||
Reduction of loan | $ 3,300 | |||||||||||||||||||||||||
Aggregate borrowing capacity | $ 85,000 | $ 85,000 | $ 85,000 | $ 85,000 | ||||||||||||||||||||||
Amount drawn | $ 6,000 | |||||||||||||||||||||||||
Line of Credit Facility Original Expiration Date | Jan. 1, 2020 | |||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jan. 1, 2023 | |||||||||||||||||||||||||
Revolving credit facility | Hoegh LNG [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.40% | |||||||||||||||||||||||||
Reduction of loan | $ 8,600 | |||||||||||||||||||||||||
Aggregate borrowing capacity | $ 85,000 | $ 85,000 | $ 85,000 | $ 85,000 | ||||||||||||||||||||||
Amount drawn | $ 10,700 | $ 6,600 | $ 4,500 | |||||||||||||||||||||||
Revolving Credit Facility Maturing At 2020 [Member] | Hoegh LNG [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||||||||||||||||||||||||
Revolving Credit Facility Maturing at 2021 and Thereafter [Member] | Hoegh LNG [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% |
Financial instruments - Estimat
Financial instruments - Estimated fair value and carrying value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Jan. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Financial covenants | $ 385,000 | ||||
Cash and cash equivalents | 45,373 | $ 31,770 | $ 25,048 | $ 39,126 | |
Amounts due from affiliate | 3,880 | 3,639 | |||
Advances (shareholder loans) to joint ventures | 4,410 | 4,153 | |||
Current amounts due to owners and affiliates | (3,291) | (2,600) | |||
Lampung facility | 397,381 | 414,589 | |||
Revolving credit facility due to owners and affiliates | (24,681) | (18,465) | |||
385 million facility | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Financial covenants | 385,000 | ||||
$385 million facility | $ (385,000) | ||||
Recurring [Member] | Carrying amount | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | 45,373 | 31,770 | |||
Restricted cash | 15,358 | 19,293 | |||
Recurring [Member] | Carrying amount | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative instruments | (17,228) | (26,475) | |||
Recurring [Member] | Fair value | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | 45,373 | 31,770 | |||
Restricted cash | 15,358 | 19,293 | |||
Recurring [Member] | Fair value | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative instruments | (17,228) | (26,475) | |||
Other [Member] | Carrying amount | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amounts due from affiliate | 3,880 | 3,639 | |||
Advances (shareholder loans) to joint ventures | 4,410 | 4,153 | |||
Current amounts due to owners and affiliates | (3,291) | (2,600) | |||
Revolving credit facility due to owners and affiliates | (24,681) | (18,465) | |||
Other [Member] | Carrying amount | Fair Value, Inputs, Level 2 [Member] | Lampung facility [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Lampung facility | 81,509 | 94,960 | |||
Other [Member] | Carrying amount | Fair Value, Inputs, Level 2 [Member] | 385 million facility | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
$385 million facility | (315,872) | (319,629) | |||
Other [Member] | Fair value | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Amounts due from affiliate | 3,880 | 3,639 | |||
Advances (shareholder loans) to joint ventures | 4,442 | 4,305 | |||
Current amounts due to owners and affiliates | (3,291) | (2,600) | |||
Revolving credit facility due to owners and affiliates | (23,464) | (16,987) | |||
Other [Member] | Fair value | Fair Value, Inputs, Level 2 [Member] | Lampung facility [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Lampung facility | 83,547 | 99,295 | |||
Other [Member] | Fair value | Fair Value, Inputs, Level 2 [Member] | 385 million facility | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
$385 million facility | $ (317,573) | $ (323,342) |
Financial instruments - Financi
