Teekay LNG Partners Reports First Quarter Results
(Thomson Reuters ONE) -
HAMILTON, BERMUDA--(Marketwired - May 9, 2013) - Teekay LNG Partners L.P. (NYSE:
TGP) -
Highlights
* Generated distributable cash flow of $53.7 million in the first quarter of
2013, an increase of 6 percent from the first quarter of 2012.
* Declared first quarter 2013 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.
* Total liquidity of $301.2 million as at March 31, 2013.
Teekay GP L.L.C., the general partner of Teekay LNG Partners L.P. (Teekay LNG or
the Partnership) (NYSE: TGP), today reported the Partnership's results for the
quarter ended March 31, 2013. During the first quarter of 2013, the Partnership
generated distributable cash flow(1) of $53.7 million, compared to $50.8 million
in the same quarter of the previous year. The increase primarily reflects the
incremental distributable cash flow resulting from the following acquisitions: a
50 percent interest in Exmar LPG BVBA, a joint venture with Exmar NV that owns
and charters-in 25 liquefied petroleum gas (LPG) carriers, including eight
newbuilding carriers, in February 2013; and a 52 percent interest in six
liquefied natural gas (LNG) carriers in February 2012.
On April 18, 2013, the Partnership declared a cash distribution of $0.675 per
unit for the quarter ended March 31, 2013. The cash distribution is payable on
May 14, 2013 to all unitholders of record on April 30, 2013.
Exmar LPG Joint Venture
On February 12, 2013, Teekay LNG entered into a joint venture with Belgium-based
Exmar NV to own and charter-in LPG carriers with a primary focus on the mid-size
gas carrier segment. The joint venture entity, called Exmar LPG BVBA includes
20 owned LPG carriers (including eight newbuildings scheduled for delivery
between 2014 and 2016) and five chartered-in LPG carriers. In exchange for its
50 percent ownership in Exmar LPG BVBA, including newbuilding payments made
prior to the establishment of the joint venture, Teekay LNG invested
approximately $134 million of equity and assumed approximately $108 million of
pro rata debt and lease obligations secured by certain vessels in the Exmar LPG
BVBA fleet.
"With 100 percent of the Partnership's LNG fleet operating under fixed-rate
contracts, Teekay LNG is insulated from the recent decline in short-term LNG
shipping rates," commented Peter Evensen, Chief Executive Officer of Teekay GP
L.L.C. "While demand for new LNG carrier capacity is expected to be volatile in
the short-term, following the scheduled start-up of several new liquefaction
projects beginning in late-2015, demand for new LNG carriers is expected to
increase." Mr. Evensen continued. "As a result, the Partnership is currently
bidding on several LNG and floating regasification projects with start-up dates
in late-2015 through 2017, including potential employment opportunities that we
believe are well-suited to the Partnership's two fuel-efficient LNG carrier
newbuildings scheduled for delivery during the first-half of 2016."
(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).
Financial Summary
The Partnership reported adjusted net income attributable to the partners(2) (as
detailed in Appendix A to this release) of $39.1 million for the quarter ended
March 31, 2013, compared to $35.6 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 $15.4 million and
decreasing net income by $10.9 million for the three months ended March
31, 2013 and 2012, respectively, as detailed in Appendix A. Including these
items, the Partnership reported net income attributable to the partners, on a
GAAP basis, of $54.4 million and $24.7 million for the three months ended March
31, 2013 and 2012, respectively.
For accounting purposes, the Partnership is required to recognize the changes in
the fair value of its derivative instruments on its consolidated statements of
income. This method of accounting does not affect the Partnership's cash flows
or the calculation of distributable cash flow, but results in the recognition of
unrealized gains or losses on the consolidated statements of income as detailed
in footnotes 3, 4 and 5 to the Summary Consolidated Statements of Income
included in this release.
(2) Adjusted net income attributable to the partners is a non-GAAP financial
measure. Please refer to Appendix A to this release for a reconciliation of this
non-GAAP measure to the most directly comparable financial measure under GAAP
and information about specific items affecting net income which are typically
excluded by securities analysts in their published estimates of the
Partnership's financial results.
Operating Results
The following table highlights certain financial information for Teekay LNG's
two segments: the Liquefied Gas segment and the Conventional Tanker segment
(please refer to the "Teekay LNG's Fleet" section of this release above and
Appendices C to F for further details).
