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 ended June 30, 2019.
Consolidated Financial Summary
|
Three Months Ended |
|
June 30, 2019 |
March 31, 2019 |
June 30, 2018 |
(in thousands of U.S. Dollars, except per unit
data) |
(unaudited) |
(unaudited) |
(unaudited) |
GAAP FINANCIAL COMPARISON |
|
|
|
Voyage revenues |
153,060 |
|
149,744 |
|
122,315 |
|
Income from vessel
operations |
74,677 |
|
69,361 |
|
10,505 |
|
Equity income |
1,738 |
|
5,578 |
|
11,194 |
|
Net income attributable to the
partners and preferred unitholders |
16,435 |
|
21,617 |
|
2,734 |
|
Limited partners’ interest in
net income (loss) per common unit |
0.12 |
|
0.19 |
|
(0.05 |
) |
NON-GAAP FINANCIAL
COMPARISON |
|
|
|
Adjusted net income
attributable to the partners and preferred unitholders(1) |
34,435 |
|
33,365 |
|
13,535 |
|
Limited partners’ interest in
adjusted net income per common unit |
0.35 |
|
0.34 |
|
0.09 |
|
Total Adjusted EBITDA(1) |
162,069 |
|
158,214 |
|
115,005 |
|
Distributable cash flow (DCF)(1) |
56,330 |
|
54,214 |
|
31,116 |
|
(1) These are non-GAAP financial measures.
Please refer to “Definitions and Non-GAAP Financial Measures” and
the Appendices to this release for definitions of these terms and
reconciliations of these non-GAAP financial measures as used in
this release to the most directly comparable financial measures
under United States generally accepted accounting principles
(GAAP).
(2) The Partnership’s Total
(Proportionate Consolidated) Adjusted EBITDA guidance range for
2019 has increased by approximately $30 million, to $665-690
million, to include the non-controlling interest portion of
Adjusted EBITDA relating to the Tangguh and RasGas2 joint ventures,
which is consistent with the calculation method as described in
this Earnings Release under Definitions of Non-GAAP Financial
Measures. The 2019 Consolidated Adjusted EBITDA and Total
Adjusted EBITDA guidance metrics provided by the Partnership have
been normalized to exclude any Awilco deferred revenue.
Second Quarter of 2019 Compared to Second Quarter of
2018
GAAP net income and non-GAAP adjusted net income
attributable to the partners and preferred unitholders for the
three months ended June 30, 2019, compared to the same quarter
in the prior year, were positively impacted by: earnings from the
nine liquefied natural gas (LNG) carrier newbuildings delivered
into the Partnership’s consolidated fleet and equity-accounted
joint ventures between May 2018 and June 2019; higher earnings from
the Torben Spirit upon redeployment at a higher charter rate that
commenced in December 2018; lower vessel operating expenses due to
timing of expenditures; lower general and administrative expenses
due primarily to lower corporate costs; and higher earnings from
the Partnership's seven multi-gas carriers. These increases in
earnings were partially offset by lower earnings from the
Partnership's conventional tanker fleet for the three months ended
June 30, 2019 due to the sales of three conventional tankers
between October 2018 and January 2019.
In addition, GAAP net income attributable to the
partners and preferred unitholders was positively impacted in the
three months ended June 30, 2019, compared to the same quarter
of the prior year, by various items, including a decrease in the
write-down of vessels, partially offset by increases in unrealized
losses on non-designated derivative instruments.
CEO Commentary
“Our financial results improved again this
quarter compared to both the previous quarter and the same quarter
last year due to recent newbuilding deliveries and higher charter
rates on certain LNG carriers, partially offset by an increase in
drydocks and waiting time prior to the commencement of recently
secured LNG charters at higher rates,” commented Mark Kremin,
Teekay Gas Group Ltd.’s President and Chief Executive Officer.
“Looking ahead, we expect our financial results for the
second half of this year to continue to improve now that each of
these new charters have commenced, leading to higher utilization
and higher revenues, coupled with fewer drydocks and the expected
delivery of another three 50 percent-owned Yamal ARC7 LNG
newbuildings and the start-up of the Bahrain LNG regasification
terminal.”
Mr. Kremin continued, “I am also pleased to
report that our smaller LPG segment generated stronger Adjusted
EBITDA this quarter compared to both last quarter and the same
quarter of the prior year, now that all of our
wholly-owned multi-gas carriers have transitioned into the
Lauritzen-Kosan Pool. We are encouraged to see that charter rates
for larger LPG carriers have been strengthening recently, which may
translate into higher charter rates for our mid-size LPG
carriers.”
“As our fixed-rate cash flows increase as
newbuild vessels deliver, the Partnership’s delevering trend, which
began over a year ago, continued again this quarter and at the same
time, we have been returning capital to unitholders with the recent
36 percent increase in distributions and opportunistic common unit
repurchases,” commented Mr. Kremin. “We remain committed to our
balanced capital allocation plan, which we believe will create
value to our long-term unitholders.”
Summary of Recent Events
In June 2019, the Partnership took delivery of
the third, 50 percent-owned ARC7 LNG carrier newbuilding, the
Nikolay Yevgenov, which immediately commenced its 27-year charter
contract servicing the Yamal LNG project.
The three-year charter contract for the Magellan
Spirit, the three-year charter contract extension for the Polar
Spirit and the one-year charter contracts for the Arwa Spirit and
Marib Spirit, both of which are owned by the Partnership's 52
percent-owned Teekay LNG-Marubeni Joint Venture, commenced at
higher charter rates between May 2019 and July 2019.
In December 2018, the Board of Teekay LNG's
general partner approved a $100 million unit repurchase program.
