HAMILTON, BERMUDA--(Marketwired - August 8, 2013)
- Highlights
- Generated distributable cash flow(1)of $55.4
million in the second quarter of 2013.
- Declared second quarter 2013 cash distribution of
$0.675 per unit.
- In June 2013, secured five-year time-charter
contracts with Cheniere for the two LNG carrier newbuildings
ordered in December 2012.
- In July 2013, exercised options with DSME for two
additional MEGI LNG carrier newbuildings and secured five
additional newbuilding options.
- In August 2013, agreed to acquire and bareboat
charter-back up to two newbuilding LNG carriers, with Awilco LNG
ASA.
- Total liquidity of $300 million as at June 30,
2013, giving pro forma effect to proceeds from the $40 million
common unit private placement completed on July 30, 2013.
Teekay GP L.L.C., the general partner of Teekay
LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE: TGP),
today reported the Partnership's results for the quarter ended June
30, 2013. During the second quarter of 2013, the Partnership
generated distributable cash flow(1) of $55.4 million, compared to
$56.8 million in the same quarter of the previous year. The
decrease in distributable cash flow was primarily the result of a
higher number of off - hire days in the second quarter of 2013,
compared to the same period in 2012, due to scheduled dry dockings,
and lower charter rates on two of the Partnership's conventional
tankers as a result of renegotiated rates effective October 2012
for a period of two years. The decreases were partially offset by
increased distributable cash flow as a result of the Partner ship's
acquisition of a 50 percent interest in Exmar LPG BVBA, a liquefied
petroleum gas (LPG) carrier joint venture with Exmar, in February
2013 and higher rates on charter contracts entered into during 2012
for certain of the MALT LNG Carriers.
On July 12, 2013, the Partnership declared a cash
distribution of $0.675 per unit for the quarter ended June 30,
2013. The cash distribution is payable on August 9, 2013 to all
unitholders of record on July 23, 2013.
(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 financial measure
under United States generally accepted accounting principles
(GAAP).
Recent Transactions
Secured Fixed-Rate Employment for the Two LNG
Carrier Newbuildings Ordered in December 2012
In June 2013, Teekay LNG was awarded five-year
time-charter contracts with Cheniere Marketing LLC (Cheniere) for
the two 173,400 cubic meter (cbm) liquefied natural gas (LNG)
carrier newbuildings the Partnership ordered in December 2012. The
newbuilding LNG carriers are currently under construction by Daewoo
Shipbuilding & Marine Engineering Co., Ltd., (DSME) of South
Korea and are scheduled to deliver in the first half of 2016. Upon
delivery, the vessels will commence their five-year charters with
Cheniere, which will be exporting LNG from their Sabine Pass LNG
export facility in Louisiana . These newbuilding vessels will be
equipped with the M-type, Electronically Controlled, Gas Injection
(MEGI) twin engines, which are expected to be significantly more
fuel-efficient and have lower emission levels than other engines
currently being utilized in LNG shipping.
Exercised Options for Additional Newbuilding
LNG/LPG Carriers
In July 2013, Teekay LNG exercised a portion of
its existing options with DSME for two additional 173,400 cbm LNG
carrier newbuildings, which will also be constructed with the MEGI
twin engines. The Partnership intends to secure long- term contract
employment for both vessels prior to their deliveries in 2016. In
connection with the exercise of these two newbuilding options, the
Partnership secured additional options with DSME for up to five
additional LNG carrier newbuildings.
In addition, Exmar LPG BVBA, the Partnership's
50/50 LPG joint venture with Belgium-based Exmar NV, exercised its
options to order two additional Midsize Gas Carrier (MGC)
newbuildings, which will be constructed by Hanjin Heavy Industries
and Construction Co., Ltd. (Hanjin) and scheduled for delivery in
2017.
Acquisition and Bareboat Charter Back of up to Two
LNG Carrier Newbuildings
In August 2013, Teekay LNG agreed to acquire a
155,900 cbm LNG carrier newbuilding from Norway -based Awilco LNG
ASA (Awilco), which is currently under construction by DSME in
South Korea. The vessel is expected to deliver in September 2013,
at which time Awilco will sell the vessel to Teekay LNG and
bareboat charter the vessel back on a five -year fixed-rate charter
contract (plus a one-year extension option) with a fixed-price
purchase obligation at the end of the initial term (and option
period). The net vessel purchase price of $155 million reflects a
$50 million prepayment by Awilco for future charter hire
installments. As part of the transaction, Teekay LNG may also have
the opportunity to acquire and bareboat charter back a second
155,900 cbm LNG carrier newbuilding from Awilco, currently under
construction by DSME, under similar terms. The second LNG carrier
newbuilding is expected to deliver in late-2013 or early-2014.
"Since reporting first quarter results in May, the
Partnership's business development activities have resulted in
several positive outcomes," commented Peter Evensen, Chief
Executive Officer of Teekay GP LLC. "This includes securing new
time-charter contracts and newbuilding vessel orders, and acquiring
on-the-water vessels with existing contracts, all of which are
expected to result in near and long-term distributable cash flow
growth. To begin with, in June, we were awarded five-year
time-charters with Cheniere for the two LNG carrier newbuildings we
ordered in December 2012. These vessels' attractive 173,400 cubic
meter cargo size and fuel-efficient MEGI engines were key factors
in being awarded these important new contracts. These vessels will
be among the first to export LNG from the Sabine Pass facility in
the U.S. Gulf Coast."
Mr. Evensen continued, "Based on our successful
chartering efforts for the first two MEGI newbuildings, in late
-July, the Partnership exercised a portion of its options with DSME
to order an additional two 173,400 cubic meter MEGI LNG carrier
newbuildings. As with the two carriers we ordered in December, we
believe the 2016 delivery dates for these vessels will be
well-timed for the next major wave of LNG carrier demand which is
expected to follow the large number of LNG export projects that are
scheduled to come on-stream starting in late-2015. While we expect
to secure long-term financing for these vessels upon securing
time-charter employment, we will fund the initial shipyard
installments with a portion of the proceeds from the Partnership's
recent $40 million common unit private placement transaction. As
part of this vessel order, the Partnership also secured five
additional options from DSME for future LNG carrier orders."
"Our position in the attractive liquefied
petroleum gas sector also continues to grow," Mr. Evensen added.
