Teekay Offshore GP L.L.C. (TOO GP), the general partner of Teekay
Offshore Partners L.P. (Teekay Offshore or the Partnership), today
reported the Partnership’s results for the quarter and year ended
December 31, 2019.
Consolidated Financial
Summary
|
|
|
|
|
|
Three Months Ended |
Year Ended |
|
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
(in thousands of U.S. Dollars, except per unit
data) |
2019 |
2019 (2) |
2018 |
2019 |
2018 |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
GAAP
FINANCIAL RESULTS |
|
|
|
|
|
Revenues |
312,142 |
|
|
299,447 |
|
|
445,213 |
|
1,268,000 |
|
|
1,416,424 |
|
Net (loss)
income |
(285,549 |
) |
|
(34,769 |
) |
|
67,842 |
|
(350,895 |
) |
|
(123,945 |
) |
Limited partners'
interest in net (loss) income per |
|
|
|
|
|
common unit - basic |
(0.71 |
) |
|
(0.10 |
) |
|
0.14 |
|
(0.92 |
) |
|
(0.36 |
) |
NON-GAAP
FINANCIAL RESULTS |
|
|
|
|
|
Adjusted EBITDA
(1) |
167,147 |
|
|
157,660 |
|
|
289,548 |
|
671,898 |
|
|
782,521 |
|
Adjusted net
income attributable to the partners |
|
|
|
|
|
preferred unitholders (1) |
19,796 |
|
|
4,659 |
|
|
130,463 |
|
58,696 |
|
|
149,587 |
|
Limited partners'
interest in adjusted net income |
|
|
|
|
|
per common unit (1) |
0.03 |
|
|
(0.01 |
) |
|
0.30 |
|
0.06 |
|
|
0.29 |
|
- 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).
- Please refer to Appendices to the
release announcing the results for the third quarter of 2019
attached as Exhibit 1 to the Form 6-K filed with the Securities and
Exchange Commission on November 7, 2019 for a reconciliation of
these non-GAAP measures to the most directly comparable financial
measures under GAAP.
Fourth Quarter of 2019 Compared to
Fourth Quarter of 2018
Revenues were $312 million in the fourth quarter
of 2019, a decrease of $133 million, compared to $445 million in
the same quarter of the prior year, primarily due to $91 million of
revenue related to the positive settlement with Petróleo Brasileiro
S.A. and certain of its subsidiaries (together Petrobras) recorded
during the fourth quarter of 2018, a decrease of $21 million due to
the amortization of non-cash deferred revenue relating to the
Piranema Spirit FPSO unit during the fourth quarter of 2018, a $12
million decrease due to fewer vessels in our CoA shuttle tanker
fleet during the fourth quarter of 2019 and the redelivery of an
older shuttle tanker in August 2019 and an $8 million decrease due
to the completion of the Ostras FPSO charter contract in March
2019.
Net loss increased to $286 million in the
fourth quarter of 2019 compared to net income of $68 million
in the same quarter of the prior year. A $326 million increase in
the net write-down of vessels and the decrease in revenues
described above was partially offset by a $61 million increase in
unrealized fair value gains mainly related to interest rate swap
derivative instruments, reflecting increased interest rate levels
in the fourth quarter of 2019 compared to decreased interest rate
levels in the fourth quarter of 2018, a $21 million increase in
equity income, a $10 million increase in foreign currency exchange
gains, a $6 million decrease in depreciation and amortization
expense due to the sale of certain shuttle tankers and a $5 million
decrease in interest expense.
Non-GAAP Adjusted EBITDA was $167 million in the
fourth quarter of 2019, representing a decrease of $123 million,
compared to $290 million in the fourth quarter of 2018. This
decrease was primarily due to the decrease in revenues, as
explained above, partially offset by a $9 million increase in
earnings from equity-accounted joint ventures.
Non-GAAP Adjusted Net Income was $20 million in
the fourth quarter of 2019, a decrease of $110 million compared to
$130 million in the fourth quarter of 2018, primarily due to the
$123 million decrease in Non-GAAP Adjusted EBITDA, partially offset
by a $6 million decrease in depreciation and amortization expense
and a $5 million decrease in interest expense.
Fourth Quarter of 2019 Compared to Third
Quarter of 2019
Revenues increased by $13 million to $312
million for the fourth quarter of 2019, compared to $299 million
for the third quarter of 2019, mainly due to increased utilization
and rates in the shuttle tanker and towage fleets, and net loss
increased by $251 million in the fourth quarter of 2019, compared
to the prior quarter. The net loss during the fourth quarter of
2019 was impacted by a $342 million write-down of vessels. This was
partially offset by the increase in revenues, as explained above, a
$39 million increase in the consolidated unrealized fair value
gains mainly related to interest rate swap derivative instruments,
a $23 million increase in equity income due to the recognition of a
maintenance bonus during the fourth quarter of 2019 and unrealized
fair value gains on derivative instruments within the
equity-accounted joint ventures, and an $11 million increase in
foreign currency exchange gains.
Non-GAAP Adjusted EBITDA was $167 million in the
fourth quarter of 2019, representing an increase of $9 million
compared to $158 million in the third quarter of 2019. The increase
was primarily due to an $8 million increase in earnings in the FPSO
segment mainly from the recognition of the maintenance bonus during
the fourth quarter of 2019 in the Pioneiro de Libra FPSO
equity-accounted joint venture.
Non-GAAP Adjusted Net Income was $20 million in
the fourth quarter of 2019, an increase of $15 million compared to
$5 million in the third quarter of 2019 due to the increase in
Non-GAAP Adjusted EBITDA and a $6 million decrease in interest
expense.
Fiscal Year 2019 Compared to Fiscal Year
2018
Revenues were $1,268 million for the year ended
December 31, 2019, compared to $1,416 million for the prior fiscal
year. The decrease in revenues was primarily due to $91 million of
revenue related to the positive settlement with Petrobras recorded
during the fourth quarter of 2018, a $33 million decrease due to
reduced charter rates under the Piranema Spirit FPSO contract
extension and the amortization of non-cash deferred revenue in
2018, and a $30 million decrease due to the expiration of the
Ostras FPSO charter contract in March 2019.
Net loss increased by $227 million for the year
ended December 31, 2019 compared to the prior fiscal year mainly
due to the $148 million decrease in revenues explained above, a
$109 million increase in the net write-down of vessels and a $98
million increase in realized and unrealized losses on derivative
instruments, partially offset by the absence in 2019 of $55 million
of losses on debt repurchases, a $30 million decrease in operating
expenses, a $23 million decrease in depreciation and amortization
expense, a $15 million decrease in income tax expense and a $12
million increase in foreign currency exchange gains.