Since that time, the Partnership has repurchased a total of 1.43
million common units, or approximately 2 percent of the outstanding
common units immediately prior to commencement of the program, for
a total cost of $16.9 million, representing an average repurchase
price of $11.86 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).
|
Three Months Ended |
|
June 30, 2019 |
June 30, 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 |
141,833 |
|
8,858 |
|
2,369 |
|
153,060 |
|
105,405 |
|
6,767 |
|
10,143 |
|
122,315 |
|
Income (loss) from vessel
operations |
73,933 |
|
311 |
|
433 |
|
74,677 |
|
50,631 |
|
(41,186 |
) |
1,060 |
|
10,505 |
|
Equity income (loss) |
3,377 |
|
(1,639 |
) |
— |
|
1,738 |
|
12,619 |
|
(1,425 |
) |
— |
|
11,194 |
|
NON-GAAP FINANCIAL
COMPARISON |
|
|
|
|
|
|
|
|
Consolidated Adjusted
EBITDA(i) |
111,109 |
|
2,341 |
|
602 |
|
114,052 |
|
78,299 |
|
(5,943 |
) |
2,235 |
|
74,591 |
|
Adjusted EBITDA from
equity-accounted vessels(i) |
40,095 |
|
7,922 |
|
— |
|
48,017 |
|
34,179 |
|
6,235 |
|
— |
|
40,414 |
|
Total
Adjusted EBITDA(i) |
151,204 |
|
10,263 |
|
602 |
|
162,069 |
|
112,478 |
|
292 |
|
2,235 |
|
115,005 |
|
- 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 for the liquefied natural gas segment for the three
months ended June 30, 2019, compared to the same quarter of the
prior year, were positively impacted primarily by: the deliveries
of five wholly-owned LNG carrier newbuildings (the Myrina, Megara,
Bahrain Spirit, Sean Spirit and Yamal Spirit) between May 2018 and
January 2019; and higher earnings from the Torben Spirit upon
redeployment in December 2018 at a higher charter rate. These
increases were partially offset by an increase in off-hire days in
the second quarter of 2019 for certain of the Partnership’s LNG
carriers due to repairs and a scheduled dry docking.
Equity income and Adjusted EBITDA from
equity-accounted vessels for the liquefied natural gas segment for
the three months ended June 30, 2019, compared to the same quarter
of the prior year, were positively impacted primarily by: the
deliveries of two LNG carrier newbuildings between July 2018 and
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 the deliveries of two ARC7 LNG
carrier newbuildings between September 2018 and June 2019 to the
Partnership’s 50 percent-owned Joint Venture with China LNG
Shipping (Holdings) Limited (the Yamal LNG Joint Venture);
partially offset by the commencement of the Partnership's 21-year
time-charter contract for the Bahrain Spirit in September 2018 in
the Partnership's 30 percent-owned joint venture with the Natural
Oil and Gas Authority, Gulf Investment Corporation G.S.C. and
Samsung C&T (the Bahrain LNG Joint Venture) ahead of the
commencement of operations of the LNG regasification terminal in
Bahrain; and scheduled dry dockings and planned maintenance on
certain vessels in the Partnership's 52 percent-owned joint venture
with Marubeni Corporation (the Teekay LNG-Marubeni Joint Venture).
In addition, GAAP equity income was negatively impacted by
unrealized losses on non-designated derivative instruments in the
Partnership's equity-accounted joint ventures in the second quarter
of 2019 compared to gains on designated and non-designated
derivative instruments in the second quarter of 2018.
Liquefied Petroleum Gas Segment
Income (loss) from vessel operations and
Consolidated Adjusted EBITDA for the liquefied petroleum gas
segment for the three months ended June 30, 2019, compared to the
same quarter of the prior year, were positively impacted by: higher
earnings from the Partnership's seven multi-gas carriers, which
earned higher spot revenues during the second quarter of 2019; and
lower vessel operating expenses due to timing of expenditures. In
addition, income (loss) from vessel operations for the three months
ended June 30, 2018, included a $33 million impairment charge
relating to four multi-gas carriers.
Equity income and Adjusted EBITDA from
equity-accounted vessels for the liquefied petroleum gas segment
for the three months ended June 30, 2019, compared to the same
quarter of the prior year, were positively impacted by fewer
off-hire days for scheduled dry dockings and repairs in the
Partnership’s 50/50 joint venture with Exmar NV (the Exmar LPG
Joint Venture). In addition, GAAP equity income was negatively
impacted by unrealized losses on non-designated derivative
instruments in the Exmar LPG Joint Venture for the three months
ended June 30, 2019, compared to unrealized gains in the same
quarter of the prior year.
Conventional Tanker Segment
Income from vessel operations and Consolidated
Adjusted EBITDA for the conventional tanker segment for the three
months ended June 30, 2019, compared to the same quarter of the
prior year, were negatively impacted by the sales of the European
Spirit, African Spirit and Toledo Spirit between October 2018 and
January 2019.
Teekay LNG's Fleet
The following table summarizes the Partnership’s
fleet as of July 31, 2019. The Partnership also owns a 30 percent
interest in a regasification terminal in Bahrain which is under
construction and is expected to commence operations in the second
half of 2019.
|
Number of Vessels |
|
Owned and In-Chartered Vessels(i) |
Newbuildings |
Total |
LNG Carrier
Fleet |
46(ii) |
3(iii) |
49 |
LPG/Multi-gas Carrier
Fleet |
29(iv) |
— |
29 |
Conventional Tanker
Fleet |
1(V) |
— |
1 |
Total |
76 |
3 |
79 |
- 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 interest in these newbuildings is
50 percent.
- The Partnership’s ownership interests in these vessels range
from 50 percent to 99 percent.
- The Partnership is currently marketing its Handymax product
tanker for sale and it has been recorded as "Vessel Held For Sale"
in the Partnership's Consolidated Balance Sheets.
Liquidity
As of June 30, 2019, the Partnership had
total liquidity of $337.4 million (comprised of $124.9 million in
cash and cash equivalents and $212.5 million in undrawn credit
facilities).
Conference Call
The Partnership plans to host a conference call
on Thursday, August 1, 2019 at 11:00 a.m. (ET) to discuss the
results for the second quarter of 2019. All unitholders and
interested parties are invited to listen to the live conference
call by choosing from the following options:
- By dialing (877) 260-1479 or (647) 490-5367, if outside North
America, and quoting conference ID code 5554354.
