6-K 1 altera6-kq2x20doc.htm 6-K Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________
FORM 6-K
_________________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2020
Commission file number 1- 33198
 
_________________________
ALTERA INFRASTRUCTURE L.P.
(Exact name of Registrant as specified in its charter)
_________________________
4th Floor, Belvedere Building, 69 Pitts Bay Road, Pembroke, HM 08, Bermuda
(Address of principal executive office)
_________________________
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













ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
REPORT ON FORM 6-K FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2020
INDEX







ITEM 1 - FINANCIAL STATEMENTS
ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF LOSS
(in thousands of U.S. Dollars, except unit and per unit data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
$$$$
Revenues (notes 5 and 8)
304,463  319,774  616,864  656,411  
Voyage expenses(27,945) (32,624) (66,715) (66,690) 
Vessel operating expenses (note 8)
(119,393) (118,718) (224,725) (219,937) 
Time-charter hire expenses(8,377) (10,619) (20,852) (23,072) 
Depreciation and amortization(76,228) (88,666) (154,729) (178,132) 
General and administrative (notes 8 and 13)
(17,638) (17,212) (37,436) (34,204) 
(Write-down) and (loss) gain on sale of vessels (notes 3 and 16)
(12,115) 11,756  (168,407) 11,756  
Goodwill impairment (note 18)
—  —  (2,032) —  
Restructuring charge (note 15)
(4,281) —  (5,181) —  
Operating income (loss)38,486  63,691  (63,213) 146,132  
Interest expense (notes 6, 8 and 9)
(46,172) (51,443) (94,641) (103,857) 
Interest income43  1,253  710  2,323  
Realized and unrealized loss on derivative instruments (note 9)
(15,194) (40,839) (106,117) (72,229) 
Equity income7,340  2,388  2,196  3,274  
Foreign currency exchange (loss) gain (note 9)
(1,044) 1,789  (4,599) 1,221  
Other income (expense) - net145  (1,640) (183) (1,994) 
Loss before income tax expense(16,396) (24,801) (265,847) (25,130) 
Income tax recovery (expense) (note 10)
234  (3,178) (4,131) (5,447) 
Net loss(16,162) (27,979) (269,978) (30,577) 
Non-controlling interests in net loss(610)  (11,635) 286  
Preferred unitholders' interest in net loss (note 12)
8,038  8,038  16,076  16,076  
General Partner’s interest in net loss(179) (274) (2,082) (357) 
Limited partners' interest in net loss(23,411) (35,744) (272,337) (46,582) 
Limited partners' interest in net loss per common unit
'- basic (note 12)
(0.06) (0.09) (0.66) (0.11) 
'- diluted (note 12)
(0.06) (0.09) (0.66) (0.11) 
Weighted-average number of common units outstanding
- basic411,148,991  410,595,551  411,148,991  410,469,820  
- diluted411,148,991  410,595,551  411,148,991  410,469,820  
Related party transactions (note 8)
The accompanying notes are an integral part of the unaudited consolidated financial statements.
Page 1 of 42



ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands of U.S. Dollars)

Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
$$$$
Net loss(16,162) (27,979) (269,978) (30,577) 
Other comprehensive loss
Amounts reclassified from accumulated other comprehensive __loss
To interest expense:
Realized gain on qualifying cash flow hedging instruments (note 9)
(208) (164) (416) (297) 
To equity income:
Realized gain on qualifying cash flow hedging instruments(259) (131) (514) (172) 
Other comprehensive loss(467) (295) (930) (469) 
Comprehensive loss(16,629) (28,274) (270,908) (31,046) 
Non-controlling interests in comprehensive loss(610)  (11,635) 286  
Preferred unitholders' interest in comprehensive loss8,038  8,038  16,076  16,076  
General and limited partners' interest in comprehensive loss(24,057) (36,313) (275,349) (47,408) 
The accompanying notes are an integral part of the unaudited consolidated financial statements.

