Teekay LNG Partners Reports Fourth Quarter and Annual Results
(Thomson Reuters ONE) -
HAMILTON, BERMUDA--(Marketwire - Feb. 21, 2013) - Teekay LNG Partners L.P.
(NYSE:TGP) -
Highlights
* Generated distributable cash flow of $53.6 million in the fourth quarter of
2012, an increase of 22 percent from the fourth quarter of 2011.
* Declared fourth quarter 2012 cash distribution of $0.675 per unit.
* On February 12, 2013, completed the previously-announced 50/50 joint venture
with Exmar NV which owns and charters-in 25 vessels in the LPG carrier
segment.
* On December 12, 2012, ordered two LNG carrier newbuildings with options to
order up to three additional vessels.
* Total liquidity of approximately $495.0 million as at December 31, 2012.
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 December 31, 2012. During the fourth quarter of 2012, the
Partnership generated distributable cash flow[1] of $53.6 million, compared to
$44.1 million in the same quarter of the previous year. The increase primarily
reflects the incremental distributable cash flow resulting from the following
acquisitions: a 52 percent interest in six liquefied natural gas (LNG) carriers
acquired in February 2012; a 33 percent interest in two LNG carriers delivered
between October 2011 and January 2012; and one Multigas carrier delivered in
October 2011.
On January 18, 2013, the Partnership declared a cash distribution of $0.675 per
unit for the quarter ended December 31, 2012. The cash distribution was paid on
February 14, 2013 to all unitholders of record on February 4, 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
New LPG Joint Venture
In February 2013, the Partnership completed its joint venture agreement with
Belgium-based Exmar NV to own and charter-in liquefied petroleum gas (LPG)
carriers with a primary focus on the mid-size gas carrier segment. The joint
venture entity, called Exmar LPG BVBA, took economic effect as of November
1, 2012 and includes 16 owned LPG carriers (including four newbuildings
scheduled for delivery in 2014) and five chartered-in LPG carriers. In addition,
the joint venture recently ordered another four medium-size gas carrier
newbuildings with deliveries scheduled between 2015 and 2016, with options to
order up to four additional vessels, which brings the total fleet size of Exmar
LPG BVBA to 25 vessels, excluding options. For its 50 percent ownership interest
in the joint venture, including newbuilding payments made prior to the November
1, 2012 economic effective date of the joint venture, Teekay LNG invested
approximately $134 million of equity and assumed approximately $108 million of
its pro rata share of existing debt and lease obligations as of the economic
effective date, secured by certain vessels in the Exmar LPG BVBA fleet. Exmar
LPG BVBA is in the process of refinancing the joint venture fleet and four of
the newbuildings with a new $355 million debt facility which is currently in
documentation.
LNG Newbuildings
In December 2012, Teekay LNG entered into an agreement with Daewoo Shipbuilding
& Marine Engineering Co., Ltd., (DSME) of South Korea for the construction of
two 173,400-cubic meter LNG carrier newbuildings, for a total purchase price of
approximately $400 million, with options to order up to three additional
vessels. The newbuildings will be constructed with M-type, Electronically
Controlled, Gas Injection (MEGI) twin engines, which are expected to be
significantly more fuel-efficient and have lower emission levels than engines
currently being utilized in LNG shipping. The Partnership intends to secure
long-term contract employment for both vessels prior to their scheduled
deliveries in the first half of 2016.
"Teekay LNG continued to broaden its position as a leader in liquefied gas
shipping during the fourth quarter, entering into a new joint venture with Exmar
in the LPG carrier sector and placing orders for two LNG newbuilding carriers,"
commented Peter Evensen, Chief Executive Officer of Teekay GP L.L.C. "Last week,
the Partnership finalized its 50/50 joint venture with Exmar which will directly
own and charter-in a fleet of 25 LPG carriers, including eight newbuildings.
