Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. |
Form 20-F ý Form 40-F ¨ |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1). |
Yes ¨ No ý |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7). |
Yes ¨ No ý |
TEEKAY LNG PARTNERS L.P. | |||
By: | Teekay GP L.L.C., its general partner | ||
Date: August 1, 2019 | By: | /s/ Anne Liversedge | |
Anne Liversedge Secretary |
• | GAAP net income attributable to the partners and preferred unitholders of $16.4 million and GAAP net income per common unit of $0.12. |
• | Adjusted net income(1) attributable to the partners and preferred unitholders of $34.4 million and adjusted net income per common unit of $0.35 (excluding items listed in Appendix A to this release). |
• | Total Adjusted EBITDA(1) of $162.1 million. |
• | Took delivery of the third, 50 percent-owned ARC7 LNG carrier newbuilding, which immediately commenced its 27-year charter contract servicing the Yamal LNG project, and expect the fourth vessel to deliver mid-August 2019. |
• | 2019 results expected to be within earnings and Adjusted EBITDA(1) guidance ranges. |
Three Months Ended | ||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | ||||
(in thousands of U.S. Dollars, except per unit data) | (unaudited) | (unaudited) | (unaudited) | |||
GAAP FINANCIAL COMPARISON | ||||||
Voyage revenues | 153,060 | 149,744 | 122,315 | |||
Income from vessel operations | 74,677 | 69,361 | 10,505 | |||
Equity income | 1,738 | 5,578 | 11,194 | |||
Net income attributable to the partners and preferred unitholders | 16,435 | 21,617 | 2,734 | |||
Limited partners’ interest in net income (loss) per common unit | 0.12 | 0.19 | (0.05 | ) | ||
NON-GAAP FINANCIAL COMPARISON | ||||||
Adjusted net income attributable to the partners and preferred unitholders(1) | 34,435 | 33,365 | 13,535 | |||
Limited partners’ interest in adjusted net income per common unit | 0.35 | 0.34 | 0.09 | |||
Total Adjusted EBITDA(1) | 162,069 | 158,214 | 115,005 | |||
Distributable cash flow (DCF)(1) | 56,330 | 54,214 | 31,116 |
(2) | The Partnership’s Total (Proportionate Consolidated) Adjusted EBITDA guidance range for 2019 has increased by approximately $30 million, to $665-690 million, to include the non-controlling interest portion of Adjusted EBITDA relating to the Tangguh and RasGas2 joint ventures, which is consistent with the calculation method as described in this Earnings Release under Definitions of Non-GAAP Financial Measures. The 2019 Consolidated Adjusted EBITDA and Total Adjusted EBITDA guidance metrics provided by the Partnership have been normalized to exclude any Awilco deferred revenue. |
Three Months Ended | ||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||
(in thousands of U.S. Dollars) | (unaudited) | (unaudited) | ||||||||||||||
Liquefied Natural Gas Segment | Liquefied Petroleum Gas Segment | Conventional Tanker Segment | Total | Liquefied Natural Gas Segment | Liquefied Petroleum Gas Segment | Conventional Tanker Segment | Total | |||||||||
GAAP FINANCIAL COMPARISON | ||||||||||||||||
Voyage revenues | 141,833 | 8,858 | 2,369 | 153,060 | 105,405 | 6,767 | 10,143 | 122,315 | ||||||||
Income (loss) from vessel operations | 73,933 | 311 | 433 | 74,677 | 50,631 | (41,186 | ) | 1,060 | 10,505 | |||||||
Equity income (loss) | 3,377 | (1,639 | ) | — | 1,738 | 12,619 | (1,425 | ) | — | 11,194 | ||||||
NON-GAAP FINANCIAL COMPARISON | ||||||||||||||||
Consolidated Adjusted EBITDA(i) | 111,109 | 2,341 | 602 | 114,052 | 78,299 | (5,943 | ) | 2,235 | 74,591 | |||||||
Adjusted EBITDA from equity-accounted vessels(i) | 40,095 | 7,922 | — | 48,017 | 34,179 | 6,235 | — | 40,414 | ||||||||
Total Adjusted EBITDA(i) | 151,204 | 10,263 | 602 | 162,069 | 112,478 | 292 | 2,235 | 115,005 |
(i) | These are non-GAAP financial measures. Please refer to “Definitions and Non-GAAP Financial Measures” and the Appendices to this release for definitions of these terms and reconciliations of these non-GAAP financial measures as used in this release to the most directly comparable financial measures under GAAP. |
Number of Vessels | |||
Owned and In-Chartered Vessels(i) | Newbuildings | Total | |