Page 2 of 42



ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. Dollars)
As at
June 30,
As at
December 31,
20202019
$$
ASSETS
Current
Cash and cash equivalents241,098  199,388  
Restricted cash (note 17)
20,789  17,798  
Accounts receivable, including non-trade of $34,573 (December 31, 2019 - $34,468)220,586  204,020  
Vessels held for sale (notes 3 and 16)
8,385  15,374  
Prepaid expenses26,572  29,887  
Other current assets (notes 3b, 5 and 9)
17,335  7,467  
Total current assets534,765  473,934  
Restricted cash - long-term (note 17)
20,000  89,070  
Vessels and equipment
   At cost, less accumulated depreciation of $1,268,411 (December 31, 2019 - $1,666,582)3,444,178  3,511,758  
Advances on newbuilding contracts (note 11c)
198,024  257,017  
Investment in equity accounted joint ventures (note 14)
217,971  234,627  
Deferred tax asset4,572  7,000  
Other assets (notes 3b, 5, 7 and 9)
219,842  220,716  
Goodwill 127,113  129,145  
Total assets4,766,465  4,923,267  
LIABILITIES AND EQUITY
Current
Accounts payable (note 11)
65,420  56,699  
Accrued liabilities (notes 9 and 13)
170,049  140,976  
Deferred revenues (note 5)
71,529  53,728  
Due to related parties (notes 8c and 8d)
125,000  20,000  
Current portion of derivative instruments (note 9)
177,999  18,956  
Current portion of long-term debt (note 6)
346,173  353,238  
Other current liabilities (notes 3 and 7)
16,084  14,793  
Total current liabilities972,254  658,390  
Long-term debt (note 6)
2,751,705  2,825,712  
Derivative instruments (note 9)
56,551  143,222  
Other long-term liabilities (notes 3, 5, 7, 10 and 11)
206,032  223,877  
Total liabilities3,986,542  3,851,201  
Commitments and contingencies (notes 6, 7, 9 and 11)
Equity
Limited partners - common units (nil and 411.1 million units issued and outstanding at June 30, 2020 __and December 31, 2019, respectively) (notes 12 and 13)
—  505,394  
Limited partners - Class A common units (5.2 million and nil units issued and outstanding at June 30, __2020 and December 31, 2019, respectively) (notes 12 and 13)
4,617  —  
Limited partners - Class B common units (405.9 million and nil units issued and outstanding at June __30, 2020 and December 31, 2019) (notes 12 and 13)
359,253  —  
Limited partners - preferred units (15.8 million units issued and outstanding at June 30, 2020 and __December 31, 2019)
384,274  384,274  
General Partner11,085  12,164  
Warrants (note 12)
—  132,225  
Accumulated other comprehensive income3,480  4,410  
Non-controlling interests 17,214  33,599  
Total equity779,923  1,072,066  
Total liabilities and total equity4,766,465  4,923,267  
The accompanying notes are an integral part of the unaudited consolidated financial statements.
Page 3 of 42



ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. Dollars)
 