Financial instruments - Financing receivables and net investment in financing lease (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Advances/shareholder loans to joint ventures | $ 4,410 | $ 4,153 |
Net investment in financing lease | 270,572 | 274,257 |
Allowance for expected credit losses | 0 | 0 |
Collection Experience [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Advances/shareholder loans to joint ventures | 4,410 | 4,153 |
Credit Information [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Net investment in financing lease | $ 270,572 | $ 274,257 |
Risk management and concentra_3
Risk management and concentrations of risk - Interest rate swap agreements (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
2.941% Interest Rate [Member] | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional amount | $ 53,260 |
Derivative Liability, Fair Value carrying amount assets | $ (3,739) |
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 | $ 53,260 |
Derivative Liability, Fair Value carrying amount assets | $ (3,473) |
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 | $ 53,260 |
Derivative Liability, Fair Value carrying amount assets | $ (3,370) |
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 | $ 53,260 |
Derivative Liability, Fair Value carrying amount assets | $ (3,219) |
Derivative, Term | Jan 2026 |
Derivative, Fixed interest rate | 2.65% |
Lampung facility | |
Derivative [Line Items] | |
Derivative, Interest rate index | LIBOR |
Derivative, Notional amount | $ 68,159 |
Derivative Liability, Fair Value carrying amount assets | $ (3,427) |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Current | $ (6,092) | $ (6,945) |
Derivative Liability, Noncurrent | (11,136) | (19,530) |
Interest rate swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current | 0 | 0 |
Derivative Asset, Noncurrent | 0 | 0 |
Derivative Liability, Current | (6,092) | (6,945) |
Derivative Liability, Noncurrent | $ (11,136) | $ (19,530) |
Risk management and concentra_5
Risk management and concentrations of risk - Cash flow hedge accounting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassification from accumulated other comprehensive income included in hedge effectiveness | $ 6,524 | $ 768 | ||
Reclassification of amortization of cash flow hedge to earnings, Tax benefit (expense) | (190) | |||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach | 768 | |||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, tax | $ 43 | $ 61 | 160 | 190 |
Total gains (losses) on derivative instruments, tax | 43 | 61 | 160 | 190 |
Interest Expense [Member] | ||||
Reclassification from accumulated other comprehensive income included in hedge effectiveness | (2,034) | (1,906) | (6,524) | (3,716) |
Initial value of interest rate swap to be recognized in earnings on amortization approach, Tax benefit (expense) | 189 | 232 | 599 | 632 |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach | (256) | (256) | (768) | (768) |
Total gains (losses) on derivative instruments | $ (2,101) | $ (1,930) | $ (6,693) | $ (3,852) |
Risk management and concentra_6
Risk management and concentrations of risk - Effect of cash flow hedge accounting on accumulated OCI and earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Beginning Balance, Before tax gains (losses) | $ (31,966) | $ (29,486) | $ (18,119) | ||
Initial value of interest rate swap to be recognized in earnings on amortization approach, before tax gains (losses) | (18,331) | ||||
Effective portion of unrealized loss on cash flow hedge, Before tax gains (losses) | 2,124 | 3,716 | |||
Reclassification from accumulated other comprehensive income included in hedge effectiveness | 6,524 | 768 | |||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Before tax gains (losses) | 768 | ||||
Other comprehensive income for period, Before tax gains (losses) | 2,480 | 9,416 | (13,847) | ||
