Teekay Offshore GP LLC, the general partner of Teekay Offshore
Partners L.P. (Teekay Offshore or the Partnership) (NYSE: TOO)
today declared a cash distribution of $0.45 per unit ($1.80 per
unit on an annualized basis) for the quarter ended June 30, 2009.
The cash distribution will be payable on August 14, 2009 to all
unitholders of record on July 29, 2009.
The Partnership also reported today its results for the quarter
ended March 31, 2009. During the first quarter, the Partnership
generated distributable cash flow(1) of $10.0 million, an increase
from $6.8 million for the first quarter of 2008, primarily as a
result of the Partnership's acquisition of an additional 25 percent
interest in Teekay Offshore Operating Partners (OPCO) in June 2008.
However, the Partnership's distributable cash flow in the first
quarter decreased from $11.7 million in the fourth quarter of 2008.
On May 4, 2009, the Partnership declared a cash distribution of
$0.45 per unit for quarter ended March 31, 2009. The cash
distribution was paid on May 15, 2009, to all unitholders of record
on May 8, 2009.
"The Partnership's first quarter 2009 results were affected by
several factors which reduced income from vessel operations and
distributable cash flow for the quarter," commented Peter Evensen,
Chief Executive Officer of Teekay Offshore GP LLC. "These include
costs related to higher than anticipated operating expenses
primarily related to our North Sea shuttle tanker operations, the
re-flagging of certain of our shuttle tankers in order to lower our
future crewing costs, lower fleet utilization as a result of
reduced oil production in the first quarter and reduced revenues
due to start-up delays at some of the new North Sea fields. Factors
impacting our first quarter results have generally persisted
through the second quarter, which in addition experienced a
seasonal decline in shuttle tanker utilization due to field
maintenance."
Mr. Evensen continued, "As a result of the progress made on our
re-flagging and other cost management initiatives, we expect lower
run-rate operating expenses, which combined with higher fleet
utilization following the completion of seasonal maintenance and
the start-up of new North Sea fields, should result in an
improvement in the Partnership's distributable cash flow in the
second half of the year and support our current quarterly cash
distribution level. Importantly, today we declared a $0.45 per unit
distribution for the second quarter."
(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.
Teekay Offshore's Fleet
The following table summarizes Teekay Offshore's fleet,
including vessels owned by OPCO, as of July 1, 2009:
----------------------------------------------------------------------------
Number of Vessels
-------------------------------------
Owned Chartered-in
Vessels Vessels Total
-------------------------------------
Shuttle Tanker Segment 27(i) 8 35
Conventional Tanker Segment 11 - 11
FSO Segment 5 - 5
----------------------------------------------------------------------------
Total 43 8 51
----------------------------------------------------------------------------
(i) Includes five shuttle tankers in which OPCO's ownership interest is 50%
and two shuttle tankers directly owned by Teekay Offshore, of which one
is 50% owned.
Future Growth Opportunities
Pursuant to an omnibus agreement that Teekay Offshore entered
into in connection with its initial public offering in December
2006, Teekay Corporation (Teekay) is obligated to offer to the
Partnership its interest in certain shuttle tankers, Floating
Storage and Offloading units (FSO) and Floating Production Storage
and Offloading (FPSO) units and joint ventures it may acquire in
the future, provided the vessels are servicing contracts in excess
of three years in length. Teekay Offshore also may acquire
additional limited partner interests in OPCO or vessels that Teekay
may offer the Partnership from time to time in the future.
Shuttle Tankers
Teekay has ordered four Aframax shuttle tanker newbuildings that
are scheduled to deliver in 2010 and 2011, for a total delivered
cost of approximately $460 million. Teekay Offshore anticipates
that these vessels will be offered to the Partnership pursuant to
the omnibus agreement and will be used to service either new
long-term, fixed-rate contracts Teekay may be awarded prior to the
vessel deliveries or OPCO's contracts-of-affreightment in the North
Sea.
FPSO Units
On July 9, 2008, Teekay completed the acquisition of the
remaining 35.3 percent of Teekay Petrojarl ASA (Teekay Petrojarl)
it did not previously own. Teekay Petrojarl is a leading operator
of FPSO units, with four units operating in the North Sea and one
unit operating in Brazil.
Pursuant to the omnibus agreement, Teekay was obligated to offer
to Teekay Offshore the 1998-built FPSO unit, the Varg, within 30
days of the unit being re-chartered by Teekay Petrojarl on December
4, 2008. Teekay Offshore has agreed to waive Teekay's obligation to
offer the unit to the Partnership for charter or purchase within 30
days of the re-chartering in exchange for the right to acquire the
unit for its fair market value, at any time until December 4,
2009.