Non-GAAP Adjusted EBITDA was $672 million for
the year ended December 31, 2019, compared to $783 million in the
prior fiscal year, representing a decrease of $111 million. This
decrease was due to the decrease in revenues, as explained above,
in particular the absence of the $91 million Petrobras settlement,
partially offset by a $30 million decrease in operating
expenses.
Non-GAAP Adjusted Net Income was $59 million for
the year ended December 31, 2019, a decrease of $91 million
compared to $150 million for 2018, primarily due to the decrease in
Non-GAAP Adjusted EBITDA, partially offset by a $23 million
decrease in depreciation and amortization expense.
Please refer to “Operating Results” for
additional information on variances by segment and Appendices A and
B for reconciliations between GAAP net (loss) income and Non-GAAP
Adjusted EBITDA and Adjusted Net Income, respectively.
Summary of Recent Events
Delivery of Shuttle Tanker
Newbuilding
In January 2020, the Partnership took delivery
of one LNG-fueled Aframax shuttle tanker newbuilding, the Aurora
Spirit. The vessel was constructed based on the Partnership's
E-shuttle design, which incorporates technologies intended to
increase fuel efficiency and reduce emissions, including LNG fuel
and recovered volatile organic compounds (VOCs) as secondary fuel,
as well as battery packs for flexible power distribution and
blackout prevention. The vessel will commence operations under an
existing master agreement with Equinor in the North Sea.
Completion of Brookfield Acquisition by
Merger
On January 22, 2020, Brookfield Business
Partners L.P., together with certain of its affiliates and
institutional partners (collectively, Brookfield), completed its
acquisition by merger (the Merger) of all of the outstanding
publicly held and listed common units representing limited partner
interests of the Partnership (common units) held by parties other
than Brookfield (unaffiliated unitholders) pursuant to the
agreement and plan of merger (the Merger Agreement) among the
Partnership, TOO GP and certain members of Brookfield.
Under the terms of the Merger Agreement, common
units held by unaffiliated unitholders were converted into the
right to receive $1.55 in cash per common unit (the cash
consideration), other than common units held by unaffiliated
unitholders who elected to receive the equity consideration (as
defined below). As an alternative to receiving the cash
consideration, each unaffiliated unitholder had the option to elect
to forego the cash consideration and instead receive one newly
designated unlisted Class A Common Unit of the Partnership per
common unit (the equity consideration). The Class A Common Units
are economically equivalent to the common units held by Brookfield
following the Merger, but have limited voting rights and limited
transferability.
As a result of the Merger, Brookfield owns 100%
of the Class B Common Units, representing approximately 98.7% of
the outstanding common units of the Partnership. All of the Class A
Common Units, representing approximately 1.3% of the outstanding
common units of the Partnership as of the closing of the Merger,
are held by the unaffiliated unitholders who elected to receive the
equity consideration in respect of their common units.
As a result of the Merger, and that the exercise
price of each of the outstanding warrants exceeded the cash
consideration, the warrants were automatically canceled and ceased
to exist. No consideration was delivered in respect thereof.
Pursuant to the terms of the Merger Agreement, the Partnership’s
outstanding preferred units were unchanged and remain outstanding
following the Merger.
Trading of the Partnership's common units was
suspended on the New York Stock Exchange (the NYSE) before the
beginning of trading on January 23, 2020. The Partnership requested
that the NYSE file a Form 25 with the United States Securities and
Exchange Commission (the SEC) notifying the SEC of the delisting of
its common units on the NYSE and the deregistration of the common
units. The deregistration of the common units will become effective
90 days after the filing of the Form 25 or such shorter period as
may be determined by the SEC.
Plan to Rebrand as Altera
Infrastructure
In January 2020, following the closing of the
Merger, the Partnership announced that it intends to change its
name in due course to Altera Infrastructure L.P. and, effective
from March 24, 2020, to rebrand the consolidated group of companies
under the new umbrella of Altera Infrastructure.
Changes to Board of
Directors
In January 2020, the Partnership announced the
following changes to the Board of Directors of TOO GP:
- The retirement of David L. Lemmon
as a TOO GP Director and a member of the Audit, Compensation and
Conflicts Committees, effective January 23, 2020, after 14 years
with the TOO GP’s Board of Directors.
- Mr. Lemmon's replacement on the
Audit Committee by Bill Utt, who is Chairman of the Board and
Chairman of the Governance Committee.
- The prospective retirement of
Kenneth Hvid, CEO of Teekay Corporation, as a TOO GP Director
effective June 17, 2020, after nine years with TOO GP's Board of
Directors.
Financing
In October 2019, a subsidiary of the
Partnership, Teekay Shuttle Tankers L.L.C., successfully placed
$125 million of senior unsecured green floating-rate bonds due in
October 2024. The bonds carry a coupon of three-month LIBOR plus
6.50%. The proceeds from the bonds will be to partially fund four
LNG-fueled shuttle tankers, one of which delivered to the
Partnership in January 2020, and the remaining of which vessels are
currently under construction with expected deliveries through
2021.
In October 2019, the Partnership secured a $100
million bridge term loan to provide pre- and post-delivery
financing for a shuttle tanker newbuilding to operate on the East
Coast of Canada, which matures in August 2022. The debt facility
bears interest at a rate of LIBOR plus 250 basis points until March
2020 and increases by 25 basis points per quarter thereafter. The
Partnership intends to refinance the bridge loan into the existing
East Coast Canada shuttle financing secured by the three vessels in
operation. The facility remains undrawn.
Økokrim Investigation
In January 2020, Økokrim (the Norwegian National
Authority for Investigation and Prosecution of Economic and
Environmental Crime) and the local Stavanger police raided Teekay
Shipping Norway AS' (a subsidiary of the Partnership) premises,
based on a search warrant issued pursuant to suspected violations
of Norwegian pollution and export laws in connection with the
export of the Navion Britannia shuttle tanker from the Norwegian
Continental Shelf in March 2018. The Partnership has not identified
such violations but continues to evaluate any potential liabilities
together with advisors.
Liquidity Update
As of December 31, 2019, the Partnership
had total liquidity of $304 million, including $105 million undrawn
on a revolving credit facility, an increase of $33 million compared
to September 30, 2019. The increase in liquidity was primarily due
to the Partnership's issuance of $125 million of senior unsecured
green bonds during the fourth quarter of 2019.
Operating Results
The commentary below compares certain results of
our operating segments (including the non-GAAP measure of Adjusted
EBITDA) for the three months ended December 31, 2019 to the same
period of the prior year, unless otherwise noted.
FPSO Segment
|
|
|
Three Months Ended |
|
December 31, |
September 30, |
December 31, |
|
2019 |
2019 |
2018 |
(in thousands of U.S.