+-----------------+------------------------------+-----------------------------+
| | Three Months Ended | Three Months Ended |
| | March 31, 2013 | March 31, 2012 |
| | (unaudited) | (unaudited) |
| +------------------------------+-----------------------------+
| |Liquefied Conventional |Liquefied Conventional |
|in thousands of | Gas Tanker | Gas Tanker |
|U.S. Dollars) | Segment Segment Total| Segment Segment Total|
+-----------------+------------------------------+-----------------------------+
|Net voyage | | |
|revenues((i)) | 68,030 28,686 96,716| 70,697 28,300 98,997|
| | | |
|Vessel operating | | |
|expenses | 13,993 11,323 25,316| 11,779 10,608 22,387|
| | | |
|Depreciation and | | |
|amortization | 17,290 6,853 24,143| 17,238 7,519 24,757|
+-----------------+------------------------------+-----------------------------+
|CFVO from | | |
|consolidated | | |
|vessels((ii)) | 51,937 13,633 65,570| 56,832 15,835 72,667|
| | | |
|CFVO from equity | | |
|accounted | | |
|vessels((iii)) | 41,999 - 41,999| 26,186 - 26,186|
| | | |
|Total CFVO((ii)) | 93,936 13,633 107,569| 83,018 15,835 98,853|
+-----------------+------------------------------+-----------------------------+
(i) Net voyage revenues represents voyage revenues less voyage expenses,
which comprise all expenses relating to certain voyages, including
bunker fuel expenses, port fees, canal tolls and brokerage
commissions. Net voyage revenues is a non-GAAP financial measure used
by certain investors to measure the financial performance of shipping
companies. Please see Appendix C for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable GAAP
financial measure.
(ii) Cash flow from vessel operations (CFVO) from consolidated vessels
represents income from vessel operations before (a) depreciation and
amortization expense, (b) amortization of in-process revenue contracts
and includes (c) adjustments for direct financing leases and two
Suezmax tankers to a cash basis. CFVO is included because certain
investors use this data to measure a company's financial performance.
CFVO is not required by GAAP and should not be considered as an
alternative to net income, equity income or any other indicator of the
Partnership's performance required by GAAP. Please see Appendix E for
a reconciliation of CFVO from consolidated vessels (a non-GAAP
measure) as used in this release to the most directly comparable GAAP
financial measure.
(iii) The Partnership's equity accounted investments for the three months
ended March 31, 2013 and 2012 include the Partnership's 40 percent
interest in Teekay Nakilat (III) Corporation, which owns four LNG
carriers; the Partnership's 50 percent interest in the Excalibur and
Excelsior joint ventures, which owns one LNG carrier and one
regasification unit, respectively; the Partnership's 33 percent
interest in four LNG carriers servicing the Angola LNG Project; and
the Partnership's 52 percent interest in MALT LNG Holdings ApS, the
joint venture between the Partnership and Maurbeni Corporation, which
owns six LNG carriers.The Partnership's equity accounted investments
for the three months ended March 31, 2013 also includes the
Partnership's acquisition of a 50 percent interest in Exmar LPG BVBA,
the joint venture between the Partnership and Exmar NV, completed in
February 2013, which owns and charters-in 25 vessels in the LPG
carrier segment, including eight newbuildings. Please see Appendix F
for a description and reconciliation of CFVO from equity accounted
vessels (a non-GAAP measure) as used in this release to the most
directly comparable GAAP financial measure.
Liquefied Gas Segment
Cash flow from vessel operations from the Partnership's Liquefied Gas segment,
excluding equity-accounted vessels, decreased to $51.9 million in the first
quarter of 2013 from $56.8 million in the same quarter of the prior year. The
decrease is primarily due to the scheduled drydocking of the Arctic Spirit
during the first quarter of 2013, which resulted in 41 days of off-hire, and
higher vessel operating expenditures due to preparations for the scheduled
drydocking of the two Tangguh project LNG carriers during the second and fourth
quarters in 2013.
Cash flow from vessel operations from the Partnership's equity-accounted vessels
in the Liquefied Gas segment increased to $42.0 million in the first quarter of
2013 from $26.2 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 50 percent interest in the Exmar LPG BVBA joint venture
in February 2013.