"Last week, our LPG joint venture with Exmar exercised in-the-money
options with Hanjin to construct two additional medium-size gas
carrier, or MGC, newbuildings, bringing the joint venture's MGC
newbuilding program to a total of 10 vessels."
"Looking more near-term," Mr. Evensen continued,
"last week, the Partnership announced an agreement to acquire up to
two 155,900 cubic meter LNG carrier newbuildings from Awilco LNG,
with a five-year fixed-rate bareboat charter back to Awilco at a
net price of $155 million per vessel. Assuming the option for the
second vessel is exercised, these two vessels, which are scheduled
to deliver from DSME in September and November 2013, are expected
to provide the Partnership with near-term cash flow accretion and
bridge the gap between now and when our other newbuilding vessels
begin delivering in 2016."
Mr. Evensen added, "In addition to our recent
announcements, the Partnership is currently involved in several LNG
shipping and floating regasification project tenders with start-up
dates in the late-2015 through 2017 that would generate further
accretive distributable cash flows for the Partnership."
Financial Summary
The Partnership reported adjusted net income
attributable to the partners(2) (as detailed in Appendix A to this
release) of $41.5 million for the quarter ended June 30, 2013,
compared to $40.5 million for the same period of the prior year.
Adjusted net income attributable to the partners excludes a number
of specific items that had the net effect of increasing net income
by $28.1 million and decreasing net income by $2.8 million for the
three months ended June 30, 2013 and 2012, respectively, as
detailed in Appendix A. Including these items, the Partnership
reported net income attributable to the partners, on a GAAP basis,
of $69.7 million and $37.7 million for the three months ended June
30, 2013 and 2012, respectively.
For the six months ended June 30, 2013, the
Partnership reported adjusted net income attributable to the
partners (2) (as detailed in Appendix A to this release) of $80.6
million, compared to $76.1 million for the same period of the prior
year. Adjusted net income attributable to the partners excludes a
number of specific items that had the net effect of increasing net
income by $43.5 million and decreasing net income by $13.7 million
for the six months ended June 30, 2013 and 2012, respectively, as
detailed in Appendix A. Including these items, the Partnership
reported net income attributable to the partners, on a GAAP basis,
of $124.1 million and $62.4 million for the six months ended June
30, 2013 and 2012, respectively.
For accounting purposes, the Partnership is
required to recognize the changes in the fair value of its
derivative instruments on its consolidated statements of income.
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 consolidated
statements of income as detailed in notes 2, 3 and 4 to the Summary
Consolidated Statements of Income included in this release.
(2) Adjusted net income attributable to the
partners 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 which are
typically excluded by securities analysts in their published
estimates of the Partnership's financial results.
Operating Results
The following table highlights certain financial
information for Teekay LNG's two segments: the Liquefied Gas
segment and the Conventional Tanker segment (please refer to the
"Teekay LNG's Fleet" section of this release below and Appendices C
to F for further details).
|
Three Months Ended |
Three Months Ended |
|
June 30, 2013 |
June 30, 2012 |
|
(unaudited) |
(unaudited) |
(in thousands of U.S.
Dollars) |
Liquefied Gas Segment |
Conventional Tanker
Segment |
|
Total |
Liquefied Gas Segment |
Conventional Tanker
Segment |
Total |
Net voyage revenues(i) |
67,863 |
27,532 |
|
95,395 |
67,573 |
28,662 |
96,235 |
Vessel operating expenses |
13,683 |
11,131 |
|
24,814 |
11,774 |
10,403 |
22,177 |
Depreciation and amortization |
18,329 |
6,827 |
|
25,156 |
17,309 |
7,487 |
24,796 |
CFVO from consolidated vessels(ii) |
52,581 |
12,892 |
|
65,473 |
54,259 |
16,740 |
70,999 |
CFVO from equity accounted vessels(iii) |
47,162 |
- |
|
47,162 |
38,035 |
- |
38,035 |
Total CFVO(ii) |
99,743 |
12,892 |
|
112,635 |
92,294 |
16,740 |
109,034 |
(i) |
|
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 Appendix C for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable
GAAP financial measure. |
|
|
|
(ii) |
|
Cash flow from vessel operations (CFVO) from consolidated vessels represents income from
vessel operations before (a) depreciation and amortization expense,
(b) amortization of in-process revenue contracts and includes (c)
adjustments for direct financing leases and two Suezmax tankers to
a cash basis. CFVO is included because certain investors use this
data to measure a company's financial performance. CFVO is not
required by GAAP and should not be considered as an alternative to
net income, equity income or any other indicator of the
Partnership's performance required by GAAP. Please see Appendix E for a reconciliation of CFVO from
consolidated vessels (a non-GAAP measure) as used in this release
to the most directly comparable GAAP financial measure. |
|
|
|
(iii) |
|
The Partnership's equity accounted investments for the three
months ended June 30, 2013 and 2012 include the Partnership's 40
percent interest in Teekay Nakilat (III) Corporation, which owns
four LNG carriers; the Partnership's 50 percent interest in the
Excalibur and Excelsior joint ventures, which owns one LNG carrier
and one regasification unit, respectively; the Partnership's 33
percent interest in four LNG carriers servicing the Angola LNG
Project; and the Partnership's 52 percent interest in MALT LNG
Holdings ApS, the joint venture between the Partnership and
Maurbeni Corporation, which owns six LNG carriers (Malt LNG Carriers). The Partnership's equity accounted
investments for the three months ended June 30, 2013 also includes
the Partnership's acquisition of a 50 percent interest in Exmar LPG
BVBA, the joint venture between the Partnership and Exmar NV,
completed in February 2013, which currently owns and charters-in 26
vessels in the LPG carrier segment, including ten newbuildings.
Please see Appendix F for a description and
reconciliation of CFVO from equity accounted vessels (a non-GAAP
measure) as used in this release to the most directly comparable
GAAP financial measure. |
Liquefied Gas Segment
Cash flow from vessel operations from the
Partnership's Liquefied Gas segment, excluding equity accounted
vessels, decreased to $52.6 million in the second quarter of 2013
from $54.3 million in the same quarter of the prior year. The
decrease is primarily due to higher vessel operating expenditures
due to the scheduled dry dockings of the first Tangguh project LNG
carrier and the Catalunya Spirit during the second quarter of 2013
and preparations for the dry docking of the second Tangguh project
LNG carrier scheduled for the fourth quarter of 2013, partially
offset by the scheduled dry docking of the Hispania Spirit in the
second quarter of the prior year.