Dollars) |
(unaudited) |
(unaudited) |
(unaudited) |
Revenues |
115,258 |
|
113,362 |
|
143,651 |
|
Adjusted EBITDA |
81,739 |
|
73,550 |
|
108,543 |
|
|
|
|
|
|
|
|
Adjusted EBITDA (including Adjusted EBITDA from
equity-accounted vessels) decreased by $27 million primarily due to
the absence of $21 million in the amortization of non-cash deferred
revenue relating to the Piranema Spirit FPSO unit and a decrease of
$8 million due to the expiration of the charter contract of the
Ostras FPSO unit in March 2019.
Adjusted EBITDA for the fourth quarter of 2019
increased by $8 million, compared to the third quarter of 2019,
primarily due the recognition of a maintenance bonus during the
fourth quarter of 2019 relating to the Libra FPSO unit in an
equity-accounted joint venture.
Shuttle Tanker Segment
|
|
|
Three Months Ended |
|
December 31, |
September 30, |
December 31, |
|
2019 |
2019 (2) |
2018 |
(in thousands of U.S.
Dollars) |
(unaudited) |
(unaudited) |
(unaudited) |
Revenues |
141,541 |
|
133,659 |
|
206,212 |
|
Adjusted EBITDA |
65,339 |
|
64,421 |
|
124,038 |
|
|
|
|
|
|
|
|
Adjusted EBITDA decreased by $59 million mainly
due to $55 million of revenues related to the positive settlement
with Petrobras received in the fourth quarter of the prior year and
a $5 million decrease due to the redelivery of the Stena Sirita
from its charter contract in August 2019, which had reached the end
of its estimated useful life.
Adjusted EBITDA for the fourth quarter of 2019
was generally in line with the third quarter of 2019.
FSO Segment
|
|
|
Three Months Ended |
|
December 31, |
September 30, |
December 31, |
|
2019 |
2019 |
2018 |
(in thousands of U.S.
Dollars) |
(unaudited) |
(unaudited) |
(unaudited) |
Revenues |
35,690 |
|
35,168 |
|
36,734 |
|
Adjusted EBITDA |
22,415 |
|
23,703 |
|
25,508 |
|
|
|
|
|
|
|
|
Adjusted EBITDA decreased by $3 million mainly
due to higher repair and maintenance expenses.
Adjusted EBITDA for the fourth quarter of 2019
was generally in line with the third quarter of 2019.
UMS Segment
|
|
|
Three Months Ended |
|
December 31, |
September 30, |
December 31, |
|
2019 |
2019 |
2018 |
(in thousands of U.S.
Dollars) |
(unaudited) |
(unaudited) |
(unaudited) |
Revenues |
446 |
|
|
441 |
|
|
36,536 |
|
Adjusted EBITDA |
(2,310 |
) |
|
(1,574 |
) |
|
35,011 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA decreased by $37 million due to
the absence of $37 million of revenues related to the positive
settlement with Petrobras received in the same quarter of the prior
year.
Adjusted EBITDA for the fourth quarter of 2019
was generally in line with the third quarter of 2019.
Towage Segment
|
|
|
Three Months Ended |
|
December 31, |
September 30, |
December 31, |
|
2019 |
2019 |
2018 |
(in thousands of U.S.
Dollars) |
(unaudited) |
(unaudited) |
(unaudited) |
Revenues |
19,207 |
|
16,817 |
|
|
15,252 |
|
|
Adjusted EBITDA |
1,467 |
|
(1,198 |
) |
|
(1,202 |
) |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA increased by $3 million compared
to both prior periods presented due to higher utilization.
Conventional Tanker Segment
|
|
|
Three Months Ended |
|
December 31, |
September 30, |
December 31, |
|
2019 |
2019 |
2018 |
(in thousands of U.S.
Dollars) |
(unaudited) |
(unaudited) |
(unaudited) |
Revenues |
— |
|
— |
|
6,828 |
|
|
Adjusted EBITDA |
— |
|
— |
|
(880 |
) |
|
|
|
|
|
|
|
|
|
The Partnership redelivered the two in-chartered
vessels to their owners in March and April 2019, respectively, and
no longer has activity in the conventional tanker segment.
Teekay Offshore’s Fleet
The following table summarizes Teekay Offshore’s
fleet as of February 6, 2020. In comparison to the
previously-reported fleet table in the release for the third
quarter of 2019, Teekay Offshore's fleet decreased by two vessels
due to the sale of the Navion Hispania and Stena Sirita shuttle
tankers in January 2020, both of which vessels had reached the end
of their estimated useful lives.
|
|
|
Number of Vessels |
|
Owned Vessels |
Chartered-in Vessels |
Committed Newbuildings |
Total |
FPSO Segment |
8 |
|
(i) |
— |
|
|
— |
|
|
8 |
|
|
Shuttle Tanker Segment |
24 |
|
(ii) |
2 |
|
|
6 |
|
(iii) |
32 |
|
|
FSO Segment |
5 |
|
|
— |
|
|
— |
|
|
5 |
|
|
UMS Segment |
1 |
|
|
— |
|
|
— |
|
|
1 |
|
|
Towage Segment |
10 |
|
|
— |
|
|
— |
|
|
10 |
|
|
Total |
48 |
|
|
2 |
|
|
6 |
|
|
56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Includes two FPSO units, the Cidade
de Itajai and Libra, in which Teekay Offshore’s ownership interest
is 50 percent.
- Includes four shuttle tankers in
which Teekay Offshore’s ownership interest is 50 percent and one
HiLoad DP unit.
- Includes six DP2 shuttle tanker
newbuildings scheduled for delivery through early-2022, one of
which will operate under Teekay Offshore's master agreement with
Equinor in the North Sea, four of which will join Teekay Offshore's
CoA portfolio in the North Sea and one which will operate under
Teekay Offshore's existing contracts on the East Coast of
Canada.
Conference Call
The Partnership plans to host a conference call
on Thursday, February 6, 2020 at 12:00 p.m. (ET) to discuss
the results for the fourth quarter of 2019. All unitholders and
interested parties are invited to listen to the live conference
call by choosing from the following options:
- By dialing 1-800-367-2403 or +1
(647) 490-5367, if outside North America, and quoting conference ID
code 3380755
- By accessing the webcast, which
will be available on Teekay Offshore's website at
www.teekayoffshore.com (the archive will remain on the website for
a period of one year).
An accompanying Fourth Quarter 2019 Earnings
Presentation will also be available at www.teekayoffshore.com in
advance of the conference call start time.
