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, 2019.
Consolidated Financial Summary
| |
Three Months Ended |
Year Ended |
| |
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
December 31, 2019 |
December 31, 2018 |
| (in thousands of U.S.
Dollars, except per unit data) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
| GAAP FINANCIAL COMPARISON |
|
|
|
|
|
|
Voyage revenues |
148,797 |
|
149,655 |
|
149,805 |
|
601,256 |
|
510,762 |
|
| Income from vessel
operations |
83,604 |
|
71,611 |
|
65,164 |
|
299,253 |
|
147,809 |
|
| Equity income |
30,207 |
|
21,296 |
|
949 |
|
58,819 |
|
53,546 |
|
| Net income attributable to the
partners and preferred unitholders |
67,370 |
|
47,368 |
|
6,579 |
|
152,790 |
|
28,369 |
|
| Limited partners’ interest in
net income per common unit |
0.77 |
|
0.51 |
|
0.00 |
|
1.59 |
|
0.03 |
|
| NON-GAAP FINANCIAL
COMPARISON |
|
|
|
|
|
| Total adjusted
revenues(1) |
246,414 |
|
240,134 |
|
225,691 |
|
935,474 |
|
777,150 |
|
| Total adjusted EBITDA(1) |
184,168 |
|
180,216 |
|
150,099 |
|
684,667 |
|
515,292 |
|
| Distributable cash flow
(DCF)(1) |
71,350 |
|
70,925 |
|
51,211 |
|
252,819 |
|
158,882 |
|
| Adjusted net income
attributable to the partners and preferred unitholders(1) |
50,342 |
|
50,514 |
|
32,636 |
|
168,656 |
|
87,703 |
|
| Limited
partners’ interest in adjusted net income per common unit |
0.56 |
|
0.55 |
|
0.32 |
|
1.79 |
|
0.76 |
|
| |
|
|
|
|
|
|
|
|
|
|
(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).
Fourth Quarter of 2019 Compared to Fourth
Quarter of 2018
GAAP net income and non-GAAP adjusted net income
attributable to the partners and preferred unitholders for the
three months ended December 31, 2019, compared to the same
quarter in the prior year, were positively impacted by: earnings
from the seven liquefied natural gas (LNG) carrier newbuildings
which delivered into the Partnership’s consolidated fleet and
equity-accounted joint ventures between December 2018 and December
2019; higher earnings from the Torben Spirit upon redeployment at a
higher charter rate in December 2018; a decrease in off-hire days
for certain of the Partnership's vessels; higher earnings from the
Partnership’s 52 percent-owned joint venture with Marubeni
Corporation (the MALT Joint Venture) as a result of the one-year
charter contracts that were secured at higher rates for the Arwa
Spirit and Marib Spirit in June and July 2019, respectively; higher
earnings from the Partnership’s 50 percent-owned joint venture with
Exmar NV (the Exmar LPG Joint Venture) from higher charter rates
earned; and improved results from the Partnership's seven multi-gas
carriers. These increases were partially offset by a reduction in
earnings due to the sale of the Partnership's four remaining
conventional crude oil tankers between October 2018 and October
2019.
In addition, GAAP net income attributable to the
partners and preferred unitholders was positively impacted for the
three months ended December 31, 2019, compared to the same
quarter of the prior year, by various items, including
unrealized gains on non-designated derivative instruments in the
fourth quarter of 2019, compared to unrealized losses on
non-designated derivative instruments in the fourth quarter of
2018; and the gain recognized in the fourth quarter of 2019 upon
derecognition of vessels and reclassification as sales-type leases
for the Partnership's two LNG carriers on charter to Awilco,
compared to impairment charges recorded in the fourth quarter of
2018 relating to the Partnership's goodwill attributable to its
liquefied petroleum gas (LPG) segment.
CEO Commentary
“For both the fourth quarter and the full year
2019, Teekay LNG recorded strong financial results through
successfully completing our newbuilding program in late-2019 and
securing attractive time-charters during the year," commented Mark
Kremin, President and Chief Executive Officer of Teekay Gas Group
Ltd. "By virtue of having our LNG fleet 97 percent fixed through
fiscal 2020, we are well-insulated from the current weakness in the
spot LNG shipping market and the low price of natural gas in
international markets," commented Mr. Kremin. "Looking ahead to
2020, we remain confident that our results will fall within the
anticipated guidance ranges for the year presented at our Investor
Day event in November 2019, with adjusted net income between $2.60
to $3.10 per unit, which is 45 to 73 percent higher than our actual
2019 adjusted net income per unit of $1.79."
"In the fourth quarter of 2019, we concluded our
6-year, $3.5 billion newbuilding program with the successful
delivery of our last two Yamal ice-breaking LNG newbuildings to our
Yamal LNG Joint Venture, upon which they immediately commenced
fixed-rate time-charter contracts. Notably, these LNG carriers were
delivered approximately three months ahead of schedule, resulting
in an additional three months of charter hire to our Yamal LNG
Joint Venture. In addition, the Bahrain regasification terminal
completed mechanical construction and commissioning. With our
orderbook now complete and our fully-delivered LNG fleet fixed on
period charters, the Partnership is expected to benefit from its
long-term contracted cash flows, and to continue allocating capital
in a manner that focuses on the delevering and strengthening of its
balance sheet while also returning capital to unitholders.”
Summary of Recent Events
Bahrain LNG W.L.L. (BLNG), in which Teekay LNG
owns a 30 percent interest, announced that it had completed the
mechanical construction and commissioning of the Bahrain
Regasification Terminal (Terminal) and that the customer had
commenced payments to BLNG under its 20-year terminal use agreement
in early-January 2020. BLNG also reported that the customer is
looking forward to the commencement of commercial operations of the
Terminal. The Bahrain Spirit floating storage unit (FSU) (which is
100 percent-owned by Teekay LNG) continues to be chartered to BLNG.
Depending on the seasonal requirements for regasification services
by the Terminal, BLNG may trade the Bahrain Spirit FSU in the
short-term LNG shipping market. Regardless of the deployment
strategy utilized by the customer, BLNG will receive its full
contractual payments from the customer of the Terminal, and Teekay
LNG will continue to receive its full, fixed-rate charter-hire for
the Bahrain Spirit FSU from BLNG.
In January 2020, Awilco fulfilled its obligation
to repurchase two of Teekay LNG's LNG carriers, Wilforce and
Wilpride, for a total of over $260 million. Teekay LNG received net
cash proceeds of over $100 million after the repayment of
approximately $157 million of debt secured by these two
vessels.
In November and December 2019, the Partnership
took delivery of the fifth and sixth 50 percent-owned ARC7 LNG
carrier newbuildings, respectively, the Georgiy Ushakov and Yakov
Gakkel, which immediately commenced their 26-year charter contracts
servicing the Yamal LNG project.
On October 16, 2019, the Partnership sold its
last remaining conventional tanker, the Alexander Spirit, for net
proceeds of $11.5 million.
In December 2018, the board of directors of
Teekay LNG's general partner approved a $100 million common unit
repurchase program. Since that time, the Partnership has
repurchased a total of 2.825 million common units, or approximately
3.5 percent of the outstanding common units immediately prior to
commencement of the program, for a total cost of $36.3 million,
representing an average repurchase price of $12.85 per unit.
Operating Results
The following table highlights certain financial
information for Teekay LNG’s three segments: the Liquefied Natural
Gas Segment, the Liquefied Petroleum Gas Segment and the
Conventional Tanker Segment (please refer to the “Teekay LNG’s
Fleet” section of this release below and Appendices D and E for
further details). The Partnership sold its last conventional tanker
in October 2019.
|
|
Three Months Ended |
| |
December 31, 2019 |
December 31, 2018 |
| (in thousands of U.S.
