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 June 30, 2020.
Consolidated Financial
Summary
|
Three Months Ended |
|
June 30, 2020 |
March 31, 2020 |
June 30, 2019 |
(in thousands of U.S.
Dollars, except per unit data) |
(unaudited) |
(unaudited) |
(unaudited) |
GAAP FINANCIAL COMPARISON |
|
|
|
Voyage revenues |
148,205 |
|
139,887 |
|
153,060 |
|
Income from vessel
operations |
69,589 |
|
21,738 |
|
74,677 |
|
Equity income |
32,155 |
|
373 |
|
1,738 |
|
Net income (loss) attributable
to the partners and preferred unitholders |
44,934 |
|
(32,994 |
) |
16,435 |
|
Limited partners’ interest in
net income per common unit |
0.46 |
|
(0.50 |
) |
0.12 |
|
NON-GAAP FINANCIAL
COMPARISON |
|
|
|
Total adjusted
revenues(1) |
254,001 |
|
244,268 |
|
221,926 |
|
Total adjusted EBITDA(1) |
192,340 |
|
188,388 |
|
162,069 |
|
Distributable cash flow
(DCF)(1) |
83,170 |
|
74,877 |
|
56,330 |
|
Adjusted net income
attributable to the partners and preferred unitholders(1) |
62,643 |
|
52,236 |
|
34,435 |
|
Limited
partners’ interest in adjusted net income per common unit |
0.67 |
|
0.58 |
|
0.35 |
|
(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 previously
provided 2020 Guidance Range for Earnings per unit has been
recalibrated to account for the timing of the issuance of new units
to Teekay Corporation in exchange for eliminating its Incentive
Distribution Rights.
Second Quarter of 2020 Compared to
Second Quarter of 2019
GAAP net income and non-GAAP adjusted net income
attributable to the partners and preferred unitholders were
positively impacted for the three months ended June 30, 2020,
compared to the same quarter of the prior year, by: earnings from
six liquefied natural gas (LNG) carrier newbuildings which
delivered into the Partnership’s consolidated fleet and
equity-accounted joint ventures last year; fewer dry docking and
repair off-hire days; and higher earnings by certain of the
Partnership's joint ventures as their individual projects commenced
or certain of their vessels commenced charters at, or earned,
higher rates. These increases were partially offset by a reduction
in earnings upon the sales of two LNG carriers in January 2020, and
an oil tanker in October 2019.
Second Quarter of 2020 Compared to First
Quarter of 2020
GAAP net income and non-GAAP adjusted net income
attributable to the partners and preferred unitholders were
positively impacted for the three months ended June 30, 2020,
compared to the three months ended March 31, 2020, by a reduction
in operational performance claims; higher earnings in one of the
Partnership's joint ventures due to higher LPG rates; and a
decrease in income tax expense. These decreases were partially
offset by an increase in vessel operating expenses due to the
timing of repairs and maintenance and an increase in general and
administrative expenses due to additional professional fees
incurred in the second quarter of 2020. In addition, GAAP net
income was higher in the second quarter of 2020 as a result of a
write-down recorded in the first quarter of 2020 and decreases in
unrealized losses on non-designated derivative instruments and
credit loss provision adjustments in the second quarter of 2020,
including within the Partnership's equity-accounted joint ventures.
These increases were partially offset by unrealized foreign
currency exchange losses incurred in the second quarter of 2020 as
compared to gains in the first quarter of 2020.
CEO Commentary
“We are pleased to report that this was another
record quarter for Teekay LNG,” commented Mark Kremin, President
and Chief Executive Officer of Teekay Gas Group Ltd. “While
COVID-19 continues to have an unprecedented impact on the world and
is a major focus for us, we have been able to fully service our
charter contracts and have continued to receive contracted cash
flows from our high quality customers. As a result of the pandemic,
the overall maritime industry has experienced significant
challenges related to crew changes, but I am pleased to report that
we have safely changed-out a number of crew members on all of our
vessels. We continue to work hard with both the industry and
inter-governmental organizations to tackle this challenge and bring
our remaining overdue colleagues home safely as soon as possible. I
am truly proud of how our seafarers and onshore colleagues have
responded to ensure safe and successful transitions with no
reported COVID-19 cases, while providing uninterrupted service to
our customers.”
Mr. Kremin continued, “Following the completion
of our growth program late last year, our focus has been primarily
on delevering our balance sheet, which also reduces interest costs,
and maximizing our fleet utilization, which provides us with
stable, predictable cash flows. This focus, in combination
with consistent operational performance and competitive costs,
driven by our economies of scale, has resulted in record Adjusted
Net Income(1) and Total Adjusted EBITDA(1) for Teekay LNG this
quarter.”
Mr. Kremin continued, “Our LNG fleet is
fully-fixed for the remainder of 2020 and 94 percent fixed for
2021, largely insulating Teekay LNG from the current weak
short-term LNG shipping market. Furthermore, all of our
charter contracts are currently operating in-line with our
expectations, which allows us to reaffirm our previously provided
financial guidance for 2020.”
