Teekay GP L.L.C., the general partner (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 March 31, 2020.
Consolidated Financial Summary
| |
Three Months Ended |
| |
March 31, 2020 |
December 31, 2019 |
March 31, 2019 |
| (in thousands of U.S.
Dollars, except per unit data) |
(unaudited) |
(unaudited) |
(unaudited) |
| GAAP FINANCIAL COMPARISON |
|
|
|
| Voyage revenues |
139,887 |
|
148,797 |
|
149,744 |
|
| Income from vessel
operations |
21,738 |
|
83,604 |
|
69,361 |
|
| Equity income |
373 |
|
30,207 |
|
5,578 |
|
| Net (loss) income attributable
to the partners and preferred unitholders |
(32,994 |
) |
67,370 |
|
21,617 |
|
| Limited partners’ interest in
net (loss) income per common unit |
(0.50 |
) |
0.77 |
|
0.19 |
|
| NON-GAAP FINANCIAL
COMPARISON |
|
|
|
| Total adjusted
revenues(1) |
244,268 |
|
246,577 |
|
216,999 |
|
| Total adjusted EBITDA(1) |
188,388 |
|
184,168 |
|
158,214 |
|
| Distributable cash flow
(DCF)(1) |
74,877 |
|
71,350 |
|
54,214 |
|
| Adjusted net income
attributable to the partners and preferred unitholders(1) |
52,236 |
|
50,342 |
|
33,365 |
|
| Limited
partners’ interest in adjusted net income per common unit |
0.58 |
|
0.56 |
|
0.34 |
|
(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).
First Quarter of 2020 Compared to First Quarter
of 2019
GAAP net (loss) income and non-GAAP adjusted net
income attributable to the partners and preferred unitholders were
positively impacted for the three months ended March 31, 2020,
compared to the same quarter of the prior year, by: earnings from
the six liquefied natural gas (LNG) carrier newbuildings which
delivered into the Partnership’s consolidated fleet and
equity-accounted joint ventures between January and December 2019;
commencement of terminal use payments in January 2020 to the
Partnership's 30 percent-owned joint venture with National Oil
& Gas Authority, Gulf Investment Corporation and Samsung
C&T (the Bahrain LNG Joint Venture); higher earnings from the
Partnership’s 52 percent-owned joint venture with Marubeni
Corporation (the MALT Joint Venture) as a result of the charter
contracts that were secured at higher rates for the Arwa Spirit and
Marib Spirit in June and July 2019, respectively; and higher
earnings from the Partnership’s 50 percent-owned joint venture with
Exmar NV (the Exmar LPG Joint Venture) as a result of securing
higher LPG charter rates. These increases were partially offset by:
a reduction in earnings upon the sales of the WilForce and WilPride
LNG carriers in January 2020, the Toledo Spirit in January 2019 and
the Alexander Spirit in October 2019; and lower earnings from the
Magellan Spirit upon its redeployment in May 2019, which is
currently chartered-in from the MALT Joint Venture.
In addition, GAAP net (loss) income attributable
to the partners and preferred unitholders was negatively impacted
for the three months ended March 31, 2020, compared to the
same quarter of the prior year, by write-downs of $45 million
recorded on six multi-gas carriers in the first quarter of 2020;
unrealized credit loss provisions upon the adoption of the new
accounting standard ASC 326 on January 1, 2020; and higher
unrealized losses on non-designated derivative instruments.
CEO Commentary
“Teekay LNG continues to record strong operating
results with the completion of our growth program and our assets
operating as expected, earning reliable cash flows for the
Partnership,” commented Mark Kremin, President and Chief Executive
Officer of Teekay Gas Group Ltd. “While the unprecedented recent
global events are clearly a major area of focus for us, our
long-term contract cover has ensured that they have had a minimal
impact on Teekay LNG’s operations and cash flows so far in 2020,
and we expect this to continue. We are very proud of how our
dedicated seafarers and on-shore colleagues have responded to
COVID-19, implementing new standards which focus on the health and
well-being of everyone involved in our organization, especially our
colleagues at sea, while maintaining consistently safe and
efficient vessel operation for our customers."
Mr. Kremin continued, “I’m pleased that we took
proactive steps this quarter to strengthen our commercial position
with three new fixed-term LNG charters and to increase our
financial flexibility with the refinancing of our unsecured
revolver at the same size and pricing despite the volatility in our
markets. Our LNG fleet is now 100 percent fixed on ‘take-or-pay’
charters with high-quality customers and with over $370 million in
total liquidity as of March 31, 2020, we believe we are
well-positioned to meet our upcoming debt maturities without the
need to access the public capital markets until later next year,
while maintaining a strong financial foundation. Given the
long-term stability of our business model, we are today reaffirming
our fiscal 2020 financial guidance which projects an increase in
adjusted net income of approximately 48 percent(1) over 2019.”
(1) This is a non-GAAP financial measure. Please
see Teekay LNG’s Q1-20 earnings release for definitions and
reconciliations to the comparable GAAP measures. Assumes mid-point
of guidance range of $230-$270 million of adjusted net income for
2020.
Summary of Recent Events
In May 2020, Teekay Corporation and the
Partnership eliminated all of the Partnership's incentive
distribution rights held by the General Partner in exchange for
10.75 million newly-issued common units. Following the completion
of this transaction on May 11, 2020, Teekay Corporation now
beneficially owns approximately 36 million of the Partnership's
common units and remains the sole owner of the General Partner,
which together represents an economic interest of approximately 42
percent in the Partnership.
In May 2020, the MALT Joint Venture chartered
the Marib Spirit to an international trading company for a period
of six months, which is expected to commence in mid-June 2020.
In April 2020, the MALT Joint Venture secured
new charters for the Arwa Spirit and the Methane Spirit for periods
of 12 and eight months, respectively. The new charters are expected
to commence upon completion and in direct continuation of their
existing charters in May and July 2020, respectively.
In March 2020, the Partnership successfully
refinanced its existing $225 million unsecured revolving credit
facility, which was scheduled to mature in November 2020, with a
new two-year facility of the same amount and pricing consistent
with the previous facility of LIBOR + 140 bps.
In December 2018, the board of directors of
Teekay LNG's general partner approved a $100 million common unit
repurchase program. Since that time, the Partnership has
repurchased a total of 3.63 million common units, or approximately
4.6 percent of the outstanding common units immediately prior to
commencement of the program, for a total cost of $44.2 million,
representing an average repurchase price of $12.16 per unit.