Dollars) |
(unaudited) |
(unaudited) |
|
|
Liquefied Natural Gas Segment |
Liquefied Petroleum Gas Segment |
Conventional Tanker Segment |
Total |
Liquefied Natural Gas Segment |
Liquefied Petroleum Gas Segment |
Conventional Tanker Segment |
Total |
| GAAP FINANCIAL COMPARISON |
|
|
|
|
|
|
|
|
|
Voyage revenues |
138,436 |
|
10,347 |
|
14 |
|
148,797 |
|
135,777 |
|
7,253 |
|
6,775 |
|
149,805 |
|
| Income (loss) from vessel
operations |
85,522 |
|
(1,801 |
) |
(117 |
) |
83,604 |
|
68,924 |
|
(5,367 |
) |
1,607 |
|
65,164 |
|
| Equity income (loss) |
28,468 |
|
1,739 |
|
— |
|
30,207 |
|
4,252 |
|
(3,303 |
) |
— |
|
949 |
|
| NON-GAAP FINANCIAL
COMPARISON |
|
|
|
|
|
|
|
|
| Consolidated adjusted
EBITDA(i) |
112,547 |
|
188 |
|
(117 |
) |
112,618 |
|
99,981 |
|
(2,781 |
) |
2,099 |
|
99,299 |
|
| Adjusted EBITDA from
equity-accounted vessels(i) |
61,454 |
|
10,096 |
|
— |
|
71,550 |
|
43,893 |
|
6,907 |
|
— |
|
50,800 |
|
| Total
adjusted EBITDA(i) |
174,001 |
|
10,284 |
|
(117 |
) |
184,168 |
|
143,874 |
|
4,126 |
|
2,099 |
|
150,099 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Natural Gas Segment
Income from vessel operations and consolidated
adjusted EBITDA(1) for the liquefied natural gas segment for the
three months ended December 31, 2019, compared to the same
quarter of the prior year, were positively impacted primarily by:
the deliveries of two wholly-owned LNG carrier newbuildings (the
Sean Spirit and Yamal Spirit) between December 2018 and January
2019; higher earnings from the Torben Spirit upon redeployment in
December 2018 at a higher charter rate; and a decrease in off-hire
days for certain of the Partnership's vessels. In addition, income
from vessel operations for the liquefied natural gas segment was
positively impacted by the gain recognized in the fourth quarter of
2019 upon derecognition of vessels and reclassification as
sales-type leases for the Partnership's two LNG carriers on charter
to Awilco.
Equity income and adjusted EBITDA from
equity-accounted vessels(1) for the liquefied natural gas segment
for the three months ended December 31, 2019, compared to the
same quarter of the prior year, were positively impacted primarily
by: the deliveries of four ARC7 LNG carrier newbuildings between
June and December 2019 to the Partnership’s 50 percent-owned Yamal
LNG Joint Venture; the delivery of an LNG carrier newbuilding in
January 2019 to the Partnership's 20 percent-owned joint venture
with China LNG Shipping (Holdings) Limited, CETS Investment
Management (HK) Co. Limited and BW LNG Investments Pte. Ltd. (the
Pan Union Joint Venture); and higher earnings from the
Partnership’s 52 percent-owned MALT Joint Venture as a result of
the one-year charter contracts that were secured at higher rates
for the Arwa Spirit and Marib Spirit in June and July 2019,
respectively. In addition, GAAP equity income was positively
impacted by unrealized gains on non-designated derivative
instruments in the Partnership's equity-accounted joint ventures in
the fourth quarter of 2019 compared to unrealized losses on
designated and non-designated derivative instruments in the fourth
quarter of 2018.
Liquefied Petroleum Gas Segment
Loss from vessel operations and Consolidated
Adjusted EBITDA(1) for the liquefied petroleum gas segment for the
three months ended December 31, 2019, compared to the same
quarter of the prior year, were positively impacted by improved
results from the Partnership's seven multi-gas carriers, which
earned higher spot revenues during the fourth quarter of 2019.
Equity income (loss) and adjusted EBITDA from
equity-accounted vessels(1) for the liquefied petroleum gas segment
for the three months ended December 31, 2019, compared to the
same quarter of the prior year, were positively impacted by higher
charter rates earned in the Partnership’s 50 percent-owned Exmar
LPG Joint Venture.
Conventional Tanker Segment
(Loss) income from vessel operations and
consolidated adjusted EBITDA(1) for the conventional tanker segment
for the three months ended December 31, 2019, compared to the
same quarter of the prior year, were negatively impacted by the
sales of the African Spirit, European Spirit, Toledo Spirit and
Alexander Spirit between October 2018 and October 2019.
(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 GAAP.Teekay LNG's Fleet
The following table summarizes the Partnership’s
fleet as of February 1, 2020. The Partnership also owns a 30
percent interest in a regasification terminal in Bahrain which has
recently completed construction.
| |
Number of Vessels |
| |
Owned and In-Chartered Vessels(i) |
| LNG Carrier
Fleet |
47(ii) |
| LPG/Multi-gas Carrier
Fleet |
30(iii) |
|
Total |
77 |
| |
|
- Includes vessels leased by the Partnership from third parties
and accounted for as finance leases.
- The Partnership’s ownership interests in these vessels range
from 20 percent to 100 percent.
- The Partnership’s ownership interests in these vessels range
from 50 percent to 100 percent.
Liquidity
As of December 31, 2019, the Partnership
had total liquidity of $326.4 million (comprised of $160.2 million
in cash and cash equivalents and $166.2 million in undrawn credit
facilities). Giving proforma effect to Awilco's fulfillment of
their repurchase obligations of the WilForce and WilPride from
Teekay LNG in early-January 2020, the Partnership's total liquidity
as at December 31, 2019 would have been $428.2 million.
Conference Call
The Partnership plans to host a conference call
on Thursday, February 27, 2020 at 12:00 p.m. (ET) to discuss the
results for the fourth quarter and year ended December 31, 2019.
All unitholders and interested parties are invited to listen to the
live conference call by choosing from the following options:
- By dialing (800) 367-2403 or (647) 490-5367, if outside North
America, and quoting conference ID code 7620501.
- 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
2019 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 and LPG services primarily under long-term, fee-based charter
contracts through its interests in 47 LNG carriers, 23 mid-size LPG
carriers, and seven multi-gas carriers. The Partnership's ownership
interests in these vessels range from 20 to 100 percent. In
addition, the Partnership owns a 30 percent interest in an LNG
regasification terminal. Teekay LNG Partners is a publicly-traded
master limited partnership 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 symbols “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 SEC. These non-GAAP financial measures which include Adjusted
Net Income Attributable to the Partners and Preferred Unitholders,
Distributable Cash Flow, Total Adjusted Revenues and Adjusted
EBITDA, 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 across companies, 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.
In 2018 and prior periods, the Partnership
reported Cash Flow from Vessel Operations (CFVO), as a non-GAAP
measure. In the first quarter of 2019, the Partnership made certain
changes to its non-GAAP financial measures to more closely align
with internal management reporting, annual reporting with the SEC
under Form 20-F and metrics used by certain investors. CFVO from
Consolidated Vessels and Total CFVO were replaced with Consolidated
Adjusted EBITDA and Total Adjusted EBITDA, respectively, for
current and comparative periods.
Non-GAAP Financial Measures
Total Adjusted Revenues represents the
Partnership's voyage revenues from its consolidated vessels, as
shown in the Partnership's Consolidated Statements of Income, and
its proportionate ownership percentage of the voyage revenues from
its equity-accounted joint ventures, as shown in Appendix E of this
release. Please refer to Appendix C and E of this release for a
reconciliation of this non-GAAP financial measure to voyage
revenues and equity income, the most directly comparable GAAP
measures reflected in the Partnership’s consolidated financial
statements. The Partnership's equity-accounted joint ventures are
generally required to distribute all available cash to their
owners. However, the timing and amount of dividends from each of
the Partnership's equity-accounted joint ventures may not
necessarily coincide with the operating cash flow generated from
each respective equity-accounted joint venture. The timing and
amount of dividends distributed by the Partnership's
equity-accounted joint ventures are affected by the timing and
amounts of debt repayments in the joint ventures, capital
requirements of the joint ventures, as well as any cash reserves
maintained in the joint ventures for operations, capital
expenditures and/or as required under financing agreements.
Adjusted EBITDA represents net 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 and goodwill write-downs, gains or losses on sales
of vessels and equity-accounted investments, unrealized gains or
losses on derivative instruments, foreign exchange gains or losses,
amortization of in-process contracts, adjustments for direct
financing leases to a cash basis, and certain other income or
expenses. 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 represents Adjusted
EBITDA from vessels that are consolidated on the Partnership's
financial statements. Adjusted EBITDA from Equity-Accounted Vessels
represents the Partnership's proportionate share of Adjusted EBITDA
from its equity-accounted vessels. The Partnership does not have
the unilateral ability to determine whether the cash generated by
its equity-accounted vessels is retained within the entity 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 any such distributions
to the Partnership and other owners. Adjusted EBITDA is a non-GAAP
financial measure used by certain investors and management to
measure the operational performance of companies. Please refer to
Appendices C and E of this release for reconciliations of Adjusted
EBITDA to net income and equity income, respectively, which are the
most directly comparable GAAP measures reflected in the
Partnership’s consolidated financial statements.