Six Months Ended June 30,
20202019
$$
Cash, cash equivalents and restricted cash provided by (used for)
OPERATING ACTIVITIES
Net loss(269,978) (30,577) 
Adjustments to reconcile net loss to net operating cash flow:
Unrealized loss on derivative instruments (note 9)
71,359  63,468  
Equity income, net of dividends received of $20,534 (2019 - $3,824)18,338  550  
Depreciation and amortization154,729  178,132  
Write-down and loss (gain) on sale of vessels (note 16)
168,407  (11,756) 
Goodwill impairment (note 18)
2,032  —  
Deferred income tax expense (note 10)
530  2,351  
Amortization of in-process revenue contract—  (15,062) 
Direct financing lease payments received1,857  —  
Expenditures for dry docking(3,785) (10,593) 
Other6,647  (19,415) 
Change in non-cash working capital items related to operating activities8,416  30,148  
Net operating cash flow 158,552  187,246  
FINANCING ACTIVITIES
Proceeds from long-term debt (note 6)
72,015  148,480  
Scheduled repayments of long-term debt and settlement of related swaps (notes 6 and 9)
(159,869) (169,214) 
Financing issuance costs(847) (13,208) 
Proceeds from financing related to sales and leaseback of vessels (note 11c)
35,703  —  
Proceeds from credit facility due to related parties (note 8d)
105,000  —  
Prepayments of credit facility due to related parties—  (75,000) 
Cash distributions paid by the Partnership (16,076) (16,075) 
Cash distributions paid by subsidiaries to non-controlling interests(4,750) (2,583) 
Cash contributions paid from non-controlling interests to subsidiaries—  1,500  
Other—  (864) 
Net financing cash flow 31,176  (126,964) 
INVESTING ACTIVITIES
Net payments for vessels and equipment, including advances on newbuilding contracts(233,391) (112,849) 
Proceeds from sale of vessels and equipment15,060  33,341  
Investment in equity accounted joint ventures(2,196) (3,824) 
Acquisition of company (net of cash acquired of $6.4 million)6,430  —  
Net investing cash flow (214,097) (83,332) 
Decrease in cash, cash equivalents and restricted cash(24,369) (23,050) 
Cash, cash equivalents and restricted cash, beginning of the period306,256  233,580  
Cash, cash equivalents and restricted cash, end of the period281,887  210,530  
Supplemental cash flow information (note 17)
The accompanying notes are an integral part of the unaudited consolidated financial statements.
Page 4 of 42



ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY
(in thousands of U.S. Dollars and units)

PARTNERS’ EQUITY
Limited Partners
Class A Common Units
#
Class A Common Units and Additional Paid-in Capital
$
Class B Common Units
#
Class B Common Units and Additional Paid-in Capital
$
Common
Units
#
Common
Units and
Additional
Paid-in Capital
$
Preferred
Units
#
Preferred
Units
$
Warrants
$
General
Partner
$
Accumulated Other Comprehensive Income
$
Non- controlling Interests
$
Total
Equity
$
Balance as at December 31, 2019—  —  —  —  411,149  505,394  15,800  384,274  132,225  12,164  4,410  33,599  1,072,066  
Exchange of equity instruments __(note 12)
5,217  6,413  405,932  498,981  (411,149) (505,394) —  —  —  —  —  —  —  
Net loss—  (3,158) —  (245,768) —  —  —  8,038  —  (1,903) —  (11,025) (253,816) 
Other comprehensive loss (note 9)
—  —  —  —  —  —  —  —  —  —  (463) —  (463) 
Distributions declared:
Preferred units - Series A __($0.4531 per unit)
—  —  —  —  —  —  —  (2,719) —  —  —  —  (2,719) 
Preferred units - Series B __($0.5313 per unit)
—  —  —  —  —  —  —  (2,657) —  —  —  —  (2,657) 
Preferred units - Series E __($0.5547 per unit)
—  —  —  —  —  —  —  (2,662) —  —  —  —  (2,662) 
Other distributions—  —  —  —  —  —  —  —  —  —  —  (4,750) (4,750) 
Equity based compensation and __other (note 13)
—  (6) —  (403) —  —  —  —  —  —  —  —  (409) 
Termination of warrants (note 12)
—  1,665  —  129,557  —  —  —  —  (132,225) 1,003  —  —  —  
Balance as at March 31, 20205,217  4,914  405,932  382,367  —  —  15,800  384,274  —  11,264  3,947  17,824  804,590  
Net loss(297) (23,114) 8,038  (179) (610) (16,162) 
Other comprehensive loss (note 9)—  —  —  —  —  —  —  —  —  —  (467) —  (467) 
Distributions declared:
Preferred units - Series A __($0.4531 per unit)
—  —  —  —  —  —  —  (2,719) —  —  —  —  (2,719) 
Preferred units - Series B __($0.5313 per unit)
—  —  —  —  —  —  —  (2,657) —  —  —  —  (2,657) 
Preferred units - Series E __($0.5547 per unit)
—  —  —  —  —  —  —  (2,662) —  —  —  —  (2,662) 
Balance as at June 30, 20205,217  4,617  405,932  359,253  —  —  15,800  384,274  —  11,085  3,480  17,214  779,923  

