Golar LNG Partners LP (GMLP), a limited partnership company formed by Golar LNG Limited (GLNG) to manage LNG carriers long-term charters, priced its IPO on April 7th, 2011, above the expected range at $22.5 per share and gave a first-day return of 10.4%.
Business Overview (from prospectus)
We are a growth-oriented limited partnership formed by Golar LNG Limited (NasdaqGS: GLNG; OSE: GOL) to own and operate floating storage and regasification units (or FSRUs) and LNG carriers under long-term charters, which we define as charters of five years or more. We intend to leverage the relationships, expertise and reputation of Golar, a leading independent owner and operator of FSRUs and LNG carriers, to pursue growth opportunities in these areas. While we intend to operate our assets under long-term charters with stable cash flows, Golar intends to focus primarily on FSRU and LNG project development, LNG trading and LNG transportation, storage and regasification activities with contract terms and associated cash flows that are more short-term and/or variable in nature.
Offering: 12 million shares at $22.5 per share. The parent Golar LNG limited is offering 100% of the shares and thus the company will not receive any proceeds from this offering.
Total operating revenues for 2010 were $152.6 million, an increase of $32.8 million from $119.9 million in 2009...Voyage expenses were minimal in 2010 at $0.3 million, a decrease of $2 million from 2009...Administrative expenses increased from $4.1 million in 2009 to $4.6 million in 2010...Net income was $57.7 million for 2010, an increase of $12.4 million over the $45.3 million of net income earned in 2009...
While the majority of the existing world LNG carrier fleet is employed on long-term charters, there is competition for the employment of vessels whose charters are expiring and for the employment of vessels which are not dedicated to a long-term contract. Competition for long-term LNG charters is based primarily on price, vessel availability, size, age and condition of the vessel, relationships with LNG carrier users, the quality of LNG carrier users and the experience and reputation of the carrier operator. In addition, vessels may operate in the emerging LNG carrier spot market that covers short-term charters of one year or less during periods of increased competition due to an oversupply of LNG carriers.