Teekay is also obligated to offer to the Partnership, prior to
July 9, 2010 and for fair market value, two additional existing
FPSO units of Teekay Petrojarl, in addition to the Varg, that are
servicing contracts in excess of three years in length.
Teekay's Remaining Interest in OPCO
Teekay may offer to Teekay Offshore additional limited partner
interests in OPCO that Teekay owns. Teekay currently owns 49
percent of OPCO and Teekay Offshore owns the remaining 51 percent.
OPCO is a Marshall Islands limited partnership with a fleet of 33
shuttle tankers (including eight chartered-in vessels), four FSO
units, nine double-hull conventional oil tankers and two lightering
vessels.
Financial Summary
The Partnership reported adjusted net income(1) (as detailed in
Appendix A to this release) of $7.5 million for the quarter ended
March 31, 2009, compared to $4.2 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 $9.5 million
and decreasing net income by $17.4 million for the quarters ended
March 31, 2009 and 2008, respectively, as detailed in Appendix A.
Including these items, the Partnership reported net income
attributable to the partners of $16.9 million(3), on a GAAP basis,
for the first quarter of 2009, compared to a net loss attributable
to the Partners, on a GAAP basis, of $13.2 million(3), for the same
period last year. Net voyage revenues(2) for the first quarter of
2009 increased to $158.6 million from $153.6 million for the same
period of the prior year.
For accounting purposes, the Partnership is required to
recognize the changes in the fair value of certain derivative
instruments, as unrealized gains or losses, through the statements
of income (loss). This revaluation does not affect the economics of
any hedging transactions or have any impact on the Partnership's
actual cash flows or the calculation of its distributable cash
flow.
Operating Results
The following table highlights certain financial information for
Teekay Offshore's three main segments: the shuttle tanker segment,
the conventional tanker segment, and the FSO segment (please refer
to the "Teekay Offshore's Fleet" section of this release above and
Appendix C for further details).
----------------------------------------------------------------------------
Three Months Ended
March 31, 2009
(unaudited)
Conven-
Shuttle tional
(in thousands of Tanker Tanker FSO
U.S. dollars) Segment Segment Segment Total
----------------------------------------------------------------------------
Net voyage revenues 119,897 23,862 14,853 158,612
Vessel operating expenses(i) 39,522 5,390 5,822 50,734
Time-charter hire expense 32,145 - - 32,145
Depreciation and amortization 23,155 5,974 5,402 34,531
Cash flow from vessel
operations(ii) 31,404 17,038 8,591 57,033
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended
March 31, 2008
(unaudited)
Conven-
Shuttle tional
(in thousands of Tanker Tanker FSO
U.S. dollars) Segment Segment Segment Total
----------------------------------------------------------------------------
Net voyage revenues 114,506 22,351 16,698 153,555
Vessel operating expenses(i) 29,660 5,959 6,312 41,931
Time-charter hire expense 33,646 - - 33,646
Depreciation and amortization 22,551 5,257 5,104 32,912
Cash flow from vessel
operations(ii) 39,265 13,042 9,557 61,864
----------------------------------------------------------------------------
(i) Commencing in the quarter ended March 31, 2009, and applied
retroactively, the gains and losses related to non-designated
derivative instruments have been reclassified to a separate line
item in the Statements of Income (Loss) and are no longer included
in the amounts above.
(ii) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense and
amortization of deferred gains, and includes the realized gains
(losses) on the settlements of foreign currency exchange forward
contracts. 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.teekayoffshore.com for a reconciliation of this non-GAAP measure
as used in this release to the most directly comparable GAAP financial
measure.
(1) Adjusted net income is a non-GAAP financial measure. Please
refer to Appendix A to the Consolidated Statements of Income (Loss)
included in this release for a reconciliation of this non-GAAP
measure to the most directly comparable financial measure under
United States generally accepted accounting principles (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.
(2) 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.teekayoffshore.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 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 Partners
represents the net income (loss) attributable to the limited
partners and general partner of Teekay Offshore.