LNG Carrier Fleet | 46(ii) | 3(iii) | 49 |
LPG/Multi-gas Carrier Fleet | 29(iv) | — | 29 |
Conventional Tanker Fleet | 1(V) | — | 1 |
Total | 76 | 3 | 79 |
(i) | Includes vessels leased by the Partnership from third parties and accounted for as finance leases. |
(ii) | The Partnership’s ownership interests in these vessels range from 20 percent to 100 percent. |
(iii) | The Partnership’s ownership interest in these newbuildings is 50 percent. |
(iv) | The Partnership’s ownership interests in these vessels range from 50 percent to 99 percent. |
(v) | The Partnership is currently marketing its Handymax product tanker for sale and it has been recorded as "Vessel Held For Sale" in the Partnership's Consolidated Balance Sheets. |
• | By dialing (877) 260-1479 or (647) 490-5367, if outside North America, and quoting conference ID code 5554354. |
• | By accessing the webcast, which will be available on Teekay LNG’s website at www.teekay.com (the archive will remain on the website for a period of one year). |
Three Months Ended | Six Month Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Voyage revenues | 153,060 | 149,744 | 122,315 | 302,804 | 237,621 | |||||
Voyage expenses | (6,023 | ) | (5,775 | ) | (7,951 | ) | (11,798 | ) | (13,752 | ) |
Vessel operating expenses(1) | (27,457 | ) | (26,101 | ) | (33,219 | ) | (53,558 | ) | (61,186 | ) |
Time-charter hire expense | (3,080 | ) | (5,591 | ) | — | (8,671 | ) | — | ||
Depreciation and amortization | (35,338 | ) | (34,126 | ) | (29,794 | ) | (69,464 | ) | (59,061 | ) |
General and administrative expenses(1) | (5,667 | ) | (6,632 | ) | (7,846 | ) | (12,299 | ) | (14,917 | ) |
Write-down of vessels(2) | — | — | (33,000 | ) | — | (51,662 | ) | |||
Restructuring charges(3) | (818 | ) | (2,158 | ) | — | (2,976 | ) | (1,396 | ) | |
Income from vessel operations | 74,677 | 69,361 | 10,505 | 144,038 | 35,647 | |||||
Equity income(4) | 1,738 | 5,578 | 11,194 | 7,316 | 37,918 | |||||
Interest expense | (41,018 | ) | (42,217 | ) | (28,171 | ) | (83,235 | ) | (52,877 | ) |
Interest income | 960 | 1,078 | 902 | 2,038 | 1,816 | |||||
Realized and unrealized (loss) gain on non-designated derivative instruments(5) | (7,826 | ) | (6,617 | ) | 4,302 | (14,443 | ) | 12,303 | ||
Foreign currency exchange (loss) gain(6) | (7,243 | ) | (731 | ) | 8,443 | (7,974 | ) | 7,170 | ||
Other income (expense)(7) | 236 | 251 | 350 | 487 | (52,232 | ) | ||||
Net income (loss) before tax expense | 21,524 | 26,703 | 7,525 | 48,227 | (10,255 | ) | ||||
Income tax expense | (2,472 | ) | (2,578 | ) | (843 | ) | (5,050 | ) | (1,622 | ) |
Net income (loss) | 19,052 | 24,125 | 6,682 | 43,177 | (11,877 | ) | ||||
Non-controlling interest in net income (loss) | 2,617 | 2,508 | 3,948 | 5,125 | (7,717 | ) | ||||
Preferred unitholders' interest in net income (loss) | 6,425 | 6,425 | 6,426 | 12,850 | 12,851 | |||||
General partner's interest in net income (loss) | 200 | 304 | (68 | ) | 504 | (340 | ) | |||
Limited partners’ interest in net income (loss) | 9,810 | 14,888 | (3,624 | ) | 24,698 | (16,671 | ) | |||
Limited partners' interest in net income (loss) per common unit: | ||||||||||
• Basic | 0.12 | 0.19 | (0.05 | ) | 0.31 | (0.21 | ) | |||
• Diluted | 0.12 | 0.19 | (0.05 | ) | 0.31 | (0.21 | ) | |||
Weighted-average number of common units outstanding: | ||||||||||
• Basic | 78,603,636 | 78,598,678 | 79,687,499 | 78,600,342 | 79,667,384 | |||||
• Diluted | 78,685,537 | 78,680,661 | 79,687,499 | 78,682,263 | 79,667,384 | |||||
Total number of common units outstanding at end of period | 78,441,316 | 78,626,403 | 79,687,499 | 78,441,316 | 79,687,499 |
(1) | The comparative figures for vessel operating expenses and general and administrative expenses for the three and six months ended June 30, 2018 have been reclassified to conform to the presentation adopted in the current period relating to the classification of certain related party transactions. The reclassification had the effect of decreasing vessel operating expenses and increasing general and administrative expenses by $0.8 million and $1.3 million, respectively, for the three and six months ended June 30, 2018. There is no impact on income from vessel operations or net income (loss) as a result of this reclassification. |