Cash flow from vessel operations from the
Partnership's equity accounted vessels in the Liquefied Gas segment
increased to $47.2 million in the second quarter of 2013 from $38.0
million in the same quarter of the prior year. This increase was
primarily due to the acquisition of a 50 percent interest in the
Exmar LPG BVBA joint venture in February 2013 and higher rates on
charter contracts entered into during 2012 for certain of the MALT
LNG Carriers.
Conventional Tanker Segment
Cash flow from vessel operations from the
Partnership's Conventional Tanker segment decreased to $12.9
million in the second quarter of 2013 from $16.7 million in the
same quarter of the prior year, primarily as a result of the
European Spirit being off-hire for 25 days during the second
quarter of 2013 due to a scheduled dry docking and amendments to
two of the Partnership's Suezmax tanker charter contracts which
temporarily reduced the daily hire rate for each of these vessels
by $12,000 between October 2012 and September 2014. During this
period, however, if Suezmax spot tanker rates exceed the amended
rates, the charterer will pay the Partnership the excess amount up
to a maximum amount equal to the original daily charter rate.
Teekay LNG's Fleet
The following table summarizes the Partnership's
fleet as of August 1, 2013:
|
|
|
|
Number of Vessels |
|
|
|
Owned Vessels |
|
In-Chartered Vessels |
|
Newbuildings |
Total |
LNG Carrier Fleet |
|
27(i) |
|
- |
|
5 |
32 |
LPG/Multigas Carrier
Fleet |
|
16(ii) |
|
5(iii) |
|
10(iii) |
31 |
Conventional Tanker
Fleet |
|
11 |
|
- |
|
- |
11 |
Total |
|
54 |
|
5 |
|
15 |
74 |
(i) |
|
The Partnership's ownership interests in these vessels ranges
from 33 percent to 100 percent. |
(ii) |
|
The Partnership's ownership interests in these vessels ranges
from 50 percent to 99 percent. |
(iii) |
|
The Partnership's interest in these vessels is 50
percent. |
Liquidity and Continuous Offering Program
Update
In May 2013, the Partnership implemented a
continuous offering program (COP) under which the Partnership may
issue new common units, representing limited partner interests, at
market prices up to maximum aggregate amount of $100 million.
Through June 30, 2013, the Partnership sold an aggregate of 124,071
common units under the COP, generating proceeds of approximately
$4.9 million (including the Teekay LNG general partner's 2 percent
proportionate capital contribution and net of offering costs). The
net proceeds from the issuance of these common units were used for
general partnership purposes.
As of June 30, 2013, the Partnership had total
liquidity of $262.3 million (comprised of $97.6 million in cash and
cash equivalents and $164.7 million in undrawn credit facilities).
Giving effect for the $40 million common unit private placement
completed in July 2013, the Partnership's liquidity at June 30,
2013 would have been approximately $300 million.
Conference Call
The Partnership plans to host a conference call on
Friday, August 9, 2013 at 11:00 a.m. (ET) to discuss the results
for the second quarter of 2013. All unitholders and interested
parties are invited to listen to the live conference call by
choosing from the following options:
- By dialing (866) 322-2356 or (416) 640-3405, if
outside North America, and quoting conference ID code 9295387.
- By accessing the webcast, which will be available
on Teekay LNG's website at www.teekaylng.com (the archive will
remain on the web site for a period of 30 days).
A supporting Second Quarter 2013 Earnings
Presentation will also be available at www.teekaylng.com in advance
of the conference call start time.
The conference call will be recorded and made
available until Friday, August 16, 2013. This recording can be
accessed following the live call by dialing (888) 203-1112 or (647)
436-0148, if outside North America, and entering access code
9295387.
About Teekay LNG Partners L.P.
Teekay LNG Partners is the world's third largest
independent owner and operator of LNG carriers, providing LNG, LPG
and crude oil marine transportation services primarily under
long-term, fixed-rate charter contracts through its interests in 32
LNG carriers (including one LNG regasification unit and five
newbuildings), 31 LPG/Multigas carriers (including five
chartered-in LPG carriers and 10 newbuildings) and 11 conventional
tankers. The Partnership's interests in these vessels range from 33
to 100 percent. Teekay LNG Partners L.P. is a publicly-traded
master limited partnership (MLP) 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 trade on the New
York Stock Exchange under the symbol "TGP".
