UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Date
of Report: May 13, 2011
Commission file number 1- 32479
TEEKAY LNG PARTNERS L.P.
(Exact name of Registrant as specified in its charter)
4th Floor
Belvedere Building
69 Pitts Bay Road
Hamilton, HM08 Bermuda
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover
Form 20-F or Form 40-F.
Form 20-F
þ
Form 40- F
o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1).
Yes
o
No
þ
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7).
Yes
o
No
þ
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TEEKAY LNG PARTNERS L.P.
4
th
Floor, Belvedere Building, 69 Pitts Bay Road
Hamilton, HM 08, Bermuda
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EARNINGS RELEASE
TEEKAY LNG PARTNERS
REPORTS FIRST QUARTER RESULTS
Highlights
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Generated distributable cash flow of $39.1 million in the first quarter of 2011, an
increase of 15 percent from the first quarter of 2010.
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Declared first quarter 2011 cash distribution of $0.63 per unit.
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Agreed to acquire Teekay Corporations 33 percent interest in four LNG carrier
newbuildings scheduled to deliver in 2011 and 2012.
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Partnerships total liquidity increased to approximately $600 million as at May 1, 2011.
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Hamilton, Bermuda, May 12, 2011 Teekay GP LLC, the general partner of Teekay LNG Partners L.P.
(
Teekay LNG
or
the Partnership
) (NYSE: TGP) today reported its results for the quarter ended March
31, 2011. During the first quarter of 2011, the Partnership generated distributable cash
flow
(1)
of $39.1 million, compared to $33.9 million in the same quarter of the previous
year. The increase primarily reflects the incremental distributable cash flow resulting from a
full quarter of revenue from the Partnerships acquisition of three vessels in March 2010, the
Partnerships November 2010 acquisition of a 50 percent interest in two LNG carriers, and reduced
off-hire days relating to scheduled drydockings.
On April 21, 2011, the Partnership declared a cash distribution of $0.63 per unit for the quarter
ended March 31, 2011. The cash distribution is payable on May 13, 2011 to all unitholders of
record on May 6, 2011.
The Partnerships first quarter results reflect the stable cash flows generated by our fixed-rate
contract portfolio of vessels and include a full quarter contribution from the Exmar vessel
interests we acquired in November 2010, commented Peter Evensen, Chief Executive Officer of Teekay
GP LLC. We look forward to further distributable cash flow growth as the Partnership takes
delivery of new gas carriers supported by long-term fixed-rate contracts in the near future,
including the 33 percent interest in four Angola LNG carrier newbuildings which will begin
delivering in the second half of 2011.
Mr. Evensen continued, After a period of slower growth in the LNG sector, activity is picking up
with an increasing number of projects for both traditional LNG transportation and floating storage
and regasification units, or FSRUs, coming up for tender. In addition, with its substantial level
of available liquidity, the Partnership will continue to evaluate opportunities to acquire high
quality third party assets servicing long-term contracts, which should further drive distributable
cash flow growth.
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(1)
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Distributable cash flow is a non-GAAP financial measure used by certain investors to
measure the financial performance of the Partnership and other master limited partnerships.
Please see
Appendix B
for a reconciliation of this non-GAAP measure to the most directly
comparable GAAP financial measure.
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- more -
1
Teekay LNGs Fleet
The following table summarizes the Partnerships fleet as of May 1, 2011:
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Number of Vessels
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Delivered
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Committed
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Vessels
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Vessels
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Total
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LNG Carrier Fleet
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17
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(1)
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4
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(2)
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21
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LPG/Multigas Carrier Fleet
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2
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3
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(3)
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5
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Conventional Tanker Fleet
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11
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11
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Total
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30
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7
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37
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(1)
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Includes a 50 percent interest in a FSRU unit.
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(2)
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Represents a 33 percent interest in four Angola LNG carriers under
construction, as described below.
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(3)
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Represents the three Skaugen LPG/Multigas carriers currently under
construction, as described below.
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Future Projects
Below is a summary of LNG and LPG/Multigas newbuildings that the Partnership has agreed to
acquire:
Skaugen LPG/Multigas
The Partnership has agreed to acquire one LPG carrier from a subsidiary of IM Skaugen ASA
(
Skaugen
) and two Multigas carriers from Teekay Corporation (
Teekay
). The three LPG/Multigas
carriers are currently under construction and are expected to be delivered in 2011. Upon
delivery, the vessels will commence service under 15-year fixed-rate charters to Skaugen.