(2) | In June 2018, the Partnership wrote-down four of its wholly-owned multi-gas carriers (the Napa Spirit, Pan Spirit, Camilla Spirit and Cathinka Spirit) and recorded an impairment charge of $33.0 million for the three and six months ended June 30, 2018 in the Partnership's Consolidated Statements of Income (Loss). In addition, for the six months ended June 30, 2018, the Partnership recorded an aggregate write-down of $5.7 million on the African Spirit and European Spirit conventional tankers and recorded a write-down of $13.0 million relating to the Alexander Spirit conventional tanker. |
(3) | In January 2019 and February 2018, the Toledo Spirit and Teide Spirit, respectively, were sold and as a result of these sales, the Partnership recorded restructuring charges of $0.8 million for the three months ended June 30, 2019, $2.2 million for the three months ended March 31, 2019, and $3.0 million and $1.4 million for the six months ended June 30, 2019 and 2018, respectively, relating to seafarer severance costs. |
(4) | The Partnership’s proportionate share of items within equity income as identified in Appendix A of this release is detailed in the table below. By excluding these items from equity income, the Partnership believes the resulting adjusted equity income is a normalized amount that can be used to better evaluate the financial performance of the Partnership’s equity-accounted investments. Adjusted equity income is a non-GAAP financial measure. |
Three Months Ended | Six Month Ended | ||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||
Equity income | 1,738 | 5,578 | 11,194 | 7,316 | 37,918 | ||||
Proportionate share of unrealized loss (gain) on non-designated interest rate swaps | 5,102 | 4,360 | (2,977 | ) | 9,462 | (11,198 | ) | ||
Proportionate share of ineffective portion of hedge-accounted interest rate swaps | — | — | (1,809 | ) | — | (5,068 | ) | ||
Gain on sale of equity-accounted investment | — | — | — | — | (5,563 | ) | |||
Proportionate share of other items | 1,124 | 345 | (128 | ) | 1,469 | 257 | |||
Equity income adjusted for items in Appendix A | 7,964 | 10,283 | 6,280 | 18,247 | 16,346 |
(5) | The realized (losses) gains on non-designated derivative instruments relate to the amounts the Partnership actually paid or received to settle non-designated derivative instruments and the unrealized (losses) gains on non-designated derivative instruments relate to the change in fair value of such non-designated derivative instruments, as detailed in the table below: |
Three Months Ended | Six Month Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||
Realized (losses) gains relating to: | ||||||||||
Interest rate swap agreements | (2,392 | ) | (2,385 | ) | (4,310 | ) | (4,777 | ) | (8,788 | ) |
Toledo Spirit time-charter derivative contract | — | — | 150 | — | 459 | |||||
(2,392 | ) | (2,385 | ) | (4,160 | ) | (4,777 | ) | (8,329 | ) | |
Unrealized (losses) gains relating to: | ||||||||||
Interest rate swap agreements | (5,333 | ) | (4,192 | ) | 7,522 | (9,525 | ) | 19,420 | ||
Foreign currency forward contracts | (101 | ) | — | — | (101 | ) | — | |||
Interest rate swaption agreements | — | — | — | — | 2 | |||||
Toledo Spirit time-charter derivative contract | — | (40 | ) | 940 | (40 | ) | 1,210 | |||
(5,434 | ) | (4,232 | ) | 8,462 | (9,666 | ) | 20,632 | |||
Total realized and unrealized (losses) gains on non-designated derivative instruments | (7,826 | ) | (6,617 | ) | 4,302 | (14,443 | ) | 12,303 |
(6) | For accounting purposes, the Partnership is required to revalue all foreign currency-denominated monetary assets and liabilities based on the prevailing exchange rates 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 (Loss). |
Three Months Ended | Six Month Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
2019 | 2019 | 2018 | 2019 | 2018 | ||||||
Realized losses on cross-currency swaps | (1,087 | ) | (1,434 | ) | (1,798 | ) | (2,521 | ) | (3,182 | ) |