TEEKAY LNG PARTNERS
L.P. |
|
SUMMARY
CONSOLIDATED STATEMENTS OF INCOME |
|
(in thousands of U.S. Dollars, except units
outstanding) |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, 2013 |
|
March 31, 2013 |
|
June 30, 2012 |
|
June 30, 2013 |
|
June 30, 2012 |
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
VOYAGE REVENUES |
|
96,619 |
|
97,107 |
|
96,477 |
|
193,726 |
|
195,817 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
1,224 |
|
391 |
|
242 |
|
1,615 |
|
585 |
|
Vessel operating
expenses(1) |
|
24,814 |
|
25,316 |
|
22,177 |
|
50,130 |
|
44,564 |
|
Depreciation and
amortization |
|
25,156 |
|
24,143 |
|
24,796 |
|
49,299 |
|
49,553 |
|
General and administrative(1) |
|
4,744 |
|
5,469 |
|
4,433 |
|
10,213 |
|
9,693 |
|
Total operating
expenses |
|
55,938 |
|
55,319 |
|
51,648 |
|
111,257 |
|
104,395 |
|
Income from vessel
operations |
|
40,681 |
|
41,788 |
|
44,829 |
|
82,469 |
|
91,422 |
|
OTHER
ITEMS |
|
|
|
|
|
|
|
|
|
|
|
Equity income(2) |
|
39,425 |
|
26,424 |
|
11,086 |
|
65,849 |
|
28,134 |
|
Interest expense |
|
(13,132 |
) |
(13,248 |
) |
(13,734 |
) |
(26,380 |
) |
(26,532 |
) |
Interest income |
|
782 |
|
515 |
|
949 |
|
1,297 |
|
1,881 |
|
Realized and unrealized gain
(loss) on derivative instruments(3) |
|
10,666 |
|
(8,285 |
) |
(18,145 |
) |
2,381 |
|
(34,048 |
) |
Foreign exchange (loss)
gain(4) |
|
(2,787 |
) |
8,211 |
|
13,927 |
|
5,424 |
|
4,259 |
|
Other income - net |
|
407 |
|
469 |
|
480 |
|
876 |
|
694 |
|
|
|
35,361 |
|
14,086 |
|
(5,437 |
) |
49,447 |
|
(25,612 |
) |
Net income before tax
(expense) recovery |
|
76,042 |
|
55,874 |
|
39,392 |
|
131,916 |
|
65,810 |
|
Income tax (expense) recovery |
|
(800 |
) |
(843 |
) |
(132 |
) |
(1,643 |
) |
129 |
|
Net income |
|
75,242 |
|
55,031 |
|
39,260 |
|
130,273 |
|
65,939 |
|
Non-controlling interest in
net income |
|
5,581 |
|
586 |
|
1,572 |
|
6,167 |
|
3,520 |
|
General Partner's interest in
net income |
|
6,278 |
|
5,965 |
|
5,293 |
|
12,243 |
|
10,325 |
|
Limited partners' interest in
net income |
|
63,383 |
|
48,480 |
|
32,395 |
|
111,863 |
|
52,094 |
|
Weighted-average number of
common units outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
· Basic |
|
69,713,500 |
|
69,683,763 |
|
64,857,900 |
|
69,698,714 |
|
64,857,900 |
|
|
· Diluted |
|
69,732,097 |
|
69,686,503 |
|
64,857,900 |
|
69,709,382 |
|
64,857,900 |
|
Total number of units outstanding at end of period |
|
69,813,899 |
|
69,683,763 |
|
64,857,900 |
|
69,813,899 |
|
64,857,900 |
|
(1) To more closely align the Partnership's Statement of
Income presentation to many of its peers, the cost of ship
management services of $1.9 million and $3.8 million for the three
and six months ended June 30, 2013, respectively, and $1.9 million
for the three months ended March 31, 2013, have been included as
vessel operating expenses. Prior to 2013, the Partnership included
these amounts in general and administrative expenses. All such
costs incurred in comparative periods have been reclassified from
general and administrative expenses to vessel operating expenses to
conform to the presentation adopted in the current period. The
amounts reclassified were $2.0 million and $3.9 million for the
three and six months ended June 30, 2012, respectively. |
(2)Equity income includes unrealized gains (losses) on
derivative instruments as detailed in the table below: |
|
Three
Months Ended |
|
Six
Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
2013 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
Equity income |
39,425 |
|
26,424 |
|
11,086 |
|
65,849 |
|
28,134 |
Proportionate share of unrealized gains (losses) on
derivative instruments |
14,135 |
|
4,599 |
|
(8,242) |
|
18,734 |
|
(3,181) |
Equity income excluding unrealized gains (losses) on
derivative instruments |
25,290 |
|
21,825 |
|
19,328 |
|
47,115 |
|
31,315 |
Equity income also includes the Partnership's
share of its joint venture Exmar LPG BVBA which is based on
preliminary purchase price allocations.
(3) The realized (losses) gains relate to the
amounts the Partnership actually paid to settle 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 |
|
Six
Months Ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
2013 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
Realized losses relating
to: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
(9,496 |
) |
(9,526 |
) |
(9,284 |
) |
(19,022 |
) |
(18,363 |
) |
Toledo Spirit time-charter derivative contract |
|
(23 |
) |
- |
|
(6 |
) |
(23 |
) |
(38 |
) |
|
|
(9,519 |
) |
(9,526 |
) |
(9,290 |
) |
(19,045 |
) |
(18,401 |
) |
Unrealized gains (losses) relating
to: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
19,885 |
|
(1,259 |
) |
(8,855 |
) |
18,626 |
|
(15,947 |
) |
Toledo Spirit time-charter derivative contract |
|
300 |
|
2,500 |
|
- |
|
2,800 |
|
300 |
|
|
|
20,185 |
|
1,241 |
|
(8,855 |
) |
21,426 |
|
(15,647 |
) |
Total realized and unrealized gains (losses) on derivative
instruments |
|
10,666 |
|
(8,285 |
) |
(18,145 |
) |
2,381 |
|
(34,048 |
) |
(4) 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 consolidated statements of
income.
