Höegh LNG - Interim results for the quarter ended 30 September 2014

Highlights

  • Total income USD 33.8 million, down from USD 36.7 million in the third quarter 2013
  • Operating loss before depreciation USD 3.9 million, compared to an operating profit before depreciation of USD 1.3 million in the third quarter 2013. The adverse development is mainly dye to non-recurring expenses
  • Loss before tax USD 15.9 million, compared to a loss of USD 2.6 million in the third quarter 2013
  • 12 August 2014, Höegh LNG Partners LP, a limited partnership formed by Höegh LNG Holdings Ltd., closed the initial public offering of 11,040,000 common units in the partnership raising USD 220.8 million in gross proceeds. The units began trading at the New York Stock Exchange (NYSE) under the ticker "HMLP" on 7 August 2014
  • PGN FSRU Lampung commenced commercial operations, received its first cargo of LNG through a ship-to-ship transfer and entered the final commissioning phase. During the commissioning phase, the FSRU experienced problems with the regasification system and had to temporarily cease operations
  • FSRU Independence was employed on a spot charter as an LNG carrier and idle for the rest of the quarter due to a very soft spot market
  • Gas Natural exercised its option to extend the charter period for LNG Libra for twelve months with redelivery at year-end 2015
  • Höegh LNG continued to make progress in developing the barge based FLNG project located in North America

Subsequent Events

  • FSRU Independence arrived in Klaipeda, Lithuania, on schedule and started the commissioning phase under its ten year contract with Klaipedos Nafta
  • PGN FSRU Lampung resumed operations after resolving the problems with the regasification system and achieved the Certificate of Acceptance from PGN with effect from 30 October 2014
  • On 1 November 2014, Höegh LNG signed an FSRU contract with Sociedad Portuaria El Cayao S.A. E.S.P. (SPEC) for a new LNG import terminal in Colombia with expected start-up mid-2016  
  • On 3 November 2014, Höegh LNG signed a five year FSRU contract with the government owned EGAS of Egypt with a scheduled start-up by the end of the first quarter 2015
  • On 4 November 2014, Höegh Gallant was delivered from Hyundai Heavy Industries and directly employed on a short term charter as an LNG carrier. This is the third newbuild FSRU delivered to the Company during the last six months
  • Höegh LNG placed an order for a fifth FSRU at Hyundai Heavy Industries with delivery first quarter 2017

"HLNG's Q3 results are affected by non-recurring expenses from moving two FSRU's from construction into their operational phase, with some technical challenges during the start-up and commissioning phase of the FSRU Lampung, and I am very pleased that these where identified and resolved by our Lampung team, and the FSRU is now in operation under her 20 year charter. The FSRU Independence arrived Klaipeda on schedule and is now in the commissioning phase. In addition we have been very successful in securing new business for the two remaining newbuilt FSRU's, having secured long term contract for the Höegh Gallant and also FSRU#4. We have further started our next expansion into the FSRU segment, by placing an order for a 5th FSRU at HHI in Korea."

Sveinung J.S. Støhle
President and Chief Executive Officer


About Höegh LNG

Höegh LNG is a provider of floating LNG infrastructure services, offering regasification, transportation and production services under long-term contracts.  The company operates a fleet of five floating storage and regasification units (FSRUs) that act as floating LNG import terminals, and four LNG transportation vessels. In addition, Höegh LNG has two new FSRUs on order and has developed solutions for floating LNG production (FLNG).  Höegh LNG is a Bermuda based company with established presence in Oslo, Singapore, London, Miami and Jakarta.  The company employs approximately 95 office staff and 500 seafarers.

Contacts:

Sveinung J. S. Støhle, President and Chief Executive Officer, Telephone +47 975 57 402
Steffen Føreid, Chief Financial Officer, Telephone + 47 975 57 406
Birgitte Hjertum, VP Strategy and Investor Relations, Telephone +47 975 57 432

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act or the Continuing Obligations of Oslo Børs.