Teekay GP LLC, the general partner of Teekay LNG Partners L.P.
(Teekay LNG or the Partnership) (NYSE: TGP) today declared a cash
distribution of $0.57 per unit ($2.28 per unit on an annualized
basis) for the quarter ended June 30, 2009. The cash distribution
is payable on August 14, 2009 to all unit holders of record on July
29, 2009.
The Partnership also reported today its results for the quarter
ended March 31, 2009. During the first quarter of 2009, the
Partnership generated distributable cash flow(1) of $27.6 million,
compared to $21.9 million in the same quarter of the previous year.
The increase was mainly as a result of the acquisition of the two
Kenai and the four RasGas 3 LNG carriers during the second and
third quarters of 2008. On May 4, 2009, the Partnership declared a
cash distribution of $0.57 per unit for the quarter ended March 31,
2009. The cash distribution was paid on May 15, 2009 to all
unitholders of record on May 8, 2009.
"Results for the first quarter of 2009 were in-line with our
expectations," commented Peter Evensen, Chief Executive Officer of
Teekay GP LLC. "Our diversified portfolio of fixed-rate long-term
contracts, strong liquidity position, and fully-financed
newbuilding program support the stability of the Partnership's
distributable cash flows." Mr. Evensen added, "Through 2011, our
committed newbuildings will provide incremental distributable cash
flow to support future distribution increases."
Teekay LNG's Fleet
In April 2009, the Partnership took delivery of the first of
five Skaugen LPG/Multigas vessels, which commenced a 15-year
fixed-rate charter concurrently.
The following table summarizes the Partnership's fleet as of
July 1, 2009:
---------------------------------------------------------------------------
Number of Vessels
--------------------------------------------
Delivered Committed
Vessels Vessels Total
--------------------------------------------
LNG Carrier Fleet(i) 13 2 15
LPG Carrier Fleet 2 4 (ii) 6
Suezmax Tanker Fleet 8 - 8
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Total 23 6 29
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(i) Excludes Teekay's 33 percent interest in the four Angola LNG
newbuildings, as described below.
(ii) Represents the four Skaugen LPG carriers currently under construction,
as described below.
(1) Distributable cash flow is a non-GAAP financial measure used
by certain investors to measure the financial performance of the
Partnership and other master limited partnerships. Please see
Appendix B for a reconciliation of this non-GAAP measure to the
most directly comparable GAAP financial measure.
Future LNG/LPG Projects
Below is a summary of LNG and LPG newbuildings that the
Partnership has agreed to, or has the right to, acquire:
Tangguh LNG
The Partnership has agreed to acquire Teekay Corporation's
(Teekay's) 70 percent interest in two 155,000 cubic meter
newbuilding LNG carriers and expects the purchase to be completed
during third quarter of 2009. The Tangguh vessels will provide
transportation services to The Tangguh Production Sharing
Contractors, a consortium led by a subsidiary of BP plc, to service
the Tangguh LNG project in Indonesia. The vessels have been
chartered at fixed rates, with inflation adjustments, for a period
of 20 years. An Indonesian joint venture partner owns the remaining
30 percent interest in these vessels.
Skaugen LPG
The Partnership has agreed to acquire a total of five LPG
carriers from subsidiaries of IM Skaugen ASA (Skaugen), four of
which are currently under construction and will be purchased upon
their deliveries from the shipyard or from Teekay Corporation
scheduled in 2009 and 2010. Upon their delivery, the vessels will
commence service under 15-year fixed-rate charters to Skaugen. The
first of the five vessels was delivered in April 2009.
Angola LNG
As previously announced, a consortium in which Teekay has a 33
percent interest, has agreed to charter four newbuilding LNG
carriers for a period of 20 years to the Angola LNG Project, which
is being developed by subsidiaries of Chevron, Sonangol, BP, Total
and ENI. The vessels will be chartered at fixed rates, with
inflation adjustments, following their deliveries, which are
scheduled to commence in 2011. In accordance with an agreement
between Teekay and Teekay LNG, Teekay is obligated to offer the
Partnership its interest in these vessels and related charter
contracts no later than 180 days before delivery of the first of
these newbuilding LNG carriers.
