Your SlideShare is downloading. ×

Golar LNG Partners Q3 2012 results presentation

437

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
437
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Golar LNG PartnersThird Quarter Results 2012 28 November 2012
  • 2. Forward Looking Statements 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 liquid 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; 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
  • 3. Q3 2012: Highlights & Recent Events Net income attributable to unit holders of $26.8 million and operating income of $43.5 million. Improved performance over the same period last year and Q2 2012 Distributable cash flow generation $25.2 million. Completed first follow-on equity offering raising net proceeds of approximately $223 million in July 2012. Acquisition of interests in the companies that own and operate the FSRU Nusantara Regas Satu in July 2012 for $385 million Quarterly distribution increased to $0.475 per unit for the third quarter of 2012, which represents a 10.5% increase from the rate prior to the NR Satu acquisition. 3
  • 4. Q3 2012: Highlights & Recent Events Subsequent to quarter end: NOK 1,300 million bond issue in the Norwegian market (approx. $227 million) and repayment of $222 million vendor loan from Golar LNG Limited in respect of the Golar Freeze acquisition. Completed second follow-on equity offering raising net proceeds of approximately $181 million. Acquisition of interests in the companies that own and operate the LNG carrier Golar Grand completed for a purchase price of $265 million. Management recommendation to increase quarterly distributions by between $0.0225 and $0.0275 per quarter, which would increase distributions to between $0.4975 and $0.5025. 4
  • 5. Income Statement 2012 2012 2011 2012 2011 (USD thousands) Jul-Sep Apr-Jun Jul-Sep Jan-Sep Jan-Sep (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (1) (1) (1) (1) (1) Operating revenues 68,628 60,273 51,776 179,689 152,327 Vessel operating expenses 9,806 9,314 8,285 28,986 26,669 Voyage expenses 1,038 751 35 1,824 195 Administrative expenses 1,421 2,150 1,711 4,876 5,407 Depreciation and Amortisation 12,845 10,923 9,987 33,625 31,009 Total operating expenses 25,110 23,138 20,018 69,311 63,280 Operating income 43,518 37,135 31,758 110,378 89,047 Interest income 393 456 386 1,318 1,038 Interest expense (10,285) (8,509) (3,093) (25,834) (11,096) Other financial items (753) (2,443) (14,551) (4,298) (16,845) Income before tax & non-controlling interests 32,873 26,639 14,500 81,564 62,144 Tax (3,292) (1,557) 226 (4,838) 541 Net income attributable to non-controlling interests (2,760) (2,504) (2,539) (7,735) (7,424) Net income attributable to Golar LNG Partners LP 26,821 22,578 12,187 68,991 55,261 Owners (1) Results for the NR Satu and the Golar Freeze for the periods prior to their acquisition by the Partnership (on July 19, 2012 and October 19, 2011, respectively) when they were owned and operated by Golar LNG Limited have been combined with the previously published results of the Partnership and are included in the results of all periods presented. These results are referred to as the Dropdown Predecessor. 5
  • 6. Balance Sheet: Assets 2012 2011 Sep 30 Dec 31 (unaudited) (unaudited) (USD thousands) (1) (1) Short term assets Cash and cash equivalents 47,979 46,169 Restricted cash and short-term investments 33,617 24,512 Other current assets 11,029 6,612 Long term assets Restricted cash 144,401 140,262 Vessels and vessels under capital leases, net 1,083,515 1,033,194 Other long term assets 8,177 5,563 TOTAL ASSETS 1,328,718 1,256,312 6
  • 7. Balance Sheet: Liabilities 2012 2011 Sep 30 Dec 31 (unaudited) (unaudited) (USD thousands) (1) (1)Short term liabilitiesCurrent portion of long term debt 60,363 49,906Current portion of obligations under capital leases 3,161 3,240Other current liabilities 86,845 77,694Long term liabilities and equity loanLong term debt (inc loans due to related parties) 686,755 572,978Obligations under capital leases 273,365 264,840Other long term liabilities 18,686 27,599Owners’ and Dropdown Predecessor equity - 170,091Total Partners’ capital 135,271 32,069Accumulated other comprehensive (loss) / income (5,197) (5,039)Non-controlling interest 69,469 62,934TOTAL LIABILITIES AND EQUITY 1,328,718 1,256,312Total debt and capital lease obligations net of restricted cash 845,626 726,190Percentage of bank debt/lease obligations (net of restricted cash) swapped to afixed rate 96% 92% 7