Angola LNG
A consortium in which Teekay has a one-third interest, has agreed to charter four newbuilding LNG
carriers for a period of 20 years to the Angola LNG Project, which is being developed by
subsidiaries of Chevron, Sonangol, BP, Total and ENI. The vessels will be chartered at fixed
rates, with inflation adjustments, following their deliveries. The vessels are currently under
construction and are expected to deliver during 2011 and 2012. In March 2011, the Partnership
agreed to purchase Teekay Corporations 33 percent interest in these vessels and related charter
contracts concurrent with their respective deliveries.
- more -
2
Financial Summary
The Partnership reported adjusted net income attributable to the partners
(1)
(as
detailed in
Appendix A
to this release) of $25.9 million for the quarter ended March 31, 2011,
compared to $21.4 million for the same period of the prior year. Adjusted net income attributable
to the partners excludes a number of specific items which had the net effect of decreasing net
income by $0.9 million and increasing net income by $7.1 million for the three months ended March
31, 2011 and 2010, respectively, as detailed in
Appendix A.
Including these items, the
Partnership reported net income attributable to the partners, on a GAAP basis, of $25.0 million
and $28.5 million for the three months ended March 31, 2011 and 2010, respectively.
For accounting purposes, the Partnership is required to recognize the changes in the fair value of
its derivative instruments on the consolidated statements of income. This method of accounting
does not affect the Partnerships cash flows or the calculation of distributable cash flow, but
results in the recognition of unrealized gains or losses on the consolidated statements of income
as detailed in footnote 2 of the Summary Consolidated Statements of Income.
The Partnerships financial statements for the prior periods include historical results of vessels
acquired by the Partnership from Teekay, referred to herein as the
Dropdown Predecessor
, for the
period when these vessels were owned and operated by Teekay.
Operating Results
The following table highlights certain financial information for Teekay LNGs segments: the
Liquefied Gas Segment and the Conventional Tanker Segment (please refer to the Teekay LNGs
Fleet section of this release above and
Appendix C
for further details).
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Three Months Ended
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Three Months Ended
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March 31, 2011
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March 31, 2010
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(unaudited)
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(unaudited)
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Liquefied
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Conventional
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Liquefied
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Conventional
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Gas
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Tanker
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Gas
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Tanker
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(in thousands of U.S. dollars)
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Segment
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Segment
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Total
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Segment
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Segment
(i)
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Total
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Net voyage revenues
(ii)
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65,784
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27,065
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92,849
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65,813
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26,538
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92,351
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Vessel operating expenses
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11,077
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9,730
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20,807
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11,416
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9,612
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21,028
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Depreciation and amortization
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15,124
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7,225
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22,349
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15,238
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6,918
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22,156
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Cash flow from vessel operations
(iii)
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52,742
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14,333
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67,075
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52,914
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9,902
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62,816
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(i)
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Cash flow from vessel operations for the Conventional Tanker segment only reflects the
cash flows generated by the
Alexander Spirit
,
Hamilton Spirit
and
Bermuda Spirit
subsequent
to their acquisition by the Partnership on March 17, 2010. Results for the
Alexander Spirit
,
Hamilton Spirit
and
Bermuda Spirit
for the periods prior to their acquisition by the
Partnership when they were owned and operated by Teekay are referred to as the Dropdown
Predecessor.
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(ii)
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Net voyage revenues represents voyage revenues less voyage expenses, which comprise all
expenses relating to certain voyages, including bunker fuel expenses, port fees, canal tolls
and brokerage commissions. Net voyage revenues is a non-GAAP financial measure used by
certain investors to measure the financial performance of shipping companies. Please see the
Partnerships web site at
www.teekaylng.com
for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable GAAP financial measure.
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(iii)
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Cash flow from vessel operations represents income from vessel operations before (a)
depreciation and amortization expense, (b) Dropdown Predecessors income from vessel
operations and (c) adjusting for direct financing leases to a cash basis. However, the
Partnerships cash flow from vessel operations does not include the Partnerships equity
accounted investees cash flow from vessel operations. Cash flow from vessel operations is
included because certain investors use this data to measure a companys financial
performance. Cash flow from vessel operations is not required by accounting principles
generally accepted in the United States and should not be considered as an alternative to net
income or any other indicator of the Partnerships performance required by accounting
principles generally accepted in the United States.