Financial Summary
The Partnership reported adjusted net income(1) (as detailed in
Appendix A to this release) of $16.1 million for the quarter ended
March 31, 2009, compared to adjusted net income of $11.6 million
for the same period of the prior year. Adjusted net income excludes
a number of specific items which had the net effect of increasing
net income by $5.9 million and decreasing net income by $54.7
million for the three months ended March 31, 2009 and 2008,
respectively, as detailed in Appendix A. Including these items, the
Partnership reported net income attributable to the Partners, on a
GAAP(2) basis, of $22.0 million and a net loss attributable to the
Partners, on a GAAP basis(2)of $43.1 million for the three months
ended March 31, 2009 and 2008, respectively.
For accounting purposes, the Partnership is required to
recognize the changes in the fair value of its derivative
instruments on the statements of income (loss). This method of
accounting does not affect the Partnership's cash flows or the
calculation of distributable cash flow, but results in the
recognition of unrealized gains or losses on the statements of
income (loss).
The Partnership's financial statements for the prior periods
include historical results of vessels acquired by the Partnership
from Teekay, referred to herein as the Dropdown Predecessor, for
the period when these vessels were owned and operated by
Teekay.
(1) Adjusted net income is a non-GAAP financial measure. Please
refer to Appendix A to this release for a reconciliation of this
non-GAAP measure to the most directly comparable financial measure
under GAAP and information about specific items affecting net
income (loss) which are typically excluded by securities analysts
in their published estimates of the Partnership's financial
results.
(2) Commencing in 2009, and applied retroactively, in accordance
with SFAS 160, the Partnership's GAAP net income(loss) is presented
before non-controlling interest on the statements of Income (Loss).
Net income(loss) attributable to the Partners represents net
income(loss) attributable to the limited partners and general
partner of Teekay LNG.
Operating Results
The following table highlights certain financial information for
Teekay LNG's segments: the liquefied gas segment and the Suezmax
tanker segment (please refer to the "Teekay LNG's Fleet" section of
this release above and Appendix C for further details).
---------------------------------------------------------------------------
Three Months Ended Three Months Ended
March 31, 2009 March 31, 2008
(unaudited) (unaudited)
--------------------------------------------------------
Liquefied Suezmax Liquefied Suezmax
(in thousands of Gas Tanker Gas Tanker
U.S. dollars) Segment Segment Total Segment Segment Total
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net voyage
revenues(1),(3) 57,290 17,865 75,155 55,982 19,915 75,897
Vessel operating
expenses 12,589 6,152 18,741 11,769 6,638 18,407
Depreciation and
amortization 14,478 4,848 19,326 14,196 4,594 18,790
Cash flow from
vessel
operations(2) 40,005 9,208 49,213 35,083 11,284 46,367
---------------------------------------------------------------------------
(1) Net voyage revenues represents voyage revenues less voyage expenses,
which comprise all expenses relating to certain voyages, including
bunker fuel expenses, port fees, canal tolls and brokerage commissions.
Net voyage revenues is a non-GAAP financial measure used by certain
investors to measure the financial performance of shipping companies.
Please see the Partnership's web site at www.teekaylng.com for a
reconciliation of this non-GAAP measure as used in this release to the
most directly comparable GAAP financial measure.
(2) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense, excluding the
cash flow from vessel operations relating to the Partnership's Variable
Interest Entities and Dropdown Predecessors. Cash flow from vessel
operations is a non-GAAP financial measure used by certain investors to
measure the financial performance of shipping companies. Please see the
Partnership's web site at www.teekaylng.com for a reconciliation of this
non-GAAP measure as used in this release to the most directly comparable
GAAP financial measure.
(3) Commencing in the three months ended March 31, 2009, and applied
retroactively, the gains and losses related to derivative instruments
that are not designated as hedges for accounting purposes have been
reclassified to a separate line item in the statements of income (loss)
and are no longer included in the amounts above.
Liquefied Gas Segment
Cash flow from vessel operations from the Partnership's
liquefied gas segment increased to $40.0 million in the first
quarter of 2009 from $35.1 million in the same quarter of the prior
year, primarily due to the acquisition of the two Kenai LNG
carriers from Teekay in April 2008 and the unscheduled offhire of
the Cataluyna Spirit in the first quarter of 2008.