- 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 Second Quarter 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, LPG and crude oil marine transportation services primarily
under long-term, fee-based charter contracts through its interests
in 49 LNG carriers (including three newbuildings), 22 mid-size LPG
carriers, seven multi-gas carriers and one conventional tanker. The
Partnership's ownership interests in these vessels range from 20 to
100 percent. In addition, the Partnership owns a 30 percent
interest in a regasification terminal, which is currently under
construction. 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 Relations enquiries
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 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
Adjusted EBITDA represents net income (loss)
before interest, taxes, and depreciation and amortization and is
adjusted to exclude certain items whose timing or amount cannot be
reasonably estimated in advance or that are not considered
representative of core operating performance. Such adjustments
include vessel write-downs, gains or losses on sale 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 (4) of the Consolidated Statements of Income
(Loss) for a reconciliation of adjusted equity income to equity
income, the most directly comparable GAAP measure reflected in the
Partnership’s consolidated financial statements.
Distributable Cash Flow (DCF) represents GAAP
net income adjusted for write-down of 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, distributions
relating to equity financing of newbuilding installments,
distributions relating to preferred units, adjustments for direct
financing leases to a cash basis, unrealized foreign currency
exchange gains or losses 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 (Loss)(in thousands of U.S. Dollars,
except unit and per unit data)
|
Three Months Ended |
Six Month Ended |
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
2019 |
2019 |
2018 |
2019 |
2018 |
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Voyage
revenues |
153,060 |
|
149,744 |
|
122,315 |
|
302,804 |
|
237,621 |
|
|
|
|
|
|
|
Voyage expenses |
(6,023 |
) |
(5,775 |
) |
(7,951 |
) |
(11,798 |
) |
(13,752 |
) |
Vessel operating
expenses(1) |
(27,457 |
) |
(26,101 |
) |
(33,219 |
) |
(53,558 |
) |
(61,186 |
) |
Time-charter hire expense |
(3,080 |
) |
(5,591 |
) |
— |
|
(8,671 |
) |
— |
|
Depreciation and
amortization |
(35,338 |
) |
(34,126 |
) |
(29,794 |
) |
(69,464 |
) |
(59,061 |
) |
General and administrative
expenses(1) |
(5,667 |
) |
(6,632 |
) |
(7,846 |
) |
(12,299 |
) |
(14,917 |
) |
Write-down of vessels(2) |
— |
|
— |
|
(33,000 |
) |
— |
|
(51,662 |
) |
Restructuring charges(3) |
(818 |
) |
(2,158 |
) |
— |
|
(2,976 |
) |
(1,396 |
) |
Income from vessel operations |
74,677 |
|
69,361 |
|
10,505 |
|
144,038 |
|
35,647 |
|
|
|
|
|
|
|
Equity income(4) |
1,738 |
|
5,578 |
|
11,194 |
|
7,316 |
|
37,918 |
|
Interest expense |
(41,018 |
) |
(42,217 |
) |
(28,171 |
) |
(83,235 |
) |
(52,877 |
) |
Interest income |
960 |
|
1,078 |
|
902 |
|
2,038 |
|
1,816 |
|
Realized and unrealized (loss)
gain on non-designated derivative instruments(5) |
(7,826 |
) |
(6,617 |
) |
4,302 |
|
(14,443 |
) |
12,303 |
|
Foreign currency exchange
(loss) gain(6) |
(7,243 |
) |
(731 |
) |
8,443 |
|
(7,974 |
) |
7,170 |
|
Other income (expense)(7) |
236 |
|
251 |
|
350 |
|
487 |
|
(52,232 |
) |
Net income (loss) before tax expense |
21,524 |
|
26,703 |
|
7,525 |
|
48,227 |
|
(10,255 |
) |
Income tax expense |
(2,472 |
) |
(2,578 |
) |
(843 |
) |
(5,050 |
) |
(1,622 |
) |
Net income (loss) |
19,052 |
|
24,125 |
|
6,682 |
|
43,177 |
|
(11,877 |
) |
|
|
|
|
|
|
Non-controlling interest in
net income (loss) |
2,617 |
|
2,508 |
|
3,948 |
|
5,125 |
|
(7,717 |
) |
Preferred unitholders'
interest in net income (loss) |
6,425 |
|
6,425 |
|
6,426 |
|
12,850 |
|
12,851 |
|
General partner's interest in
net income (loss) |
200 |
|
304 |
|
(68 |
) |
504 |
|
(340 |
) |
Limited partners’ interest in
net income (loss) |
9,810 |
|
14,888 |
|
(3,624 |
) |
24,698 |
|
(16,671 |
) |
Limited partners' interest in
net income (loss) per common unit: |
|
|
|
|
|
• Basic |
0.12 |
|
0.19 |
(0.05 |
) |
0.31 |
|
(0.21 |
) |
• Diluted |
0.12 |
|
0.19 |
(0.05 |
) |
0.31 |
|
(0.21 |
) |
Weighted-average number of
common units outstanding: |
|
|
|
|
|
• Basic |
78,603,636 |
|
78,598,678 |
|
79,687,499 |
|
78,600,342 |
|
79,667,384 |
|
• Diluted |
78,685,537 |
|
78,680,661 |
|
79,687,499 |
|
78,682,263 |
|
79,667,384 |
|
Total
number of common units outstanding at end of period |
78,441,316 |
|
78,626,403 |
|
79,687,499 |
|
78,441,316 |
|
79,687,499 |
|
(1) The comparative figures for vessel operating expenses and
general and administrative expenses for the three and six months
ended June 30, 2018 have been reclassified to conform to the
presentation adopted in the current period relating to the
classification of certain related party transactions. The
reclassification had the effect of decreasing vessel operating
expenses and increasing general and administrative expenses by $0.8
million and $1.3 million, respectively, for the three and six
months ended June 30, 2018. There is no impact on income from
vessel operations or net income (loss) as a result of this
reclassification.
(2) 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 three and six months ended June 30,
2018 in the Partnership's Consolidated Statements of Income (Loss).
In addition, for the six months ended June 30, 2018, the
Partnership recorded an aggregate write-down of $5.7 million on the
African Spirit and European Spirit conventional tankers and
recorded a write-down of $13.0 million relating to the Alexander
Spirit conventional tanker.
(3) 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 $0.8
million for the three months ended June 30, 2019, $2.2 million for
the three months ended March 31, 2019, and $3.0 million and $1.4
million for the six months ended June 30, 2019 and 2018,
respectively, relating to seafarer severance costs.
