Highlights
Teekay GP L.L.C., the general partner of Teekay LNG Partners L.P.
(Teekay LNG or the Partnership) (NYSE:TGP), today reported the
Partnership’s results for the quarter and year ended
December 31, 2017.
|
Three Months Ended |
Year Ended |
|
December 31,2017 |
September 30,2017 |
December 31,2016 |
December 31,2017 |
December 31,2016 |
(in
thousands of U.S. Dollars) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
GAAP FINANCIAL
COMPARISON |
|
|
|
|
|
Voyage revenues |
126,307 |
|
104,285 |
|
100,774 |
|
432,676 |
|
396,444 |
|
Income from vessel
operations |
62,378 |
|
10,322 |
|
38,010 |
|
148,649 |
|
153,181 |
|
Equity income |
2,992 |
|
1,417 |
|
9,728 |
|
9,789 |
|
62,307 |
|
Net income (loss)
attributable to the partners and preferred unitholders |
39,877 |
|
(18,896 |
) |
84,411 |
|
33,965 |
|
140,451 |
|
NON-GAAP FINANCIAL
COMPARISON |
|
|
|
|
|
Total cash flow from
vessel operations (CFVO) (1) |
126,833 |
|
107,254 |
|
114,534 |
|
449,550 |
|
480,063 |
|
Distributable cash flow
(DCF) (1) |
52,054 |
|
40,224 |
|
50,199 |
|
176,128 |
|
234,995 |
|
Adjusted
net income attributable to the partners and preferred unitholders
(1) |
33,972 |
|
20,925 |
|
28,958 |
|
93,850 |
|
148,982 |
|
(1) These are non-GAAP financial
measures. Please refer to “Definitions and Non-GAAP Financial
Measures” and the Appendices to this release for definitions of
these terms and reconciliations of these non-GAAP financial
measures as used in this release to the most directly comparable
financial measures under United States generally accepted
accounting principles (GAAP).(2) Based on the
Partnership’s 50 percent ownership interests in the six ARC7 LNG
carrier newbuildings.
GAAP net income and non-GAAP adjusted net income
for the three months ended December 31, 2017, compared to the same
period of the prior year, were positively impacted by the
deliveries of six LNG and LPG carrier newbuildings between February
and November 2017; commencement of short-term charter contracts for
certain of the vessels in the Partnership’s 52 percent-owned joint
venture with Marubeni (the Teekay LNG-Marubeni Joint Venture); and
recognition of the prepaid lease payments of $10.7 million received
from IM Skaugen SE (Skaugen) in prior periods. These increases were
partially offset by the sale of a conventional tanker in the first
quarter of 2017; lower rates earned on two conventional tankers
upon the expiration of their fixed-rate charter contracts ending in
2017; and lower spot rates earned for certain of the vessels in the
Exmar LPG Joint Venture. Additionally, GAAP net income was also
impacted in the fourth quarter of 2017, compared to the same period
of the prior year, by various non-cash items, such as the
write-down of a conventional tanker in the fourth quarter of 2016;
a decrease in unrealized gains on derivative instruments; and an
increase in unrealized foreign currency exchange losses relating to
the Partnership’s Euro and NOK-denominated debt.
CEO Commentary
“During the fourth quarter of 2017, the
Partnership continued to generate stable cash flows and execute on
its growth projects and financing plans,” commented Mark Kremin,
President and Chief Executive Officer of Teekay Gas Group Ltd.
“In December 2017, our 50/50 joint venture with
China LNG Shipping secured a long-term debt facility to finance all
six ARC7 LNG carrier newbuildings and in mid-January 2018, we took
delivery of our first ARC7 vessel, the Eduard Toll, two weeks ahead
of schedule,” Mr. Kremin continued. “In total, since October 2017,
the Partnership has taken delivery of six LNG carrier newbuildings
over a four-month period, all of which immediately commenced their
respective long-term charter contracts. Looking ahead to the
remainder of 2018, we expect to take delivery of another five LNG
carrier newbuildings and a further three mid-sized LPG carrier
newbuildings in our 50/50 joint venture with Exmar, all of which we
expect will provide further cash flow growth to the
Partnership.”
“We also continue to make good progress on
refinancing our debt maturities,” commented Mr. Kremin. “I am
pleased to report that in November 2017 we refinanced and upsized
our unsecured corporate revolving credit facility and in February
2018, we refinanced one of our 2018 loan maturities with a new
five-year, $197 million long-term debt facility.”
Mr. Kremin added, “Finally, in January 2018, we
completed an opportunistic sale of the 50 percent-owned 2005-built
S/S Excelsior at an attractive price.”
Summary of Recent Events
LNG Carrier Newbuilding Deliveries
In October 2017 through February 2018, the
Partnership took delivery of three MEGI LNG carrier newbuildings,
the Macoma, Murex and Magdala, all of which immediately commenced
their respective charter contracts with Shell ranging between six
to eight years in duration, plus extension options.
In October 2017 through January 2018, the
Partnership’s 30 percent-owned joint venture with China LNG
Shipping (Holdings) Limited (China LNG) and CETS (an affiliate of
China National Offshore Oil Corporation (CNOOC)) took delivery of
two LNG carrier newbuildings, the Pan Asia and the Pan Americas,
both of which immediately commenced their respective 20-year
charter contracts with Shell.
In January 2018, the Partnership's 50
percent-owned joint venture with China LNG (the Yamal LNG Joint
Venture) took delivery of its first ARC7 LNG carrier newbuilding,
the Eduard Toll, which immediately commenced its 28-year charter
contract with Yamal LNG.
New Teekay Multigas Pool
In November 2017, the Partnership terminated its
charter contracts with Skaugen due to non-payment of charter hire
and established the Teekay Multigas Pool, a new in-house commercial
management solution for ethylene-capable LPG and small-scale LNG
vessels. The Teekay Multigas Pool now manages the Partnership’s
seven directly-owned ethylene-capable LPG carriers, some of which
are also capable of small-scale LNG shipping, which were previously
part of the Norgas Carriers Pool operated by Skaugen.
Sale of the S/S Excelsior
In January 2018, the Partnership sold its 50
percent interest in the S/S Excelsior to Excelerate Energy for net
proceeds of approximately $44 million after repaying external debt
obligations. The Partnership originally acquired its 50
percent interest in the S/S Excelsior in 2010 through an
acquisition from Exmar NV and expects to record a gain of
approximately $2 million on the sale in the first quarter of
2018.
Debt Financing Update
In November 2017, the Partnership completed a
refinancing and upsizing of its 364-day, unsecured corporate
revolving credit facility from $170 million to $190 million.
In December 2017, the Yamal LNG Joint Venture
completed an $816 million(1) long-term debt facility to finance all
six of the Yamal LNG Joint Venture's ARC7 LNG carrier newbuildings
delivering through early-2020, the first of which was delivered in
January 2018.
In February 2018, the Partnership refinanced the
full amount of a revolving credit facility maturing in 2018 secured
by the Hispania Spirit and Galicia Spirit with a new $197 million
revolving credit facility maturing in 2022.
(1) Based on the Partnership’s 50
percent ownership interests in the six ARC7 LNG carrier
newbuildings.
