Teekay LNG Partners Reports Second Quarter Results
(Thomson Reuters ONE) -
HAMILTON, BERMUDA--(Marketwired - August 8, 2013) - Highlights
* Generated distributable cash flow(1)of $55.4 million in the second quarter
of 2013.
* Declared second quarter 2013 cash distribution of $0.675 per unit.
* In June 2013, secured five-year time-charter contracts with Cheniere for the
two LNG carrier newbuildings ordered in December 2012.
* In July 2013, exercised options with DSME for two additional MEGI LNG
carrier newbuildings and secured five additional newbuilding options.
* In August 2013, agreed to acquire and bareboat charter-back up to two
newbuilding LNG carriers, with Awilco LNG ASA.
* Total liquidity of $300 million as at June 30, 2013, giving pro forma effect
to proceeds from the $40 million common unit private placement completed on
July 30, 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 June 30, 2013. During the second quarter of 2013, the Partnership
generated distributable cash flow(1) of $55.4 million, compared to $56.8 million
in the same quarter of the previous year. The decrease in distributable cash
flow was primarily the result of a higher number of off - hire days in the
second quarter of 2013, compared to the same period in 2012, due to scheduled
dry dockings, and lower charter rates on two of the Partnership's conventional
tankers as a result of renegotiated rates effective October 2012 for a period of
two years. The decreases were partially offset by increased distributable cash
flow as a result of the Partner ship's acquisition of a 50 percent interest in
Exmar LPG BVBA, a liquefied petroleum gas (LPG) carrier joint venture with
Exmar, in February 2013 and higher rates on charter contracts entered into
during 2012 for certain of the MALT LNG Carriers.
On July 12, 2013, the Partnership declared a cash distribution of $0.675 per
unit for the quarter ended June 30, 2013. The cash distribution is payable on
August 9, 2013 to all unitholders of record on July 23, 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
Secured Fixed-Rate Employment for the Two LNG Carrier Newbuildings Ordered in
December 2012
In June 2013, Teekay LNG was awarded five-year time-charter contracts with
Cheniere Marketing LLC (Cheniere) for the two 173,400 cubic meter (cbm)
liquefied natural gas (LNG) carrier newbuildings the Partnership ordered in
December 2012. The newbuilding LNG carriers are currently under construction by
Daewoo Shipbuilding & Marine Engineering Co., Ltd., (DSME) of South Korea and
are scheduled to deliver in the first half of 2016. Upon delivery, the vessels
will commence their five-year charters with Cheniere, which will be exporting
LNG from their Sabine Pass LNG export facility in Louisiana . These newbuilding
vessels will be equipped with the M-type, Electronically Controlled, Gas
Injection (MEGI) twin engines, which are expected to be significantly more fuel-
efficient and have lower emission levels than other engines currently being
utilized in LNG shipping.
Exercised Options for Additional Newbuilding LNG/LPG Carriers
In July 2013, Teekay LNG exercised a portion of its existing options with DSME
for two additional 173,400 cbm LNG carrier newbuildings, which will also be
constructed with the MEGI twin engines. The Partnership intends to secure long-
term contract employment for both vessels prior to their deliveries in 2016. In
connection with the exercise of these two newbuilding options, the Partnership
secured additional options with DSME for up to five additional LNG carrier
newbuildings.
In addition, Exmar LPG BVBA, the Partnership's 50/50 LPG joint venture with
Belgium-based Exmar NV, exercised its options to order two additional Midsize
Gas Carrier (MGC) newbuildings, which will be constructed by Hanjin Heavy
Industries and Construction Co., Ltd. (Hanjin) and scheduled for delivery in
2017.
Acquisition and Bareboat Charter Back of up to Two LNG Carrier Newbuildings
In August 2013, Teekay LNG agreed to acquire a 155,900 cbm LNG carrier
newbuilding from Norway -based Awilco LNG ASA (Awilco), which is currently under
construction by DSME in South Korea. The vessel is expected to deliver in
September 2013, at which time Awilco will sell the vessel to Teekay LNG and
bareboat charter the vessel back on a five -year fixed-rate charter contract
(plus a one-year extension option) with a fixed-price purchase obligation at the
end of the initial term (and option period). The net vessel purchase price of
$155 million reflects a $50 million prepayment by Awilco for future charter hire
installments. As part of the transaction, Teekay LNG may also have the
opportunity to acquire and bareboat charter back a second 155,900 cbm LNG
carrier newbuilding from Awilco, currently under construction by DSME, under
similar terms. The second LNG carrier newbuilding is expected to deliver in
late-2013 or early-2014.