This accretive transaction provides Teekay LNG with immediate access to Exmar's
well-established commercial presence in the LPG market, including a sizeable
contract of affreightment portfolio, and deep expertise in medium-sized gas
carrier operations. In addition to providing exposure to the attractive
fundamentals in the LPG shipping market, the newbuilding LPG carriers currently
on order provide the Partnership with visible distributable cash flow growth."
"With the Partnership's recent orders for two 173,400 cubic meter LNG carrier
newbuildings from DSME in South Korea, and options to order up to three
additional vessels, the Partnership is also well positioned for the expected
ramp-up in global LNG supply as several new liquefaction facilities are
scheduled to commence operations in late-2015," Mr. Evensen continued. "The
vessels have manageable tail-weighted shipyard installment payments and, based
on the increased demand for LNG carrier tonnage that is expected to coincide
with the vessel delivery timeframe, we are confident that we will be able to
secure attractive fixed-rate employment for these modern, fuel efficient,
newbuilding vessels which will further contribute to the Partnership's
distributable cash flow growth."
Mr. Evensen continued, "In our conventional tanker segment, during the fourth
quarter, we agreed to amend the time-charter contracts for two of our Suezmax
tankers which will result in a reduced cash flows for 24 months commencing
October 1, 2012. However, we expect that increased cash flow from our recent LPG
joint venture will more than offset any reduction in cash flows from these
vessels during this period. Further to our recent growth transactions, the
Partnership continues to actively bid on new LNG shipping and regasification
projects and review opportunities to acquire quality on-the-water assets. With
approximately $360 million of total liquidity as of December 31, 2012, giving
pro forma effect for the Exmar LPG joint venture, we believe the Partnership is
financially well-positioned for further growth."
Teekay LNG's Fleet
The following table summarizes the Partnership's fleet as of February 15, 2013,
including vessels operated through the Exmar LPG BVBA joint venture:
+--------------------------+----------------------------------------------+
| | Number of Vessels |
| +----------------------------------------+-----+
| | Owned | |
| | Vessels In-Chartered Vessels Newbuilds|Total|
| +----------------------------------------+-----+
|LNG Carrier Fleet |27 ( )[i] - 2| 29|
| | | |
|LPG/Multigas Carrier Fleet| 17 [ii] 5 ( )[iii] 8 [iii]| 30|
| | | |
|Conventional Tanker Fleet | 11 - -| 11|
+--------------------------+----------------------------------------+-----+
|Total | 55 5 10| 70|
+--------------------------+----------------------------------------+-----+
[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 has a 50 percent ownership interests in these vessels.
Financial Summary
The Partnership reported adjusted net income attributable to the partners[1] (as
detailed in Appendix A to this release) of $38.5 million for the quarter ended
December 31, 2012, compared to $29.8 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 decreasing net income by $10.3 million
and increasing net income by $10.6 million for the three months ended December
31, 2012 and 2011, respectively, as detailed in Appendix A. Including these
items, the Partnership reported net income attributable to the partners, on a
GAAP basis, of $28.2 million and $40.3 million for the three months ended
December 31, 2012 and 2011, respectively.
For the year ended December 31, 2012, the Partnership reported adjusted net
income attributable to the partners[1] (as detailed in Appendix A to this
release) of $156.3 million, compared to $108.9 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 decreasing net income by
$32.6 million and $19.0 million for the years ended December 31, 2012 and 2011,
respectively, as detailed in Appendix A. Including these items, the Partnership
reported net income attributable to the partners, on a GAAP basis, of $123.7
million and $89.8 million for the years ended December 31, 2012 and 2011,
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 footnotes 2 and 3 to the Summary Consolidated Statements of Income included
in this release.
[1] 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 above and
Appendix C for further details).