Foreign exchange (loss) gain includes realized
gains relating to the amounts the Partnership received to settle
the Partnership's non-designated cross currency swap that was
entered into as an economic hedge in relation to the Partnership's
Norwegian Kroner (NOK)-denominated unsecured bonds. The Partnership
issued NOK 700 million of unsecured bonds in May 2012 that mature
in 2017. Foreign exchange (loss) gain also includes unrealized
(losses) gains relating to the change in fair value of such
derivative instruments, partially offset by unrealized gains 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, |
|
|
|
2013 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
Realized (losses) gains on cross-currency swaps |
|
(67 |
) |
58 |
|
48 |
|
(9 |
) |
48 |
|
Unrealized losses on cross-currency swaps |
|
(2,731 |
) |
(6,191 |
) |
(10,270 |
) |
(8,922 |
) |
(10,270 |
) |
Unrealized gains on revaluation of NOK bonds |
|
4,545 |
|
5,923 |
|
7,560 |
|
10,468 |
|
7,560 |
|
|
|
TEEKAY LNG PARTNERS
L.P. |
SUMMARY CONSOLIDATED BALANCE
SHEETS |
(in thousands of U.S. Dollars) |
|
|
As at June 30, |
|
As at March 31, |
|
As at December 31, |
|
|
2013 |
|
2013 |
|
2012 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
ASSETS |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
Cash and cash equivalents |
|
97,621 |
|
90,982 |
|
113,577 |
Restricted cash - current |
|
33,096 |
|
34,166 |
|
34,160 |
Accounts receivable |
|
14,404 |
|
13,755 |
|
13,408 |
Prepaid expenses |
|
8,141 |
|
7,714 |
|
5,836 |
Current portion of derivative
assets |
|
18,306 |
|
18,378 |
|
17,212 |
Current portion of net
investments in direct financing leases |
|
6,928 |
|
6,790 |
|
6,656 |
Advances to affiliates |
|
3,421 |
|
3,273 |
|
13,864 |
Total current assets |
|
181,917 |
|
175,058 |
|
204,713 |
Restricted cash -
long-term |
|
495,084 |
|
494,353 |
|
494,429 |
Vessels
and equipment |
|
|
|
|
|
|
At cost, less accumulated
depreciation |
|
1,275,120 |
|
1,283,135 |
|
1,286,957 |
Vessels under capital leases,
at cost, less accumulated depreciation |
|
612,633 |
|
618,238 |
|
624,059 |
Advances on newbuilding contracts |
|
39,097 |
|
38,829 |
|
38,624 |
Total vessels and
equipment |
|
1,926,850 |
|
1,940,202 |
|
1,949,640 |
Investment in and advances to
equity accounted joint ventures(1) |
|
627,477 |
|
589,507 |
|
409,735 |
Net investments in direct
financing leases |
|
393,225 |
|
395,005 |
|
396,730 |
Advances to joint venture
partner |
|
14,004 |
|
14,004 |
|
14,004 |
Other assets |
|
26,573 |
|
25,840 |
|
25,233 |
Derivative assets |
|
89,685 |
|
125,874 |
|
145,347 |
Intangible assets - net |
|
103,064 |
|
106,524 |
|
109,984 |
Goodwill - liquefied gas segment |
|
35,631 |
|
35,631 |
|
35,631 |
Total assets |
|
3,893,510 |
|
3,901,998 |
|
3,785,446 |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
Accounts payable |
|
3,925 |
|
3,482 |
|
2,178 |
Accrued liabilities |
|
41,300 |
|
39,809 |
|
38,134 |
Unearned revenue |
|
8,645 |
|
8,401 |
|
19,417 |
Current portion of long-term
debt |
|
87,079 |
|
86,460 |
|
86,489 |
Current obligations under
capital lease |
|
160,284 |
|
162,897 |
|
70,272 |
Current portion of derivative
liabilities |
|
69,903 |
|
49,920 |
|
48,046 |
Advances from affiliates |
|
17,739 |
|
16,551 |
|
12,083 |
Total current
liabilities |
|
388,875 |
|
367,520 |
|
276,619 |
Long-term debt |
|
1,477,856 |
|
1,461,207 |
|
1,326,864 |
Long-term obligations under
capital lease |
|
472,440 |
|
472,260 |
|
567,302 |
Long-term unearned
revenue |
|
37,244 |
|
37,627 |
|
38,570 |
Other long-term
liabilities |
|
73,455 |
|
73,644 |
|
73,568 |
Derivative liabilities |
|
159,320 |
|
233,018 |
|
248,249 |
Total liabilities |
|
2,609,190 |
|
2,645,276 |
|
2,531,172 |
Equity |
|
|
|
|
|
|
Non-controlling
interest(2) |
|
47,317 |
|
41,736 |
|
41,294 |
Partners' equity |
|
1,237,003 |
|
1,214,986 |
|
1,212,980 |
Total equity |
|
1,284,320 |
|
1,256,722 |
|
1,254,274 |
Total liabilities and total
equity |
|
3,893,510 |
|
3,901,998 |
|
3,785,446 |
(1) |
Investments in and advances to equity accounted joint
ventures includes the Partnership's investment in its joint venture
Exmar LPG BVBA which is based on preliminary purchase price
adjustments. |
|
|
|
|
(2) |
Non-controlling interest includes a 30 percent equity
interest in the RasGas II project (which owns three LNG carriers),
a 31 percent equity interest in the Tangguh Project (which owns two
LNG carriers), a 1 percent equity interest in the two LNG carriers
(Arctic Spirit and Polar
Spirit), a 1 percent equity interest in the Excalibur joint
venture (which owns one LNG carrier), and a 1 percent equity
interest in the five LPG/Multigas carriers that are chartered out
to I.M. Skaugen ASA, which in each case represents the ownership
interest not owned by the Partnership. |
TEEKAY LNG PARTNERS
L.P. |
SUMMARY
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(in thousands of U.S. Dollars) |
|
Six |
|
|
Six |
|
|
Months |
|
|
Months |
|
|
Ended |
|
|
Ended |
|
|
June
30, |
|
|
June
30, |
|
|
2013 |
|
|
2012 |
|
|
$ |
|
|
$ |
|
Cash and cash equivalents
provided by (used for) |
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
Net
income |
130,273 |
|
|
65,939 |
|
Non-cash items: |
|
|
|
|
|
|
Unrealized (gain) loss on
derivative instruments |
(21,426 |
) |
|
15,647 |
|
|
Depreciation and
amortization |
49,299 |
|
|
49,553 |
|
|
Unrealized foreign currency
exchange gain |
(5,993 |
) |
|
(4,670 |
) |
|
Equity income |
(65,849 |
) |
|
(28,134 |
) |
|
Amortization of deferred debt
issuance costs and other |
1,494 |
|
|
18 |
|
Change in operating assets and
liabilities |
5,748 |
|
|
(6,609 |
) |
Expenditures for dry docking |
(17,796 |
) |
|
(2,972 |
) |
Net operating cash
flow |
75,750 |
|
|
88,772 |
|
FINANCING ACTIVITIES |