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- more -
3
Liquefied Gas Segment
Cash flow from vessel operations from the Partnerships Liquefied Gas segment decreased slightly
to $52.7 million in the first quarter of 2011 from $52.9 million in the same quarter of the prior
year. This decrease is primarily due to the sale of the
Dania Spirit
LPG carrier in November 2010,
partially offset by fewer off-hire days in the first quarter of 2011 relating to scheduled
drydockings. Cash flow from vessel operations, as reported in the above table, does not include
cash flow of $12.9 million for the three months ended March 31, 2011 from the Partnerships two
equity-accounted joint ventures, RasGas 3 and Exmar.
Conventional Tanker Segment
Cash flow from vessel operations from the Partnerships Conventional Tanker segment increased to
$14.3 million in the first quarter of 2011 from $9.9 million in the same quarter of the prior
year. The increase is primarily due to a full quarter of operations from the two Suezmax tankers
and one Handymax tanker that were acquired from Teekay late in the first quarter of 2010.
Liquidity
As of March 31, 2011, the Partnership had total liquidity of $437.6 million, comprised of $72.6
million in cash and cash equivalents and $365.0 million in undrawn credit facilities. Total
liquidity increased from $437.6 million to approximately $600 million as at May 1, 2011, primarily
as a result of the Partnerships recently completed equity offering, which provided net proceeds
to the Partnership of approximately $161.6 million, including proceeds received upon the partial
exercise of the underwriters over-allotment option.
Availability of 2010 Annual Report
Teekay LNG Partners L.P. filed its 2010 Annual Report on Form 20-F with the U.S. Securities and
Exchange Commission (
SEC
) on April 4, 2011, amended on April 29, 2011 to include XBRL. Copies are
available on Teekay LNGs web site, under Investor Briefcase, at
www.teekaylng.com
.
Unitholders may request a printed copy of this annual report, including the complete audited
financial statements free of charge by contacting Teekay LNGs Investor Relations.
Conference Call
The Partnership plans to host a conference call on May 13, 2011 at 11:00 a.m. (ET) to discuss the
results for the first quarter of 2011. All unitholders and interested parties are invited to
listen to the live conference call by choosing from the following options:
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By dialing (866) 399-6716 or (416) 640-5933, if outside North America, and quoting
conference ID code 7351063.
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By accessing the webcast, which will be available on Teekay LNGs Web site at
www.teekaylng.com
(the archive will remain on the web site for a period of 30 days).
|
A supporting First Quarter 2011 Earnings Presentation will also be available at
www.teekaylng.com
in advance of the conference call start time.
The conference call will be recorded and available until Friday, May 20, 2011. This recording can
be accessed following the live call by dialing (888) 203-1112 or (647) 436-0148, if outside North
America, and entering access code 7351063.
- more -
4
About Teekay LNG Partners L.P.
Teekay LNG Partners L.P. 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 L.P. provides LNG, LPG and crude oil marine transportation services
under long-term, fixed-rate charter contracts with major energy and utility companies through its
fleet of 21 LNG carriers (including one LNG regasification unit), five LPG carriers and 11
conventional tankers. Four of the 21 LNG carriers are newbuildings scheduled for delivery in 2011
and 2012. Three of the five LPG carriers are newbuildings scheduled for delivery in 2011.
Teekay LNG Partners common units trade on the New York Stock Exchange under the symbol TGP.