+-----------------------------+------------------------+-----------------------+
| | Three Months Ended | Three Months Ended |
| | | |
| | December 31, 2012 | December 31, 2011 |
| | | |
| | (unaudited) | (unaudited) |
| +------------------------+-----------------------+
| | Lique- Convent- | Lique- Convent- |
| | fied ional | fied ional |
|(in thousands of U.S. | Gas Tanker | Gas Tanker |
|Dollars) |Segment Segment Total|Segment Segment Total|
+-----------------------------+------------------------+-----------------------+
|Net voyage revenues[i] | 70,545 27,086 97,631| 68,966 28,262 97,228|
| | | |
|Vessel operating expenses | 12,810 10,910 23,720| 11,748 10,737 22,485|
| | | |
|Depreciation and amortization| 17,359 8,590 25,949| 16,995 7,372 24,367|
+-----------------------------+------------------------+-----------------------+
|CFVO from consolidated | | |
|vessels[ii] | 54,285 13,069 67,354| 55,468 15,428 70,896|
| | | |
|CFVO from equity accounted | | |
|vessels[ii], [iii] | 38,498 - 38,498| 20,005 - 20,005|
| | | |
|Total CFVO[ii] | 92,783 13,069 105,852| 75,473 15,428 90,901|
+-----------------------------+------------------------+-----------------------+
[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 the Partnership's
website 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.
[ii] Cash flow from vessel operations (CFVO) represents income from vessel
operations before (a) depreciation and amortization expense, (b) amortization of
in-process revenue contracts, (c) write down of vessels and (d) adjustments for
direct financing leases 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 the Partnership's website 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.
[iii] The Partnership's equity accounted investments for the three months ended
December 31, 2012 and 2011 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; and the
Partnership's 33 percent interest in three LNG carriers servicing the Angola LNG
Project. The Partnership's equity accounted investment for the three months
ended December 31, 2012 also includes the Partnership's 33 percent interest in
one other LNG carrier that was delivered in early 2012 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 acquired
six LNG carriers on February 28, 2012.
Liquefied Gas Segment
Cash flow from vessel operations from the Partnership's Liquefied Gas segment,
excluding equity-accounted vessels, decreased to $54.3 million in the fourth
quarter of 2012 from $55.5 million in the same quarter of the prior year. The
decrease is mainly attributable to higher general and administrative costs
related to an increase in business development activities.
Cash flow from vessel operations from the Partnership's equity-accounted vessels
in the Liquefied Gas segment increased to $38.5 million in the fourth quarter of
2012 from $20.0 million in the same quarter of the prior year. This increase was
primarily due to the Teekay LNG-Marubeni joint venture's acquisition of six LNG
carriers from A.P. Moller Maersk A/P (the MALT LNG Carriers) in February 2012
and the acquisition of a 33 percent interest in two of the Angola LNG carriers
from Teekay Corporation between October 2011 and January 2012.
Conventional Tanker Segment
Cash flow from vessel operations from the Partnership's Conventional Tanker
segment decreased to $13.1 million in the fourth quarter of 2012 from $15.4
million in the same quarter of the prior year, primarily as a result of
amendments for two of the Partnership's Suezmax tankers charter contracts which
temporarily reduces the daily hire rate for each vessel by $12,000 from October
2012 until September 2014. However, during this period, if Suezmax spot tanker
rates exceed the amended rates, the charterer will pay the Partnership the
excess amount up to a maximum of the original daily charter rate.
Liquidity
As of December 31, 2012, the Partnership had total liquidity of $495.0 million
(comprised of $113.6 million in cash and cash equivalents and $381.4 million in
undrawn credit facilities), compared to total liquidity of $558.9 million as of
September 30, 2012. The change in liquidity during the fourth quarter of 2012
primarily reflects shipyard installment payments for the two LNG newbuildings
ordered in December 2012. Giving pro forma effect to the Partnership's equity
contribution for the Exmar LPG joint venture transaction, the Partnership's
total liquidity at December 31, 2012 was approximately $360 million.
Conference Call
The Partnership plans to host a conference call on Friday, February 22, 2013 at
11:00 a.m. (ET) to discuss the results for the fourth quarter and fiscal year of
2012. 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 7443167.
* 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 Fourth Quarter and Fiscal Year 2012 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, March
1, 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
7443167.