(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).
Summary of Recent Events
In July 2020, the Partnership entered into a new
commercial management agreement with the current manager of its
seven wholly-owned multi-gas vessels. The new agreement has a
two-year term effective September 2020 and is in direct
continuation of the expiry of the current commercial management
agreement.
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, on maturity, the Partnership repaid
its 1 billion Norwegian Krone (NOK) -denominated bonds and the
associated cross currency swap arrangement. This repayment amounted
to $111 million, net of $23 million of cash collateral released on
the associated cross currency swap.
In May 2020, the Partnership's 52 percent-owned
joint venture with Marubeni Corporation (the MALT Joint Venture)
chartered the Marib Spirit to an international trading company for
a period of six months, which commenced 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 commenced
upon completion and in direct continuation of their existing
charters in May and July 2020, respectively.
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 |
|
June 30, 2020 |
June 30, 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 |
137,822 |
|
10,383 |
|
— |
|
148,205 |
|
141,833 |
|
8,858 |
|
2,369 |
|
153,060 |
|
Income from vessel
operations |
69,232 |
|
357 |
|
— |
|
69,589 |
|
73,933 |
|
311 |
|
433 |
|
74,677 |
|
Equity income (loss) |
27,795 |
|
4,360 |
|
— |
|
32,155 |
|
3,377 |
|
(1,639 |
) |
— |
|
1,738 |
|
NON-GAAP FINANCIAL
COMPARISON |
|
|
|
|
|
|
|
|
Consolidated adjusted
EBITDA(i) |
103,190 |
|
1,420 |
|
— |
|
104,610 |
|
111,109 |
|
2,341 |
|
602 |
|
114,052 |
|
Adjusted EBITDA from
equity-accounted vessels(i) |
75,824 |
|
11,906 |
|
— |
|
87,730 |
|
40,095 |
|
7,922 |
|
— |
|
48,017 |
|
Total
adjusted EBITDA(i) |
179,014 |
|
13,326 |
|
— |
|
192,340 |
|
151,204 |
|
10,263 |
|
602 |
|
162,069 |
|
(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 June 30, 2020, compared to the same quarter
of the prior year, decreased primarily by a reduction in
earnings upon the sales of the WilForce and WilPride LNG carriers
in January 2020. This decrease was partially offset by fewer
off-hire days in the second quarter of 2020 due to scheduled dry
dockings for certain of the Partnership's LNG carriers.
Equity income and adjusted EBITDA from
equity-accounted vessels(1) for the liquefied natural gas segment
for the three months ended June 30, 2020, compared to the same
quarter of the prior year, increased primarily due to: 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 joint venture with National Oil
& Gas Authority, Gulf Investment Corporation and Samsung
C&T (the Bahrain LNG Joint Venture); higher earnings from the
MALT Joint Venture as a result of the one-year charter contracts
that were secured at higher rates for the Arwa Spirit and Marib
Spirit in June and July 2019, respectively; and fewer off-hire days
due to scheduled dry dockings and main engine overhauls for certain
vessels in the second quarter of 2019.
Liquefied Petroleum Gas Segment
Income from vessel operations and consolidated
adjusted EBITDA(1) for the liquefied petroleum gas segment for the
three months ended June 30, 2020, compared to the same quarter
of the prior year, was relatively stable.
Equity income (loss) and adjusted EBITDA from
equity-accounted vessels(1) for the liquefied petroleum gas segment
for the three months ended June 30, 2020, compared to the same
quarter of the prior year, were positively impacted by higher LPG
rates earned and fewer off-hire days in the Partnership’s 50
percent-owned LPG joint venture with Exmar NV (the Exmar LPG Joint
Venture).
Conventional Tanker Segment
There were no results from vessel operations for
the conventional tanker segment for the three months ended
June 30, 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 August 1, 2020. In addition, the Partnership 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 June 30, 2020, the Partnership had
total liquidity of $306.3 million (comprised of $226.3 million in
cash and cash equivalents and $80.0 million in undrawn credit
facilities).
Conference Call
The Partnership plans to host a conference call
on Thursday, August 13, 2020 at 1:00 p.m. (ET) to discuss the
results for the second 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) 367-2403 or 1 (647) 490-5367, if outside
North America, and quoting conference ID code 9339565.
