Teekay Offshore Partners First Quarter Report
(Thomson Reuters ONE) -
HAMILTON, BERMUDA--(Marketwired - May 9, 2013) - Highlights
* Generated distributable cash flow(1) of $41.8 million in the first quarter
of 2013.
* Declared first quarter 2013 cash distribution of $0.5253 per unit, an
increase of 2.5 percent from the previous quarter, and intends to announce a
further increase by a minimum of 2.5 percent before the end of the year.
* Completed acquisition of Voyageur Spirit FPSO unit from Teekay Corporation
on May 2, 2013 for $540 million.
* Received offer from Teekay Corporation to acquire its 50 percent interest in
Cidade de Itajai FPSO unit.
* First of four shuttle tanker newbuildings will deliver this week and is
expected to commence 10-year charter with BG Group in June 2013.
* Finalized 10-year charter contract with Salamander Energy plc to convert an
existing shuttle tanker to an FSO unit.
* Liquidity of approximately $560 million as of March 31, 2013, giving pro
forma effect to proceeds from the April 2013 common unit private placement
and preferred unit public offering, as well as the Voyageur Spirit FPSO
acquisition.
Teekay Offshore GP LLC, the general partner of Teekay Offshore Partners L.P.
(Teekay Offshore or the Partnership) (NYSE: TOO), today reported the
Partnership's results for the quarter ended March 31, 2013. During the first
quarter of 2013, the Partnership generated distributable cash flow(1) of $41.8
million, compared to $42.4 million in the same period of the prior year.
On April 18, 2013, a cash distribution of $0.5253 per common unit was declared
for the quarter ended March 31, 2013, an increase of $0.0128 per unit, or 2.5
percent, from the previous quarter. The cash distribution is payable on May
14, 2013 to all unitholders of record on April 30, 2013.
"We are pleased to have completed the accretive acquisition of the Voyageur
Spirit FPSO last week, which brings the Partnership's FPSO fleet to four units
and will increase its distributable cash flow commencing in the second quarter,"
commented Peter Evensen, Teekay Offshore GP LLC's Chief Executive Officer. "As a
result of this accretive acquisition, we have increased the Partnership's first
quarter distribution by 2.5 percent to $0.5253 per unit, payable in May 2013."
Mr. Evensen continued, "We expect that the distributable cash flow accretion
provided by the four BG shuttle tanker newbuildings, the Partnership's expected
acquisition of a 50 percent interest in the Cidade de Itajai FPSO, and the post-
acquisition contribution from the Voyageur Spirit FPSO will enable us to further
increase our quarterly distribution by a minimum of 2.5 percent later in 2013.
With the recent completion of the $150 million Series A perpetual preferred unit
public offering in April 2013, which represents a new source of equity financing
that is non-dilutive to our existing common unitholders, and the Partnership's
recent $60 million common unit private placement, the equity requirements for
the Cidade de Itajai FPSO and four BG shuttle tankers are now covered."
"During the past year, we have seen an increase in the number of new offshore
projects and Teekay Offshore is currently bidding on several new organic FPSO
and FSO projects," Mr. Evensen added. "This past week, we were successful in
finalizing an agreement with Salamander Energy plc to convert one of our older
shuttle tankers, the Navion Clipper, to an FSO unit that will operate offshore
Thailand under a new 10-year charter contract commencing in the third quarter of
2014. The project's fully-built-up capital cost is approximately $50 million
and, upon commencement of the charter contract, the FSO unit is estimated to
generate approximately $6.5 million in annual cash flow from vessel operations."
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
distributable cash flow to the most directly comparable financial measure under
United States generally accepted accounting principles (GAAP).
Summary of Recent Transactions
Voyageur Spirit FPSO Acquisition
On May 2, 2013, the Partnership completed the acquisition of the Voyageur Spirit
FPSO unit from Teekay Corporation at a purchase price of $540 million. The
Voyageur Spirit FPSO operates on the Huntington Field in the North Sea under a
five-year contract, plus up to 10 one-year extension options, with E.ON Ruhrgas
UK E&P Limited. The acquisition was financed with a new $330 million debt
facility secured by the unit, a portion of the proceeds from the public offering
completed in September 2012 and a $40 million common unit private placement of
common units to Teekay Corporation completed on May 2, 2013.
In anticipation of the Voyageur Spirit FPSO acquisition, in February 2013 the
Partnership made a partial prepayment of $150 million to Teekay Corporation. The
Partnership received interest at a rate of LIBOR plus a margin of 4.25 percent
on the prepaid funds to Teekay Corporation until the Partnership acquired the
FPSO unit on May 2, 2013.