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 with major energy and
utility companies through its interests in 29 LNG carriers (including one LNG
regasification unit and two newbuildings), 30 LPG/Multigas carriers (including
five chartered-in LPG carriers and eight 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 Year Ended
----------------------------------------------------------------------
December September December December December
31, 30, 31, 31, 31,
2012 2012 2011 2012 2011
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
-------------------------------------------------------------------------------------
VOYAGE
REVENUES 97,958 98,723 97,253 392,251 379,975
-------------------------------------------------------------------------------------
OPERATING
EXPENSES
Voyage
expenses 327 860 25 1,772 1,387
Vessel
operating
expenses 23,720 21,992 22,485 86,347 89,046
Depreciation
and
amortization 25,949 24,570 24,367 99,825 91,919
General and
administrative 7,273 6,254 5,455 27,149 24,120
Write down of
vessels[1] 29,367 - - 29,367 -
-------------------------------------------------------------------------------------
86,636 53,676 52,332 244,460 206,472
-------------------------------------------------------------------------------------
Income from
vessel
operations 11,322 45,047 44,921 147,791 173,503
-------------------------------------------------------------------------------------
OTHER ITEMS
Equity
income[2] 29,634 21,098 8,189 78,866 20,584
Interest
expense (13,265 ) (14,414 ) (13,861 ) (54,211 ) (49,880 )
Interest
income 771 850 1,835 3,502 6,687
Realized and
unrealized
gain (loss) on
derivative
instruments[3] 14,373 (9,945 ) (8,780 ) (29,620 ) (63,030 )
Foreign
exchange
(loss) gain[4] (6,255 ) (6,248 ) 10,722 (8,244 ) 10,310
Other income
(expense) -
net 540 (305 ) 98 1,058 (818 )
-------------------------------------------------------------------------------------
Net income 37,120 36,083 43,124 139,142 97,356
-------------------------------------------------------------------------------------
Net income
attributable
to:
Non-
controlling
interest 8,895 3,022 2,777 15,437 7,508
Partners 28,225 33,061 40,347 123,705 89,848
-------------------------------------------------------------------------------------
Limited
partners'
units
outstanding:
Weighted-
average number
of common and
total units
outstanding -
basic and
diluted 69,683,763 65,882,450 62,885,074 66,328,496 59,147,422
Total number
of units
outstanding at
end of period 69,683,763 69,683,763 64,857,900 69,683,763 64,857,900
-------------------------------------------------------------------------------------
[1] The carrying value of three of the Partnership's conventional Suezmax
tankers (the Tenerife Spirit, Algeciras Spirit and Huelva Spirit) was written
down during the three months and year ended December 31, 2012 due to the
expected termination of their time-charter contracts between August 2013 and
April 2014. The estimated fair value was based on a discounted cash flow
approach and such estimates of cash flows were based on existing time-charter
contracts, lease obligations and budgeted operating costs.
[2] Equity income includes unrealized gains (losses) gains on derivative
instruments as detailed in the table below.
