Hoegh LNG Partners cuts distribution 98%

In a big lesson learned for me I’m taking a big hit on Hoegh LNG Partners. They cut their distribution 98% from $0.44/share to $0.01/share. I knew they were a high risk for cutting their distribution but didn’t know it would end up that bad. It’s a double whammy because after the announcement shareholders are all running for the hills on this one including me. It’s quite the big loss.

Hoegh LNG Partners (NYSE: HMLP) shares fell 55.8% to $7.90 Tuesday afternoon after the partnership announced it cut its quarterly distribution from $0.44 to $0.01 per unit.

The partnership said it ‘needs to conserve its internally generated cash flows to resolve issues related to the ongoing refinancing of the PGN FSRU Lampung credit facility’ and said it expects to use its cash flow to reduce debt levels and strengthen its balance sheet. 

Hoegh LNG Partners focuses on owning, operating, and acquiring floating storage and regasification units (FSRUs), liquefied natural gas (LNG) carriers, and other LNG infrastructure assets under long-term charters.


What I’ll end up doing is rebalancing some of my other holdings where the profits are big so the loss won’t go to waste. I’ll also have to re-evaluate my High Yield portfolio to be a bit less risky. I’m willing to take on risk buy I don’t think I could handle 10 of these. It’s the main reason the High Yield portfolio is only 15% of my total portfolio. If the entire thing is a total loss I retain most of my accumulated wealth. Small hits are fine but a bunch of small hits end up being big.