Hoegh LNG Partners LP (HMLP) 2022 Q1 法說會逐字稿

Good morning, and welcome to the Höegh LNG Partners First Quarter 2021 (sic) [2022] Earnings Conference Call. (Operator Instructions) Note this event is being recorded.

早安，歡迎參加 Höegh LNG Partners 2021 年第一季（原文如此）[2022 年] 業績電話會議。 （操作員指示）請注意，此活動正在錄製中。

I would now like to turn the conference over to Havard Furu, Chief Financial Officer and Interim CEO. Please go ahead.

現在，我想將會議交給財務長兼代理執行長 Havard Furu。請開始。

Thank you, Andrea, and good morning, ladies and gentlemen, and welcome to Höegh LNG Partners earnings call for the first quarter of 2022. My name is Havard Furu, and I am the Chief Financial Officer of the partnership, and I also fill the role as Interim CEO. For your convenience, this webcast and presentation is available on our website.

謝謝您，安德里亞。女士們，先生們，早安！歡迎參加Höegh LNG Partners 2022年第一季財報電話會議。我叫Havard Furu，是公司的財務官，同時也擔任臨時執行長。為了方便您觀看，本次網路直播和簡報可在我們的網站上觀看。

Turning to Page 2 in today's presentation, we have an overview of the content of the presentation. I will start with some highlights from the first quarter then cover the quarterly financials. Thereafter, I will give a market update before summarizing the presentation. You will have the opportunity to ask questions at the end of the call.

今天示範的第二頁是內容概述。我將首先回顧第一季的一些亮點，然後介紹季度財務數據。之後，我將介紹市場動態，最後總結本次示範。電話會議結束時，您可以提問。

Before we start, please take note of the forward-looking statements on Page 3 and a glossary on Page 4. Then turning to Page 5 and the highlights. I'm pleased to report that the fleet had 100% availability in the quarter. This resulted in total revenues of $35.3 million and a segment EBITDA of $33.4 million in the quarter.

在開始之前，請注意第3頁的前瞻性陳述和第4頁的詞彙表。然後翻到第5頁及其要點。我很高興地報告，本季機隊可用率達100%。這導致本季總營收達到3,530萬美元，分公司EBITDA達到3,340萬美元。

As of today, the partnership has not been materially impacted by the COVID-19 pandemic. The Höegh LNG Group has taken steps to mitigate risks from COVID-19 and ensure the health and safety of our crews and staffs, which is our highest priority. Thanks to the hard work of our people onboard the vessels and onshore, the fleet is operating as expected despite the pandemic.

截至目前，雙方的合作關係尚未受到新冠疫情的實質影響。 Höegh LNG 集團已採取措施，降低新冠疫情帶來的風險，並確保船員和工作人​​員的健康和安全，這是我們的首要任務。由於採用船上和岸上員工的辛勤工作，儘管疫情肆虐，船隊仍按預期正常運作。

The Höegh Gallant commenced FSRU operation in Jamaica for New Fortress Energy towards the end of the first quarter. Despite the pending arbitration with the charterer under the lease and maintenance agreement for the PGN FSRU Lampung, both parties have continued to perform their respective obligations under the agreement. No assurance can be given at this time as to the outcome of the dispute with the charterer.

「Höegh Gallant」號於第一季末開始在牙買加為New Fortress Energy公司營運FSRU。儘管根據「Lampung」號PGN FSRU的租賃和維護協議，與租船人之間尚有未決的仲裁，但雙方仍在繼續履行各自在協議下的義務。目前無法保證與租船人之間爭議的結果。

The refinancing of the Cape Ann debt facility, which was agreed on December 15, 2021, is expected to close on June 1, 2022. Today, the partnership announced it has entered into a definitive merger agreement with Höegh LNG, pursuant to which Höegh LNG will acquire, for cash, all of the outstanding publicly held common units of the partnership at a price of $9.25 per common unit. I will speak more about this on the next page.