Three Months Ended Year Ended
--------------------------------------------------------------
December September December December December
31, 2012 30, 2012 31, 2011 31, 2012 31, 2011
--------------------------------------------------------------
Equity income 29,634 21,098 8,189 78,866 20,584
Proportionate
share of
unrealized gains
(losses) on
derivative
instruments
included in
equity income 9,599 (870 ) 158 5,548 (5,956 )
--------------------------------------------------------------
Equity income
excluding
unrealized gains
(losses) on
derivative
instruments 20,035 21,968 8,031 73,318 26,540
--------------------------------------------------------------
[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 Year Ended
----------------------------------------------------------------
December September December December December
31, 2012 30, 2012 31, 2011 31, 2012 31, 2011
----------------------------------------------------------------
Realized
(losses) gains
relating to:
Interest rate
swaps (9,614 ) (9,450 ) (9,795 ) (37,427 ) (40,100 )
Interest rate
swaps
terminations - - (22,560 ) - (22,560 )
Toledo Spirit
time-charter
derivative
contract 945 - (40 ) 907 (93 )
----------------------------------------------------------------
(8,669 ) (9,450 ) (32,395 ) (36,520 ) (62,753 )
----------------------------------------------------------------
Unrealized
gains (losses)
relating to:
Interest rate
swaps 21,442 (295 ) (6,345 ) 5,200 (32,237 )
Interest rate
swaps
terminations - - 22,560 - 22,560
Toledo Spirit
time-charter
derivative
contract 1,600 (200 ) 7,400 1,700 9,400
----------------------------------------------------------------
23,042 (495 ) 23,615 6,900 (277 )
----------------------------------------------------------------
Total realized
and unrealized
gains (losses)
derivative
instruments 14,373 (9,945 ) (8,780 ) (29,620 ) (63,030 )
----------------------------------------------------------------
[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 unsecured bonds in May 2012 maturing in 2017. Foreign exchange
(loss) gain also includes unrealized gains (losses) relating to the change in
fair value of such derivative instruments, partially offset by unrealized gains
(losses) on the revaluation of the NOK bonds as detailed in the table below:
Three Months Ended Year Ended
----------------------------------------------------------------
December September December December December
31, 2012 30, 2012 31, 2011 31, 2012 31, 2011
----------------------------------------------------------------
Realized gains
on cross-
currency swaps 102 107 - 257 -
Unrealized
gains (losses)
on cross-
currency swaps 4,516 3,077 - (2,677 ) -
Unrealized
losses on
revaluation of
NOK bonds (3,523 ) (4,828 ) - (791 ) -
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. Dollars)
As at As at As at
December September December
31, 30, 31,
2012 2012 2011
(unaudited) (unaudited) (unaudited)
------------------------------------
ASSETS
Cash and cash equivalents 113,577 91,931 93,627
Restricted cash - current 34,160 31,361 -
Other current assets 19,244 19,327 18,837
Advances to affiliates 13,864 3,338 11,922
Restricted cash - long-term 494,429 496,309 495,634
Vessels and equipment 1,911,016 1,960,756 2,021,125
Advances on newbuilding contracts 38,624 - -
Net investments in direct financing leases 403,386 404,981 409,541
Derivative assets 162,559 167,638 155,259
Investments in and advances to equity
accounted joint ventures 409,735 388,722 191,448
Other assets 39,237 37,668 34,760
Intangible assets 109,984 113,731 120,950
Goodwill 35,631 35,631 35,631
-------------------------------------------------------------------------------
Total Assets 3,785,446 3,751,393 3,588,734
-------------------------------------------------------------------------------
LIABILITIES AND EQUITY
Accounts payable, accrued liabilities and
unearned revenue 59,729 46,019 60,030
Current portion of long-term debt and
capital leases 156,761 253,791 131,925
Advances from affiliates and joint venture
partners 12,083 11,072 17,400
Long-term debt and capital leases 1,894,166 1,730,220 1,830,353
Derivative liabilities 296,295 328,930 293,218
Other long-term liabilities 112,138 111,310 116,099
Equity
Non-controlling interest[1] 41,294 32,434 26,242
Partners' equity 1,212,980 1,237,617 1,113,467
-------------------------------------------------------------------------------
Total Liabilities and Total Equity 3,785,446 3,751,393 3,588,734
-------------------------------------------------------------------------------
[1] 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 Kenai LNG carriers, 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, which in each case the Partnership does not own.