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, among others:
the timing and certainty of the delisting and deregistration of the
Partnership's common units; the timing of the retirement of Kenneth
Hvid from TOO GP's Board of Directors; the expected use of proceeds
from the Partnership's issuance of green bonds; the intended
refinancing of the Partnership's bridge loan; and the timing of
shuttle tanker newbuilding deliveries and the commencement of
related contracts. 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: changes in
exploration, production and storage of offshore oil and gas, either
generally or in particular regions that would impact expected
future growth, particularly in or related to North Sea, Brazil and
East Coast of Canada offshore fields; shipyard delivery delays and
cost overruns; delays in the commencement of charter contracts; and
other factors discussed in Teekay Offshore’s filings from time to
time with the SEC, including its Report on Form 20-F for the fiscal
year ended December 31, 2018. The Partnership expressly disclaims
any obligation or undertaking 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.
About Teekay Offshore Partners
L.P.
Teekay Offshore Partners L.P. is a leading
international midstream services provider to the offshore oil
production industry, primarily focused on the ownership and
operation of critical infrastructure assets in offshore oil regions
of the North Sea, Brazil and the East Coast of Canada. Teekay
Offshore has consolidated assets of approximately $4.9 billion,
comprised of 56 offshore assets, including floating production,
storage and offloading (FPSO) units, shuttle tankers (including six
newbuildings), floating storage and offtake (FSO) units,
long-distance towing and offshore installation vessels and a unit
for maintenance and safety (UMS). The majority of Teekay Offshore’s
fleet is employed on medium-term, stable contracts. Brookfield owns
100 percent of Teekay Offshore’s general partner.
Teekay Offshore's preferred units trade on the
New York Stock Exchange under the symbols "TOO PR A", "TOO PR B"
and "TOO PR E", respectively.
For Investor Relations enquiries contact:
Jan Rune Steinsland, Chief Financial OfficerTel: +47 51 44
27 00Website: www.teekayoffshore.com
Teekay Offshore Partners L.P.Summary
Consolidated Statements of (Loss) Income
|
|
|
|
|
|
Three Months Ended |
Year Ended |
|
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
(in thousands of U.S. Dollars, except per unit
data) |
2019 |
2019 |
2018 |
2019 |
2018 |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
|
|
|
Revenues |
312,142 |
|
|
299,447 |
|
|
445,213 |
|
|
1,268,000 |
|
|
1,416,424 |
|
|
Voyage
expenses |
(32,314 |
) |
|
(30,906 |
) |
|
(39,402 |
) |
|
(129,910 |
) |
|
(151,808 |
) |
|
Vessel operating
expenses |
(107,614 |
) |
|
(99,400 |
) |
|
(108,592 |
) |
|
(426,951 |
) |
|
(437,671 |
) |
|
Time-charter hire
expenses |
(10,236 |
) |
|
(11,119 |
) |
|
(13,281 |
) |
|
(44,427 |
) |
|
(52,616 |
) |
|
Depreciation and
amortization |
(84,911 |
) |
|
(86,336 |
) |
|
(91,023 |
) |
|
(349,379 |
) |
|
(372,290 |
) |
|
General and
administrative |
(25,094 |
) |
|
(16,947 |
) |
|
(14,335 |
) |
|
(76,245 |
) |
|
(65,427 |
) |
|
(Write-down) and
gain on sale of vessels |
(342,383 |
) |
|
(1,498 |
) |
|
(16,414 |
) |
|
(332,125 |
) |
|
(223,355 |
) |
|
Restructuring
recovery (charge) |
— |
|
|
— |
|
|
379 |
|
|
— |
|
|
(1,520 |
) |
|
Operating (loss) income |
(290,410 |
) |
|
53,241 |
|
|
162,545 |
|
|
(91,037 |
) |
|
111,737 |
|
|
|
|
|
|
|
|
Interest
expense |
(48,085 |
) |
|
(53,767 |
) |
|
(53,424 |
) |
|
(205,709 |
) |
|
(199,395 |
) |
|
Interest
income |
1,012 |
|
|
1,776 |
|
|
1,215 |
|
|
5,111 |
|
|
3,598 |
|
|
Realized and
unrealized gain (loss) |
|
|
|
|
|
|
on derivative instruments |
14,634 |
|
|
(27,600 |
) |
|
(40,465 |
) |
|
(85,195 |
) |
|
12,808 |
|
|
Equity income |
26,135 |
|
|
3,385 |
|
|
5,237 |
|
|
32,794 |
|
|
39,458 |
|
|
Foreign currency
exchange gain (loss) |
6,359 |
|
|
(5,387 |
) |
|
(3,344 |
) |
|
2,193 |
|
|
(9,413 |
) |
|
Losses on debt
repurchases |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(55,479 |
) |
|
Other income
(expense) - net |
870 |
|
|
(101 |
) |
|
(40 |
) |
|
(1,225 |
) |
|
(4,602 |
) |
|
(Loss) income before income tax expense |
(289,485 |
) |
|
(28,453 |
) |
|
71,724 |
|
|
(343,068 |
) |
|
(101,288 |
) |
|
Income tax
recovery (expense) |
3,936 |
|
|
(6,316 |
) |
|
(3,882 |
) |
|
(7,827 |
) |
|
(22,657 |
) |
|
Net (loss) income |
(285,549 |
) |
|
(34,769 |
) |
|
67,842 |
|
|
(350,895 |
) |
|
(123,945 |
) |
|
|
|
|
|
|
|
Non-controlling
interests in net (loss) income |
147 |
|
|
(1,817 |
) |
|
1,476 |
|
|
(1,384 |
) |
|
(7,161 |
) |
|
Preferred
unitholders' interest in net (loss) income |
8,038 |
|
|
8,038 |
|
|
8,038 |
|
|
32,150 |
|
|
31,485 |
|
|
General partner’s
interest in net (loss) income |
(2,223 |
) |
|
(311 |
) |
|
443 |
|
|
(2,891 |
) |
|
(1,128 |
) |
|
Limited partners’
interest in net (loss) income |
(291,511 |
) |
|
(40,679 |
) |
|
57,885 |
|
|
(378,770 |
) |
|
(147,141 |
) |
|
Limited partner's
interest in net (loss) income per |
|
|
|
|
|
|
common unit |
|
|
|
|
|
|
- basic |
(0.71 |
) |
|
(0.10 |
) |
|
0.14 |
|
|
(0.92 |
) |
|
(0.36 |
) |
|
|
- diluted |
(0.71 |
) |
|
(0.10 |
) |
|
0.12 |
|
|
(0.92 |
) |
|
(0.36 |
) |
|
Weighted-average
number of common units |
|
|
|
|
|
|
- basic |
411,158,400 |
|
|
410,801,717 |
|
|
410,314,977 |
|
|
410,727,035 |
|
|
410,261,239 |
|
|
|
- diluted |
411,158,400 |
|
|
410,801,717 |
|
|
475,565,613 |
|
|
410,727,035 |
|
|
410,261,239 |
|
|
Total number of
common units outstanding |
|
|
|
|
|
|
at end
of period |
411,148,991 |
|
|
411,188,338 |
|
|
410,314,977 |
|
|
411,148,991 |
|
|
410,314,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Teekay Offshore Partners
L.P.Consolidated Balance Sheets
|
|
|
|
|
|
|
As at |
As at |
As at |
|
|
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
(in
thousands of U.S. Dollars) |
(unaudited) |
(unaudited) |