- 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 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 Income
(Loss), 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 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 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 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 (loss) that are typically excluded by securities
analysts in their published estimates of the Partnership’s
financial results. The Partnership believes that certain investors
use this information to evaluate the Partnership’s financial
performance, as does management. Please refer to Appendix A of this
release for a reconciliation of this non-GAAP financial measure to
net income, and refer to footnote (3) of the Consolidated
Statements of Income (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 (loss) adjusted for 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 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 Months Ended |
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
2020 |
2020 |
2019 |
2020 |
2019 |
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Voyage
revenues |
148,205 |
|
139,887 |
|
153,060 |
|
288,092 |
|
302,804 |
|
|
|
|
|
|
|
Voyage expenses |
(5,329 |
) |
(2,317 |
) |
(6,023 |
) |
(7,646 |
) |
(11,798 |
) |
Vessel operating expenses |
(28,407 |
) |
(26,104 |
) |
(27,457 |
) |
(54,511 |
) |
(53,558 |
) |
Time-charter hire expense |
(5,368 |
) |
(5,922 |
) |
(3,080 |
) |
(11,290 |
) |
(8,671 |
) |
Depreciation and
amortization |
(31,629 |
) |
(32,639 |
) |
(35,338 |
) |
(64,268 |
) |
(69,464 |
) |
General and administrative
expenses |
(7,883 |
) |
(6,167 |
) |
(5,667 |
) |
(14,050 |
) |
(12,299 |
) |
Write-down of vessels(1) |
— |
|
(45,000 |
) |
— |
|
(45,000 |
) |
— |
|
Restructuring charges(2) |
— |
|
— |
|
(818 |
) |
— |
|
(2,976 |
) |
Income from vessel
operations |
69,589 |
|
21,738 |
|
74,677 |
|
91,327 |
|
144,038 |
|
|
|
|
|
|
|
Equity income(3) |
32,155 |
|
373 |
|
1,738 |
|
32,528 |
|
7,316 |
|
Interest expense |
(35,143 |
) |
(36,704 |
) |
(41,018 |
) |
(71,847 |
) |
(83,235 |
) |
Interest income |
1,697 |
|
2,370 |
|
960 |
|
4,067 |
|
2,038 |
|
Realized and unrealized loss
on non-designated derivative instruments(4) |
(8,516 |
) |
(20,471 |
) |
(7,826 |
) |
(28,987 |
) |
(14,443 |
) |
Foreign currency exchange
(loss) gain(5) |
(11,624 |
) |
4,739 |
|
(7,243 |
) |
(6,885 |
) |
(7,974 |
) |
Other expense |
(679 |
) |
(361 |
) |
(487 |
) |
(1,040 |
) |
(236 |
) |
Net income (loss) before income tax recovery (expense) |
47,479 |
|
(28,316 |
) |
20,801 |
|
19,163 |
|
47,504 |
|
Income tax recovery
(expense) |
1,804 |
|
(2,512 |
) |
(1,749 |
) |
(708 |
) |
(4,327 |
) |
Net income (loss) |
49,283 |
|
(30,828 |
) |
19,052 |
|
18,455 |
|
43,177 |
|
|
|
|
|
|
|
Non-controlling interest in
net income |
4,349 |
|
2,166 |
|
2,617 |
|
6,515 |
|
5,125 |
|
Preferred unitholders'
interest in net income |
6,425 |
|
6,425 |
|
6,425 |
|
12,850 |
|
12,850 |
|
General partner's interest in
net income (loss) |
713 |
|
(789 |
) |
200 |
|
(76 |
) |
504 |
|
Limited partners’ interest in
net income (loss) |
37,796 |
|
(38,630 |
) |
9,810 |
|
(834 |
) |
24,698 |
|
Limited partners'
interest in net income (loss) per common unit: |
|
|
|
|
|
• Basic |
0.46 |
|
(0.50 |
) |
0.12 |
(0.01 |
) |
0.31 |
|
• Diluted |
0.46 |
|
(0.50 |
) |
0.12 |
(0.01 |
) |
0.31 |
|
Weighted-average number of
common units outstanding: |
|
|
|
|
|
• Basic |
82,197,665 |
|
77,071,647 |
|
78,603,636 |
|
79,629,623 |
|
78,600,342 |
|
• Diluted |
82,262,235 |
|
77,071,647 |
|
78,685,537 |
|
79,629,623 |
|
78,682,263 |
|
Total
number of common units outstanding at end of period |
86,927,558 |
|
76,171,639 |
|
78,441,316 |
|
86,927,558 |
|
78,441,316 |
|
(1) In the first quarter
of 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
of vessels for the three months ended March 31, 2020, and six
months ended June 30, 2020.
(2) In January 2019, the
Toledo Spirit conventional tanker was sold and as a result of this
sale, the Partnership recorded restructuring charges of $0.8
million and $3.0 million for the three and six months ended June
30, 2019, respectively.