Conventional Tanker Segment
Cash flow from vessel operations from the Partnership's Conventional Tanker
segment decreased to $13.6 million in the first quarter of 2013 from $15.8
million in the same quarter of the prior year, primarily as a result of
amendments to two of the Partnership's Suezmax tanker charter contracts that
temporarily reduces the daily hire rate for each vessel by $12,000 from October
2012 until September 2014. During this period, however, if Suezmax spot tanker
rates exceed the amended rates, the charterer will pay the Partnership the
excess amount up to a maximum of the original daily charter rate.
Teekay LNG's Fleet
The following table summarizes the Partnership's fleet as of May 1, 2013:
+--------------------------+-------------------------------------------+
| | Number of Vessels |
| +--------------+------------+---------+-----+
| | Owned|In-Chartered| | |
| | Vessels| Vessels|Newbuilds|Total|
| +--------------+------------+---------+-----+
|LNG Carrier Fleet | 27 ((i)) - 2| 29|
| | | |
|LPG/Multigas Carrier Fleet|16 ((ii)(iii)) 5 ((iv)) 8 ((ii))| 29|
| | | |
|Conventional Tanker Fleet | 11 - -| 11|
+--------------------------+-------------------------------------+-----+
|Total | 54 5 10| 69|
+--------------------------+-------------------------------------+-----+
(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) Excludes one LPG carrier, the Donau, owned by the Exmar LPG BVBA that
was sold in April 2013.
(iv) The Partnership's interest in these vessels is 50 percent.
Liquidity
As of March 31, 2013, the Partnership had total liquidity of $301.2 million
(comprised of $91.0 million in cash and cash equivalents and $210.2 million in
undrawn credit facilities), compared to total liquidity of $495.0 million as of
December 31, 2012. The decrease in liquidity during the first quarter of 2013 is
primarily due to the acquisition of the Partnership's 50 percent interest in
Exmar LPG BVBA, advances to Exmar LPG BVBA of $13.8 million to fund newbuilding
installments and drydocking expenditures incurred during the quarter.
Availability of 2012 Annual Report
The Partnership filed its 2012 Annual Report on Form 20-F with the U.S.
Securities and Exchange Commission (SEC) on April 16, 2013. Copies of this
report are available on Teekay LNG's website, under "SEC Filings", at
www.teekaylng.com. Unitholders may request a printed copy of this Annual Report,
including the complete audited financial statements, free of charge by
contacting Teekay LNG Partners Investor Relations.
Conference Call
The Partnership plans to host a conference call on Friday, May 10, 2013 at
11:00 a.m. (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 (866) 322-2356 or (416) 640-3405, if outside North America, and
quoting conference ID code 2188375.
* 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 First Quarter 2013 Earnings Presentation will also be available at
www.teekaylng.com in advance of the conference call start time.
The conference call will be recorded and made available until Friday, May
17, 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 2188375.
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
generally under long-term, fixed-rate charter contracts through its interests in
29 LNG carriers (including one LNG regasification unit and two newbuildings),
29 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
-------------------------------------
March 31, December 31, March 31,
2013 2012 2012
(unaudited) (unaudited) (unaudited)
-------------------------------------------------------------------------------
VOYAGE REVENUES 97,107 98,236 99,340
-------------------------------------------------------------------------------
OPERATING EXPENSES
Voyage expenses 391 327 343
Vessel operating expenses((1)) 25,316 25,735 22,387
Depreciation and amortization 24,143 26,227 24,757
General and administrative((1)) 5,469 5,258 5,260
Write down of vessels((2)) - 29,367 -
-------------------------------------------------------------------------------
55,319 86,914 52,747
-------------------------------------------------------------------------------
Income from vessel operations 41,788 11,322 46,593
-------------------------------------------------------------------------------
OTHER ITEMS
Equity income((3)) 26,424 29,634 17,048
Interest expense (13,248) (13,265) (12,798)
Interest income 515 771 932
Realized and unrealized (loss) gain on
derivative instruments((4)) (8,285) 14,373 (15,903)
Foreign exchange gain (loss)((5)) 8,211 (6,255) (9,668)
Other (expense) income - net (374) 540 475
-------------------------------------------------------------------------------
Net income 55,031 37,120 26,679
-------------------------------------------------------------------------------
Net income attributable to:
Non-controlling interest 586 8,895 1,948
Partners 54,445 28,225 24,731
-------------------------------------------------------------------------------
Limited partners' units outstanding:
Weighted-average number of common units
outstanding
- basic 69,683,763 69,683,763 64,857,900
- diluted 69,686,503 69,683,763 64,857,900
Total number of units outstanding at end
of period 69,683,763 69,683,763 64,857,900
-------------------------------------------------------------------------------
(1) In order to more closely align the Partnership's presentation to many of
its peers, the cost of ship management services of $1.9 million for the
three months ended March 31, 2013 have been presented as vessel
operating expenses. Prior to 2013, the Partnership included these
amounts in general and administrative expenses. All such costs incurred
in comparative periods have been reclassified from general and
administrative expenses to vessel operating expenses to conform to the
presentation adopted in the current period. The amounts reclassified
were $2.0 million and $1.9 million for the three months ended December
31, 2012 and March 31, 2012, respectively.