Offer to Acquire a 50 Percent Interest in Cidade de Itajai FPSO
In April 2013, the Partnership received an offer from Teekay Corporation to
acquire its 50 percent interest in the Cidade de Itajai (Itajai) FPSO unit at
its fully built-up cost. The Itajai FPSO unit has been operating on the Bauna
and Piracaba (previously named Tiro and Sidon) fields in the Santos Basin
offshore Brazil since February 2013 under a nine-year time-charter contract
(plus extension options) with Petroleo Brasileiro SA (Petrobras). The offer is
currently being reviewed by the Partnership's Conflicts Committee. The remaining
50 percent interest in the Itajai FPSO unit is owned by Brazilian-based
Odebrecht Oil & Gas S.A. (a member of the Odebrecht group) (Odebrecht).
Salamander Energy FSO Contract
In May 2013, the Partnership finalized the ten-year charter contract, plus
extension options, with Salamander Energy plc (Salamander) to supply an FSO unit
in Asia. The Partnership intends to convert its 1993-built shuttle tanker, the
Navion Clipper, into an FSO unit for an estimated fully built-up cost of
approximately $50 million. The unit is expected to commence its contract with
Salamander in the third quarter of 2014.
Teekay Offshore's Fleet
The following table summarizes Teekay Offshore's fleet as of May 2, 2013.
+---------------+--------------------------------------------------------------+
| | Number of Vessels |
| +--------------------------------------------------------+-----+
| | Committed | |
| | Owned Chartered-in Newbuildings / Conversion| |
| |Vessels Vessels Conversions Candidates ((iii))|Total|
| +--------------------------------------------------------+-----+
|Shuttle Tanker | | |
|Segment |27((i)) 4 4((ii)) 1| 36|
| | | |
|FPSO Segment | 4 - - -| 4|
| | | |
|Conventional | | |
|Tanker Segment | 6 - - -| 6|
| | | |
|FSO Segment | 5 - 1((iv)) -| 6|
+---------------+--------------------------------------------------------+-----+
|Total 42 4 5 1| 52|
+------------------------------------------------------------------------+-----+
i. Includes six shuttle tankers in which Teekay Offshore's ownership interest
is 50 percent and three shuttle tankers in which Teekay Offshore's ownership
interest is 67 percent.
ii. Includes four shuttle tanker newbuildings expected to deliver in May 2013,
June 2013, September 2013 and November 2013 and to commence operations under 10-
year charter contracts with a subsidiary of BG Group plc in Brazil.
iii.Includes one shuttle tanker which is currently in lay-up and is a candidate
for conversion to an offshore asset.
iv. Includes one shuttle tanker, the Navion Clipper, which is currently being
converted into an FSO unit and is expected to commence operations under a 10-
year charter contract in mid-2014 with Salamander Energy plc.
Future Growth Opportunities
Pursuant to an omnibus agreement that the Partnership entered into in connection
with our initial public offering in December 2006, Teekay Corporation is
obligated to offer to the Partnership its interest in certain shuttle tankers,
FSO units and FPSO units Teekay Corporation owns or may acquire in the future,
provided the vessels are servicing contracts with remaining durations of greater
than three years. The Partnership may also acquire other vessels that Teekay
Corporation may offer it from time to time and also intends to pursue direct
acquisitions from third parties and new organic offshore projects.
Shuttle Tankers
In June 2011, the Partnership entered into a new long-term contract with a
subsidiary of BG Group plc. (BG) to provide shuttle tanker services in Brazil.
The contract with BG will be serviced by four Suezmax newbuilding shuttle
tankers, being constructed by Samsung Heavy Industries for an estimated total
cost of approximately $446 million (excluding capitalized interest and
miscellaneous construction costs). Shortly after their scheduled deliveries
between May 2013 and November 2013, the shuttle tankers will commence operations
under ten-year, fixed-rate time-charter-out contracts. The contracts with BG
also include certain extension options and vessel purchase options exercisable
by the charterer. This week, the Partnership expects to take delivery of the
Samba Spirit, the first of the four shuttle tanker newbuildings, which is
expected to commence its time-charter contract with BG in June 2013.
In November 2012, the Partnership agreed to acquire a 2010-built HiLoad Dynamic
Positioning (DP) unit from Remora AS (Remora), a Norway-based offshore marine
technology company, for a total purchase price of approximately $55 million,
including modification costs. The acquisition of the HiLoad DP unit, which will
operate under a ten-year time-charter contract with Petrobras in Brazil, is
expected to be completed by June 30, 2013 and the unit is expected to commence
operations at its full time-charter rate in early 2014 once modifications,
delivery of the DP unit to Brazil, and operational testing have been completed.
