UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________
FORM 6-K
_________________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
_________________________
Date of Report: August 4, 2022
Commission file number 1- 33198
_________________________
ALTERA INFRASTRUCTURE L.P.
(Exact name of Registrant as specified in its charter)
_________________________
Altera House, Unit 3, Prospect Park, Arnhall Business Park,
Westhill, Aberdeenshire, AB32 6FJ, United Kingdom
(Address of principal executive office)
_________________________
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Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F. |
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Form 20-F
ý Form
40- F
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Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1). |
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Yes
¨ No
ý
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Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7). |
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Yes
¨ No
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Item 1 — Information Contained in this Form 6-K Report
Attached as Exhibit 1 is a copy of an announcement of Altera
Infrastructure L.P. dated August 4, 2022.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly
authorized.
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ALTERA INFRASTRUCTURE L.P. |
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By: |
ALTERA INFRASTRUCTURE GP L.L.C.,
its general partner
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Date: August 4, 2022 |
By: |
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/s/ Mark Mitchell |
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Mark Mitchell
Company Secretary |
Press Release
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
Altera Infrastructure Reports Second Quarter 2022
Results
Aberdeen, United Kingdom, August 4, 2022
- Altera Infrastructure GP LLC (Altera
GP),
the general partner of Altera Infrastructure L.P.
(Altera
or
the Partnership),
today reported the Partnership’s results for the quarter ended June
30, 2022.
•Revenues
of $296.2 million and net loss of $40.0 million, or $(0.11) per
common unit, in the second quarter of 2022.
•Adjusted
EBITDA(1)
of $129.1 million in the second quarter of 2022.
The following table presents the Partnership's Consolidated
Financial Summary:
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Three Months Ended |
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June 30, |
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March 31, |
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June 30, |
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2022 |
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2022 |
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Restated(2)
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2021 |
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In thousands of U.S. Dollars, unaudited |
$ |
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$ |
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$ |
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IFRS FINANCIAL RESULTS |
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Revenues |
296,234 |
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323,655 |
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266,935 |
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Net Income (loss)
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(39,989) |
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52,908 |
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(28,488) |
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Limited partners' interest in net income (loss) per common unit -
basic
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(0.11) |
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0.11 |
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(0.08) |
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NON-IFRS FINANCIAL MEASURE: |
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Adjusted EBITDA
(1)
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129,146 |
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179,528 |
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109,595 |
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(1)Please
refer to "Non-IFRS Measures" for the definition of this term and
reconciliation of this non-IFRS measure as used in this release to
the most directly comparable measure under IFRS.
(2)See
the unaudited interim condensed consolidated statements of income
(loss) below for additional information.
The Partnership generated net loss of $40 million for the three
months ended
June 30, 2022,
compared to net loss of $28 million for the three months ended June
30, 2021. The decrease of $12 million was primarily due to
vessel impairments in the current period, absence of contribution
from the
Knarr
FPSO going off contract May 1, 2022 and higher interest expenses in
the second quarter of 2022, partially offset by higher
Petrojarl I
oil price tariff revenue, higher shuttle tanker utilization and
lower depreciation expenses following impairments in the fourth
quarter, compared to the same period during the prior
year.
Adjusted EBITDA was $129 million for the three months ended
June 30, 2022,
compared to $110 million for the same period during the prior year.
The increase of $19 million was primarily driven by
higher
Petrojarl I
oil price tariff revenue and higher shuttle tanker utilization,
partially offset by the absence of contribution from the
Knarr
FPSO
going off contract May 1, 2022.
Altera Infrastructure L.P.
1
Operating Results
The commentary below compares certain results of the Partnership's
operating segments on the basis of the non-IFRS measure of Adjusted
EBITDA for the three months ended
June 30, 2022
to the same period of the prior year.