(unaudited) |
ASSETS |
|
|
|
Current |
|
|
|
Cash and cash
equivalents |
199,388 |
|
270,827 |
|
225,040 |
|
Restricted
cash |
17,798 |
|
17,961 |
|
8,540 |
|
Accounts
receivable |
204,020 |
|
168,593 |
|
141,903 |
|
Vessels held for
sale |
15,374 |
|
19,756 |
|
12,528 |
|
Prepaid
expenses |
29,887 |
|
28,136 |
|
32,199 |
|
Due from related
parties |
— |
|
— |
|
58,885 |
|
Other current
assets |
7,467 |
|
5,830 |
|
11,879 |
|
Total current assets |
473,934 |
|
511,103 |
|
490,974 |
|
|
|
|
|
|
Restricted cash -
long-term |
89,070 |
|
— |
|
— |
|
Vessels and
equipment |
|
|
|
At cost, less accumulated depreciation |
3,511,758 |
|
3,929,521 |
|
4,196,909 |
|
Advances on
newbuilding contracts |
257,017 |
|
220,186 |
|
73,713 |
|
Investment in
equity-accounted joint ventures |
234,627 |
|
212,589 |
|
212,202 |
|
Deferred tax
asset |
7,000 |
|
2,146 |
|
9,168 |
|
Due from related
parties |
— |
|
— |
|
949 |
|
Other assets |
220,716 |
|
205,775 |
|
198,992 |
|
Goodwill |
129,145 |
|
129,145 |
|
129,145 |
|
Total assets |
4,923,267 |
|
5,210,465 |
|
5,312,052 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current |
|
|
|
Accounts
payable |
56,699 |
|
105,377 |
|
16,423 |
|
Accrued
liabilities |
140,976 |
|
111,861 |
|
129,896 |
|
Deferred
revenues |
53,728 |
|
57,735 |
|
55,750 |
|
Due to related
parties |
20,000 |
|
— |
|
183,795 |
|
Current portion of
derivative instruments |
18,956 |
|
18,061 |
|
23,290 |
|
Current portion of
long-term debt |
353,238 |
|
358,781 |
|
554,336 |
|
Other current
liabilities |
14,793 |
|
4,198 |
|
15,062 |
|
Total current liabilities |
658,390 |
|
656,013 |
|
978,552 |
|
|
|
|
|
|
Long-term
debt |
2,825,712 |
|
2,704,685 |
|
2,543,406 |
|
Derivative
instruments |
143,222 |
|
168,965 |
|
94,354 |
|
Due to related
parties |
— |
|
125,000 |
|
— |
|
Other long-term
liabilities |
223,877 |
|
188,147 |
|
236,616 |
|
Total liabilities |
3,851,201 |
|
3,842,810 |
|
3,852,928 |
|
|
|
|
|
|
Equity |
|
|
|
Limited partners -
common units |
505,394 |
|
796,815 |
|
883,090 |
|
Limited partners - preferred
units |
|
384,274 |
|
384,274 |
|
384,274 |
|
General Partner |
|
12,164 |
|
14,385 |
|
15,055 |
|
Warrants |
132,225 |
|
132,225 |
|
132,225 |
|
Accumulated other
comprehensive income |
4,410 |
|
6,504 |
|
7,361 |
|
Non-controlling interests |
|
33,599 |
|
33,452 |
|
37,119 |
|
Total equity |
1,072,066 |
|
1,367,655 |
|
1,459,124 |
|
Total liabilities and total equity |
4,923,267 |
|
5,210,465 |
|
5,312,052 |
|
|
|
|
|
|
|
|
Teekay Offshore Partners
L.P.Consolidated Statements of Cash
Flows
|
|
|
Year Ended |
|
December 31, 2019 |
December 31, 2018 |
(in thousands of U.S.
Dollars) |
(unaudited) |
(unaudited) |
Cash, cash equivalents and
restricted cash provided by (used for) |
|
|
OPERATING
ACTIVITIES |
|
|
Net loss |
(350,895 |
) |
|
(123,945 |
) |
|
Adjustments to reconcile net
loss to net operating cash flow: |
|
|
Unrealized loss (gain) on derivative instruments |
50,956 |
|
|
(53,419 |
) |
|
Equity income, net of dividends received of $17,655 (2018 -
$6,200) |
(15,139 |
) |
|
(33,258 |
) |
|
Depreciation and amortization |
349,379 |
|
|
372,290 |
|
|
Write-down and (gain) on sale of vessels |
332,125 |
|
|
223,355 |
|
|
Deferred income tax expense |
3,161 |
|
|
18,606 |
|
|
Amortization of in-process revenue contracts |
(15,062 |
) |
|
(35,219 |
) |
|
Expenditures for dry docking |
(15,890 |
) |
|
(21,411 |
) |
|
Other |
(31,142 |
) |
|
16,871 |
|
|
Change in non-cash working
capital items related to operating activities |
12,416 |
|
|
(83,227 |
) |
|
Net operating cash flow |
319,909 |
|
|
280,643 |
|
|
FINANCING ACTIVITIES |
|
|
Proceeds from long-term
debt |
492,517 |
|
|
734,698 |
|
|
Scheduled repayments of
long-term debt and settlement of related swaps |
(410,429 |
) |
|
(567,298 |
) |
|
Prepayments of long-term debt
and settlement of related swaps |
— |
|
|
(457,426 |
) |
|
Financing issuance costs |
(23,755 |
) |
|
(14,128 |
) |
|
Proceeds from financing
related to sales and leaseback of vessels |
23,800 |
|
|
— |
|
|
Proceeds from issuance of
preferred units |
— |
|
|
120,000 |
|
|
Expenses relating to equity
offerings |
— |
|
|
(3,997 |
) |
|
Proceeds from credit facility
due to related parties |
95,000 |
|
|
125,000 |
|
|
Prepayments of credit facility
due to related parties |
(200,000 |
) |
|
— |
|
|
Cash distributions paid by the
Partnership |
(32,150 |
) |
|
(46,675 |
) |
|
Cash distributions paid by
subsidiaries to non-controlling interests |
(3,636 |
) |
|
(12,048 |
) |
|
Cash contributions paid from
non-controlling interests to subsidiaries |
1,500 |
|
|
1,500 |
|
|
Other |
(865 |
) |
|
(964 |
) |
|
Net financing cash flow |
(58,018 |
) |
|
(121,338 |
) |
|
INVESTING ACTIVITIES |
|
|
Net payments for vessels and
equipment, including advances on newbuilding |
|
|
contracts and conversion costs |
(214,670 |
) |
|
(233,736 |
) |
|
Proceeds from sale of vessels
and equipment |
33,341 |
|
|
30,049 |
|
|
Investment in equity-accounted
joint ventures |
(7,886 |
) |
|
(3,000 |
) |
|
Direct financing lease
payments received |
— |
|
|
5,414 |
|
|
Acquisition of companies from
Teekay Corporation (net of cash acquired of $26.6 |
— |
|
|
25,254 |
|
|
million) |
Net investing cash flow |
(189,215 |
) |
|
(176,019 |
) |
|
Increase (decrease) in cash, cash equivalents and restricted
cash |
72,676 |
|
|
(16,714 |
) |
|
Cash, cash equivalents and
restricted cash, beginning of the year |
233,580 |
|
|
250,294 |
|
|
Cash, cash equivalents and restricted cash, end of the
year |
306,256 |
|
|
233,580 |
|
|
|
|
|
|
|
|
|
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 (SEC). These non-GAAP
financial measures, including Consolidated Adjusted EBITDA,
Adjusted EBITDA and Adjusted Net Income, are intended to provide
additional information and should not be considered substitutes for
measures of performance prepared in accordance with GAAP. In
addition, these measures do not have standardized meanings, and may
not be comparable to similar measures presented by other companies.