Adjusted Net Income Attributable to the Partners
and Preferred Unitholders excludes items of income or loss from
GAAP net income 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 (3) of the Consolidated Statements of Income
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 gains or losses on sales of vessels and
write-down of goodwill and vessels, 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, realized loss on interest
rate swap termination, ineffectiveness for derivative instruments
designated as hedges for accounting purposes, distributions
relating to equity financing of newbuilding installments,
distributions relating to preferred units, adjustments for direct
financing and sales-type leases to a cash basis, unrealized foreign
currency exchange gains or losses, adjustments relating to
additional tax indemnification payments, and the Partnership’s
proportionate share of such items in its 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(in
thousands of U.S. Dollars, except unit and per unit data)
|
|
Three Months Ended |
Year Ended |
|
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
2019 |
2019 |
2018 |
2019 |
2018 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
Voyage revenues |
148,797 |
|
149,655 |
|
149,805 |
|
601,256 |
|
510,762 |
|
| |
|
|
|
|
|
| Voyage expenses |
(4,628 |
) |
(4,961 |
) |
(6,529 |
) |
(21,387 |
) |
(28,237 |
) |
| Vessel operating expenses |
(30,706 |
) |
(27,321 |
) |
(30,454 |
) |
(111,585 |
) |
(117,658 |
) |
| Time-charter hire expense |
(5,987 |
) |
(5,336 |
) |
(5,980 |
) |
(19,994 |
) |
(7,670 |
) |
| Depreciation and
amortization |
(33,053 |
) |
(34,248 |
) |
(33,079 |
) |
(136,765 |
) |
(124,378 |
) |
| General and administrative
expenses |
(4,829 |
) |
(5,393 |
) |
(7,809 |
) |
(22,521 |
) |
(28,512 |
) |
| Gain (loss) on sales of vessel
and write-down of goodwill and vessels(1) |
14,349 |
|
(785 |
) |
(790 |
) |
13,564 |
|
(54,653 |
) |
|
Restructuring charges(2) |
(339 |
) |
— |
|
— |
|
(3,315 |
) |
(1,845 |
) |
| Income from vessel
operations |
83,604 |
|
71,611 |
|
65,164 |
|
299,253 |
|
147,809 |
|
| |
|
|
|
|
|
| Equity income(3) |
30,207 |
|
21,296 |
|
949 |
|
58,819 |
|
53,546 |
|
| Interest expense |
(40,712 |
) |
(40,574 |
) |
(39,551 |
) |
(164,521 |
) |
(128,303 |
) |
| Interest income |
922 |
|
1,025 |
|
964 |
|
3,985 |
|
3,760 |
|
| Realized and unrealized gain
(loss) on non-designated derivative instruments(4) |
4,352 |
|
(3,270 |
) |
(11,540 |
) |
(13,361 |
) |
3,278 |
|
| Foreign currency exchange
(loss) gain(5) |
(4,545 |
) |
2,879 |
|
(7,244 |
) |
(9,640 |
) |
1,371 |
|
| Other (expense) income(6) |
(1,767 |
) |
(1,174 |
) |
545 |
|
(2,454 |
) |
(51,373 |
) |
|
Net income before income tax expense |
72,061 |
|
51,793 |
|
9,287 |
|
172,081 |
|
30,088 |
|
| Income tax expense |
(985 |
) |
(1,442 |
) |
(42 |
) |
(7,477 |
) |
(3,213 |
) |
|
Net income |
71,076 |
|
50,351 |
|
9,245 |
|
164,604 |
|
26,875 |
|
| |
|
|
|
|
|
| Non-controlling interest in
net income |
3,706 |
|
2,983 |
|
2,666 |
|
11,814 |
|
(1,494 |
) |
| Preferred unitholders'
interest in net income |
6,426 |
|
6,426 |
|
6,425 |
|
25,702 |
|
25,701 |
|
| General partner's interest in
net income |
1,218 |
|
820 |
|
2 |
|
2,542 |
|
53 |
|
| Limited partners’ interest in
net income |
59,726 |
|
40,122 |
|
152 |
|
124,546 |
|
2,615 |
|
| Limited partners' interest in
net income per common unit: |
|
|
|
|
|
| • Basic |
0.77 |
|
0.51 |
|
0.00 |
|
1.59 |
|
0.03 |
|
| • Diluted |
0.77 |
|
0.51 |
|
0.00 |
|
1.59 |
|
0.03 |
|
| Weighted-average number of
common units outstanding: |
|
|
|
|
|
| • Basic |
77,509,379 |
|
78,012,514 |
|
79,676,541 |
|
78,177,189 |
|
79,672,435 |
|
| • Diluted |
77,615,829 |
|
78,106,770 |
|
79,843,339 |
|
78,268,412 |
|
79,842,328 |
|
| Total
number of common units outstanding at end of period |
77,509,411 |
|
77,509,411 |
|
79,360,719 |
|
77,509,411 |
|
79,360,719 |
|
| |
|
|
|
|
|
|
|
|
|
|
(1) In December 2019, the Partnership recognized
a gain of $14.3 million for the three months and year ended
December 31, 2019 on derecognition of two LNG carriers on charter
to Awilco as they were reclassified as sales-type leases upon
Awilco obtaining credit approval for a financing facility that
would provide the funds necessary for Awilco to fulfill its
purchase obligation to the Partnership. In September 2019, the
Partnership recorded a write-down of $0.8 million for the three
months ended September 30, 2019 and year ended December 31, 2019 on
the Alexander Spirit, compared to a write-down of $13.0 million for
the same vessel during the year ended December 31, 2018 to its then
estimated fair value. In June 2018, the Partnership wrote-down four
of its wholly-owned multi-gas carriers (the Napa Spirit, Pan
Spirit, Camilla Spirit and Cathinka Spirit) and recorded an
impairment charge of $33.0 million for the year ended
December 31, 2018. In addition, for the year ended
December 31, 2018, the Partnership recorded an aggregate
write-down of $7.9 million on the European Spirit and African
Spirit conventional tankers.Included in gain (loss) on sales of
vessels and write-down of goodwill and vessels for the three months
and year ended December 31, 2018 is an impairment change of $0.8
million relating to the Partnership's goodwill attributable to its
LPG segment.
(2) For the three months and year ended December
31, 2019, the Partnership incurred restructuring charges of $0.3
million from subsidiaries of Teekay Corporation attributable to
employees that previously supported the Partnership. In January
2019 and February 2018, the Toledo Spirit and Teide Spirit,
respectively, were sold and as a result of these sales, the
Partnership recorded restructuring charges of $2.9 million and $1.8
million for the years ended December 31, 2019 and 2018,
respectively, relating to seafarer severance costs.
(3) 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 better
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, |
| |
2019 |
2019 |
2018 |
2019 |
2018 |
|
Equity income |
30,207 |
|
21,296 |
|
949 |
|
58,819 |
|
53,546 |
|
| Proportionate share of
unrealized (gain) loss on non-designated interest rate swaps |
(6,271 |
) |
5,150 |
|
4,736 |
|
8,341 |
|
(9,076 |
) |
| Proportionate share of
ineffective portion of hedge-accounted interest rate swaps |
— |
|
— |
|
4,831 |
|
— |
|
(342 |
) |
| Proportionate share of loss on
sale of vessel |
— |
|
— |
|
— |
|
— |
|
257 |
|
| Gain on sale of
equity-accounted investment |
— |
|
— |
|
— |
|
— |
|
(5,563 |
) |
|
Proportionate share of other items |
1,436 |
|
(77 |
) |
181 |
|
2,828 |
|
(4 |
) |
| Equity
income adjusted for items in Appendix A |
25,372 |
|
26,369 |
|
10,697 |
|
69,988 |
|
38,818 |
|
| |
|
|
|
|
|
|
|
|
|
|
(4) 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, |
| |
2019 |
2019 |
2018 |
2019 |
2018 |
| Realized (losses)
gains relating to: |
|
|
|
|
|
|
Interest rate swap agreements |
(2,683 |
) |
(2,621 |
) |
(2,804 |
) |
(10,081 |
) |
(14,654 |
) |
| Interest rate swap agreements
termination |
— |
|
— |
|
— |
|
— |
|
(13,681 |
) |
| Foreign currency forward
contracts |
(147 |
) |
— |
|
— |
|
(147 |
) |
— |
|
| Toledo Spirit time-charter
derivative contract |
— |
|
— |
|
(668 |
) |
— |
|
1,480 |
|
|
|
(2,830 |
) |
(2,621 |
) |
(3,472 |
) |
(10,228 |
) |
(26,855 |
) |
| Unrealized gains
(losses) relating to: |
|
|
|
|
|
| Interest rate swap
agreements |
6,849 |
|
(215 |
) |
(7,637 |
) |
(2,891 |
) |
31,061 |
|
| Interest rate swaption
agreements |
— |
|
— |
|
— |
|
— |
|
2 |
|
| Foreign currency forward
contracts |
333 |
|
(434 |
) |
— |
|
(202 |
) |
— |
|
| Toledo Spirit time-charter
derivative contract |
— |
|
— |
|
(431 |
) |
(40 |
) |
(930 |
) |
|
|
7,182 |
|
(649 |
) |
(8,068 |
) |
(3,133 |
) |
30,133 |
|
|
Total realized and unrealized gains (losses) on non-designated
derivative instruments |
4,352 |
|
(3,270 |
) |
(11,540 |
) |
(13,361 |
) |
3,278 |
|
| |
|
|
|
|
|
|
|
|
|
|
(5) 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.