(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 |
Six Months Ended |
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
2020 |
2020 |
2019 |
2020 |
2019 |
Equity income |
32,155 |
|
373 |
|
1,738 |
|
32,528 |
|
7,316 |
|
Proportionate share of
unrealized loss on non-designated interest rate swaps |
3,806 |
|
22,204 |
|
5,102 |
|
26,010 |
|
9,462 |
|
Proportionate share of
unrealized credit loss provision(a) |
(423 |
) |
8,980 |
|
— |
|
8,557 |
|
— |
|
Proportionate share of other items |
362 |
|
(539 |
) |
1,124 |
|
(177 |
) |
1,469 |
|
Equity
income adjusted for items in Appendix A |
35,900 |
|
31,018 |
|
7,964 |
|
66,918 |
|
18,247 |
|
(a) Related to 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 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 Months Ended |
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
2020 |
2020 |
2019 |
2020 |
2019 |
Realized losses
relating to: |
|
|
|
|
|
Interest rate swap
agreements |
(3,662 |
) |
(2,911 |
) |
(2,392 |
) |
(6,573 |
) |
(4,777 |
) |
Foreign currency forward
contracts |
— |
|
(241 |
) |
— |
|
(241 |
) |
— |
|
|
(3,662 |
) |
(3,152 |
) |
(2,392 |
) |
(6,814 |
) |
(4,777 |
) |
Unrealized (losses)
gains relating to: |
|
|
|
|
|
Interest rate swap
agreements |
(4,854 |
) |
(17,521 |
) |
(5,333 |
) |
(22,375 |
) |
(9,525 |
) |
Foreign currency forward
contracts |
— |
|
202 |
|
(101 |
) |
202 |
|
(101 |
) |
Toledo Spirit time-charter
derivative contract |
— |
|
— |
|
— |
|
— |
|
(40 |
) |
|
(4,854 |
) |
(17,319 |
) |
(5,434 |
) |
(22,173 |
) |
(9,666 |
) |
Total realized and unrealized losses on non-designated derivative
instruments |
(8,516 |
) |
(20,471 |
) |
(7,826 |
) |
(28,987 |
) |
(14,443 |
) |
(5) For accounting purposes,
the Partnership is required to revalue all foreign
currency-denominated monetary assets and liabilities based on the
prevailing exchange rates at the end of each reporting period. This
revaluation does not affect the Partnership’s cash flows or the
calculation of distributable cash flow, but results in the
recognition of unrealized foreign currency translation gains or
losses in the Consolidated Statements of Income (Loss).
Foreign currency exchange (loss) gain includes
realized (losses) gains 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
gains (losses) relating to the change in fair value of such
derivative instruments and unrealized (losses) gain on the
revaluation of the NOK bonds as detailed in the table below:
|
Three Months Ended |
Six Months Ended |
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
2020 |
2020 |
2019 |
2020 |
2019 |
Realized losses on
cross-currency swaps |
(1,430 |
) |
(1,817 |
) |
(1,087 |
) |
(3,247 |
) |
(2,521 |
) |
Realized losses on
cross-currency swaps maturity |
(33,844 |
) |
— |
|
— |
|
(33,844 |
) |
— |
|
Realized gains on repayment of
NOK bonds |
33,844 |
|
— |
|
— |
|
33,844 |
|
— |
|
Unrealized gains (losses) on
cross currency swaps |
45,881 |
|
(49,540 |
) |
(139 |
) |
(3,659 |
) |
(2,059 |
) |
Unrealized (losses) gains on revaluation of NOK bonds |
(53,794 |
) |
53,973 |
|
(3,901 |
) |
179 |
|
(4,480 |
) |
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, |
|
2020 |
2020 |
2019 |
|
(unaudited) |
(unaudited) |
(unaudited) |
ASSETS |
|
|
|
Current |
|
|
|
Cash and cash equivalents |
226,328 |
|
312,710 |
|
160,221 |
|
Restricted cash – current |
11,544 |
|
37,032 |
|
53,689 |
|
Accounts receivable |
9,694 |
|
10,592 |
|
13,460 |
|
Prepaid expenses |
10,891 |
|
7,780 |
|
6,796 |
|
Current portion of derivative
assets |
— |
|
— |
|
355 |
|
Current portion of net
investments in direct financing and sale-type leases |
14,014 |
|
13,740 |
|
273,986 |
|
Advances to affiliates |
3,025 |
|
5,474 |
|
5,143 |
|
Other current assets |
237 |
|
237 |
|
238 |
|
Total current assets |
275,733 |
|
387,565 |
|
513,888 |
|
|
|
|
|
Restricted cash –
long-term |
54,603 |
|
76,496 |
|
39,381 |
|
|
|
|
|
Vessels and
equipment |
|
|
|
At cost, less accumulated
depreciation |
1,256,434 |
|
1,272,433 |
|
1,335,397 |
|
Vessels related to finance
leases, at cost, less accumulated depreciation |
1,675,168 |
|
1,686,634 |
|
1,691,945 |
|
Operating lease right-of-use
asset |
27,568 |
|
30,882 |
|
34,157 |
|
Total vessels and equipment |
2,959,170 |
|
2,989,949 |
|
3,061,499 |
|
Investments in and advances to