Suezmax Tanker Segment
Cash flow from vessel operations from the Partnership's Suezmax
tanker segment decreased to $9.2 million for the first quarter of
2009 from $11.3 million in the same quarter of the prior year. This
is primarily due to restructuring costs incurred to move certain
ship management functions from the Partnership's Spain office to a
subsidiary of Teekay, and a reduction in revenue relating to a
decrease in LIBOR, which affected the daily charter rates that are
adjusted for changes in LIBOR under the time-charter contracts for
five Suezmax tankers. Under the terms of the capital leases
relating to these vessels, there was a corresponding decrease in
the Partnership's lease payments, which is reflected as a decrease
to interest expense. Accordingly, these and future interest rate
adjustments do not impact the Partnerships' current or future cash
flows or net income.
Follow-on Equity Offering and Liquidity
On March 30, 2009, Teekay LNG completed a follow-on equity
offering for 4.0 million common units, generating gross proceeds of
$70.4 million. Proceeds, after offering expenses and underwriter
commissions, were used to repay amounts drawn under the
Partnership's revolving credit facilities.
As of March 31, 2009, the Partnership had total liquidity of
$567.2 million, comprised of $201.0 million in cash and cash
equivalents (of which $44.7 million is only available to the
Tangguh joint venture) and $366.3 million in undrawn medium-term
revolving credit facilities.
About Teekay LNG Partners L.P.
Teekay LNG Partners L.P. is a publicly-traded master limited
partnership formed by Teekay Corporation (NYSE: TK) as part of its
strategy to expand its operations in the LNG and LPG shipping
sectors. Teekay LNG Partners L.P. provides LNG, LPG and crude oil
marine transportation services under long-term, fixed-rate
time-charter contracts with major energy and utility companies
through its fleet of fifteen LNG carriers, six LPG carriers and
eight Suezmax class crude oil tankers. Two of the fifteen LNG
carriers are expected to be acquired by the Partnership during the
third quarter of 2009. Four of the six LPG carriers are
newbuildings scheduled for delivery in late-2009 and 2010.
Teekay LNG Partners' common units trade on the New York Stock
Exchange under the symbol "TGP".
--------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands of U.S. dollars, except unit data)
--------------------------------------------------------------------------
Three Months Ended
----------------------------------------
----------------------------------------
March 31, December 31, March 31,
2009 2008 2008
(unaudited) (unaudited) (unaudited)
--------------------------------------------------------------------------
VOYAGE REVENUES 75,673 88,993 76,305
--------------------------------------------------------------------------
OPERATING EXPENSES
Voyage expenses 518 1,581 408
Vessel operating expenses 18,741 20,414 18,407
Depreciation and amortization 19,326 20,113 18,790
General and administrative 3,555 5,834 4,455
Restructuring charge (1) 1,951 - -
--------------------------------------------------------------------------
44,091 47,942 42,060
--------------------------------------------------------------------------
Income from vessel operations 31,582 41,051 34,245
--------------------------------------------------------------------------
OTHER ITEMS
Interest expense (17,119) (37,092) (37,214)
Interest income 3,975 18,647 16,072
Realized and unrealized loss on
derivative instruments (2) (16,236) (73,944) (44,296)
Income tax recovery (expense) 250 (453) (80)
Foreign exchange gain (loss) (3) 20,428 3,597 (33,891)
Equity income (loss) (4) 3,873 1,549 (64)
Other - net (81) 287 (1)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net income (loss) 26,672 (46,358) (65,229)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net income (loss) attributable to:
Non-controlling interest (5) 4,691 (30,463) (23,006)
Dropdown Predecessor - - 894
Partners 21,981 (15,895) (43,117)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Limited partners' units outstanding:
Weighted-average number of common
units outstanding
- Basic and diluted 33,382,764 33,338,320 22,540,547
Weighted-average number of
subordinated units outstanding
- Basic and diluted 11,050,929 11,050,929 14,734,572
Weighted-average number of total
units outstanding
- Basic and diluted 44,433,693 44,389,249 37,275,119
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) The total estimated cost to be incurred in connection with the
Partnership's restructuring plan to move certain ship management
functions from the Partnership's office in Spain to a subsidiary of
Teekay is approximately $3 million of which $2.0 million was incurred
for the three months ended March 31, 2009. The remaining $1.0 million
is expected to be incurred during the remainder of the year.
