Hoegh LNG Partners Preferred Units: Still Solid Despite Increased Cash Distributions To Parent - Buy

2025-05-26 13:17:33 ET

Summary

• Höegh LNG Partners financial results continue to benefit from profitable long-term contracts for its FSRU fleet.
• Distributions to preferred unitholders represent only a small part of the company's free cash flow.
• Over the past six months, parent Höegh Evi has extracted more than $100 million in cash from the partnership.
• However, Höegh LNG Partners generates sufficient cash to cover both the parent's increased distribution demands and preferred unit distributions.
• At prevailing prices, investors enjoy a juicy dividend of 13.4% as well as the chance for more than 50% upside in case of redemption. I am reiterating my "Buy" rating on the partnership's preferred units.

Note:

I have covered Höegh LNG Partners LP ( OTC:HMLPF ) previously, so investors should view this as an update to my earlier articles on the company. ...

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