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. Dollars)
Year Ended December 31,
2012 2011
(unaudited) (unaudited)
----------------------------
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
-------------------------------------------------------------------------------
Net operating cash flow 192,013 122,046
-------------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt 500,335 600,862
Debt issuance costs (2,065 ) (2,578 )
Scheduled repayments of long-term debt (84,666 ) (290,940 )
Prepayments of long-term debt (324,274 ) (383,000 )
Scheduled repayments of capital lease obligations
and other long-term liabilities (10,161 ) (89,350 )
Proceeds from equity offering, net of offering
costs 182,316 341,178
Advances to and from affiliates - 27,048
(Increase) decrease in restricted cash (31,217 ) 76,249
Cash distributions paid (195,909 ) (159,380 )
Purchase of Skaugen Multigas Subsidiary - (114,466 )
Advances to joint venture partners (3,600 ) -
Other (385 ) 1,551
-------------------------------------------------------------------------------
Net financing cash flow 30,374 7,174
-------------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of equity accounted investments (170,067 ) (57,287 )
Receipts from direct financing leases 6,155 6,154
Expenditures for vessels and equipment (39,894 ) (64,685 )
Other 1,369 (830 )
-------------------------------------------------------------------------------
Net investing cash flow (202,437 ) (116,648 )
-------------------------------------------------------------------------------
Increase in cash and cash equivalents 19,950 12,572
Cash and cash equivalents, beginning of the year 93,627 81,055
-------------------------------------------------------------------------------
Cash and cash equivalents, end of the year 113,577 93,627
-------------------------------------------------------------------------------
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 Year Ended
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
(unaudited) (unaudited) (unaudited) (unaudited)
-------------------------------------------------------------------------------
Net income - GAAP
basis 37,120 43,124 139,142 97,356
Less:
Net income
attributable to
non-controlling
interest (8,895 ) (2,777 ) (15,437 ) (7,508 )
-------------------------------------------------------------------------------
Net income
attributable to
the partners 28,225 40,347 123,705 89,848
Add (subtract)
specific items
affecting net
income:
Write down of
vessels[1] 29,367 - 29,367 -
Unrealized
foreign exchange
loss (gain)[2] 6,300 (10,722 ) 8,213 (10,310 )
Unrealized
(gains) losses
from derivative
instruments[3] (23,042 ) (23,615 ) (6,900 ) 277
Unrealized
(gains) losses
from derivative
instruments and
other items from
equity accounted
investees[4] (8,849 ) 677 (3,721 ) 6,790
Interest rate
swap
cancellation
costs - 22,560 - 22,560
Other items[5] - - - 949
Non-controlling
interests' share
of items above 6,497 507 5,650 (1,256 )
-------------------------------------------------------------------------------
Total adjustments 10,273 (10,593 ) 32,609 19,010
-------------------------------------------------------------------------------
Adjusted net
income
attributable to
the partners 38,498 29,754 156,314 108,858
-------------------------------------------------------------------------------
[1] The carrying value of three of the Partnership's conventional Suezmax
tankers (the Tenerife Spirit, Algeciras Spirit and Huelva Spirit) was written
down during the three months and year ended December 31, 2012 due to the
expected termination of their time-charter contracts between August 2013 and
April 2014. The estimated fair value was based on a discounted cash flow
approach and such estimates of cash flows were based on existing time-charter
contracts, lease obligations and budgeted operating costs.
[2] 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 bonds and exclude the realized gains relating to
the cross currency swap for the NOK bonds.
[3] Reflects the unrealized (gain) loss due to changes in the mark-to-market
value of interest rate derivative instruments that are not designated as hedges
for accounting purposes.
[4] Reflects the unrealized (gain) loss 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 $1.1 million,
$0.8 million and $0.8 million of acquisition-related costs during the year ended
December 31, 2012, and the three months and the year ended December 31, 2011,
respectively, relating to the acquisition of the six MALT LNG Carriers. In
addition, the three months and the year ended December 31, 2012 each includes a
$0.8 million provision relating to a customer claim relating to a prior year.
[5] Amount for the year ended December 31, 2011 relates to a one-time management
fee associated with the portion of stock-based compensation grants to Teekay
Corporation's former President and Chief Executive Officer that had not yet
vested prior to the date of his retirement on March 31, 2011.