Ending Balance, Before tax gains (losses) | $ (20,070) | (29,486) | $ (31,966) | (20,070) | (31,966) |
Beginning Balance, Tax benefit (expense) | (14) | (86) | 176 | ||
Reclassification of amortization of cash flow hedge to earnings, Tax benefit (expense) | (190) | ||||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, tax | (43) | (61) | (160) | (190) | |
Other comprehensive income for period, Tax benefit (expense) | (72) | (160) | (190) | ||
Ending Balance, Tax benefit (expense) | (246) | (86) | (14) | (246) | (14) |
Beginning Balance, Net of tax | (31,980) | (29,572) | (17,943) | ||
Initial value of interest rate swap to be recognized in earnings on amortization approach, Net of tax | (18,331) | ||||
Effective portion of unrealized loss on cash flow hedge, Net of tax | 2,124 | 3,716 | |||
Reclassification of amortization of cash flow hedge to earnings, Net of tax | 6,524 | ||||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Net of tax | 578 | ||||
Other Comprehensive Income (Loss), Effective Unrealized Gain (Loss) on Cash Flow Hedges | 190 | ||||
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Net of tax | 608 | ||||
Other comprehensive income for period, Net of tax | 2,408 | 9,256 | (14,037) | ||
Ending Balance, Net of tax | (20,316) | $ (29,572) | (31,980) | (20,316) | (31,980) |
Gain (loss) reclassified to earnings, tax | 160 | 190 | |||
Estimated amortization of accumulated other comprehensive income to earnings for the next twelve months | 7,000 | ||||
Interest Expense [Member] | |||||
Reclassification from accumulated other comprehensive income included in hedge effectiveness | (2,034) | (1,906) | (6,524) | (3,716) | |
Reclassification discontinued hedge and initial fair value from accumulated other comprehensive income based on amortization approach, Before tax gains (losses) | $ (256) | $ (256) | (768) | (768) | |
Other Comprehensive Income (Loss), Tax Effect of Effective Unrealized Gain (Loss) on Cash Flow Hedges | 3,716 | ||||
Gain (loss) reclassified to earnings | $ (7,292) | $ (4,484) |
Risk management and concentra_7
Risk management and concentrations of risk - Additional Information (Details) - USD ($) $ in Millions | Dec. 29, 2014 | Mar. 17, 2014 | Dec. 31, 2018 | Sep. 30, 2021 | Feb. 28, 2019 |
Debt Instrument, Financial Covenants | $ 385 | ||||
$385 million facility [Member] | |||||
Debt Instrument, Financial Covenants | $ 385 | ||||
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 | ||||
Interest rate swap [Member] | $385 million facility [Member] | |||||
Derivative, Notional Amount | $ 130 | $ 127.7 | |||
Derivative, Term of Contract | 7 years | ||||
Interest rate swap [Member] | 2.941% rate [Member] | |||||
Derivative, Notional Amount | $ 65 | ||||
Interest rate swap [Member] | 2.838% rate [Member] | |||||
Derivative, Notional Amount | $ 65 | ||||
Interest rate swap [Member] | 2.650% Fixed interest [Member] | |||||
Derivative, Notional Amount | 63.8 | ||||
Interest rate swap [Member] | 2.735% Fixed interest [Member] | |||||
Derivative, Notional Amount | $ 63.8 | ||||
Interest rate swap [Member] | Maximum [Member] | $385 million facility [Member] | |||||
Derivative, Fixed Interest Rate | 2.941% | 2.735% | |||
Interest rate swap [Member] | Minimum [Member] | $385 million facility [Member] | |||||
Derivative, Fixed Interest Rate | 2.838% | 2.65% |
Commitments and contingencies (
Commitments and contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 11, 2020 | Apr. 08, 2020 | Sep. 30, 2017 | Dec. 31, 2020 | Apr. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 29, 2018 |
Contractual Obligation | $ 1,600 | |||||||||
Income tax examination, year under examination | 5 years | |||||||||
Unrecognized tax benefits for uncertain tax positions | $ 2,700 | $ 2,700 | $ 11,100 | $ 2,700 | ||||||
Potential future obligation | 8,400 | $ 3,000 | ||||||||