equity-accounted joint ventures |
1,082,346 |
|
1,065,389 |
|
1,155,316 |
|
Net investments in direct
financing and sales-type leases |
525,812 |
|
529,943 |
|
544,823 |
|
Other assets |
17,633 |
|
16,169 |
|
14,738 |
|
Derivative assets |
— |
|
— |
|
1,834 |
|
Intangible assets – net |
38,938 |
|
41,152 |
|
43,366 |
|
Goodwill |
34,841 |
|
34,841 |
|
34,841 |
|
Total assets |
4,989,076 |
|
5,141,504 |
|
5,409,686 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Current |
|
|
|
Accounts payable |
4,270 |
|
1,633 |
|
5,094 |
|
Accrued liabilities |
79,832 |
|
76,796 |
|
76,752 |
|
Unearned revenue |
30,185 |
|
25,832 |
|
28,759 |
|
Current portion of long-term
debt |
295,282 |
|
328,384 |
|
393,065 |
|
Current obligations related to
finance leases |
70,955 |
|
70,455 |
|
69,982 |
|
Current portion of operating
lease liabilities |
13,681 |
|
13,524 |
|
13,407 |
|
Current portion of derivative
liabilities |
34,997 |
|
66,852 |
|
38,458 |
|
Advances from affiliates |
18,271 |
|
8,372 |
|
7,003 |
|
Total current liabilities |
547,473 |
|
591,848 |
|
632,520 |
|
Long-term debt |
1,263,202 |
|
1,356,766 |
|
1,438,331 |
|
Long-term obligations related
to finance leases |
1,305,056 |
|
1,323,069 |
|
1,340,922 |
|
Long-term operating lease
liabilities |
13,887 |
|
17,357 |
|
20,750 |
|
Derivative liabilities |
88,336 |
|
96,453 |
|
51,006 |
|
Other long-term
liabilities |
52,635 |
|
53,460 |
|
49,182 |
|
Total liabilities |
3,270,589 |
|
3,438,953 |
|
3,532,711 |
|
Equity |
|
|
|
Limited partners – common
units |
1,447,690 |
|
1,425,960 |
|
1,543,598 |
|
Limited partners – preferred
units |
285,159 |
|
285,159 |
|
285,159 |
|
General partner |
45,868 |
|
47,839 |
|
50,241 |
|
Accumulated other comprehensive loss |
(116,313 |
) |
(108,457 |
) |
(57,312 |
) |
Partners' equity |
1,662,404 |
|
1,650,501 |
|
1,821,686 |
|
Non-controlling interest |
56,083 |
|
52,050 |
|
55,289 |
|
Total
equity |
1,718,487 |
|
1,702,551 |
|
1,876,975 |
|
Total liabilities and total equity |
4,989,076 |
|
5,141,504 |
|
5,409,686 |
|
Teekay LNG Partners L.P.Consolidated
Statements of Cash Flows(in thousands of U.S. Dollars)
|
Six Months Ended |
|
June 30, |
June 30, |
|
2020 |
2019 |
|
(unaudited) |
(unaudited) |
Cash and cash equivalents
provided by (used for) |
|
|
|
|
|
OPERATING
ACTIVITIES |
|
|
Net income |
18,455 |
|
43,177 |
|
Non-cash and non-operating
items: |
|
|
Unrealized loss on non-designated derivative instruments |
22,173 |
|
9,666 |
|
Depreciation and amortization |
64,268 |
|
69,464 |
|
Write-down of vessels |
45,000 |
|
— |
|
Unrealized foreign currency exchange loss including the effect of
the settlement of cross currency swaps |
3,660 |
|
4,727 |
|
Equity income, net of dividends received $14,852 (2019 –
$17,274) |
(17,676 |
) |
9,958 |
|
Amortization of deferred financing issuance costs included in
interest expense |
3,001 |
|
5,170 |
|
Other non-cash items |
1,823 |
|
3,828 |
|
Change in non-cash operating
assets and liabilities: |
|
|
Receipts from direct financing and sales-type leases |
267,463 |
|
6,050 |
|
Expenditures for dry docking |
(1,927 |
) |
(6,335 |
) |
Other non-cash operating assets and liabilities |
17,621 |
|
(28,827 |
) |
Net operating cash flow |
423,861 |
|
116,878 |
|
FINANCING
ACTIVITIES |
|
|
|
|
|
Proceeds from issuance of
long-term debt |
446,650 |
|
126,263 |
|
Scheduled repayments of
long-term debt and settlement of related swaps |
(194,831 |
) |
(66,310 |
) |
Prepayments of long-term
debt |
(525,021 |
) |
(168,787 |
) |
Financing issuance costs |
(2,601 |
) |
(989 |
) |
Proceeds from financing
related to sales and leaseback of vessels |
— |
|
158,680 |
|
Scheduled repayments of
obligations related to finance leases |
(34,893 |
) |
(33,855 |
) |
Repurchase of common
units |
(15,635 |
) |
(12,056 |
) |
Cash distributions paid |
(47,295 |
) |
(39,315 |
) |
Acquisition of non-controlling
interest in certain of the Partnership's subsidiaries |
(2,219 |
) |
— |
|
Dividends paid to non-controlling interest |
— |
|
(55 |
) |
Net financing cash flow |
(375,845 |
) |
(36,424 |
) |
INVESTING
ACTIVITIES |
|
|
|
|
|
Expenditures for vessels and
equipment |
(8,832 |
) |
(82,575 |
) |
Capital contributions and
advances to equity-accounted joint ventures |
— |
|
(15,555 |
) |
Net investing cash flow |
(8,832 |
) |