Under the terms of an agreement between Remora and Teekay Offshore, the
Partnership has the right of first refusal to acquire any future HiLoad DP
projects developed by Remora.
FPSO Units
In May 2011, Teekay Corporation entered into a joint venture agreement with
Odebrecht to jointly pursue FPSO projects in Brazil. Odebrecht is a well-
established Brazil-based company that operates in the engineering and
construction, petrochemical, bioenergy, energy, oil and gas, real estate and
environmental engineering sectors, with over 120,000 employees and a presence in
over 20 countries. As part of the joint venture agreement, Odebrecht is a 50
percent partner in the Cidade de Itajai FPSO project and Teekay Corporation is
currently working with Odebrecht on other FPSO project opportunities that, if
awarded, may result in the Partnership being able to acquire Teekay
Corporation's interests in such projects pursuant to the omnibus agreement. As
discussed above, in April 2013, the Partnership received an offer from Teekay
Corporation to acquire its 50 percent interest in the Cidade de Itajai FPSO unit
at Teekay Corporation's fully built-up cost. The offer is currently being
reviewed by the Partnership's Conflicts Committee.
Pursuant to the omnibus agreement and a subsequent agreement, Teekay Corporation
is obligated to offer to sell to the Partnership the Petrojarl Foinaven FPSO
unit, an existing unit owned by Teekay Corporation and operating under a long-
term contract in the North Sea, prior to July 9, 2013. The purchase price for
the Petrojarl Foinaven would be its fair market value plus any additional tax or
other costs incurred by Teekay Corporation to transfer ownership of this FPSO
unit to the Partnership.
In June 2011, Teekay Corporation entered into a contract with BG Norge Limited
to provide a harsh weather FPSO unit to operate in the North Sea. The contract
will be serviced by an FPSO unit being constructed by Samsung Heavy Industries
for a fully built-up cost of approximately $1 billion. Pursuant to the omnibus
agreement, Teekay Corporation is obligated to offer to the Partnership its
interest in this FPSO project at Teekay Corporation's fully built-up cost within
a year after the commencement of the charter, which commencement is expected to
occur during the first half of 2014.
In November 2011, Teekay Corporation acquired from Sevan Marine ASA, a Norway-
based developer of cylindrical-shaped FPSO units, the Hummingbird Spirit FPSO
unit, which is currently operating under a short-term charter contract. Pursuant
to the omnibus agreement, Teekay Corporation is obligated to offer to the
Partnership the Hummingbird Spirit FPSO unit within approximately one year
following commencement of a charter contract with a firm period of greater than
three years in duration.
Teekay Corporation owns two additional FPSO units, the Petrojarl Banff FPSO and
the Petrojarl 1 FPSO, which may also be offered to the Partnership in the future
pursuant to the omnibus agreement.
Financial Summary
The Partnership reported adjusted net income attributable to the partners(1) of
$18.9 million for the quarter ended March 31, 2013, compared to $26.1 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 $1.3 million and $26.5 million for the quarters ended
March 31, 2013 and March 31, 2012, respectively, as detailed in Appendix A.
Including these items, the Partnership reported, on a GAAP basis, net income
attributable to the partners of $20.2 million for the first quarter of 2013,
compared to net income of $52.6 million in the same period of the prior year.
Net revenues(2) were $201.2 million for the first quarter of 2013, compared to
$202.6 million in the same period of the prior year.
Adjusted net income attributable to the partners for the three months ended
March 31, 2013 declined from the same period in the prior year, mainly due to
the sale and lay-up of older shuttle and conventional tankers during 2012 as
their related charter contracts expired or terminated. In addition, there was a
higher level of maintenance activity in the FPSO fleet during the first quarter
of 2013 compared to the same period in the prior year. Adjusted net income is
expected to increase during the course of 2013 as a result of the acquisition of
the Voyageur Spirit FPSO in May 2013 and the deliveries of the four shuttle
tanker newbuildings during 2013
For accounting purposes, the Partnership is required to recognize, through the
consolidated statements of income, changes in the fair value of certain
derivative instruments as unrealized gains or losses. This revaluation does not
affect the economics of any hedging transactions nor does it have any impact on
the Partnership's actual cash flows or the calculation of its distributable cash
flow.
1. Adjusted net income attributable to the partners is a non-GAAP financial
measure. Please refer to Appendix A included in 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 that are typically excluded by securities analysts in their published
estimates of the Partnership's financial results.
2. Net revenues is a non-GAAP financial measure used by certain investors to
measure the financial performance of shipping companies. Please refer to
Appendix C included in this release for a reconciliation of this non-GAAP
measure to the most directly comparable financial measure under GAAP.