Unrealized (losses) gains on cross currency swaps | (139 | ) | (1,920 | ) | (16,566 | ) | (2,059 | ) | 5,768 | |
Unrealized (losses) gains on revaluation of NOK bonds | (3,901 | ) | (579 | ) | 14,852 | (4,480 | ) | (2,635 | ) |
As at June 30, | As at March 31, | As at December 31, | ||||
2019 | 2019 | 2018 | ||||
(unaudited) | (unaudited) | (unaudited) | ||||
ASSETS | ||||||
Current | ||||||
Cash and cash equivalents | 124,880 | 122,589 | 149,014 | |||
Restricted cash – current | 48,869 | 45,329 | 38,329 | |||
Accounts receivable | 25,439 | 23,962 | 20,795 | |||
Prepaid expenses | 8,087 | 10,937 | 8,076 | |||
Vessel held for sale | 12,300 | — | — | |||
Current portion of derivative assets | — | 433 | 835 | |||
Current portion of net investments in direct financing leases | 13,082 | 12,939 | 12,635 | |||
Current portion of advances to equity-accounted joint ventures | 79,108 | 79,363 | 79,108 | |||
Advances to affiliates | 22,831 | 10,146 | 8,229 | |||
Other current assets | 238 | 1,812 | 2,306 | |||
Total current assets | 334,834 | 307,510 | 319,327 | |||
Restricted cash – long-term | 31,439 | 32,686 | 35,521 | |||
Vessels and equipment | ||||||
At cost, less accumulated depreciation | 1,616,029 | 1,645,351 | 1,657,338 | |||
Operating lease right-of-use asset | 40,666 | 19,602 | — | |||
Vessels related to finance leases, at cost, less accumulated depreciation | 1,704,908 | 1,758,028 | 1,585,243 | |||
Advances on newbuilding contracts | — | — | 86,942 | |||
Total vessels and equipment | 3,361,603 | 3,422,981 | 3,329,523 | |||
Investments in and advances to equity-accounted joint ventures | 994,880 | 1,017,088 | 1,037,025 | |||
Net investments in direct financing leases | 551,603 | 558,857 | 562,528 | |||
Derivative assets | — | 362 | 2,362 | |||
Other assets | 12,204 | 11,508 | 11,432 | |||
Intangible assets – net | 47,794 | 50,008 | 52,222 | |||
Goodwill | 34,841 | 34,841 | 34,841 | |||
Total assets | 5,369,198 | 5,435,841 | 5,384,781 | |||
LIABILITIES AND EQUITY | ||||||
Current | ||||||
Accounts payable | 1,169 | 6,542 | 3,830 | |||
Accrued liabilities | 72,241 | 73,730 | 74,753 | |||
Unearned revenue | 24,573 | 24,102 | 30,108 | |||
Current portion of long-term debt | 402,513 | 136,272 | 135,901 | |||
Current obligations related to finance leases | 65,525 | 65,090 | 81,219 | |||
Current portion of operating lease liabilities | 13,098 | 12,863 | — | |||
Current portion of derivative liabilities | 27,805 | 12,060 | 11,604 | |||
Advances from affiliates | 15,655 | 14,475 | 14,731 | |||
Total current liabilities | 622,579 | 345,134 | 352,146 | |||
Long-term debt | 1,465,155 | 1,770,812 | 1,833,875 | |||
Long-term obligations related to finance leases | 1,334,271 | 1,350,897 | 1,217,337 | |||
Long-term operating lease liabilities | 27,568 | 6,739 | — | |||
Other long-term liabilities | 46,171 | 45,966 | 43,788 | |||
Derivative liabilities | 54,767 | 61,164 | 55,038 | |||
Total liabilities | 3,550,511 | 3,580,712 | 3,502,184 | |||
Equity | ||||||
Limited partners – common units | 1,485,516 | 1,493,278 | 1,496,107 | |||
Limited partners – preferred units | 285,159 | 285,159 | 285,159 | |||
General partner | 49,056 | 49,215 | 49,271 | |||
Accumulated other comprehensive (loss) income | (53,232 | ) | (23,504 | ) | 2,717 | |
Partners' equity | 1,766,499 | 1,804,148 | 1,833,254 | |||
Non-controlling interest | 52,188 | 50,981 | 49,343 | |||
Total equity | 1,818,687 | 1,855,129 | 1,882,597 | |||
Total liabilities and total equity | 5,369,198 | 5,435,841 | 5,384,781 |
Six Month Ended | ||||
June 30, | June 30, | |||
2019 | 2018 | |||
(unaudited) | (unaudited) | |||
Cash, cash equivalents and restricted cash provided by (used for) | ||||
OPERATING ACTIVITIES | ||||
Net income (loss) | 43,177 | (11,877 | ) | |
Non-cash items: | ||||
Unrealized loss (gain) on non-designated derivative instruments | 9,666 | (20,632 | ) | |
Depreciation and amortization | 69,464 | 59,061 | ||
Write-down of vessels | — | 51,662 | ||
Unrealized foreign currency exchange loss (gain) | 4,727 | (11,703 | ) | |
Equity income, net of dividends received of $7,008 (2018 – $11,583) | 9,958 | (26,335 | ) | |
Other non-cash items | 8,998 | (8,464 | ) | |