Operating Results
The following table highlights certain financial
information for Teekay LNG’s two segments: the Liquefied Gas
Segment and the Conventional Tanker Segment (please refer to the
“Teekay LNG’s Fleet” section of this release below and Appendices C
through E for further details).
|
Three Months Ended |
|
December 31, 2017 |
December 31, 2016 |
(in
thousands of U.S. Dollars) |
(unaudited) |
(unaudited) |
|
LiquefiedGasSegment |
ConventionalTankerSegment |
Total |
LiquefiedGasSegment |
ConventionalTankerSegment |
Total |
GAAP FINANCIAL
COMPARISON |
|
|
|
|
|
|
Voyage revenues |
114,605 |
|
11,702 |
|
126,307 |
|
86,188 |
|
14,586 |
|
100,774 |
|
Income (loss) from
vessel operations |
60,395 |
|
1,983 |
|
62,378 |
|
43,918 |
|
(5,908 |
) |
38,010 |
|
Equity income |
2,992 |
|
— |
|
2,992 |
|
9,728 |
|
— |
|
9,728 |
|
NON-GAAP FINANCIAL
COMPARISON |
|
|
|
|
|
|
CFVO from
consolidated vessels(i) |
86,667 |
|
4,122 |
|
90,789 |
|
70,889 |
|
7,490 |
|
78,379 |
|
CFVO from
equity-accounted vessels(i) |
36,044 |
|
— |
|
36,044 |
|
36,155 |
|
— |
|
36,155 |
|
Total CFVO(i) |
122,711 |
|
4,122 |
|
126,833 |
|
107,044 |
|
7,490 |
|
114,534 |
|
(i) These are non-GAAP financial measures.
Please refer to “Definitions and Non-GAAP Financial Measures” and
the Appendices to this release for definitions of these terms and
reconciliations of these non-GAAP financial measures as used in
this release to the most directly comparable financial measures
under GAAP.
Liquefied Gas Segment
Income from vessel operations and cash flow from
vessel operations from consolidated vessels for the three months
ended December 31, 2017, compared to the same quarter of the prior
year, were impacted primarily due to higher revenues earned on the
deliveries of three MEGI LNG carrier newbuildings between February
and November 2017 and recognition of the prepaid lease payments of
$10.7 million received from Skaugen in prior periods, which were
previously deferred and then recognized in the fourth quarter of
2017 upon the termination of the charter contracts for five of the
Partnership’s LPG carriers on charter with Skaugen. These increases
were partially offset by lower revenues earned for two of the
Partnership’s LNG carriers on charter with Awilco LNG ASA (Awilco)
as the charter contracts for these two LNG carriers were
amended in 2017, which have the effect of deferring a portion of
the charter hire until December 2019.
Equity income and cash flow from vessel
operations from equity-accounted vessels for the three months ended
December 31, 2017, compared to the same quarter of the prior year,
were impacted primarily due to lower spot rates earned in 2017 on
certain vessels in the Exmar LPG Joint Venture. This decrease was
partially offset by deliveries of two mid-size LPG carriers in the
Exmar LPG Joint Venture between March and July 2017; the delivery
of the Partnership’s 30 percent-owned LNG carrier newbuilding on
charter to Shell in October 2017; and the commencement of
short-term charter contracts for certain of the vessels in the
Teekay LNG-Marubeni Joint Venture that were previously earning
lower spot rates. Equity income was also impacted by a decrease in
net unrealized gains on designated and non-designated derivative
instruments and an increase in vessel write-downs in the Exmar LPG
Joint Venture during the three months ended December 31, 2017,
compared to the same period of the prior year.
Conventional Tanker Segment
Income (loss) from vessel operations increased
for the three months ended December 31, 2017, compared to the same
quarter of the prior year, primarily due to the write-down of the
Asian Spirit recognized in the three months ended December 31,
2016. This increase was partially offset by lower rates earned on
the European Spirit and African Spirit conventional tankers upon
the expiration of their fixed-rate charter contracts in August and
November 2017, respectively. Cash flow from vessel operations
for the three months ended December 31, 2017, compared to the same
quarter of the prior year, decreased primarily due to the lower
rates earned on the European Spirit and African Spirit conventional
tankers.
Teekay LNG's Fleet
The following table summarizes the Partnership’s
fleet as of February 15, 2018, excluding the Partnership’s 30
percent interest in a regasification facility currently under
construction:
|
Number of Vessels |
|
Owned andIn-Chartered Vessels(i) |
Newbuildings |
Total |
LNG Carrier
Fleet |
37(ii) |
12(iii) |
49 |
LPG/Multigas
Carrier Fleet |
26(iv) |
3(v) |
29 |
Conventional
Tanker Fleet |
4(vi) |
— |
4 |
Total |
67 |
15 |
82 |
(i) Owned vessels includes
vessels accounted for as vessels related to capital
leases.(ii) The Partnership’s
ownership interests in these vessels range from 30 percent to 100
percent.(iii) The Partnership's ownership
interests in these newbuildings, which includes a floating storage
unit (FSU), range from 20 percent to 100
percent.(iv) The Partnership’s ownership
interests in these vessels range from 50 percent to 99
percent.(v) The Partnership’s
ownership interests in these newbuildings is 50
percent.(vi) Two of the Partnership's
conventional tankers are held for sale.
Liquidity
As of December 31, 2017, the Partnership
had total liquidity of $433.6 million (comprised of $244.2 million
in cash and cash equivalents and $189.4 million in undrawn credit
facilities).
Conference Call
The Partnership plans to host a conference call
on Thursday, February 22, 2018 at 11:00 a.m. (ET) to discuss the
results for the fourth quarter and fiscal year 2017. All
unitholders and interested parties are invited to listen to the
live conference call by choosing from the following options:
- By dialing (866) 548-4713 or (647) 484-0477, if outside North
America, and quoting conference ID code 1441937.
- By accessing the webcast, which will be available on Teekay
LNG’s website at www.teekay.com (the archive will remain on the
website for a period of one year).
An accompanying Fourth Quarter and Fiscal Year
2017 Earnings Presentation will also be available at www.teekay.com
in advance of the conference call start time.
About Teekay LNG Partners L.P.
Teekay LNG Partners is one of the world's
largest independent owners and operators of LNG carriers, providing
LNG, LPG and crude oil marine transportation services primarily
under long-term, fee-based charter contracts through its interests
in 49 LNG carriers (including 12 newbuildings), 29 LPG/Multigas
carriers (including three newbuildings) and four conventional
tankers. The Partnership's interests in these vessels range from 20
to 100 percent. In addition, the Partnership owns a 30 percent
interest in a regasification facility, which is currently under
construction. Teekay LNG Partners L.P. is a publicly-traded master
limited partnership (MLP) formed by Teekay Corporation (NYSE:TK) as
part of its strategy to expand its operations in the LNG and LPG
shipping sectors.
Teekay LNG Partners’ common units and preferred
units trade on the New York Stock Exchange under the symbol “TGP”,
"TGP PR A" and "TGP PR B", respectively.
For Investor Relationsenquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website: www.teekay.com
Definitions and Non-GAAP Financial
Measures
This release includes various financial measures
that are non-GAAP financial measures as defined under the rules of
the U.S. Securities and Exchange Commission. These non-GAAP
financial measures, which include Cash Flow from Vessel Operations,
Adjusted Net Income, and Distributable Cash Flow, are intended to
provide additional information and should not be considered a
substitute for measures of performance prepared in accordance with
GAAP. In addition, these measures do not have standardized meanings
across companies, and therefore may not be comparable to similar
measures presented by other companies. The Partnership believes
that certain investors use this information to evaluate the
Partnership’s financial performance, as does management.