Foreign currency exchange (loss) gain includes
realized losses relating to the amounts the Partnership paid to
settle 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.
Foreign currency exchange (loss) gain also includes unrealized
gains (losses) relating to the change in fair value of such
derivative instruments and unrealized (losses) gains 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, |
| |
2019 |
2019 |
2018 |
2019 |
2018 |
|
Realized losses on cross-currency swaps |
(1,109 |
) |
(1,431 |
) |
(1,607 |
) |
(5,061 |
) |
(6,533 |
) |
| Realized losses on
cross-currency swaps termination |
— |
|
— |
|
— |
|
— |
|
(42,271 |
) |
| Realized gains on repurchase
of NOK bonds |
— |
|
— |
|
— |
|
— |
|
42,271 |
|
| Unrealized gains (losses) on
cross currency swaps |
12,579 |
|
(23,759 |
) |
(28,494 |
) |
(13,239 |
) |
21,240 |
|
|
Unrealized (losses) gains on revaluation of NOK bonds |
(11,877 |
) |
22,167 |
|
21,066 |
|
5,810 |
|
(23,118 |
) |
| |
|
|
|
|
|
|
|
|
|
|
(6) Other (expense) income for the three months
ended September 30, 2019 and year ended December 31, 2019 included
$1.4 million loss recognized relating to the Torben Spirit
sale-leaseback refinancing completed in September 2019. In
addition, other (expense) income for the year ended December 31,
2018 included a $53.0 million expense for the recognition of an
additional tax indemnification guarantee liability recorded within
the consolidated Teekay Nakilat Corporation (the RasGas II Joint
Venture), which was settled in 2018.
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, |
|
|
2019 |
2019 |
2018 |
| |
(unaudited) |
(unaudited) |
(unaudited) |
| ASSETS |
|
|
|
| Current |
|
|
|
|
Cash and cash equivalents |
160,221 |
|
142,860 |
|
149,014 |
|
| Restricted cash – current |
57,889 |
|
58,109 |
|
38,329 |
|
| Accounts receivable |
13,460 |
|
14,649 |
|
20,795 |
|
| Prepaid expenses |
6,796 |
|
9,383 |
|
8,076 |
|
| Current portion of derivative
assets |
355 |
|
464 |
|
835 |
|
| Current portion of net
investments in direct financing and sale-type leases |
273,986 |
|
13,365 |
|
12,635 |
|
| Current portion of advances to
equity-accounted joint ventures |
73,933 |
|
79,108 |
|
79,108 |
|
| Advances to affiliates |
5,143 |
|
17,471 |
|
8,229 |
|
| Vessel held for sale |
— |
|
11,515 |
|
— |
|
| Other current assets |
238 |
|
238 |
|
2,306 |
|
|
Total current assets |
592,021 |
|
347,162 |
|
319,327 |
|
| |
|
|
|
| Restricted cash –
long-term |
35,181 |
|
33,562 |
|
35,521 |
|
| |
|
|
|
| Vessels and
equipment |
|
|
|
| At cost, less accumulated
depreciation |
1,335,397 |
|
1,604,581 |
|
1,657,338 |
|
| Vessels related to finance
leases, at cost, less accumulated depreciation |
1,691,945 |
|
1,698,545 |
|
1,585,243 |
|
| Operating lease right-of-use
asset |
34,157 |
|
37,431 |
|
— |
|
| Advances on newbuilding
contracts |
— |
|
— |
|
86,942 |
|
|
Total vessels and equipment |
3,061,499 |
|
3,340,557 |
|
3,329,523 |
|
| Investments in and advances to
equity-accounted joint ventures |
1,081,383 |
|
1,017,994 |
|
1,037,025 |
|
| Net investments in direct
financing and sales-type leases |
544,823 |
|
548,072 |
|
562,528 |
|
| Other assets |
13,038 |
|
11,960 |
|
11,432 |
|
| Derivative assets |
1,834 |
|
301 |
|
2,362 |
|
| Intangible assets – net |
43,366 |
|
45,580 |
|
52,222 |
|
| Goodwill |
34,841 |
|
34,841 |
|
34,841 |
|
|
Total assets |
5,407,986 |
|
5,380,029 |
|
5,384,781 |
|
| |
|
|
|
| |
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
| Current |
|
|
|
| Accounts payable |
5,094 |
|
2,426 |
|
3,830 |
|
| Accrued liabilities |
76,752 |
|
78,701 |
|
74,753 |
|
| Unearned revenue |
28,759 |
|
25,732 |
|
30,108 |
|
| Current portion of long-term
debt |
599,065 |
|
390,569 |
|
135,901 |
|
| Current obligations related to
finance leases |
69,982 |
|
69,661 |
|
81,219 |
|
| Current portion of operating
lease liabilities |
13,407 |
|
13,252 |
|
— |
|
| Current portion of derivative
liabilities |
38,458 |
|
37,523 |
|
11,604 |
|
| Advances from affiliates |
7,003 |
|
8,861 |
|
14,731 |
|
|
Total current liabilities |
838,520 |
|
626,725 |
|
352,146 |
|
| Long-term debt |
1,232,331 |
|
1,437,282 |
|
1,833,875 |
|
| Long-term obligations related
to finance leases |
1,340,922 |
|
1,358,485 |
|
1,217,337 |
|
| Long-term operating lease
liabilities |
20,750 |
|
24,179 |
|
— |
|
| Other long-term
liabilities |
47,482 |
|
46,180 |
|
43,788 |
|
| Derivative liabilities |
51,006 |
|
72,466 |
|
55,038 |
|
|
Total liabilities |
3,531,011 |
|
3,565,317 |
|
3,502,184 |
|
| Equity |
|
|
|
| Limited partners – common
units |
1,543,598 |
|
1,497,544 |
|
1,496,107 |
|
| Limited partners – preferred
units |
285,159 |
|
285,159 |
|
285,159 |
|
| General partner |
50,241 |
|
49,303 |
|
49,271 |
|
|
Accumulated other comprehensive (loss) income |
(57,312 |
) |
(71,757 |
) |
2,717 |
|
| Partners' equity |
1,821,686 |
|
1,760,249 |
|
1,833,254 |
|
|
Non-controlling interest |
55,289 |
|
54,463 |
|
49,343 |
|
| Total
equity |
1,876,975 |
|
1,814,712 |
|
1,882,597 |
|
|
Total liabilities and total equity |
5,407,986 |
|
5,380,029 |
|
5,384,781 |
|
| |
|
|
|
|
|
|
Teekay LNG Partners L.P.Consolidated Statements of Cash Flows(in
thousands of U.S. Dollars)
| |
Year Ended |
| |
December 31, |
December 31, |
|
|
2019 |
2018 |
|
|
(unaudited) |
(unaudited) |
| Cash, cash equivalents and
restricted cash provided by (used for) |
|
|
| OPERATING
ACTIVITIES |
|
|
|
Net income |
164,604 |
|
26,875 |
|
| Non-cash and non-operating
items: |
|
|
|
Unrealized loss (gain) on non-designated derivative
instruments |
3,133 |
|
(30,133 |
) |
|
Depreciation and amortization |
136,765 |
|
124,378 |
|
|
(Gain) loss on sales of vessels and write-down of goodwill and
vessels |
(13,564 |
) |
54,653 |
|
|
Unrealized foreign currency exchange loss (gain) including the
effect of the termination of cross currency swaps |
2,805 |
|
(7,525 |
) |
|
Equity income, net of dividends received of $40,303 (2018 –
$14,421) |
(18,516 |
) |
(39,125 |
) |
|