(4) 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 |
Six Month Ended |
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
2019 |
2019 |
2018 |
2019 |
2018 |
Equity income |
1,738 |
|
5,578 |
|
11,194 |
|
7,316 |
|
37,918 |
|
Proportionate share of
unrealized loss (gain) on non-designated interest rate swaps |
5,102 |
|
4,360 |
|
(2,977 |
) |
9,462 |
|
(11,198 |
) |
Proportionate share of
ineffective portion of hedge-accounted interest rate swaps |
— |
|
— |
|
(1,809 |
) |
— |
|
(5,068 |
) |
Gain on sale of
equity-accounted investment |
— |
|
— |
|
— |
|
— |
|
(5,563 |
) |
Proportionate share of other items |
1,124 |
|
345 |
|
(128 |
) |
1,469 |
|
257 |
|
Equity
income adjusted for items in Appendix A |
7,964 |
|
10,283 |
|
6,280 |
|
18,247 |
|
16,346 |
|
(5) 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 (losses) gains 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 |
Six Month Ended |
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
2019 |
2019 |
2018 |
2019 |
2018 |
Realized (losses)
gains relating to: |
|
|
|
|
|
Interest rate swap
agreements |
(2,392 |
) |
(2,385 |
) |
(4,310 |
) |
(4,777 |
) |
(8,788 |
) |
Toledo Spirit time-charter
derivative contract |
— |
|
— |
|
150 |
|
— |
|
459 |
|
|
(2,392 |
) |
(2,385 |
) |
(4,160 |
) |
(4,777 |
) |
(8,329 |
) |
Unrealized (losses)
gains relating to: |
|
|
|
|
|
Interest rate swap
agreements |
(5,333 |
) |
(4,192 |
) |
7,522 |
|
(9,525 |
) |
19,420 |
|
Foreign currency forward
contracts |
(101 |
) |
— |
|
— |
|
(101 |
) |
— |
|
Interest rate swaption
agreements |
— |
|
— |
|
— |
|
— |
|
2 |
|
Toledo Spirit time-charter
derivative contract |
— |
|
(40 |
) |
940 |
|
(40 |
) |
1,210 |
|
|
(5,434 |
) |
(4,232 |
) |
8,462 |
|
(9,666 |
) |
20,632 |
|
Total realized and unrealized (losses) gains on non-designated
derivative instruments |
(7,826 |
) |
(6,617 |
) |
4,302 |
|
(14,443 |
) |
12,303 |
|
(6) For accounting purposes, the Partnership is
required to revalue all foreign currency-denominated monetary
assets and liabilities based on the prevailing exchange rates at
the end of each reporting period. This revaluation does not affect
the Partnership’s cash flows or the calculation of distributable
cash flow, but results in the recognition of unrealized foreign
currency translation gains or losses in the Consolidated Statements
of Income (Loss).
Foreign currency exchange (loss) gain includes
realized losses relating to the amounts the Partnership paid to
settle 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
(losses) gains 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 |
Six Month Ended |
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
2019 |
2019 |
2018 |
2019 |
2018 |
Realized losses on
cross-currency swaps |
(1,087 |
) |
(1,434 |
) |
(1,798 |
) |
(2,521 |
) |
(3,182 |
) |
Unrealized (losses) gains on
cross currency swaps |
(139 |
) |
(1,920 |
) |
(16,566 |
) |
(2,059 |
) |
5,768 |
|
Unrealized (losses) gains on revaluation of NOK bonds |
(3,901 |
) |
(579 |
) |
14,852 |
|
(4,480 |
) |
(2,635 |
) |
(7) Following the termination of the capital
lease arrangements for the three LNG carriers in Teekay Nakilat
Corporation (the Teekay Nakilat Joint Venture), the lessor made a
determination in 2018 that additional rentals were due under the
leases following a challenge by the UK taxing authority. As a
result, during the six months ended June 30, 2018, the Teekay
Nakilat Joint Venture recognized an additional liability of $53.0
million which was included as part of other income (expense) in the
Consolidated Statements of Income (Loss), and subsequently settled
this liability by releasing a $7.0 million cash deposit it had made
with the lessor and making a $56.0 million cash payment for the
balance, which was based on the GBP/USD foreign currency exchange
rates at the time the payments were made.
Teekay LNG Partners L.P.Consolidated
Balance Sheets
(in thousands of U.S. Dollars)
|
As at June 30, |
As at March 31, |
As at December 31, |
|
2019 |
2019 |
2018 |
|
(unaudited) |
(unaudited) |
(unaudited) |
ASSETS |
|
|
|
Current |
|
|
|
Cash and cash equivalents |
124,880 |
|
122,589 |
|
149,014 |
|
Restricted cash – current |
48,869 |
|
45,329 |
|
38,329 |
|
Accounts receivable |
25,439 |
|
23,962 |
|
20,795 |
|
Prepaid expenses |
8,087 |
|
10,937 |
|
8,076 |
|
Vessel held for sale |
12,300 |
|
— |
|
— |
|
Current portion of derivative
assets |
— |
|
433 |
|
835 |
|
Current portion of net
investments in direct financing leases |
13,082 |
|
12,939 |
|
12,635 |
|
Current portion of advances to
equity-accounted joint ventures |
79,108 |
|
79,363 |
|
79,108 |
|
Advances to affiliates |
22,831 |
|
10,146 |
|
8,229 |
|
Other current assets |
238 |
|
1,812 |
|
2,306 |
|
Total current assets |
334,834 |
|
307,510 |
|
319,327 |
|
|
|
|
|
Restricted cash –
long-term |
31,439 |
|
32,686 |
|
35,521 |
|
|
|
|
|
Vessels and
equipment |
|
|
|
At cost, less accumulated
depreciation |
1,616,029 |
|
1,645,351 |
|
1,657,338 |
|
Operating lease right-of-use
asset |
40,666 |
|
19,602 |
|
— |
|
Vessels related to finance
leases, at cost, less accumulated depreciation |
1,704,908 |
|
1,758,028 |
|
1,585,243 |
|
Advances on newbuilding
contracts |
— |
|
— |
|
86,942 |
|
Total vessels and equipment |
3,361,603 |
|
3,422,981 |
|
3,329,523 |
|
Investments in and advances to
equity-accounted joint ventures |
994,880 |
|
1,017,088 |
|
1,037,025 |
|
Net investments in direct
financing leases |
551,603 |
|
558,857 |
|
562,528 |
|
Derivative assets |
— |
|
362 |
|
2,362 |
|
Other assets |
12,204 |
|
11,508 |
|
11,432 |
|
Intangible assets – net |
47,794 |
|
50,008 |
|
52,222 |
|
Goodwill |
34,841 |
|
34,841 |
|
34,841 |
|
Total assets |