"Since reporting first quarter results in May, the Partnership's business
development activities have resulted in several positive outcomes," commented
Peter Evensen, Chief Executive Officer of Teekay GP LLC. "This includes securing
new time-charter contracts and newbuilding vessel orders, and acquiring on-the-
water vessels with existing contracts, all of which are expected to result in
near and long-term distributable cash flow growth. To begin with, in June, we
were awarded five-year time-charters with Cheniere for the two LNG carrier
newbuildings we ordered in December 2012. These vessels' attractive 173,400
cubic meter cargo size and fuel-efficient MEGI engines were key factors in being
awarded these important new contracts. These vessels will be among the first to
export LNG from the Sabine Pass facility in the U.S. Gulf Coast."
Mr. Evensen continued, "Based on our successful chartering efforts for the first
two MEGI newbuildings, in late -July, the Partnership exercised a portion of its
options with DSME to order an additional two 173,400 cubic meter MEGI LNG
carrier newbuildings. As with the two carriers we ordered in December, we
believe the 2016 delivery dates for these vessels will be well-timed for the
next major wave of LNG carrier demand which is expected to follow the large
number of LNG export projects that are scheduled to come on-stream starting in
late-2015. While we expect to secure long-term financing for these vessels upon
securing time-charter employment, we will fund the initial shipyard installments
with a portion of the proceeds from the Partnership's recent $40 million common
unit private placement transaction. As part of this vessel order, the
Partnership also secured five additional options from DSME for future LNG
carrier orders."
"Our position in the attractive liquefied petroleum gas sector also continues to
grow," Mr. Evensen added. "Last week, our LPG joint venture with Exmar exercised
in-the-money options with Hanjin to construct two additional medium-size gas
carrier, or MGC, newbuildings, bringing the joint venture's MGC newbuilding
program to a total of 10 vessels."
"Looking more near-term," Mr. Evensen continued, "last week, the Partnership
announced an agreement to acquire up to two 155,900 cubic meter LNG carrier
newbuildings from Awilco LNG, with a five-year fixed-rate bareboat charter back
to Awilco at a net price of $155 million per vessel. Assuming the option for the
second vessel is exercised, these two vessels, which are scheduled to deliver
from DSME in September and November 2013, are expected to provide the
Partnership with near-term cash flow accretion and bridge the gap between now
and when our other newbuilding vessels begin delivering in 2016."
Mr. Evensen added, "In addition to our recent announcements, the Partnership is
currently involved in several LNG shipping and floating regasification project
tenders with start-up dates in the late-2015 through 2017 that would generate
further accretive distributable cash flows for the Partnership."
Financial Summary
The Partnership reported adjusted net income attributable to the partners(2) (as
detailed in Appendix A to this release) of $41.5 million for the quarter ended
June 30, 2013, compared to $40.5 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 $28.1 million and
decreasing net income by $2.8 million for the three months ended June 30, 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 $69.7 million and $37.7 million for the three months ended June 30, 2013 and
2012, respectively.
For the six months ended June 30, 2013, the Partnership reported adjusted net
income attributable to the partners (2) (as detailed in Appendix A to this
release) of $80.6 million, compared to $76.1 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 $43.5
million and decreasing net income by $13.7 million for the six months ended June
30, 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 $124.1 million and $62.4 million for the six months ended June
30, 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 notes 2, 3 and 4 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 below and
Appendices C to F for further details).
