Highlights for the quarter ended 31 March 2021
- EBITDA1 of USD 51.8 million
- Net loss after taxes of USD 2.4 million
- Offer by Leif Hoegh & Co Ltd (LHC) and Morgan Stanley Infrastructure Partners (MSIP) to acquire all shares not owned by LHC and its affiliates by way of amalgamation
- Safe and reliable operations, no LTIs and technical availability of 100%
- Amalgamation completed - Hoegh LNG Holdings Ltd.’s shares will be delisted from the Oslo Stock Exchange on 27 May 2021
- Hoegh Giant commenced its new FSRU contract with H-Energy in India
- AGL ceased any further development of the project at Crib Point, Australia
Group financial review2
Hoegh LNG Holdings Ltd (Hoegh LNG Holdings or the company) and its subsidiaries (together Hoegh LNG or the group) reported a total income of USD 84 million for the first quarter of 2021, in line with USD 84.4 million in the preceding quarter. This small decrease mainly reflects Hoegh Giant being idle in connection with the start-up of the new contract with H-Energy in India and Hoegh Galleon commencing the extension of the charter with Cheniere at a lower timecharter rate. These factors were partly offset by Arctic Lady operating for the full quarter and Hoegh Esperanza operating in FSRU mode during the quarter.
Hoegh LNG reported EBITDA of USD 51.8 million for the first quarter, down from USD 55.2 million in the preceding three months. This decrease reflects changes in income as described above, an increase in Opex for Höegh Giant owing to maintenance work conducted in connection with the class renewal of the vessel, and one-off SG&A costs related to the cost savings programme.
Hoegh LNG recorded a net loss after tax of USD 2.4 million for the first quarter of 2021, down from a profit of USD 0.8 million in the preceding quarter. This decrease mainly reflects the lower EBITDA reported for the first quarter.
Operating cash flows fell in the first quarter by USD 20.8 million to USD 33.6 million. The net decrease was driven mainly by changes in working capital and the lower net result. Other sources of cash during the quarter comprised USD 10 million in proceeds from borrowings, a USD 8.2 million net reversal in cash collateral and USD 9.1 million issued in new equity in HMLP under the ATM-programme. Uses during the quarter mainly comprised USD 35 million in debt amortisations and lease payments, dividends paid to non-controlling interests in Hoegh LNG Partners (HMLP), and interest payments. The net decrease in cash and cash equivalents during the first quarter was USD 15 million.
At 31 March 2021, Hoegh LNG held USD 127.5 million in current unrestricted cash (USD 142.5 million). Net interest-bearing debt, including lease liabilities, decreased during the first quarter by USD 6 million to USD 1 530 million (USD 1 536 million). Total assets and book equity at 31 March 2021, after adjusting for the mark-to-market of interest rate swaps, were USD 2 515 million (USD 2 528 million) and USD 752 million (USD 757 million) respectively, equivalent to an adjusted book equity ratio of 30% (30%).