Shuttle Tanker Segment
Cash flow from vessel operations from the Partnership's shuttle
tanker segment decreased to $31.4 million for the first quarter of
2009, compared to $39.3 million for the same quarter of the prior
year primarily due to an increase in vessel operating costs, and
restructuring charges of $2.2 million related to the re-flagging of
certain of the Partnership's Norwegian-flagged vessels, partially
offset by an increase to our shuttle tanker revenues. Vessel
operating expenses increased from the same quarter of the prior
year primarily due to the rising costs of supplies, an increase in
crew manning costs and the impact of changes in foreign currency
exchange rates. Shuttle tanker net voyage revenues increased from
the same quarter one year ago primarily due to a $4.0 million
increase as a result of a decrease in the number of off-hire days
for vessels on time-charter contracts, $3.3 million from a new
time-charter agreement, which began in December 2008, partially
offset by a $4.1 million decrease in utilization of vessels on
contracts of affreightment and lower rates earned by surplus
vessels trading in the spot tanker market.
Conventional Tanker Segment
Cash flow from vessel operations from the Partnership's
conventional tanker segment increased to $17.0 million for the
first quarter of 2009 from $13.0 million for the same quarter of
the prior year, primarily due to the acquisition of two Aframax
tankers, the SPT Explorer and SPT Navigator, in the second quarter
of 2008, an increase in the daily hire rate for all nine
time-charter contracts with Teekay, a decrease in off-hire days and
a decrease in operating expenses in the first quarter of 2009 as
compared to the same quarter one year ago.
FSO Segment
Cash flow from vessel operations from the Partnership's FSO
segment decreased to $8.6 million for the first quarter of 2009
from $9.6 million for the same quarter of the prior year, primarily
due to changes in foreign currency exchange rates.
Liquidity
As of March 31, 2009, the Partnership had total liquidity of
$295.5 million, which consisted of $147.8 million in cash and cash
equivalents and $147.7 million in undrawn revolving credit
facilities.
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 owns a 51
percent interest in and controls Teekay Offshore Operating L.P., a
Marshall Islands limited partnership with a fleet of 33 shuttle
tankers (including eight chartered-in vessels), four FSO units,
nine double-hull conventional oil tankers and two lightering
vessels. In addition, Teekay Offshore has direct ownership
interests in two shuttle tankers and one FSO unit. Teekay Offshore
also has rights to participate in certain FPSO opportunities.
Teekay Offshore's common units trade on the New York Stock
Exchange under the symbol "TOO".
---------------------------------------------------------------------------
TEEKAY OFFSHORE PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands of U.S. dollars, except unit data)
---------------------------------------------------------------------------
Three Months Ended
March December March
31, 2009 31, 2008 31, 2008
(unaudited) (unaudited) (unaudited)
VOYAGE REVENUES 183,425 216,129 204,932
---------------------------------------------------------------------------
OPERATING EXPENSES
Voyage expenses 24,813 51,293 51,377
Vessel operating expenses(1) 50,734 48,388 41,931
Time-charter hire expense 32,145 34,852 33,646
Depreciation and amortization 34,531 35,036 32,912
General and administrative(1) 11,922 17,853 15,826
Restructuring charge(2) 2,201 - -
---------------------------------------------------------------------------
156,346 187,422 175,692
---------------------------------------------------------------------------
Income from vessel operations 27,079 28,707 29,240
---------------------------------------------------------------------------
OTHER ITEMS
Interest expense (10,568) (14,859) (21,266)
Interest income 826 885 1,249
Realized and unrealized gain (loss)
on derivative instruments(3) 17,584 (126,670) (45,415)
Income tax (expense) recovery (4,138) 21,852 (197)
Foreign exchange (loss) gain(1) (2,248) 5,737 (2,463)
Other income - net 3,081 2,666 2,626
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net income (loss) 31,616 (81,682) (36,226)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net income (loss) attributable to:
Non-controlling interests(4) 14,676 (30,947) (23,477)
Dropdown Predecessor - - 485
Partners 16,940 (50,735) (13,234)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Limited partners' units outstanding:
Weighted-average number of common
units outstanding
- Basic and diluted 20,425,000 20,425,000 9,800,000
Weighted-average number of
subordinated units outstanding
- Basic and diluted 9,800,000 9,800,000 9,800,000
Weighted-average number of total
units outstanding
- Basic and diluted 30,225,000 30,225,000 19,600,000
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) The Partnership has entered into foreign exchange forward contracts,
which are economic hedges of vessel operating expenses and general and
administrative expenses. Certain of these forward contracts have been
designated as cash flow hedges pursuant to United States generally
accepted accounting principles (GAAP). Unrealized gains and losses
arising from hedge ineffectiveness from such forward contracts are
reflected in vessel operating expenses, general and administrative
expenses, and foreign exchange gains (losses) in the above Statements
of Income (Loss) as detailed in the table below:
Three Months Ended
--------------------------------------
March 31, December 31, March 31,
2009 2008 2008
-------- ----------- --------
Vessel operating expenses 735 (567) 445
General and administrative 1,202 (1,445) 231
Foreign exchange loss - - (452)
(2) Restructuring charges were incurred in connection with the re-flagging
of certain of the Partnership's vessels, which will result in lower
future crewing costs. The Partnership expects to incur an additional
$1.5 million in similar restructuring charges in the second quarter
of 2009.
