Hoegh LNG Partners says to restate earnings
New York-listed Hoegh LNG Partners, a unit of Hoegh LNG, informed on Wednesday it is planning to restate more than two years of financial reports as they should not be relied upon.
The Partnership said the restatement decision comes following the review of certain Indonesian withholding and value added tax payments for the years of 2013, 2014 and the first half of 2015.
The impact of the restatement of the withholding and value added taxes will also affect recognition of certain revenue for reimbursable tax amounts, recognition of the direct financing lease and amortization of deferred debt issuance cost, Hoegh LNG Partners said.
As a result of the identified accounting errors, Hoegh LNG Partners expects to report a material weakness in its internal control over financial reporting.
The Partnership added it is covered by Höegh LNG Holding for all non-budgeted, non-creditable Indonesian value added taxes and non-budgeted Indonesian withholding taxes, including any related impact on cash flow, arising out of such restatement.
If an indemnification payment is received from HLNG, the amount will be recorded as a contribution to equity, the company said.
Hoegh LNG Partners was formed by Norway’s Hoegh LNG to own, operate and acquire FSRUs , LNG carriers and other LNG infrastructure assets under long-term charters.
LNG World News Staff; Image: Hoegh LNG