(2) Commencing in the three months ended March 31, 2009, and applied
retroactively, the realized and unrealized gains and losses related to
derivative instruments that are not designated as hedges for accounting
purposes have been reclassified to a separate line item in the
statements of income (loss). The realized gains (losses) relate to the
amounts the Partnership actually paid to settle such derivative
instruments and the unrealized gains (losses) relate to the change in
fair value of such derivative instruments as detailed in the table
below.
Three Months Ended,
-----------------------------------------
March 31, December 31, March 31,
2009 2008 2008
-------- ----------- --------
Realized (losses) relating to:
Interest rate swaps (5,900) (2,009) (501)
Toledo Spirit time-charter
derivative contract - (8,620) -
-----------------------------------------
(5,900) (10,629) (501)
-----------------------------------------
Unrealized gains (losses)
relating to:
Interest rate swaps (15,414) (72,590) (41,101)
Toledo Spirit time-charter
derivative contract 5,078 9,275 (2,694)
-----------------------------------------
(10,336) (63,315) (43,795)
-----------------------------------------
Total realized and unrealized
(losses) on derivative
instruments (16,236) (73,944) (44,296)
-----------------------------------------
(3) The Partnership's Euro-denominated revenues currently approximate its
Euro-denominated expenses and debt service costs. As a result, the
Partnership currently is not exposed materially to foreign currency
fluctuations. However, for accounting purposes, the Partnership is
required to revalue all foreign currency-denominated monetary assets and
liabilities based on the prevailing exchange rate at the end of each
reporting period. This revaluation does not affect the 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 statements of income (loss).
(4) Equity income (loss) includes unrealized gains on derivative instruments
of $2.8 million, nil and nil for the three months ended March 31, 2009,
December 31, 2008 and March 31, 2008, respectively.
(5) Commencing in 2009, and applied retroactively in accordance with SFAS
160, net income (loss) is shown before non-controlling interest.
---------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED BALANCE SHEETS (1)
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
As at As at
March 31, 2009 December 31, 2008
(unaudited) (unaudited)
-------------- -----------------
ASSETS
Cash and cash equivalents 200,960 117,641
Restricted cash - current 28,671 28,384
Other current assets 16,348 18,388
Advances to affiliates 9,980 9,583
Restricted cash - long-term 603,544 614,565
Vessels and equipment 1,989,536 2,007,321
Advances on newbuilding contracts 54,871 200,557
Net investment in direct financing
lease 204,292 -
Derivative assets 121,318 167,326
Investment in and advances to joint
venture 68,167 64,382
Other assets 26,300 27,266
Intangible assets 139,522 141,805
Goodwill 35,631 35,631
---------------------------------------------------------------------------
Total Assets 3,499,140 3,432,849
---------------------------------------------------------------------------
---------------------------------------------------------------------------
LIABILITIES AND EQUITY
Accounts payable, accrued liabilities
and unearned revenue 46,593 44,614
Current portion of long-term debt and
capital leases 183,023 184,971
Current portion of long-term debt
related to vessels to be delivered
to the Partnership (2) 19,143 39,446
Advances from affiliates and joint
venture partners 93,904 74,300
Long-term debt and capital leases 1,666,449 1,699,231
Long-term debt related to vessels to
be delivered to the Partnership (2) 331,288 276,304
Derivative liabilities 224,929 260,602
Other long-term liabilities 56,591 44,668
Equity
Non-controlling interest (3) 7,553 2,862
Partners' equity 869,667 805,851
---------------------------------------------------------------------------
Total Liabilities and Total Equity 3,499,140 3,432,849
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Due to the Partnership's agreement to acquire Teekay's 70 percent
interest in the Tangguh LNG Project, it is required to consolidate
Tangguh under U.S. generally accepted accounting principles. Due to the
Partnership's acquisition of a 40 percent interest in the four RasGas 3
LNG carriers on May 6, 2008, it is required to equity account for its
investment in the RasGas 3 joint venture under U.S. generally accepted
accounting principles.
(2) As at March 31, 2009, includes the debt associated with the Tangguh LNG
Carriers, which the Partnership had not yet acquired from Teekay.