Operating Results
The following table highlights certain financial
information for Teekay LNG’s segments: the Liquefied Natural Gas
Segment, the Liquefied Petroleum Gas Segment and until the sale of
our last conventional tanker in October 2019, 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 |
| |
March 31, 2020 |
March 31, 2019 |
| (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 |
132,570 |
|
7,317 |
|
— |
|
139,887 |
|
137,822 |
|
9,160 |
|
2,762 |
|
149,744 |
|
| Income (loss) from vessel
operations |
67,182 |
|
(45,444 |
) |
— |
|
21,738 |
|
72,789 |
|
(2,346 |
) |
(1,082 |
) |
69,361 |
|
| Equity income (loss) |
182 |
|
191 |
|
— |
|
373 |
|
7,493 |
|
(1,915 |
) |
— |
|
5,578 |
|
| NON-GAAP FINANCIAL
COMPARISON |
|
|
|
|
|
|
|
|
| Consolidated adjusted
EBITDA(i) |
101,543 |
|
1,603 |
|
— |
|
103,146 |
|
107,693 |
|
(425 |
) |
(563 |
) |
106,705 |
|
| Adjusted EBITDA from
equity-accounted vessels(i) |
75,970 |
|
9,272 |
|
— |
|
85,242 |
|
43,986 |
|
7,523 |
|
— |
|
51,509 |
|
| Total
adjusted EBITDA(i) |
177,513 |
|
10,875 |
|
— |
|
188,388 |
|
151,679 |
|
7,098 |
|
(563 |
) |
158,214 |
|
(i) These are non-GAAP financial measures.
Please refer to “Definitions and Non-GAAP Financial Measures” and
the Appendices to this release for definitions of these terms and
reconciliations of these non-GAAP financial measures as used in
this release to the most directly comparable financial measures
under GAAP.
Liquefied Natural Gas Segment
Income from vessel operations and consolidated
adjusted EBITDA(1) for the liquefied natural gas segment for the
three months ended March 31, 2020, compared to the same
quarter of the prior year, were negatively impacted primarily by: a
reduction in earnings upon the sales of the WilForce and WilPride
LNG carriers in January 2020; and lower earnings from the Magellan
Spirit upon its redeployment in May 2019 at a lower charter rate.
These decreases were partially offset by the delivery of the Yamal
Spirit in January 2019.
Equity income and adjusted EBITDA from
equity-accounted vessels(1) for the liquefied natural gas segment
for the three months ended March 31, 2020, compared to the
same quarter of the prior year, were positively impacted primarily
by: the deliveries of four ARC7 LNG carrier newbuildings between
June and December 2019 to the Partnership’s 50 percent-owned joint
venture with China LNG Shipping (Holdings) Limited (Yamal LNG Joint
Venture); commencement of terminal use payments in January 2020 to
the Partnership's 30 percent-owned Bahrain LNG Joint Venture; and
higher earnings from the Partnership’s 52 percent-owned MALT Joint
Venture as a result of the one-year charter contracts that were
secured at higher rates for the Arwa Spirit and Marib Spirit in
June and July 2019, respectively. In addition, GAAP equity income
was negatively impacted by higher unrealized losses on
non-designated derivative instruments in the first quarter of 2020
compared to the first quarter of 2019, and unrealized credit loss
provisions recorded in the Partnership's equity-accounted joint
ventures upon adoption of the new accounting standard (ASC 326) on
January 1, 2020.
Liquefied Petroleum Gas Segment
Loss from vessel operations for the liquefied
petroleum gas segment for the three months ended March 31,
2020, compared to the same quarter of the prior year, was
negatively impacted by the write-downs of six multi-gas carriers
primarily due to the lower near-term outlook for these types of
vessels as a result of the current economic environment as well as
receiving notification that the Partnership's commercial management
arrangement with a third-party commercial manager will dissolve in
September 2020. This decrease was partially offset by the improved
results from the Partnership's seven multi-gas carriers as a result
of fewer off-hire days for scheduled dry dockings and repairs
during the first quarter of 2020.
Equity income (loss) and adjusted EBITDA from
equity-accounted vessels(1) for the liquefied petroleum gas segment
for the three months ended March 31, 2020, compared to the
same quarter of the prior year, were positively impacted by higher
LPG charter rates earned and fewer off-hire days in the
Partnership’s 50 percent-owned Exmar LPG Joint Venture.
Conventional Tanker Segment
There were no results from vessel operations for
the conventional tanker segment for the three months ended
March 31, 2020, as the last of the Partnership's conventional
tankers, the Toledo Spirit and Alexander Spirit, were sold in
January and October of 2019, respectively.
(1) These are non-GAAP financial measures.
Please refer to “Definitions and Non-GAAP Financial Measures” and
the Appendices to this release for definitions of these terms and
reconciliations of these non-GAAP financial measures as used in
this release to the most directly comparable financial measures
under GAAP.
Teekay LNG's Fleet
The following table summarizes the Partnership’s
fleet as of May 1, 2020. The Partnership also owns a 30 percent
interest in a regasification terminal in Bahrain.
|
|
Number of Vessels |
| |
Owned and In-Chartered Vessels(i) |
| LNG Carrier
Fleet |
47(ii) |
| LPG/Multi-gas Carrier
Fleet |
30(iii) |
|
Total |
77 |
- Includes vessels leased by the Partnership from third parties
and accounted for as finance leases.
- The Partnership’s ownership interests in these vessels range
from 20 percent to 100 percent.
- The Partnership’s ownership interests in these vessels range
from 50 percent to 100 percent.
Liquidity
As of March 31, 2020, the Partnership had
total liquidity of $372.7 million (comprised of $312.7 million in
cash and cash equivalents and $60.0 million in undrawn credit
facilities), up from $326.4 million of total liquidity as of
December 31, 2019.
Conference Call
The Partnership plans to host a conference call
on Thursday, May 21, 2020 at 1:00 p.m. (ET) to discuss the results
for the first quarter of 2020. All unitholders and interested
parties are invited to listen to the live conference call by
choosing from the following options:
- By dialing 1 (800) 458-4148 or 1 (647) 484-0477, if outside
North America, and quoting conference ID code 8587512.
- 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 First Quarter of 2020 Earnings
Presentation will also be available at www.teekay.com in advance of
the conference call start time.
About Teekay LNG Partners L.P.
Teekay LNG Partners is one of the world's
largest independent owners and operators of LNG carriers, providing
LNG and LPG services primarily under long-term, fee-based charter
contracts through its interests in 47 LNG carriers, 23 mid-size LPG
carriers, and seven multi-gas carriers. The Partnership's ownership
interests in these vessels range from 20 to 100 percent. In
addition, the Partnership owns a 30 percent interest in an LNG
regasification terminal. Teekay LNG Partners is a publicly-traded
master limited partnership formed by Teekay Corporation (NYSE: TK)
as part of its strategy to expand its operations in the LNG and LPG
shipping sectors.
