Golar LNG Partners Q4 2012 results presentation
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Golar LNG Partners Q4 2012 results presentation Presentation Transcript

  • 1. Golar LNG PartnersFourth Quarter Results 2012 28 February 2013
  • 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 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
  • 3. Q4 2012: Highlights & Recent Events Net income attributable to unit holders of $27.3 million and operating income of $46.0 million. Improved performance over the same period last year Impact of periodic drydockings in Q4 and 2013 Distributable cash flow generation $22.3 million. Completed second follow-on equity offering raising net proceeds of approximately $180 million in November 2012. Acquisition of interests in the companies that lease and operate the LNG carrier Golar Grand in November 2012 for $265 million. Quarterly distribution increased to $0.50 per unit for the fourth quarter of 2012, which represents a 5.3% increase from the rate prior to the Golar Grand acquisition. 3
  • 4. Q4 2012: Highlights & Recent Events 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. New $175 million bank loan facility secured on the NR Satu – of which $20 million revolving tranche undrawn The $155 million vendor loan from Golar LNG Limited in respect of the Nusantara Regas Satu (“NR Satu”) acquisition repaid following the completion of the NR Satu refinancing. 4
  • 5. Q4 2012: Highlights & Recent Events Subsequent to quarter end: Completed third follow-on equity offering raising net proceeds of approximately $130 million. Acquisition of interests in the company that owns and operates the LNG carrier Golar Maria completed for a purchase price of $215 million. Management recommendation to increase quarterly distributions by between $0.0125 and $0.0175 per quarter, which would increase annualized distributions by between $0.05 and $0.07 representing a 2.5% - 3.5% increase. 5
  • 6. Income Statement 2012 2012 2011 2012 2011 (USD thousands) Oct-Dec Jul-Sep Oct-Dec Jan-Dec Jan-Dec (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (1) (1) (1) (1) Operating revenues 77,172 79,662 57,399 286,630 225,452 Vessel operating expenses 13,037 10,891 9,114 45,474 39,212 Voyage expenses 2,252 1,177 (55) 4,471 785 Administrative expenses 1,555 1,677 1,742 7,269 8,234 Depreciation and Amortisation 14,367 13,911 11,134 51,167 45,316 Total operating expenses 31,211 27,656 21,935 108,381 93,547 Operating income 45,961 52,006 35,464 178,249 131,905 Interest income 333 439 547 1,797 1,640 Interest expense (11,012) (10,678) (7,366) (38,090) (19,581) Other financial items (516) (1,043) (540) (5,389) (18,521) Income before tax & non-controlling interests 34,766 40,724 28,105 136,567 95,443 Tax (4,478) (3,332) (516) (9,426) (45) Net income attributable to non-controlling interests (2,988) (2,760) (2,439) (10,723) (9,863) Net income attributable to Golar LNG Partners LP 27,300 34,632 25,150 116,418 85,535 Owners (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 and are included in the results of all periods presented. 6
  • 7. Balance Sheet: Assets 2012 2011 Dec 31 Dec 31 (unaudited) (unaudited) (USD thousands) (1) (1) Short term assets Cash and cash equivalents 66,327 49,218 Restricted cash and short-term investments 30,900 24,512 Other current assets 10,143 7,108 Long term assets Restricted cash 190,523 185,270 Vessels and vessels under capital leases, net 1,192,779 1,163,924 Other long term assets 20,302 7,781 TOTAL ASSETS 1,510,974 1,437,813 7
  • 8. Balance Sheet: Liabilities 2012 2011 Dec 31 Dec 31 (unaudited) (unaudited) (USD thousands) (1) (1)Short term liabilitiesCurrent portion of long term debt 64,822 49,906Current portion of obligations under capital leases 5,837 5,909Other current liabilities 99,058 83,454Long term liabilities and equityLong term debt (inc loans due to related parties) 674,650 572,978Obligations under capital leases 406,534 399,934Other long term liabilities 18,529 27,599Owners’ and Dropdown Predecessor equity - 208,069Total Partners’ capital 178,675 32,069Accumulated other comprehensive (loss) / income (8,989) (5,039)Non-controlling interest 71,858 62,934TOTAL LIABILITIES AND EQUITY 1,510,974 1,437,813Total debt and capital lease obligations net of restricted cash 930,420 818,945Percentage of total debt/lease obligations (net of restricted cash) swapped to afixed rate 82% 8
  • 9. Distributable Cash Flow Three months Three months (USD thousands) ended ended Dec 31, 2012 Sep 30, 2012Net Income before non controlling interest 30,288 37,392Add:Depreciation and Amortisation (excluding Dropdown Predecessor prior toacquisition) 13,913 12,047Unrealised (gain)/loss from interest rate derivatives (1,554) 685Unrealised foreign exchange & related currency derivative gain (463) (1,545)Less:Net income attributable to Dropdown Predecessor (3,541) (9,273)Estimated maintenance & replacement capital expenditures (12,624) (10,518)Non-controlling interests share of DCF before maintenance & replacement capitalexpenditure (3,654) (3,628)Distributable cash flows for the quarter 22,363 25,160Total Distributions declared for the period 27,250 22,709 9
  • 10. Assets and Contracts $2.7 billion contracted revenue – Average 7.4 years remaining contract term Counterparty 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 Methane Princess 20-year contractLNG Carriers Golar Mazo 18-year contract Recent Dropdown Golar Grand Recent dropdown 5-year contract Golar Maria Recent Dropdown 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) 10
  • 11. 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 Annualized distribution increase $0.10 Increased distributions per unit on an annualized basis $2.00 Distribution increase per unit since April 2011 IPO 29.9% 11
  • 12. Golar Maria Purchase price February 2013 $215 million Financed by: Share of $130m net equity proceeds $126 million Debt (acquired with vessel) $89 million Net cash from operations before interest costs $22-$24 million Initial contract term to December 2017 5 years Vessel delivered under charter November 2012 Management recommended annualized distribution increase $0.05 - $0.07 Increases distributions per unit on an annualized basis to: $2.05 - $2.07 Distribution increase per unit since IPO based on $2.06 per annum 33.8% 12
  • 13. Growth opportunities - 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 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 13
  • 14. Growth opportunities - market LNG Carriers LNG production capacity growth1 – 2013 to 2018 - 44% increase 86 LNGC Newbuildings delivering – 2013 to 2017 - 24.5% increase Potentially some shipping supply surplus 2014-2015 before moving into deficit 57% of newbuilds are committed to term contracts LNGC fleet - 351 Vessels in current fleet greater than 30 years old – 40 (19 more than 35 years old) FSRUs Current FSRU fleet – 14 existing, 8 Newbuildings + 1 conversion delivering – 2013 to 2015 5 of the new FSRU’s are committed to projects – Golar has 2 of the 4 uncommitted vessels, both of which delivery prior to 2015 Golar selected as preferred bidder for Jordanian project Up to 3 further awards are expected in the first half of 2013 for which there is limited competition and start up requirements prior to or early 2015 Significant other development activity particularly in the Middle East, India and South America 1Source – Wood Mackenzie 14
  • 15. Summary Increased distribution to $0.50 per unit for Q4 2012 following acquisition of the Golar Grand Khannur Golar Maria contract increases revenue backlog – now $2.7 billion Golar Freeze Management recommendation to further increase distribution to Golar Winter between $0.5125 and $0.5175 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 15