(98,130 |
) |
Increase (decrease) in
cash, cash equivalents and restricted cash |
39,184 |
|
(17,676 |
) |
Cash, cash equivalents and
restricted cash, beginning of the period |
253,291 |
|
222,864 |
|
Cash, cash equivalents and restricted cash, end of the
period |
292,475 |
|
205,188 |
|
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, |
2020 |
2019 |
(unaudited) |
(unaudited) |
Net income – GAAP basis |
49,283 |
|
19,052 |
|
Less: Net income attributable
to non-controlling interests |
(4,349 |
) |
(2,617 |
) |
Net income attributable to the partners and preferred
unitholders |
44,934 |
|
16,435 |
|
Add (subtract) specific items
affecting net income: |
|
|
Restructuring charges(1) |
— |
|
818 |
|
Foreign currency exchange loss(2) |
10,194 |
|
6,068 |
|
Unrealized losses on non-designated derivative instruments and
other items from equity-accounted investees(3) |
3,745 |
|
6,226 |
|
Unrealized losses on non-designated derivative instruments(4) |
4,854 |
|
5,434 |
|
Other items |
(1,619 |
) |
— |
|
Non-controlling interests’ share of items above(5) |
535 |
|
(546 |
) |
Total adjustments |
17,709 |
|
18,000 |
|
Adjusted net income attributable to the partners and
preferred unitholders |
62,643 |
|
34,435 |
|
|
|
|
Preferred unitholders'
interest in adjusted net income |
6,425 |
|
6,425 |
|
General partner's interest in
adjusted net income |
1,044 |
|
560 |
|
Limited partners’ interest in
adjusted net income |
55,174 |
|
27,450 |
|
Limited partners’ interest in
adjusted net income per common unit, basic |
0.67 |
|
0.35 |
|
Weighted-average number of
common units outstanding, basic |
82,197,665 |
|
78,603,636 |
|
- See Note 2 to the Consolidated Statements of Income (Loss)
included in this release for further details.
- Foreign currency exchange loss 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 Income (Loss) included in this release
for further details.
- Reflects the proportionate share of unrealized losses due to
changes in the mark-to-market value of derivative instruments that
are not designated as hedges for accounting purposes and unrealized
credit loss provision in the Partnership's equity-accounted
investees. See Note 3 to the Consolidated Statements of Income
(Loss) 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 Income (Loss) included in this release
for further details.
- Items affecting net income (loss) include items from the
Partnership’s consolidated non-wholly-owned subsidiaries. The
specific items affecting net income (loss) 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, |
2020 |
2019 |
(unaudited) |
(unaudited) |
|
|
|
|
Net income |
49,283 |
|
19,052 |
|
Add: |
|
|
Partnership’s share of equity-accounted joint ventures' DCF net of
estimated maintenance capital expenditures(1) |
42,725 |
|
16,056 |
|
Depreciation and amortization |
31,629 |
|
35,338 |
|
Foreign currency exchange loss |
10,194 |
|
6,068 |
|
Unrealized loss on non-designated derivative instruments |
4,854 |
|
5,434 |
|
Direct finance and sale-type lease payments received in excess of
revenue recognized and other adjustments |
3,392 |
|
4,037 |
|
Deferred income tax and other non-cash items |
531 |
|
116 |
|
Distributions relating to equity financing of newbuildings |
— |
|
1,099 |
|
Less: |
|
|
Distributions relating to preferred units |
(6,425 |
) |
(6,425 |
) |
Estimated maintenance capital expenditures |
(14,513 |
) |
(17,397 |
) |
Equity income |
(32,155 |
) |
(1,738 |
) |
Distributable Cash Flow before non-controlling
interest |
89,515 |
|
61,640 |
|
Non-controlling interests’ share of DCF before estimated
maintenance capital expenditures |
(6,345 |
) |
(5,310 |
) |
Distributable Cash Flow |
83,170 |
|
56,330 |
|
Amount
of cash distributions attributable to the General Partner |
(411 |
) |
(304 |
) |
Limited
partners' Distributable Cash Flow |
82,759 |
|
56,026 |
|
Weighted-average number of common units outstanding, basic |
82,197,665 |
|
78,603,636 |
|
Distributable Cash Flow per limited partner common
unit |
1.03 |
|
0.71 |
|
- The estimated maintenance capital expenditures relating to the
Partnership’s share of equity-accounted joint ventures were $15.2
million and $10.8 million for the three months ended June 30, 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 |
June 30, |
2020 |
2019 |
(unaudited) |