The following table presents the Partnership's Adjusted EBITDA by
segment
(1):
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Three Months Ended |
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June 30, |
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March 31, |
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June 30, |
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2022 |
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2022 |
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Restated(2)
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2021 |
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In thousands of U.S. Dollars, unaudited |
$ |
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$ |
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$ |
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FPSO |
53,424 |
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99,533 |
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45,364 |
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Shuttle Tanker |
69,494 |
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63,590 |
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57,662 |
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FSO |
10,565 |
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10,659 |
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9,587 |
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UMS |
(3,940) |
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(1,760) |
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(1,627) |
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Towage |
3,649 |
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8,990 |
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(1,357) |
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New Ventures |
(678) |
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(129) |
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— |
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Corporate/Eliminations |
(3,368) |
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(1,355) |
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(34) |
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Partnership's Adjusted EBITDA |
129,146 |
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179,528 |
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109,595 |
(1)These
operating segments are regularly reviewed by the Partnership's
chief operating decision maker (CODM)
for the purpose of allocating resources to the segment and to
assess its performance. The key measure used by the CODM in
assessing performance and in making resource allocation decisions
is Adjusted EBITDA, which is defined in this release under the
heading “Non-IFRS Measures." Adjusted EBITDA is also used by
external users of the Partnership's consolidated financial
statements, such as investors and the Partnership’s controlling
unitholder.
(2)See
the unaudited interim condensed consolidated statements of income
(loss) below for additional information.
Second
Quarter 2022 Compared with Second Quarter 2021
The Partnership's
FPSO
segment generated Adjusted EBITDA of $53 million for the three
months ended
June 30, 2022,
compared to $45 million for the three months ended June 30, 2021.
The increase of $8 million was primarily due to
Petrojarl I
higher uptime and oil price tariff revenues, partially offset by an
absence of contribution from the
Knarr
FPSO going off contract May 1, 2022.
The Partnership's
Shuttle Tanker
segment generated Adjusted EBITDA of $69 million for the three
months ended
June 30, 2022,
compared to $58 million for the three months ended June 30, 2021.
The increase of $11 million was primarily due to higher
shuttle tanker utilization.
The Partnership's
FSO
segment generated Adjusted EBITDA of $11 million for the three
months ended
June 30, 2022,
compared to $10 million for the three months ended June 30,
2021.
The Partnership's
UMS
segment generated an Adjusted EBITDA loss of $4 million for the
three months ended
June 30, 2022, compared to
$2 million for the three months ended June 30, 2021. The $2 million
increased loss was primarily due to mobilization costs for
the
Arendal Spirit
UMS for its current contract as compared to being in lay-up in the
prior year.
The Partnership's
Towage
segment
generated Adjusted EBITDA of $4 million for the three months
ended
June 30, 2022,
compared to an Adjusted EBITDA loss of $1 million for the three
months ended June 30, 2021. The improvement of $5 million was
primarily due to higher average day rates and
utilization.
Altera Infrastructure L.P.
2
Strategic Updates
Liquidity Update
As
at
June 30, 2022,
the Partnership had total liquidity of $186 million, compared to
$241 million as at June 30, 2021, representing a decrease of $55
million.(1)
Financings
The Partnership has engaged with certain of its asset level secured
lenders within its FPSO, FSO, Towage, and UMS segments to better
align the terms of such debt with expected cash-flows from the
applicable segment and with Brookfield Business Partners L.P. and
its affiliates (or
Brookfield)
as secured lender to address its secured debt. The Partnership also
anticipates engaging with its unsecured corporate level lenders to
address its unsecured debt. As part of these efforts, the
Partnership entered into extension agreements with certain of its
lenders on June 16, 2022 to defer certain required payments until
August 12, 2022. Furthermore, in July 2022, the Partnership opted
not to make the interest payment due on July 15, 2022 for its 8.50%
senior unsecured bonds with a principal amount outstanding of $276
million that mature in July 2023, and has elected to enter into a
30-day grace period for this interest payment.
Contract Updates
In July 2022, Energean Isreal Ltd. exercised an option to continue
to deploy the
Arendal Spirit
UMS for 32 additional days.
In June 2022, Equinor ASA exercised a one-year extension option for
the
Randgrid
FSO. The extended firm contract is effective until October
2023.
In May 2022, the
Knarr
FPSO ceased production on the Knarr field in the North Sea, after
which decommissioning activities related to the field
commenced.