安角債務融資的再融資於2021年12月15日達成，預計2022年6月1日完成。今天，該合夥企業宣布已與Höegh LNG達成最終合併協議，根據該協議，Höegh LNG將以現金收購該合夥企業所有已發行的公開持有普通股，每股價格為9.25美元。我將在下一頁詳細介紹此事。

Turning to Page 6, we cover the merger agreement with Höegh LNG. As mentioned, pursuant to the merger agreement, Höegh LNG will acquire, for cash, all of the outstanding publicly held common units of the partnership at a price of $9.25 per common unit. The revised price represents an increase of $5 when compared to the offer of $4.25 per common unit made by Höegh LNG on December 3, 2021, and a premium of 35% to the closing price of the partnership's common units of $6.85 per unit yesterday.

翻到第6頁，我們介紹了與Höegh LNG的合併協議。如上所述，根據合併協議，Höegh LNG將以現金收購該合夥企業所有已發行的公開持有普通股，收購價格為每股9.25美元。修訂後的價格較Höegh LNG於2021年12月3日提出的每股4.25美元的報價上漲了5美元，較該合夥企業每股6.85美元的收盤價溢價35%。

In connection with the transaction, the Board of Directors of the partnership directed the Conflicts Committee of the Board of Directors, comprised solely of directors unaffiliated with Höegh LNG, to consider Höegh LNG's offer. Following a period of discussion with Höegh LNG and its advisers, the Conflicts Committee approved the merger agreement and determined that the merger agreement and the transaction contemplated thereby are in the best interest of the partnership and the holders of the partnership's common units unaffiliated with Höegh LNG.

就此交易而言，合夥企業董事會指示董事會利益衝突委員會（該委員會僅由與 Höegh LNG 無關的董事組成）考慮 Höegh LNG 的報價。在與 Höegh LNG 及其顧問進行一段時間的討論後，利益衝突委員會批准了合併協議，並認定合併協議及其擬議交易符合合夥企業及其與 Höegh LNG 無關聯的普通股持有人的最佳利益。

Based on the recommendation of the Conflicts Committee, the Board of Directors unanimously approved the merger agreement and recommended that the partnership common unitholders approve the merger. The merger is expected to close in the second half of 2022 and is subject to approval of the merger agreement and the transaction contemplated thereby by a majority of the outstanding common units of the partnership and certain regulatory filings and customary closing conditions.

根據利益衝突委員會的建議，董事會一致批准了合併協議，並建議合夥企業普通股持有人批准此次合併。此次合併預計將於2022年下半年完成，但須經合夥企業多數已發行普通股持有人批准合併協議及其擬進行的交易，並須提交相關監管文件並滿足慣例成交條件。

Höegh LNG owns 45.7% of the common units and has entered into a support agreement with the partnership, committing to vote its common units in favor of the merger. The Series A preferred units of the partnership will remain outstanding.

Höegh LNG 持有 45.7% 的普通股，並已與該合夥企業簽訂了支持協議，承諾以其普通股投票支持合併。該合夥企業的 A 系列優先股將繼續流通。

Turning to Page 7, we are showing an overview of the partnership's modern assets. The partnership has approximately 8.5 years average remaining contract length and full contract coverage until late 2026.

翻到第7頁，我們展示了該合夥企業的現代資產概覽。該合夥企業剩餘合約平均期限約為8.5年，合約有效期至2026年底。

Turning to Page 9. We have the key figures for the quarter showing an operating performance which was weaker than in the same quarter of 2021, with a segment EBITDA of $33.4 million in the quarter compared to $34.5 million in the first quarter of 2021. The decrease is mainly due to increased administrative expenses. The limited partners' interest in the net result was $16.3 million in the quarter, down from $20 million in the same quarter of 2021.

翻到第9頁。本季關鍵數據顯示，營運表現低於2021年同期，本季分公司EBITDA為3,340萬美元，2021年第一季為3,450萬美元。下降的主要原因是管理費用增加。有限合夥人在本季淨利潤中的權益為1,630萬美元，低於2021年同期的2,000萬美元。

Turning to Page 10, we are showing the development in key measures over time. And as you can see from the graphs, the operating performance remains relatively stable. Two quarters have marked negative deviations: the second quarter of 2019 and the second quarter of 2021.