Amortization of deferred financing issuance costs included in
interest expense |
8,135 |
|
8,720 |
|
|
Other non-cash items |
7,634 |
|
(10,495 |
) |
| Change in non-cash operating
assets and liabilities |
5,899 |
|
19,218 |
|
| Expenditures for dry
docking |
(12,358 |
) |
(15,368 |
) |
| Receipts from direct financing
and sales-type leases |
17,073 |
|
— |
|
|
Net operating cash flow |
301,610 |
|
131,198 |
|
| FINANCING
ACTIVITIES |
|
|
| Proceeds from issuance of
long-term debt |
186,566 |
|
1,135,304 |
|
| Scheduled repayments of
long-term debt and settlement of related swaps |
(132,627 |
) |
(506,437 |
) |
| Prepayments of long-term debt
and settlement of related swaps |
(188,787 |
) |
(465,122 |
) |
| Financing issuance costs |
(1,149 |
) |
(11,932 |
) |
| Proceeds from financing
related to sales and leaseback of vessels |
317,806 |
|
370,050 |
|
| Extinguishment of obligations
related to finance leases |
(111,617 |
) |
— |
|
| Scheduled repayments of
obligations related to finance leases |
(71,726 |
) |
(59,722 |
) |
| Repurchase of common
units |
(25,728 |
) |
(3,786 |
) |
| Cash distributions paid |
(82,379 |
) |
(70,345 |
) |
| Dividends paid to
non-controlling interest |
(90 |
) |
(2,925 |
) |
|
Net financing cash flow |
(109,731 |
) |
385,085 |
|
| INVESTING
ACTIVITIES |
|
|
| Expenditures for vessels and
equipment, net of warranty settlement |
(97,895 |
) |
(686,148 |
) |
| Capital contributions and
advances to equity-accounted joint ventures |
(72,391 |
) |
(40,544 |
) |
| Proceeds from sales of
vessels |
11,515 |
|
28,518 |
|
| Acquisition of non-controlling
interest in certain of the Partnership's subsidiaries |
(2,681 |
) |
— |
|
| Proceeds from sale of
equity-accounted joint venture |
— |
|
54,438 |
|
|
Receipts from direct financing leases |
— |
|
10,882 |
|
|
Net investing cash flow |
(161,452 |
) |
(632,854 |
) |
| |
|
|
| Increase (decrease) in
cash, cash equivalents and restricted cash |
30,427 |
|
(116,571 |
) |
| Cash,
cash equivalents and restricted cash, beginning of the year |
222,864 |
|
339,435 |
|
|
Cash, cash equivalents and restricted cash, end of the
year |
253,291 |
|
222,864 |
|
| |
|
|
|
|
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, |
|
|
2019 |
2018 |
2019 |
2018 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
Net income – GAAP basis |
71,076 |
|
9,245 |
|
164,604 |
|
26,875 |
|
| Less: Net (income) loss
attributable to non-controlling interests |
(3,706 |
) |
(2,666 |
) |
(11,814 |
) |
1,494 |
|
|
Net income attributable to the partners and preferred
unitholders |
67,370 |
|
6,579 |
|
152,790 |
|
28,369 |
|
| Add (subtract) specific items
affecting net income: |
|
|
|
|
|
(Gain) loss on sales of vessels and write-down of goodwill and
vessels(1) |
(14,349 |
) |
790 |
|
(13,564 |
) |
54,653 |
|
|
Restructuring charges(2) |
339 |
|
— |
|
3,315 |
|
1,845 |
|
|
Unrealized foreign currency exchange loss (gains)(3) |
3,436 |
|
5,604 |
|
4,021 |
|
(8,717 |
) |
|
Unrealized (gains) losses on non-designated and designated
derivative instruments and other items from equity-accounted
investees(4) |
(4,835 |
) |
9,748 |
|
11,169 |
|
(14,728 |
) |
|
Unrealized (gains) losses on non-designated derivative
instruments(5) |
(7,182 |
) |
8,068 |
|
3,133 |
|
(30,133 |
) |
|
Realized loss on interest rate swap termination |
— |
|
— |
|
— |
|
13,681 |
|
|
Other items(6) |
5,046 |
|
2,447 |
|
8,461 |
|
56,431 |
|
|
Non-controlling interests’ share of items above(7) |
517 |
|
(600 |
) |
(669 |
) |
(13,698 |
) |
|
Total adjustments |
(17,028 |
) |
26,057 |
|
15,866 |
|
59,334 |
|
|
Adjusted net income attributable to the partners and
preferred unitholders |
50,342 |
|
32,636 |
|
168,656 |
|
87,703 |
|
|
|
|
|
|
|
| Preferred unitholders'
interest in adjusted net income |
6,426 |
|
6,425 |
|
25,702 |
|
25,701 |
|
| General partner's interest in
adjusted net income |
878 |
|
524 |
|
2,859 |
|
1,240 |
|
| Limited partners’ interest in
adjusted net income |
43,038 |
|
25,687 |
|
140,095 |
|
60,762 |
|
| Limited partners’ interest in
adjusted net income per common unit, basic |
0.56 |
|
0.32 |
|
1.79 |
|
0.76 |
|
| Weighted-average number of
common units outstanding, basic |
77,509,379 |
|
79,676,541 |
|
78,177,189 |
|
79,672,435 |
|
| |
|
|
|
|
|
|
|
|
- See Note 1 to the Consolidated
Statements of Income included in this release for further
details.
- See Note 2 to the Consolidated
Statements of Income included in this release for further
details.
- Unrealized foreign currency
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 5 to the Consolidated
Statements of Income included in this release for further
details.
- Reflects the unrealized losses
(gains) due to changes in the mark-to-market value of derivative
instruments that are not designated as hedges for accounting
purposes in the Partnership's equity-accounted investees. In
addition, for the three months and year ended December 31, 2018, it
includes the gain on sale by the Partnership of its 50 percent
investment in its joint venture with Exmar NV, which owned the
Excelsior LNG carrier (Excelsior Joint Venture); any
ineffectiveness for derivative instruments designated as hedges for
accounting purposes; and loss on sale of vessel within the
Partnership's equity-accounted joint ventures. See Note 3 to the
Consolidated Statements of Income included in this release for
further details.
- 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. See Note 4 to the Consolidated Statements of Income
included in this release for further details.
- Included in other items for the
three months and year ended December 31,2019 are adjustments to
reflect the impact of the reclassification of the Partnership's two
charter contracts with Awilco from operating leases to sale-type
leases. Included in other items for the year ended December 31,
2018 is the additional tax indemnification guarantee liability of
$53 million, as described in Note 6 to the Consolidated Statements
of Income included in this release.