Teekay LNG Partners’ common units and preferred
units trade on the New York Stock Exchange under the symbols “TGP”,
“TGP PR A” and “TGP PR B”, respectively.
For Investor Relationsenquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website: www.teekay.com
Definitions and Non-GAAP Financial Measures
This release includes various financial measures
that are non-GAAP financial measures as defined under the rules of
the SEC. These non-GAAP financial measures which include Adjusted
Net Income Attributable to the Partners and Preferred Unitholders,
Distributable Cash Flow, Total Adjusted Revenues and Adjusted
EBITDA, are intended to provide additional information and should
not be considered substitutes for measures of performance prepared
in accordance with GAAP. In addition, these measures do not have
standardized meanings across companies, and may not be comparable
to similar measures presented by other companies. These non-GAAP
measures are used by management, and the Partnership believes that
these supplementary metrics assist investors and other users of its
financial reports in comparing financial and operating performance
of the Partnership across reporting periods and with other
companies.
Non-GAAP Financial Measures
Total Adjusted Revenues represents the
Partnership's voyage revenues from its consolidated vessels, as
shown in the Partnership's Consolidated Statements of (Loss)
Income, and its proportionate ownership percentage of the voyage
revenues from its equity-accounted joint ventures, as shown in
Appendix E of this release, less the Partnership's proportionate
share of voyage revenues earned directly from its equity-accounted
joint ventures. Please refer to Appendix C and E of this release
for a reconciliation of this non-GAAP financial measure to voyage
revenues and equity income, the most directly comparable GAAP
measures reflected in the Partnership’s consolidated financial
statements. The Partnership's equity-accounted joint ventures are
generally required to distribute all available cash to their
owners. However, the timing and amount of dividends from each of
the Partnership's equity-accounted joint ventures may not
necessarily coincide with the operating cash flow generated from
each respective equity-accounted joint venture. The timing and
amount of dividends distributed by the Partnership's
equity-accounted joint ventures are affected by the timing and
amounts of debt repayments in the joint ventures, capital
requirements of the joint ventures, as well as any cash reserves
maintained in the joint ventures for operations, capital
expenditures and/or as required under financing agreements.
Adjusted EBITDA represents net (loss) income
before interest, taxes, and depreciation and amortization and is
adjusted to exclude certain items whose timing or amount cannot be
reasonably estimated in advance or that are not considered
representative of core operating performance. Such adjustments
include vessel write-downs, unrealized credit loss adjustments,
unrealized gains or losses on derivative instruments, foreign
exchange gains or losses, adjustments for direct financing and
sales-type 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 (loss) income and equity income, respectively, which
are the most directly comparable GAAP measures reflected in the
Partnership’s consolidated financial statements.
Adjusted Net (Loss) Income Attributable to the
Partners and Preferred Unitholders excludes items of income or loss
from GAAP net (loss) 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 (loss) income, and refer to
footnote (3) of the Consolidated Statements of (Loss) Income for a
reconciliation of adjusted equity income to equity income, the most
directly comparable GAAP measure reflected in the Partnership’s
consolidated financial statements.
Distributable Cash Flow (DCF) represents GAAP
net (loss) 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, unrealized
credit loss adjustments, distributions relating to equity financing
of newbuilding installments, distributions relating to preferred
units, adjustments for direct financing and sales-type leases to a
cash basis, unrealized foreign currency exchange gains or losses,
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 (loss) income, the most directly
comparable GAAP measure reflected in the Partnership’s consolidated
financial statements.
Teekay LNG Partners L.P.Consolidated Statements of (Loss)
Income(in thousands of U.S. Dollars, except unit and per unit
data)
|
|
Three Months Ended |
|
|
March 31, |
December 31, |
March 31, |
|
2020 |
2019 |
2019 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
| Voyage
revenues |
139,887 |
|
148,797 |
|
149,744 |
|
| |
|
|
|
| Voyage expenses |
(2,317 |
) |
(4,628 |
) |
(5,775 |
) |
| Vessel operating expenses |
(26,104 |
) |
(30,706 |
) |
(26,101 |
) |
| Time-charter hire expense |
(5,922 |
) |
(5,987 |
) |
(5,591 |
) |
| Depreciation and
amortization |
(32,639 |
) |
(33,053 |
) |
(34,126 |
) |
| General and administrative
expenses |
(6,167 |
) |
(4,829 |
) |
(6,632 |
) |
| Write-down and gain on sales
of vessels(1) |
(45,000 |
) |
14,349 |
|
— |
|
|
Restructuring charges(2) |
— |
|
(339 |
) |
(2,158 |
) |
| Income from vessel
operations |
21,738 |
|
83,604 |
|
69,361 |
|
| |
|
|
|
| Equity income(3) |
373 |
|
30,207 |
|
5,578 |
|
| Interest expense |
(36,704 |
) |
(40,712 |
) |
(42,217 |
) |
| Interest income |
2,370 |
|
922 |
|
1,078 |
|
| Realized and unrealized (loss)
gain on non-designated derivative instruments(4) |
(20,471 |
) |
4,352 |
|
(6,617 |
) |
| Foreign currency exchange gain
(loss)(5) |
4,739 |
|
(4,545 |
) |
(731 |
) |
| Other (expense) income |
(361 |
) |
(1,767 |
) |
251 |
|
|
Net (loss) income before income tax expense |
(28,316 |
) |
72,061 |
|
26,703 |
|
| Income tax expense |
(2,512 |
) |
(985 |
) |
(2,578 |
) |
|
Net (loss) income |
(30,828 |
) |
71,076 |
|
24,125 |
|
| |
|
|
|
| Non-controlling interest in
net income |
2,166 |
|
3,706 |
|
2,508 |
|
| Preferred unitholders'
interest in net income |
6,425 |
|
6,426 |
|
6,425 |
|
| General partner's interest in
net (loss) income |
(789 |
) |
1,218 |
|
304 |
|
| Limited partners’ interest in
net (loss) income |
(38,630 |
) |
59,726 |
|
14,888 |
|
| Limited partners'
interest in net (loss) income per common unit: |
|
|
|
| • Basic |
(0.50 |
) |
0.77 |
|
0.19 |
|
| • Diluted |
(0.50 |
) |
0.77 |
|
0.19 |
|
| Weighted-average number of
common units outstanding: |
|
|
|
| • Basic |
77,071,647 |
|
77,509,379 |
|
78,598,678 |
|
| • Diluted |
77,071,647 |
|
77,615,829 |
|
78,680,661 |
|
| Total
number of common units outstanding at end of period |
76,171,639 |
|
77,509,339 |
|
78,626,403 |
|
(1) For the three months ended March 31, 2020,
the Partnership wrote-down six wholly-owned multi-gas carriers (the
Pan Spirit, Unikum Spirit, Vision Spirit, Camilla Spirit, Sonoma
Spirit and Cathinka Spirit) to their estimated fair values. The
total impairment charge of $45.0 million related to these six
multi-gas carriers is included in write-down and gain on sales of
vessels for the three months ended March 31, 2020. In December
2019, the Partnership recognized a gain of $14.3 million for the
three months ended December 31, 2019 on derecognition of two LNG
carriers on charter to Awilco LNG ASA (or Awilco) as they were
reclassified as sales-type leases upon Awilco obtaining credit
approval for a financing facility that provided the funds necessary
for Awilco to fulfill its vessel repurchase obligations to the
Partnership in January 2020.