+--------------+--------------------------------+------------------------------+
| | Three Months Ended | Three Months Ended |
| | | |
| | June 30, 2013 | June 30, 2012 |
| | | |
| | (unaudited) | (unaudited) |
+--------------+--------------------------------+------------------------------+
|(in thousands |Liquefied Conventional |Liquefied Conventional |
|of U.S. | Gas Tanker | Gas Tanker |
|Dollars) | Segment Segment Total| Segment Segment Total|
| | | |
|Net voyage | | |
|revenues((i)) | 67,863 27,532 95,395| 67,573 28,662 96,235|
| | | |
|Vessel | | |
|operating | | |
|expenses | 13,683 11,131 24,814| 11,774 10,403 22,177|
| | | |
|Depreciation | | |
|and | | |
|amortization | 18,329 6,827 25,156| 17,309 7,487 24,796|
+--------------+--------------------------------+------------------------------+
|CFVO from | | |
|consolidated | | |
|vessels((ii)) | 52,581 12,892 65,473| 54,259 16,740 70,999|
| | | |
|CFVO from | | |
|equity | | |
|accounted | | |
|vessels((iii))| 47,162 - 47,162| 38,035 - 38,035|
| | | |
|Total | | |
|CFVO((ii)) | 99,743 12,892 112,635| 92,294 16,740 109,034|
+--------------+--------------------------------+------------------------------+
(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 June 30, 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 (Malt LNG Carriers). The Partnership's equity accounted
investments for the three months ended June 30, 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 currently owns and charters-in 26 vessels in the
LPG carrier segment, including ten 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 $52.6 million in the second
quarter of 2013 from $54.3 million in the same quarter of the prior year. The
decrease is primarily due to higher vessel operating expenditures due to the
scheduled dry dockings of the first Tangguh project LNG carrier and the
Catalunya Spirit during the second quarter of 2013 and preparations for the dry
docking of the second Tangguh project LNG carrier scheduled for the fourth
quarter of 2013, partially offset by the scheduled dry docking of the Hispania
Spirit in the second quarter of the prior year.
Cash flow from vessel operations from the Partnership's equity accounted vessels
in the Liquefied Gas segment increased to $47.2 million in the second quarter of
2013 from $38.0 million in the same quarter of the prior year. This increase was
primarily due to the acquisition of a 50 percent interest in the Exmar LPG BVBA
joint venture in February 2013 and higher rates on charter contracts entered
into during 2012 for certain of the MALT LNG Carriers.
Conventional Tanker Segment
Cash flow from vessel operations from the Partnership's Conventional Tanker
segment decreased to $12.9 million in the second quarter of 2013 from $16.7
million in the same quarter of the prior year, primarily as a result of the
European Spirit being off-hire for 25 days during the second quarter of 2013 due
to a scheduled dry docking and amendments to two of the Partnership's Suezmax
tanker charter contracts which temporarily reduced the daily hire rate for each
of these vessels by $12,000 between October 2012 and 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 amount
equal to the original daily charter rate.
Teekay LNG's Fleet
The following table summarizes the Partnership's fleet as of August 1, 2013:
+---------------------+--------------------------------------------------------+
| | Number of Vessels |
| +--------------------------------------------------+-----+
| | In-Chartered | |
| | Owned Vessels Vessels Newbuildings|Total|
| +--------------------------------------------------+-----+
|LNG Carrier Fleet | 27((i)) - 5| 32|
| | | |
|LPG/Multigas Carrier | | |
|Fleet | 16((ii)) 5((iii)) 10((iii))| 31|
| | | |
|Conventional Tanker | | |
|Fleet | 11 - -| 11|
+---------------------+--------------------------------------------------+-----+
|Total | 54 5 15| 74|
+---------------------+--------------------------------------------------+-----+
(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's interest in these vessels is 50 percent.
Liquidity and Continuous Offering Program Update
In May 2013, the Partnership implemented a continuous offering program (COP)
under which the Partnership may issue new common units, representing limited
partner interests, at market prices up to maximum aggregate amount of $100
million. Through June 30, 2013, the Partnership sold an aggregate of 124,071
common units under the COP, generating proceeds of approximately $4.9 million
(including the Teekay LNG general partner's 2 percent proportionate capital
contribution and net of offering costs). The net proceeds from the issuance of
these common units were used for general partnership purposes.
As of June 30, 2013, the Partnership had total liquidity of $262.3 million
(comprised of $97.6 million in cash and cash equivalents and $164.7 million in
undrawn credit facilities). Giving effect for the $40 million common unit
private placement completed in July 2013, the Partnership's liquidity at June
30, 2013 would have been approximately $300 million.
