HAMILTON, Bermuda, Nov. 27, 2013 (GLOBE NEWSWIRE) -- Highlights
- Golar LNG Partners LP ("Golar Partners" or the "Partnership") reports net income attributable to unit holders of $35.4 million and operating income of $55.8 million for the third quarter of 2013
- Generated distributable cash flow of $38.9 million for the third quarter of 2013 with a coverage ratio of 1.25
- Declared distribution of $0.5225 per unit for the third quarter of 2013, an increase of 1.5% over the prior quarter
- Golar Winter drydocking and modification works completed and vessel delivered to new location in Brazil. Uplifted hire rate of approximately $2.2 million per annum takes effect
- Golar LNG Limited ("Golar") secures two FSRU contracts that represent attractive near and medium term acquisition prospects
- Entered into $100 million interest rate swaps with a tenor of 5 years
The Partnership's Distributable Cash Flow 2 for the third quarter of 2013 was $38.9 million as compared to $26.4 million in the second quarter and the coverage ratio was 1.25 as compared to 0.86 for the second quarter as a result of the improved operating results.On October 24, 2013, Golar Partners declared a distribution for the second quarter of 2013 of $0.5225 per unit, representing a 1.5% increase from the second quarter, which was paid on November 14, 2013. 2Distributable cash flow is a non-GAAP financial measure used by investors to measure the performance of master limited partnerships. Please see Appendix A for a reconciliation to the most directly comparable GAAP financial measure. Financing and Liquidity As of September 30, 2013 the Partnership had cash and cash equivalents of $49.8 million and undrawn revolving credit facilities of $65 million. Total debt and capital lease obligations net of restricted cash was $986.6 million as of September 30, 2013. Based on the above debt amount and annualized 3 third quarter 2013 adjusted EBITDA 4 Golar Partners has a debt to adjusted EBITDA multiple of 3.4 times. As of September 30, 2013, Golar Partners had interest rate swaps with a notional outstanding value of approximately $993.7 million (including swaps of notional amount of $227.2 million in connection with the Partnership's bonds) representing approximately 101% of total debt and capital lease obligations, net of restricted cash. The average fixed interest rate of swaps related to bank debt is approximately 2.4% with average maturity of approximately 3.1 years as of September 30, 2013. Subsequent to the quarter end the Partnership entered into a $100 million seven year swap at a fixed rate of 2.206% and a further $100 million of forward start swaps with a five year duration, a start date of October 1, 2015 and a fixed rate of 2.955%. These swaps were entered into to cover maturing swaps. As of September 30, 2013 the Partnership had outstanding bank debt of $764.5 million with average margins, in addition to LIBOR or fixed swap rates, of approximately 2.3%. In addition, the Partnership has bonds of $216.1 million with a fixed rate of 6.485%.
3Annualized means the figure for the quarter multiplied by 4. 4Adjusted EBITDA: Earnings before interest, other financial items, taxes, non-controlling interest, depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure used by investors to measure our performance. Please see Appendix A for a reconciliation to the most directly comparable GAAP financial measure.Outlook The announcement during the quarter by Golar that it had contracted the FSRU vessels Golar Igloo and Golar Eskimo for periods of 5 years or more provides Golar Partners its first two potential acquisitions from Golar's fleet of 13 newbuildings. The Golar Igloo is scheduled to deliver from the yard on time in December 2013 and is contracted to Kuwait National Petroleum Company ("KNPC") for an initial period of 5 years. The contract comprises the provision of portside FSRU services for an anticipated nine months of the year together with a three month window where the vessel is free to pursue spot carrier and other short term business opportunities. Winter scheduling of the three month stand-down period together with favourable positioning mean that the vessel should have realistic trading prospects. The contract is set to commence in March 2014. The Golar Eskimo has been contracted to the Government of Jordan and will be moored at a purpose built structure that is to be constructed by the Aqaba Development Corporation off the Red Sea port of Aqaba. The FSRU is scheduled to be ready for service in the latter part of the fourth quarter 2014 and its ten year contract is due to commence during the first quarter of 2015. As expected, following the recent completion of a series of 4 drydockings, operating results in the third quarter have improved significantly from the second quarter. Operating results for the fourth quarter of 2013 are also expected to be strong and approximately in line with the third quarter.
The Partnerships' coverage ratio for the third quarter stands at 1.25 times and leverage as at the end of the third quarter at 3.4 times adjusted EBITDA is decreased from 3.8 times at the same time last year.The Partnership has performed better than it anticipated at the time of its IPO and distributions have increased by 36%. The increased coverage ratio and reduce net debt to adjusted EBITDA ratio has increased the Partnerships financial flexibility for future acquisitions and distribution growth. With this solid financial position and with the recent FSRU contract announcements by Golar LNG together with its remaining newbuild fleet of 11 as yet uncontracted vessels, the Board is increasingly confident that Golar Partners can continue to strongly grow its earnings and distributions over the longer term. November 27, 2013 Golar LNG Partners L.P. Hamilton, Bermuda. Questions should be directed to: C/o Golar Management Ltd - +44 207 063 7900 Brian Tienzo or Graham Robjohns HUG#1746192 GMLP THIRD QUARTER 2013 RESULTS: http://hugin.info/147317/R/1746192/587798.pdf