These non-GAAP measures are used by management, and the Partnership
believes that these supplementary metrics assist investors and
other users of its financial reports in comparing financial and
operating performance of the Partnership across reporting periods
and with other companies.
Non-GAAP Financial Measures
Consolidated Adjusted EBITDA represents net
(loss) income before interest, taxes, and depreciation and
amortization and is adjusted to exclude certain items whose timing
or amount cannot be reasonably estimated in advance or that are not
considered representative of core operating performance. Such
adjustments include vessel write-downs, gains or losses on the sale
of vessels, unrealized gains or losses on derivative instruments,
foreign exchange gains or losses, losses on debt repurchases, and
certain other income or expenses. Consolidated Adjusted EBITDA also
excludes realized gains or losses on interest rate swaps as
management, in assessing the Partnership's performance, views these
gains or losses as an element of interest expense, and realized
gains or losses on derivative instruments resulting from amendments
or terminations of the underlying instruments. Consolidated
Adjusted EBITDA also excludes equity income as the Partnership does
not control its equity-accounted investments, and as a result, the
Partnership does not have the unilateral ability to determine
whether the cash generated by its equity-accounted investments is
retained within the entity in which the Partnership holds the
equity-accounted investment or distributed to the Partnership and
other owners. In addition, the Partnership does not control the
timing of any such distributions to the Partnership and other
owners.
Adjusted EBITDA represents Consolidated Adjusted
EBITDA further adjusted to include the Partnership's proportionate
share of consolidated adjusted EBITDA from its equity-accounted
joint ventures and to exclude the non-controlling interests'
proportionate share of the consolidated adjusted EBITDA from the
Partnership's consolidated joint ventures. Readers are cautioned
when using Adjusted EBITDA as a liquidity measure as the amount
contributed from Adjusted EBITDA from the equity-accounted
investments may not be available or distributed to the Partnership
in the periods such Adjusted EBITDA is generated by the
equity-accounted investments. Please refer to Appendices A and C of
this release for reconciliations of Adjusted EBITDA to net (loss)
income and equity income, respectively, the most directly
comparable GAAP measures reflected in the Partnership’s
consolidated financial statements.
Adjusted Net Income represents net (loss) income
adjusted to exclude the impact of certain items whose timing or
amount cannot be reasonably estimated in advance or that are not
considered representative of core operating performance consistent
with the calculation of Adjusted EBITDA. Adjusted Net Income
includes realized gains or losses on interest rate swaps as an
element of interest expense and excludes income tax expenses or
recoveries from changes in valuation allowance or uncertain tax
provisions. Please refer to Appendix B of this release for a
reconciliation of this non-GAAP financial measure to net (loss)
income, the most directly comparable GAAP measure reflected in the
Partnership’s consolidated financial statements.
Teekay Offshore Partners L.P.Appendix A
- Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
|
|
|
|
|
|
|
|
Three Months Ended |
Year Ended |
|
|
December 31, |
December 31, |
|
|
|
2019 |
2018 |
2019 |
2018 |
(in
thousands of U.S. Dollars) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
|
|
|
Net (loss) income |
(285,549 |
) |
|
67,84 |
|
|
(350,895 |
) |
|
(123,945 |
) |
|
|
Depreciation and
amortization |
84,911 |
|
|
91,023 |
|
|
349,379 |
|
|
372,290 |
|
|
|
Interest expense,
net of interest income |
47,073 |
|
|
52,209 |
|
|
200,598 |
|
|
195,797 |
|
|
|
Income tax (recovery) expense |
(3,936 |
) |
|
3,882 |
|
|
7,827 |
|
|
22,657 |
|
|
EBITDA |
(157,501 |
) |
|
214,956 |
|
|
206,909 |
|
|
466,799 |
|
|
Add (subtract) specific income statement items
affecting EBITDA: |
|
|
|
|
|
Write-down and (gain) on sale of vessels |
342,383 |
|
|
16,414 |
|
|
332,125 |
|
|
223,355 |
|
|
|
Realized and
unrealized (gain) loss on derivative instruments |
(14,634 |
) |
|
40,465 |
|
|
85,195 |
|
|
(12,808 |
) |
|
|
Equity income |
(26,135 |
) |
|
(5,237 |
) |
|
(32,794 |
) |
|
(39,458 |
) |
|
|
Foreign currency
exchange (gain) loss |
(6,359 |
) |
|
3,344 |
|
|
(2,193 |
) |
|
9,413 |
|
|
|
Losses on debt
repurchases |
— |
|
|
— |
|
|
— |
|
|
55,479 |
|
|
|
Other (income)
expense - net |
(870 |
) |
|
40 |
|
|
1,225 |
|
|
4,602 |
|
|
|
Realized loss on
foreign currency forward contracts |
(1,495 |
) |
|
(1,470 |
) |
|
(5,054 |
) |
|
(1,228 |
) |
|
Total
adjustments |
292,890 |
|
|
53,556 |
|
|
378,504 |
|
|
239,355 |
|
|
Consolidated Adjusted EBITDA |
135,389 |
|
|
268,512 |
|
|
585,413 |
|
|
706,154 |
|
|
|
Add: Adjusted
EBITDA from equity-accounted vessels (See Appendix C) |
34,198 |
|
|
25,270 |
|
|
97,849 |
|
|
92,637 |
|
|
|
Less: Adjusted
EBITDA attributable to non-controlling interests (1) |
(2,440 |
) |
|
(4,234 |
) |
|
(11,364 |
) |
|
(16,270 |
) |
|
Adjusted EBITDA |
167,147 |
|
|
289,548 |
|
|
671,898 |
|
|
782,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA attributable to
non-controlling interests is summarized in the table
below.