(2) The carrying values of three of the Partnership's conventional Suezmax
tankers (the Tenerife Spirit, Algeciras Spirit and Huelva Spirit) were
written down during the three months 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.
(3) Equity income includes unrealized gains on derivative instruments as
detailed in the table below:
Three Months Ended
---------------------------------
March 31, December 31, March 31,
2013 2012 2012
---------------------------------
Equity income 26,424 29,634 17,048
Proportionate share of unrealized gains on
derivative instruments 4,599 9,599 5,061
---------------------------------
Equity income excluding unrealized gains on
derivative instruments 21,825 20,035 11,987
---------------------------------
Equity income also includes the Partnership's share of Exmar LPG BVBA which is
based on preliminary purchase price adjustments.
(4) 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
---------------------------------
March 31, December 31, March 31,
2013 2012 2012
---------------------------------
Realized (losses) gains relating to:
Interest rate swaps (9,526) (9,614) (9,079)
Toledo Spirit time-charter derivative
contract - 945 (32)
---------------------------------
(9,526) (8,669) (9,111)
---------------------------------
Unrealized (losses) gains relating to:
Interest rate swaps (1,259) 21,442 (7,092)
Toledo Spirit time-charter derivative
contract 2,500 1,600 300
---------------------------------
1,241 23,042 (6,792)
---------------------------------
Total realized and unrealized (losses) gains
on derivative instruments (8,285) 14,373 (15,903)
---------------------------------
(5) For accounting purposes, the Partnership is required to revalue all
foreign currency-denominated monetary assets and liabilities based on
the prevailing exchange rate at the end of each reporting period. This
revaluation does not affect the Partnership's cash flows or the
calculation of distributable cash flow, but results in the recognition
of unrealized foreign currency translation gains or losses in the
consolidated statements of income.
Foreign exchange (loss) gain includes realized gains relating to the
amounts the Partnership received to settle the Partnership's non-
designated cross currency swap that was entered into as an economic
hedge in relation to the Partnership's Norwegian Kroner (NOK)-
denominated unsecured bonds. The Partnership issued NOK 700 million of
unsecured bonds in May 2012 that mature in 2017. Foreign exchange (loss)
gain also includes unrealized gains (losses) relating to the change in
fair value of such derivative instruments, partially offset by
unrealized (losses) gains on the revaluation of the NOK bonds as
detailed in the table below:
Three Months Ended
---------------------------------------
December
March 31, 31, March 31,
2013 2012 2012
---------------------------------------
Realized gains on cross-currency swaps 58 102 -
Unrealized (losses) gains on cross-
currency swaps (6,191) 4,516 -
Unrealized gains (losses) on
revaluation of NOK bonds 5,923 (3,523) -
-------------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. Dollars)
-------------------------------------------------------------------------------
As at As at
March 31, December 31,
2013 2012
(unaudited) (unaudited)
----------------------------
ASSETS
Cash and cash equivalents 90,982 113,577
Restricted cash - current 34,166 34,160
Other current assets 21,469 19,244
Advances to affiliates 3,273 13,864
Restricted cash - long-term 494,353 494,429
Vessels and equipment 1,901,373 1,911,016
Advances on newbuilding contracts 38,829 38,624
Net investments in direct financing leases 401,795 403,386
Derivative assets 144,252 162,559
Investments in and advances to equity accounted
joint ventures((1)) 589,507 409,735
Other assets 39,844 39,237
Intangible assets 106,524 109,984
Goodwill 35,631 35,631
-------------------------------------------------------------------------------
Total Assets 3,901,998 3,785,446
-------------------------------------------------------------------------------
LIABILITIES AND EQUITY
Accounts payable, accrued liabilities and unearned
revenue 51,692 59,729
Current portion of long-term debt and capital
leases 249,357 156,761
Advances from affiliates 16,551 12,083
Long-term debt and capital leases 1,933,467 1,894,166
Derivative liabilities 282,938 296,295
Other long-term liabilities 111,271 112,138
Equity
Non-controlling interest((2)) 41,736 41,294
Partners' equity 1,214,986 1,212,980
-------------------------------------------------------------------------------
Total Liabilities and Total Equity 3,901,998 3,785,446
-------------------------------------------------------------------------------
(1) Investments in and advances to equity accounted joint ventures includes
the Partnership's investment in Exmar LPG BVBA which is based on
preliminary purchase price adjustments.