Change in non-cash operating assets and liabilities | (28,827 | ) | 56,299 | |
Receipts from direct financing leases | 6,050 | — | ||
Expenditures for dry docking | (6,335 | ) | (4,423 | ) |
Net operating cash flow | 116,878 | 83,588 | ||
FINANCING ACTIVITIES | ||||
Proceeds from issuance of long-term debt | 126,263 | 248,392 | ||
Scheduled repayments of long-term debt | (66,310 | ) | (105,099 | ) |
Prepayments of long-term debt | (168,787 | ) | (205,765 | ) |
Financing issuance costs | (989 | ) | (4,971 | ) |
Proceeds from financing related to sales and leaseback of vessels | 158,680 | 243,812 | ||
Scheduled repayments of obligations related to finance leases | (33,855 | ) | (25,316 | ) |
Repurchase of common units | (12,056 | ) | — | |
Cash distributions paid | (39,315 | ) | (34,727 | ) |
Dividends paid to non-controlling interest | (55 | ) | (157 | ) |
Net financing cash flow | (36,424 | ) | 116,169 | |
INVESTING ACTIVITIES | ||||
Expenditures for vessels and equipment | (82,575 | ) | (311,308 | ) |
Capital contributions and advances to equity-accounted joint ventures | (15,555 | ) | (27,071 | ) |
Proceeds from sale of equity-accounted joint venture | — | 54,438 | ||
Receipts from direct financing leases | — | 5,242 | ||
Net investing cash flow | (98,130 | ) | (278,699 | ) |
Decrease in cash, cash equivalents and restricted cash | (17,676 | ) | (78,942 | ) |
Cash, cash equivalents and restricted cash, beginning of the period | 222,864 | 339,435 | ||
Cash, cash equivalents and restricted cash, end of the period | 205,188 | 260,493 |
Three Months Ended | ||||
June 30, | ||||
2019 | 2018 | |||
(unaudited) | (unaudited) | |||
Net income – GAAP basis | 19,052 | 6,682 | ||
Less: Net income attributable to non-controlling interests | (2,617 | ) | (3,948 | ) |
Net income attributable to the partners and preferred unitholders | 16,435 | 2,734 | ||
Add (subtract) specific items affecting net income: | ||||
Write-down of vessels(1) | — | 33,000 | ||
Restructuring charges(2) | 818 | — | ||
Unrealized foreign currency exchange losses (gains)(3) | 6,068 | (11,091 | ) | |
Unrealized losses (gains) on non-designated and designated derivative instruments and other items from equity-accounted investees(4) | 6,226 | (4,914 | ) | |
Unrealized losses (gains) on non-designated derivative instruments(5) | 5,434 | (8,462 | ) | |
Other items | — | 1,054 | ||
Non-controlling interests’ share of items above(6) | (546 | ) | 1,214 | |
Total adjustments | 18,000 | 10,801 | ||
Adjusted net income attributable to the partners and preferred unitholders | 34,435 | 13,535 | ||
Preferred unitholders' interest in adjusted net income | 6,425 | 6,426 | ||
General partner's interest in adjusted net income | 560 | 142 | ||
Limited partners’ interest in adjusted net income | 27,450 | 6,967 | ||
Limited partners’ interest in adjusted net income per common unit, basic | 0.35 | 0.09 | ||
Weighted-average number of common units outstanding, basic | 78,603,636 | 79,687,499 |
(1) | See Note 2 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(2) | See Note 3 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(3) | Unrealized foreign currency 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 losses (gains) on the cross currency swaps economically hedging the Partnership’s NOK bonds. This amount excludes the realized losses relating to the cross currency swaps for the NOK bonds. See Note 6 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(4) | Reflects the unrealized losses (gains) due to changes in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes. In addition, for the three months ended June 30, 2018, it includes any ineffectiveness for derivative instruments designated as hedges for accounting purposes. See Note 4 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(5) | Reflects the unrealized losses (gains) due to changes in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes. See Note 5 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(6) | 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 above” in the table above is the cumulative amount of the non-controlling interests’ proportionate share of the other specific items affecting net income listed in the table. |