(3) 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 (8,460) (8,746) (540)
Foreign currency
forward contracts (2,934) (409) -
--------------------------------------
(11,394) (7,155) (540)
--------------------------------------
Unrealized gains (losses)
relating to:
Interest rate swaps 26,626 (117,494) (45,383)
Foreign currency
forward contracts 2,351 (2,021) 508
--------------------------------------
28,977 (119,515) (44,875)
--------------------------------------
Total realized and
unrealized gains
(losses) on non-designated
derivative instruments 17,583 (126,670) (45,415)
--------------------------------------
(4) Commencing in 2009, and applied retroactively, in accordance with
SFAS 160 net income (loss) includes the net income (loss)
attributable to non-controlling interests.
---------------------------------------------------------------------------
TEEKAY OFFSHORE PARTNERS L.P.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
As at As at
March December
31, 2009 31, 2008
(unaudited) (unaudited)
--------- ---------
ASSETS
Cash and cash equivalents 147,837 131,488
Other current assets 92,675 100,470
Vessels and equipment 1,680,279 1,708,006
Other assets 61,260 67,725
Intangible assets 43,026 45,290
Goodwill 127,113 127,113
---------------------------------------------------------------------------
Total Assets 2,152,190 2,180,092
---------------------------------------------------------------------------
---------------------------------------------------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities 57,944 54,368
Other current liabilities 33,921 29,734
Current portion of long-term debt 118,598 125,503
Current portion of derivative instruments 48,815 54,937
Long-term debt 1,435,656 1,440,933
Other long-term liabilities 143,801 172,368
Equity:
Non-controlling interest 206,102 201,383
Partners' equity 107,353 100,866
---------------------------------------------------------------------------
Total Liabilities and Equity 2,152,190 2,180,092
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TEEKAY OFFSHORE 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 53,882 48,011
---------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt - 111,338
Scheduled repayments of long-term debt (7,182) (8,044)
Prepayments of long-term debt (5,000) (17,000)
Distributions from subsidiaries to non-controlling
interest (13,879) (24,019)
Cash distributions paid (14,447) (8,000)
Net advances to affiliates - (45,331)
Net advance from joint venture partner 221 -
Other (289) (287)
---------------------------------------------------------------------------
Net financing cash flow (40,576) 8,657
---------------------------------------------------------------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (2,486) (46,026)
Investment in direct financing lease assets - (17)
Direct financing lease payments received 5,529 5,942
---------------------------------------------------------------------------
Net investing cash flow 3,043 (40,101)
---------------------------------------------------------------------------
Increase in cash and cash equivalents 16,349 16,567
Cash and cash equivalents, beginning of the period 131,488 121,224
---------------------------------------------------------------------------
Cash and cash equivalents, end of the period 147,837 137,791
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TEEKAY OFFSHORE PARTNERS L.P.
APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME
(in thousands of U.S. dollars)
Set forth below are some of the significant items of income and expense
that affected the Partnership's net income (loss) for the three months
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 Three
Months Months
Ended Ended
March March
31, 2009 31, 2008
(unaudited) (unaudited)
Net income (loss) - GAAP basis 31,616 (36,226)
Adjustments:
Net (income) loss attributable to non-controlling
interests (14,676) 23,477
Net (income) loss attributable to drop-down
predecessor - (485)
---------------------------------------------------------------------------
Net income (loss) attributable to the partners 16,940 (13,234)
Add (subtract) specific items affecting net income
(loss):
Restructuring charges(1) 2,201 -
Foreign currency exchange (gains) losses(2) 311 3,139
Deferred income tax expense relating to unrealized
foreign exchange gains (3) 8,364 8,400
Unrealized (gains) losses on derivative
instruments(4) (28,977) 44,875
Non-controlling interests' share of items above
(5) 8,628 (39,003)
---------------------------------------------------------------------------
Total adjustments (9,473) 17,411
---------------------------------------------------------------------------
Adjusted net income 7,467 4,177
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) Restructuring charges were incurred in connection with the re-flagging
of certain of the Partnership's vessels, which will result in lower
future crewing costs.