翻到第10頁，我們展示了關鍵指標隨時間的變化。如圖表所示，營運績效保持相對穩定。有兩個季度出現了明顯的負偏差：2019年第二季和2021年第二季。

In the first instance, the deviation was primarily caused by the dry docking and maintenance of the Höegh Gallant in 2019. The deviation in the second quarter of 2021 was primarily caused by a tax provision for previous periods following a result of a tax audit which we disagreed to and have disputed.

首先，偏差主要是由於 2019 年 Höegh Gallant 號的乾船塢維護造成的。 2021 年第二季的偏差主要是由於稅務審計結果導致的先前期間的稅務撥備造成的，我們不同意該審計結果並對此提出異議。

Turning to Page 11. Here, we are showing the income statement in more detail. Total revenues of $35.3 million in the quarter was about $0.5 million more than in the same period in 2021. Vessel operating expenses of $6.2 million in the quarter were almost the same as in the same period last year.

請翻到第11頁。這裡我們更詳細地展示了損益表。本季總收入為3530萬美元，比2021年同期增加了約50萬美元。本季船舶營運費用為620萬美元，與去年同期基本持平。

Administrative expenses of $4.1 million in the quarter were $1.4 million higher than in the first quarter 2021. The increase is primarily caused by higher consultancy fees and audit fees. Equity in earnings of joint ventures for the quarter was $8.6 million, a decrease from $11.1 million for the same period of 2021.

本季管理費用為410萬美元，較2021年第一季增加140萬美元。增幅主要源自於諮詢費和審計費的增加。本季合資企業權益收益為860萬美元，較2021年同期的1,110萬美元下降。

Unrealized gains on derivative instruments impacted the equity in earnings of joint ventures for the first quarter of 2022 and 2021, respectively. Excluding these derivative items, equity in earnings of joint ventures would have been $3.8 million in the -- this quarter, an increase from $3.4 million for the same period in 2021.

衍生性工具的未實現收益分別影響了2022年和2021年第一季合資企業收益中的權益。剔除這些衍生項目，本季合資企業收益中的權益應為380萬美元，高於2021年同期的340萬美元。

Total financial expense of $5.5 million in the quarter equals a decrease of $0.7 million from the same quarter of 2021. Income tax expense of $2.8 million in the quarter represents an increase of $1.1 million from the same quarter of 2021.

本季總財務支出為 550 萬美元，比 2021 年同期減少 70 萬美元。本季所得稅支出為 280 萬美元，比 2021 年同期增加 110 萬美元。

Turning to Page 12. The balance sheet has not changed much since year-end 2021, with total liabilities and equity standing at $1 billion at the end of the quarter. The $85 million revolving credit facility from Höegh LNG, which is currently drawn with $24.5 million, is now classified as current liabilities as it matures on January 1, 2023.

翻到第12頁。自2021年底以來，資產負債表變化不大，本季末負債及股東權益總額為10億美元。 Höegh LNG提供的8,500萬美元循環信貸額度，目前已提取2,450萬美元，現已歸類為流動負債，因為該額度將於2023年1月1日到期。

Turning to Page 14 and the LNG market. Global LNG trade rose 8% in the first quarter of 2022 compared to the first quarter 2021. The LNG market witnessed a significant shift in regional demand, with Europe in the driving seat. The European LNG import increased with an impressive 64% in the quarter -- first quarter of 2022 compared to the first quarter of 2021, and LNG prices continue to be high. The high demand for LNG in Europe is, to a large degree, driven by uncertainty around access to Russian pipeline gas.

翻到第14頁，看看液化天然氣市場。 2022年第一季，全球液化天然氣貿易量較2021年第一季成長了8%。液化天然氣市場見證了區域需求的顯著轉變，其中歐洲佔據主導地位。 2022年第一季度，歐洲液化天然氣進口量較2021年第一季大幅增加了64%，液化天然氣價格持續高漲。歐洲對液化天然氣的高需求在很大程度上是由俄羅斯管道天然氣供應的不確定性所驅動的。

Turning to Page 15, we have 2 graphs illustrating the projected development in global LNG markets from now until 2026. In the chart to the left, the incremental volume supply is projected for the most part to come from the USA, Russia and the Middle East.

