Bermuda: Golar LNG Partners Income Climbs

Golar LNG Partners reported net income attributable to unit holders of $19.8 million and operating income of $33.0 million for the second quarter of 2012, as compared to $18.2 million and $31.9 million, respectively for the second quarter of 2011.

Operating results for the second quarter of 2012 improved compared to the same period in 2011 due largely to lower operating costs offset in part by higher administrative expenses. All vessels operated well throughout the quarter with 100 per cent utilization.

Net interest expenses increased to $7.8 million for the second quarter of 2012 compared to $3.8 million for the same period in 2011. This is principally due to additional interest cost associated with the $222 million loan from Golar LNG Limited in connection with the acquisition of the Golar Freeze.

Other financial items decreased by $4.7 million to a loss of $2.5 million for the second quarter of 2012 compared to the same period in 2011. The variance mainly relates to the changes in non-cash mark-to-market valuations of financial derivative instruments, principally interest rate swaps that are hedges against future interest rate movements.

The Partnership’s Distributable Cash Flow for the second quarter of 2012 was $20.2 million as compared to $19.0 million in the first quarter of 2012. This improvement is mainly due to the reduction in operating costs in the second quarter of 2012 compared to the first quarter offset in part by higher administrative expenses. Operating costs were higher in the first quarter of 2012 partly as a result of annual scheduled maintenance work on the two FSRU vessels operating in Brazil.

Golar Partners declared an increased dividend for the second quarter of $0.44 per unit, representing a 2.3% increase from the first quarter of 2012. The dividend was paid on August 15, 2012.

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LNG World News Staff, August 24, 2012