(3) Non-controlling interest includes 100 percent of the equity interest in
the Tangguh project as the Partnership had not yet acquired the interest
in the Tangguh project and is consolidating the Tangguh project as
described in note (1) above and the 30 percent portion of Teekay Nakilat
(RasGasII Project) which the Partnership does not own.
---------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
Three Months Ended March 31,
2009 2008
(unaudited) (unaudited)
---------- ----------
Cash and cash equivalents provided by
(used for)
OPERATING ACTIVITIES
---------------------------------------------------------------------------
Net operating cash flow 54,061 35,528
---------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from long-term debt 85,695 78,642
Debt issuance costs - (1,083)
Scheduled repayments of long-term debt (31,897) (9,154)
Prepayments of long-term debt (25,000) -
Scheduled repayments of capital lease and
other long-term liabilities (2,347) (2,241)
Proceeds from follow-on equity offering 68,532 -
Advances to and from affiliates 19,207 (2,069)
Prepayment of advances from affiliates - 578
Decrease in restricted cash 628 942
Cash distributions paid (26,789) (20,552)
Equity distribution from Teekay Corporation - 3,281
---------------------------------------------------------------------------
Net financing cash flow 88,029 48,344
---------------------------------------------------------------------------
INVESTING ACTIVITIES
Receipts from direct financing lease 1,341 -
Advances to joint venture (1,210) (3,085)
Expenditures for vessels and equipment (58,902) (78,085)
---------------------------------------------------------------------------
Net investing cash flow (58,771) (81,170)
---------------------------------------------------------------------------
Increase in cash and cash equivalents 83,319 2,702
Cash and cash equivalents, beginning of
the period 117,641 91,891
---------------------------------------------------------------------------
Cash and cash equivalents, end of the
period 200,960 94,593
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME
(in thousands of U.S. dollars, except per share data)
Set forth below is a reconciliation of the Partnership's
unaudited adjusted net income, a non-GAAP financial measure, to net
income (loss) as determined in accordance with GAAP, adjusted for
some of the significant items of income and expense that affected
the Partnership's net income (loss) for the three months ended
March 31, 2009 and 2008, all of which items are typically excluded
by securities analysts in their published estimates of the
Partnership's financial results:
---------------------------------------------------------------------------
Three Months Ended Three Months Ended
March 31, 2009 March 31, 2008
(unaudited) (unaudited)
---------------------------------------------------------------------------
Net income (loss) - GAAP basis 26,672 (65,229)
Less:
Net (income) loss attributable
to non-controlling interest (4,691) 23,006
Net (income) loss attributable
to Dropdown Predecessor - (894)
Net income (loss) attributable
to the partners 21,981 (43,117)
Add (subtract) specific items affecting
net income (loss):
Foreign currency exchange (gains)
losses (1) (20,428) 33,891
Unrealized losses from derivative
instruments (2) 10,336 43,792
Unrealized gains from derivative
instruments from equity accounted
investees (2) (2,806) -
Restructuring charge (3) 1,951 -
Non-controlling interests' share
of items above 5,082 (23,004)
---------------------------------------------------------------------------
Total adjustments (5,865) 54,679
---------------------------------------------------------------------------
Adjusted net income 16,116 11,562
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Foreign currency exchange gains and losses primarily relate to the
revaluation of the Partnership's debt denominated in Euros.
(2) Reflects the unrealized gain or loss due to changes in the
mark-to-market value of derivative instruments that are not designated
as hedges for accounting purposes.
(3) Restructuring charges were incurred in connection with the Partnership's
restructuring plan to move certain ship management functions from the
Partnership's office in Spain to a subsidiary of Teekay.
---------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
APPENDIX B - RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
Description of Non-GAAP Financial Measure - Distributable Cash
Flow (DCF)
Distributable cash flow represents net income (loss) adjusted
for depreciation and amortization expense, non-cash items,
estimated maintenance capital expenditures, gains and losses on
vessel sales, unrealized gains and losses from derivatives, income
taxes and foreign exchange related items. 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.
Distributable cash flow is a quantitative standard used in the
publicly-traded partnership investment community to assist in
evaluating a partnership's ability to make quarterly cash
distributions. Distributable cash flow is not required by
accounting principles generally accepted in the United States and
should not be considered as an alternative to net income (loss) or
any other indicator of the Partnership's performance required by
accounting principles generally accepted in the United States. The
table below reconciles distributable cash flow to net income
(loss).