|
|
|
|
|
Proceeds from issuance of
long-term debt |
219,748 |
|
|
395,352 |
|
Scheduled repayments of
long-term debt |
(42,999 |
) |
|
(42,200 |
) |
Prepayments of long-term
debt |
(10,000 |
) |
|
(119,274 |
) |
Debt issuance costs |
- |
|
|
(1,808 |
) |
Scheduled repayments of
capital lease obligations and other long-term liabilities |
(5,205 |
) |
|
(5,040 |
) |
Proceeds from units issued out
of continuous offering program, net of offering costs |
4,924 |
|
|
- |
|
Advances to joint venture
partners and equity accounted joint ventures |
(16,785 |
) |
|
(3,600 |
) |
Increase in restricted
cash |
(952 |
) |
|
(30,511 |
) |
Cash distributions paid |
(105,943 |
) |
|
(93,636 |
) |
Other |
(144 |
) |
|
(50 |
) |
Net financing cash
flow |
42,644 |
|
|
99,233 |
|
INVESTING ACTIVITIES |
|
|
|
|
|
Purchase of equity accounted
investments |
(135,790 |
) |
|
(170,067 |
) |
Receipts from direct financing
leases |
3,233 |
|
|
2,992 |
|
Expenditures for vessels and
equipment |
(1,793 |
) |
|
(1,010 |
) |
Other |
- |
|
|
1,369 |
|
Net investing cash
flow |
(134,350 |
) |
|
(166,716 |
) |
(Decrease) increase in cash and cash
equivalents |
(15,956 |
) |
|
21,289 |
|
Cash and cash equivalents, beginning of the period |
113,577 |
|
|
93,627 |
|
Cash and cash equivalents, end of
the period |
97,621 |
|
|
114,916 |
|
|
|
TEEKAY LNG PARTNERS
L.P. |
APPENDIX A - SPECIFIC ITEMS
AFFECTING NET INCOME |
(in thousands of U.S. Dollars) |
Set forth below is a
reconciliation of the Partnership's unaudited adjusted net income
attributable to the partners, a non- GAAP financial measure, to net
income attributable to the partners as determined in accordance
with GAAP. The Partnership believes that, in addition to
conventional measures prepared in accordance with GAAP, certain
investors use this information to evaluate the Partnership's
financial performance. The items below are also typically excluded
by securities analysts in their published estimates of the
Partnership's financial results. Adjusted net income attributable
to the partners is intended to provide additional information and
should not be considered a substitute for measures of performance
prepared in accordance with GAAP. |
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
2013 |
2012 |
2013 |
2012 |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net income - GAAP basis |
75,242 |
|
39,260 |
|
130,273 |
|
65,939 |
Less: |
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest |
(5,581) |
|
(1,572) |
|
(6,167) |
|
(3,520) |
Net income attributable to the
partners |
69,661 |
|
37,688 |
|
124,106 |
|
62,419 |
Add (subtract) specific items
affecting net income: |
|
|
|
|
|
|
|
|
Unrealized foreign currency exchange losses
(gains)(1) |
2,960 |
|
(13,879) |
|
(5,088) |
|
(4,211) |
|
Unrealized (gains) losses from derivative
instruments(2) |
(20,185) |
|
8,855 |
|
(21,426) |
|
15,647 |
|
Unrealized (gains) losses from derivative instruments and
other items from equity accounted investees(3) |
(14,135) |
|
8,800 |
|
(18,734) |
|
3,989 |
Non-controlling interests' share of items above(4) |
3,219 |
|
(935) |
|
1,713 |
|
(1,712) |
Total adjustments |
(28,141) |
|
2,841 |
|
(43,535) |
|
13,713 |
Adjusted net income attributable to
the partners |
41,520 |
|
40,529 |
|
80,571 |
|
76,132 |
(1) |
Unrealized foreign exchange losses (gains) primarily relate
to the Partnership's revaluation of all foreign
currency-denominated monetary assets and liabilities based on the
prevailing exchange rate at the end of each reporting period and
unrealized loss on the cross-currency swap economically hedging the
Partnership's NOK bond and exclude the realized gains relating to
the cross currency swap for the NOK bonds. |
(2) |
Reflects the unrealized (gains) losses due to changes in the
mark-to-market value of derivative instruments that are not
designated as hedges for accounting purposes. |
(3) |
Reflects the unrealized (gains) losses due to changes in the
mark-to-market value of derivative instruments that are not
designated as hedges for accounting purposes within the
Partnership's equity-accounted investments and $0.6 million and
$0.8 million of start-up related costs during the three and six
months ended June 30, 2012, respectively, relating to the
acquisition of the MALT LNG Carriers in February 2012. |
(4) |
Items affecting net income include items from the
Partnership's wholly-owned subsidiaries, its consolidated
non-wholly-owned subsidiaries and its proportionate share of items
from equity accounted for investments. The specific items affecting
net income are analyzed to determine whether any of the amounts
originated from a consolidated non-wholly-owned subsidiary. Each
amount that originates from a consolidated non-wholly-owned
subsidiary is multiplied by the non-controlling interests'
percentage share in this subsidiary to arrive at the
non-controlling interests' share of the amount. The amount
identified as "non-controlling interests' share of items listed
above" in the table above is the cumulative amount of the non-
controlling interests' proportionate share of items listed in the
table. |
TEEKAY LNG PARTNERS
L.P. |
APPENDIX
B - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
DISTRIBUTABLE CASH FLOW (DCF) |
(in thousands of U.S. Dollars) |
Description of Non-GAAP Financial Measure - Distributable
Cash Flow (DCF) |
|
Distributable cash flow
represents net income adjusted for depreciation and amortization
expense, non-cash items, estimated maintenance capital
expenditures, unrealized gains and losses from derivatives,
deferred 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 GAAP and
should not be considered as an alternative to net income or any
other indicator of the Partnership's performance required by GAAP.