5,369,198 |
|
5,435,841 |
|
5,384,781 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Current |
|
|
|
Accounts payable |
1,169 |
|
6,542 |
|
3,830 |
|
Accrued liabilities |
72,241 |
|
73,730 |
|
74,753 |
|
Unearned revenue |
24,573 |
|
24,102 |
|
30,108 |
|
Current portion of long-term
debt |
402,513 |
|
136,272 |
|
135,901 |
|
Current obligations related to
finance leases |
65,525 |
|
65,090 |
|
81,219 |
|
Current portion of operating
lease liabilities |
13,098 |
|
12,863 |
|
— |
|
Current portion of derivative
liabilities |
27,805 |
|
12,060 |
|
11,604 |
|
Advances from affiliates |
15,655 |
|
14,475 |
|
14,731 |
|
Total current liabilities |
622,579 |
|
345,134 |
|
352,146 |
|
Long-term debt |
1,465,155 |
|
1,770,812 |
|
1,833,875 |
|
Long-term obligations related
to finance leases |
1,334,271 |
|
1,350,897 |
|
1,217,337 |
|
Long-term operating lease
liabilities |
27,568 |
|
6,739 |
|
— |
|
Other long-term
liabilities |
46,171 |
|
45,966 |
|
43,788 |
|
Derivative liabilities |
54,767 |
|
61,164 |
|
55,038 |
|
Total liabilities |
3,550,511 |
|
3,580,712 |
|
3,502,184 |
|
Equity |
|
|
|
Limited partners – common
units |
1,485,516 |
|
1,493,278 |
|
1,496,107 |
|
Limited partners – preferred
units |
285,159 |
|
285,159 |
|
285,159 |
|
General partner |
49,056 |
|
49,215 |
|
49,271 |
|
Accumulated other comprehensive (loss) income |
(53,232 |
) |
(23,504 |
) |
2,717 |
|
Partners' equity |
1,766,499 |
|
1,804,148 |
|
1,833,254 |
|
Non-controlling interest |
52,188 |
|
50,981 |
|
49,343 |
|
Total
equity |
1,818,687 |
|
1,855,129 |
|
1,882,597 |
|
Total liabilities and total equity |
5,369,198 |
|
5,435,841 |
|
5,384,781 |
|
Teekay LNG Partners L.P.Consolidated
Statements of Cash Flows(in thousands of U.S. Dollars)
|
Six Month Ended |
|
June 30, |
June 30, |
|
2019 |
2018 |
|
(unaudited) |
(unaudited) |
Cash, cash equivalents and
restricted cash provided by (used for) |
|
|
OPERATING
ACTIVITIES |
|
|
Net income
(loss) |
43,177 |
|
(11,877 |
) |
Non-cash items: |
|
|
Unrealized loss (gain) on non-designated derivative
instruments |
9,666 |
|
(20,632 |
) |
Depreciation and amortization |
69,464 |
|
59,061 |
|
Write-down of vessels |
— |
|
51,662 |
|
Unrealized foreign currency exchange loss (gain) |
4,727 |
|
(11,703 |
) |
Equity income, net of dividends received of $7,008 (2018 –
$11,583) |
9,958 |
|
(26,335 |
) |
Other non-cash items |
8,998 |
|
(8,464 |
) |
Change in non-cash operating
assets and liabilities |
(28,827 |
) |
56,299 |
|
Receipts from direct financing
leases |
6,050 |
|
— |
|
Expenditures for dry
docking |
(6,335 |
) |
(4,423 |
) |
Net operating cash flow |
116,878 |
|
83,588 |
|
FINANCING
ACTIVITIES |
|
|
Proceeds from issuance of
long-term debt |
126,263 |
|
248,392 |
|
Scheduled repayments of
long-term debt |
(66,310 |
) |
(105,099 |
) |
Prepayments of long-term
debt |
(168,787 |
) |
(205,765 |
) |
Financing issuance costs |
(989 |
) |
(4,971 |
) |
Proceeds from financing
related to sales and leaseback of vessels |
158,680 |
|
243,812 |
|
Scheduled repayments of
obligations related to finance leases |
(33,855 |
) |
(25,316 |
) |
Repurchase of common
units |
(12,056 |
) |
— |
|
Cash distributions paid |
(39,315 |
) |
(34,727 |
) |
Dividends paid to non-controlling interest |
(55 |
) |
(157 |
) |
Net financing cash flow |
(36,424 |
) |
116,169 |
|
INVESTING
ACTIVITIES |
|
|
Expenditures for vessels and
equipment |
(82,575 |
) |
(311,308 |
) |
Capital contributions and
advances to equity-accounted joint ventures |
(15,555 |
) |
(27,071 |
) |
Proceeds from sale of
equity-accounted joint venture |
— |
|
54,438 |
|
Receipts from direct financing
leases |
— |
|
5,242 |
|
Net investing cash flow |
(98,130 |
) |
(278,699 |
) |
|
|
|
Decrease in cash, cash
equivalents and restricted cash |
(17,676 |
) |
(78,942 |
) |
Cash,
cash equivalents and restricted cash, beginning of the period |
222,864 |
|
339,435 |
|
Cash, cash equivalents and restricted cash, end of the
period |
205,188 |
|
260,493 |
|
Teekay LNG Partners L.P.Appendix A -
Reconciliation of Non-GAAP Financial
MeasuresAdjusted Net Income(in thousands
of U.S. Dollars)
|
Three Months Ended |
|
June 30, |
|
2019 |
2018 |
|
(unaudited) |
(unaudited) |
|
Net income – GAAP basis |
19,052 |
|
6,682 |
|
|
Less: Net income attributable
to non-controlling interests |
(2,617 |
) |
(3,948 |
) |
|
Net income attributable to the partners and preferred
unitholders |
16,435 |
|
2,734 |
|
|
Add (subtract) specific items
affecting net income: |
|
|
|
Write-down of vessels(1) |
— |
|
33,000 |
|
|
Restructuring charges(2) |
818 |
|
— |
|
|
Unrealized foreign currency exchange losses (gains)(3) |
6,068 |
|
(11,091 |
) |
|
Unrealized losses (gains) on non-designated and designated
derivative instruments and other items from equity-accounted
investees(4) |
6,226 |
|
(4,914 |
) |
|
Unrealized losses (gains) on non-designated derivative
instruments(5) |
5,434 |
|
(8,462 |
) |
|
Other items |
— |
|
1,054 |
|
|
Non-controlling interests’ share of items above(6) |
(546 |
) |
1,214 |
|
|
Total adjustments |
18,000 |
|
10,801 |
|
|
Adjusted net income attributable to the partners and
preferred unitholders |
34,435 |
|
13,535 |
|
|
|
|
|
|
Preferred unitholders'
interest in adjusted net income |
6,425 |
|
6,426 |
|
|
General partner's interest in
adjusted net income |
560 |
|
142 |
|
|
Limited partners’ interest in
adjusted net income |
27,450 |
|
6,967 |
|
|
Limited partners’ interest in
adjusted net income per common unit, basic |
0.35 |
|
0.09 |
|
|
Weighted-average number of
common units outstanding, basic |
78,603,636 |
|
79,687,499 |
|
|
- See Note 2 to the Consolidated Statements of Income (Loss)
included in this release for further details.
