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, 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.
Forward Looking Statements
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
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.
Q2 2013: Highlights & Recent 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
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.
Q2 2013: Highlights & Recent Events
Vessel operating expenses
Depreciation and Amortisation
Total operating expenses
Other financial items
Income before tax
Net income attributable to non-controlling interests
Net income attributable to Golar LNG Partners
(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.
Short term assets
Cash and cash equivalents
Restricted cash and short-term investments
Other current assets
Long term assets
Vessels and vessels under capital leases, net
Other long term assets
Balance Sheet: Assets
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
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
Balance Sheet: Liabilities
Distributable Cash Flow
Jun 30, 2013
Mar 31, 2013
Net Income before non controlling interest 29,927 32,999
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
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
Distributable Cash flow & Distributions
Dividends have increased to
$2.06 p/a from the IPO level of
1.54 (34% growth since April
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
extended to 15 years
Assets and Contracts
Dusup = Dubai Supply Authority. Pertamina = National oil company of Indonesia. Nusantara Regas = Joint venture between Pertamina and PGN (National Gas distribution company of Indonesia)
$2.5 billion contracted revenue – Average 7.1 years remaining contract term
2013 2014 2015 2016 2017 2018 2020 2021 2022
Base Contract Duration Options Option/put to Golar
2023 2024 20252019
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
Golar will trade vessel as LNG carrier during off
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
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
Medium Term Growth Opportunity - Jordan
Golar LNG finalized 10 year FSRU contract
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
Fuel efficient regasification process.
Project start up expected Q4 2014 or Q1
Golar LNG continues to establish itself as a
leading FSRU provider for long term
Attractive medium term acquisition target.
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.
Other Growth Opportunities
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.