Höegh LNG Partners LP in their Preliminary Financial Results for the Quarter Ended March 31, 2016 reported a net loss of $1.0 million for the first quarter of 2016 compared to operating income of $5.0 million and net income of $2.6 million for the first quarter of 2015.
The operating income and net loss were impacted by unrealized losses on derivative instruments on the Partnership's share of equity in losses of joint ventures in the first quarter of 2016 and 2015.
The company reported total time charter revenues of $21.7 million for the first quarter of 2016 compared to $11.5 million of time charter revenue for the first quarter of 2015, reflecting the inclusion of the FSRU Höegh Gallant acquired on October 1, 2015
Excluding the impact of the unrealized losses on derivatives for the three months ended March 31, 2016 and 2015 affecting the equity in earnings of joint ventures, operating income for the three months ended March 31, 2016 would have been $15.2 million, an increase of $6.2 million or approximately 69% from $9.0 million for the three months ended March 31, 2015
Richard Tyrrell, Chief Executive Officer and Chief Financial Officer stated, "During the first quarter of 2016, Höegh LNG Partners achieved record LNG regas volumes, which underscores the strategic and economic benefits of our floating LNG terminals. Taking into consideration the scheduled maintenance on the Höegh Gallant and fewer operating days in the first quarter, we generated consistent financial performance compared to the previous quarter. The Partnership's stable cash flows are generated by long-term contracts that are fixed rate and have an average remaining term of 14 years.
For the first quarter, we declared a cash distribution of $0.4125 per unit, which is unchanged from the previous quarter and represents a 22% increase since the initial public offering. Building on our success acquiring the Höegh Gallant in the third quarter of 2015, we expect to have the opportunity to acquire the Höegh Grace once it goes on contract in the second half of this year and to be in a position to continue growing the distribution."
