Golar LNG Partners L.P.: Golar LNG Partners LP: Interim Results for the Period Ended March 31, 2014

Golar LNG Partners L.P.: Golar LNG Partners LP: Interim Results for the Period
                             Ended March 31, 2014

Highlights

  oGolar LNG Partners LP ("Golar Partners" or the "Partnership") reports net
    income attributable to unit holders of $32.7 million and operating income
    of $53.8 million for the first quarter of 2014 ("the first quarter")
  oGenerated distributable cash flow of $36.1 million for the first quarter
    of 2014 with a coverage ratio of 1.06
  oDeclared a first quarter 2014 distribution of $0.5225 per unit
  oCompleted the acquisition of the Floating Storage and Regas Unit ("FSRU"),
    Golar Igloo, from Golar LNG Limited ("Golar") for $310 million

Financial Results Overview

Golar Partners  reports  net income  attributable  to unit  holders  of  $32.7 
million and  operating income  of  $53.8 million  for  the first  quarter,  as 
compared to  net income  attributable to  unit holders  of $47.6  million  and 
operating income of $54.7 million for the fourth quarter of 2013 ("the  fourth 
quarter") and net  income attributable to  unit holders of  $30.3 million  and 
operating income of $45.2 million for the first quarter of 2013.

The improvement  in  operating  income over  the  same  period in  2013  is  a 
reflection of  three  factors. First,  the  Golar Spirit  commenced  2013  in 
drydock and this resulted in approximately  57 days of offhire and  associated 
positioning costs  during  that  quarter.  Secondly,  during  the  intervening 
period, there was  a biennial  uplift to the  capital component  of the  Golar 
Spirit and Golar Winter and a further  increase in the charter rate for  Golar 
Winter also took effect to compensate  for the completion of the  modification 
works. Thirdly, the Partnership completed the acquisition of the Golar  Maria 
on February 7,  2013 and  in so  doing assumed  the operating  income of  this 
vessel for the remainder of the quarter. First quarter 2014 operating  income 
incorporates a full quarter's contribution from the Golar Maria. The  improved 
results are partially offset by  increased depreciation and amortization as  a 
consequence of the acquisition of  the Golar Maria, the additional  investment 
in Golar Winter modifications and four vessel drydocks over the intervening 12
months.

Taking account of the reduced number of calendar days in the first quarter and
four day revenue contribution from the recently acquired Golar Igloo,  revenue 
net of  voyage expenses  was consistent  with the  fourth quarter.  Operating 
expenses increased by  $1 million largely  due to an  increase in repairs  and 
maintenance expenditure.  Administration  expenses were,  however,  marginally 
lower in the first quarter by $0.1 million.

As anticipated, net interest expense decreased  to $9.6 million for the  first 
quarter of  2014  compared  to  $10.5 million  for  the  fourth  quarter.  The 
reduction primarily reflects  the expiry  of a relatively  high cost  interest 
rate swap that matured during November together with reduced interest  expense 
in respect of two revolving facilities that were paid down at the end of  2013 
using $70 million  of the December  5th 2013 equity  issue proceeds.  Shortly 
before completion  of  the Igloo  acquisition  on March  28,  these  revolving 
facilities were  redrawn to  part fund  the  purchase. As  at March  31,  the 
Partnership has undrawn facilities of $65 million.

Other financial items for  the first quarter recorded  a loss of $6.2  million 
compared with a  gain of  $1.5 million in  the fourth  quarter. This  included 
non-cash mark-to-market  valuation  losses  on interest  rate  swaps  of  $1.8 
million in the first quarter compared to gains on interest rate swaps of  $6.0 
million in the fourth quarter.

Tax at $2.8  million for the  first quarter has  normalized after recording  a 
credit of $4.3 million in respect  of the fourth quarter following a  year-end 
reassessment of 2013 tax expense.

The Partnership's Distributable Cash  Flow^1 for the  first quarter was  $36.1 
million as compared to  $44.8 million in the  fourth quarter and the  coverage 
ratio was 1.06 as compared to 1.32 for the fourth quarter. The elevated fourth
quarter coverage  is primarily  a result  of the  2013 tax  credit. This  was 
offset to some  extent by  the negative carry  on the  additional 5.2  million 
units issued on  December 5th. The  lower first quarter  coverage ratio  also 
reflects distributions paid on the additional units issued ahead of the  Igloo 
acquisition. If  distributions paid  on  these new  units are  excluded,  the 
coverage  ratio  in  the  first   quarter  would  have  been  1.16.   Declared 
distributions are payable on all units as at the record date.

On April  24, 2014,  Golar  Partners declared  a  distribution for  the  first 
quarter of 2014 of $0.5225 per unit, which  was paid on May 14, 2014 on  total 
units of 62,870,335.

Golar Igloo Acquisition

In December 2013, the Partnership announced its intention to acquire interests
in the company  that owns and  operates the FSRU,  Golar Igloo ("Igloo")  from 
Golar for  a  purchase  price  of  $310  million.  The  Igloo,  which  is  the 
Partnership's first newbuild FSRU, was delivered by Samsung on February 5  and 
immediately proceeded to Singapore for bunkering and storing up before leaving
for Kuwait on February 14. The  FSRU arrived off Kuwait and was  successfully 
commissioned for her  new charterers,  the Kuwait  National Petroleum  Company 
("KNPC"), during March. Upon completion of the commissioning and satisfaction
of the remaining closing conditions, Golar Partners concluded the  acquisition 
on March 28.  The FSRU is  expected to generate  annual contracted  revenues, 
after deducting voyage,  commission and  operating expenses  of between  $32.0 
million to $34.0 million. This estimate does not include any revenues that the
Igloo may earn under short-term charters for the three-month period each  year 
during which the Igloo is not providing FSRU services to KNPC under  charter. 
The Board  is  pleased  that  Golar  was  able  to  successfully  arrange  the 
commissioning cargo for  the Igloo  and the Partnership  hopes to  be able  to 
assist KNPC with the transportation of future cargo acquisitions ahead of each
March regas season.