Three Months Ended | |||||
June 30, | |||||
2019 | 2018 | ||||
(unaudited) | (unaudited) | ||||
Net income: | 19,052 | 6,682 | |||
Add: | |||||
Depreciation and amortization | 35,338 | 29,794 | |||
Partnership’s share of equity-accounted joint ventures' DCF net of estimated maintenance capital expenditures(1) | 16,056 | 14,939 | |||
Unrealized foreign currency exchange losses (gains) | 6,068 | (11,091 | ) | ||
Unrealized losses (gains) on non-designated derivative instruments | 5,434 | (8,462 | ) | ||
Direct finance lease payments received in excess of revenue recognized and other adjustments | 4,037 | 2,897 | |||
Distributions relating to equity financing of newbuildings | 1,099 | 2,289 | |||
Write-down of vessels | — | 33,000 | |||
Deferred income tax and other non-cash items | 116 | 21 | |||
Less: | |||||
Equity income | (1,738 | ) | (11,194 | ) | |
Distributions relating to preferred units | (6,425 | ) | (6,426 | ) | |
Estimated maintenance capital expenditures | (17,397 | ) | (16,345 | ) | |
Distributable Cash Flow before non-controlling interest | 61,640 | 36,104 | |||
Non-controlling interests’ share of DCF before estimated maintenance capital expenditures | (5,310 | ) | (4,988 | ) | |
Distributable Cash Flow | 56,330 | 31,116 | |||
Amount of cash distributions attributable to the General Partner | (304 | ) | (228 | ) | |
Limited partners' Distributable Cash Flow | 56,026 | 30,888 | |||
Weighted-average number of common units outstanding, basic | 78,603,636 | 79,687,499 | |||
Distributable Cash Flow per limited partner common unit | 0.71 | 0.39 |
(1) | The estimated maintenance capital expenditures relating to the Partnership’s share of equity-accounted joint ventures were $10.8 million and $8.3 million for the three months ended June 30, 2019 and 2018, respectively. |
Three Months Ended | ||||
June 30, | ||||
2019 | 2018 | |||
(unaudited) | (unaudited) | |||
Net income | 19,052 | 6,682 | ||
Depreciation and amortization | 35,338 | 29,794 | ||
Interest expense, net of interest income | 40,058 | 27,269 | ||
Income tax expense | 2,472 | 843 | ||
EBITDA | 96,920 | 64,588 | ||
Add (subtract) specific income statement items affecting EBITDA: | ||||
Foreign currency exchange loss (gain) | 7,243 | (8,443 | ) | |
Other income – net | (236 | ) | (350 | ) |
Equity income | (1,738 | ) | (11,194 | ) |
Realized and unrealized loss (gain) on derivative instruments | 7,826 | (4,302 | ) | |
Write-down of vessels | — | 33,000 | ||
Direct finance lease payments received in excess of revenue recognized and other adjustments | 4,037 | 2,897 | ||
Amortization of in-process contracts included in voyage revenues | — | (1,755 | ) | |
Realized gain on Toledo Spirit derivative contract | — | 150 | ||
Consolidated adjusted EBITDA | 114,052 | 74,591 | ||
Adjusted EBITDA from equity-accounted vessels (See Appendix E) | 48,017 | 40,414 | ||
Total Adjusted EBITDA | 162,069 | 115,005 |
Three Months Ended June 30, 2019 | ||||||||
(unaudited) | ||||||||
Liquefied Natural Gas Segment | Liquefied Petroleum Gas Segment | Conventional Tanker Segment | Total | |||||
Voyage revenues | 141,833 | 8,858 | 2,369 | 153,060 | ||||
Voyage (expenses) recoveries | (3,484 | ) | (2,542 | ) | 3 | (6,023 | ) | |
Vessel operating expenses | (23,146 | ) | (3,630 | ) | (681 | ) | (27,457 | ) |
Time-charter hire expense | (3,080 | ) | — | — | (3,080 | ) | ||
Depreciation and amortization | (33,139 | ) | (2,030 | ) | (169 | ) | (35,338 | ) |
General and administrative expenses | (5,051 | ) | (345 | ) | (271 | ) | (5,667 | ) |
Restructuring charges | — | — | (818 | ) | (818 | ) | ||
Income from vessel operations | 73,933 | 311 | 433 | 74,677 | ||||
Depreciation and amortization | 33,139 | 2,030 | 169 | 35,338 | ||||
Direct finance lease payments received in excess of revenue recognized and other adjustments | 4,037 | — | — | 4,037 | ||||
Consolidated Adjusted EBITDA | 111,109 | 2,341 | 602 | 114,052 | ||||
Three Months Ended June 30, 2018 | ||||||||
(unaudited) | ||||||||