The table below reconciles distributable cash flow to net
income. |
|
Three Months Ended |
|
|
Three Months Ended |
|
|
June 30, 2013 |
|
|
June 30, 2012 |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
Net income: |
75,242 |
|
|
39,260 |
|
Add: |
|
|
|
|
|
|
Depreciation and amortization |
25,156 |
|
|
24,673 |
|
|
Partnership's share of equity accounted joint ventures'
DCF before estimated maintenance and capital expenditures |
34,816 |
|
|
27,389 |
|
|
Unrealized foreign exchange loss (gain) |
2,960 |
|
|
(13,879 |
) |
Less: |
|
|
|
|
|
|
Estimated maintenance capital expenditures |
(17,985 |
) |
|
(14,190 |
) |
|
Equity income |
(39,425 |
) |
|
(11,086 |
) |
|
Unrealized (gain) loss on derivatives and other non-cash
items |
(21,281 |
) |
|
8,757 |
|
Distributable Cash Flow before
Non-controlling interest |
59,483 |
|
|
60,924 |
|
Non-controlling interests' share of DCF before estimated
maintenance capital expenditures |
(4,083 |
) |
|
(4,170 |
) |
Distributable Cash
Flow |
55,400 |
|
|
56,754 |
|
TEEKAY LNG PARTNERS
L.P. |
APPENDIX C - RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES |
NET VOYAGE REVENUES |
(in thousands of U.S. Dollars) |
Description of Non-GAAP Financial Measure - Net Voyage
Revenues |
|
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
included because certain investors use this data to measure the
financial performance of shipping companies. Net voyage revenues is
not required by GAAP and should not be considered as an alternative
to voyage revenues or any other indicator of the Partnership's
performance required by GAAP. |
|
|
Three Months Ended June 30,
2013 |
|
|
|
(unaudited) |
|
|
|
|
Liquefied Gas |
Conventional |
|
|
|
Segment |
Tanker Segment |
|
Total |
Voyage revenues |
68,270 |
28,349 |
|
96,619 |
Voyage expenses |
407 |
817 |
|
1,224 |
Net voyage revenues |
67,863 |
27,532 |
|
95,395 |
|
|
|
|
Three Months Ended June 30,
2012 |
|
|
(unaudited) |
|
|
|
|
|
Liquefied Gas |
Conventional |
|
|
Segment |
Tanker Segment |
Total |
Voyage revenues |
67,603 |
28,874 |
96,477 |
Voyage expenses |
30 |
212 |
242 |
Net voyage revenues |
67,573 |
28,662 |
96,235 |
|
TEEKAY
LNG PARTNERS L.P. |
APPENDIX
D - SUPPLEMENTAL SEGMENT INFORMATION |
(in thousands of U.S.
Dollars) |
|
|
|
Three Months Ended June 30,
2013 |
|
|
(unaudited) |
|
|
|
|
|
|
|
Liquefied Gas Segment |
Conventional Tanker
Segment |
Total |
Net voyage revenues(1) |
|
67,863 |
27,532 |
95,395 |
Vessel operating expenses |
|
13,683 |
11,131 |
24,814 |
Depreciation and amortization |
|
18,329 |
6,827 |
25,156 |
General and administrative |
|
3,233 |
1,511 |
4,744 |
Income from vessel operations |
|
32,618 |
8,063 |
40,681 |
|
|
|
|
Three Months Ended June 30,
2012 |
|
|
(unaudited) |
|
|
|
|
|
|
|
Liquefied Gas Segment |
Conventional Tanker
Segment |
Total |
Net voyage revenues(1) |
|
67,573 |
28,662 |
96,235 |
Vessel operating expenses |
|
11,774 |
10,403 |
22,177 |
Depreciation and amortization |
|
17,309 |
7,487 |
24,796 |
General and administrative |
|
3,043 |
1,390 |
4,433 |
Income from vessel operations |
|
35,447 |
9,382 |
44,829 |
(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 Appendix C for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable
GAAP financial measure. |
|
TEEKAY LNG PARTNERS
L.P. |
APPENDIX E - RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES |
CASH FLOW FROM VESSEL
OPERATIONS |
FROM CONSOLIDATED
VESSELS |
(in thousands of U.S. Dollars) |
Description of Non-GAAP Financial Measure - Cash Flow from
Vessel Operations from Consolidated Vessels |
|
Cash flow from vessel
operations from consolidated vessels represents income from vessel
operations before (a) depreciation and amortization expense, (b)
amortization of in-process revenue contracts included in voyage
revenues, and includes (c) adjustments for direct financing leases
and two Suezmax tankers to a cash basis. The Partnership's only
direct financing leases for the periods indicated relate to the
Partnership's 69 percent interest in two LNG carriers, the
Tangguh Sago and Tangguh
Hiri. The Partnership's cash flow from vessel operations from
consolidated vessels does not include the Partnership's cash flow
from vessel operations from its equity accounted joint ventures.
Cash flow from vessel operations is included because certain
investors use cash flow from vessel operations to measure a
company's financial performance, and to highlight this measure for
the Partnership's consolidated vessels. Cash flow from vessel
operations from consolidated vessels is not required by GAAP and
should not be considered as an alternative to net income or any
other indicator of the Partnership's performance required by
GAAP. |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2013 |
|
(unaudited) |
|
Liquefied Gas Segment |
|
|
Conventional Tanker
Segment |
|
Total |
|
|
|
|
|
|
|
|
|
Income from vessel operations (See
Appendix D) |
32,618 |
|
|
8,063 |
|
40,681 |
|
Depreciation and amortization |
18,329 |
|
|
6,827 |
|
25,156 |
|
Amortization of in-process revenue contracts included in
voyage revenues |
- |
|
|
(278 |
) |
(278 |
) |
Tangguh LNG revenue accounted for as direct financing
leases |
(10,971 |
) |
|
- |
|
(10,971 |
) |
Tangguh LNG cash flow from time-charter contracts |
12,605 |
|
|
- |
|
12,605 |
|
Realized loss on Toledo Spirit derivative contract |
- |
|
|
(23 |
) |
(23 |
) |
Cash flow adjustment for two Suezmax tankers(1) |
- |
|
|
(1,697 |
) |
(1,697 |
) |
Cash flow from vessel operations from consolidated
vessels |
52,581 |
|
|
12,892 |
|
65,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2012 |
|
|
|
|
(unaudited) |
|
|
|
|
Liquefied Gas Segment |
|
|
Conventional Tanker
Segment |
|
Total |
|
|
|
Income from vessel operations (See
Appendix D) |
35,447 |
|
|
9,382 |
|
44,829 |
|
Depreciation and amortization |
17,309 |
|
|
7,487 |
|
24,796 |
|
Amortization of in-process revenue contracts included in
voyage revenues |
- |
|
|
(123 |
) |
(123 |
) |
Tangguh LNG revenue accounted for as direct financing
leases |
(11,025 |
) |
|
- |
|
(11,025 |
) |
Tangguh LNG cash flow from time-charter contracts |
12,528 |
|
|
- |
|
12,528 |
|
Realized loss on Toledo Spirit derivative contract |
- |
|
|
(6 |
) |
(6 |
) |
Cash flow from vessel operations from consolidated
vessels |
54,259 |
|
|
16,740 |
|
70,999 |
|
(1) |
The Partnership's charter contracts for two of its Suezmax
tankers, the Bermuda Spirit and Hamilton Spirit, were amended in 2012 which had the
effect of reducing the daily charter rates by $12,000 per day for a