Non-GAAP Financial Measures
Cash Flow from Vessel Operations (CFVO)
represents income from vessel operations before depreciation and
amortization expense, amortization of in-process revenue contracts,
vessel write-downs, losses on the sales of vessels and adjustments
for direct financing leases to a cash basis, but includes realized
gains or losses on a derivative charter contract. CFVO from
Consolidated Vessels represents CFVO from vessels that are
consolidated on the Partnership’s financial statements. CFVO from
Equity-Accounted Vessels represents the Partnership’s proportionate
share of CFVO from its equity-accounted vessels. The Partnership
does not control its equity-accounted vessels and as a result, the
Partnership does not have the unilateral ability to determine
whether the cash generated by its equity-accounted vessels is
retained within the entities in which the Partnership holds the
equity-accounted investments or distributed to the Partnership and
other owners. In addition, the Partnership does not control the
timing of such distributions to the Partnership and other owners.
Consequently, readers are cautioned when using total CFVO as a
liquidity measure as the amount contributed from CFVO from
Equity-Accounted Vessels may not be available to the Partnership in
the periods such CFVO is generated by its equity-accounted vessels.
CFVO is a non-GAAP financial measure used by certain investors and
management to measure the operational financial performance of
companies. Please refer to Appendices D and E of this release for
reconciliations of these non-GAAP financial measures to income from
vessel operations and income from vessel operations of
equity-accounted vessels, respectively, the most directly
comparable GAAP measures reflected in the Partnership’s
consolidated financial statements.
Adjusted Net Income excludes items of income or
loss from GAAP net income (loss) that are typically excluded by
securities analysts in their published estimates of the
Partnership’s financial results. The Partnership believes that
certain investors use this information to evaluate the
Partnership’s financial performance, as does management. Please
refer to Appendix A of this release for a reconciliation of this
non-GAAP financial measure to net income, and refer to footnote (2)
of the statements of income (loss) for a reconciliation of adjusted
equity income to equity income, the most directly comparable GAAP
measure reflected in the Partnership’s consolidated financial
statements.
Distributable Cash Flow (DCF) represents GAAP
net income adjusted for depreciation and amortization expense,
deferred income tax and other non-cash items, estimated maintenance
capital expenditures, unrealized gains and losses from
non-designated derivative instruments, ineffectiveness for
derivative instruments designated as hedges for accounting
purposes, distributions relating to equity financing of newbuilding
installments, adjustments for direct financing leases to a cash
basis and foreign exchange related items, including the
Partnership's proportionate share of such items in equity-accounted
for investments. Maintenance capital expenditures represent those
capital expenditures required to maintain over the long-term the
operating capacity of, or the revenue generated by, the
Partnership's capital assets. DCF is a quantitative standard used
in the publicly-traded partnership investment community and by
management to assist in evaluating financial performance. Please
refer to Appendix B of this release for a reconciliation of this
non-GAAP financial measure to net income, the most directly
comparable GAAP measure reflected in the Partnership’s consolidated
financial statements.
Teekay LNG Partners L.P.Consolidated
Statements of Income (Loss)(in thousands of U.S. Dollars,
except units outstanding)
|
Three Months Ended |
Year Ended |
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
2017 |
2017 |
2016 |
2017 |
2016 |
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Voyage
revenues |
126,307 |
|
104,285 |
|
100,774 |
|
432,676 |
|
396,444 |
|
|
|
|
|
|
|
Voyage expenses |
(4,303 |
) |
(1,466 |
) |
(302 |
) |
(8,202 |
) |
(1,656 |
) |
Vessel operating
expenses |
(27,026 |
) |
(26,724 |
) |
(22,270 |
) |
(103,139 |
) |
(88,590 |
) |
Depreciation and
amortization |
(27,651 |
) |
(24,980 |
) |
(25,021 |
) |
(105,545 |
) |
(95,542 |
) |
General and
administrative expenses |
(4,949 |
) |
(2,793 |
) |
(3,634 |
) |
(16,541 |
) |
(18,499 |
) |
Write-down and loss on
sales of vessels(1) |
— |
|
(38,000 |
) |
(11,537 |
) |
(50,600 |
) |
(38,976 |
) |
Income from vessel operations |
62,378 |
|
10,322 |
|
38,010 |
|
148,649 |
|
153,181 |
|
|
|
|
|
|
|
Equity income(2) |
2,992 |
|
1,417 |
|
9,728 |
|
9,789 |
|
62,307 |
|
Interest expense |
(23,333 |
) |
(20,091 |
) |
(15,934 |
) |
(80,937 |
) |
(58,844 |
) |
Interest income |
880 |
|
602 |
|
783 |
|
2,915 |
|
2,583 |
|
Realized and unrealized
gain (loss) on non-designated derivative instruments(3) |
3,066 |
|
(2,178 |
) |
43,245 |
|
(5,309 |
) |
(7,161 |
) |
Foreign currency
exchange (loss) gain(4) |
(2,436 |
) |
(5,104 |
) |
15,474 |
|
(26,933 |
) |
5,335 |
|
Other income |
424 |
|
356 |
|
314 |
|
1,561 |
|
1,537 |
|
Net income (loss) before tax expense |
43,971 |
|
(14,676 |
) |
91,620 |
|
49,735 |
|
158,938 |
|
Income tax recovery
(expense) |
319 |
|
(750 |
) |
(251 |
) |
(824 |
) |
(973 |
) |
Net income (loss) |
44,290 |
|
(15,426 |
) |
91,369 |
|
48,911 |
|
157,965 |
|
|
|
|
|
|
|
Non-controlling
interest in net income (loss) |
4,413 |
|
3,470 |
|
6,958 |
|
14,946 |
|
17,514 |
|
Preferred unitholders'
interest in net income (loss) |
5,541 |
|
2,813 |
|
2,719 |
|
13,979 |
|
2,719 |
|
General Partner's
interest in net income (loss) |
687 |
|
(434 |
) |
1,634 |
|
400 |
|
2,755 |
|
Limited partners’
interest in net income (loss) |
33,649 |
|
(21,275 |
) |
80,058 |
|
19,586 |
|
134,977 |
|
Weighted-average number
of common units outstanding: |
|
|
|
|
|
• Basic |
79,626,819 |
|
79,626,819 |
|
79,571,820 |
|
79,617,778 |
|
79,568,352 |
|
• Diluted |
79,839,231 |
|
79,626,819 |
|
79,705,854 |
|
79,791,041 |
|
79,671,858 |
|
Total
number of common units outstanding at end of period |
79,626,819 |
|
79,626,819 |
|
79,571,820 |
|
79,626,819 |
|
79,571,820 |
|
(1) The write-down and loss on sales of vessels for
the three months ended September 30, 2017 and year ended
December 31, 2017 includes impairment charges on the African
Spirit, Teide Spirit and Toledo Spirit Suezmax tankers. The
charterer for the African Spirit notified the Partnership in August
2017 that it would redeliver the vessel to the Partnership upon its
charter contract ending in November 2017, which resulted in a
write-down of the vessel to its estimated market value. The African
Spirit was redelivered to the Partnership in November 2017. The
charterer for the Teide Spirit and Toledo Spirit, who is also the
owner of these vessels, has the option to cancel the charter
contracts 13 years following commencement of the respective charter
contracts. In October 2017, the charterer notified the Partnership
that it was marketing the Teide Spirit for sale and subsequently,
sold the vessel on February 8, 2018. Upon sale of the vessel, the
charterer concurrently terminated its charter contract with the
Partnership. The charterer’s cancellation option for the Toledo
Spirit is first exercisable in August 2018. Given the Partnership's
prior experience with this charterer, the Partnership expects the
charterer will cancel the charter contract and sell the Toledo
Spirit to a third party in 2018. As a result, the Partnership wrote
down the Teide Spirit and Toledo Spirit to their estimated market
values. The write-down and loss on sales of vessels for the year
ended December 31, 2017 also includes the write-down of the
European Spirit Suezmax tanker to its estimated market value, as
the Partnership commenced marketing the vessel for sale upon
receiving notification from the charterer in late-June 2017 that it
would redeliver the vessel back to the Partnership in August 2017.