For Investor Relations enquiries contact:
Kent Alekson
Tel: +1 (604) 609-6442
Web site:
www.teekaylng.com
- more -
5
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(in thousands of U.S. dollars, except unit data)
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Three Months Ended
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March 31,
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December 31,
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March 31,
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2011
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2010
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2010
(1)
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(unaudited)
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(unaudited)
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(unaudited)
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VOYAGE REVENUES
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93,219
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97,516
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92,492
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OPERATING EXPENSES
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Voyage expenses
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370
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685
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141
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Vessel operating expenses
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20,807
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20,545
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21,028
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Depreciation and amortization
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22,349
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22,658
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22,156
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General and administrative
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6,326
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7,566
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5,392
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Gain on sale of vessel
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(4,340
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)
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Restructuring charge
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49
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49,852
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47,114
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48,766
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Income from vessel operations
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43,367
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50,402
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43,726
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OTHER ITEMS
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Interest expense
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(11,754
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)
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(12,217
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)
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(12,774
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)
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Interest income
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1,578
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1,805
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1,873
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Realized and unrealized gain (loss) on derivative instruments
(2)
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10,769
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27,064
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(26,812
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)
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Foreign exchange (loss) gain
(3)
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(21,033
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)
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7,528
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23,221
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Equity income
(4)
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8,057
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10,526
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1,317
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Other (expense) income net
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(1,247
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)
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(1,435
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)
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470
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Net income
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29,737
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83,673
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31,021
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Net income attributable to:
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Non-controlling interest
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4,757
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7,301
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|
301
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Dropdown Predecessor
(1)
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2,258
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Partners
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24,980
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76,372
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|
28,462
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Limited partners units outstanding:
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Weighted-average number of common units outstanding
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55,106,100
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54,705,598
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44,972,563
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|
- Basic and diluted
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Weighted-average number of subordinated units outstanding
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|
|
|
|
|
|
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|
7,367,286
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- Basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Weighted-average number of total units outstanding
|
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|
55,106,100
|
|
|
|
54,705,598
|
|
|
|
52,339,849
|
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- Basic and diluted
|
|
|
|
|
|
|
|
|
|
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Total number of units outstanding at end of period
|
|
|
55,106,100
|
|
|
|
55,106,100
|
|
|
|
52,339,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Results for the
Alexander Spirit
,
Hamilton Spirit
and
Bermuda Spirit
for the periods
prior to their acquisition in March 2010 by the Partnership when they were owned and operated
by Teekay Corporation are referred to as the Dropdown Predecessor.
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- more -
6
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(2)
|
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The realized losses relate to the amounts the Partnership actually paid to settle such
derivative instruments and the unrealized gains (losses) relate to the change in fair value of
such derivative instruments as detailed in the table below.
|
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|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2011
|
|
|
December 31, 2010
|
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|
March 31, 2010
|
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Realized losses relating to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps
|
|
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(10,237
|
)
|
|
|
(10,394
|
)
|
|
|
(11,214
|
)
|
Toledo Spirit time-charter derivative contract
|
|
|
|
|
|
|
(1,919
|
)
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,237
|
)
|
|
|
(12,313
|
)
|
|
|
(11,214
|
)
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) relating to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps
|
|
|
19,806
|
|
|
|
37,277
|
|
|
|
(15,398
|
)
|
Toledo Spirit time-charter derivative contract
|
|
|
1,200
|
|
|
|
2,100
|
|
|
|
(200
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,006
|
|
|
|
39,377
|
|
|
|
(15,598
|
)
|
|
|
|
|
|
|
|
|
|
|
Total realized and unrealized gains (losses) on derivative instruments
|
|
|
10,769
|
|
|
|
27,064
|
|
|
|
(26,812
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
For accounting purposes, the Partnership is required to revalue all foreign
currency-denominated monetary assets and liabilities based on the prevailing exchange rate at
the end of each reporting period. This revaluation does not affect the Partnerships 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.
|
|
(4)
|
|
Equity income includes unrealized gains (losses) on derivative instruments of $2.6
million, $6.4 million and $(2.2) million for the three months ended March 31, 2011, December
31, 2010 and March 31, 2010, respectively.
