Golar LNG Partners
Second Quarter Results 2013
29 August 2013
This presentation contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of
1934, a...
Net income attributable to unit holders of $28.0 million and
operating income of $44.4 million.
Generated distributable ca...
Subsequent events:
Golar Winter modification works completed and vessel delivered to new
location in Brazil.
All 2013 dryd...
(USD thousands)
2013
Apr-Jun
(unaudited)
2013
Jan-Mar
(unaudited)
2012
Apr-Jun
(unaudited)
(1)
2013
Jan-Jun
(unaudited)
20...
(USD thousands)
2013
Jun 30
(unaudited)
2012
Dec 31
(audited)
Short term assets
Cash and cash equivalents
Restricted cash ...
(USD thousands)
2013
Jun 30
(unaudited)
2012
Dec 31
(audited)
Short term liabilities
Current portion of long term debt (in...
Distributable Cash Flow
(USD thousands)
Three months
ended
Jun 30, 2013
Three months
ended
Mar 31, 2013
Net Income before ...
Distributable Cash flow & Distributions
9
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Q2
2011
Q3
2011
Q4
2011
Q1
201...
10
Counterparty
FSRUsLNGCarriers
Golar Spirit
10-year contract
Golar Winter
10-year contract
extended to 15 years
Methane
...
11
Near Term Growth Opportunity - Kuwait
Golar LNG recently awarded 5 year contract with
Kuwait National Petroleum Company...
12
Medium Term Growth Opportunity - Jordan
Golar LNG finalized 10 year FSRU contract
in Jordan:
 First 5 years EBITDA of ...
Golar LNG has a further 10 newbuild LNG carriers
delivering in 2013/2014/2015 and 1 further newbuild
FSRU delivering 2015....
14
Golar
Spirit
Golar
Winter
Golar
Freeze
Khannur
Solid contract base - Revenue backlog of $2.5 billion and average contra...
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Golar LNG Partners Q2 2013 results presentation

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Golar LNG Partners Q2 2013 results presentation