(2) For the three months ended December 31,
2019, the Partnership incurred restructuring charges of $0.3
million from subsidiaries of Teekay Corporation attributable to
employees that previously supported the Partnership. In January
2019, the Toledo Spirit was sold and as a result of the sale, the
Partnership recorded a restructuring charge of $2.2 million for the
three months ended March 31, 2019, relating to seafarer severance
costs.
(3) The Partnership’s proportionate share of
items within equity income as identified in Appendix A of this
release is detailed in the table below. By excluding these items
from equity income, the Partnership believes the resulting adjusted
equity income is a normalized amount that can be used to better
evaluate the financial performance of the Partnership’s
equity-accounted investments. Adjusted equity income is a non-GAAP
financial measure.
|
|
Three Months Ended |
|
|
March 31, |
December 31, |
March 31, |
| |
2020 |
2019 |
2019 |
| Equity income |
373 |
|
30,207 |
|
5,578 |
|
| Proportionate share of
unrealized loss (gain) on non-designated interest rate swaps |
22,204 |
|
(6,271 |
) |
4,360 |
|
| Proportionate share of
unrealized credit loss provision(a) |
8,980 |
|
— |
|
— |
|
|
Proportionate share of other items |
(539 |
) |
1,436 |
|
345 |
|
| Equity
income adjusted for items in Appendix A |
31,018 |
|
25,372 |
|
10,283 |
|
(a) Adoption of new accounting standard ASC 326
on January 1, 2020.
(4) The realized losses 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 |
| |
March 31, |
December 31, |
March 31, |
| |
2020 |
2019 |
2019 |
| Realized losses
relating to: |
|
|
|
| Interest rate swap
agreements |
(2,911 |
) |
(2,683 |
) |
(2,385 |
) |
| Foreign currency forward
contracts |
(241 |
) |
(147 |
) |
— |
|
|
|
(3,152 |
) |
(2,830 |
) |
(2,385 |
) |
| Unrealized (losses)
gains relating to: |
|
|
|
| Interest rate swap
agreements |
(17,521 |
) |
6,849 |
|
(4,192 |
) |
| Foreign currency forward
contracts |
202 |
|
333 |
|
— |
|
| Toledo Spirit time-charter
derivative contract |
— |
|
— |
|
(40 |
) |
|
|
(17,319 |
) |
7,182 |
|
(4,232 |
) |
|
Total realized and unrealized (losses) gains on non-designated
derivative instruments |
(20,471 |
) |
4,352 |
|
(6,617 |
) |
(5) For accounting purposes, the Partnership is
required to revalue all foreign currency-denominated monetary
assets and liabilities based on the prevailing exchange rates at
the end of each reporting period. This revaluation does not affect
the Partnership’s cash flows or the calculation of distributable
cash flow, but results in the recognition of unrealized foreign
currency translation gains or losses in the Consolidated Statements
of (Loss) Income.
Foreign currency exchange gain (loss) 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 Krone (NOK) denominated unsecured bonds.
Foreign currency exchange gain (loss) also includes unrealized
(losses) gains relating to the change in fair value of such
derivative instruments and unrealized gains (losses) on the
revaluation of the NOK bonds as detailed in the table below:
| |
Three Months Ended |
| |
March 31, |
December 31, |
March 31, |
| |
2020 |
2019 |
2019 |
| Realized losses on
cross-currency swaps |
(1,817 |
) |
(1,109 |
) |
(1,434 |
) |
| Unrealized (losses) gains on
cross currency swaps |
(49,540 |
) |
12,579 |
|
(1,920 |
) |
|
Unrealized gains (losses) on revaluation of NOK bonds |
53,973 |
|
(11,877 |
) |
(579 |
) |
Teekay LNG Partners L.P.Consolidated Balance Sheets(in thousands
of U.S. Dollars)
|
|
As at March
31, |
As
atDecember 31, |
|
|
2020 |
2019 |
| |
(unaudited) |
(unaudited) |
| ASSETS |
|
|
| Current |
|
|
| Cash and cash equivalents |
312,710 |
|
160,221 |
|
| Restricted cash – current |
37,032 |
|
53,689 |
|
| Accounts receivable |
10,592 |
|
13,460 |
|
| Prepaid expenses |
7,780 |
|
6,796 |
|
| Current portion of derivative
assets |
— |
|
355 |
|
| Current portion of net
investments in direct financing and sale-type leases |
13,740 |
|
273,986 |
|
| Advances to affiliates |
5,474 |
|
5,143 |
|
| Other current assets |
237 |
|
238 |
|
|
Total current assets |
387,565 |
|
513,888 |
|
| |
|
|
| Restricted cash –
long-term |
76,496 |
|
39,381 |
|
| |
|
|
| Vessels and
equipment |
|
|
| At cost, less accumulated
depreciation |
1,272,433 |
|
1,335,397 |
|
| Vessels related to finance
leases, at cost, less accumulated depreciation |
1,686,634 |
|
1,691,945 |
|
| Operating lease right-of-use
asset |
30,882 |
|
34,157 |
|
|
Total vessels and equipment |
2,989,949 |
|
3,061,499 |
|
| Investments in and advances to
equity-accounted joint ventures |
1,065,389 |
|
1,155,316 |
|
| Net investments in direct
financing and sales-type leases |
529,943 |
|
544,823 |
|
| Other assets |
16,169 |
|
14,738 |
|
| Derivative assets |
— |
|
1,834 |
|
| Intangible assets – net |
41,152 |
|
43,366 |
|
| Goodwill |
34,841 |
|
34,841 |
|
|
Total assets |
5,141,504 |
|
5,409,686 |
|
| |
|
|
| LIABILITIES AND
EQUITY |
|
|
| Current |
|
|
| Accounts payable |
1,633 |
|
5,094 |
|
| Accrued liabilities |
76,796 |
|
76,752 |
|
| Unearned revenue |
25,832 |
|
28,759 |
|
| Current portion of long-term
debt |
328,384 |
|
393,065 |
|
| Current obligations related to
finance leases |
70,455 |
|
69,982 |