Operating Results
The following table highlights certain financial information for Teekay
Offshore's four segments: the Shuttle Tanker segment, the FPSO segment, the
Conventional Tanker segment and the FSO segment (please refer to the "Teekay
Offshore's Fleet" section of this release above and Appendix D for further
details).
+--------------------+---------------------------------------------------------+
| | Three Months Ended |
| +---------------------------------------------------------+
| | March 31, 2013 |
| +---------------------------------------------------------+
| | (unaudited) |
| +---------------------------------------------------------+
| | Shuttle |
|(in thousands of | Tanker FPSO Conventional FSO |
|U.S. dollars) | Segment Segment Tanker Segment Segment Total|
+--------------------+---------------------------------------------------------+
|Net revenues((1)) | 108,056 57,685 19,830 15,625 201,196|
| | |
| | |
| | |
|Vessel operating | |
|expenses | 37,967 29,501 3,362 8,285 79,115|
| | |
|Time-charter hire | |
|expense | 14,777 - - - 14,777|
| | |
|Depreciation and | |
|amortization | 27,605 12,752 2,410 2,582 45,349|
| | |
| | |
| | |
|Cash flow from | |
|vessel | |
|operations((1)) | 48,919 22,256 15,520 7,358 94,053|
+--------------------+---------------------------------------------------------+
| | Three Months Ended |
| +---------------------------------------------------------+
| | March 31, 2012 |
| +---------------------------------------------------------+
| | (unaudited) |
| +---------------------------------------------------------+
| | Shuttle |
|(in thousands of | Tanker FPSO Conventional FSO |
|U.S. dollars) | Segment Segment Tanker Segment Segment Total|
+--------------------+---------------------------------------------------------+
|Net revenues((1)) | 117,772 57,759 12,353 14,685 202,569|
| | |
| | |
| | |
|Vessel operating | |
|expenses | 43,226 24,743 3,153 7,348 78,470|
| | |
|Time-charter hire | |
|expense | 13,617 - - - 13,617|
| | |
|Depreciation and | |
|amortization | 31,371 12,726 2,837 2,258 49,192|
| | |
| | |
| | |
|Cash flow from | |
|vessel | |
|operations((1)) | 56,768 27,589 10,240 7,486 102,083|
+--------------------+---------------------------------------------------------+
1. Net revenues and cash flow from vessel operations are non-GAAP financial
measures used by certain investors to measure the financial performance of
shipping companies. Please refer to Appendix C and Appendix E, respectively,
included in this release for reconciliations of these non-GAAP measures to the
most directly comparable GAAP financial measures.
Shuttle Tanker Segment
Cash flow from vessel operations from the Partnership's Shuttle Tanker segment
decreased to $48.9 million for the first quarter of 2013 compared to $56.8
million for the same period of the prior year, primarily as a result of the lay-
up of the Navion Torinita and the Navion Clipper upon expiration of their time-
charter contracts in the second and fourth quarters of 2012, respectively, and
the sale of the Navion Savonita in the fourth quarter of 2012.
FPSO Segment
Cash flow from vessel operations from the Partnership's FPSO segment decreased
to $22.3 million for the first quarter of 2013 compared to $27.6 million for the
same period of the prior year. The decrease was primarily due to an increase in
vessel operating expenses related to higher maintenance costs for the Petrojarl
Varg FPSO and higher crewing and manning costs for the Petrojarl Varg and
Piranema Spirit FPSO units.
Conventional Tanker Segment
Cash flow from vessel operations from the Partnership's Conventional Tanker
segment increased to $15.5 million in the first quarter of 2013 compared to
$10.2 million for the same period of the prior year, primarily due to a $6.8
million termination fee received from Teekay Corporation in March 2013 for the
early termination of the time-charter contract for the Poul Spirit.
FSO Segment
Cash flow from vessel operations from the Partnership's FSO segment in the first
quarter of 2013 of $7.4 million was consistent with the $7.5 million generated
in the same period of the prior year.
Liquidity
As of March 31, 2013, the Partnership had total liquidity of $373.6 million,
which consisted of $172.8 million in cash and cash equivalents and $200.8
million in undrawn revolving credit facilities. Giving affect for the $60
million common unit private placement and the $150 million preferred unit public
offering completed in April 2013 and the Partnership's acquisition of the
Voyageur Spirit FPSO in May 2013 (net of the $150 million prepayment made in
February 2013), the Partnership's liquidity at March 31, 2013 would have been
approximately $560 million.