- See Note 3 to the Consolidated Statements of Income (Loss)
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 losses (gains) 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 6 to the Consolidated Statements of Income (Loss)
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 addition, for the
three months ended June 30, 2018, it includes any ineffectiveness
for derivative instruments designated as hedges for accounting
purposes. See Note 4 to the Consolidated Statements of Income
(Loss) 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. See Note 5 to the
Consolidated Statements of Income (Loss) included in this release
for further details.
- 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 |
|
June 30, |
|
2019 |
2018 |
|
(unaudited) |
(unaudited) |
|
|
|
|
|
|
Net income: |
19,052 |
|
6,682 |
|
|
Add: |
|
|
|
Depreciation and amortization |
35,338 |
|
29,794 |
|
|
Partnership’s share of equity-accounted joint ventures' DCF net of
estimated maintenance capital expenditures(1) |
16,056 |
|
14,939 |
|
|
Unrealized foreign currency exchange losses (gains) |
6,068 |
|
(11,091 |
) |
|
Unrealized losses (gains) on non-designated derivative
instruments |
5,434 |
|
(8,462 |
) |
|
Direct finance lease payments received in excess of revenue
recognized and other adjustments |
4,037 |
|
2,897 |
|
|
Distributions relating to equity financing of newbuildings |
1,099 |
|
2,289 |
|
|
Write-down of vessels |
— |
|
33,000 |
|
|
Deferred income tax and other non-cash items |
116 |
|
21 |
|
|
Less: |
|
|
|
Equity income |
(1,738 |
) |
(11,194 |
) |
|
Distributions relating to preferred units |
(6,425 |
) |
(6,426 |
) |
|
Estimated maintenance capital expenditures |
(17,397 |
) |
(16,345 |
) |
|
Distributable Cash Flow before non-controlling
interest |
61,640 |
|
36,104 |
|
|
Non-controlling interests’ share of DCF before estimated
maintenance capital expenditures |
(5,310 |
) |
(4,988 |
) |
|
Distributable Cash Flow |
56,330 |
|
31,116 |
|
|
Amount
of cash distributions attributable to the General Partner |
(304 |
) |
(228 |
) |
|
Limited
partners' Distributable Cash Flow |
56,026 |
|
30,888 |
|
|
Weighted-average number of common units outstanding, basic |
78,603,636 |
|
79,687,499 |
|
|
Distributable Cash Flow per limited partner common
unit |
0.71 |
|
0.39 |
|
|
- The estimated maintenance capital expenditures relating to the
Partnership’s share of equity-accounted joint ventures were $10.8
million and $8.3 million for the three months ended June 30, 2019
and 2018, respectively.