Annual Property Tax Payable | $ 500 | |||||||||
Revolving credit facility due to owners and affiliates | 18,465 | 18,465 | 24,681 | 18,465 | ||||||
Indonesian 2019 tax | ||||||||||
Unrecognized tax benefits for uncertain tax positions | 8,400 | |||||||||
Additional tax for 2019 including penalties | 2,700 | |||||||||
Revolving credit facility | ||||||||||
Reduction of loan | $ 3,300 | |||||||||
Revolving credit facility due to owners and affiliates | $ 85,000 | |||||||||
Hoegh LNG [Member] | Corporate Joint Venture [Member] | ||||||||||
Contractual Obligation | 3,300 | 3,300 | $ 8,600 | 3,300 | ||||||
Loss Contingency, Liability associated with the Boil of Claim | 23,700 | $ 23,700 | $ 23,700 | $ 23,700 | ||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Loss Contingency Accrual | 11,900 | $ 11,900 | $ 11,900 | $ 11,900 | ||||||
Settlement of boil-off claim | 6,500 | $ 17,200 | ||||||||
Reduction of loan | 300 | $ 3,300 | $ 8,600 | |||||||
Hoegh LNG [Member] | Revolving credit facility | ||||||||||
Revolving credit facility due to owners and affiliates | $ 85,000 | $ 85,000 | $ 85,000 | $ 85,000 |
Supplemental cash flow inform_3
Supplemental cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental disclosure of non-cash financing activities | ||||
Non-cash indemnifications received | $ 0 | $ 0 | $ 315 | $ 8,600 |
Issuance of common units and _3
Issuance of common units and Series A preferred units (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 45 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Oct. 18, 2019 | Jan. 26, 2018 | |
Proceeds from Issuance of Common Limited Partners Units | $ 818 | |||
Compensation Paid to Agent | $ 200 | $ 1,300 | ||
Maximum Offering Amount | $ 120,000 | $ 120,000 | ||
Common Stock [Member] | ||||
Partners' Capital Account, Units, Sale of Units | 52,603 | 358,869 | ||
Proceeds from Issuance of Common Limited Partners Units | $ 6,400 | |||
Proceeds from Issuance of Preferred Limited Partners Units | $ 800 | |||
Average Gross Sales Price Per Share | $ 15.75 | |||
8.75% Series A Preferred Units [Member] | ||||
Partners' Capital Account, Units, Sale of Units | 336,992 | 2,489,325 | ||
Proceeds from Issuance of Preferred Limited Partners Units | $ 8,300 | $ 63,200 | ||
Average Gross Sales Price Per Share | $ 25.12 |
Issuance of common units and _4
Issuance of common units and Series A preferred units - Net proceeds (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Gross proceeds for units issued | $ 9,296 |
Less: Commissions | (160) |
Net proceeds for units issued | 9,136 |
Common Units [Member] | |
Gross proceeds for units issued | 829 |
Less: Commissions | (11) |
Net proceeds for units issued | 818 |
8.75% Series A Preferred Units [Member] | |
Gross proceeds for units issued | 8,467 |
Less: Commissions | (149) |
Net proceeds for units issued | $ 8,318 |
Common and preferred units - Mo
Common and preferred units - Movements (Details) - shares | Jul. 16, 2021 | Jul. 12, 2021 | Jun. 21, 2021 | Oct. 23, 2020 | Sep. 15, 2020 | Sep. 04, 2020 | Sep. 30, 2021 | Dec. 31, 2020 |
Common units public [Member] | ||||||||
Common And Subordinated Units [Line Items] | ||||||||
Beginning Balance | 18,050,941 | 18,028,786 | ||||||
Awards to non-employee directors as compensation for directors' fees | 2,392 | 2,392 | 7,176 | 3,882 | 7,764 | 3,882 | ||
ATM program | 52,603 | 0 | ||||||
Ending Balance | 18,115,504 | 18,050,941 | ||||||
Common units Hegh LNG [Member] | ||||||||
Common And Subordinated Units [Line Items] | ||||||||
Beginning Balance | 15,257,498 | 15,257,498 | ||||||
Awards to non-employee directors as compensation for directors' fees | 0 | 0 | 0 | 0 | 0 | 0 | ||
ATM program | 0 | 0 | ||||||
Ending Balance | 15,257,498 | 15,257,498 | ||||||
8.75% Series A Preferred Units [Member] | ||||||||
Common And Subordinated Units [Line Items] | ||||||||