2012 Audited Financial Statements
Teekay Offshore Partners L.P. filed its 2012 Annual Report on Form 20-F with the
U.S. Securities and Exchange Commission (SEC) on April 11, 2013. Copies are
available on Teekay Offshore's website, under "Investor Briefcase", at
www.teekayoffshore.com. Unitholders may request a printed copy of this annual
report, including the complete audited financial statements free of charge by
contacting Teekay Offshore's Investor Relations.
Conference Call
The Partnership also plans to host a conference call on Friday, May 10, 2013 at
noon (ET) to discuss the results for the first 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 1-866-322-8032 or 416-640-3406, if outside North America, and
quoting conference ID code 2708898.
* By accessing the webcast, which will be available on Teekay Offshore's
website at www.teekayoffshore.com (the archive will remain on the website
for a period of 30 days).
A supporting First Quarter 2013 Earnings Presentation will also be available at
www.teekayoffshore.com in advance of the conference call start time.
The conference call will be recorded and available until Friday, May 17, 2013.
This recording can be accessed following the live call by dialing
1-888-203-1112 or 647-436-0148, if outside North America, and entering access
code 2708898.
About Teekay Offshore Partners L.P.
Teekay Offshore Partners L.P. is an international provider of marine
transportation, oil production and storage services to the offshore oil industry
focusing on the fast-growing, deepwater offshore oil regions of the North Sea
and Brazil. Teekay Offshore is structured as a publicly-traded master limited
partnership and owns interests in 36 shuttle tankers (including four chartered-
in vessels and four committed newbuildings), four floating production, storage
and offloading (FPSO) units, six floating storage and offtake (FSO) units
(including one committed FSO conversion unit) and six conventional oil tankers.
The majority of Teekay Offshore's fleet is employed on long-term, stable
contracts. In addition, Teekay Offshore has rights to participate in certain
other FPSO and shuttle tanker opportunities provided by Teekay Corporation
(NYSE: TK) and Sevan Marine ASA (Oslo Bors: SEVAN).
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 |
| |
|(in thousands of U.S. dollars, except unit data) |
+------------------------------------------------------------------------------+
| |
| |
| Three Months Ended |
| +----------------------------------------------------+
| | December |
| |March 31, 2013 31, 2012 March 31, 2012 |
| +----------------------------------------------------+
| | (unaudited) (unaudited) (unaudited) |
| +----------------------------------------------------+
|REVENUES | 224,422 238,303 233,477 |
+-------------------------+----------------------------------------------------+
| | |
| | |
|OPERATING EXPENSES | |
| | |
|Voyage expenses | 23,226 26,881 30,908 |
| | |
|Vessel operating | |
|expenses ((1)) | 79,115 88,689 78,470 |
| | |
|Time-charter hire expense| 14,777 15,493 13,617 |
| | |
|Depreciation and | |
|amortization | 45,349 47,029 49,192 |
| | |
|General and | |
|administrative ((1)) | 10,665 7,743 9,178 |
| | |
|Write-down of vessels | 11,247 13,529 - |
| | |
|Loss on sale of vessel | - 778 - |
| | |
|Restructuring charge((2))| 659 1,115 - |
+-------------------------+----------------------------------------------------+
| | 185,038 201,257 181,365 |
+-------------------------+----------------------------------------------------+
|Income from vessel | |
|operations | 39,384 37,046 52,112 |
| +----------------------------------------------------+
|OTHER ITEMS | |
| | |
|Interest expense | (11,680 ) (10,892 ) (12,598 )|
| | |
|Interest income | 195 493 212 |
| | |
|Realized and unrealized | |
|(loss) gain on derivative| |
|instruments ((3)) | (1,077 ) 31,187 16,239 |
| | |
|Foreign exchange (loss) | |
|gain((4)) | (3,640 ) 2,272 (2,760 )|
| | |
|Income tax recovery | |
|(expense) | 234 11,041 (1,485 )|
| | |
|Loss on bond | |
|repurchase((5)) | (1,759 ) - - |
| | |
|Other income - net | 313 314 1,397 |
| +----------------------------------------------------+
|Net income from | |
|continuing operations | 21,970 71,461 53,117 |
| | |
|Net (loss) income from | |
|discontinued | |
|operations((6)) | - (5,759 ) 1,486 |
+-------------------------+----------------------------------------------------+
|Net income | 21,970 65,702 54,603 |
+-------------------------+----------------------------------------------------+
|Net income attributable | |
|to: | |
| | |
| Non-controlling | |
| interests | 1,777 (2,982 ) 1,969 |
| | |
| Partners | 20,193 68,684 52,634 |
| | |
|Limited partners' units | |
|outstanding: | |
| | |
| Weighted-average number| |
| of common units | |
| outstanding | |
| | |
| - Basic | 80,105,408 80,105,408 70,626,554 |
| | |
| - Diluted | 80,106,741 80,105,408 70,626,554 |
| | |
|Total units outstanding | |
|at end of period | 80,105,408 80,105,408 70,626,554 |
+-------------------------+----------------------------------------------------+
1. In order to more closely align the Partnership's presentation to that of
many of its peers, the cost of ship management services of $9.2 million for the
three months ended March 31, 2013 have been presented in vessel operating
expenses. Prior to 2013, the Company 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 $10.0 million and $10.1 million for the three months
ended December 31, 2012 and March 31, 2012, respectively.