Shuttle Tanker Newbuildings
In May 2022, the Partnership's final newbuilding in a series of
seven, the shuttle tanker Altera Thule, commenced operations off
the East Coast of Canada.
Vessel Sales
In July 2022, the Partnership sold the
ALP Ace
and
ALP Ippon
towage vessels for continued use in a non-competing industry for a
total of $14 million.
In July 2022, the Partnership entered into an agreement to sell its
50% owned vessel, the
Navion Gothenburg
shuttle tanker for continued use for approximately $25 million
(100%). Delivery is expected in August 2022.
In July 2022, the Partnership entered into an agreement to sell
the
Petronordic
shuttle tanker for recycling for approximately $7 million. Delivery
is expected in September 2022.
In May 2022, the Partnership completed the sale of the
Petrojarl Varg
FPSO unit for $22 million to an energy company for re-use as a
production facility as part of a new field development
opportunity.
In May 2022, the Partnership entered into an agreement to sell
the
Falcon Spirit
FSO for recycling for $10 million; the vessel is expected to be
delivered to the buyer in the third quarter of 2022.
(1)Total
liquidity is defined as Cash and cash equivalents (excluding Cash
deposits with third-party restrictions).
Altera Infrastructure L.P.
3
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, among others: the completion of
anticipated vessel sales; the expected delivery dates of vessels
subject to sales agreements; and the Partnership's engagement with
its lenders relating to rescheduling outstanding debt obligations.
The following factors are among those that could cause actual
results to differ materially from the forward-looking statements,
which involve risks and uncertainties, and that should be
considered in evaluating any such statement: the length and outcome
of the Partnership's ongoing engagement with its lenders relating
to its outstanding debt obligations; the duration and scope of the
COVID-19 pandemic and the severity of COVID variants; the duration
and effects of Russia's invasion of Ukraine; and other factors
discussed in the Partnership’s filings from time to time with the
SEC, including its Report on Form 20-F for the fiscal year ended
December 31, 2021. The Partnership expressly disclaims any
obligation or undertaking 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.
About
Altera Infrastructure L.P.
Altera
Infrastructure L.P. is a leading global energy infrastructure
services partnership primarily focused on the ownership and
operation of critical infrastructure assets in the offshore oil
regions of the North Sea, Brazil and the East Coast of Canada.
Altera has consolidated assets of approximately $3.8 billion
comprised of 44 vessels, including floating production, storage and
offloading (FPSO) units, shuttle tankers, floating storage and
offtake (FSO) units, long-distance towing and offshore installation
vessels and a unit for maintenance and safety (UMS). The majority
of Altera’s fleet is employed on medium-term, stable
contracts.
Altera's preferred units trade on the New York Stock Exchange under
the symbols "ALIN PR A", "ALIN PR B" and "ALIN PR E",
respectively.
For Investor Relations inquiries contact:
Jan Rune Steinsland, Chief Financial Officer
Email: investor.relations@alterainfra.com
Tel: +47 97 05 25 33
Website:
www.alterainfra.com
Altera Infrastructure L.P.