|
| Current portion of operating
lease liabilities |
13,524 |
|
13,407 |
|
| Current portion of derivative
liabilities |
66,852 |
|
38,458 |
|
| Advances from affiliates |
8,372 |
|
7,003 |
|
|
Total current liabilities |
591,848 |
|
632,520 |
|
| Long-term debt |
1,356,766 |
|
1,438,331 |
|
| Long-term obligations related
to finance leases |
1,323,069 |
|
1,340,922 |
|
| Long-term operating lease
liabilities |
17,357 |
|
20,750 |
|
| Derivative liabilities |
96,453 |
|
51,006 |
|
| Other long-term
liabilities |
53,460 |
|
49,182 |
|
|
Total liabilities |
3,438,953 |
|
3,532,711 |
|
| Equity |
|
|
| Limited partners – common
units |
1,425,960 |
|
1,543,598 |
|
| Limited partners – preferred
units |
285,159 |
|
285,159 |
|
| General partner |
47,839 |
|
50,241 |
|
|
Accumulated other comprehensive loss |
(108,457 |
) |
(57,312 |
) |
| Partners' equity |
1,650,501 |
|
1,821,686 |
|
|
Non-controlling interest |
52,050 |
|
55,289 |
|
| Total
equity |
1,702,551 |
|
1,876,975 |
|
|
Total liabilities and total equity |
5,141,504 |
|
5,409,686 |
|
Teekay LNG Partners L.P.Consolidated Statements of Cash Flows(in
thousands of U.S. Dollars)
| |
Three Months Ended |
| |
March 31, |
March 31, |
|
|
2020 |
2019 |
|
|
(unaudited) |
(unaudited) |
| Cash, cash equivalents and
restricted cash provided by (used for) |
|
|
| OPERATING
ACTIVITIES |
|
|
| Net (loss)
income |
(30,828 |
) |
24,125 |
|
| Non-cash and non-operating
items: |
|
|
|
Unrealized loss on non-designated derivative instruments |
17,319 |
|
4,232 |
|
|
Depreciation and amortization |
32,639 |
|
34,126 |
|
|
Write-down of vessels |
45,000 |
|
— |
|
|
Unrealized foreign currency exchange gain |
(6,931 |
) |
(1,767 |
) |
|
Equity income, net of dividends received $6,500 (2019 –
$7,008) |
6,127 |
|
1,430 |
|
|
Amortization of deferred financing issuance costs included in
interest expense |
1,534 |
|
3,731 |
|
|
Other non-cash items |
1,487 |
|
6,223 |
|
| Change in non-cash operating
assets and liabilities |
(495 |
) |
(17,596 |
) |
| Receipts from direct financing
and sales-type leases |
264,072 |
|
3,025 |
|
|
Expenditures for dry docking |
(1,191 |
) |
(4,279 |
) |
|
Net operating cash flow |
328,733 |
|
53,250 |
|
| FINANCING
ACTIVITIES |
|
|
| Proceeds from issuance of
long-term debt |
384,149 |
|
108,551 |
|
| Scheduled repayments of
long-term debt |
(27,785 |
) |
(29,476 |
) |
| Prepayments of long-term
debt |
(445,047 |
) |
(140,787 |
) |
| Financing issuance costs |
(2,601 |
) |
(903 |
) |
| Proceeds from financing
related to sales and leaseback of vessels |
— |
|
158,680 |
|
| Scheduled repayments of
obligations related to finance leases |
(17,380 |
) |
(17,664 |
) |
| Repurchase of common
units |
(15,635 |
) |
(9,497 |
) |
| Cash distributions paid |
(21,438 |
) |
(17,646 |
) |
| Acquisition of non-controlling
interest in certain of the Partnership's subsidiaries |
(2,219 |
) |
— |
|
|
Dividends paid to non-controlling interest |
— |
|
(20 |
) |
|
Net financing cash flow |
(147,956 |
) |
51,238 |
|
| INVESTING
ACTIVITIES |
|
|
| Expenditures for vessels and
equipment |
(7,830 |
) |
(123,884 |
) |
| Capital contributions and
advances to equity-accounted joint ventures |
— |
|
(2,864 |
) |
|
Net investing cash flow |
(7,830 |
) |
(126,748 |
) |
| |
|
|
| Increase (decrease) in
cash, cash equivalents and restricted cash |
172,947 |
|
(22,260 |
) |
| Cash,
cash equivalents and restricted cash, beginning of the period |
253,291 |
|
222,864 |
|
|
Cash, cash equivalents and restricted cash, end of the
period |
426,238 |
|
200,604 |
|
Teekay LNG Partners L.P.Appendix A - Reconciliation of Non-GAAP
Financial MeasuresAdjusted Net Income(in thousands of U.S.
Dollars)
|
|
Three Months Ended |
|
March 31, |
|
2020 |
2019 |
|
(unaudited) |
(unaudited) |
| Net (loss) income – GAAP
basis |
(30,828 |
) |
24,125 |
|
| Less: net income attributable
to non-controlling interests |
(2,166 |
) |
(2,508 |
) |
|
Net (loss) income attributable to the partners and
preferred unitholders |
(32,994 |
) |
21,617 |
|
| Add (subtract) specific items
affecting net income: |
|
|
|
Write-down of vessels(1) |
45,000 |
|
— |
|
|
Restructuring charges(2) |
— |
|
2,158 |
|
|
Foreign currency exchange gain(3) |
(6,556 |
) |
(876 |
) |
|
Unrealized losses on non-designated derivative instruments and
other items from equity-accounted investees(4) |
30,645 |
|
4,705 |
|
|
Unrealized losses on non-designated derivative instruments(5) |
17,319 |
|
4,232 |
|
|
Other items |
(100 |
) |
1,998 |
|
|
Non-controlling interests’ share of items above(6) |
(1,078 |
) |
(469 |
) |
|
Total adjustments |
85,230 |
|
11,748 |
|
|
Adjusted net income attributable to the partners and
preferred unitholders |
52,236 |
|
33,365 |
|
|
|
|
|
| Preferred unitholders'
interest in adjusted net income |
6,425 |
|
6,425 |
|
| General partner's interest in
adjusted net income |
916 |
|
539 |
|
| Limited partners’ interest in
adjusted net income |
44,895 |
|
26,401 |
|
| Limited partners’ interest in
adjusted net income per common unit, basic |
0.58 |
|
0.34 |
|
| Weighted-average number of
common units outstanding, basic |
77,071,647 |
|
78,598,678 |
|
- See Note 1 to the Consolidated Statements of (Loss) Income
included in this release for further details.