|
- more -
7
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED BALANCE SHEETS
(1)
(in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
As at March 31, 2011
|
|
|
As at December 31, 2010
|
|
|
|
unaudited
|
|
|
unaudited
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
72,612
|
|
|
|
81,055
|
|
Restricted cash current
|
|
|
88,443
|
|
|
|
82,576
|
|
Other current assets
|
|
|
23,448
|
|
|
|
25,273
|
|
Advances to affiliates
|
|
|
7,238
|
|
|
|
6,133
|
|
Restricted cash long-term
|
|
|
493,483
|
|
|
|
489,562
|
|
Vessels and equipment
|
|
|
1,922,164
|
|
|
|
1,940,041
|
|
Advances on newbuilding contracts
|
|
|
80,933
|
|
|
|
79,535
|
|
Net investments in direct financing leases
|
|
|
414,327
|
|
|
|
415,695
|
|
Derivative assets
|
|
|
50,688
|
|
|
|
62,283
|
|
Investments in joint ventures
|
|
|
180,868
|
|
|
|
172,898
|
|
Other assets
|
|
|
32,389
|
|
|
|
33,167
|
|
Intangible assets
|
|
|
121,263
|
|
|
|
123,546
|
|
Goodwill
|
|
|
35,631
|
|
|
|
35,631
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
3,523,487
|
|
|
|
3,547,395
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
Accounts payable, accrued liabilities and unearned revenue
|
|
|
53,594
|
|
|
|
56,971
|
|
Current portion of long-term debt and capital leases
|
|
|
557,567
|
|
|
|
343,790
|
|
Advances from affiliates and joint venture partners
|
|
|
132,210
|
|
|
|
133,410
|
|
Long-term debt and capital leases
|
|
|
1,600,770
|
|
|
|
1,793,459
|
|
Derivative liabilities
|
|
|
167,364
|
|
|
|
199,965
|
|
Other long-term liabilities
|
|
|
106,563
|
|
|
|
106,477
|
|
Equity
|
|
|
|
|
|
|
|
|
Non-controlling interest
(2)
|
|
|
21,828
|
|
|
|
17,123
|
|
Partners equity
|
|
|
883,591
|
|
|
|
896,200
|
|
|
|
|
|
|
|
|
Total Liabilities and Total Equity
|
|
|
3,523,487
|
|
|
|
3,547,395
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Due to the Partnerships agreement to acquire Teekay Corporations 100 percent interest in
the two Skaugen Multigas Carriers, it is required to consolidate these vessels prior to the
actual acquisition date under U.S. GAAP.
|
|
(2)
|
|
Non-controlling interest includes the 30 percent portion of the RasGasII Project, 31 percent
of the equity interest in the Tangguh project and 1 percent of the equity interest in both the
Kenai LNG Carriers and the Excalibur Joint Venture, which in each case the Partnership does
not own.
|
- more -
8
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2011
|
|
|
2010
(1)
|
|
Cash and cash equivalents provided by (used for)
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net operating cash flow
|
|
|
39,670
|
|
|
|
60,486
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Distribution to Teekay Corporation for the acquisition of the Bermuda Spirit,
Hamilton Spirit and Alexander Spirit
|
|
|
|
|
|
|
(33,997
|
)
|
Proceeds from issuance of long-term debt
|
|
|
24,118
|
|
|
|
28,246
|
|
Scheduled repayments of long-term debt
|
|
|
(16,275
|
)
|
|
|
(19,248
|
)
|
Prepayments of long-term debt
|
|
|
(12,000
|
)
|
|
|
(9,000
|
)
|
Scheduled repayments of capital lease obligations and other long-term liabilities
|
|
|
(2,482
|
)
|
|
|
(774
|
)
|
Advances to and from affiliates
|
|
|
1,401
|
|
|
|
(4,420
|
)
|
Repayment of joint venture partners advances
|
|
|
(59
|
)
|
|
|
|
|
Equity contribution from Teekay Corporation to Dropdown Predecessor
|
|
|
|
|
|
|
466
|
|
Cash distributions paid
|
|
|
(37,666
|
)
|
|
|
(31,587
|
)
|
(Increase) decrease in restricted cash
|
|
|
(3,213
|
)
|
|
|
299
|
|
Other
|
|
|
(120
|
)
|
|
|
(120
|
)
|
|
|
|
|
|
|
|
Net financing cash flow
|
|
|
(46,296
|
)
|
|
|
(70,135
|
)
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Receipts from direct financing leases
|
|
|
1,367
|
|
|
|
1,268
|
|
Expenditures for vessels and equipment
|
|
|
(3,184
|
)
|
|
|
(2,651
|
)
|
Advances to joint venture partner and joint venture
|
|
|
|
|
|
|
(94
|
)
|
|
|
|
|
|
|
|
Net investing cash flow
|
|
|
(1,817
|
)
|
|
|
(1,477
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
(8,443
|
)
|
|
|
(11,126
|
)
|
Cash and cash equivalents, beginning of the period
|
|
|
81,055
|
|
|
|
108,350
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of the period
|
|
|
72,612
|
|
|
|
97,224
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
In accordance with GAAP, the Consolidated Statements of Cash Flows includes the cash flows
relating to the Dropdown Predecessor for the
Alexander Spirit
,
Hamilton Spirit
and
Bermuda
Spirit
, for the period from September 3, 2009, June 24, 2009 and May 27, 2009, respectively to
March 17, 2010, when the vessels were under the common control of Teekay, but prior to their
acquisition by the Partnership.
|
- more -
9
TEEKAY LNG PARTNERS L.P.