4
ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(LOSS)
(in thousands of U.S. Dollars)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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March 31, |
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June 30, |
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June 30, |
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June 30, |
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2022 |
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2022 |
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Restated(1)
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2021 |
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2022 |
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2021 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Revenues |
296,234 |
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323,655 |
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266,935 |
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619,889 |
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539,689 |
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Direct operating costs |
(171,082) |
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(159,206) |
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(169,937) |
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(330,288) |
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(331,778) |
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General and administrative expenses |
(12,135) |
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(6,703) |
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(8,951) |
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(18,838) |
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(21,619) |
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Depreciation and amortization |
(70,150) |
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(71,882) |
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(81,560) |
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(142,032) |
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(158,809) |
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Interest expense |
(59,490) |
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(56,208) |
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(49,475) |
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(115,698) |
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(97,159) |
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Interest income |
355 |
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58 |
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21 |
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413 |
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49 |
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Equity-accounted income (loss) |
9,826 |
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22,262 |
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10,229 |
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32,088 |
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29,613 |
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Impairment expense, net |
(38,040) |
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— |
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— |
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(38,040) |
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— |
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Gain (loss) on dispositions, net |
15,700 |
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— |
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9,107 |
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15,700 |
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9,107 |
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Realized and unrealized gain (loss) on derivative
instruments |
(3,108) |
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10,231 |
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(1,513) |
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7,123 |
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12,347 |
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Foreign currency exchange gain (loss) |
630 |
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1,024 |
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(302) |
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1,654 |
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23 |
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Other income (expenses), net |
(8,795) |
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(10,834) |
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(1,831) |
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(19,629) |
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(1,857) |
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Income (loss) before income tax (expense) benefit |
(40,055) |
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52,397 |
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(27,277) |
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12,342 |
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(20,394) |
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Income tax (expense) benefit |
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Current |
66 |
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511 |
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(1,211) |
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577 |
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(2,193) |
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Net income (loss) |
(39,989) |
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52,908 |
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(28,488) |
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12,919 |
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(22,587) |
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Attributable to: |
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Limited partners - common units |
(46,277) |
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45,410 |
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(33,967) |
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(867) |
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(34,269) |
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General partner |
(354) |
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347 |
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(260) |
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(7) |
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(262) |
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Limited partners - preferred units |
7,880 |
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7,880 |
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7,880 |
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15,760 |
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15,760 |
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Non-controlling interests in subsidiaries |
(1,238) |
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(729) |
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(2,141) |
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(1,967) |
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(3,816) |
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(39,989) |
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52,908 |
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(28,488) |
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12,919 |
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(22,587) |
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Basic and diluted earnings (loss) per limited partner common
unit |
(0.11) |
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0.11 |
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(0.08) |
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0.00 |
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(0.08) |
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(1)The
Partnership has restated its March 31, 2022 unaudited interim
condensed consolidated statement of income (loss) to
retrospectively show costs within Other income (expense), net that
are not indicative of ongoing operations. The impact of the change
as at March 31, 2022 is a reclassification of $9.8 million of
General and administrative expenses to Other income (expenses),
net. For additional information, please refer to Part I, Item 1. –
Financial Statements: Note 2c iii) – Significant Accounting
Policies in the Partnership's Report on Form 6-K for the period
ended June 30, 2022.
Altera Infrastructure L.P.
5
ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
(in thousands of U.S. Dollars)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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March 31, |
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June 30, |
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June 30, |
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June 30, |
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2022 |
|
2022 |
|
2021 |
|
2022 |
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2021 |
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$ |
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$ |
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$ |
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$ |
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$ |
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Net income (loss) |
(39,989) |
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|
52,908 |
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(28,488) |
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|
12,919 |
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|
(22,587) |
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Other comprehensive income (loss) |
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Items that will not be reclassified subsequently to net income
(loss): |
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To interest expense: |
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Realized gain on qualifying cash flow hedging
instruments |
(182) |
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|
(179) |
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|
(196) |
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|
(361) |
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|
(386) |
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To equity-accounted income (loss): |
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Realized gain on qualifying cash flow hedging
instruments |
(158) |
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|
(159) |
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|
(211) |
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|
(317) |
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|
(407) |
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Total other comprehensive income (loss) |
(340) |
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|
(338) |
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|
(407) |
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|
(678) |
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|
(793) |
|
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Comprehensive income (loss) |
(40,329) |
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|
52,570 |
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|
(28,895) |
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|
12,241 |
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|
(23,380) |
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Attributable to: |
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|
|
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Limited partners - common units |
(46,614) |
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|
45,075 |
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|
(34,371) |
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|
(1,540) |
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|
(35,056) |
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General partner |
(357) |
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|
344 |
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|
(263) |
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|
(12) |
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|
(268) |
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Limited partners - preferred units |
7,880 |
|
|
7,880 |
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|
7,880 |
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|
15,760 |
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|
15,760 |
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Non-controlling interests in subsidiaries |
(1,238) |
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|
(729) |
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|
(2,141) |
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|
(1,967) |
|
|
(3,816) |
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|
|
(40,329) |
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|
52,570 |
|
|
(28,895) |
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|
12,241 |
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|
(23,380) |
|
Altera Infrastructure L.P.