The Partnership financed the acquisition of the Igloo by assuming debt on  the 
vessel amounting to $161.3 million and the remainder from the net proceeds  of 
its fourth follow-on equity offering that completed in December 2013.

^1Distributable cash flow is a non-GAAP financial measure used by investors to
measure the performance of master limited partnerships. Please see Appendix A
for a reconciliation to the most directly comparable GAAP financial measure.

Financing and Liquidity

As of March 31, 2014, the Partnership  had cash and cash equivalents of  $48.9 
million and undrawn revolving credit facilities of $65 million. Total debt and
capital lease obligations net  of restricted cash was  $1,113.5 million as  of 
March 31, 2014.

Based on the above  debt amount and annualized^2  first quarter 2014  adjusted 
EBITDA^3,Golar Partners has a debt to  adjusted EBITDA multiple of 3.9  times. 
This multiple is expected to fall in the second quarter having been  adversely 
impacted in the  first quarter  by the assumption  of the  Igloo related  debt 
without a corresponding full quarter's contribution to EBITDA.

Included within the current portion of long term debt is an $83.3 million debt
facility in respect  of the  Golar Maria that  matures in  December 2014.  The 
Partnership plans to refinance this facility ahead of its expiration and is in
discussions with a number of banks with a view to achieving the most effective
capital structure. The Board is confident that the facility can be  refinanced 
at attractive terms.

As of March 31, 2014, Golar Partners  had interest rate swaps with a  notional 
outstanding value  of approximately  $1,211 million  (including swaps  with  a 
notional value of $227.2  million in connection  with the Partnership's  bonds 
but  excluding   $100  million   of  forward   starting  swaps)   representing 
approximately 109%  of  total  debt  and capital  lease  obligations,  net  of 
restricted cash. Whilst  the Partnership is  currently over-hedged, this  will 
normalize in the second quarter when  $130 million swaps mature between  April 
and May 2014. The average fixed interest rate of swaps related to bank debt is
approximately 2.3%  with average  maturity of  approximately 2.8  years as  of 
March 31, 2014.

As of March  31, 2014,  the Partnership had  outstanding bank  debt of  $887.5 
million with average  margins, in addition  to LIBOR or  fixed swap rates,  of 
approximately 2.3%. In addition, the  Partnership has bonds of $217.1  million 
with a fixed rate of 6.485%.

^2Annualized means the figure for the quarter multiplied by 4.
^3Adjusted EBITDA:  Earnings before  interest, other  financial items,  taxes, 
non-controlling interest, depreciation and amortization. Adjusted EBITDA is  a 
non-GAAP financial  measure  used by  investors  to measure  our  performance. 
Please see Appendix  A for a  reconciliation to the  most directly  comparable 
GAAP financial measure.

Outlook

The Partnership  is pleased  to have  completed the  acquisition of  theGolar 
Igloo in March  2014 which also  adds a five  year contract with  KNPC to  the 
revenue backlog which  in total now  stands at  $2.5 billion as  at March  31, 
2014. As a  result of the  acquisition management have  guided that they  will 
recommend to the Board a distribution increase of between $0.09 and $0.11  per 
unit per annum,  approximately a 4.5%  increase, with effect  from the  second 
quarter of 2014.

During  2013,  Golar  LNG  also  contracted  theFSRU,  Golar  Eskimo,to  the 
Government of Jordan. The vessel will  be moored at a purpose built  structure 
that is to be constructed by the Aqaba Development Corporation off the Red Sea
port of Aqaba. The Golar  Eskimo is scheduled to be  ready for service in  the 
latter part of the  fourth quarter 2014  and its ten year  contract is due  to 
commence during the first quarter of 2015. This vessel will also be offered to
the Partnership to acquire.

Golar  Partners  fleet  has  performed  well  during  the  quarter  with  100% 
utilization underlying a strong operating earnings result. Without the  impact 
of the 5.2 million units issued to finance the Igloo the coverage ratio  would 
have been 1.16  as compared  to the  actual ratio  of 1.06.  Earnings for  the 
second quarter  of 2014  are expected  to  be positively  impacted by  a  full 
quarter's contribution from the Igloo as compared to just 4 days in the  first 
quarter.

The Partnership is  also in  a strong  financial position.  Adjusting for  the 
Igloo debt assumed at the end of the  first quarter and the Igloo's 4 days  of 
earnings, the net debt to EBITDA ratio would have been 3.4.

With solid  operating  performance,  good  coverage  and  a  strong  financial 
position, Golar Partners is well positioned to make further acquisitions  even 
without raising  additional  equity. These  include  the likely  Golar  Eskimo 
acquisition as  well as  further  Golar LNG  carriers, FSRUs  and  potentially 
long-term contracted  floating  liquefaction  assets.  This  growth  potential 
underpins the Board's confidence in  the Partnership's ability to continue  to 
increase its earnings and distributions over time.

May 28, 2014
Golar LNG Partners L.P.
Hamilton, Bermuda.

Questions should be directed to:
C/o Golar Management Ltd - +44 207 063 7900
Brian Tienzo or Graham Robjohns

Golar LNG Partners Interim Results for the Period Ended March 31 2014

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Source: Golar LNG Partners L.P. via Globenewswire
HUG#1789193
 
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