(unaudited) |
Voyage revenues |
148,205 |
|
153,060 |
|
Partnership's proportionate
share of voyage revenues from its equity-accounted joint ventures
(See Appendix E) |
111,365 |
|
73,391 |
|
Less
the Partnership’s proportionate share of voyage revenues earned
directly from its equity-accounted joint ventures |
(5,569 |
) |
(4,525 |
) |
Total adjusted revenues |
254,001 |
|
221,926 |
|
|
Three Months Ended |
June 30, |
2020 |
2019 |
(unaudited) |
(unaudited) |
Net income |
49,283 |
|
19,052 |
|
Depreciation and amortization |
31,629 |
|
35,338 |
|
Interest expense, net of interest income |
33,446 |
|
40,058 |
|
Income tax (recovery) expense |
(1,804 |
) |
1,749 |
|
EBITDA |
112,554 |
|
96,197 |
|
|
|
|
Add (subtract) specific income
statement items affecting EBITDA: |
|
|
Foreign currency exchange loss |
11,624 |
|
7,243 |
|
Other expense |
679 |
|
487 |
|
Equity income |
(32,155 |
) |
(1,738 |
) |
Realized and unrealized loss on derivative instruments |
8,516 |
|
7,826 |
|
Direct finance and sale-type lease payments received in excess of
revenue recognized and other adjustments |
3,392 |
|
4,037 |
|
Consolidated adjusted
EBITDA |
104,610 |
|
114,052 |
|
Adjusted EBITDA from equity-accounted vessels (See Appendix E) |
87,730 |
|
48,017 |
|
Total adjusted EBITDA |
192,340 |
|
162,069 |
|
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, 2020 |
|
(unaudited) |
|
Liquefied Natural Gas Segment |
Liquefied Petroleum Gas Segment |
Conventional Tanker Segment |
Total |
Voyage revenues |
137,822 |
|
10,383 |
|
— |
|
148,205 |
|
Voyage expenses |
(806 |
) |
(4,523 |
) |
— |
|
(5,329 |
) |
Vessel operating expenses |
(24,599 |
) |
(3,808 |
) |
— |
|
(28,407 |
) |
Time-charter hire expense |
(5,368 |
) |
— |
|
— |
|
(5,368 |
) |
Depreciation and
amortization |
(30,566 |
) |
(1,063 |
) |
— |
|
(31,629 |
) |
General and administrative
expenses |
(7,251 |
) |
(632 |
) |
— |
|
(7,883 |
) |
Income from vessel operations |
69,232 |
|
357 |
|
— |
|
69,589 |
|
Depreciation and
amortization |
30,566 |
|
1,063 |
|
— |
|
31,629 |
|
Direct finance and sales-type
lease payments received in excess of revenue recognized and other
adjustments |
3,392 |
|
— |
|
— |
|
3,392 |
|
Consolidated adjusted EBITDA |
103,190 |
|
1,420 |
|
— |
|
104,610 |
|
|
|
|
|
|
|
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 and sales-type
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 |
|
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, 2020 |
June 30, 2019 |
|
(unaudited) |
(unaudited) |
|
At |
Partnership's |
At |
Partnership's |
100% |
Portion(1) |
100% |
Portion(1) |
Voyage revenues |
258,426 |
|
111,365 |
|
172,632 |
|
73,391 |
|
Voyage expenses |
(1,360 |
) |
(638 |
) |
(4,502 |
) |
(2,196 |
) |
Vessel operating expenses,
time-charter hire expenses and general and administrative
expenses |
(72,316 |
) |
(31,551 |
) |
(63,879 |
) |
(27,992 |
) |
Depreciation and
amortization |
(25,123 |
) |
(12,530 |
) |
(28,551 |
) |
(13,741 |
) |
Income from vessel operations of equity-accounted vessels |
159,627 |
|
66,646 |
|
75,700 |
|
29,462 |
|
Net interest expense |
(73,082 |
) |
(29,351 |
) |
(52,929 |
) |
(21,254 |
) |
Income tax recovery
(expense) |
225 |
|
110 |
|
(670 |
) |
(246 |
) |
Other items including realized
and unrealized losses on derivative instruments and unrealized
credit loss provision(2) |
(17,786 |
) |
(5,250 |
) |
(18,764 |
) |
(6,224 |
) |
Net income / equity income of equity-accounted vessels |
68,984 |
|
32,155 |
|
3,337 |
|
1,738 |
|
Net income / equity income of equity-accounted LNG vessels |
60,105 |
|
27,795 |
|
6,455 |
|
3,377 |
|
Net
income (loss) / equity income (loss) of equity-accounted LPG
vessels |
8,879 |
|
4,360 |
|
(3,118 |
) |
(1,639 |
) |
|
|
|
|
|
Net income / equity income of
equity-accounted vessels |
68,984 |
|
32,155 |
|
3,337 |
|
1,738 |
|
Depreciation and amortization |
25,123 |
|
12,530 |
|
28,551 |
|
13,741 |
|
Net interest expense |
73,082 |
|
29,351 |
|
52,929 |
|
21,254 |
|
Income tax recovery (expense) |
(225 |
) |
(110 |
) |
670 |
|
246 |
|
EBITDA from equity-accounted
vessels |
166,964 |
|
73,926 |
|
85,487 |
|
36,979 |
|
|
|
|
|
|
Add (subtract) specific income
statement items affecting EBITDA: |
|
|
|
|
Other items including realized and unrealized losses on derivative