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended
March 31, 2009
(unaudited)
---------------------------------------------------------------------------
Net income 26,672
Add:
Depreciation and amortization 19,326
Unrealized gains and losses from derivatives and
other non-cash items 12,604
Partnership's share of RasGas 3 DCF before
estimated maintenance capital expenditures 4,145
Less:
Income tax recovery (250)
Estimated maintenance capital expenditures (8,789)
Equity income of RasGas 3 joint venture (3,873)
Foreign exchange gain (20,428)
---------------------------------------------------------------------------
Distributable Cash Flow before Non-controlling interest 29,407
---------------------------------------------------------------------------
Non-controlling interests' share of DCF before
estimated maintenance capital expenditures (1,807)
---------------------------------------------------------------------------
Distributable Cash Flow 27,600
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
APPENDIX C - SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
Three Months Ended March 31, 2009
(unaudited)
Liquefied Suezmax Tanker
Gas Segment Segment Total
---------------------------------------------------------------------------
Net voyage revenues (1)(2) 57,290 17,865 75,155
Vessel operating expenses 12,589 6,152 18,741
Depreciation and amortization 14,478 4,848 19,326
General and administrative 2,134 1,421 3,555
Restructuring charge 867 1,084 1,951
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Income from vessel operations 27,222 4,360 31,582
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended March 31, 2008
(unaudited)
Liquefied Suezmax Tanker
Gas Segment Segment (2) Total
---------------------------------------------------------------------------
Net voyage revenues (1)(2) 55,982 19,915 75,897
Vessel operating expenses 11,769 6,638 18,407
Depreciation and amortization 14,196 4,594 18,790
General and administrative 2,462 1,993 4,455
---------------------------------------------------------------------------
Income from vessel operations 27,555 6,690 34,245
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Net voyage revenues represents voyage revenues less voyage expenses,
which comprise all expenses relating to certain voyages, including
bunker fuel expenses, port fees, canal tolls and brokerage commissions.
Net voyage revenues is a non-GAAP financial measure used by certain
investors to measure the financial performance of shipping companies.
Please see the Partnership's web site at www.teekaylng.com for a
reconciliation of this non-GAAP measure as used in this release to the
most directly comparable GAAP financial measure.
(2) Commencing in the three months ended March 31, 2009, and applied
retroactively, the gains and losses related to derivative instruments
that are not designated as hedges for accounting purposes have been
reclassified to a separate line item in the statements of income (loss)
and are no longer included in the amounts above.
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 regarding: the
Partnership's future growth prospects; Teekay Corporation offering
its interest in the Angola LNG Project vessels to the Partnership;
the timing of LNG and LPG newbuilding deliveries and incremental
cash flows relating to such newbuildings; the stability of the
Partnership's distributable cash flows; and potential future cash
distribution increases. The following factors are among those that
could cause actual results to differ materially from the
forward-looking statements, which involve risks and uncertainties,
and that should be considered in evaluating any such statement: the
unit price of equity offerings to finance acquisitions; changes in
production of LNG or LPG, either generally or in particular
regions; required approvals by the conflicts committee of the board
of directors of the Partnership's general partner to acquire any
LNG projects offered to the Partnership by Teekay Corporation; less
than anticipated revenues or higher than anticipated costs or
capital requirements; changes in trading patterns significantly
affecting overall vessel tonnage requirements; changes in
applicable industry laws and regulations and the timing of
implementation of new laws and regulations; the potential for early
termination of long-term contracts and inability of the Partnership
to renew or replace long-term contracts; LNG and LPG project
delays, shipyard production delays; the Partnership's ability to
raise financing to purchase additional vessels or to pursue LNG or
LPG projects; changes to the amount or proportion of revenues,
expenses, or debt service costs denominated in foreign currencies;
and other factors discussed in Teekay LNG Partners' filings from
time to time with the SEC, including its Report on Form 20-F for
the fiscal year ended December 31, 2008. 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.
Contacts: Teekay LNG Partners L.P. Kent Alekson Investor
Relations Enquiries (604) 609-6442 Teekay LNG Partners L.P. Alana
Duffy Media Enquiries (604) 844-6605 www.teekaylng.com
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