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 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 |
| | | |
| | December 31, 2012 | December 31, 2011 |
| | | |
| | (unaudited) | (unaudited) |
+-----------------------------------+--------------------+---------------------+
|Net income: | 37,120 | 43,124 |
| | | |
|Add: | | |
| | | |
| Depreciation and amortization | 25,949 | 24,367 |
| | | |
| Write down of vessels | 29,367 | - |
| | | |
| Partnership's share of equity | | |
| accounted joint ventures' DCF | | |
| before estimated maintenance | | |
| capital expenditures | 27,748 | 12,359 |
| | | |
| Unamortized amount relating to | | |
| swap cancellation costs | - | 21,782 |
| | | |
| Unrealized foreign exchange loss| | |
| (gain) | 6,300 | (10,722 ) |
| | | |
|Less: | | |
| | | |
| Unrealized gain on derivatives | | |
| and other non-cash items | (25,089 )| (23,130 ) |
| | | |
| Estimated maintenance capital | | |
| expenditures | (14,345 )| (12,045 ) |
| | | |
| Equity income | (29,634 )| (8,189 ) |
+-----------------------------------+--------------------+---------------------+
|Distributable Cash Flow before Non-| | |
|controlling interest | 57,416 | 47,546 |
| | | |
|Non-controlling interests' share of| | |
|DCF before estimated maintenance | | |
|capital expenditures | (3,817 )| (3,442 ) |
+-----------------------------------+--------------------+---------------------+
|Distributable Cash Flow | 53,599 | 44,104 |
+-----------------------------------+--------------------+---------------------+
TEEKAY LNG PARTNERS L.P.
APPENDIX C - SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. Dollars)
Three Months Ended December 31, 2012
-------------------------------------------
(unaudited)
Liquefied Gas Conventional Tanker
Segment Segment Total
-------------------------------------------------------------------------------
Net voyage revenues[1] 70,545 27,086 97,631
Vessel operating expenses 12,810 10,910 23,720
Depreciation and amortization 17,359 8,590 25,949
General and administrative 4,925 2,348 7,273
Write down of vessels - 29,367 29,367
-------------------------------------------------------------------------------
Income (loss) from vessel
operations 35,451 (24,129 ) 11,322
-------------------------------------------------------------------------------
Three Months Ended December 31, 2011
-------------------------------------------
(unaudited)
Liquefied Gas Conventional Tanker
Segment Segment Total
-------------------------------------------------------------------------------
Net voyage revenues[1] 68,966 28,262 97,228
Vessel operating expenses 11,748 10,737 22,485
Depreciation and amortization 16,995 7,372 24,367
General and administrative 3,398 2,057 5,455
-------------------------------------------------------------------------------
Income from vessel operations 36,825 8,096 44,921
-------------------------------------------------------------------------------
[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
website 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.
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,
the Partnership's ability to secure long-term contract employment for the DSME
LNG carrier newbuildings and the Partnership's ability to acquire quality on-
the-water assets; increase in the Partnerships distributable cash flow resulting
from newbuildings and joint ventures, including the Partnership's two DSME LNG
carrier newbuildings and Exmar LPG BVBA joint venture; the ability of cash flow
from the Exmar LPG BVBA joint venture to offset the reduced cash flow in the
conventional tanker segment; the success of the Partnership's joint ventures,
including the Exmar LPG BVBA joint venture; Exmar LPG BVBA's ability to
refinance its joint venture fleet and four newbuildings; the expected delivery
dates for the Partnership's newbuildings; the expected fuel-efficiency and
emission levels of the DSME LNG carrier newbuilding; LNG and LPG shipping market
fundamentals, including the future growth in global LNG supply, the balance of
supply and demand of shipping capacity and shipping charter rates in these
sectors; the Partnership's financial position, including available liquidity;
and the Partnership's ability to secure additional accretive growth
opportunities.
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:
availability of LNG shipping LPG shipping, floating storage, 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 and/or acquire existing
on-the-water assets; 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;
and 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 to purchase additional
vessels or to pursue other projects; changes to the amount or proportion of
revenues, expenses, or debt service costs denominated in foreign currencies;
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, 2011. 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 Partners L.P.
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#1680157]
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Datum: 21.02.2013 - 16:14 Uhr
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News-ID 232051
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contact information:
Town:
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Kategorie:
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