2. Restructuring charge for the quarter ended March 31, 2013 relates to the
reorganization of the Partnership's marine operations to create better alignment
with its shuttle tanker business unit. Restructuring charge for the quarter
ended December 31, 2012 relates to the reorganization of the Partnership's
shuttle and conventional tanker business units.
3. The realized (losses) gains on derivative instruments relate to the amounts
the Partnership actually paid or received to settle such derivative instruments,
and the unrealized gains (losses) on derivative instruments relate to the change
in fair value of such derivative instruments, as detailed in the table below:
Three Months Ended
------------------------------------------------------
March 31, 2013 December 31, 2012 March 31, 2012
------------------------------------------------------
Realized (losses) gains
relating to:
Interest rate swaps (14,623 ) (14,728 ) (15,007 )
Foreign currency
forward contract 353 1,104 1,198
------------------------------------------------------
(14,270 ) (13,624 ) (13,809 )
------------------------------------------------------
Unrealized gains
(losses) relating to:
Interest rate swaps 14,971 44,616 24,763
Foreign currency
forward contracts (1,778 ) 195 5,285
------------------------------------------------------
13,193 44,811 30,048
------------------------------------------------------
Total realized and
unrealized gains
(losses)
------------------------------------------------------
on non-designated
derivative instruments (1,077 ) 31,187 16,239
------------------------------------------------------
4. Foreign exchange (loss) gain includes realized gains relating to the amounts
the Partnership received to settle the Partnership's non-designated cross
currency swaps that were entered into as an economic hedge in relation to the
Partnership's Norwegian Kroner (NOK)- denominated unsecured bonds as detailed in
the table below. The Partnership issued NOK 600 million unsecured bonds in 2010
maturing in 2013 of which it repurchased NOK 388.5 million in the first quarter
of 2013 and recognized a realized gain of $6.8 million on the partial early
termination of a cross currency swap and a realized foreign exchange loss of
$6.6 million on the repurchase of the bonds. The Partnership also issued NOK
600 million unsecured bonds in 2012 maturing in 2017 and NOK 1,300 million of
unsecured bonds in 2013 maturing in 2016 and 2018. 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 (losses) on
the revaluation of the NOK bonds are also detailed in the table below:
Three Months Ended
------------------------------------------------------
March 31, 2013 December 31, 2012 March 31, 2012
------------------------------------------------------
Realized gain on partial
termination of cross-
currency swap 6,800 - -
Realized foreign
exchange loss on partial
repurchase of NOK bonds (6,573 ) - -
Realized gains on cross-
currency swaps 725 668 994
Unrealized (losses)
gains on cross-currency
swaps (25,502 ) 6,835 7,880
Unrealized gains
(losses) on revaluation
of NOK bonds 25,011 (6,038 ) (9,031 )
5. Loss on bond repurchase for the quarter ended March 31, 2013 relates to the
repurchase of NOK 388.5 million of the Partnership's existing NOK 600 million
bond issue at a premium.
6. Results for four conventional tankers (Hamane Spirit, Torben Spirit, Luzon
Spirit and Leyte Sprit), which we sold or held for sale during 2012, have been
included in Net (loss) income from discontinued operations for the three months
ended December 31, 2012 and March 31, 2012.