(2) Non-controlling interest includes a 30 percent equity interest in the
RasGas II project (which owns three LNG carriers), a 31 percent equity
interest in the Tangguh Project (which owns two LNG carriers), a 1
percent equity interest in the two 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 that are chartered out to I.M. Skaugen ASA, which in each case
represents the ownership interest not owned by the Partnership.
-------------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. Dollars)
-------------------------------------------------------------------------------
Three Months Ended March
31,
---------------------------
2013 2012
(unaudited) (unaudited)
---------------------------
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
-------------------------------------------------------------------------------
Net operating cash flow 36,561 48,299
-------------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt 178,797 209,128
Scheduled repayments of long-term debt (18,785) (18,439)
Prepayments of long-term debt (10,000) -
Scheduled repayments of capital lease obligations
and other long-term liabilities (2,592) (2,510)
Advances to joint venture partners and equity
accounted joint ventures (16,785) (3,600)
Increase in restricted cash (424) (30,215)
Cash distributions paid (52,972) (44,331)
Other (144) -
-------------------------------------------------------------------------------
Net financing cash flow 77,095 110,033
-------------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of equity accounted investments (136,841) (170,067)
Receipts from direct financing leases 1,591 1,481
Expenditures for vessels and equipment (1,001) (838)
Other - 1,369
-------------------------------------------------------------------------------
Net investing cash flow (136,251) (168,055)
-------------------------------------------------------------------------------
Decrease in cash and cash equivalents (22,595) (9,723)
Cash and cash equivalents, beginning of the period 113,577 93,627
-------------------------------------------------------------------------------
Cash and cash equivalents, end of the period 90,982 83,904
-------------------------------------------------------------------------------
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
March 31, 2013 March 31, 2012
(unaudited) (unaudited)
------------------------------
Net income - GAAP basis 55,031 26,679
Less:
Net income attributable to non-controlling
interest (586) (1,948)
-------------------------------------------------------------------------------
Net income attributable to the partners 54,445 24,731
(Subtract) add specific items affecting net
income:
Unrealized foreign exchange (gains)
losses((1)) (8,048) 9,668
Unrealized (gains) losses from derivative
instruments((2)) (1,241) 6,792
Unrealized gains from derivative instruments
and other items from equity accounted
investees((3)) (4,599) (4,811)
Non-controlling interests' share of items
above((4)) (1,506) (777)
-------------------------------------------------------------------------------
Total adjustments (15,394) 10,872
-------------------------------------------------------------------------------
Adjusted net income attributable to the partners 39,051 35,603
-------------------------------------------------------------------------------
(1) Unrealized foreign 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 unrealized loss on the cross-currency swap
economically hedging the Partnership's NOK bond and exclude the realized
gains relating to the cross currency swap for the NOK bonds.
(2) Reflects the unrealized (gains) losses due to changes in the mark-to-
market value of interest rate derivative instruments that are not
designated as hedges for accounting purposes.
(3) Reflects the unrealized gains due to changes in the mark-to-market value
of derivative instruments that are not designated as hedges for
accounting purposes within the Partnership's equity-accounted
investments and $0.3 million of start-up related costs during the three
months ended March 31, 2012 relating to the acquisition of the six MALT
LNG Carriers.
(4) Items affecting net income include items from the Partnership's wholly-
owned subsidiaries, its consolidated non-wholly-owned subsidiaries and
its proportionate share of items from equity accounted for investments.
The specific items affecting net income are analyzed to determine
whether any of the amounts originated from a consolidated non-wholly-
owned subsidiary. Each amount that originates from a consolidated non-
wholly-owned subsidiary is multiplied by the non-controlling interests'
percentage share in this subsidiary to arrive at the non-controlling
interests' share of the amount. The amount identified as "non-
controlling interests' share of items listed above" in the table above
is the cumulative amount of the non-controlling interests' proportionate
share of items listed in the table.