|
|
|
|
|
|
|
|
Three Months Ended |
Year Ended |
|
|
December 31, |
December 31, |
|
|
|
2019 |
2018 |
2019 |
2018 |
(in
thousands of U.S. Dollars) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Net (loss)
income attributable to non-controlling interests |
147 |
|
|
1,476 |
|
|
(1,384 |
) |
|
(7,161 |
) |
|
|
Depreciation and
amortization |
2,006 |
|
|
2,809 |
|
|
10,525 |
|
|
14,617 |
|
|
|
Interest expense,
net of interest income |
308 |
|
|
439 |
|
|
1,470 |
|
|
2,064 |
|
|
EBITDA
attributable to non-controlling interests |
2,461 |
|
|
4,724 |
|
|
10,611 |
|
|
9,520 |
|
|
Add (subtract) specific income statement items
affecting EBITDA: |
|
|
|
|
|
(Gain) on sale and
write-down of vessels |
— |
|
|
(500 |
) |
|
746 |
|
|
6,711 |
|
|
|
Foreign currency
exchange (gain) loss |
(21 |
) |
|
10 |
|
|
7 |
|
|
39 |
|
|
Total
adjustments |
(21 |
) |
|
(490 |
) |
|
753 |
|
|
6,750 |
|
|
Adjusted EBITDA attributable to non-controlling
interests |
2,440 |
|
|
4,234 |
|
|
11,364 |
|
|
16,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Teekay Offshore Partners L.P.Appendix B
- Reconciliation of Non-GAAP Financial
MeasuresAdjusted Net Income
|
|
|
|
|
|
|
|
Three Months Ended |
Year Ended |
|
|
|
December 31, |
December 31, |
|
|
|
2019 |
2018 |
2019 |
2018 |
(in
thousands of U.S. Dollars, except per unit data) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Net (loss)
income |
(285,549 |
) |
|
67,842 |
|
(350,895 |
) |
|
(123,945 |
) |
|
Adjustments: |
|
|
|
|
|
Net (loss) income
attributable to non-controlling interests |
147 |
|
|
1,476 |
|
(1,384 |
) |
|
(7,161 |
) |
|
Net (loss) income attributable to the partners and
preferred unitholders |
(285,696 |
) |
|
66,366 |
|
(349,511 |
) |
|
(116,784 |
) |
|
Add
(subtract) specific items affecting net (loss) income: |
|
|
|
|
|
Write-down and
(gain) on sale of vessels |
342,383 |
|
|
16,414 |
|
332,125 |
|
|
223,355 |
|
|
|
Unrealized (gain)
loss on derivative instruments |
(25,970 |
) |
|
34,719 |
|
50,956 |
|
|
(52,047 |
) |
|
|
Realized loss on
interest rate swap amendments |
5,000 |
|
|
— |
|
14,000 |
|
|
16,250 |
|
|
|
Foreign currency
exchange (gain) loss (1) |
(6,359 |
) |
|
3,201 |
|
(2,629 |
) |
|
6,532 |
|
|
|
Losses on debt
repurchases |
— |
|
|
— |
|
— |
|
|
55,479 |
|
|
|
Other (income)
expense - net |
(870 |
) |
|
40 |
|
1,225 |
|
|
4,602 |
|
|
|
Deferred income
tax (recovery) expense relating to Norwegian tax structure |
(4,900 |
) |
|
2,719 |
|
2,126 |
|
|
18,822 |
|
|
|
Other adjustments
(2) |
— |
|
|
— |
|
— |
|
|
2,164 |
|
|
|
Adjustments
related to equity-accounted vessels (3) |
(3,813 |
) |
|
6,514 |
|
11,157 |
|
|
(2,036 |
) |
|
|
Adjustments
related to non-controlling interests (4) |
21 |
|
|
490 |
|
(753 |
) |
|
(6,750 |
) |
|
Total
adjustments |
305,492 |
|
|
64,097 |
|
408,207 |
|
|
266,371 |
|
|
Adjusted net income attributable to the partners and
preferred |
19,796 |
|
|
130,463 |
|
58,696 |
|
|
149,587 |
|
|
|
unitholders |
|
|
|
|
|
|
Preferred
unitholders' interest in adjusted net income |
8,038 |
|
|
8,038 |
|
32,150 |
|
|
31,485 |
|
|
General Partner's
interest in adjusted net income |
89 |
|
|
931 |
|
202 |
|
|
898 |
|
|
Limited partners'
interest in adjusted net income |
11,669 |
|
|
121,494 |
|
26,344 |
|
|
117,204 |
|
|
Limited partners'
interest in adjusted net income per common unit, basic |
0.03 |
|
|
0.30 |
|
0.06 |
|
|
0.29 |
|
|
Weighted-average number of common units outstanding, basic |
411,158,400 |
|
|
410,314,977 |
|
410,727,035 |
|
|
410,261,239 |
|
|
- Foreign currency exchange (gain) loss primarily relates to the
Partnership's revaluation of all foreign currency-denominated
assets and liabilities based on the prevailing exchange rate at the
end of each reporting period and unrealized gain or loss related to
the Partnership's cross-currency swaps related to the Partnership's
Norwegian Krone (NOK) bonds, and excludes the realized gain or loss
relating to the Partnership's cross-currency swaps and NOK
bonds.
- Other adjustments primarily reflects voyage expenses, vessel
operating expense, depreciation and amortization expense and
general and administrative expenses relating to vessels undergoing
upgrades or newbuilding vessels prior to the commencement of their
respective charter contracts.
- Reflects the Partnership's proportionate share of specific
items affecting the net income of the Cidade de Itajai FPSO unit
and Libra FPSO unit equity-accounted joint ventures, including the
unrealized gain or loss on derivative instruments and the foreign
exchange gain or loss.
- Items affecting net (loss) income include amounts attributable
to the Partnership’s consolidated non-wholly-owned subsidiaries.
Each item affecting net (loss) income is 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
adjustments relate to the gain on sale or write-down of vessels and
foreign currency exchange gain or loss within the Partnership's
consolidated non-wholly-owned subsidiaries.