6
ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
(in thousands of U.S. Dollars)
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|
|
|
|
|
|
|
|
As at |
|
As at |
|
As at |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
|
|
2022 |
|
2021 |
|
|
|
2022 |
|
Restated(1)
|
|
Restated(1)
|
|
|
|
$ |
|
$ |
|
$ |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
185,561 |
|
171,305 |
|
190,942 |
|
|
Cash deposits with third-party restrictions |
|
98,205 |
|
78,912 |
|
58,566 |
|
|
Financial assets |
|
9,520 |
|
6,933 |
|
5,856 |
|
|
Accounts and other receivable, net |
|
127,305 |
|
147,049 |
|
127,453 |
|
|
Vessels and equipment classified as held for sale |
|
52,530 |
|
5,800 |
|
5,800 |
|
|
Inventory |
|
42,472 |
|
31,775 |
|
26,601 |
|
|
Due from related parties |
|
773 |
|
830 |
|
978 |
|
|
Other assets |
|
30,504 |
|
30,706 |
|
43,668 |
|
|
Total current assets |
|
546,870 |
|
473,310 |
|
459,864 |
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Financial assets |
|
1,049 |
|
969 |
|
718 |
|
|
|
|
|
|
|
|
|
|
Vessels and equipment |
|
2,786,196 |
|
2,928,453 |
|
2,869,395 |
|
|
Advances on newbuilding contracts |
|
— |
|
— |
|
51,918 |
|
|
Equity-accounted investments |
|
246,628 |
|
243,904 |
|
237,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
122,137 |
|
128,082 |
|
138,247 |
|
|
Goodwill |
|
127,113 |
|
127,113 |
|
127,113 |
|
|
Total non-current assets |
|
3,283,123 |
|
3,428,521 |
|
3,424,860 |
|
|
Total assets |
|
3,829,993 |
|
3,901,831 |
|
3,884,724 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and other |
|
194,793 |
|
190,249 |
|
249,297 |
|
|
Other financial liabilities |
|
16,136 |
|
14,029 |
|
34,679 |
|
|
Borrowings |
|
900,574 |
|
572,842 |
|
407,274 |
|
|
Due to related parties |
|
10,424 |
|
32,485 |
|
— |
|
|
Total current liabilities |
|
1,121,927 |
|
809,605 |
|
691,250 |
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and other |
|
45,323 |
|
47,501 |
|
49,253 |
|
|
Other financial liabilities |
|
182,596 |
|
185,363 |
|
188,658 |
|
|
Borrowings |
|
1,519,966 |
|
1,882,204 |
|
2,056,753 |
|
|
Due to related parties |
|
843,562 |
|
820,210 |
|
797,432 |
|
|
Deferred tax liabilities |
|
700 |
|
700 |
|
700 |
|
|
Total non-current liabilities |
|
2,592,147 |
|
2,935,978 |
|
3,092,796 |
|
|
Total liabilities |
|
3,714,074 |
|
3,745,583 |
|
3,784,046 |
|
|
EQUITY |
|
|
|
|
|
|
|
|
Limited partners - Class A common units |
|
(4,550) |
|
(3,963) |
|
(4,539) |
|
|
Limited partners - Class B common units |
|
(315,009) |
|
(269,319) |
|
(314,153) |
|
|
Limited partners - preferred units |
|
408,008 |
|
400,128 |
|
392,248 |
|
|
General partner |
|
5,596 |
|
5,950 |
|
5,603 |
|
|
Accumulated other comprehensive income |
|
2,133 |
|
2,473 |
|
2,811 |
|
|
Non-controlling interests in subsidiaries |
|
19,741 |
|
20,979 |
|
18,708 |
|
|
Total equity |
|
115,919 |
|
156,248 |
|
100,678 |
|
|
Total liabilities and equity |
|
3,829,993 |
|
3,901,831 |
|
3,884,724 |
|
(1)The
Partnership has restated its March 31, 2022 and December 31, 2021
unaudited interim condensed consolidated statement of financial
position to retrospectively show the change in accounting policy
adopted during the three months ended June 30, 2022. The impact of
the change as at March 31, 2022 and December 31, 2021 is a
reclassification of $33.9 million and $13.5 million,
respectively, of restricted cash from Financial assets (current) to
Cash deposits with third-party restrictions and $45.0 million
and $45.0 million, respectively, of restricted cash from Financial
assets (non-current) to Cash deposits with third-party
restrictions. For additional information, please refer to Part I,
Item 1. – Financial Statements: Note 2c ii) – Significant
Accounting Policies in the Partnership's Report on Form 6-K for the
period ended June 30, 2022.
ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands of U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
|
Six Months Ended
June 30, |
|
2022 |
|
2021 |
|
|
|
2021 |
|
Restated(2)
|
|
Restated(2)
|
|
2022 |
|
Restated(2)
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
|
|
Net income (loss) |
52,908 |
|
|
5,901 |
|
|
12,919 |
|
|
(22,587) |
|
|
Adjusted for the following items: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
71,882 |
|
|
77,249 |
|
|
142,032 |
|
|
158,809 |
|
|
Equity-accounted (income) loss, net of distributions received of
$24.9 million (2021 - $24.0 million) |
(5,441) |
|
|
(990) |
|
|
(7,171) |
|
|
(5,639) |
|
|
Impairment expense, net |
— |
|
|
— |
|
|
38,040 |
|
|
— |
|
|
(Gain) loss on dispositions, net |
— |
|
|
— |
|
|
(15,700) |
|
|
(9,107) |
|
|
Unrealized (gain) loss on derivative instruments |
(25,373) |
|
|
(162,257) |
|
|
(21,375) |
|
|
(163,207) |
|
|
|
|
|
|
|
|
|
|
Provisions and other items |
(645) |
|
|
(193) |
|
|
(3,786) |
|
|
188 |
|
|
Other non-cash items |
15,821 |
|
|
12,086 |
|
|
34,173 |
|
|
22,985 |
|
|
Changes in non-cash working capital, net |
(50,324) |
|
|
39,239 |
|
|
(20,923) |
|
|
79,464 |
|
|
Net operating cash flow |
58,828 |
|
|
(28,965) |
|
|
158,209 |
|
|
60,906 |
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Proceeds from borrowings |
63,195 |
|
|
75,000 |
|
|
63,195 |
|
|
75,000 |
|
|
Repayments of borrowings |
(75,140) |
|
|
(99,367) |
|
|
(112,595) |
|
|
(195,767) |
|
|
Financing costs related to borrowings |
— |
|
|
(750) |
|
|
— |
|
|
(884) |
|
|
Proceeds from borrowings related to sale and leaseback of
vessels |
— |
|
|
71,400 |
|
|
— |
|
|
71,400 |
|
|
Repayments of borrowings related to sale and leaseback of
vessels |
(2,818) |
|
|
(2,881) |
|
|
(5,636) |
|
|
(5,700) |
|
|
Financing costs related to borrowings from sale and leaseback of
vessels |
— |
|
|
— |
|
|
— |
|
|
(584) |
|
|
Proceeds from borrowings from related parties |
32,000 |
|
|
75,000 |
|
|
32,000 |
|
|
130,000 |
|
|
Prepayment of borrowings from related parties |
— |
|
|
— |
|
|
(22,000) |
|
|
(30,000) |
|
|
Lease liability repayments |
(3,341) |
|
|
(3,392) |
|
|
(9,108) |
|
|
(6,961) |
|
|
Capital contribution by non-controlling interests |
3,000 |
|
|
— |
|
|
3,000 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Distributions to limited partners and preferred
unitholders |
— |
|
|
(7,880) |
|
|
— |
|
|
(15,760) |
|
|
Distributions to non-controlling interests |
— |
|
|
(1,750) |
|
|
— |
|
|
(1,750) |
|
|
|
|
|
|
|
|
|
|
Repurchase of preferred units |
— |
|
|
(24) |
|
|
— |
|
|
(24) |
|
|
Net financing cash flow |
16,896 |
|
|
105,356 |
|
|
(51,144) |
|
|
18,970 |
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
|
|
Vessels and equipment |
(75,387) |
|
|
(156,317) |
|
|
(87,046) |
|
|
(168,979) |
|
|
Equity-accounted investments |
(1,153) |
|
|
(1,172) |
|
|
(2,305) |
|
|
(2,336) |
|
|
Dispositions |
|
|
|
|
|
|
|
|
Vessels and equipment |
— |
|
|
— |
|
|
21,500 |
|
|
28,835 |
|
|
Changes in restricted cash |
697 |
|
|
71,826 |
|
|
(3,813) |
|
|
77,445 |
|
|
|
|
|
|
|
|
|
|
Net investing cash flow |
(75,843) |
|
|
(85,663) |
|
|
(71,664) |
|
|
(65,035) |
|
|
Total Cash and cash equivalents
(1)
|