- 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 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, |
|
|
2019 |
2018 |
2019 |
2018 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
| |
|
|
|
|
|
Net income: |
71,076 |
|
9,245 |
|
164,604 |
|
26,875 |
|
| Add: |
|
|
|
|
|
Depreciation and amortization |
33,053 |
|
33,079 |
|
136,765 |
|
124,378 |
|
|
Partnership’s share of equity-accounted joint ventures' DCF net of
estimated maintenance capital expenditures(1) |
32,514 |
|
19,282 |
|
101,637 |
|
72,546 |
|
|
Direct finance and sale-type lease payments received in excess of
revenue recognized and other adjustments |
10,310 |
|
2,475 |
|
21,636 |
|
11,082 |
|
|
Unrealized foreign currency exchange loss (gain) |
3,436 |
|
5,604 |
|
4,021 |
|
(8,717 |
) |
|
Deferred income tax and other non-cash items |
992 |
|
363 |
|
5,674 |
|
2,561 |
|
|
Distributions relating to equity financing of newbuildings |
886 |
|
1,962 |
|
4,190 |
|
9,012 |
|
|
Realized loss on interest rate swap termination |
— |
|
— |
|
— |
|
13,681 |
|
|
Additional tax indemnification guarantee liability |
— |
|
— |
|
— |
|
53,000 |
|
| Less: |
|
|
|
|
|
Distributions relating to preferred units |
(6,426 |
) |
(6,425 |
) |
(25,702 |
) |
(25,701 |
) |
|
Unrealized (gains) losses on non-designated derivative
instruments |
(7,182 |
) |
8,068 |
|
3,133 |
|
(30,133 |
) |
|
(Gain) loss on sales of vessels and write-down of goodwill and
vessels |
(14,349 |
) |
790 |
|
(13,564 |
) |
54,653 |
|
|
Estimated maintenance capital expenditures |
(17,411 |
) |
(16,794 |
) |
(69,404 |
) |
(64,186 |
) |
|
Equity income |
(30,207 |
) |
(949 |
) |
(58,819 |
) |
(53,546 |
) |
|
Ineffective portion on qualifying cash flow hedging instruments
included in interest expense |
— |
|
— |
|
— |
|
(740 |
) |
|
Portion of additional tax indemnification guarantee liability
previously recognized in DCF |
— |
|
— |
|
— |
|
(3,849 |
) |
| Distributable Cash
Flow before non-controlling interest |
76,692 |
|
56,700 |
|
274,171 |
|
180,916 |
|
|
Non-controlling interests’ share of DCF before estimated
maintenance capital expenditures |
(5,342 |
) |
(5,489 |
) |
(21,352 |
) |
(22,034 |
) |
| Distributable
Cash Flow |
71,350 |
|
51,211 |
|
252,819 |
|
158,882 |
|
| Amount
of cash distributions attributable to the General Partner |
(301 |
) |
(227 |
) |
(1,211 |
) |
(911 |
) |
| Limited partners'
Distributable Cash Flow |
71,049 |
|
50,984 |
|
251,608 |
|
157,971 |
|
|
Weighted-average number of common units outstanding, basic |
77,509,379 |
|
79,676,541 |
|
78,177,189 |
|
79,672,435 |
|
|
Distributable Cash Flow per limited partner common
unit |
0.92 |
|
0.64 |
|
3.22 |
|
1.98 |
|
| |
|
|
|
|
|
|
|
|
(1) The estimated maintenance capital
expenditures relating to the Partnership’s share of
equity-accounted joint ventures were $13.4 million and $10.3
million for the three months ended December 31, 2019 and 2018,
respectively, and $47.0 million and $36.4 million for the years
ended December 31, 2019 and 2018, respectively.
Teekay LNG Partners L.P.Appendix C - Reconciliation of Non-GAAP
Financial MeasuresTotal Adjusted Revenues and Total Adjusted
EBITDA(in thousands of U.S. Dollars)
| |
Three Months Ended |
Year Ended |
|
|
December 31, |
December 31, |
|
|
2019 |
2018 |
2019 |
2018 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
Voyage revenues |
148,797 |
|
149,805 |
|
601,256 |
|
510,762 |
|
|
Partnership's proportionate share of voyage revenue from its
equity-accounted joint ventures (See Appendix E) |
97,617 |
|
75,886 |
|
334,218 |
|
266,388 |
|
|
Total adjusted revenues |
246,414 |
|
225,691 |
|
935,474 |
|
777,150 |
|
| |
|
|
|
|
|
|
|
|
| |
Three Months Ended |
Year Ended |
|
|
December 31, |
December 31, |
|
|
2019 |
2018 |
2019 |
2018 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
Net income |
71,076 |
|
9,245 |
|
164,604 |
|
26,875 |
|
|
Depreciation and amortization |
33,053 |
|
33,079 |
|
136,765 |
|
124,378 |
|
|
Interest expense, net of interest income |
39,790 |
|
38,587 |
|
160,536 |
|
124,543 |
|
|
Income tax expense |
985 |
|
42 |
|
7,477 |
|
3,213 |
|
| EBITDA |
144,904 |
|
80,953 |
|
469,382 |
|
279,009 |
|
|
|
|
|
|
|
| Add (subtract) specific income
statement items affecting EBITDA: |
|
|
|
|
|
Foreign currency exchange loss (gain) |
4,545 |
|
7,244 |
|
9,640 |
|
(1,371 |
) |
|
Other expense (income) – net |
1,767 |
|
(545 |
) |
2,454 |
|
51,373 |
|
|
Equity income |
(30,207 |
) |
(949 |
) |
(58,819 |
) |
(53,546 |
) |
|
Realized and unrealized (gain) loss on derivative instruments |
(4,352 |
) |
11,540 |
|
13,361 |
|
(3,278 |
) |
|
(Gain) loss on sales of vessels and write-down of goodwill and
vessels |
(14,349 |
) |
790 |
|
(13,564 |
) |
54,653 |
|
|
Direct finance and sale-type lease payments received in excess of
revenue recognized and other adjustments |
10,310 |
|
2,475 |
|
21,636 |
|
11,082 |
|
|
Amortization of in-process contracts included in voyage
revenues |
— |
|
(1,541 |
) |
— |
|
(5,756 |
) |
|
Realized loss on Toledo Spirit derivative contract |
— |
|
(668 |
) |
— |
|
1,480 |
|
|
Consolidated adjusted EBITDA |
112,618 |
|
99,299 |
|
444,090 |
|
333,646 |
|
|
Adjusted EBITDA from equity-accounted vessels (See Appendix E) |
71,550 |
|
50,800 |
|
240,577 |
|
181,646 |
|
|
Total adjusted EBITDA |
184,168 |
|
150,099 |
|
684,667 |
|
515,292 |
|
| |
|
|
|
|
|
|
|
|
Teekay LNG Partners L.P.Appendix D - Reconciliation of Non-GAAP
Financial MeasuresConsolidated Adjusted EBITDA by Segment(in
thousands of U.S. Dollars)
|
|
Three Months Ended December 31, 2019 |
Year Ended December 31, 2019 |
|
|
(unaudited) |
(unaudited) |
| |
Liquefied Natural Gas Segment |
Liquefied Petroleum Gas Segment |
Conventional Tanker Segment |
Total |
Total |
|
Voyage revenues |
138,436 |
|
10,347 |
|
14 |
|
148,797 |
|
601,256 |
|
| Voyage (expenses)
recoveries |
(57 |
) |
(4,573 |
) |
2 |
|
(4,628 |
) |
(21,387 |
) |
| Vessel operating expenses |
(25,363 |
) |
(5,102 |
) |
(241 |
) |
(30,706 |
) |
(111,585 |
) |
| Time-charter hire expense |
(5,987 |
) |
— |
|
— |
|
(5,987 |
) |
(19,994 |
) |
| Depreciation and
amortization |
(31,064 |
) |
(1,989 |
) |
— |
|
(33,053 |
) |
(136,765 |
) |
| General and administrative
(expenses) recoveries |
(4,392 |
) |
(484 |
) |
47 |
|
(4,829 |
) |
(22,521 |
) |
| Gain on sales of vessels and