APPENDIX A SPECIFIC ITEMS AFFECTING NET INCOME
(in thousands of U.S. dollars)
Set forth below is a reconciliation of the Partnerships unaudited adjusted net income attributable
to the partners, a non-GAAP financial measure, to net income attributable to the partners as
determined in accordance with GAAP. The Partnership believes that, in addition to conventional
measures prepared in accordance with GAAP, certain investors use this information to evaluate the
Partnerships financial performance. The items below are also typically excluded by securities
analysts in their published estimates of the Partnerships financial results. Adjusted net income
attributable to the partners is intended to provide additional information and should not be
considered a substitute for measures of performance prepared in accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
|
March 31, 2011
|
|
|
March 31, 2010
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Net income GAAP basis
|
|
|
29,737
|
|
|
|
31,021
|
|
Less:
|
|
|
|
|
|
|
|
|
Net (income) attributable to Dropdown Predecessor
|
|
|
|
|
|
|
(2,258
|
)
|
Net (income) attributable to non-controlling interest
|
|
|
(4,757
|
)
|
|
|
(301
|
)
|
|
|
|
|
|
|
|
Net income attributable to the partners
|
|
|
24,980
|
|
|
|
28,462
|
|
Add (subtract) specific items affecting net income:
|
|
|
|
|
|
|
|
|
Foreign exchange loss (gain)
(1)
|
|
|
21,033
|
|
|
|
(23,096
|
)
|
Unrealized (gains) losses from derivative instruments
(2)
|
|
|
(21,006
|
)
|
|
|
15,598
|
|
Unrealized (gains) losses from derivative instruments from
equity accounted investees
(2)
|
|
|
(2,554
|
)
|
|
|
2,182
|
|
Restructuring charge and other
(3)
|
|
|
949
|
|
|
|
49
|
|
Non-controlling interests share of items above
|
|
|
2,484
|
|
|
|
(1,804
|
)
|
|
|
|
|
|
|
|
Total adjustments
|
|
|
906
|
|
|
|
(7,071
|
)
|
|
|
|
|
|
|
|
Adjusted net income attributable to the partners
|
|
|
25,886
|
|
|
|
21,391
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Foreign exchange gains primarily relate to the revaluation of the Partnerships debt,
capital leases and restricted cash denominated in Euros.
|
|
(2)
|
|
Reflects the unrealized gain (loss) due to changes in the mark-to-market value of derivative
instruments that are not designated as hedges for accounting purposes.
|
|
(3)
|
|
Amount for three months ended March 31, 2011 relates to a one-time management fee associated
with the portion of stock-based compensation grants to Teekays former President and Chief
Executive Officer that had not yet vested prior to the date of his retirement on March 31,
2011.
|
- more -
10
TEEKAY LNG PARTNERS L.P.
APPENDIX B RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
(in thousands of U.S. dollars)
Description of Non-GAAP Financial Measure Distributable Cash Flow
(DCF)
Distributable cash flow represents net income adjusted for depreciation and amortization expense,
non-cash items, estimated maintenance capital expenditures, gains and losses on vessel sales,
unrealized gains and losses from derivatives, income from variable interest entity, deferred income
taxes, foreign exchange related items and net income attributable to the Dropdown Predecessor
before depreciation. Maintenance capital expenditures represent those capital expenditures
required to maintain over the long-term the operating capacity of, or the revenue generated by, the
Partnerships capital assets. Distributable cash flow is a quantitative standard used in the
publicly-traded partnership investment community to assist in evaluating a partnerships ability to
make quarterly cash distributions. Distributable cash flow is not required by accounting
principles generally accepted in the United States and should not be considered as an alternative
to net income or any other indicator of the Partnerships performance required by accounting
principles generally accepted in the United States. The table below reconciles distributable cash
flow to net income.
|
|
|
|
|
|
|
Three Months
|
|
|
|
Ended
|
|
|
|
March 31, 2011
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Net income
|
|
|
29,737
|
|
Add:
|
|
|
|
|
Depreciation and amortization
|
|
|
22,349
|
|
Partnerships share of joint ventures DCF before
estimated maintenance capital expenditures
|
|
|
7,863
|
|
Non-cash tax expense
|
|
|
617
|
|
Unrealized foreign exchange loss
|
|
|
21,033
|
|
Less:
|
|
|
|
|
Unrealized gain from derivatives and other non-cash items
|
|
|
(19,427
|
)
|
Estimated maintenance capital expenditures
|
|
|
(11,168
|
)
|
Equity income from joint ventures
|
|
|
(8,057
|
)
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow before Non-controlling interest
|
|
|
42,947
|
|
Non-controlling interests share of DCF before estimated maintenance capital expenditures
|
|
|
(3,866
|
)
|
|
|
|
|
Distributable Cash Flow
|
|
|
39,081
|
|
|
|
|
|
- more -
11
TEEKAY LNG PARTNERS L.P.