instruments and unrealized credit loss provision |
17,786 |
|
5,250 |
|
18,764 |
|
6,224 |
|
Direct finance and sale-type lease payments received in excess of
revenue recognized |
26,381 |
|
9,499 |
|
16,131 |
|
5,759 |
|
Amortization of in-process contracts |
(1,738 |
) |
(945 |
) |
(1,736 |
) |
(945 |
) |
Adjusted EBITDA from equity-accounted vessels |
209,393 |
|
87,730 |
|
118,646 |
|
48,017 |
|
Adjusted EBITDA from
equity-accounted LNG vessels |
185,577 |
|
75,824 |
|
102,799 |
|
40,095 |
|
Adjusted EBITDA from equity-accounted LPG vessels |
23,816 |
|
11,906 |
|
15,847 |
|
7,922 |
|
- The Partnership's equity-accounted vessels for the three months
ended June 30, 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
June 30, 2020, compared to 22 owned and in-chartered LPG
carriers as at June 30, 2019; the Partnership’s ownership
interest ranging from 20 to 30 percent in four LNG carriers as at
June 30, 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
June 30, 2020, compared to three ARC7 LNG carriers and three
ARC7 LNG carrier newbuildings as at June 30, 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 relate to the Partnership's adoption
of 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 June 30, 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 |
552,035 |
|
230,274 |
|
509,065 |
|
210,736 |
|
Other current assets |
85,740 |
|
34,986 |
|
62,566 |
|
27,719 |
|
Property, plant and equipment,
including owned vessels, vessels related to finance leases and
operating lease right-of-use assets |
2,020,188 |
|
1,031,717 |
|
3,112,349 |
|
1,375,570 |
|
Net investments in sales-type
and direct financing leases, current and non-current |
5,464,583 |
|
2,107,966 |
|
4,589,139 |
|
1,856,709 |
|
Other non-current assets |
68,602 |
|
45,075 |
|
50,967 |
|
41,015 |
|
Total assets |
8,191,148 |
|
3,450,018 |
|
8,324,086 |
|
3,511,749 |
|
|
|
|
|
|
Current portion of long-term
debt and obligations related to finance leases and operating
leases |
548,893 |
|
250,659 |
|
315,247 |
|
136,573 |
|
Current portion of derivative
liabilities |
65,839 |
|
26,967 |
|
34,618 |
|
13,658 |
|
Other current liabilities |
143,828 |
|
57,774 |
|
153,816 |
|
66,224 |
|
Long-term debt and obligations
related to finance leases and operating leases |
4,661,614 |
|
1,865,877 |
|
5,026,123 |
|
2,041,595 |
|
Shareholders' loans, current
and non-current |
346,969 |
|
128,422 |
|
346,969 |
|
126,546 |
|
Derivative liabilities |
327,015 |
|
131,459 |
|
162,640 |
|
66,060 |
|
Other long-term
liabilities |
62,864 |
|
31,139 |
|
64,196 |
|
32,323 |
|
Equity |
2,034,126 |
|
957,721 |
|
2,220,477 |
|
1,028,770 |
|
Total liabilities and equity |
8,191,148 |
|
3,450,018 |
|
8,324,086 |
|
3,511,749 |
|
|
|
|
|
|
Investments in
equity-accounted joint ventures |
|
957,721 |
|
|
1,028,770 |
|
Advances to equity-accounted
joint ventures |
|
128,422 |
|
|
126,546 |
|
Credit
loss provision(2) |
|
(3,797 |
) |
|
— |
|
Investments in and advances to equity-accounted joint ventures |
|
1,082,346 |
|
|
1,155,316 |
|
- The Partnership's equity-accounted vessels as at June 30,
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 June 30, 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 relate to the Partnership's adoption
of 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 financial
guidance for 2020; fixed charter coverage for the
Partnership's LNG fleet for the remainder of 2020 and 2021; the
Partnership's ability to complete remaining crew changes and
anticipated timing thereof; the timing of the new commercial
management agreement for the Partnership's seven wholly-owned
multi-gas vessels; the Partnership's operational performance and
cost competitiveness, including the Partnership’s ability to derive
benefits from its economies of scale; expected reductions in the
Partnership’s interest costs as it continues to reduce its debt
levels; and the continued performance of the Partnership's and its
joint ventures' charter contracts. The following factors are among
those that could cause actual results to differ materially from the
forward-looking statements, which involve risks and uncertainties,
and that should be considered in evaluating any such statement:
changes in 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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