write-down of vessels |
14,349 |
|
— |
|
— |
|
14,349 |
|
13,564 |
|
|
Restructuring (charges) recoveries |
(400 |
) |
— |
|
61 |
|
(339 |
) |
(3,315 |
) |
| Income (loss) from vessel
operations |
85,522 |
|
(1,801 |
) |
(117 |
) |
83,604 |
|
299,253 |
|
| Depreciation and
amortization |
31,064 |
|
1,989 |
|
— |
|
33,053 |
|
136,765 |
|
| Gain on sales of vessels and
write-down of vessels |
(14,349 |
) |
— |
|
— |
|
(14,349 |
) |
(13,564 |
) |
| Direct finance and sales-type
lease payments received in excess of revenue recognized and other
adjustments |
10,310 |
|
— |
|
— |
|
10,310 |
|
21,636 |
|
|
Consolidated adjusted EBITDA |
112,547 |
|
188 |
|
(117 |
) |
112,618 |
|
444,090 |
|
| |
|
|
|
|
|
|
|
Three Months Ended December 31, 2018 |
Year Ended December 31, 2018 |
|
|
(unaudited) |
(unaudited) |
| |
Liquefied Natural Gas Segment |
Liquefied Petroleum Gas Segment |
Conventional Tanker Segment |
Total |
Total |
| Voyage revenues |
135,777 |
|
7,253 |
|
6,775 |
|
149,805 |
|
510,762 |
|
| Voyage expenses |
(1,099 |
) |
(4,574 |
) |
(856 |
) |
(6,529 |
) |
(28,237 |
) |
| Vessel operating expenses |
(22,859 |
) |
(4,863 |
) |
(2,732 |
) |
(30,454 |
) |
(117,658 |
) |
| Time-charter hire expense |
(5,980 |
) |
— |
|
— |
|
(5,980 |
) |
(7,670 |
) |
| Depreciation and
amortization |
(30,121 |
) |
(1,796 |
) |
(1,162 |
) |
(33,079 |
) |
(124,378 |
) |
| General and administrative
expenses |
(6,794 |
) |
(597 |
) |
(418 |
) |
(7,809 |
) |
(28,512 |
) |
| Write-down of goodwill and
vessels |
— |
|
(790 |
) |
— |
|
(790 |
) |
(54,653 |
) |
|
Restructuring charges |
— |
|
— |
|
— |
|
— |
|
(1,845 |
) |
| Income (loss) from vessel
operations |
68,924 |
|
(5,367 |
) |
1,607 |
|
65,164 |
|
147,809 |
|
| Depreciation and
amortization |
30,121 |
|
1,796 |
|
1,162 |
|
33,079 |
|
124,378 |
|
| Write-down of goodwill and
vessels |
— |
|
790 |
|
— |
|
790 |
|
54,653 |
|
| Amortization of in-process
contracts included in voyage revenues |
(1,539 |
) |
— |
|
(2 |
) |
(1,541 |
) |
(5,756 |
) |
| Direct finance lease payments
received in excess of revenue recognized and other adjustments |
2,475 |
|
— |
|
— |
|
2,475 |
|
11,082 |
|
| Realized (loss) gain on Toledo
Spirit derivative contract |
— |
|
— |
|
(668 |
) |
(668 |
) |
1,480 |
|
|
Consolidated adjusted EBITDA |
99,981 |
|
(2,781 |
) |
2,099 |
|
99,299 |
|
333,646 |
|
| |
|
|
|
|
|
|
|
|
|
|
Teekay LNG Partners L.P.Appendix E - Reconciliation of Non-GAAP
Financial MeasuresAdjusted EBITDA from Equity-Accounted Vessels(in
thousands of U.S. Dollars)
| |
Three Months Ended |
| |
December 31, 2019 |
December 31, 2018 |
|
|
(unaudited) |
(unaudited) |
|
|
At |
Partnership's |
At |
Partnership's |
|
|
100% |
Portion(1) |
100% |
Portion(1) |
|
Voyage revenues |
218,416 |
|
97,617 |
|
176,177 |
|
75,886 |
|
| Voyage expenses |
(1,567 |
) |
(788 |
) |
(3,885 |
) |
(1,962 |
) |
| Vessel operating expenses,
time-charter hire expense and general and administrative
expenses |
(71,018 |
) |
(31,535 |
) |
(61,634 |
) |
(27,291 |
) |
| Depreciation and
amortization |
(28,528 |
) |
(13,852 |
) |
(30,471 |
) |
(14,643 |
) |
|
Income from vessel operations of equity-accounted vessels |
117,303 |
|
51,442 |
|
80,187 |
|
31,990 |
|
| Net interest expense |
(61,932 |
) |
(25,641 |
) |
(50,069 |
) |
(20,589 |
) |
| Income tax (expense)
recovery |
(200 |
) |
(107 |
) |
1,048 |
|
377 |
|
| Other items including realized
and unrealized gains (losses) on derivative instruments |
12,743 |
|
4,513 |
|
(27,773 |
) |
(10,829 |
) |
|
Net income / equity income of equity-accounted vessels |
67,914 |
|
30,207 |
|
3,393 |
|
949 |
|
|
Net income / equity income of equity-accounted LNG vessels |
64,274 |
|
28,468 |
|
9,837 |
|
4,252 |
|
| Net
income (loss) / equity income (loss) of equity-accounted LPG
vessels |
3,640 |
|
1,739 |
|
(6,444 |
) |
(3,303 |
) |
| |
|
|
|
|
| Net income / equity income of
equity-accounted vessels |
67,914 |
|
30,207 |
|
3,393 |
|
949 |
|
|
Depreciation and amortization |
28,528 |
|
13,852 |
|
30,471 |
|
14,643 |
|
|
Net interest expense |
61,932 |
|
25,641 |
|
50,069 |
|
20,589 |
|
|
Income tax expense (recovery) |
200 |
|
107 |
|
(1,048 |
) |
(377 |
) |
| EBITDA from equity-accounted
vessels |
158,574 |
|
69,807 |
|
82,885 |
|
35,804 |
|
| |
|
|
|
|
| Add (subtract) specific income
statement items affecting EBITDA: |
|
|
|
|
|
Other items including realized and unrealized (gains) losses on
derivative instruments |
(12,743 |
) |
(4,513 |
) |
27,773 |
|
10,829 |
|
|
Direct finance and sales-type lease payments received in excess of
revenue recognized |
19,286 |
|
7,212 |
|
14,525 |
|
5,132 |
|
|
Amortization of in-process contracts |
(1,758 |
) |
(956 |
) |
(1,804 |
) |
(965 |
) |
|
Adjusted EBITDA from equity-accounted vessels |
163,359 |
|
71,550 |
|
123,379 |
|
50,800 |
|
| Adjusted EBITDA from
equity-accounted LNG vessels |
143,164 |
|
61,454 |
|
109,564 |
|
43,893 |
|
|
Adjusted EBITDA from equity-accounted LPG vessels |
20,195 |
|
10,096 |
|
13,815 |
|
6,907 |
|
| |
|
|
|
|
|
|
|
|
(1) The Partnership's equity-accounted vessels
for the three months ended December 31, 2019 and 2018 include:
the Partnership’s 40 percent ownership interest in Teekay Nakilat
(III) Corporation, which owns four LNG carriers; the Partnership’s
50 percent ownership interest in the Partnership’s joint venture
with Exmar NV (the Excalibur Joint Venture), which owns one LNG
carrier; 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 MALT Joint Venture, which owns
six LNG carriers; the Partnership’s 50 percent ownership interest
in Exmar LPG BVBA, which owns and in-charters 23 LPG carriers as at
December 31, 2019, compared to 22 owned and in-chartered LPG
carriers as at December 31, 2018; the Partnership’s ownership
interest ranging from 20 to 30 percent in four LNG carriers as at
December 31, 2019 for Shell, compared to three LNG carriers
and one LNG carrier newbuilding as at December 31, 2018; the
Partnership’s 50 percent ownership interest in six ARC7 LNG
carriers in the Yamal LNG Joint Venture as at December 31,
2019, compared to two ARC7 LNG carriers and four ARC7 LNG carrier
newbuildings as at December 31, 2018; and the Partnership's 30
percent ownership interest in the Bahrain LNG Joint Venture, which
owns an LNG receiving and regasification terminal in Bahrain.