The write-down and loss on sales of vessels for the year ended
December 31, 2016 relates to Centrofin Management Inc. exercising
its purchase options, under the 12-year charter contracts, to
acquire the Bermuda Spirit and Hamilton Spirit Suezmax tankers. In
addition, the write-down and loss on sales of vessels for the three
months ended December 31, 2016 includes the write-down of the Asian
Spirit upon the Partnership reaching an agreement to sell the
vessel in November 2016.
(2) The Partnership’s proportionate share of items
within equity income as identified in Appendix A of this release is
detailed in the table below. By excluding these items from equity
income, the Partnership believes the resulting adjusted equity
income is a normalized amount that can be used to evaluate the
financial performance of the Partnership’s equity-accounted
investments. Adjusted equity income is a non-GAAP financial
measure.
|
Three Months Ended |
Year Ended |
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
2017 |
2017 |
2016 |
2017 |
2016 |
Equity income |
2,992 |
|
1,417 |
|
9,728 |
|
9,789 |
|
62,307 |
|
Proportionate share of
unrealized (gain) loss on non-designated derivative
instruments |
(4,404 |
) |
(1,485 |
) |
(8,078 |
) |
(7,491 |
) |
(6,963 |
) |
Proportionate share of
ineffective portion of hedge-accounted interest rate swaps |
566 |
|
968 |
|
(364 |
) |
5,100 |
|
(372 |
) |
Proportionate share of
write-down and loss on sales of vessels |
5,500 |
|
— |
|
4,861 |
|
5,500 |
|
4,861 |
|
Proportionate share of other items |
191 |
|
219 |
|
1,162 |
|
651 |
|
1,317 |
|
Equity
income adjusted for items in Appendix A |
4,845 |
|
1,119 |
|
7,309 |
|
13,549 |
|
61,150 |
|
(3) The realized (losses) gains on
non-designated derivative instruments relate to the amounts the
Partnership actually paid or received to settle non-designated
derivative instruments and the unrealized gains (losses) on
non-designated derivative instruments relate to the change in fair
value of such non-designated derivative instruments, as detailed in
the table below:
|
Three Months Ended |
Year Ended |
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
2017 |
2017 |
2016 |
2017 |
2016 |
Realized
(losses) gains relating to: |
|
|
|
|
|
Interest rate swap
agreements |
(5,012 |
) |
(4,528 |
) |
(6,190 |
) |
(18,825 |
) |
(25,940 |
) |
Interest rate swaption
agreements termination |
— |
|
— |
|
— |
|
(610 |
) |
— |
|
Toledo Spirit
time-charter derivative contract |
152 |
|
646 |
|
(1,274 |
) |
678 |
|
(654 |
) |
|
(4,860 |
) |
(3,882 |
) |
(7,464 |
) |
(18,757 |
) |
(26,594 |
) |
|
|
|
|
|
|
Unrealized
gains (losses) relating to: |
|
|
|
|
|
Interest rate swap
agreements |
8,182 |
|
1,775 |
|
34,068 |
|
12,393 |
|
15,627 |
|
Interest rate swaption
agreements |
518 |
|
285 |
|
16,601 |
|
945 |
|
(164 |
) |
Toledo Spirit
time-charter derivative contract |
(774 |
) |
(356 |
) |
40 |
|
110 |
|
3,970 |
|
|
7,926 |
|
1,704 |
|
50,709 |
|
13,448 |
|
19,433 |
|
|
|
|
|
|
|
Total
realized and unrealized gains (losses) on non-designated derivative
instruments |
3,066 |
|
(2,178 |
) |
43,245 |
|
(5,309 |
) |
(7,161 |
) |
(4) For accounting purposes, the
Partnership is required to revalue all foreign currency-denominated
monetary assets and liabilities based on the prevailing exchange
rates at the end of each reporting period. This revaluation does
not affect the Partnership’s cash flows or the calculation of
distributable cash flow, but results in the recognition of
unrealized foreign currency translation gains or losses in the
Consolidated Statements of Income (Loss).
Foreign currency exchange (loss) gain includes
realized losses relating to the amounts the Partnership paid to
settle or terminate the Partnership’s non-designated cross-currency
swaps that were entered into as economic hedges in relation to the
Partnership’s Norwegian Kroner (NOK) denominated unsecured bonds
and realized gains on NOK bond repurchases. Foreign currency
exchange (loss) gain also includes unrealized (losses) gains
relating to the change in fair value of such derivative
instruments, partially offset by unrealized gains (losses) on the
revaluation of the NOK bonds as detailed in the table below:
|
Three Months Ended |
Year Ended |
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
2017 |
2017 |
2016 |
2017 |
2016 |
Realized losses on
cross-currency swaps |
(2,125 |
) |
(1,598 |
) |
(2,160 |
) |
(9,344 |
) |
(9,063 |
) |
Realized losses on
cross-currency swaps termination |
— |
|
— |
|
(17,711 |
) |
(25,733 |
) |
(17,711 |
) |
Realized gains on
repurchase of NOK bonds |
— |
|
— |
|
16,782 |
|
25,733 |
|
16,782 |
|
Unrealized (losses)
gains on cross-currency swaps |
(9,081 |
) |
20,523 |
|
(6,053 |
) |
49,047 |
|
28,905 |
|
Unrealized gains (losses) on revaluation of NOK bonds |
7,760 |
|
(17,906 |
) |
12,644 |
|
(47,076 |
) |
(18,967 |
) |
|
|
|
|
|
|
|
|
|
|
|
Teekay LNG Partners L.P.Consolidated
Balance Sheets(in thousands of U.S. Dollars)
|
As at December 31, |
As at September 30, |
As at December 31, |
|
2017 |
2017 |
2016 |
|
(unaudited) |
(unaudited) |
(unaudited) |
ASSETS |
|
|
|
Current |
|
|
|
Cash and cash
equivalents |
244,241 |
|
161,008 |
|
126,146 |
|
Restricted cash –
current |
22,326 |
|
21,386 |
|
10,145 |
|
Accounts
receivable |
26,054 |
|
22,079 |
|
25,224 |
|
Prepaid expenses |
6,539 |
|
4,345 |
|
3,724 |
|
Vessels held for
sale |
33,671 |
|
17,000 |
|
20,580 |
|
Current portion of
derivative assets |
1,078 |
|
1,759 |
|
531 |
|
Current portion of net
investments in direct financing leases |
9,884 |
|
9,683 |
|
150,342 |
|
Advances to
affiliates |
7,300 |
|
9,245 |
|
9,739 |
|
Total current assets |
351,093 |
|
246,505 |
|
346,431 |
|
|
|
|
|
Restricted cash –
long-term |
72,868 |
|
71,626 |
|
106,882 |
|
|
|
|
|
Vessels and
equipment |
|
|
|
At cost, less
accumulated depreciation |
1,416,381 |
|
1,316,234 |
|
1,374,128 |
|
Vessels related to
capital leases, at cost, less accumulated depreciation |
1,044,838 |
|
643,973 |
|
484,253 |
|
Advances on newbuilding
contracts |
444,493 |
|
492,800 |
|
357,602 |
|
Total vessels and equipment |
2,905,712 |
|
2,453,007 |
|
2,215,983 |
|
Investment in and
advances to equity-accounted joint ventures |
1,094,596 |
|
1,114,709 |
|
1,037,726 |
|
Net investments in
direct financing leases |
486,106 |
|
624,122 |
|
492,666 |
|
Other assets |
6,043 |
|
1,440 |
|
5,529 |
|
Derivative assets |
6,172 |
|
9,324 |
|
4,692 |
|
Intangible assets –
net |
61,078 |
|
63,293 |
|
69,934 |
|
Goodwill – liquefied
gas segment |
35,631 |
|
35,631 |
|
35,631 |
|
Total assets |
5,019,299 |
|
4,619,657 |
|
4,315,474 |
|
LIABILITIES AND
EQUITY |
|
|
|
Current |
|
|
|
Accounts payable |
3,509 |
|
2,240 |
|
5,562 |
|
Accrued