duration of 24 months commencing October 1, 2012. The cash impact
of the change in hire rates is not fully reflected in the
Partnership's statements of income as the change in the lease
payments are being recognized on a straight-line basis over the
term of the lease. |
|
TEEKAY LNG PARTNERS
L.P. |
APPENDIX F - RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
CASH FLOW FROM VESSEL OPERATIONS FROM EQUITY ACCOUNTED
VESSELS |
(in thousands of U.S. Dollars) |
Description of Non-GAAP Financial Measure - Cash Flow from
Vessel Operations from Equity Accounted Vessels |
|
Cash flow from vessel
operations from equity accounted vessels represents income from
vessel operations before (a) depreciation and amortization expense,
(b) amortization of in-process revenue contracts and includes (c)
adjustments for direct financing leases to a cash basis. Cash flow
from vessel operations from equity accounted vessels is included
because certain investors use cash flow from vessel operations to
measure a company's financial performance, and to highlight this
measure for the Partnership's equity accounted joint ventures. Cash
flow from vessel operations from equity accounted vessels is not
required by GAAP and should not be considered as an alternative to
equity income or any other indicator of the Partnership's
performance required by GAAP. |
|
|
|
|
Three Months Ended June 30,
2013 |
|
|
Three Months Ended June 30,
2012 |
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At |
|
|
Partnership's |
|
|
At |
|
|
Partnership's |
|
|
|
100% |
|
|
Portion(1) |
|
|
100% |
|
|
Portion(1) |
|
Voyage revenues |
|
149,291 |
|
|
68,952 |
|
|
110,043 |
|
|
49,295 |
|
Vessel and other operating expenses |
|
42,385 |
|
|
20,095 |
|
|
24,581 |
|
|
11,223 |
|
Depreciation and amortization |
|
21,284 |
|
|
10,837 |
|
|
13,331 |
|
|
6,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from vessel operations of equity accounted
vessels |
|
85,622 |
|
|
38,019 |
|
|
72,131 |
|
|
31,198 |
|
Interest expense |
|
(17,634 |
) |
|
(7,962 |
) |
|
(8,051 |
) |
|
(4,446 |
) |
Realized and unrealized gain (loss) on derivative
instruments |
|
26,693 |
|
|
8,926 |
|
|
(45,776 |
) |
|
(15,420 |
) |
Other income - net |
|
140 |
|
|
442 |
|
|
195 |
|
|
(246 |
) |
Other items |
|
9,199 |
|
|
1,406 |
|
|
(53,632 |
) |
|
(20,112 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / equity income of equity accounted
vessels |
|
94,821 |
|
|
39,425 |
|
|
18,499 |
|
|
11,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from vessel operations |
|
85,622 |
|
|
38,019 |
|
|
72,131 |
|
|
31,198 |
|
Depreciation and amortization |
|
21,284 |
|
|
10,837 |
|
|
13,331 |
|
|
6,874 |
|
Revenue accounted for as direct financing leases |
|
(49,934 |
) |
|
(18,247 |
) |
|
(49,591 |
) |
|
(18,109 |
) |
Cash flow from time-charter contracts |
|
57,095 |
|
|
20,850 |
|
|
56,357 |
|
|
20,574 |
|
Amortization of in-process revenue contracts |
|
(8,386 |
) |
|
(4,297 |
) |
|
(4,818 |
) |
|
(2,502 |
) |
Cash flow from vessel operations from equity accounted
vessels |
|
105,681 |
|
|
47,162 |
|
|
87,410 |
|
|
38,035 |
|
(1) The Partnership's equity accounted investments
for the three months ended June 30, 2013 and 2012 include the
Partnership's 40 percent interest in Teekay Nakilat (III)
Corporation, which owns four LNG carriers; the Partnership's 50
percent interest in the Excalibur and Excelsior joint ventures,
which owns one LNG carrier and one regasification unit,
respectively; the Partnership's 33 percent interest in four LNG
carriers servicing the Angola LNG Project; and the Partnership's 52
percent interest in MALT LNG Holdings ApS, the joint venture
between the Partnership and Marubeni Corporation, which owns six
LNG carriers. The Partnership's equity accounted investments for
the three months ended June 30, 2013 also includes the
Partnership's acquisition of a 50 percent interest in Exmar LPG
BVBA, the joint venture between the Partnership and Exmar NV,
entered in February 2013, which owns and charters-in 26 vessels in
the LPG carrier segment, including ten newbuildings.
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: future growth opportunities, including the Partnership's
ability to successfully bid for new LNG shipping and regasification
projects and/or acquire additional on-the-water assets with
contracts; potential growth in distributable cash flow as a result
of such opportunities and recent vessel transactions; the
Partnership's ability to secure charter contract employment and
long-term financing for the two currently unchartered LNG carrier
newbuilding vessels ordered in July 2013; expected delivery dates
for the Partnership's newbuildings; the expected impact on the
Partnership's cash flows arising from the transaction with Awilco
LNG; the Partnership's potential opportunity to acquire and
bareboat charter a second LNG newbuilding vessel from Awilco; and
LNG and LPG shipping market fundamentals, including the short-term
demand for LNG carrier capacity, future growth in global LNG
supply, and the balance of supply and demand of shipping capacity
and shipping charter rates in these sectors. 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:
shipyard construction delays; availability of LNG
shipping, LPG shipping, floating storage and regasification and
other growth project opportunities; 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; the Partnership's ability to secure new
contracts through bidding on project tenders; 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 Teekay LNG fleet;
the financial ability of our charterers to pay their charter
payments; the inability of the Partnership to renew or replace
long-term contracts on existing vessels or attain fixed-rate
long-term contracts for newbuilding vessels; the Partnership's
ability to raise financing for its existing newbuildings or to
purchase additional vessels or to pursue other projects;
competitive dynamics in bidding for potential LNG or LPG projects;
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, 2012. 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.
Contact
Information
Contacts:
Teekay LNG
Kent Alekson
Investor Relations enquiries
+1 (604) 609-6442
www.teekaylng.com
This
announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: Teekay LNG Partners L.P. via Thomson Reuters
ONE
HUG#1722018
Teekay Lng Partners (NYSE:TGP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Teekay Lng Partners (NYSE:TGP)
Historical Stock Chart
From Jul 2023 to Jul 2024