 PARTNERS’ EQUITY  
 Limited Partners   
 Common
Units
#
Common
Units and
Additional
Paid-in Capital
$
Preferred
Units
#
Preferred
Units
$

Warrants
$
General
Partner
$
Accumulated Other Comprehensive Income
$
Non- controlling Interests
$
Total
Equity
$
Balance as at December 31, 2018410,315  883,090  15,800  384,274  132,225  15,055  7,361  37,119  1,459,124  
Net loss—  (10,838) —  8,038  —  (83) —  285  (2,598) 
Other comprehensive loss (note 9)
—  —  —  —  —  —  (174) —  (174) 
Distributions declared:
   Preferred units - Series A ($0.4531 per unit)—  —  —  (2,719) —  —  —  —  (2,719) 
   Preferred units - Series B ($0.5313 per unit)—  —  —  (2,657) —  —  —  —  (2,657) 
   Preferred units - Series E ($0.5547 per unit)—  —  —  (2,662) —  —  —  —  (2,662) 
   Other distributions—  —  —  —  —  —  —  (2,251) (2,251) 
Equity based compensation and other (note 13)
86  874  —  —  —  (3) —  —  871  
Balance as at March 31, 2019410,401  873,126  15,800  384,274  132,225  14,969  7,187  35,153  1,446,934  
Net loss
—  (35,744) —  8,038  —  (274) —   (27,979) 
Other comprehensive loss (note 9)
—  —  —  —  —  —  (295) —  (295) 
Distributions declared:
   Preferred units - Series A ($0.4531 per unit)
—  —  —  (2,719) —  —  —  —  (2,719) 
   Preferred units - Series B ($0.5313 per unit)
—  —  —  (2,657) —  —  —  —  (2,657) 
   Preferred units - Series E ($0.5547 per unit)
—  —  —  (2,662) —  —  —  —  (2,662) 
   Other distributions
—  —  —  —  —  —  —  (332) (332) 
Contribution from non-controlling interests
—  —  —  —  —  —  —  1,500  1,500  
Equity based compensation and other (note 13)
307  23  —  —  —   —  —  24  
Balance as at June 30, 2019410,708  837,405  15,800  384,274  132,225  14,696  6,892  36,322  1,411,814  
The accompanying notes are an integral part of the unaudited consolidated financial statements.
Page 5 of 42


ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, except unit and per unit data)

1.Basis of Presentation

The unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (or GAAP). These financial statements include the accounts of Altera Infrastructure L.P., which is a limited partnership organized under the laws of the Republic of the Marshall Islands, and its wholly-owned or controlled subsidiaries (collectively, the Partnership). Unless the context otherwise requires, the terms "we," "us," or "our," as used herein, refer to the Partnership.

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements for the year ended December 31, 2019, which are included in the Partnership’s Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (or SEC) on February 28, 2020. In the opinion of management of the Partnership’s general partner, Altera Infrastructure GP L.L.C. (or the general partner), these unaudited consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly, in all material respects, the Partnership’s consolidated financial position, results of operations, changes in total equity and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of those for a full fiscal year. Historically, the utilization of shuttle tankers in the North Sea is higher in the winter months as favorable weather conditions in the summer months provide opportunities for repairs and maintenance to the Partnership’s vessels and to offshore oil platforms. Downtime for repairs and maintenance generally reduces oil production and, thus, transportation requirements. Intercompany balances and transactions have been eliminated upon consolidation.

2. Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (or FASB) issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13). ASU 2016-13 replaced the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 became effective for the Partnership January 1, 2020, with a modified-retrospective approach. The adoption of ASU 2016-13 did not have a material impact on the Partnership's consolidated financial statements. The Partnership will continue to monitor the impact of ASU 2016-13.

In December 2019, the FASB issued Accounting Standards Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (or ASU 2019-12), as part of its initiative to reduce complexity in the accounting standards. The amendments in ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences, among other changes. The guidance becomes effective for annual reporting periods beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The Partnership is currently evaluating the effect of adopting this new guidance.