  1. 1. Golar LNG Partners Second Quarter Results 2013 29 August 2013
  2. 2. This presentation contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflects management’s current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as “may,” “could,” “should,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue” or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Golar LNG Partners undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in liquified natural gas (LNG) and floating storage and regasification unit (FSRU) market trends, including charter rates; changes in the supply and demand for LNG; changes in trading patterns that affect the opportunities for the profitable operation of LNG carriers and FSRUs; Golar LNG Partners ability to acquire new vessels from Golar LNG or third parties; increases in costs; the potential for the exercise of purchase options or early termination of charters by the Partnerships charterers and Golar Partners inability to replace assets and/or long-term contracts; and changes in the ability of Golar LNG Partners to obtain additional financing, in particular, in connection with the recent turmoil in financial markets. Unpredictable or unknown factors herein also could have material adverse effects on forward-looking statements. Please read Golar LNG Partners' filings with the Securities and Exchange Commission for more information regarding these factors and the risks faced by Golar LNG Partners. 2 Forward Looking Statements
  3. 3. Net income attributable to unit holders of $28.0 million and operating income of $44.4 million. Generated distributable cash flow of $26.4m for the quarter. Golar Mazo, Methane Princess and Golar Winter drydocks completed. Refinanced Golar Winter and Golar Grand with a new bank loan facility - $225m term loan and $50m revolver. Quarterly distribution of $0.515 declared for the quarter. 3 Q2 2013: Highlights & Recent Events
  4. 4. Subsequent events: Golar Winter modification works completed and vessel delivered to new location in Brazil. All 2013 drydocks now complete with no further dockings scheduled prior to 2015. Entered into an additional $100 million interest rate swaps: 99% of total debt/lease obligations (net of restricted cash) now swapped to a fixed rate. Golar LNG Limited secures two FSRU contracts that represent attractive near and medium term acquisition prospects. 4 Q2 2013: Highlights & Recent Events
  5. 5. (USD thousands) 2013 Apr-Jun (unaudited) 2013 Jan-Mar (unaudited) 2012 Apr-Jun (unaudited) (1) 2013 Jan-Jun (unaudited) 2012 Jan-Jun (unaudited) (1) 2012 Jan-Dec (audited) (1) Operating revenues Vessel operating expenses Voyage expenses Administrative expenses Depreciation and Amortisation Total operating expenses Operating income Interest income Interest expense Other financial items Income before tax Tax Net income attributable to non-controlling interests Net income attributable to Golar LNG Partners LP Owners 78,299 14,070 1,518 1,328 16,991 33,907 44,392 259 (11,987) (114) 32,550 (2,623) (1,961) 27,966 74,927 13,130 1,694 1,266 13,675 29,765 45,162 273 (10,381) 1,080 36,134 (3,135) (2,684) 30,315 71,193 10,469 951 2,449 11,983 25,852 45,341 502 (9,069) (2,464) 34,310 (1,597) (2,504) 30,209 153,226 27,200 3,212 2,594 30,666 63,672 89,554 532 (22,368) 966 68,684 (5,758) (4,645) 58,281 129,796 21,545 1,043 4,037 22,889 49,514 80,282 1,025 (16,710) (3,521) 61,076 (1,616) (4,975) 54,485 286,630 45,474 4,471 7,269 51,167 108,381 178,249 1,797 (38,090) (5,389) 136,567 (9,426) (10,723) 116,418 Income Statement 5 (1) Results for the Golar Grand and the NR Satu for the periods prior to their acquisition by the Partnership (on November 8, 2012 and July 19, 2012, respectively) when they were owned and operated by Golar have been combined with the previously published results of the Partnership.
  6. 6. (USD thousands) 2013 Jun 30 (unaudited) 2012 Dec 31 (audited) Short term assets Cash and cash equivalents Restricted cash and short-term investments Other current assets Long term assets Restricted cash Vessels and vessels under capital leases, net Other long term assets TOTAL ASSETS 61,085 19,655 17,344 136,168 1,436,215 24,737 1,695,204 66,327 30,900 10,143 190,523 1,192,779 20,302 1,510,974 Balance Sheet: Assets 6
  7. 7. (USD thousands) 2013 Jun 30 (unaudited) 2012 Dec 31 (audited) Short term liabilities Current portion of long term debt (including debt due to related parties) Current portion of obligations under capital leases Other current liabilities Long term liabilities and equity Long term debt (inc loans due to related parties) Obligations under capital leases Other long term liabilities Total Partners’ capital Accumulated other comprehensive (loss) / income Non-controlling interest TOTAL LIABILITIES AND EQUITY Total debt and capital lease obligations net of restricted cash Percentage of total debt/lease obligations (net of restricted cash) swapped to a fixed rate 96,566 - 113,185 916,196 145,987 18,219 330,179 (1,630) 76,502 1,695,204 1,002,926 90% 64,822 5,837 99,058 674,650 406,534 18,529 178,675 (8,989) 71,858 1,510,974 930,420 82% Balance Sheet: Liabilities 7
  8. 8. Distributable Cash Flow (USD thousands) Three months ended Jun 30, 2013 Three months ended Mar 31, 2013 Net Income before non controlling interest 29,927 32,999 Add: Depreciation and Amortisation (excluding Dropdown Predecessor prior to acquisition) 16,991 13,675 Unrealised (gain)/loss from interest rate derivatives (4,826) (2,269) Unrealised foreign exchange & related currency derivative gain (1,542) (1,424) Deferred financing cost amortization (including historical amortization) 3,408 1,620 Less: Estimated maintenance & replacement capital expenditures (14,890) (13,730) Non-controlling interests' share of DCF before maintenance & replacement capital expenditure (2,635) (3,250) Distributable cash flows for the quarter 26,433 27,621 Total Distributions declared for the period 30,615 30,615 8
  9. 9. Distributable Cash flow & Distributions 9 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Public Golar Distributable cash Distributions Dividends have increased to $2.06 p/a from the IPO level of 1.54 (34% growth since April 2011) Drydocking offhire time during Q1 and Q2 2013 have meant distributions have exceeded distributable cash, but this is mitigated by cash reserves created in prior periods No further drydockings before 2015 - significant improvement in Q3 operating results expected, aided by increase in post modification rate for Golar Winter
  10. 10. 10 Counterparty FSRUsLNGCarriers Golar Spirit 10-year contract Golar Winter 10-year contract extended to 15 years Methane Princess 20-year contract Golar Mazo 18-year contract Assets and Contracts Golar Freeze 10-year contract Dusup = Dubai Supply Authority. Pertamina = National oil company of Indonesia. Nusantara Regas = Joint venture between Pertamina and PGN (National Gas distribution company of Indonesia) Nusantara Regas Satu 11-year contract $2.5 billion contracted revenue – Average 7.1 years remaining contract term Golar Grand 5-year contract Recent dropdown Golar Maria 5-year contract Recent dropdown Recent Dropdown 2013 2014 2015 2016 2017 2018 2020 2021 2022 Base Contract Duration Options Option/put to Golar 2023 2024 20252019
  11. 11. 11 Near Term Growth Opportunity - Kuwait Golar LNG recently awarded 5 year contract with Kuwait National Petroleum Company:  $213 Million TCP value over 5 years.  Contract is for 9 months of regasifaction service per year.  Golar will trade vessel as LNG carrier during off season. FSRU is Golar Igloo:  170,000 cubic meters of storage.  Up to 750 mmscf/day of regasification capacity.  Fuel efficient regasification process.  DFDE engines allow it to trade as very efficient LNG carrier. Project start up March 2014. Middle East is a significant area of LNG supply and demand – potential fixtures on both departure and return legs of off season. Attractive acquisition target
  12. 12. 12 Medium Term Growth Opportunity - Jordan Golar LNG finalized 10 year FSRU contract in Jordan:  First 5 years EBITDA of $46 Million.  Second 5 years EBITDA of $43 Million.  Jordan has option to terminate contract after 5 years with payment of a termination fee. FSRU is Golar Eskimo:  160,000 cubic meters of storage.  Up to 750 mmscf/day of regasification capacity.  Fuel efficient regasification process. Project start up expected Q4 2014 or Q1 2015. Golar LNG continues to establish itself as a leading FSRU provider for long term service. Attractive medium term acquisition target.
  13. 13. Golar LNG has a further 10 newbuild LNG carriers delivering in 2013/2014/2015 and 1 further newbuild FSRU delivering 2015. Floating liquefaction projects:  Expect FEED study with Keppel to confirm technical and economic viability of liquefaction solution.  Douglas Channel and other projects in the Americas and West Africa have the potential to create long-term contracted asset opportunities including shipping. 13 Other Growth Opportunities
  14. 14. 14 Golar Spirit Golar Winter Golar Freeze Khannur Solid contract base - Revenue backlog of $2.5 billion and average contract term of 7.1 years. 2013 drydocking program completed – 4 vessels drydocked in the first half of 2013 - no further dockings scheduled prior to 2015 and a significant improvement in operating results for Q3 expected. Identified acquisition targets – Golar LNG recently awarded long-term FSRU contracts for newbuilds Igloo (Kuwait) and Eskimo (Jordan) Strong market growth outlook - growing LNG demand and supply creating demand for related infrastructure including LNG carriers, FSRUs and FLNGs. Large sponsor asset base - Golar LNG fleet of 11 remaining uncontracted newbuildings provide substantial dropdown growth potential. Summary

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