Conference Call
The Partnership plans to host a conference call on Friday, August 9, 2013 at
11:00 a.m. (ET) to discuss the results for the second 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 9295387.
* 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 Second 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, August
16, 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 9295387.
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 through its interests in
32 LNG carriers (including one LNG regasification unit and five newbuildings),
31 LPG/Multigas carriers (including five chartered-in LPG carriers and 10
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 Six Months Ended
----------------------------------------- ----------------------------
June March June June June
30, 2013 31, 2013 30, 2012 30, 2013 30, 2012
------------- ------------- ------------- ------------- --------------
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
------------- ------------- ------------- ------------- --------------
--------------------------------------------------------------------------------------------
VOYAGE REVENUES 96,619 97,107 96,477 193,726 195,817
--------------------------------------------------------------------------------------------
OPERATING EXPENSES
Voyage expenses 1,224 391 242 1,615 585
Vessel operating
expenses((1)) 24,814 25,316 22,177 50,130 44,564
Depreciation and
amortization 25,156 24,143 24,796 49,299 49,553
General and
administrative((1)) 4,744 5,469 4,433 10,213 9,693
--------------------------------------------------------------------------------------------
Total operating
expenses 55,938 55,319 51,648 111,257 104,395
--------------------------------------------------------------------------------------------
Income from vessel
operations 40,681 41,788 44,829 82,469 91,422
--------------------------------------------------------------------------------------------
OTHER ITEMS
Equity income((2)) 39,425 26,424 11,086 65,849 28,134
Interest expense (13,132 ) (13,248 ) (13,734 ) (26,380 ) (26,532 )
Interest income 782 515 949 1,297 1,881
Realized and
unrealized gain
(loss) on derivative
instruments((3)) 10,666 (8,285 ) (18,145 ) 2,381 (34,048 )
Foreign exchange
(loss) gain((4)) (2,787 ) 8,211 13,927 5,424 4,259
Other income - net 407 469 480 876 694
--------------------------------------------------------------------------------------------
35,361 14,086 (5,437 ) 49,447 (25,612 )
--------------------------------------------------------------------------------------------
Net income before
tax (expense)
recovery 76,042 55,874 39,392 131,916 65,810
Income tax (expense)
recovery (800 ) (843 ) (132 ) (1,643 ) 129
--------------------------------------------------------------------------------------------
Net income 75,242 55,031 39,260 130,273 65,939
--------------------------------------------------------------------------------------------
Non-controlling
interest in net
income 5,581 586 1,572 6,167 3,520
General Partner's
interest in net
income 6,278 5,965 5,293 12,243 10,325
Limited partners'
interest in net
income 63,383 48,480 32,395 111,863 52,094
Weighted-average
number of common
units outstanding:
· Basic 69,713,500 69,683,763 64,857,900 69,698,714 64,857,900
· Diluted 69,732,097 69,686,503 64,857,900 69,709,382 64,857,900
Total number of
units outstanding at
end of period 69,813,899 69,683,763 64,857,900 69,813,899 64,857,900
--------------------------------------------------------------------------------------------
(1) To more closely align the Partnership's Statement of Income presentation to
many of its peers, the cost of ship management services of $1.9 million and $3.8
million for the three and six months ended June 30, 2013, respectively, and $1.9
million for the three months ended March 31, 2013, have been included 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 $3.9 million for the
three and six months ended June 30, 2012, respectively.
(2)Equity income includes unrealized gains (losses) on derivative instruments as
detailed in the table below:
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2013 2013 2012 2013 2012
------------------------------------------------------
Equity income 39,425 26,424 11,086 65,849 28,134
Proportionate share of
unrealized gains (losses)
on derivative instruments 14,135 4,599 (8,242) 18,734 (3,181)
------------------------------------------------------
Equity income excluding
unrealized gains (losses)
on derivative instruments 25,290 21,825 19,328 47,115 31,315
------------------------------------------------------
Equity income also includes the Partnership's share of its joint venture Exmar
LPG BVBA which is based on preliminary purchase price allocations.