(2) Foreign currency exchange gains (losses) 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 also includes the unrealized gains and
losses, arising from hedge ineffectiveness, from foreign exchange
forward contracts that are or have been designated as hedges for
accounting purposes.
(3) Portion of deferred income tax expense related to unrealized foreign
exchange gains and losses.
(4) 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.
(5) Primarily relates to Teekay's non-controlling interest share of the
items noted above.
---------------------------------------------------------------------------
TEEKAY OFFSHORE 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-controlling interest, 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 defined by United States generally accepted accounting
principles and should not be considered as an alternative to net income or
any other indicator of the Partnership's performance required by United
States generally accepted accounting principles. The table below reconciles
distributable cash flow to net income.
---------------------------------------------------------------------------
Three Months Ended
March 31, 2009
(unaudited)
---------------------------------------------------------------------------
Net income 31,616
Add:
Depreciation and amortization 34,531
Income tax expense 4,138
Foreign exchange and other, net 640
Less:
Unrealized gains on non-designated derivative
instruments (28,977)
Estimated maintenance capital expenditures (20,288)
---------------------------------------------------------------------------
Distributable Cash Flow before Non-Controlling Interest 21,660
Non-controlling interests' share of DCF (11,687)
---------------------------------------------------------------------------
Distributable Cash Flow 9,973
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TEEKAY OFFSHORE PARTNERS L.P.
APPENDIX C - SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
Three Months Ended March 31, 2009
(unaudited)
Conven-
Shuttle tional
Tanker Tanker FSO
Segment Segment Segment Total
---------------------------------------------------------------------------
Net voyage revenues(1) 119,897 23,862 14,853 158,612
Vessel operating expenses(2) 39,522 5,390 5,822 50,734
Time-charter hire expense 32,145 - - 32,145
Depreciation and amortization 23,155 5,974 5,402 34,531
General and administrative(2) 10,048 1,434 440 11,922
Restructuring charges 2,201 - - 2,201
---------------------------------------------------------------------------
Income from vessel operations 12,826 11,064 3,189 27,079
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended March 31, 2008
(unaudited)
Conven-
Shuttle tional
Tanker Tanker FSO
Segment Segment Segment Total
---------------------------------------------------------------------------
Net voyage revenues(1) 114,506 22,351 16,698 153,555
Vessel operating expenses(2) 29,660 5,959 6,312 41,931
Time-charter hire expense 33,646 - - 33,646
Depreciation and amortization 22,551 5,257 5,104 32,912
General and administrative(2) 12,793 2,204 829 15,826
---------------------------------------------------------------------------
Income from vessel operations 15,856 8,931 4,453 29,240
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(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.teekayoffshore.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 quarter 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
impact on the Partnership's distributable cash flow due to the
re-flagging of certain shuttle tankers and other operating cost
management initiatives, seasonal maintenance on certain North Sea
oil facilities, and start-up delays on certain oil fields; the
expected improvement in the Partnership's distributable cash flow
in the second half of 2009 and the ability to support the
Partnership's current quarterly cash distribution level; the
Partnership's future growth prospects; the potential for Teekay to
offer up to four Aframax shuttle tanker newbuildings either with
new long-term fixed-rate contracts, or to service the
contracts-of-affreightment in the North Sea; the potential for
Teekay to offer Teekay Petrojarl's existing FPSO units and the
timing and certainty of the Partnership's acceptance, or election,
to acquire these FPSOs from Teekay Corporation; the potential for
Teekay to secure future FPSO projects; the potential for Teekay to
offer to Teekay Offshore additional limited partner interests in
OPCO; and the Partnership's exposure to foreign currency
fluctuations. 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 OPCO to renew or
replace long-term contracts; higher than expected increases in
vessel operating expenses; the failure of Teekay to offer
additional assets to Teekay Offshore; required approvals by the
conflicts committee of Teekay Offshore to acquire assets from
Teekay; the Partnership's ability to raise financing to purchase
additional vessels and/or interests in OPCO; changes to the amount
or proportion of revenues, expenses, or debt service costs
denominated in foreign currencies; 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,
2008. 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 +1 (604) 609-6442 Teekay Offshore Partners L.P.
Alana Duffy Media Enquiries +1 (604) 844-6605
www.teekayoffshore.com
Teekay Offshore Partners (NYSE:TOO)
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From Jun 2024 to Jul 2024
Teekay Offshore Partners (NYSE:TOO)
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From Jul 2023 to Jul 2024