|
|
|
|
|
|
|
|
Change during the period |
(119) |
|
|
(9,272) |
|
|
35,401 |
|
|
14,841 |
|
|
Impact of foreign exchange on cash |
828 |
|
|
240 |
|
|
(1,143) |
|
|
369 |
|
|
Balance, beginning of the period |
249,508 |
|
|
284,486 |
|
|
249,508 |
|
|
284,486 |
|
|
Balance, end of the period |
250,217 |
|
|
275,454 |
|
|
283,766 |
|
|
299,696 |
|
(1) Total Cash and cash equivalents
includes Cash and cash equivalents and Cash deposits with
third-party restrictions.
(2) The Partnership has restated its three
months ended March 31, 2022 and March 31, 2021 and its six months
ended June 30, 2021 unaudited interim condensed consolidated
statements of cash flows to retrospectively show the change in
accounting policy adopted during the three months ended June 30,
2022. For additional information, please refer to Part I, Item 1. –
Financial Statements: Note 2c ii) – Significant Accounting Policies
in the Partnership's Report on Form 6-K for the period ended June
30, 2022.
Non-IFRS Measures
To
supplement the unaudited interim condensed consolidated financial
statements, the Partnership uses Adjusted EBITDA, which is a
non-IFRS financial measure, as a measure of the Partnership's
performance. Adjusted EBITDA represents net income (loss) before
interest expense, interest income, income tax (expense) benefit,
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 impairment
expenses, gain (loss) on dispositions, net, unrealized gain (loss)
on derivative instruments, foreign currency exchange gain (loss)
and certain other income or expenses. Adjusted EBITDA also
excludes: realized gain or loss on interest rate swaps (as the
Partnership in assessing its performance, views these gains or
losses as an element of interest expense); realized gain or loss on
derivative instruments resulting from amendments or terminations of
the underlying instruments; realized gain or loss on foreign
currency forward contracts; equity-accounted income (loss) and
other income (expense), net. Adjusted EBITDA also includes the
Partnership's proportionate share of Adjusted EBITDA from its
equity-accounted investments and excludes the non-controlling
interests' proportionate share of Adjusted EBITDA. The Partnership
does not have control over the operations of, nor does it have any
legal claim to the revenues and expenses of its equity-accounted
investments. Consequently, the cash flow generated by the
Partnership's equity-accounted investments may not be available for
use by the Partnership in the period that such cash flows are
generated.
Adjusted EBITDA is intended to provide additional information and
should not be considered as the sole measure of the Partnership's
performance or as a substitute for net income (loss) or other
measures of performance prepared in accordance with IFRS. In
addition, this measure does not have a standardized meaning and may
not be comparable to similar measures presented by other companies.
This non-IFRS measure is used by the Partnership's management, and
the Partnership believes that this supplementary metric assists
investors and other users of its financial reports in comparing its
financial and operating performance across reporting periods and
with other companies.