Teekay LNG Partners L.P.Appendix C -
Reconciliation of Non-GAAP Financial MeasuresTotal
Adjusted EBITDA(in thousands of U.S. Dollars)
|
Three Months Ended |
June 30, |
2019 |
2018 |
(unaudited) |
(unaudited) |
Net
income |
19,052 |
|
6,682 |
|
Depreciation and amortization |
35,338 |
|
29,794 |
|
Interest expense, net of interest income |
40,058 |
|
27,269 |
|
Income tax expense |
2,472 |
|
843 |
|
EBITDA |
96,920 |
|
64,588 |
|
|
|
|
Add (subtract) specific income
statement items affecting EBITDA: |
|
|
Foreign currency exchange loss (gain) |
7,243 |
|
(8,443 |
) |
Other income – net |
(236 |
) |
(350 |
) |
Equity income |
(1,738 |
) |
(11,194 |
) |
Realized and unrealized loss (gain) on derivative instruments |
7,826 |
|
(4,302 |
) |
Write-down of vessels |
— |
|
33,000 |
|
Direct finance lease payments received in excess of revenue
recognized and other adjustments |
4,037 |
|
2,897 |
|
Amortization of in-process contracts included in voyage
revenues |
— |
|
(1,755 |
) |
Realized gain on Toledo Spirit derivative contract |
— |
|
150 |
|
Consolidated adjusted
EBITDA |
114,052 |
|
74,591 |
|
Adjusted EBITDA from equity-accounted vessels (See Appendix E) |
48,017 |
|
40,414 |
|
Total Adjusted EBITDA |
162,069 |
|
115,005 |
|
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 June 30, 2019 |
|
(unaudited) |
|
Liquefied Natural Gas Segment |
Liquefied Petroleum Gas Segment |
Conventional Tanker Segment |
Total |
Voyage revenues |
141,833 |
|
8,858 |
|
2,369 |
|
153,060 |
|
Voyage (expenses)
recoveries |
(3,484 |
) |
(2,542 |
) |
3 |
|
(6,023 |
) |
Vessel operating expenses |
(23,146 |
) |
(3,630 |
) |
(681 |
) |
(27,457 |
) |
Time-charter hire expense |
(3,080 |
) |
— |
|
— |
|
(3,080 |
) |
Depreciation and
amortization |
(33,139 |
) |
(2,030 |
) |
(169 |
) |
(35,338 |
) |
General and administrative
expenses |
(5,051 |
) |
(345 |
) |
(271 |
) |
(5,667 |
) |
Restructuring charges |
— |
|
— |
|
(818 |
) |
(818 |
) |
Income
from vessel operations |
73,933 |
|
311 |
|
433 |
|
74,677 |
|
Depreciation and
amortization |
33,139 |
|
2,030 |
|
169 |
|
35,338 |
|
Direct finance lease payments
received in excess of revenue recognized and other adjustments |
4,037 |
|
— |
|
— |
|
4,037 |
|
Consolidated Adjusted EBITDA |
111,109 |
|
2,341 |
|
602 |
|
114,052 |
|
|
|
|
|
|
|
Three Months Ended June 30, 2018 |
|
(unaudited) |
|
Liquefied Natural Gas Segment |
Liquefied Petroleum Gas Segment |
Conventional Tanker Segment |
Total |
Voyage revenues |
105,405 |
|
6,767 |
|
10,143 |
|
122,315 |
|
Voyage expenses |
(496 |
) |
(3,949 |
) |
(3,506 |
) |
(7,951 |
) |
Vessel operating expenses |
(22,021 |
) |
(7,651 |
) |
(3,547 |
) |
(33,219 |
) |
Depreciation and
amortization |
(26,418 |
) |
(2,243 |
) |
(1,133 |
) |
(29,794 |
) |
General and administrative
expenses |
(5,839 |
) |
(1,110 |
) |
(897 |
) |
(7,846 |
) |
Write-down of vessels |
— |
|
(33,000 |
) |
— |
|
(33,000 |
) |
Income (loss) from vessel operations |
50,631 |
|
(41,186 |
) |
1,060 |
|
10,505 |
|
Depreciation and
amortization |
26,418 |
|
2,243 |
|
1,133 |
|
29,794 |
|
Write-down of vessels |
— |
|
33,000 |
|
— |
|
33,000 |
|
Amortization of in-process
contracts included in voyage revenues |
(1,647 |
) |
— |
|
(108 |
) |
(1,755 |
) |
Direct finance lease payments
received in excess of revenue recognized and other adjustments |
2,897 |
|
— |
|
— |
|
2,897 |
|
Realized gain on Toledo Spirit derivative contract |
— |
|
— |
|
150 |
|
150 |
|
Consolidated Adjusted EBITDA |
78,299 |
|
(5,943 |
) |
2,235 |
|
74,591 |
|
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 |
|
June 30, 2019 |
June 30, 2018 |
|
(unaudited) |
(unaudited) |
|
At |
Partnership's |
At |
Partnership's |
100% |
Portion(1) |
100% |
Portion(1) |
Voyage revenues |
172,632 |
|
73,391 |
|
137,291 |
|
59,845 |
|
Voyage expenses |
(4,502 |
) |
(2,196 |
) |
(2,469 |
) |
(1,254 |
) |
Vessel operating expenses,
time-charter hire expenses and general and administrative
expenses |
(63,879 |
) |
(27,992 |
) |
(48,496 |
) |
(21,738 |
) |
Depreciation and
amortization |
(28,551 |
) |
(13,741 |
) |
(25,368 |
) |
(12,652 |
) |
Income from vessel operations of equity-accounted vessels |
75,700 |
|
29,462 |
|
60,958 |
|
24,201 |
|
Net interest expense |
(52,929 |
) |
(21,254 |
) |
(38,170 |
) |
(16,276 |
) |
Income tax expense |
(670 |
) |
(246 |
) |
(46 |
) |
(24 |
) |
Other items including realized
and unrealized (loss) gain on derivative instruments |
(18,764 |
) |
(6,224 |
) |
8,495 |
|
3,293 |
|
Net income / equity income of equity-accounted vessels |
3,337 |
|
1,738 |
|
31,237 |
|
11,194 |
|
Net income / equity income of equity-accounted LNG vessels |
6,455 |
|
3,377 |
|
33,931 |
|
12,619 |
|
Net
loss / equity loss of equity-accounted LPG vessels |
(3,118 |
) |
(1,639 |
) |
(2,694 |
) |
(1,425 |
) |
|
|
|
|
|
Net income / equity income of
equity-accounted vessels |
3,337 |
|
1,738 |
|
31,237 |
|
11,194 |
|
Depreciation and amortization |
28,551 |
|
13,741 |
|
25,368 |
|
12,652 |
|
Net interest expense |
52,929 |
|
21,254 |
|
38,170 |
|
16,276 |
|
Income tax expense |
670 |
|
246 |
|
46 |
|
24 |
|
EBITDA from equity-accounted
vessels |
85,487 |
|
36,979 |
|
94,821 |
|
40,146 |
|
|
|
|
|
|
Add (subtract) specific income
statement items affecting EBITDA: |
|
|
|
|
Other items including realized and unrealized loss (gain) on
derivative instruments |
18,764 |
|
6,224 |
|
(8,495 |
) |
(3,293 |
) |
Direct finance lease payments received in excess of revenue
recognized |
16,131 |
|
5,759 |
|
12,574 |
|
4,523 |
|
Amortization of in-process contracts |
(1,736 |
) |
(945 |
) |
(1,822 |
) |
(962 |
) |
Adjusted EBITDA from equity-accounted vessels |
118,646 |
|
48,017 |
|
97,078 |
|
40,414 |
|
Adjusted EBITDA from
equity-accounted LNG vessels |
102,799 |
|
40,095 |
|
84,607 |
|
34,179 |
|
Adjusted EBITDA from equity-accounted LPG vessels |
15,847 |
|
7,922 |
|
12,471 |
|
6,235 |
|
- The Partnership's equity-accounted vessels for the three months
ended June 30, 2019 and 2018 include: the Partnership’s 40
percent ownership interest in Teekay Nakilat (III) Corporation,
which owns four LNG carriers; the Partnership’s 49 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 Teekay LNG-Marubeni Joint Venture, which
owns six LNG carriers; the Partnership’s 50 percent ownership
interest in Exmar LPG BVBA, which owns and in-charters 22 LPG
carriers as at June 30, 2019, compared to 22 owned and
in-chartered LPG carriers, including one LPG carrier newbuilding,
as at June 30, 2018; the Partnership’s ownership interest
ranging from 20 to 30 percent in four LNG carriers as at
June 30, 2019 for Shell, compared to two LNG carriers and two
LNG carrier newbuildings as at June 30, 2018; the
Partnership’s 50 percent ownership interest in three ARC7 LNG
carriers and three ARC7 LNG carrier newbuildings in the Yamal LNG
Joint Venture as at June 30, 2019, compared to one ARC7 LNG
carrier and five ARC7 LNG carrier newbuildings as at June 30,
2018; and the Partnership's 30 percent ownership interest in the
Bahrain LNG Joint Venture, which owns an LNG receiving and
regasification terminal under construction in Bahrain.