TEEKAY LNG PARTNERS L.P.
APPENDIX B - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
DISTRIBUTABLE CASH FLOW (DCF)
(in thousands of U.S. Dollars)
Description of Non-GAAP Financial Measure - Distributable Cash Flow (DCF)
Distributable cash flow represents net income adjusted for depreciation and
amortization expense, non-cash items, estimated maintenance capital
expenditures, unrealized gains and losses from derivatives, deferred income
taxes and foreign exchange related items. Maintenance capital expenditures
represent those capital expenditures required to maintain over the long-term the
operating capacity of, or the revenue generated by, the Partnership's capital
assets. Distributable cash flow is a quantitative standard used in the publicly-
traded partnership investment community to assist in evaluating a partnership's
ability to make quarterly cash distributions. Distributable cash flow is not
required by GAAP and should not be considered as an alternative to net income or
any other indicator of the Partnership's performance required by GAAP. The table
below reconciles distributable cash flow to net income.
+----------------------------------------+------------------+------------------+
| |Three Months Ended|Three Months Ended|
| | March 31, 2013| March 31, 2012|
| | (unaudited)| (unaudited)|
+----------------------------------------+------------------+------------------+
| | | |
| | | |
|Net income: | 55,031| 26,679|
| | | |
|Add: | | |
| | | |
| Depreciation and amortization | 24,143| 24,757|
| | | |
| Partnership's share of equity | | |
| accounted joint ventures' DCF before | | |
| estimated maintenance capital | | |
| expenditures | 31,343| 16,828|
| | | |
|Less: | | |
| | | |
| Estimated maintenance capital | | |
| expenditures | (16,399)| (12,716)|
| | | |
| Equity income | (26,424)| (17,048)|
| | | |
| Unrealized foreign exchange (gain) | | |
| loss | (8,048)| 9,668|
| | | |
| Unrealized (gain) loss on derivatives | | |
| and other non-cash items | (2,141)| 7,050|
| | | |
| | | |
+----------------------------------------+------------------+------------------+
|Distributable Cash Flow before Non- | | |
|controlling interest | 57,505| 55,218|
| | | |
|Non-controlling interests' share of DCF | | |
|before estimated maintenance capital | | |
|expenditures | (3,840)| (4,450)|
+----------------------------------------+------------------+------------------+
|Distributable Cash Flow | 53,665| 50,768|
+----------------------------------------+------------------+------------------+
TEEKAY LNG PARTNERS L.P.
APPENDIX C - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
NET VOYAGE REVENUES
(in thousands of U.S. Dollars)
Description of Non-GAAP Financial Measure - Net Voyage Revenues
Net voyage revenues represents voyage revenues less voyage expenses, which
comprise all expenses relating to certain voyages, including bunker fuel
expenses, port fees, canal tolls and brokerage commissions. Net voyage revenues
is included because certain investors use this data to measure the financial
performance of shipping companies. Net voyage revenues is not required by
accounting principles generally accepted in the United States and should not be
considered as an alternative to voyage revenues or any other indicator of the
Partnership's performance required by accounting principles generally accepted
in the United States.
Three Months Ended March 31, 2013
(unaudited)
Liquefied Conventional
Gas Tanker
Segment Segment Total
----------------------------------------------------------
Voyage revenues 68,030 29,077 97,107
Voyage expenses - 391 391
----------------------------------------------------------
Net voyage revenues 68,030 28,686 96,716
----------------------------------------------------------
Three Months Ended March 31, 2012
(unaudited)
Liquefied Conventional
Gas Tanker
Segment Segment Total
----------------------------------------------------------
Voyage revenues 70,733 28,607 99,340
Voyage expenses 36 307 343
----------------------------------------------------------
Net voyage revenues 70,697 28,300 98,997
----------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
APPENDIX D - SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. Dollars)
Three Months Ended March 31, 2013
(unaudited)
Liquefied Conventional
Gas Tanker
Segment Segment Total
--------------------------------------------------------------------
Net voyage revenues((1)) 68,030 28,686 96,716
Vessel operating expenses 13,993 11,323 25,316
Depreciation and amortization 17,290 6,853 24,143
General and administrative 3,684 1,785 5,469
--------------------------------------------------------------------
Income from vessel operations 33,063 8,725 41,788
--------------------------------------------------------------------
Three Months Ended March 31, 2012
(unaudited)
Liquefied Conventional
Gas Tanker
Segment Segment Total
--------------------------------------------------------------------
Net voyage revenues((1)) 70,697 28,300 98,997
Vessel operating expenses 11,779 10,608 22,387
Depreciation and amortization 17,238 7,519 24,757
General and administrative 3,559 1,701 5,260
--------------------------------------------------------------------
Income from vessel operations 38,121 8,472 46,593
--------------------------------------------------------------------
(1) Net voyage revenues represents voyage revenues less voyage expenses,
which comprise all expenses relating to certain voyages, including
bunker fuel expenses, port fees, canal tolls and brokerage commissions.