(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 Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2013 2013 2012 2013 2012
--------------------------------------------------------
Realized losses
relating to:
Interest rate swaps (9,496 ) (9,526 ) (9,284 ) (19,022 ) (18,363 )
Toledo Spirit time-
charter derivative
contract (23 ) - (6 ) (23 ) (38 )
--------------------------------------------------------
(9,519 ) (9,526 ) (9,290 ) (19,045 ) (18,401 )
--------------------------------------------------------
Unrealized gains
(losses) relating to:
Interest rate swaps 19,885 (1,259 ) (8,855 ) 18,626 (15,947 )
Toledo Spirit time-
charter derivative
contract 300 2,500 - 2,800 300
--------------------------------------------------------
20,185 1,241 (8,855 ) 21,426 (15,647 )
--------------------------------------------------------
Total realized and
unrealized gains
(losses) on derivative
instruments 10,666 (8,285 ) (18,145 ) 2,381 (34,048 )
--------------------------------------------------------
(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 of unsecured bonds in May 2012 that mature in 2017. 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
on the revaluation of the NOK bonds as detailed in the table below:
Three Months Ended Six Months Ended
June
June 30, March 31, June 30, 30, June 30,
2013 2013 2012 2013 2012
-------------------------------------------------------------
Realized (losses)
gains on cross-
currency swaps (67 ) 58 48 (9 ) 48
Unrealized losses
on cross-currency
swaps (2,731 ) (6,191 ) (10,270 ) (8,922 ) (10,270 )
Unrealized gains
on revaluation of
NOK bonds 4,545 5,923 7,560 10,468 7,560
--------------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. Dollars)
--------------------------------------------------------------------------------
As at June 30, As at March As at December
31, 31,
----------------- ---------------- -----------------
2013 2013 2012
----------------- ---------------- -----------------
(unaudited) (unaudited) (unaudited)
----------------- ---------------- -----------------
ASSETS
Current
Cash and cash equivalents 97,621 90,982 113,577
Restricted cash - current 33,096 34,166 34,160
Accounts receivable 14,404 13,755 13,408
Prepaid expenses 8,141 7,714 5,836
Current portion of 18,306 18,378 17,212
derivative assets
Current portion of net
investments in direct 6,928 6,790 6,656
financing leases
Advances to affiliates 3,421 3,273 13,864
--------------------------------------------------------------------------------
Total current assets 181,917 175,058 204,713
--------------------------------------------------------------------------------
Restricted cash - long- 495,084 494,353 494,429
term
Vessels and equipment
At cost, less accumulated 1,275,120 1,283,135 1,286,957
depreciation
Vessels under capital
leases, at cost, less 612,633 618,238 624,059
accumulated depreciation
Advances on newbuilding 39,097 38,829 38,624
contracts
--------------------------------------------------------------------------------
Total vessels and 1,926,850 1,940,202 1,949,640
equipment
--------------------------------------------------------------------------------
Investment in and advances
to equity accounted joint 627,477 589,507 409,735
ventures((1))
Net investments in direct 393,225 395,005 396,730
financing leases
Advances to joint venture 14,004 14,004 14,004
partner
Other assets 26,573 25,840 25,233
Derivative assets 89,685 125,874 145,347
Intangible assets - net 103,064 106,524 109,984
Goodwill - liquefied gas 35,631 35,631 35,631
segment
--------------------------------------------------------------------------------
Total assets 3,893,510 3,901,998 3,785,446
--------------------------------------------------------------------------------
LIABILITIES AND EQUITY
Current
Accounts payable 3,925 3,482 2,178
Accrued liabilities 41,300 39,809 38,134
Unearned revenue 8,645 8,401 19,417
Current portion of long- 87,079 86,460 86,489
term debt
Current obligations under 160,284 162,897 70,272
capital lease
Current portion of 69,903 49,920 48,046
derivative liabilities
Advances from affiliates 17,739 16,551 12,083
--------------------------------------------------------------------------------
Total current liabilities 388,875 367,520 276,619
--------------------------------------------------------------------------------
Long-term debt 1,477,856 1,461,207 1,326,864
Long-term obligations 472,440 472,260 567,302
under capital lease
Long-term unearned revenue 37,244 37,627 38,570
Other long-term 73,455 73,644 73,568
liabilities
Derivative liabilities 159,320 233,018 248,249
--------------------------------------------------------------------------------
Total liabilities 2,609,190 2,645,276 2,531,172
--------------------------------------------------------------------------------
Equity
