Golar LNG Partners LP Announces Distribution Reduction and Operational Update
April 01 2020 - 5:49PM
Golar LNG Partners LP (“Golar Partners” or “the
Partnership”) announced today an update regarding its financial
strategy and ongoing initiatives in response to the recent Covid-19
induced deterioration in the macro-economic environment. This
includes a decision to reduce its quarterly common unit
distribution and the initiation of a process to seek an extension
of the maturity date for its Senior Unsecured Bond Issues
maturing in May 2020 (GOLP02, ISIN NO 001 07 36481) (the “GOLP02
Bonds”) and May 2021 (GOLP03, ISIN NO 001 0736481) (the “GOLP03
Bonds”) (together, the “Bond Issues”).
The Partnership’s Board of Directors has
approved a reduction in the quarterly common distribution
to $0.0202 per unit for the quarter ended March 31,
2020 (from $0.4042 per unit in the previous
quarter). Golar Partners believes this reduction is in the
best interest of all of its stakeholders during this unprecedented
time of market volatility. The Partnership will, as a consequence,
retain approximately $109 million of cash flow annually, allowing
the Partnership to focus its capital allocation on debt reduction,
thus strengthening its balance sheet while providing enhanced
financial flexibility to consider capital allocation priorities
over time. The reduction will also result in lower breakeven
re-contracting rates across the Partnership’s fleet.
The Partnership will continue its review of its
structure and strategy to maximize long-term shareholder value once
it has completed the process to extend the Bond Issues.
Golar Partners has also issued a summons for a
meeting of the holders of the GOLP02 Bonds and the GOLP03 Bonds for
the purpose of seeking their approval to an extension of the
maturity of both Bond Issues for 18 months subject to certain terms
and conditions, the details of which are disclosed in a separate
press release.
Golar Partners remains focused on protecting the
health and safety of its employees, customers, vendors, and
communities in order to ensure that it continues to operate safely
and reliably. Together with Golar LNG Limited, Golar Partners has
instigated a number of ongoing operational initiatives in response
to the challenges posed by the Covid-19 pandemic. All of the
Partnership’s assets continue to operate well and in accordance
with their existing contractual arrangements thus safeguarding
Golar Partners $2.1 billion revenue backlog.
FORWARD LOOKING STATEMENTS
This press release contains certain
forward-looking statements concerning future events and the
Partnership’s operations, performance and financial
condition. Forward-looking statements include, without
limitation, any statement that may predict, forecast, indicate or
imply future results, performance or achievements, and may contain
the words “believe”, “anticipate”, “expect”, “estimate”, “project”,
“will be”, “will continue”, “will likely result”, “plan”, “intend”
or words or phrases of similar meanings. Such statements are
generally not historical in nature and specifically include
statements about the Partnership’s plans, strategies, business
prospects and changes and trends in the business in which it
operates. In particular, statements regarding the
Partnership’s cash distributions and common unit repurchase plan
are considered forward looking statements. These statements involve
known and unknown risks and are based upon a number of assumptions
and estimates that are inherently subject to significant
uncertainties and contingencies, many of which are beyond the
Partnership’s control. Actual results may differ materially from
those expressed or implied by such forward-looking statements. New
factors emerge from time to time, and it is not possible for the
Partnership to predict all of these factors. Further, the
Partnership cannot assess the impact of each such factor on its
business or the extent to which any factor, or combination of
factors, may cause actual results to be materially different from
those contained in any forward-looking statement. The Partnership
does not intend to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Partnership’s expectations with respect thereto or any
change in events, conditions or circumstances on which any such
statement is based.
Golar LNG Partners LPHamilton, BermudaApril 1,
2020Questions should be directed to:c/o Golar Management Ltd - +44
207 063 7900Graham RobjohnsStuart Buchanan
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
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