- See Note 2 to the Consolidated Statements of (Loss) Income
included in this release for further details.
- Foreign currency exchange 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 on
the cross currency swaps economically hedging the Partnership’s NOK
bonds. This amount excludes the realized losses relating to the
cross currency swaps for the NOK bonds. See Note 5 to the
Consolidated Statements of (Loss) Income included in this release
for further details.
- Reflects the proportionate share of unrealized credit loss
provision and unrealized losses due to changes in the
mark-to-market value of derivative instruments that are not
designated as hedges for accounting purposes in the Partnership's
equity-accounted investees. See Note 3 to the Consolidated
Statements of (Loss) Income included in this release for further
details.
- Reflects the unrealized losses due to changes in the
mark-to-market value of derivative instruments that are not
designated as hedges for accounting purposes. See Note 4 to the
Consolidated Statements of (Loss) Income included in this release
for further details.
- Items affecting net (loss) income include items from the
Partnership’s consolidated non-wholly-owned subsidiaries. The
specific items affecting net (loss) 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 (loss) 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 |
|
March 31, |
|
2020 |
2019 |
|
(unaudited) |
(unaudited) |
| |
|
|
|
| Net (loss)
income |
(30,828 |
) |
24,125 |
|
| Add: |
|
|
|
Write-down of vessels |
45,000 |
|
— |
|
|
Partnership’s share of equity-accounted joint ventures' DCF net of
estimated maintenance capital expenditures(1) |
39,542 |
|
18,748 |
|
|
Depreciation and amortization |
32,639 |
|
34,126 |
|
|
Unrealized loss on non-designated derivative instruments |
17,319 |
|
4,232 |
|
|
Direct finance and sale-type lease payments received in excess of
revenue recognized and other adjustments |
3,769 |
|
3,218 |
|
|
Distributions relating to equity financing of newbuildings |
— |
|
1,193 |
|
|
Deferred income tax and other non-cash items |
998 |
|
3,765 |
|
| Subtract: |
|
|
|
Equity income |
(373 |
) |
(5,578 |
) |
|
Distributions relating to preferred units |
(6,425 |
) |
(6,425 |
) |
|
Foreign currency exchange gain |
(6,556 |
) |
(876 |
) |
|
Estimated maintenance capital expenditures |
(14,657 |
) |
(17,034 |
) |
|
Distributable Cash Flow before non-controlling
interest |
80,428 |
|
59,494 |
|
|
Non-controlling interests’ share of DCF before estimated
maintenance capital expenditures |
(5,551 |
) |
(5,280 |
) |
|
Distributable Cash Flow |
74,877 |
|
54,214 |
|
| Amount
of cash distributions attributable to the General Partner |
(389 |
) |
(305 |
) |
| Limited
partners' Distributable Cash Flow |
74,488 |
|
53,909 |
|
|
Weighted-average number of common units outstanding, basic |
77,071,647 |
|
78,598,678 |
|
|
Distributable Cash Flow per limited partner common
unit |
0.97 |
|
0.69 |
|
(1) The estimated maintenance capital
expenditures relating to the Partnership’s share of
equity-accounted joint ventures were $15.2 million and $11.0
million for the three months ended March 31, 2020 and 2019,
respectively.
Teekay LNG Partners L.P.Appendix C - Reconciliation of Non-GAAP
Financial MeasuresTotal Adjusted Revenues and Total Adjusted
EBITDA(in thousands of U.S. Dollars)
| |
Three Months Ended |
|
March 31, |
|
2020 |
2019 |
|
(unaudited) |
(unaudited) |
| Voyage revenues |
139,887 |
|
149,744 |
|
| Partnership's proportionate
share of voyage revenues from its equity-accounted joint
ventures (See Appendix E) |
110,136 |
|
72,731 |
|
| Less
the Partnership’s proportionate share of voyage revenues earned
directly from its equity-accounted joint ventures |
(5,755 |
) |
(5,476 |
) |
|
Total adjusted revenues |
244,268 |
|
216,999 |
|
| |
Three Months Ended |
|
March 31, |
|
2020 |
2019 |
|
(unaudited) |
(unaudited) |
| Net (loss)
income |
(30,828 |
) |
24,125 |
|
|
Depreciation and amortization |
32,639 |
|
34,126 |
|
|
Interest expense, net of interest income |
34,334 |
|
41,139 |
|
|
Income tax expense |
2,512 |
|
2,578 |
|
| EBITDA |
38,657 |
|
101,968 |
|
|
|
|
|
| Add (subtract) specific income
statement items affecting EBITDA: |
|
|
|
Foreign currency exchange (gain) loss |
(4,739 |
) |
731 |
|
|
Other expense (income) – net |
361 |
|
(251 |
) |
|
Equity income |
(373 |
) |
(5,578 |
) |
|
Realized and unrealized loss on derivative instruments |
20,471 |
|
6,617 |
|
|
Write-down of vessels |
45,000 |
|
— |
|
|
Direct finance and sale-type lease payments received in excess of
revenue recognized and other adjustments |
3,769 |
|
3,218 |
|
| Consolidated adjusted
EBITDA |
103,146 |
|
106,705 |
|
|
Adjusted EBITDA from equity-accounted vessels (See Appendix E) |
85,242 |
|
51,509 |
|
|
Total adjusted EBITDA |
188,388 |
|
158,214 |
|
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 March 31, 2020 |
|
|
(unaudited) |
| |
Liquefied Natural Gas Segment |
Liquefied Petroleum Gas Segment |
Conventional Tanker Segment |
Total |
|
Voyage revenues |
132,570 |
|
7,317 |
|
— |
|
139,887 |
|
| Voyage expenses |
(1,029 |
) |
(1,288 |
) |
— |
|
(2,317 |
) |
| Vessel operating expenses |
(22,092 |
) |
(4,012 |
) |
— |
|
(26,104 |
) |
| Time-charter hire expense |
(5,922 |
) |
— |
|
— |
|
(5,922 |
) |
| Depreciation and
amortization |
(30,592 |
) |
(2,047 |
) |
— |
|
(32,639 |
) |
| General and administrative
expenses |
(5,753 |
) |
(414 |
) |
— |
|
(6,167 |
) |