Beginning Balance | 6,752,333 | 6,625,590 | ||||||
Awards to non-employee directors as compensation for directors' fees | 0 | 0 | 0 | 0 | 0 | 0 | ||
ATM program | 336,992 | 126,743 | ||||||
Ending Balance | 7,089,325 | 6,752,333 | ||||||
Phantom Share Units (PSUs) [Member] | Common units public [Member] | ||||||||
Common And Subordinated Units [Line Items] | ||||||||
Phantom units issued | 6,627 | |||||||
Phantom Share Units (PSUs) [Member] | Common units Hegh LNG [Member] | ||||||||
Common And Subordinated Units [Line Items] | ||||||||
Phantom units issued | 0 | |||||||
Phantom Share Units (PSUs) [Member] | 8.75% Series A Preferred Units [Member] | ||||||||
Common And Subordinated Units [Line Items] | ||||||||
Phantom units issued | 0 |
Common and preferred units - Ad
Common and preferred units - Additional information (Details) - Series A Preferred Stock [Member] | 9 Months Ended |
Sep. 30, 2021$ / shares | |
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 |
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 17,359 | $ 19,475 | $ 43,836 | $ 44,631 |
Adjustment for: | ||||
Preferred unitholders' interest in net income | 3,877 | 3,681 | 11,631 | 11,017 |
Limited partners' interest in net income | 13,482 | 15,794 | 32,205 | 33,614 |
Less: Dividends paid or to be paid | (334) | (15,052) | (15,747) | (45,143) |
Under (over) distributed earnings attributable to: | ||||
Distributed Earnings | 13,148 | 742 | 16,458 | (11,529) |
Common units public [Member] | ||||
Under (over) distributed earnings attributable to: | ||||
Distributed Earnings | $ 7,137 | $ 402 | $ 8,934 | $ (6,246) |
Basic weighted average units outstanding | ||||
Weighted Average Number of Shares Outstanding, Basic | 18,115 | 18,031 | 18,102 | 18,030 |
Diluted weighted average units outstanding | ||||
Weighted Average Number of Shares Outstanding, Diluted | 18,122 | 18,037 | 18,119 | 18,037 |
Earnings per unit: | ||||
Earnings per share, basic and diluted | $ 0.40 | $ 0.46 | $ 0.95 | $ 0.97 |
Common units Hegh LNG [Member] | ||||
Under (over) distributed earnings attributable to: | ||||
Distributed Earnings | $ 6,011 | $ 340 | $ 7,524 | $ (5,283) |
Basic weighted average units outstanding | ||||
Weighted Average Number of Shares Outstanding, Basic | 15,257 | 15,257 | 15,257 | 15,257 |
Diluted weighted average units outstanding | ||||
Weighted Average Number of Shares Outstanding, Diluted | 15,257 | 15,257 | 15,257 | 15,257 |
Earnings per unit: | ||||
Earnings per share, basic and diluted | $ 0.40 | $ 0.49 | $ 0.98 | $ 1.05 |
Earning per unit and cash dis_4
Earning per unit and cash distributions - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 26, 2020 | Mar. 21, 2019 | Sep. 14, 2018 | Mar. 23, 2018 | Aug. 31, 2020 | Mar. 21, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||
Incentive Distribution Right Target Distribution | $ 0 | $ 800 | ||||||||
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 | 8,100 | 10,917 | 28,018 | 14,584 | 15,378 | 10,917 | ||||
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 | $ 0.50625 | |||||||||
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 Hegh LNG [Member] | ||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||
Incentive Distribution Right Target Distribution | $ 400 | $ 1,198 |
Subsequent events (Details)
Subsequent events (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions | Nov. 15, 2021USD ($)$ / shares |
Series A Preferred Stock [Member] | |
Subsequent Event [Line Items] | |
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ / shares | $ 0.546875 |
Distribution Made to Limited Partner, Cash Distributions Paid | $ | $ 3.9 |
Common and Subordinated Stock [Member] | |
Subsequent Event [Line Items] | |
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ / shares | $ 0.01 |
Distribution Made to Limited Partner, Cash Distributions Paid | $ | $ 0.3 |