翻到第 15 頁，我們有兩張圖表展示了從現在到 2026 年全球液化天然氣市場的預測發展。在左側的圖表中，預計增量供應主要來自美國、俄羅斯和中東。

The recent surge in demand and higher LNG prices have led to more long-term LNG sale and purchase agreements concluded lately, bringing potential new liquefaction capacity closer to FID. This would potentially add to the long-term supply growth at the back end of this period. The graph to the right shows the projected growth in LNG imports globally. As you can see, global LNG demand growth is projected to remain robust, mainly driven by the Asian region and Europe.

近期需求激增和液化天然氣價格上漲，導致近期達成了更多長期液化天然氣買賣協議，使潛在的新增液化天然氣產能更接近最終投資決定（FID）。這可能會在本期末增加長期供應成長。右圖顯示了全球液化天然氣進口量的預期成長。如您所見，全球液化天然氣需求成長預計將保持強勁，主要由亞洲地區和歐洲推動。

In the current geopolitical situation, European countries seem to be determined to secure both LNG and LNG import capacity to safeguard the energy supply and shift away from Russian pipeline gas. This has recently led to an increased demand for FSRUs as import facilities from countries such as Germany, the Netherlands, Italy, Poland, Finland and others typically looking to secure a large capacity FSRUs with prompt delivery.

在當前的地緣政治情勢下，歐洲國家似乎決心確保液化天然氣（LNG）和液化天然氣進口能力，以保障能源供應，並減少對俄羅斯管道天然氣的依賴。這導致近期對FSRU的需求增加，因為來自德國、荷蘭、義大利、波蘭、芬蘭等國的進口設施通常都希望獲得大容量且能及時交付的FSRU。

With that, I turn to Page 17 for a summary, where I would like to highlight the following: 100% availability of the fleet during the quarter; segment EBITDA of $33.4 million in the quarter; refinancing of the Cape Ann debt facility expected to close on June 1, 2022; merger agreement with Höegh LNG pursuant to which Höegh LNG will acquire, for cash, all of the outstanding publicly held common units of the partnership at a price of $9.25 per common unit.

接下來，我翻到第 17 頁查看摘要，我想強調以下幾點：本季度船隊可用率達到 100%；本季度分部 EBITDA 為 3340 萬美元；Cape Ann 債務融資預計將於 2022 年 6 月 1 日完成；與 Höegh LNG 達成協議，根據該協議，Höegh LNG 將以所有普通合夥的價格合併為本，已發行現金的普通合夥。 9.25 美元。

And with that, I think we will open for questions from the audience.

我想，接下來我們就可以開始回答觀眾的提問了。

(Operator Instructions) And our first question will come from Chris Wetherbee of Citi.

（操作員指示）我們的第一個問題來自花旗的克里斯·韋瑟比 (Chris Wetherbee)。

Great. Maybe the first question is just on the transaction. So curious if you could sort of help us understand the $5 premium relative to the last offer price, if there's some basis that was agreed upon on the back of that. Or how you think about sort of capturing that premium and, ultimately, how it's justified given this obviously strong market outlook that you have?

太好了。也許第一個問題只是關於交易的。所以，您能否幫我們理解一下，相對於上次報價，溢價5美元，這背後是否有一些商定的依據？或者，您如何看待這種溢價？考慮到您目前明顯強勁的市場前景，這種溢價的合理性如何？

Yes. Chris. And as you've seen, the transaction was announced this morning. And as we say in the press release, it has been an ongoing process, obviously, between the Conflicts Committee and Höegh LNG, negotiating and arriving at what has been agreed as the price. Details around this will follow in the proxy statement that will be prepared and published to the shareholders in a few weeks from now. So I need to wait with further details until the proxy statement is complete.