Liquefied Natural Gas Segment | Liquefied Petroleum Gas Segment | Conventional Tanker Segment | Total | |||||
Voyage revenues | 105,405 | 6,767 | 10,143 | 122,315 | ||||
Voyage expenses | (496 | ) | (3,949 | ) | (3,506 | ) | (7,951 | ) |
Vessel operating expenses | (22,021 | ) | (7,651 | ) | (3,547 | ) | (33,219 | ) |
Depreciation and amortization | (26,418 | ) | (2,243 | ) | (1,133 | ) | (29,794 | ) |
General and administrative expenses | (5,839 | ) | (1,110 | ) | (897 | ) | (7,846 | ) |
Write-down of vessels | — | (33,000 | ) | — | (33,000 | ) | ||
Income (loss) from vessel operations | 50,631 | (41,186 | ) | 1,060 | 10,505 | |||
Depreciation and amortization | 26,418 | 2,243 | 1,133 | 29,794 | ||||
Write-down of vessels | — | 33,000 | — | 33,000 | ||||
Amortization of in-process contracts included in voyage revenues | (1,647 | ) | — | (108 | ) | (1,755 | ) | |
Direct finance lease payments received in excess of revenue recognized and other adjustments | 2,897 | — | — | 2,897 | ||||
Realized gain on Toledo Spirit derivative contract | — | — | 150 | 150 | ||||
Consolidated Adjusted EBITDA | 78,299 | (5,943 | ) | 2,235 | 74,591 |
Three Months Ended | ||||||||
June 30, 2019 | June 30, 2018 | |||||||
(unaudited) | (unaudited) | |||||||
At | Partnership's | At | Partnership's | |||||
100% | Portion(1) | 100% | Portion(1) | |||||
Voyage revenues | 172,632 | 73,391 | 137,291 | 59,845 | ||||
Voyage expenses | (4,502 | ) | (2,196 | ) | (2,469 | ) | (1,254 | ) |
Vessel operating expenses, time-charter hire expenses and general and administrative expenses | (63,879 | ) | (27,992 | ) | (48,496 | ) | (21,738 | ) |
Depreciation and amortization | (28,551 | ) | (13,741 | ) | (25,368 | ) | (12,652 | ) |
Income from vessel operations of equity-accounted vessels | 75,700 | 29,462 | 60,958 | 24,201 | ||||
Net interest expense | (52,929 | ) | (21,254 | ) | (38,170 | ) | (16,276 | ) |
Income tax expense | (670 | ) | (246 | ) | (46 | ) | (24 | ) |
Other items including realized and unrealized (loss) gain on derivative instruments | (18,764 | ) | (6,224 | ) | 8,495 | 3,293 | ||
Net income / equity income of equity-accounted vessels | 3,337 | 1,738 | 31,237 | 11,194 | ||||
Net income / equity income of equity-accounted LNG vessels | 6,455 | 3,377 | 33,931 | 12,619 | ||||
Net loss / equity loss of equity-accounted LPG vessels | (3,118 | ) | (1,639 | ) | (2,694 | ) | (1,425 | ) |
Net income / equity income of equity-accounted vessels | 3,337 | 1,738 | 31,237 | 11,194 | ||||
Depreciation and amortization | 28,551 | 13,741 | 25,368 | 12,652 | ||||
Net interest expense | 52,929 | 21,254 | 38,170 | 16,276 | ||||
Income tax expense | 670 | 246 | 46 | 24 | ||||
EBITDA from equity-accounted vessels | 85,487 | 36,979 | 94,821 | 40,146 | ||||
Add (subtract) specific income statement items affecting EBITDA: | ||||||||
Other items including realized and unrealized loss (gain) on derivative instruments | 18,764 | 6,224 | (8,495 | ) | (3,293 | ) | ||
Direct finance lease payments received in excess of revenue recognized | 16,131 | 5,759 | 12,574 | 4,523 | ||||
Amortization of in-process contracts | (1,736 | ) | (945 | ) | (1,822 | ) | (962 | ) |
Adjusted EBITDA from equity-accounted vessels | 118,646 | 48,017 | 97,078 | 40,414 | ||||
Adjusted EBITDA from equity-accounted LNG vessels | 102,799 | 40,095 | 84,607 | 34,179 | ||||
Adjusted EBITDA from equity-accounted LPG vessels | 15,847 | 7,922 | 12,471 | 6,235 |
(1) | The Partnership's equity-accounted vessels for the three months ended June 30, 2019 and 2018 include: the Partnership’s 40 percent ownership interest in Teekay Nakilat (III) Corporation, which owns four LNG carriers; the Partnership’s 49 percent ownership interest in the Partnership’s joint venture with Exmar NV (the Excalibur Joint Venture), which owns one LNG carrier; the Partnership’s 33 percent ownership interest in four LNG carriers servicing the Angola LNG project; the Partnership’s 52 percent ownership interest in the Teekay LNG-Marubeni Joint Venture, which owns six LNG carriers; the Partnership’s 50 percent ownership interest in Exmar LPG BVBA, which owns and in-charters 22 LPG carriers as at June 30, 