| |
Year Ended |
| |
December 31, 2019 |
December 31, 2018 |
| |
(unaudited) |
(unaudited) |
| |
At |
Partnership's |
At |
Partnership's |
|
|
100% |
Portion(1) |
100% |
Portion(1) |
|
Voyage revenues |
767,026 |
|
334,218 |
|
612,857 |
|
266,388 |
|
| Voyage expenses |
(10,807 |
) |
(5,359 |
) |
(12,058 |
) |
(6,071 |
) |
| Vessel operating expenses,
time-charter hire expense and general and administrative
expenses |
(247,070 |
) |
(109,063 |
) |
(208,686 |
) |
(93,277 |
) |
| Depreciation and
amortization |
(114,610 |
) |
(55,340 |
) |
(107,116 |
) |
(52,883 |
) |
| Loss on sale of vessel |
— |
|
— |
|
(514 |
) |
(257 |
) |
|
Income from vessel operations of equity-accounted vessels |
394,539 |
|
164,456 |
|
284,483 |
|
113,900 |
|
| Net interest expense |
(224,635 |
) |
(91,394 |
) |
(164,635 |
) |
(69,532 |
) |
| Income tax (expense)
recovery |
(3,683 |
) |
(1,420 |
) |
802 |
|
262 |
|
| Other items including realized
and unrealized (losses) gains on derivative instruments |
(41,197 |
) |
(12,823 |
) |
16,603 |
|
3,353 |
|
| Gain on sale of
equity-accounted investment(2) |
— |
|
— |
|
— |
|
5,563 |
|
|
Net income / equity income of equity-accounted vessels |
125,024 |
|
58,819 |
|
137,253 |
|
53,546 |
|
|
Net income / equity income of equity-accounted LNG vessels |
125,944 |
|
59,600 |
|
149,981 |
|
60,228 |
|
| Net
loss / equity loss of equity-accounted LPG vessels |
(920 |
) |
(781 |
) |
(12,728 |
) |
(6,682 |
) |
| |
|
|
|
|
| Net income / equity income of
equity-accounted vessels |
125,024 |
|
58,819 |
|
137,253 |
|
53,546 |
|
|
Depreciation and amortization |
114,610 |
|
55,340 |
|
107,116 |
|
52,883 |
|
|
Net interest expense |
224,635 |
|
91,394 |
|
164,635 |
|
69,532 |
|
|
Income tax expense (recovery) |
3,683 |
|
1,420 |
|
(802 |
) |
(262 |
) |
| EBITDA from equity-accounted
vessels |
467,952 |
|
206,973 |
|
408,202 |
|
175,699 |
|
| |
|
|
|
|
| Add (subtract) specific income
statement items affecting EBITDA: |
|
|
|
|
|
Other items including realized and unrealized losses (gains) on
derivative instruments |
41,197 |
|
12,823 |
|
(16,603 |
) |
(3,353 |
) |
|
Loss on sale of vessel |
— |
|
— |
|
514 |
|
257 |
|
|
Direct finance and sales-type lease payments received in excess of
revenue recognized |
67,807 |
|
24,574 |
|
51,329 |
|
18,453 |
|
|
Amortization of in-process contracts |
(6,974 |
) |
(3,793 |
) |
(7,242 |
) |
(3,847 |
) |
|
Gain on sale of equity-accounted investment(2) |
— |
|
— |
|
— |
|
(5,563 |
) |
|
Adjusted EBITDA from equity-accounted vessels |
569,982 |
|
240,577 |
|
436,200 |
|
181,646 |
|
| Adjusted EBITDA from
equity-accounted LNG vessels |
499,176 |
|
205,181 |
|
382,514 |
|
154,803 |
|
|
Adjusted EBITDA from equity-accounted LPG vessels |
70,806 |
|
35,396 |
|
53,686 |
|
26,843 |
|
| |
|
|
|
|
|
|
|
|
- The Partnership's equity-accounted
vessels for the year ended December 31, 2019 and 2018 include:
the Partnership’s 40 percent ownership interest in Teekay Nakilat
(III) Corporation, which owns four LNG carriers; the Partnership’s
50 percent ownership interest in the Excalibur Joint Venture, which
owns one LNG carrier; 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 MALT Joint
Venture, which owns six LNG carriers; the Partnership’s 50 percent
ownership interest in Exmar LPG BVBA, which owns and in-charters 23
LPG carriers as at December 31, 2019, compared to 22 owned and
in-chartered LPG carriers as at December 31, 2018; the
Partnership’s ownership interest ranging from 20 to 30 percent in
four LNG carriers as at December 31, 2019 for Shell, compared
to three LNG carriers and one LNG carrier newbuilding as at
December 31, 2018; the Partnership’s 50 percent ownership
interest in six ARC7 LNG carriers in the Yamal LNG Joint Venture as
at December 31, 2019, compared to two ARC7 LNG carriers and
four ARC7 LNG carrier newbuildings as at December 31, 2018;
and the Partnership's 30 percent ownership interest in the Bahrain
LNG Joint Venture, which owns an LNG receiving and regasification
terminal in Bahrain.
- On January 31, 2018, the
Partnership sold its 50 percent ownership interest in the Excelsior
Joint Venture, which resulted in gain of $5.6 million for the year
ended December 31, 2018.
Teekay LNG Partners L.P.Appendix F - Summarized Financial
Information of Equity-Accounted Joint Ventures(in thousands of U.S.
Dollars)
| |
As at December 31, 2019 |
As at December 31, 2018 |
| |
(unaudited) |
(unaudited) |
| |
At |
Partnership's |
At |
Partnership's |
|
100% |
Portion(1) |
100% |
Portion(1) |
|
Cash and restricted cash, current and non-current |
509,065 |
|
210,736 |
|
388,820 |
|
164,247 |
|
| Other current assets |
62,566 |
|
27,719 |
|
91,264 |
|
33,354 |
|
| Property, plant and equipment,
including owned vessels, vessels related to finance leases and
operating lease right-of-use assets, advances on newbuilding
contracts and LNG terminal |
3,112,349 |
|
1,375,570 |
|
3,649,255 |
|
1,635,850 |
|
| Net investments in sales-type
and direct financing leases, current and non-current |
4,589,139 |
|
1,856,709 |
|
3,089,375 |
|
1,163,980 |
|
| Other
non-current assets |
50,967 |
|
41,015 |
|
61,285 |
|
41,667 |
|
| Total
assets |
8,324,086 |
|
3,511,749 |
|
7,279,999 |
|
3,039,098 |
|
| |
|
|
|
|
| Current portion of long-term
debt and obligations related to finance leases and operating
leases |
315,247 |
|
136,573 |
|
284,150 |
|
125,984 |
|
| Current portion of derivative
liabilities |
34,618 |
|
13,658 |
|
12,695 |
|
4,420 |
|
| Other current liabilities |
153,816 |
|
66,224 |
|
127,266 |
|
53,874 |
|
| Long-term debt and obligations
related to finance leases and operating leases |
5,026,123 |
|
2,041,595 |
|
4,202,745 |
|
1,680,986 |
|
| Shareholders' loans, current
and non-current |
346,969 |
|
126,546 |
|
367,475 |
|
131,386 |
|
| Derivative liabilities |
162,640 |
|
66,060 |
|
61,814 |
|
23,149 |
|
| Other long-term
liabilities |
64,196 |
|
32,323 |
|
67,793 |
|
34,552 |
|
| Equity |
2,220,477 |
|
1,028,770 |
|
2,156,061 |
|
984,747 |
|
|
Total liabilities and equity |
8,324,086 |
|
3,511,749 |
|
7,279,999 |
|
3,039,098 |
|
| |
|
|
|
|
| Investments in
equity-accounted joint ventures |
|
1,028,770 |
|
|
984,747 |
|
| Advances to equity-accounted
joint ventures |
|
126,546 |
|
|
131,386 |
|
|
Investments in and advances to equity-accounted joint ventures,
current and non-current portions |
|
1,155,316 |
|
|
1,116,133 |
|
|
|
|
|
|
|
|
|
(1) The Partnership's equity-accounted vessels
as at December 31, 2019 and December 31, 2018 include: the
Partnership’s 40 percent ownership interest in Teekay Nakilat (III)
Corporation, which owns four LNG carriers; the Partnership’s 50
percent ownership interests in the Excalibur Joint Venture, which
owns one LNG carrier; 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 MALT Joint
Venture, which owns six LNG carriers; the Partnership’s 50 percent
ownership interest in Exmar LPG BVBA, which owns and in-charters 23
LPG carriers as at December 31, 2019, compared to 22 owned and
in-chartered LPG carriers as at December 31, 2018; the
Partnership’s ownership interest ranging from 20 percent to 30
percent in four LNG carriers as at December 31, 2019 for
Shell, compared to three LNG carriers and one LNG carrier
newbuilding as at December 31, 2018; the Partnership’s 50 percent
ownership interest in six ARC7 LNG carriers in the Yamal LNG Joint
Venture as at December 31, 2019, compared to two ARC7 LNG
carriers and four ARC7 LNG carrier newbuildings as at December 31,
2018; and the Partnership's 30 percent ownership interest in the
Bahrain LNG Joint Venture, which owns an LNG receiving and
regasification terminal 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,
among other things, regarding: the Partnership’s ability to be
insulated from the near-term weakness in the spot LNG shipping
market or international LNG markets; the Partnership’s expected
2020 financial results and the ability to achieve
previously-disclosed guidance figures; expectations on future
allocation of capital towards balance sheet deleveraging and
returning capital to unitholders; and the ability to pay increased
distributions on its common units in 2020 and beyond. 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 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; higher than expected costs and
expenses; general market conditions and trends, including spot,
multi-month and multi-year charter rates; inability of customers of
the Partnership or any of its joint ventures to make future
payments under contracts; potential further delays to the
formal commencement of commercial operations of the Bahrain
Regasification Terminal; the inability of the Partnership to renew
or replace long-term contracts on existing vessels; potential lack
of cash flow to reduce balance sheet leverage or of excess capital
available to allocate towards returning capital to unitholders; 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, 2018. 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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