-------------------------------------------------------------------------------
TEEKAY OFFSHORE PARTNERS L.P.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
-------------------------------------------------------------------------------
As at As at
---------------------------------
December
March 31, 2013 31, 2012
---------------------------------
(unaudited) (unaudited)
---------------------------------
ASSETS
Cash and cash equivalents 172,801 206,339
Vessels held for sale - 13,250
Other current assets 304,284 168,998
Vessels and equipment 2,287,334 2,327,337
Advances on newbuilding contracts 139,628 127,286
Other assets 66,258 67,541
Intangible assets 14,230 15,527
Goodwill 127,113 127,113
-------------------------------------------------------------------------------
Total Assets 3,111,648 3,053,391
---------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities 85,865 99,569
Other current liabilities 102,470 108,302
Current portion of long-term debt 250,414 248,385
Long-term debt 1,623,410 1,521,247
Other long-term liabilities 337,551 341,844
Redeemable non-controlling interest 28,383 28,815
Equity:
Non-controlling interests 46,344 44,135
Partners' equity 637,211 661,094
-------------------------------------------------------------------------------
Total Liabilities and Equity 3,111,648 3,053,391
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
TEEKAY OFFSHORE PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
-------------------------------------------------------------------------------
Year Ended
----------------------------------
March 31, 2013 March 31, 2012
----------------------------------
(unaudited) (unaudited)
Cash and cash equivalents provided by (used
for)
OPERATING ACTIVITIES
-------------------------------------------------------------------------------
Net operating cash flow 46,346 71,193
-------------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from long-term debt 234,986 233,202
Scheduled repayments of long-term debt (23,019 ) (21,154 )
Prepayments of long-term debt (90,352 ) (188,274 )
Realized gain on cross currency swap 6,800 -
Debt issuance costs (5,091 ) (3,913 )
Cash distributions paid by the Partnership (44,209 ) (37,801 )
Cash distributions paid by subsidiaries to
non-controlling interests - (2,047 )
Other (158 ) 884
-------------------------------------------------------------------------------
Net financing cash flow 78,957 (19,103 )
----------------------------------
INVESTING ACTIVITIES
Prepayment of purchase price of Voyageur
Spirit FPSO (150,000 ) -
Expenditures for vessels and equipment (23,785 ) (2,199 )
Proceeds from sale of vessels and equipment 13,250 -
Direct financing lease payments received 1,694 4,917
-------------------------------------------------------------------------------
Net investing cash flow (158,841 ) 2,718
----------------------------------
(Decrease) increase in cash and cash
equivalents (33,538 ) 54,808
Cash and cash equivalents, beginning of the
period 206,339 179,934
-------------------------------------------------------------------------------
Cash and cash equivalents, end of the period 172,801 234,742
-------------------------------------------------------------------------------
---------------------------------------------------
TEEKAY OFFSHORE 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
----------------------------------
March 31, 2013 March 31, 2012
----------------------------------
(unaudited) (unaudited)
Net income - GAAP basis 21,970 54,603
Adjustments:
Net income attributable to non-controlling
interests (1,777 ) (1,969 )
-------------------------------------------------------------------------------
Net income attributable to the partners 20,193 52,634
Add (subtract) specific items affecting net
income:
Foreign exchange losses ((1)) 4,365 3,752
Unrealized gains on derivative
instruments ((2)) (13,193 ) (30,048 )
Termination fee ((3)) (6,800 ) -
Write-down of vessel ((4)) 11,247 -
Restructuring charge and other ((5)) 821 (566 )
Loss on bond repurchase ((6)) 1,759 -
Non-controlling interests' share of items
above ((7)) 470 313
-------------------------------------------------------------------------------
Total adjustments (1,331 ) (26,549 )
-------------------------------------------------------------------------------
Adjusted net income attributable to the
partners 18,862 26,085
-------------------------------------------------------------------------------
1. Foreign exchange 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 unrealized
gains or losses related to the Partnership's cross currency swaps and exclude
the realized gains and losses relating to the cross currency swaps for
outstanding Norwegian bonds of the Partnership and repurchase of Norwegian
kroner bonds.
2. Reflects the unrealized (gains) losses due to changes in the mark-to-market
value of interest rate swaps and foreign exchange forward contracts that are not
designated as hedges for accounting purposes.
3. A termination fee was received from Teekay Corporation upon the early
termination of the Poul Spirit conventional tanker time-charter contract with
Teekay Corporation in March 2013.
4. The Poul Spirit conventional tanker was written down to its estimated fair
value in conjunction with the termination of its charter contract in March 2013.
5. Other items for the three months ended March 31, 2013 include restructuring
charges of $0.7 million relating to the reorganization of the Partnership's
marine operations to create better alignment with its shuttle tanker business
unit. Other items for the three months ended March 31, 2013 and 2012 include
$0.1 million and ($0.5) million relating to the revaluation of a fair value
adjustment of contingent consideration liability associated with the purchase of
the Scott Spirit shuttle tanker.
6. Loss on bond repurchase for the three months ended March 31, 2013 relates to
the repurchase of NOK 388.5 million of the Partnership's existing NOK 600
million bond issue at a premium in January 2013.
7. Items affecting net income include items from the Partnership's consolidated
non-wholly-owned subsidiaries. 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 OFFSHORE PARTNERS L.P.