Net voyage revenues is a non-GAAP financial measure used by certain
investors to measure the financial performance of shipping companies.
Please see Appendix C for a reconciliation of this non-GAAP measure as
used in this release to the most directly comparable GAAP financial
measure.
TEEKAY LNG PARTNERS L.P.
APPENDIX E - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CASH FLOW FROM VESSEL OPERATIONS
FROM CONSOLIDATED VESSELS
(in thousands of U.S. Dollars)
Description of Non-GAAP Financial Measure - Cash Flow from Vessel Operations
from Consolidated Vessels
Cash flow from vessel operations from consolidated vessels represents income
from vessel operations before (a) depreciation and amortization expense, (b)
amortization of in-process revenue contracts included in voyage revenues, and
includes (c) adjustments for direct financing leases and two Suezmax tankers to
a cash basis. The Partnership's only direct financing leases for the periods
indicated relate to the Partnership's 69% interest in two LNG carriers, the
Tangguh Sago and Tangguh Hiri. The Partnership's cash flow from vessel
operations from consolidated vessels does not include the Partnership's cash
flow from vessel operations from its equity-accounted joint ventures. Cash flow
from vessel operations is included because certain investors use cash flow from
vessel operations to measure a company's financial performance, and to highlight
this measure for the Partnership's consolidated vessels. Cash flow from vessel
operations from consolidated vessels is not required by accounting principles
generally accepted in the United States and should not be considered as an
alternative to net income or any other indicator of the Partnership's
performance required by accounting principles generally accepted in the United
States.
Three Months Ended March
31, 2013
(unaudited)
Liquefied Conventional
Gas Tanker
Segment Segment Total
-------------------------------------------------------------------------------
Income from vessel operations (See Appendix D) 33,063 8,725 41,788
Depreciation and amortization 17,290 6,853 24,143
Amortization of in-process revenue contracts
included in voyage revenues - (278) (278)
Tangguh LNG revenue accounted for as direct
financing leases (11,455) - (11,455)
Tangguh LNG cash flow from time-charter
contracts 13,039 - 13,039
Cash flow adjustment for two Suezmax
tankers((1)) - (1,667) (1,667)
-------------------------------------------------------------------------------
Cash flow from vessel operations from
consolidated vessels 51,937 13,633 65,570
-------------------------------------------------------------------------------
Three Months Ended March
31, 2012
(unaudited)
Liquefied Conventional
Gas Tanker
Segment Segment Total
-------------------------------------------------------------------------------
Income from vessel operations (See Appendix D) 38,121 8,472 46,593
Depreciation and amortization 17,238 7,519 24,757
Amortization of in-process revenue contracts
included in voyage revenues - (124) (124)
Tangguh LNG revenue accounted for as direct
financing leases (11,578) - (11,578)
Tangguh LNG cash flow from time-charter
contracts 13,051 - 13,051
Realized loss on Toledo Spirit derivative
contract - (32) (32)
-------------------------------------------------------------------------------
Cash flow from vessel operations from
consolidated vessels 56,832 15,835 72,667
-------------------------------------------------------------------------------
(1) The Partnership's charter contracts for two of its Suezmax tankers, the
Bermuda Spirit and Hamilton Spirit, were amended in 2012 which had the
effect of reducing the daily charter rates by $12,000 per day for a
duration of 24 months commencing October 1, 2012. The cash impact of the
change in hire rates is not fully reflected in the Partnership's
statements of income as the change in the lease payments are being
recognized straight-line over the term of the lease.
TEEKAY LNG PARTNERS L.P.