liabilities |
40,257 |
|
38,056 |
|
35,881 |
|
Unearned revenue |
25,873 |
|
20,283 |
|
16,998 |
|
Current portion of
long-term debt |
552,404 |
|
516,232 |
|
188,511 |
|
Current obligations
related to capital leases |
106,946 |
|
108,592 |
|
40,353 |
|
Current portion of
in-process contracts |
7,946 |
|
9,050 |
|
15,833 |
|
Current portion of
derivative liabilities |
79,139 |
|
69,964 |
|
56,800 |
|
Advances from
affiliates |
12,140 |
|
9,864 |
|
15,492 |
|
Total current liabilities |
828,214 |
|
774,281 |
|
375,430 |
|
Long-term debt |
1,245,588 |
|
1,380,175 |
|
1,602,715 |
|
Long-term obligations
related to capital leases |
904,603 |
|
595,674 |
|
352,486 |
|
Long-term unearned
revenue |
— |
|
9,358 |
|
10,332 |
|
Other long-term
liabilities |
57,594 |
|
58,432 |
|
60,573 |
|
In-process
contracts |
580 |
|
2,418 |
|
8,233 |
|
Derivative
liabilities |
45,797 |
|
59,312 |
|
128,293 |
|
Total liabilities |
3,082,376 |
|
2,879,650 |
|
2,538,062 |
|
|
|
|
|
Equity |
|
|
|
Limited partners –
common units |
1,539,248 |
|
1,516,634 |
|
1,563,852 |
|
Limited partners –
preferred units |
290,659 |
|
123,520 |
|
123,426 |
|
General partner |
50,152 |
|
49,690 |
|
50,653 |
|
Accumulated other
comprehensive income |
4,479 |
|
1,747 |
|
575 |
|
Partners' equity |
1,884,538 |
|
1,691,591 |
|
1,738,506 |
|
Non-controlling
interest |
52,385 |
|
48,416 |
|
38,906 |
|
Total equity |
1,936,923 |
|
1,740,007 |
|
1,777,412 |
|
Total liabilities and total equity |
5,019,299 |
|
4,619,657 |
|
4,315,474 |
|
|
|
|
|
|
|
|
Teekay LNG Partners L.P.Consolidated
Statements of Cash Flows(in thousands of U.S. Dollars)
|
Year Ended |
|
December 31, |
December 31, |
|
2017 |
2016 |
|
(unaudited) |
(unaudited) |
Cash and cash
equivalents provided by (used for) |
|
|
OPERATING
ACTIVITIES |
|
|
Net
income |
48,911 |
|
157,965 |
|
Non-cash items: |
|
|
Unrealized gain on non-designated derivative instruments |
(13,448 |
) |
(19,433 |
) |
Depreciation and amortization |
105,545 |
|
95,542 |
|
Write-down and loss on sales of vessels |
50,600 |
|
38,976 |
|
Unrealized foreign currency exchange gain and other |
(10,257 |
) |
(42,009 |
) |
Equity income, net of dividends received of $42,692 (2016 –
$31,113) |
32,903 |
|
(31,194 |
) |
Change in operating
assets and liabilities |
1,853 |
|
(20,669 |
) |
Expenditures for dry
docking |
(21,642 |
) |
(12,686 |
) |
Net operating cash flow |
194,465 |
|
166,492 |
|
FINANCING
ACTIVITIES |
|
|
Proceeds from issuance
of long-term debt |
362,527 |
|
573,514 |
|
Scheduled repayments of
long-term debt |
(168,504 |
) |
(316,450 |
) |
Prepayments of
long-term debt |
(236,474 |
) |
(463,422 |
) |
Financing issuance
costs |
(8,361 |
) |
(3,462 |
) |
Proceeds from financing
related to sales and leaseback of vessels |
656,935 |
|
355,306 |
|
Scheduled repayments of
obligations related to capital leases |
(42,000 |
) |
(21,594 |
) |
Proceeds from equity
offerings, net of offering costs |
164,411 |
|
120,707 |
|
Decrease in restricted
cash |
20,385 |
|
4,651 |
|
Cash distributions
paid |
(56,650 |
) |
(45,467 |
) |
Dividends paid to
non-controlling interest |
(1,595 |
) |
(3,402 |
) |
Other |
(605 |
) |
— |
|
Net financing cash flow |
690,069 |
|
200,381 |
|
INVESTING
ACTIVITIES |
|
|
Capital contributions
to equity-accounted joint ventures |
(183,874 |
) |
(120,879 |
) |
Return of capital from
equity-accounted joint ventures |
92,320 |
|
5,500 |
|
Receipts from direct
financing leases |
13,143 |
|
23,650 |
|
Proceeds from sales of
vessels |
20,580 |
|
94,311 |
|
Expenditures for
vessels and equipment |
(708,608 |
) |
(345,790 |
) |
Net investing cash flow |
(766,439 |
) |
(343,208 |
) |
Increase in cash and
cash equivalents |
118,095 |
|
23,665 |
|
Cash and
cash equivalents, beginning of the year |
126,146 |
|
102,481 |
|
Cash and cash equivalents, end of the year |
244,241 |
|
126,146 |
|
|
|
|
|
|
Teekay LNG Partners L.P.Appendix A -
Reconciliation of Non-GAAP Financial
MeasuresAdjusted Net Income(in thousands
of U.S. Dollars)
|
Three Months Ended |
Year Ended |
December 31, |
December 31, |
2017 |
2016 |
2017 |
2016 |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Net income – GAAP
basis |
44,290 |
|
91,369 |
|
48,911 |
|
157,965 |
|
Less: Net income
attributable to non-controlling interests |
(4,413 |
) |
(6,958 |
) |
(14,946 |
) |
(17,514 |
) |
Net income attributable to the partners and preferred
unitholders |
39,877 |
|
84,411 |
|
33,965 |
|
140,451 |
|
Add (subtract) specific
items affecting net income: |
|
|
|
|
Write-down and loss on sales of vessels(1) |
— |
|
11,537 |
|
50,600 |
|
38,976 |
|
Unrealized foreign currency exchange losses (gains)(2) |
58 |
|
(17,783 |
) |
17,493 |
|
(14,699 |
) |
Unrealized (gains) losses on non-designated and designated
derivative instruments and other items from equity-accounted
investees(3) |
1,853 |
|
(2,419 |
) |
3,760 |
|
(19,433 |
) |
Unrealized gains on non-designated derivative instruments(4) |
(7,926 |
) |
(50,709 |
) |
(13,448 |
) |
(1,157 |
) |
Ineffective portion on qualifying cash flow hedging instruments
included in interest expense |
(15 |
) |
(1,044 |
) |
740 |
|
— |
|
Other
items(5) |
(926 |
) |
1,215 |
|
(316 |
) |
1,215 |
|
Non-controlling interests’ share of items above(6) |
1,051 |
|
3,750 |
|
1,056 |
|
3,629 |
|
Total adjustments |
(5,905 |
) |
(55,453 |
) |
59,885 |
|
8,531 |
|
Adjusted net income attributable to the partners and
preferred unitholders |
33,972 |
|
28,958 |
|
93,850 |
|
148,982 |
|
(1) Write-down and loss on sale of vessels relate to
the Partnership's impairment charges and sales of the African
Spirit, Teide Spirit and Toledo Spirit during 2017 and the Bermuda
Spirit, Hamilton Spirit and Asian Spirit during 2016. See Note 1 to
the Consolidated Statements of Income (Loss) included in this
release for further details.(2) Unrealized foreign
exchange losses (gains) primarily relate to the Partnership’s
revaluation of all foreign currency-denominated monetary assets and
liabilities based on the prevailing exchange rate at the end of
each reporting period and unrealized (gains) losses on the
cross-currency swaps economically hedging the Partnership’s NOK
bonds. This amount excludes the realized losses relating to the
cross-currency swaps for the NOK bonds. See Note 4 to the
Consolidated Statements of Income (Loss) included in this release
for further details.(3) Reflects the unrealized (gains)
losses due to changes in the mark-to-market value of derivative
instruments that are not designated as hedges for accounting
purposes, any ineffectiveness for derivative instruments designated
as hedges for accounting purposes, and write-down and loss on sales
of vessels within the Partnership’s equity-accounted investments.