Teekay Offshore Partners L.P.Appendix C
- Reconciliation of Non-GAAP Financial
Measures Adjusted EBITDA From
Equity-Accounted Vessels
|
|
|
|
|
|
Three Months Ended |
Three Months Ended |
|
|
December 31, 2019 |
December 31, 2018 |
(in
thousands of U.S. Dollars) |
(unaudited) |
(unaudited) |
|
|
At 100% |
Partnership's 50% |
At 100% |
Partnership's 50% |
Revenues |
84,543 |
|
|
42,272 |
|
|
77,566 |
|
|
38,783 |
|
|
Vessel and other operating expenses |
(16,148 |
) |
|
(8,074 |
) |
|
(27,026 |
) |
|
(13,513 |
) |
|
Depreciation and amortization |
(15,670 |
) |
|
(7,835 |
) |
|
(15,905 |
) |
|
(7,952 |
) |
|
Operating
income of equity-accounted vessels |
52,725 |
|
|
26,363 |
|
|
34,635 |
|
|
17,318 |
|
|
Net interest expense |
(6,870 |
) |
|
(3,435 |
) |
|
(11,441 |
) |
|
(5,721 |
) |
|
Realized and
unrealized gain (loss) on derivative instruments (1) |
6,307 |
|
|
3,154 |
|
|
(13,325 |
) |
|
(6,663 |
) |
|
Foreign currency exchange gain |
406 |
|
|
203 |
|
|
314 |
|
|
157 |
|
|
Total other
items |
(157 |
) |
|
(78 |
) |
|
(24,452 |
) |
|
(12,227 |
) |
|
Net income / equity income of equity-accounted
vessels |
52,568 |
|
|
26,285 |
|
|
10,183 |
|
|
5,09 |
|
|
|
before income tax (expense)
recovery |
Income tax (expense) recovery |
(300 |
) |
|
(150 |
) |
|
291 |
|
|
146 |
|
|
Net
income / equity income of equity-accounted vessels |
52,268 |
|
|
26,135 |
|
|
10,474 |
|
|
5,237 |
|
|
|
Depreciation and
amortization |
15,670 |
|
|
7,835 |
|
|
15,905 |
|
|
7,952 |
|
|
|
Net interest expense |
6,870 |
|
|
3,435 |
|
|
11,441 |
|
|
5,721 |
|
|
|
Income tax expense
(recovery) |
300 |
|
|
150 |
|
|
(291 |
) |
|
(146 |
) |
|
EBITDA |
75,108 |
|
|
37,555 |
|
|
37,529 |
|
|
18,764 |
|
|
Add (subtract) specific items affecting
EBITDA: |
|
|
|
|
|
Realized and unrealized (gain)
loss on derivative instruments (1) |
(6,307 |
) |
|
(3,154 |
) |
|
13,325 |
|
|
6,663 |
|
|
|
Foreign currency exchange
gain |
(406 |
) |
|
(203 |
) |
|
(314 |
) |
|
(157 |
) |
|
Adjusted EBITDA from equity-accounted vessels |
68,395 |
|
|
34,198 |
|
|
50,540 |
|
|
25,270 |
|
|
- Realized and unrealized (loss) gain on derivative instruments
includes an unrealized gain of $7.2 million ($3.6 million at the
Partnership’s 50% share) for the three months ended December 31,
2019 and an unrealized loss of $13.3 million ($6.7 million at the
Partnership’s 50% share) for the three months ended December 31,
2018 related to interest rate swaps for the Cidade de Itajai and
Libra FPSO units.
|
|
|
|
|
|
Year Ended |
Year Ended |
|
|
December 31, 2019 |
December 31, 2018 |
(in
thousands of U.S. Dollars) |
(unaudited) |
(unaudited) |
|
|
At 100% |
Partnership's 50% |
At 100% |
Partnership's 50% |
Revenues |
261,574 |
|
|
130,787 |
|
|
262,205 |
|
|
131,103 |
|
Vessel and other operating expenses |
(65,877 |
) |
|
(32,938 |
) |
|
(76,931 |
) |
|
(38,466 |
) |
Depreciation and amortization |
(65,067 |
) |
|
(32,534 |
) |
|
(61,893 |
) |
|
(30,947 |
) |
Operating
income of equity-accounted vessels |
130,630 |
|
|
65,315 |
|
|
123,381 |
|
|
61,690 |
|
Net interest expense (1) |
(39,499 |
) |
|
(19,749 |
) |
|
(37,166 |
) |
|
(18,585 |
) |
Realized and unrealized loss on derivative
instruments(2) |
(25,053 |
) |
|
(12,527 |
) |
|
(7,047 |
) |
|
(3,523 |
) |
Foreign currency exchange gain |
10 |
|
|
5 |
|
|
636 |
|
|
318 |
|
Total other
items |
(64,542 |
) |
|
(32,271 |
) |
|
(43,577 |
) |
|
(21,790 |
) |
Net income / equity income of equity-accounted
vessels |
66,088 |
|
|
33,044 |
|
|
79,804 |
|
|
39,900 |
|
|
before income tax expense |
Income tax expense |
(501 |
) |
|
(250 |
) |
|
(883 |
) |
|
(442 |
) |
Net
income / equity income of equity-accounted vessels |
65,587 |
|
|
32,794 |
|
|
78,921 |
|
|
39,458 |
|
|
Depreciation and
amortization |
65,067 |
|
|
32,534 |
|
|
61,893 |
|
|
30,947 |
|
|
Net interest expense(1) |
39,499 |
|
|
19,749 |
|
|
37,166 |
|
|
18,585 |
|
|
Income tax expense |
501 |
|
|
250 |
|
|
883 |
|
|
442 |
|
EBITDA |
170,654 |
|
|
85,327 |
|
|
178,863 |
|
|
89,432 |
|
Add (subtract) specific items affecting
EBITDA: |
|
|
|
|
|
Realized and unrealized loss
on derivative instruments(2) |
25,053 |
|
|
12,527 |
|
|
7,047 |
|
|
3,523 |
|
|
Foreign currency exchange
gain |
(10 |
) |
|
(5 |
) |
|
(636 |
) |
|
(318 |
) |
Adjusted EBITDA from equity-accounted vessels |
195,697 |
|
|
97,849 |
|
|
185,274 |
|
|
92,637 |
|
- Net interest expense for the year
ended December 30, 2018 includes an unrealized gain of $9.7 million
($4.9 million at the Partnership's 50% share) related to interest
rate swaps designated and qualifying as cash flow hedges for the
Libra FPSO unit.
- Realized and unrealized loss on
derivative instruments includes an unrealized loss of $22.4 million
($11.2 million at the Partnership’s 50% share) for the year ended
December 31, 2019 and an unrealized loss of $6.3 million ($3.1
million at the Partnership’s 50% share) for the year ended December
31, 2018 related to interest rate swaps for the Cidade de Itajai
FPSO unit.
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