是的，克里斯。如您所見，交易已於今天上午宣布。正如我們在新聞稿中所說，衝突委員會和Höegh LNG之間顯然一直在進行談判，最終達成了商定的價格。相關細節將在幾週後準備好並發布給股東的代理聲明中公佈。因此，我需要等到代理聲明完成後才能公佈更多細節。

Okay. Okay. And then in terms -- and I know back half close is what we're thinking about. Do you have a rough sense of how many months, you think, you might need? Obviously, we need a shareholder vote, but then probably closing relatively shortly after that. Is this something that can get done in the third quarter? Or are we thinking fourth quarter?

好的。好的。然後就條款而言——我知道我們正在考慮的是完成一半的收尾工作。您大概估計一下大概要幾個月？顯然，我們需要股東投票，但之後可能很快就會完成。這可以在第三季完成嗎？還是我們考慮在第四季完成？

It's a bit hard to tell. I mean, we -- first of all, the proxy statement needs to be prepared and then approved by SEC for filing. That could take 1 to 2 months, and then there will be a shareholder meeting, as you say. So we think third quarter could be possible, but it's also likely that it slides into the fourth quarter. That's why we say during the second half.

這有點難說。我的意思是，首先，我們需要準備代理聲明，然後提交給美國證券交易委員會（SEC）。這可能需要1到2個月的時間，然後還要召開股東大會，正如你所說。所以我們認為第三季有可能，但也有可能延到第四季。這就是為什麼我們說下半年。

Okay. That's helpful. And then, I guess, the last question, just sort of taking a step back and thinking about the market a little bit more broadly. So clearly, significant demand in the market for FSRUs. A lack of capacity and, obviously, the geopolitical situation in Europe has changed the perspective the last several months.

好的。這很有幫助。我想，最後一個問題，退一步來說，讓我們更廣泛地思考市場。顯然，FSRU 市場需求旺盛。但過去幾個月，由於產能不足，以及歐洲的地緣政治局勢，市場前景發生了變化。

How does Höegh take advantage of that? So what are sort of the strategic opportunities that you guys are looking at to try to leverage this, just given the fact that you have 100% utilized fleet as it stands right now? I know that the merger is happening. So maybe this is a moot point, but I'm kind of curious about how you guys think about taking advantage (inaudible) could persist for some time.

Höegh 是如何利用這一點的？考慮到你們目前機隊利用率達到 100%，你們正在尋找哪些策略機會來利用這一點？我知道合併正在進行中。所以這也許是一個沒有實際意義的問題，但我有點好奇，你們如何看待利用（聽不清楚）的優勢能夠持續一段時間。

Yes, it's a good question. And as you know, the partnership has full contract coverage until 2026. So there's not much the partnership can do with existing assets. You may have seen that the parent has concluded 2 contracts into Europe recently. It has announced 2 contracts to Germany.

是的，這是個好問題。如您所知，該合夥企業的合約有效期至2026年。因此，該合夥企業利用現有資產能做的事情不多。您可能已經看到，母公司最近簽訂了兩份與歐洲的合約。它已經宣布了兩份與德國的合約。

So the parent had assets available for short or, we call, almost immediate start-ups. So the parent has been able to utilize that market. And unfortunately, the -- or the partnership has full contract coverage so there's not much to do with that.

因此，母公司擁有可用於短期或幾乎立即啟動的新創公司的資產。因此，母公司能夠利用這個市場。但不幸的是，合夥企業或合夥企業已經簽訂了全額合同，因此母公司在這方面沒有太多可做的。

This concludes our question-and-answer session. I would like to turn the conference back over to Havard Furu for any closing remarks.

我們的問答環節到此結束。我想將會議交還給 Havard Furu，請他發表閉幕致詞。

Okay. Thank you. With that, I would like to thank everyone for dialing in and participating on the call. Thank you, and have a good day.

好的。謝謝。最後，我要感謝大家撥通電話參與這次電話會議。謝謝大家，祝大家有美好的一天。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

會議現已結束。感謝您參加今天的演講，現在您可以斷開連接了。