See Note 2 to the Consolidated Statements of Income (Loss) included
in this release for further details.(4) Reflects the
unrealized gains due to changes in the mark-to-market value of
derivative instruments that are not designated as hedges for
accounting purposes. See Note 3 to the Consolidated Statements of
Income (Loss) included in this release for further
details.(5) Included in other items are deferred income
tax expense (recovery), loss upon termination of interest rate
swaption agreements and other items.(6) Items affecting
net income include items from the Partnership’s consolidated
non-wholly-owned subsidiaries. The specific items affecting net
income are analyzed to determine whether any of the amounts
originated from a consolidated non-wholly-owned subsidiary. Each
amount that originates from a consolidated non-wholly-owned
subsidiary is multiplied by the non-controlling interests’
percentage share in this subsidiary to arrive at the
non-controlling interests’ share of the amount. The amount
identified as “non-controlling interests’ share of items listed
above” in the table above is the cumulative amount of the
non-controlling interests’ proportionate share of the other
specific items affecting net income listed in the table.
Teekay LNG Partners L.P.Appendix B -
Reconciliation of Non-GAAP Financial
MeasuresDistributable Cash Flow (DCF)(in
thousands of U.S. Dollars, except units outstanding and per unit
data)
|
Three Months Ended |
Year Ended |
December 31, |
December 31, |
2017 |
2016 |
2017 |
2016 |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
|
|
Net
income: |
44,290 |
|
91,369 |
|
48,911 |
|
157,965 |
|
Add: |
|
|
|
|
Depreciation and amortization |
27,651 |
|
25,021 |
|
105,545 |
|
95,542 |
|
Partnership’s share of equity-accounted joint ventures' DCF net
of estimated maintenance capital expenditures(1) |
13,719 |
|
16,335 |
|
48,616 |
|
92,747 |
|
Distributions relating to equity financing of newbuildings |
3,844 |
|
1,685 |
|
8,676 |
|
1,685 |
|
Direct finance lease payments received in excess of revenue
recognized and other adjustments |
2,142 |
|
5,363 |
|
14,326 |
|
20,445 |
|
Unrealized foreign currency exchange loss (gain) |
58 |
|
(17,783 |
) |
17,493 |
|
(14,699 |
) |
Write-down and loss on sales of vessels |
— |
|
11,537 |
|
50,600 |
|
38,976 |
|
|
|
|
|
|
Less: |
|
|
|
|
Ineffective portion on qualifying cash flow hedging instruments
included in interest expense |
(15 |
) |
(1,044 |
) |
740 |
|
— |
|
Equity income |
(2,992 |
) |
(9,728 |
) |
(9,789 |
) |
(62,307 |
) |
Deferred income tax and other non-cash items |
(4,061 |
) |
(1,529 |
) |
(6,463 |
) |
(3,414 |
) |
Distributions relating to preferred units |
(5,541 |
) |
(2,719 |
) |
(13,979 |
) |
(2,719 |
) |
Unrealized gain on non-designated derivative instruments |
(7,926 |
) |
(50,709 |
) |
(13,448 |
) |
(19,433 |
) |
Estimated maintenance capital expenditures |
(14,265 |
) |
(12,212 |
) |
(53,315 |
) |
(48,221 |
) |
Distributable Cash Flow before Non-controlling interest |
56,904 |
|
55,586 |
|
197,913 |
|
256,567 |
|
Non-controlling interests’ share of DCF before
estimated maintenance capital expenditures |
(4,850 |
) |
(5,387 |
) |
(21,785 |
) |
(21,572 |
) |
Distributable Cash Flow |
52,054 |
|
50,199 |
|
176,128 |
|
234,995 |
|
Amount of cash distributions attributable to the
General Partner |
(226 |
) |
(229 |
) |
(909 |
) |
(910 |
) |
Limited
partners' Distributable Cash Flow |
51,828 |
|
49,970 |
|
175,219 |
|
234,085 |
|
Weighted-average number of common units
outstanding |
79,626,819 |
|
79,571,820 |
|
79,617,778 |
|
79,568,352 |
|
Distributable Cash Flow per limited partner
common unit |
0.65 |
|
0.63 |
|
2.20 |
|
2.94 |
|
(1) The estimated maintenance capital expenditures
relating to the Partnership’s share of equity-accounted joint
ventures were $8.4 million and $7.8 million for the three months
ended December 31, 2017 and 2016, respectively, and $32.5 million
and $30.3 million for the year ended December 31, 2017 and 2016,
respectively.
Teekay LNG Partners L.P.Appendix C -
Supplemental Segment Information(in thousands of U.S.