APPENDIX B - RECONCILIATION OF NON-GAAP FINANCIAL MEASURE DISTRIBUTABLE CASH
FLOW
(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-controlling interest, non-cash items, distributions
relating to equity financing of newbuilding installments, vessel acquisition
costs, estimated maintenance capital expenditures, unrealized gains and losses
from derivatives, non-cash income taxes, loss on bond repurchase and unrealized
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
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 for the quarters ended March
31, 2013 and March 31, 2012, respectively.
+--------------------------------------------+---------------------------------+
| | Three Months Ended |
| +---------------------------------+
| |March 31, 2013 March 31, 2012 |
| +---------------------------------+
| | (unaudited) (unaudited) |
+--------------------------------------------+---------------------------------+
| | |
| | |
|Net income | 21,970 54,603 |
| | |
|Add (subtract): | |
| | |
| Write-down of vessel | 11,247 - |
| | |
| Depreciation and amortization | 45,349 49,192 |
| | |
| Loss on bond repurchase | 1,759 - |
| | |
| Non-cash item in discontinued | |
| operations((1)) | - 419 |
| | |
| Foreign exchange and other, net | 2,598 1,144 |
| | |
| Distributions relating to equity financing| |
| of newbuilding installments | 2,459 914 |
| | |
| Estimated maintenance capital expenditures| (24,620 ) (27,673 )|
| | |
| Unrealized gains on non-designated | |
| derivative instruments ((2)) | (13,193 ) (30,048 )|
+--------------------------------------------+---------------------------------+
|Distributable Cash Flow before Non- | |
|Controlling Interests | 47,569 48,551 |
| | |
| Non-controlling interests' share of DCF | (5,813 ) (6,127 )|
+--------------------------------------------+---------------------------------+
|Distributable Cash Flow | 41,756 42,424 |
+--------------------------------------------+---------------------------------+
1. Includes depreciation included within discontinued operations.
2. Derivative instruments include interest rate swaps and foreign exchange
forward contracts.
-------------------------------------------------------------------------
TEEKAY OFFSHORE PARTNERS L.P.
APPENDIX C - RECONCILIATION OF NON-GAAP FINANCIAL MEASURE NET REVENUES
(in thousands of U.S. dollars)
-------------------------------------------------------------------------
Description of Non-GAAP Financial Measure - Net Revenues
Net revenues represents revenues less voyage expenses, which comprise all
expenses relating to certain voyages, including bunker fuel expenses, port fees,
canal tolls and brokerage commissions. Net revenues is a non-GAAP financial
measure used by certain investors to measure the financial performance of
shipping companies, however, it is not required by GAAP and should not be
considered as an alternative to revenues or any other indicator of the
Partnership's performance required by GAAP.
Three Months Ended March 31, 2013
--------------------------------------------------------------
(unaudited)
--------------------------------------------------------------
Shuttle
Tanker FPSO Conventional FSO
Segment Segment Tanker Segment Segment Total
-------------------------------------------------------------------------------
Revenues 130,350 57,685 21,247 15,140 224,422
Voyage expenses
(recoveries) 22,294 - 1,417 (485 ) 23,226
-------------------------------------------------------------------------------
Net revenues 108,056 57,685 19,830 15,625 201,196
-------------------------------------------------------------------------------
Three Months Ended March 31, 2012
--------------------------------------------------------------
(unaudited)
--------------------------------------------------------------
Shuttle
Tanker FPSO Conventional FSO
Segment Segment Tanker Segment Segment Total
-------------------------------------------------------------------------------
Revenues 144,927 57,759 15,766 15,025 233,477
Voyage expenses 27,155 - 3,413 340 30,908
-------------------------------------------------------------------------------
Net revenues 117,772 57,759 12,353 14,685 202,569
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
TEEKAY OFFSHORE PARTNERS L.P.
APPENDIX D - SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. dollars)
-------------------------------------------------------------------------------
Three Months Ended March 31, 2013
--------------------------------------------------------
(unaudited)
--------------------------------------------------------
Shuttle
Tanker FPSO Conventional FSO
Segment Segment Tanker Segment Segment Total
-------------------------------------------------------------------------------
Net revenues ((1)) 108,056 57,685 19,830 15,625 201,196
Vessel operating
expenses((2))
Unternehmensinformation / Kurzprofil:
Datum: 09.05.2013 - 17:35 Uhr
Sprache: Deutsch
News-ID 258377
Anzahl Zeichen: 65600
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 182 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Teekay Offshore Partners First Quarter Report"
steht unter der journalistisch-redaktionellen Verantwortung von
Teekay Offshore Partners L.P. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