Non-controlling 47,317 41,736 41,294
interest((2))
Partners' equity 1,237,003 1,214,986 1,212,980
--------------------------------------------------------------------------------
Total equity 1,284,320 1,256,722 1,254,274
--------------------------------------------------------------------------------
Total liabilities and 3,893,510 3,901,998 3,785,446
total equity
--------------------------------------------------------------------------------
(1) Investments in and advances to equity accounted joint ventures includes the
Partnership's investment in its joint venture 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 LNG carriers (Arctic Spirit and Polar Spirit), 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)
--------------------------------------------------------------------------------
Six Six
Months Months
Ended Ended
June 30, June 30,
2013 2012
$ $
------------------------------------------
Cash and cash equivalents provided by
(used for)
OPERATING ACTIVITIES
Net income 130,273 65,939
Non-cash items:
Unrealized (gain) loss on derivative )
instruments (21,426 15,647
Depreciation and amortization 49,299 49,553
Unrealized foreign currency exchange ) )
gain (5,993 (4,670
Equity income (65,849 ) (28,134 )
Amortization of deferred debt
issuance costs and other 1,494 18
Change in operating assets and )
liabilities 5,748 (6,609
Expenditures for dry docking (17,796 ) (2,972 )
--------------------------------------------------------------------------------
Net operating cash flow 75,750 88,772
--------------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from issuance of long-term
debt 219,748 395,352
Scheduled repayments of long-term debt (42,999 ) (42,200 )
Prepayments of long-term debt (10,000 ) (119,274 )
Debt issuance costs - (1,808 )
Scheduled repayments of capital lease
obligations and other long-term ) )
liabilities (5,205 (5,040
Proceeds from units issued out of
continuous offering program, net of
offering costs 4,924 -
Advances to joint venture partners and ) )
equity accounted joint ventures (16,785 (3,600
Increase in restricted cash (952 ) (30,511 )
Cash distributions paid (105,943 ) (93,636 )
Other (144 ) (50 )
--------------------------------------------------------------------------------
Net financing cash flow 42,644 99,233
--------------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of equity accounted ) )
investments (135,790 (170,067
Receipts from direct financing leases 3,233 2,992
Expenditures for vessels and equipment (1,793 ) (1,010 )
Other - 1,369
--------------------------------------------------------------------------------
Net investing cash flow (134,350 ) (166,716 )
--------------------------------------------------------------------------------
(Decrease) increase in cash and cash )
equivalents (15,956 21,289
Cash and cash equivalents, beginning
of the period 113,577 93,627
--------------------------------------------------------------------------------
Cash and cash equivalents, end of the
period 97,621 114,916
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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 Six Months Ended
--------------------------- -----------------------------
June 30, June 30, June 30, June 30,
------------- ------------- ------------- ---------------
2013 2012 2013 2012
------------- ------------- ------------- ---------------
(unaudited) (unaudited) (unaudited) (unaudited)
--------------------------------------------------------------------------------
Net income - GAAP basis 75,242 39,260 130,273 65,939
Less:
Net income
attributable to non-
controlling interest (5,581) (1,572) (6,167) (3,520)
--------------------------------------------------------------------------------
Net income attributable
to the partners 69,661 37,688 124,106 62,419
Add (subtract) specific
items affecting net
income:
Unrealized foreign
currency exchange
losses (gains)((1)) 2,960 (13,879) (5,088) (4,211)
Unrealized (gains)
losses from
derivative
instruments((2)) (20,185) 8,855 (21,426) 15,647
Unrealized (gains)
losses from
derivative
instruments and
other items from
equity accounted
investees((3)) (14,135) 8,800 (18,734) 3,989
Non-controlling
interests' share of
items above((4)) 3,219 (935) 1,713 (1,712)
--------------------------------------------------------------------------------
Total adjustments (28,141) 2,841 (43,535) 13,713
--------------------------------------------------------------------------------
Adjusted net income
attributable to the
partners 41,520 40,529 80,571 76,132
--------------------------------------------------------------------------------
(1) 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 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 derivative instruments that are not designated as hedges for
accounting purposes.