Dollars)
|
Three Months Ended December 31,
2017 |
|
(unaudited) |
|
Liquefied GasSegment |
ConventionalTanker Segment |
Total |
Voyage revenues |
114,605 |
|
11,702 |
|
126,307 |
|
Voyage expenses |
(1,356 |
) |
(2,947 |
) |
(4,303 |
) |
Vessel operating
expenses |
(22,717 |
) |
(4,309 |
) |
(27,026 |
) |
Depreciation and
amortization |
(25,386 |
) |
(2,265 |
) |
(27,651 |
) |
General and
administrative expenses |
(4,751 |
) |
(198 |
) |
(4,949 |
) |
Income from vessel operations |
60,395 |
|
1,983 |
|
62,378 |
|
|
|
|
|
|
Three Months Ended December 31,
2016 |
|
(unaudited) |
|
Liquefied GasSegment |
ConventionalTanker Segment |
Total |
Voyage revenues |
86,188 |
|
14,586 |
|
100,774 |
|
Voyage expenses |
(31 |
) |
(271 |
) |
(302 |
) |
Vessel operating
expenses |
(17,370 |
) |
(4,900 |
) |
(22,270 |
) |
Depreciation and
amortization |
(21,608 |
) |
(3,413 |
) |
(25,021 |
) |
General and
administrative expenses |
(3,261 |
) |
(373 |
) |
(3,634 |
) |
Write-down and loss on
sales of vessels |
— |
|
(11,537 |
) |
(11,537 |
) |
Income (loss) from vessel operations |
43,918 |
|
(5,908 |
) |
38,010 |
|
|
|
|
|
|
|
|
Teekay LNG Partners L.P.Appendix D -
Reconciliation of Non-GAAP Financial MeasuresCash
Flow from Vessel Operations from Consolidated Vessels(in
thousands of U.S. Dollars)
|
Three Months Ended December 31,
2017 |
Year EndedDecember 31, 2017 |
|
(unaudited) |
(unaudited) |
|
Liquefied GasSegment |
ConventionalTankerSegment |
Total |
Total |
Income from vessel
operations (See Appendix C) |
60,395 |
|
1,983 |
|
62,378 |
|
148,649 |
|
Depreciation and
amortization |
25,386 |
|
2,265 |
|
27,651 |
|
105,545 |
|
Write-down and loss on
sales of vessels |
— |
|
— |
|
— |
|
50,600 |
|
Amortization of
in-process contracts included in voyage revenues |
(1,256 |
) |
(278 |
) |
(1,534 |
) |
(3,785 |
) |
Direct finance lease
payments received in excess of revenue recognized and other
adjustments |
2,142 |
|
— |
|
2,142 |
|
14,326 |
|
Realized gain on Toledo
Spirit derivative contract |
— |
|
152 |
|
152 |
|
678 |
|
Cash flow from vessel operations from consolidated vessels |
86,667 |
|
4,122 |
|
90,789 |
|
316,013 |
|
|
|
|
|
|
|
Three Months Ended December 31,
2016 |
Year EndedDecember 31, 2016 |
|
(unaudited) |
(unaudited) |
|
Liquefied GasSegment |
ConventionalTanker egment |
Total |
Total |
Income (loss) from
vessel operations (See Appendix C) |
43,918 |
|
(5,908 |
) |
38,010 |
|
153,181 |
|
Depreciation and
amortization |
21,608 |
|
3,413 |
|
25,021 |
|
95,542 |
|
Write-down and loss on
sales of vessels |
— |
|
11,537 |
|
11,537 |
|
38,976 |
|
Amortization of
in-process contracts included in voyage revenues |
— |
|
(278 |
) |
(278 |
) |
(2,202 |
) |
Direct finance lease
payments received in excess of revenue recognized |
5,363 |
|
— |
|
5,363 |
|
20,445 |
|
Realized loss on Toledo
Spirit derivative contract |
— |
|
(1,274 |
) |
(1,274 |
) |
(654 |
) |
Cash flow adjustment
for two Suezmax tankers |
— |
|
— |
|
— |
|
1,966 |
|
Cash flow from vessel operations from consolidated vessels |
70,889 |
|
7,490 |
|
78,379 |
|
307,254 |
|
|
|
|
|
|
|
|
|
|
Teekay LNG Partners L.P.Appendix E -
Reconciliation of Non-GAAP Financial MeasuresCash
Flow from Vessel Operations from Equity-Accounted
Vessels(in thousands of U.S. Dollars)
|
Three Months Ended |
|
December 31, 2017 |
December 31, 2016 |
|
(unaudited) |
(unaudited) |
|
At |
Partnership's |
At |
Partnership's |
100% |
Portion(1) |
100% |
Portion(1) |
Voyage revenues |
129,526 |
|
57,493 |
|
125,372 |
|
56,426 |
|
Voyage expenses |
(3,653 |
) |
(1,862 |
) |
(6,542 |
) |
(3,329 |
) |
Vessel operating
expenses and general and administrative expenses |
(48,617 |
) |
(22,372 |
) |
(41,499 |
) |
(19,076 |
) |
Depreciation and
amortization |
(27,950 |
) |
(13,984 |
) |
(28,244 |
) |
(14,141 |
) |
Write-down and loss on
sales of vessels |
(11,000 |
) |
(5,500 |
) |
(9,721 |
) |
(4,861 |
) |
Income from vessel operations of equity-accounted vessels |
38,306 |
|
13,775 |
|
39,366 |
|
15,019 |
|
Other items, including
interest expense and realized and unrealized gain (loss) on
derivative instruments |
(23,690 |
) |
(10,783 |
) |
(7,491 |
) |
(5,291 |
) |
Net income / equity income of equity-accounted vessels |
14,616 |
|
2,992 |
|
31,875 |
|
9,728 |
|
|
|
|
|
|
Income from vessel
operations of equity-accounted vessels |
38,306 |
|
13,775 |
|
39,366 |
|
15,019 |
|
Depreciation and
amortization |
27,950 |
|
13,984 |
|
28,244 |
|
14,141 |
|
Write-down and loss on
sales of vessels |
11,000 |
|
5,500 |
|
9,721 |
|
4,861 |
|
Direct finance lease
payments received in excess of revenue recognized |
10,621 |
|
3,802 |
|
9,475 |
|
3,438 |
|
Amortization of in-process revenue contracts |
(1,950 |
) |
(1,017 |
) |
(2,541 |
) |
(1,304 |
) |
|
|
|
|
|
Cash flow
from vessel operations from equity-accounted vessels |
85,927 |
|
36,044 |
|
84,265 |
|
36,155 |
|
|
Year Ended |
|
December 31, 2017 |
December 31, 2016 |
|
(unaudited) |
(unaudited) |
|
At |
Partnership's |
At |
Partnership's |
100% |
Portion(1) |
100% |
Portion(1) |
Voyage revenues |
478,908 |
|
213,574 |
|
553,461 |
|
252,677 |
|
Voyage expenses |
(16,689 |
) |
(8,534 |
) |
(20,051 |
) |
(10,121 |
) |
Vessel operating
expenses and general and administrative expenses |
(175,898 |
) |
(81,416 |
) |
(166,841 |
) |
(77,496 |
) |
Depreciation and
amortization |
(109,135 |
) |
(54,453 |
) |
(104,098 |
) |
(52,095 |
) |
Write-down and loss on sales of vessels |
(11,000 |
) |
(5,500 |
) |
(9,721 |
) |
(4,861 |
) |
Income from vessel
operations of equity-accounted vessels |
166,186 |
|
63,671 |
|
252,750 |
|
108,104 |
|
Other items, including
interest expense and realized and unrealized gain (loss) on
derivative instruments |
(124,342 |
) |
(53,882 |
) |
(100,992 |
) |
(45,797 |
) |
Net income / equity income of equity-accounted vessels |
41,844 |
|
9,789 |
|
151,758 |
|
62,307 |
|
|
|
|
|
|
Income from vessel
operations of equity-accounted vessels |
166,186 |
|
63,671 |
|
252,750 |
|
108,104 |
|
Depreciation and
amortization |
109,135 |
|
54,453 |
|
104,098 |
|
52,095 |
|
Write-down and loss on
sales of vessels |
11,000 |
|
5,500 |
|
9,721 |
|
4,861 |
|
Direct finance lease
payments received in excess of revenue recognized |
39,368 |
|
14,220 |
|
36,462 |
|
13,231 |
|
Amortization of in-process revenue contracts |
(8,327 |
) |
(4,307 |
) |
(10,697 |
) |
(5,482 |
) |
|
|
|
|
|
Cash flow
from vessel operations from equity-accounted vessels |
317,362 |
|
133,537 |
|
392,334 |
|
172,809 |
|
(1) The Partnership's equity-accounted vessels for
the three months and year ended December 31, 2017 and 2016
include: the Partnership’s 40 percent ownership interest in Teekay
Nakilat (III) Corporation, which owns four LNG carriers; the
Partnership’s ownership interests of 49 percent and 50 percent,
respectively, in the Excalibur and Excelsior joint ventures, which
own one LNG carrier and one regasification unit, respectively; the
Partnership’s 33 percent ownership interest in four LNG carriers
servicing the Angola LNG project; the Partnership’s 52 percent
ownership interest in the Teekay LNG-Marubeni joint venture, which
owns six LNG carriers; the Partnership’s 50 percent ownership
interest in Exmar LPG BVBA, which owns and in-charters 23 vessels,
including three newbuildings, as at December 31, 2017,
compared to 23 vessels owned and in-chartered, including four
newbuildings, as at December 31, 2016; the Partnership’s 30
percent ownership interest in one LNG carrier and one LNG carrier
newbuilding as at December 31, 2017, compared to two LNG carrier
newbuildings as at December 31, 2016, and the Partnership's 20
percent ownership interest in two LNG carrier newbuildings for
Shell; the Partnership’s 50 percent ownership interest in six ARC7
LNG carrier newbuildings in the joint venture between the
Partnership and China LNG Shipping (Holdings) Limited; and the
Partnership's 30 percent ownership interest in Bahrain LNG W.L.L.,
which owns an LNG receiving and regasification terminal under
construction in Bahrain.