2019, compared to 22 owned and in-chartered LPG carriers, including one LPG carrier newbuilding, as at June 30, 2018; the Partnership’s ownership interest ranging from 20 to 30 percent in four LNG carriers as at June 30, 2019 for Shell, compared to two LNG carriers and two LNG carrier newbuildings as at June 30, 2018; the Partnership’s 50 percent ownership interest in three ARC7 LNG carriers and three ARC7 LNG carrier newbuildings in the Yamal LNG Joint Venture as at June 30, 2019, compared to one ARC7 LNG carrier and five ARC7 LNG carrier newbuildings as at June 30, 2018; and the Partnership's 30 percent ownership interest in the Bahrain LNG Joint Venture, which owns an LNG receiving and regasification terminal under construction in Bahrain. |
As at June 30, 2019 | As at December 31, 2018 | |||||||
(unaudited) | (unaudited) | |||||||
At | Partnership's | At | Partnership's | |||||
100% | Portion(1) | 100% | Portion(1) | |||||
Cash and restricted cash, current and non-current | 408,564 | 165,669 | 388,820 | 164,247 | ||||
Current portion of derivative assets | 860 | 430 | 4,840 | 2,225 | ||||
Other current assets | 67,171 | 30,491 | 86,424 | 31,129 | ||||
Vessels and equipment, including vessels related to finance leases and operating lease right-of-use assets | 2,331,799 | 1,145,557 | 2,327,971 | 1,141,364 | ||||
Advances on newbuilding contracts | 1,194,337 | 449,792 | 1,321,284 | 494,486 | ||||
Net investments in sales-type and direct financing leases, current and non-current | 3,625,687 | 1,365,655 | 3,089,375 | 1,163,980 | ||||
Derivative assets | 327 | 164 | 10,660 | 3,977 | ||||
Other non-current assets | 49,019 | 39,427 | 50,625 | 37,690 | ||||
Total assets | 7,677,764 | 3,197,185 | 7,279,999 | 3,039,098 | ||||
Current portion of long-term debt and obligations related to finance leases and operating leases | 274,034 | 120,346 | 284,150 | 125,984 | ||||
Current portion of derivative liabilities | 26,085 | 10,081 | 12,695 | 4,420 | ||||
Other current liabilities | 144,767 | 63,972 | 127,266 | 53,874 | ||||
Long-term debt and obligations related to finance leases and operating leases | 4,592,339 | 1,828,466 | 4,202,745 | 1,680,986 | ||||
Shareholders' loans, current and non-current | 367,884 | 131,374 | 367,475 | 131,386 | ||||
Derivative liabilities | 166,103 | 66,893 | 61,814 | 23,149 | ||||
Other long-term liabilities | 66,375 | 33,439 | 67,793 | 34,552 | ||||
Equity | 2,040,177 | 942,614 | 2,156,061 | 984,747 | ||||
Total liabilities and equity | 7,677,764 | 3,197,185 | 7,279,999 | 3,039,098 | ||||
Investments in equity-accounted joint ventures | 942,614 | 984,747 | ||||||
Advances to equity-accounted joint ventures | 131,374 | 131,386 | ||||||
Investments in and advances to equity-accounted joint ventures, current and non-current portions | 1,073,988 | 1,116,133 |
(1) | The Partnership's equity-accounted vessels as at June 30, 2019 and December 31, 2018 include: the Partnership’s 40 percent ownership interest in Teekay Nakilat (III) Corporation, which owns four LNG carriers; the Partnership’s 49 percent ownership interests in the Excalibur Joint Venture, which owns one LNG carrier; the Partnership’s 33 percent ownership interest in four LNG carriers servicing the Angola LNG project; the Partnership’s 52 percent ownership interest in the Teekay LNG-Marubeni Joint Venture, which owns six LNG carriers; the Partnership’s 50 percent ownership interest in Exmar LPG BVBA, which owns and in-charters 22 LPG carriers; the Partnership’s ownership interest ranging from 20 percent to 30 percent in four LNG carriers as at June 30, 2019 for Shell, compared to three LNG carriers and one LNG carrier newbuilding as at December 31, 2018; the Partnership’s 50 percent ownership interest in three ARC7 LNG carriers and three ARC7 LNG carrier newbuildings in the Yamal LNG Joint Venture as at June 30, 2019, compared to two ARC7 LNG carriers and four ARC7 LNG carrier newbuildings as at December 31, 2018; and the Partnership's 30 percent ownership interest in the Bahrain LNG Joint Venture, which owns an LNG receiving and regasification terminal under construction in Bahrain. |