Teekay Offshore Partners Provides Update on Third Quarter Financial Results
December 18 2008 - 5:46PM
Marketwired
Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership)
(NYSE: TOO) today announced that its estimated distributable cash
flow(1) for the three months ended September 30, 2008 is expected
to be greater than the previous quarter and will exceed the total
cash distributions paid to the Partnership's LP unitholders and GP
interests for the quarter. The Partnership also announced that it
expects to publish its complete third quarter results in January
2009, upon finalization of the regular quarterly review by the
Partnership's independent auditor, Ernst & Young LLP. The delay
is due to a later than normal start to the Partnership's third
quarter earnings review process as a result of committing resources
to finalize the previously announced restatement of historical
results.
"The Partnership is pleased to report strong operational
performance in the third quarter," commented Peter Evensen, Chief
Executive Officer of Teekay Offshore GP LLC, the Partnership's
general partner. "We generated strong cash flows as demonstrated by
the 12.5 percent increase in our distribution this quarter. As the
world's largest shuttle tanker fleet operator, our vessels are
vital to our customers' oil delivery supply chains, an important
consideration for the stability of our cash flows." Mr. Evensen
continued, "Based on our favorable debt profile with no near-term
refinancing requirements or covenant concerns, no capital
commitments and approximately $300 million in total liquidity, we
believe Teekay Offshore remains well-positioned in the current
uncertain economic and financial environment."
On November 3, 2008, the Partnership declared a cash
distribution of $0.45 per unit for the quarter ended September 30,
2008, an increase of $0.05 per unit, or 12.5 percent, from the
previous quarter. The cash distribution was paid on November 14,
2008 to all unitholders of record on November 7, 2008.
About Teekay Offshore Partners L.P.
Teekay Offshore Partners L.P., a publicly-traded master limited
partnership formed by Teekay Corporation (NYSE: TK), is an
international provider of marine transportation and storage
services to the offshore oil industry. Teekay Offshore Partners
owns a 51 percent interest in and controls Teekay Offshore
Operating L.P., a Marshall Islands limited partnership with a fleet
of 34 shuttle tankers (including nine chartered-in vessels), four
FSO units, nine double-hull conventional oil tankers and two
lightering vessels. In addition, Teekay Offshore Partners L.P. has
direct ownership interests in two shuttle tankers and one FSO unit.
Teekay Offshore Partners also has rights to participate in certain
FPSO opportunities.
Teekay Offshore Partners' common units trade on the New York
Stock Exchange under the symbol "TOO".
(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. Distributable
cash flow represents net income adjusted for depreciation and
amortization expense, non-controlling interest, non-cash items,
estimated maintenance capital expenditures, gains and losses on
vessel sales, income taxes and foreign exchange related items.
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; timing of publishing its
third quarter 2008 results; the Partnership's financial position in
the current economic and financial environment; and the estimated
distributable cash flow generated during the third quarter of 2008
and subsequent quarters. The following factors are among those that
could cause actual results to differ materially from the
forward-looking statements, which involve risks and uncertainties,
and that should be considered in evaluating any such statement:
changes in production of offshore oil, either generally or in
particular regions; 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
or Teekay Offshore Operating LP to renew or replace long-term
contracts; any adjustments to the Partnership's estimated
distributable cash flow for the third quarter of 2008 arising from
Ernst & Young LLP's review of the Partnership's third quarter
results; and other factors discussed in Teekay Offshore's filings
from time to time with the SEC, including its Report on Form 20-F
for the fiscal year ended December 31, 2007. 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.
Contacts: Teekay Offshore Partners L.P. Kent Alekson Investor
Relations Enquiries (604) 609-6442 Teekay Offshore Partners L.P.
Alana Duffy Media Enquiries (604) 844-6605 Website:
www.teekayoffshore.com
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