Höegh LNG Partners, the Bermuda-based limited partnership formed by Norway’s Höegh LNG, reported a 75.2 percent drop in its net income in the second quarter of this year.
The MLP reported net income for the three months ended June 30 of $4.1 million, as compared to $16.4 million in the corresponding period.
The net income for the period was impacted by “unrealized gains (losses) on derivative instruments mainly on the Partnership’s share of equity in earnings (losses) of joint ventures,” Höegh LNG Partners said on Thursday.
Excluding these items, net income for the second quarter would have been $7.9 million, an increase of 19.7% on year primarily due to the inclusion of the results of the FSRU Höegh Gallant , the MLP said.
According to Höegh LNG Partners, the Höegh Gallant that serves as an LNG import terminal in Egypt was on reduced hire for about two days of off-hire in second quarter of 2016.
“Due to an issue identified in the scheduled maintenance inspections in the first quarter of 2016, additional maintenance for the Höegh Gallant occurred in the second quarter of 2016.”
Operating income for the second quarter was $11.3 million, a decrease of $7.4 million from the corresponding period in 2015.
Adjusted EBITDA was $25.2 million for the three months ended June 30, up from $16 million in the year before, Höegh LNG Partners said.