Teekay LNG Partners L.P.Appendix F -
Summarized Financial Information of Equity-Accounted Joint
Ventures(in thousands of U.S. Dollars)
|
As at June 30, 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 |
408,564 |
|
165,669 |
|
388,820 |
|
164,247 |
|
Current portion of derivative
assets |
860 |
|
430 |
|
4,840 |
|
2,225 |
|
Other current assets |
67,171 |
|
30,491 |
|
86,424 |
|
31,129 |
|
Vessels and equipment,
including vessels related to finance leases and operating lease
right-of-use assets |
2,331,799 |
|
1,145,557 |
|
2,327,971 |
|
1,141,364 |
|
Advances on newbuilding
contracts |
1,194,337 |
|
449,792 |
|
1,321,284 |
|
494,486 |
|
Net investments in sales-type
and direct financing leases, current and non-current |
3,625,687 |
|
1,365,655 |
|
3,089,375 |
|
1,163,980 |
|
Derivative assets |
327 |
|
164 |
|
10,660 |
|
3,977 |
|
Other
non-current assets |
49,019 |
|
39,427 |
|
50,625 |
|
37,690 |
|
Total
assets |
7,677,764 |
|
3,197,185 |
|
7,279,999 |
|
3,039,098 |
|
|
|
|
|
|
Current portion of long-term
debt and obligations related to finance leases and operating
leases |
274,034 |
|
120,346 |
|
284,150 |
|
125,984 |
|
Current portion of derivative
liabilities |
26,085 |
|
10,081 |
|
12,695 |
|
4,420 |
|
Other current liabilities |
144,767 |
|
63,972 |
|
127,266 |
|
53,874 |
|
Long-term debt and obligations
related to finance leases and operating leases |
4,592,339 |
|
1,828,466 |
|
4,202,745 |
|
1,680,986 |
|
Shareholders' loans, current
and non-current |
367,884 |
|
131,374 |
|
367,475 |
|
131,386 |
|
Derivative liabilities |
166,103 |
|
66,893 |
|
61,814 |
|
23,149 |
|
Other long-term
liabilities |
66,375 |
|
33,439 |
|
67,793 |
|
34,552 |
|
Equity |
2,040,177 |
|
942,614 |
|
2,156,061 |
|
984,747 |
|
Total liabilities and equity |
7,677,764 |
|
3,197,185 |
|
7,279,999 |
|
3,039,098 |
|
|
|
|
|
|
Investments in
equity-accounted joint ventures |
|
942,614 |
|
|
984,747 |
|
Advances to equity-accounted
joint ventures |
|
131,374 |
|
|
131,386 |
|
Investments in and advances to equity-accounted joint ventures,
current and non-current portions |
|
1,073,988 |
|
|
1,116,133 |
|
- The Partnership's equity-accounted vessels as at June 30,
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 49 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 Teekay LNG-Marubeni Joint Venture, which
owns six LNG carriers; the Partnership’s 50 percent ownership
interest in Exmar LPG BVBA, which owns and in-charters 22 LPG
carriers; the Partnership’s ownership interest ranging from 20
percent to 30 percent in four LNG carriers as at June 30, 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 three ARC7 LNG carriers and three ARC7 LNG
carrier newbuildings in the Yamal LNG Joint Venture as at
June 30, 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 under construction in Bahrain.
Forward-Looking Statements
This release contains forward-looking statements
(as defined in Section 21E of the Securities Exchange Act of 1934,
as amended) which reflect management’s current views with respect
to certain future events and performance, including statements,
among other things, regarding: the timing of newbuilding vessel
deliveries and completion of the Bahrain regasification facility;
the effects of future newbuilding deliveries and the completion of
the Bahrain facility on the Partnership's Total Adjusted EBITDA,
earnings and financial leverage; expectations regarding the
Partnership's 2019 financial results; anticipated higher
utilization and revenues, and fewer drydocks; the possibility of
higher charter rates for mid-size LPG vessels; expected delevering
and opportunistic common unit repurchases; the strength of the LNG
and LPG carrier market; the Partnership’s capital allocation plan
and its ability to create equity value; and Teekay LNG’s ability to
benefit from future LNG and LPG market fundamentals. The following
factors are among those that could cause actual results to differ
materially from the forward-looking statements, which involve risks
and uncertainties, and that should be considered in evaluating any
such statement: potential shipyard and project construction delays,
newbuilding specification changes or cost overruns; deliveries of
vessels under charter contracts and the commencement thereof;
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 charterers to make
future charter payments; the inability of the Partnership to renew
or replace long-term contracts on existing vessels; the
Partnership’s or the Partnership’s joint ventures’ ability to
secure or draw on financings for its vessels; potential lack of
cash flow to reduce balance sheet leverage or of excess capital
available to allocate; 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.
Teekay Lng Partners (NYSE:TGP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Teekay Lng Partners (NYSE:TGP)
Historical Stock Chart
From Jul 2023 to Jul 2024