Teekay LNG Partners L.P.Appendix F -
Summarized Financial Information of Equity-Accounted Joint
Ventures(in thousands of U.S. Dollars)
|
As at December, 2017 |
As at December 31, 2016 |
|
(unaudited) |
(unaudited) |
|
At |
Partnership's |
At |
Partnership's |
100% |
Portion(1) |
100% |
Portion(1) |
Cash and restricted
cash, current and non-current |
295,148 |
|
128,004 |
|
400,090 |
|
167,813 |
|
Current portion of
derivative assets |
1,594 |
|
785 |
|
69 |
|
34 |
|
Other current
assets |
53,068 |
|
22,661 |
|
72,368 |
|
33,783 |
|
Vessels and equipment,
including vessels related to capital leases |
2,202,418 |
|
1,133,804 |
|
2,174,467 |
|
1,121,293 |
|
Advances on newbuilding
contracts |
1,211,210 |
|
450,523 |
|
824,534 |
|
303,162 |
|
Net investments in
direct financing leases, current and non-current |
2,013,759 |
|
722,408 |
|
1,816,365 |
|
665,599 |
|
Derivative assets |
4,602 |
|
2,259 |
|
4,928 |
|
2,413 |
|
Other
non-current assets |
86,167 |
|
54,060 |
|
68,886 |
|
41,764 |
|
Total
assets |
5,867,966 |
|
2,514,504 |
|
5,361,707 |
|
2,335,861 |
|
|
|
|
|
|
Current portion of
long-term debt and obligations related to capital leases |
162,915 |
|
73,975 |
|
209,814 |
|
99,994 |
|
Current portion of
derivative liabilities |
21,973 |
|
7,217 |
|
27,388 |
|
9,622 |
|
Other current
liabilities |
98,657 |
|
43,193 |
|
76,480 |
|
32,068 |
|
Long-term debt and
obligations related to capital leases |
3,023,713 |
|
1,231,433 |
|
2,677,447 |
|
1,087,425 |
|
Shareholders' loans,
current and non-current |
368,937 |
|
131,685 |
|
545,028 |
|
272,514 |
|
Derivative
liabilities |
73,454 |
|
24,235 |
|
82,738 |
|
27,526 |
|
Other long-term
liabilities |
77,297 |
|
39,855 |
|
80,170 |
|
41,500 |
|
Equity |
2,041,020 |
|
962,911 |
|
1,662,642 |
|
765,212 |
|
Total
liabilities and equity |
5,867,966 |
|
2,514,504 |
|
5,361,707 |
|
2,335,861 |
|
|
|
|
|
|
Investments in
equity-accounted joint ventures |
|
962,911 |
|
|
765,212 |
|
Advances
to equity-accounted joint ventures |
|
131,685 |
|
|
272,514 |
|
Investments in and advances to equity-accounted joint ventures |
|
1,094,596 |
|
|
1,037,726 |
|
(1) The Partnership's equity-accounted joint
ventures as at December 31, 2017 and December 31, 2016
include: the Partnership’s 40 percent ownership interest in Teekay
Nakilat (III) Corporation, which owns four LNG carriers; the
Partnership’s ownership interests of 49 percent and 50 percent,
respectively, in the Excalibur and Excelsior joint ventures, which
own one LNG carrier and one regasification unit, respectively; the
Partnership’s 33 percent ownership interest in four LNG carriers
servicing the Angola LNG project; the Partnership’s 52 percent
ownership interest in the Teekay LNG-Marubeni joint venture, which
owns six LNG carriers; the Partnership’s 50 percent ownership
interest in Exmar LPG BVBA, which owns and in-charters 23 vessels,
including three newbuildings, as at December 31, 2017,
compared to 23 vessels owned and in-chartered, including four
newbuildings, as at December 31, 2016; the Partnership’s 30
percent ownership interest in one LNG carrier and one LNG carrier
newbuilding as at December 31, 2017, compared to two LNG carrier
newbuildings as at December 31, 2016, and the Partnership's 20
percent ownership interest in two LNG carrier newbuildings for
Shell; the Partnership’s 50 percent ownership interest in six ARC7
LNG carrier newbuildings in the joint venture between the
Partnership and China LNG Shipping (Holdings) Limited; and the
Partnership's 30 percent ownership interest in Bahrain LNG W.L.L.,
which owns an LNG receiving and regasification terminal under
construction in Bahrain.
Forward-Looking Statements
This release contains forward-looking statements
(as defined in Section 21E of the Securities Exchange Act of 1934,
as amended) which reflect management’s current views with respect
to certain future events and performance, including statements
regarding: the effects of recent and future newbuilding deliveries
on the Partnership’s future cash flows and earnings; the timing of
newbuilding vessel deliveries and the commencement of related
contracts; the gain on sale of the S/S Excelsior; and the
Partnership’s expectation that the charterer of the Toledo Spirit
will cancel the charter contract and sell that vessel to a third
party in 2018. The following factors are among those that could
cause actual results to differ materially from the forward-looking
statements, which involve risks and uncertainties, and that should
be considered in evaluating any such statement: potential shipyard
and project construction delays, newbuilding specification changes
or cost overruns; changes in production of LNG or LPG, either
generally or in particular regions; changes in trading patterns or
timing of start-up of new LNG liquefaction and regasification
projects significantly affecting overall vessel tonnage
requirements; changes in applicable industry laws and regulations
and the timing of implementation of new laws and regulations; the
potential for early termination of long-term contracts of existing
vessels in the Partnership's fleet; the inability of charterers to
make future charter payments; the inability of the Partnership to
renew or replace long-term contracts on existing vessels; the
Partnership’s or the Partnership’s joint ventures’ ability to
secure or draw on financings for its vessels; and other factors
discussed in Teekay LNG Partners’ filings from time to time with
the SEC, including its Report on Form 20-F for the fiscal year
ended December 31, 2016. The Partnership expressly disclaims any
obligation 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.
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