APPENDIX C SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2011
|
|
|
|
(unaudited)
|
|
|
|
Liquefied Gas
|
|
|
Conventional Tanker
|
|
|
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Total
|
|
Net voyage revenues
(1)
|
|
|
65,784
|
|
|
|
27,065
|
|
|
|
92,849
|
|
Vessel operating expenses
|
|
|
11,077
|
|
|
|
9,730
|
|
|
|
20,807
|
|
Depreciation and amortization
|
|
|
15,124
|
|
|
|
7,225
|
|
|
|
22,349
|
|
General and administrative
|
|
|
3,324
|
|
|
|
3,002
|
|
|
|
6,326
|
|
|
|
|
|
|
|
|
|
|
|
Income from vessel operations
|
|
|
36,259
|
|
|
|
7,108
|
|
|
|
43,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2010
|
|
|
|
(unaudited)
|
|
|
|
Liquefied Gas
|
|
|
Conventional Tanker
|
|
|
|
|
|
|
Segment
|
|
|
Segment
|
|
|
Total
|
|
Net voyage revenues
(1)
|
|
|
65,813
|
|
|
|
26,538
|
|
|
|
92,351
|
|
Vessel operating expenses
|
|
|
11,416
|
|
|
|
9,612
|
|
|
|
21,028
|
|
Depreciation and amortization
|
|
|
15,238
|
|
|
|
6,918
|
|
|
|
22,156
|
|
General and administrative
|
|
|
2,744
|
|
|
|
2,648
|
|
|
|
5,392
|
|
Restructuring charge
|
|
|
|
|
|
|
49
|
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
|
Income from vessel operations
|
|
|
36,415
|
|
|
|
7,311
|
|
|
|
43,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Net voyage revenues represents voyage revenues less voyage expenses, which comprise all
expenses relating to certain voyages, including bunker fuel expenses, port fees, canal tolls
and brokerage commissions. Net voyage revenues is a non-GAAP financial measure used by
certain investors to measure the financial performance of shipping companies. Please see the
Partnerships web site at
www.teekaylng.com
for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable GAAP financial measure.
|
- more -
12
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 managements current views with respect to certain
future events and performance, including statements regarding: the Partnerships future growth
opportunities; improvements in the LNG sector; the timing of LNG and LPG/Multigas newbuilding
deliveries and incremental cash flows relating to long-term, fixed-rate contracts serviced by these
newbuildings; the growth opportunities in floating LNG regasification market; the Partnerships
financial position, including available liquidity; and the potential for the Partnership to
increase distributable cash flow from future projects and acquisitions of additional vessels from
third parties. 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: the unit price of equity offerings to
finance acquisitions; changes in production of LNG or LPG, either generally or in particular
regions; development of LNG and LPG projects; required approvals by the Conflicts Committee of the
Board of Directors of the Partnerships general partner to acquire any projects offered to the
Partnership by Teekay Corporation; less than anticipated revenues or higher than anticipated costs
or capital requirements; changes in trading patterns 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 and
inability of the Partnership to renew or replace long-term contracts; LNG and LPG/Multigas project
delays or shipyard production delays which would change the expected timing and cost of newbuild
vessel deliveries; the Partnerships ability to raise financing to purchase additional vessels or
to pursue LNG or LPG/Multigas projects; changes to the amount or proportion of revenues, expenses,
or debt service costs denominated in foreign currencies; 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, 2010. 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 Partnerships expectations with respect thereto or any change in events, conditions
or circumstances on which any such statement is based.
- end -
13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
|
|
|
TEEKAY LNG PARTNERS L.P.
|
|
|
By:
|
/s/ Peter Evensen
|
|
|
|
Peter Evensen
|
|
Date: May 13, 2011
|
|
Chief Executive Officer and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
|
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