| Write-down of vessels |
— |
|
(45,000 |
) |
— |
|
(45,000 |
) |
|
Income (loss) from vessel operations |
67,182 |
|
(45,444 |
) |
— |
|
21,738 |
|
| Depreciation and
amortization |
30,592 |
|
2,047 |
|
— |
|
32,639 |
|
| Write-down of vessels |
— |
|
45,000 |
|
— |
|
45,000 |
|
| Direct finance and sales-type
lease payments received in excess of revenue recognized and other
adjustments |
3,769 |
|
— |
|
— |
|
3,769 |
|
|
Consolidated adjusted EBITDA |
101,543 |
|
1,603 |
|
— |
|
103,146 |
|
| |
|
|
|
|
|
|
Three Months Ended March 31, 2019 |
|
|
(unaudited) |
| |
Liquefied Natural Gas Segment |
Liquefied Petroleum Gas Segment |
Conventional Tanker Segment |
Total |
| Voyage revenues |
137,822 |
|
9,160 |
|
2,762 |
|
149,744 |
|
| Voyage (expenses)
recoveries |
(1,238 |
) |
(4,670 |
) |
133 |
|
(5,775 |
) |
| Vessel operating expenses |
(20,555 |
) |
(4,352 |
) |
(1,194 |
) |
(26,101 |
) |
| Time-charter hire expense |
(5,591 |
) |
— |
|
— |
|
(5,591 |
) |
| Depreciation and
amortization |
(31,686 |
) |
(1,921 |
) |
(519 |
) |
(34,126 |
) |
| General and administrative
expenses |
(5,963 |
) |
(563 |
) |
(106 |
) |
(6,632 |
) |
|
Restructuring charges |
— |
|
— |
|
(2,158 |
) |
(2,158 |
) |
| Income (loss) from vessel
operations |
72,789 |
|
(2,346 |
) |
(1,082 |
) |
69,361 |
|
| Depreciation and
amortization |
31,686 |
|
1,921 |
|
519 |
|
34,126 |
|
| Direct finance and sales-type
lease payments received in excess of revenue recognized and other
adjustments |
3,218 |
|
— |
|
— |
|
3,218 |
|
|
Consolidated adjusted EBITDA |
107,693 |
|
(425 |
) |
(563 |
) |
106,705 |
|
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 |
| |
March 31, 2020 |
March 31, 2019 |
|
|
(unaudited) |
(unaudited) |
|
|
At |
Partnership's |
At |
Partnership's |
|
100% |
Portion(1) |
100% |
Portion(1) |
| Voyage revenues |
254,652 |
|
110,136 |
|
170,251 |
|
72,731 |
|
| Voyage expenses |
(2,815 |
) |
(1,354 |
) |
(2,880 |
) |
(1,447 |
) |
| Vessel operating expenses,
time-charter hire expenses and general and administrative
expenses |
(70,876 |
) |
(31,629 |
) |
(54,387 |
) |
(23,972 |
) |
| Depreciation and
amortization |
(25,613 |
) |
(12,965 |
) |
(28,640 |
) |
(13,785 |
) |
|
Income from vessel operations of equity-accounted vessels |
155,348 |
|
64,188 |
|
84,344 |
|
33,527 |
|
| Net interest expense |
(76,058 |
) |
(30,493 |
) |
(53,146 |
) |
(21,278 |
) |
| Income tax expense |
(598 |
) |
(299 |
) |
(2,781 |
) |
(1,051 |
) |
| Other items including realized
and unrealized losses on derivative instruments and unrealized
credit loss provision(2) |
(102,927 |
) |
(33,023 |
) |
(16,906 |
) |
(5,620 |
) |
|
Net (loss) income / equity income of equity-accounted vessels |
(24,235 |
) |
373 |
|
11,511 |
|
5,578 |
|
|
Net (loss) income / equity income of equity-accounted LNG
vessels |
(24,777 |
) |
182 |
|
15,183 |
|
7,493 |
|
| Net
income (loss) / equity income (loss) of equity-accounted LPG
vessels |
542 |
|
191 |
|
(3,672 |
) |
(1,915 |
) |
| |
|
|
|
|
| Net (loss) income / equity
income of equity-accounted vessels |
(24,235 |
) |
373 |
|
11,511 |
|
5,578 |
|
|
Depreciation and amortization |
25,613 |
|
12,965 |
|
28,640 |
|
13,785 |
|
|
Net interest expense |
76,058 |
|
30,493 |
|
53,146 |
|
21,278 |
|
|
Income tax expense |
598 |
|
299 |
|
2,781 |
|
1,051 |
|
| EBITDA from equity-accounted
vessels |
78,034 |
|
44,130 |
|
96,078 |
|
41,692 |
|
| |
|
|
|
|
| Add (subtract) specific income
statement items affecting EBITDA: |
|
|
|
|
|
Other items including realized and unrealized losses on derivative
instruments and unrealized credit loss provision(2) |
102,927 |
|
33,023 |
|
16,906 |
|
5,620 |
|
|
Direct finance and sale-type lease payments received in excess of
revenue recognized |
24,976 |
|
9,024 |
|
14,689 |
|
5,133 |
|
|
Amortization of in-process contracts |
(1,718 |
) |
(935 |
) |
(1,722 |
) |
(936 |
) |
|
Adjusted EBITDA from equity-accounted vessels |
204,219 |
|
85,242 |
|
125,951 |
|
51,509 |
|
| Adjusted EBITDA from
equity-accounted LNG vessels |
185,672 |
|
75,970 |
|
110,902 |
|
43,986 |
|
|
Adjusted EBITDA from equity-accounted LPG vessels |
18,547 |
|
9,272 |
|
15,049 |
|
7,523 |
|
- The Partnership's equity-accounted vessels for the three months
ended March 31, 2020 and 2019 include: the Partnership’s 40
percent ownership interest in Teekay Nakilat (III) Corporation,
which owns four LNG carriers; the Partnership’s 50 percent
ownership interest in the Partnership’s joint venture with Exmar NV
(the Excalibur Joint Venture), which owns one LNG carrier; the
Partnership’s 33 percent ownership interest in four LNG carriers
servicing the Angola LNG project; the Partnership’s 52 percent
ownership interest in the MALT Joint Venture, which owns six LNG
carriers; the Partnership’s 50 percent ownership interest in Exmar
LPG BVBA, which owns and in-charters 23 LPG carriers as at
March 31, 2020, compared to 22 owned and in-chartered LPG
carriers as at March 31, 2019; the Partnership’s ownership
interest ranging from 20 to 30 percent in four LNG carriers as at
March 31, 2020 chartered to Shell (the Pan Union Joint
Venture); the Partnership’s 50 percent ownership interest in six
ARC7 LNG carriers in the Yamal LNG Joint Venture as at
March 31, 2020, compared to two ARC7 LNG carriers and four
ARC7 LNG carrier newbuildings as at March 31, 2019; and the
Partnership's 30 percent ownership interest in the Bahrain LNG
Joint Venture, which owns an LNG receiving and regasification
terminal in Bahrain.