  • 8. Distributable Cash Flow Three months Three months (USD thousands) ended ended Sep 30, 2012 Jun 30, 2012Net Income before non controlling interest 29,581 25,082Add:Depreciation and Amortisation (excluding Dropdown Predecessor prior toacquisition) 12,047 8,884Unrealised loss from interest rate derivatives 685 1,125Unrealised foreign exchange & related currency derivative (gain)/loss (1,545) (318)Less:Net (income)/loss attributable to Dropdown Predecessor (1,462) (2,749)Estimated maintenance & replacement capital expenditures (10,518) (8,664)Non-controlling interests share of DCF before maintenance & replacement capitalexpenditure (3,628) (3,123)Distributable cash flows for the quarter 25,160 20,237Distribution for the period 22,476 20,820 8
  • 9. Assets and Contracts $2.6 billion contracted revenue – Average 8.2 years remaining contract term 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Counterparty Golar Spirit 10-year contract Golar Winter 10-year contractFSRUs extended to 15 years Golar Freeze 10-year contract Nusantara Regas Satu 11-year contract Recent dropdown Methane PrincessLNG Carriers 20-year contract Golar Mazo 18-year contract Golar Grand 5-year contract Recent dropdown Base Contract Duration Options Option/put to Golar Dusup = Dubai Supply Authority. Pertamina = National oil company of Indonesia. Nusantara Regas = Joint venture between Pertamina and PGN (National Gas distribution company of Indonesia) 9
  • 10. Golar Grand Purchase price November 2012 $265 million Financed by: Share of $181m net equity proceeds $175 million Debt (finance lease acquired with vessel) $90 million Net cash from operations before interest costs $36-$38 million Initial contract term (including put option to Golar) to October 2017 5 years Vessel delivered under charter March 2012 Management recommended annualized distribution increase $0.09 - $0.11 Increases distributions per unit on an annualized basis to: $1.99 - $2.01 Annualized distribution per unit increase in first year since IPO 11.7% Distribution increase per unit since IPO based on $2.00 per annum 29.9% 10
  • 11. Growth potential - Golar LNG Limited Fleet Capacity Ship Owned Built m3 Containment Propulsion CharterGolar LNG vesselsGimi 100% 1976 125,000 Moss Steam Short-termHilli 100% 1975 125,000 Moss Steam openGandria 100% 1977 126,000 Moss Steam openGolar Viking 100% 2005 140,000 Membrane Steam Short-termGolar Maria 100% 2006 145,700 Membrane Steam openGolar Arctic 100% 2003 140,650 Membrane Steam 3 yearsNewbuild 1 100% 2013 160,000 Membrane Tri-fuelNewbuild 2 100% 2013 160,000 Membrane Tri-fuelNewbuild 3 100% 2013 160,000 Membrane Tri-fuelNewbuild 4 100% 2013 160,000 Membrane Tri-fuelNewbuild 5 100% 2014 160,000 Membrane Tri-fuelNewbuild 6 100% 2014 160,000 Membrane Tri-fuelNewbuild 7 100% 2014 160,000 Membrane Tri-fuelNewbuild 8 100% 2014 162,000 Membrane Tri-fuelNewbuild 9 100% 2014 162,000 Membrane Tri-fuelNewbuild 10 100% 2014 160,000 Membrane Tri-fuelNewbuild 11 100% 2015 160,000 Membrane Tri-fuelNewbuild FSRU 1 100% 2013 170,000 Membrane Tri-fuelNewbuild FSRU 2 100% 2014 160,000 Membrane Tri-fuel 11
  • 12. LNG Industry Growth LNG Supply LNG Shipping Requirement – September 2012 400 Speculative 350 Possible Probable Development 300 34% Under Construction Operational 250 mmtpa 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Wood Mackenzie Source: Poten & Partners 12
  • 13. FSRU Updates Growing the FSRU Franchise  Shortlisted for 5 projects (2012-2013 awards)  Gas Atacama award subject to possible extension of charterer conditions deadline Robust Demand for New FSRUs  25+ new projects being developed  Middle East activity continues to be very strong Nusantara Regas Satu  Rising demand has led to a significant increase in FSRU fleet utilization - very few FSRUs available before 2015 Well positioned for New Awards  2 FSRU newbuilds in 2013/2014  Only uncommitted newbuild FSRU in 2013  Conversions to suit market needs  Strong presence with shipyards  Demonstrable track record toward clients Freeze FSRU Picture courtesy of DUSUP 13
  • 14. Summary Increased distribution to $0.475 per unit following acquisition of the Nusantara Regas Satu Khannur Golar Grand contract increases revenue backlog – now $2.6 billion Golar Freeze Management recommendation to further increase distribution to Golar Winter between $0.4975 and $0.5025 Golar Spirit Strong growth outlook for LNG demand and supply and related infrastructure including LNG carriers and FSRU’s Golar LNG fleet, including 13 newbuildings, provides substantial dropdown growth potential 14

×