APPENDIX F - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CASH FLOW FROM VESSEL OPERATIONS FROM EQUITY ACCOUNTED VESSELS
(in thousands of U.S. Dollars)
Description of Non-GAAP Financial Measure - Cash Flow from Vessel Operations
from Equity Accounted Vessels
Cash flow from vessel operations from equity accounted vessels represents income
from vessel operations before (a) depreciation and amortization expense, (b)
amortization of in-process revenue contracts and includes (c) adjustments for
direct financing leases to a cash basis. Cash flow from vessel operations from
equity accounted vessels is included because certain investors use cash flow
from vessel operations to measure a company's financial performance, and to
highlight this measure for the Partnership's equity-accounted joint ventures.
Cash flow from vessel operations from equity accounted vessels is not required
by accounting principles generally accepted in the United States and should not
be considered as an alternative to equity income or any other indicator of the
Partnership's performance required by accounting principles generally accepted
in the United States.
Three Months Ended Three Months Ended
March 31, 2013 March 31, 2012
(unaudited) (unaudited)
At Partnership's At Partnership's
100% Portion((1)) 100% Portion((1))
-------------------------------------------------------------------------------
Voyage revenues 127,152 57,962 78,692 32,900
Vessel and other operating
expenses 32,684 15,237 18,114 7,785
Depreciation and amortization 18,418 9,396 6,657 3,404
-------------------------------------------------------------------------------
Income from vessel operations of
equity accounted vessels 76,050 33,329 53,921 21,711
-------------------------------------------------------------------------------
Interest expense (15,517) (6,885) (21,825) (8,382)
Realized and unrealized (loss)
gain on derivative instruments (1,094) (360) 9,522 3,028
Other income - net 402 340 919 691
-------------------------------------------------------------------------------
Other items (16,209) (6,905) (11,384) (4,663)
-------------------------------------------------------------------------------
Net income / equity income of
equity accounted vessels 59,841 26,424 42,537 17,048
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Income from vessel operations 76,050 33,329 53,921 21,711
Depreciation and amortization 18,418 9,396 6,657 3,404
Revenue accounted for as direct
financing leases (49,050) (17,946) (50,240) (18,363)
Cash flow from time-charter
contracts 55,926 20,441 56,938 20,810
Amortization of in-process
revenue contracts and other (6,200) (3,221) (2,650) (1,376)
-------------------------------------------------------------------------------
Cash flow from vessel operations
from equity accounted vessels 95,144 41,999 64,626 26,186
-------------------------------------------------------------------------------
(1) The Partnership's equity accounted investments for the three months
ended March 31, 2013 and 2012 include the Partnership's 40 percent
interest in Teekay Nakilat (III) Corporation, which owns four LNG
carriers; the Partnership's 50 percent interest in the Excalibur and
Excelsior joint ventures, which owns one LNG carrier and one
regasification unit, respectively; the Partnership's 33 percent interest
in four LNG carriers servicing the Angola LNG Project; and the
Partnership's 52 percent interest in MALT LNG Holdings ApS, the joint
venture between the Partnership and Maurbeni Corporation, which owns six
LNG carriers. The Partnership's equity accounted investments for the
three months ended March 31, 2013 also includes the Partnership's
acquisition of a 50 percent interest in Exmar LPG BVBA, the joint
venture between the Partnership and Exmar NV, completed in February
2013, which owns and charters-in 25 vessels in the LPG carrier segment,
including eight newbuildings.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements (as defined in Section 21E of
the Securities Exchange Act of 1934, as amended) which reflect management's
current views with respect to certain future events and performance, including
statements regarding: future growth opportunities, including the Partnership's
ability to successfully bid for new LNG shipping and regasification projects;
the Partnership's ability to secure long-term contract employment for the two
LNG carrier newbuilding vessels; expected delivery dates for the Partnership's
newbuildings; and LNG and LPG shipping market fundamentals, including the short-
term demand for LNG carrier capacity, future growth in global LNG supply, and
the balance of supply and demand of shipping capacity and shipping charter rates
in these sectors. The following factors are among those that could cause actual
results to differ materially from the forward-looking statements, which involve
risks and uncertainties, and that should be considered in evaluating any such
statement: 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; changes in applicable industry laws and regulations and the timing of
implementation of new laws and regulations; the potential for early terminat
Unternehmensinformation / Kurzprofil:
Datum: 09.05.2013 - 18:03 Uhr
Sprache: Deutsch
News-ID 258378
Anzahl Zeichen: 65635
contact information:
Town:
Hamilton
Kategorie:
Business News
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