- Unrealized credit losses were recorded for the three months
ended March 31, 2020 upon the adoption of the new accounting
standard ASC 326 on January 1, 2020.
Teekay LNG Partners L.P.Appendix F - Summarized Financial
Information of Equity-Accounted Joint Ventures(in thousands of U.S.
Dollars)
| |
As at March 31, 2020 |
As at December 31, 2019 |
| |
(unaudited) |
(unaudited) |
| |
At |
Partnership's |
At |
Partnership's |
|
100% |
Portion(1) |
100% |
Portion(1) |
| Cash and restricted cash,
current and non-current |
578,101 |
|
241,122 |
|
509,065 |
|
210,736 |
|
| Other current assets |
69,416 |
|
28,938 |
|
62,566 |
|
27,719 |
|
| Property, plant and equipment,
including owned vessels, vessels related to finance leases and
operating lease right-of-use assets |
2,044,990 |
|
1,044,317 |
|
3,112,349 |
|
1,375,570 |
|
| Net investments in sales-type
and direct financing leases, current and non-current |
5,484,835 |
|
2,116,196 |
|
4,589,139 |
|
1,856,709 |
|
| Other
non-current assets |
67,372 |
|
44,542 |
|
50,967 |
|
41,015 |
|
| Total
assets |
8,244,714 |
|
3,475,115 |
|
8,324,086 |
|
3,511,749 |
|
| |
|
|
|
|
| Current portion of long-term
debt and obligations related to finance leases and operating
leases |
317,747 |
|
136,396 |
|
315,247 |
|
136,573 |
|
| Current portion of derivative
liabilities |
49,708 |
|
19,563 |
|
34,618 |
|
13,658 |
|
| Other current liabilities |
166,387 |
|
71,309 |
|
153,816 |
|
66,224 |
|
| Long-term debt and obligations
related to finance leases and operating leases |
4,970,226 |
|
2,018,174 |
|
5,026,123 |
|
2,041,595 |
|
| Shareholders' loans, current
and non-current |
346,969 |
|
127,312 |
|
346,969 |
|
126,546 |
|
| Derivative liabilities |
315,023 |
|
127,703 |
|
162,640 |
|
66,060 |
|
| Other long-term
liabilities |
66,653 |
|
32,867 |
|
64,196 |
|
32,323 |
|
| Equity |
2,012,001 |
|
941,791 |
|
2,220,477 |
|
1,028,770 |
|
|
Total liabilities and equity |
8,244,714 |
|
3,475,115 |
|
8,324,086 |
|
3,511,749 |
|
| |
|
|
|
|
| Investments in
equity-accounted joint ventures |
|
941,791 |
|
|
1,028,770 |
|
| Advances to equity-accounted
joint ventures |
|
127,312 |
|
|
126,546 |
|
| Credit
loss provision(2) |
|
(3,714 |
) |
|
— |
|
|
Investments in and advances to equity-accounted joint ventures |
|
1,065,389 |
|
|
1,155,316 |
|
- The Partnership's equity-accounted vessels as at March 31,
2020 and December 31, 2019 include: the Partnership’s 40 percent
ownership interest in Teekay Nakilat (III) Corporation, which owns
four LNG carriers; the Partnership’s 50 percent ownership interests
in the Excalibur Joint Venture, which owns one LNG carrier; the
Partnership’s 33 percent ownership interest in four LNG carriers
servicing the Angola LNG project; the Partnership’s 52 percent
ownership interest in the MALT Joint Venture, which owns six LNG
carriers; the Partnership’s 50 percent ownership interest in Exmar
LPG BVBA, which owns and in-charters 23 LPG carriers; the
Partnership’s ownership interest ranging from 20 percent to 30
percent in four LNG carriers as at March 31, 2020 chartered to
Shell in the Pan Union Joint Venture; the Partnership’s 50 percent
ownership interest in six ARC7 LNG carriers in the Yamal LNG Joint
Venture; and the Partnership's 30 percent ownership interest in the
Bahrain LNG Joint Venture, which owns an LNG receiving and
regasification terminal in Bahrain.
- Unrealized credit losses were recorded as at March 31, 2020
upon the adoption of the new accounting standard ASC 326 on January
1, 2020.
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 impact of COVID-19 and related
global events on the Partnership's operations and cash flows; the
Partnership’s ability to achieve previously disclosed adjusted net
income guidance figures for the year-ending December 31, 2020;
expectations on future allocation of capital towards balance sheet
deleveraging and returning capital to unitholders; the ability to
continue to pay increased distributions on its common units;
expected charter commencement dates; and the Partnership's
positioning to meet its upcoming debt maturities. The following
factors are among those that could cause actual results to differ
materially from the forward-looking statements, which involve risks
and uncertainties, and that should be considered in evaluating any
such statement: changes in production of LNG or LPG, either
generally or in particular regions; changes in trading patterns or
timing of start-up of new LNG liquefaction and regasification
projects significantly affecting overall vessel tonnage
requirements; changes in applicable industry laws and regulations
and the timing of implementation of new laws and regulations; the
potential for early termination of long-term contracts of existing
vessels in the Partnership's fleet; higher than expected costs and
expenses, including as a result of off-hire days or dry-docking
requirements; general market conditions and trends, including spot,
multi-month and multi-year charter rates; inability of customers of
the Partnership or any of its joint ventures to make future
payments under contracts; potential further delays to the formal
commencement of commercial operations of the Bahrain Regasification
Terminal; the inability of the Partnership to renew or replace
long-term contracts on existing vessels; potential lack of cash
flow to reduce balance sheet leverage or of excess capital
available to allocate towards returning capital to unitholders; and
other factors discussed in Teekay LNG Partners’ filings from time
to time with the SEC, including its Report on Form 20-F for the
fiscal year ended December 31, 2019. The Partnership expressly
disclaims any obligation to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the Partnership’s expectations with respect
thereto or any change in events, conditions or circumstances on
which any such statement is based.
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