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Golar LNG Partners: Q1 Highlights

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May. 31 2018, Published 2:09 p.m. ET

First-quarter results

Golar LNG[1.liquefied natural gas] Partners (GMLP) released its first-quarter earnings today, reporting net income attributable to unitholders of $14.8 million and operating income of $26.1 million. Its revenue fell sequentially, as expected, to $74.2 million from $90.1 million, and the company’s expenses dropped. As of March 31, the partnership had cash and cash equivalents of $142.6 million and total debt of $1.1 billion. The company’s net debt-to-adjusted EBITDA ratio was 5.2, and it has extended its debt maturing in November 2019 to November 2022. The partnership’s next debt maturity will now be in 2020.

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Distributions

Golar LNG Partners’ distributable cash flow was $13.3 million in the first quarter. It declared a distribution of $0.58 per unit, unchanged from the previous quarter. The partnership’s coverage ratio is particularly low at 0.32, due to the Golar Spirit‘s zero earnings, the Golar Igloo‘s scheduled seasonal downtime, and reduced earnings from the Golar Grand, Golar Maria, and Golar Mazo. The partnership has a dividend yield of 13.3%. Other LNG-carrier MLPs’ dividend yields are as follows:

  • GasLog Partners (GLOP): 8.7%
  • Höegh LNG Partners (HMLP): 9.9%
  • Dynagas LNG Partners (DLNG): 12.7%
  • Teekay LNG Partners (TGP): 3.2%

Other updates

  • Golar LNG Partners secured a 15-year contract for one of its two available floating storage and regasification units.
  • The company initiated buybacks of common units under a $25 million repurchase program.
  • The company has a backlog of $2.6 billion from its 11 vessels, representing 8.7 revenue backlog years.
  • LNG trade is expected to grow ~30% over the next five years.

To know about how the first quarter went for Golar LNG Partners’ parent company, Golar LNG, read Market Realist’s Why Golar LNG Stock is Down after First-Quarter Earnings.

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