Non-IFRS Financial Measures
The following table includes reconciliations of Adjusted EBITDA to
net income (loss) for the periods presented in the Partnership's
Consolidated Financial Summary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
2022 |
|
|
|
|
|
|
|
2022 |
|
Restated(1)
|
|
2021 |
|
2022 |
|
2021 |
|
(in thousands of U.S. Dollars, unaudited) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Adjusted EBITDA |
129,146 |
|
|
179,528 |
|
|
109,595 |
|
|
308,674 |
|
|
229,865 |
|
|
Depreciation and amortization |
(70,150) |
|
|
(71,882) |
|
|
(81,560) |
|
|
(142,032) |
|
|
(158,809) |
|
|
Interest expense |
(59,490) |
|
|
(56,208) |
|
|
(49,475) |
|
|
(115,698) |
|
|
(97,159) |
|
|
Interest income |
355 |
|
|
58 |
|
|
21 |
|
|
413 |
|
|
49 |
|
|
Expenses and gains (losses) relating to equity-accounted
investments |
(5,932) |
|
|
526 |
|
|
(10,606) |
|
|
(5,406) |
|
|
(15,475) |
|
|
Impairment expense, net |
(38,040) |
|
|
— |
|
|
— |
|
|
(38,040) |
|
|
— |
|
|
Gain (loss) on dispositions, net |
15,700 |
|
|
— |
|
|
9,107 |
|
|
15,700 |
|
|
9,107 |
|
|
Realized and unrealized gain (loss) on derivative
instruments |
(3,108) |
|
|
10,231 |
|
|
(1,513) |
|
|
7,123 |
|
|
12,347 |
|
|
Foreign currency exchange gain (loss) |
630 |
|
|
1,024 |
|
|
(302) |
|
|
1,654 |
|
|
23 |
|
|
Other income (expenses), net |
(8,795) |
|
|
(10,834) |
|
|
(1,831) |
|
|
(19,629) |
|
|
(1,857) |
|
|
Adjusted EBITDA attributable to non-controlling
interests |
(371) |
|
|
(46) |
|
|
(713) |
|
|
(417) |
|
|
1,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax (expense) benefit |
(40,055) |
|
|
52,397 |
|
|
(27,277) |
|
|
12,342 |
|
|
(20,394) |
|
|
Income tax (expense) benefit |
|
|
|
|
|
|
|
|
|
|
Current |
66 |
|
|
511 |
|
|
(1,211) |
|
|
577 |
|
|
(2,193) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
(39,989) |
|
|
52,908 |
|
|
(28,488) |
|
|
12,919 |
|
|
(22,587) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)See
the unaudited interim condensed consolidated statements of income
(loss) above for additional information.
Adjusted EBITDA from equity-accounted investments, which is a
non-IFRS financial measure and should not be considered as an
alternative to equity accounted income (loss) or any other measure
of financial performance presented in accordance with IFRS,
represents our proportionate share of Adjusted EBITDA (as defined
above) from equity-accounted investments. This measure does not
have a standardized meaning, and may not be comparable to similar
measures presented by other companies. Adjusted EBITDA from
equity-accounted investments is summarized in the table
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
(in thousands of U.S. Dollars, unaudited) |
$ |
|
$ |
|
$ |
|
$ |
|
Equity-accounted income (loss) |
9,826 |
|
|
10,229 |
|
|
32,088 |
|
|
29,613 |
|
|
Less: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
(6,823) |
|
|
(7,551) |
|
|
(13,951) |
|
|
(15,116) |
|
|
Interest expense, net |
(1,481) |
|
|
(1,932) |
|
|
(2,594) |
|
|
(4,000) |
|
|
Income tax (expense) benefit |
|
|
|
|
|
|
|
|
Current |
— |
|
|
21 |
|
|
(36) |
|
|
(26) |
|
|
|
|
|
|
|
|
|
|
|
18,130 |
|
|
19,691 |
|
|
48,669 |
|
|
48,755 |
|
|
Less: |
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss) on derivative
instruments |
2,939 |
|
|
(2,005) |
|
|
11,052 |
|
|
3,522 |
|
|
Foreign currency exchange gain (loss) |
(567) |
|
|
861 |
|
|
123 |
|
|
145 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA from equity-accounted investments |
15,758 |
|
|
20,835 |
|
|
37,494 |
|
|
45,088 |
|
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