(3) Reflects the unrealized (gains) losses 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 $0.6 million and $0.8 million of start-up related costs during the three
and six months ended June 30, 2012, respectively, relating to the
acquisition of the MALT LNG Carriers in February 2012.
(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 |
| +--------------------+-------------------------------+
| | June 30, 2013 | June 30, 2012 |
| +--------------------+-------------------------------+
| | (unaudited) | (unaudited) |
+-------------------------+--------------------+-------------------------------+
| | | |
| | | |
|Net income: | 75,242 | 39,260 |
| | | |
|Add: | | |
| | | |
| Depreciation and | | |
| amortization | 25,156 | 24,673 |
| | | |
| Partnership's share of | | |
| equity accounted joint | | |
| ventures' DCF before | | |
| estimated maintenance | | |
| and capital | | |
| expenditures | 34,816 | 27,389 |
| | | |
| Unrealized foreign | | |
| exchange loss (gain) | 2,960 | (13,879 ) |
| | | |
|Less: | | |
| | | |
| Estimated maintenance | | |
| capital expenditures | (17,985 )| (14,190 ) |
| | | |
| Equity income | (39,425 )| (11,086 ) |
| | | |
| Unrealized (gain) loss | | |
| on derivatives and | | |
| other non-cash items | (21,281 )| 8,757 |
+-------------------------+--------------------+-------------------------------+
|Distributable Cash Flow | | |
|before Non-controlling | | |
|interest | 59,483 | 60,924 |
| | | |
|Non-controlling | | |
|interests' share of DCF | | |
|before estimated | | |
|maintenance capital | | |
|expenditures | (4,083 )| (4,170 ) |
+-------------------------+--------------------+-------------------------------+
|Distributable Cash Flow | 55,400 | 56,754 |
+-------------------------+--------------------+-------------------------------+
--------------------------------------------------------------------------------
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 GAAP
and should not be considered as an alternative to voyage revenues or any other
indicator of the Partnership's performance required by GAAP.
Three Months Ended June
30, 2013
----------------------------------
(unaudited)
----------------------------------
Liquefied Gas Conventional
Segment Tanker Segment Total
--------------------------------------------------------------------------------
Voyage revenues 68,270 28,349 96,619
Voyage expenses 407 817 1,224
--------------------------------------------------------------------------------
Net voyage revenues 67,863 27,532 95,395
--------------------------------------------------------------------------------
Three Months Ended June
30, 2012
---------------------------------
(unaudited)
---------------------------------
Liquefied Gas Conventional
Segment Tanker Segment Total
--------------------------------------------------------------------------------
Voyage revenues 67,603 28,874 96,477
Voyage expenses 30 212 242
--------------------------------------------------------------------------------
Net voyage revenues 67,573 28,662 96,235
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
APPENDIX D - SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. Dollars)
Three Months Ended June 30, 2013
----------------------------------------------------
(unaudited)
Liquefied Gas Conventional Tanker
Segment Segment Total
--------------------------------------------------------------------------------
Net voyage revenues((1)) 67,863 27,532 95,395
Vessel operating expenses 13,683 11,131 24,814
Depreciation and
amortization 18,329 6,827 25,156
General and administrative 3,233 1,511 4,744
--------------------------------------------------------------------------------
Income from vessel
operations 32,618 8,063 40,681
--------------------------------------------------------------------------------
Three Months Ended June 30, 2012
----------------------------------------------------
(unaudited)
Liquefied Gas Conventional Tanker
Segment Segment Total
--------------------------------------------------------------------------------
Net voyage revenues((1)) 67,573 28,662 96,235
Vessel operating expenses 11,774 10,403 22,177
Depreciation and
amortization
Unternehmensinformation / Kurzprofil:
Datum: 08.08.2013 - 16:13 Uhr
Sprache: Deutsch
News-ID 286143
Anzahl Zeichen: 65620
contact information:
Town:
Hamilton
Kategorie:
Business News
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