In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (or ASU 2020-04), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of a reference rate reform. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022. The Partnership is currently evaluating the effect of adopting this new guidance.

3. Fair Value Measurements and Financial Instruments

a)Fair Value Measurements

For a description of how the Partnership estimates fair value and for a description of the fair value hierarchy levels, see Item 18 - Financial Statements: Note 3 in the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2019. The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at fair value on a recurring basis.
Page 6 of 42


ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, except unit and per unit data)
  June 30, 2020December 31, 2019
 Fair Value
Hierarchy
Level
Carrying
Amount
Asset
 (Liability)
$
Fair Value
Asset 
(Liability)
$
Carrying
Amount
Asset 
(Liability)
$
Fair Value
Asset 
(Liability)
$
Recurring:
Cash and cash equivalents and restricted cashLevel 1281,887  281,887  306,256  306,256  
Derivative instruments (note 9)
Interest rate swap agreementsLevel 2(235,973) (235,973) (163,972) (163,972) 
Foreign currency forward contractsLevel 257  57  575  575  
Non-Recurring:
Vessels held for sale (note 16)
Level 23,385  3,385  15,374  15,374  
Vessel and equipment (note 16)
Level 2—  —  176,577  176,577  
Other:
Long-term debt - public (note 6)
Level 1(1,069,281) (990,142) (1,067,740) (1,069,204) 
Long-term debt - non-public (note 6)
Level 2(2,028,597) (2,064,105) (2,111,210) (2,136,315) 
Due to related parties - current (note 8e)
Level 2(125,000) (124,523) (20,000) (19,781) 
Obligations related to finance leases (note 11c)
Level 2(57,153) (59,500) (21,453) (23,800) 

Vessels held for sale – In March and June 2020, the carrying value of the Navion Bergen shuttle tanker was written down to its estimated fair value, using appraised values, as a result of the expected sale of the vessel (see note 16).

Vessels and equipment – In June 2020, as a result of an adverse change in the condition of the Dampier Spirit FSO, the Partnership determined that the vessel was impaired and classified as held for sale on the Partnership's unaudited consolidated balance sheet as at June 30, 2020 at fair value less costs to sell. The Partnership's unaudited consolidated statements of loss for the three and six months ended June 30, 2020 include a $9.2 million write-down related to this vessel (see note 16).

b)Financing Receivables

The following table contains a summary of the Partnership’s financing receivables by type of borrower and the method by which the Partnership monitors the credit quality and the grade of its financing receivables on a quarterly basis:
Credit Quality
Indicator
GradeJune 30, 2020December 31, 2019
 $$
Direct financing and sales-type leasesPayment activityPerforming34,439  3,875  

4. Segment Reporting

For the three and six months ended June 30, 2020, the Partnership had five (three and six months ended June 30, 2019 - six) reportable segments: floating production, storage and off-loading (or FPSO), shuttle tanker, floating storage and off-take (or FSO), Unit for Maintenance and Safety (or UMS) and towage and offshore installation (or towage). During 2019, the Partnership redelivered its two in-chartered conventional tankers to their owners and ceased operations in the conventional tanker segment.

Adjusted EBITDA is the primary measure used by the Partnership's chief decision-maker and management for evaluating segment performance. Adjusted EBITDA is defined as net loss before interest expense (net), income tax expense, and depreciation and amortization adjusted to exclude certain items whose timing or amount cannot be reasonably estimated in advance or that are not considered representative of core operating performance. Such adjustments include vessel write-downs, gains or losses on the sale of vessels, unrealized gains or losses on derivative instruments, foreign exchange gains or losses, losses on debt repurchases, and certain other income or expenses. Adjusted EBITDA also excludes: realized gains or losses on interest rate swaps as management, in assessing the Partnership's performance, views these gains or losses as an element of interest expense; realized gains or losses on derivative instruments resulting from amendments or terminations of the underlying instruments; and equity income. Adjusted EBITDA also includes the Partnership's proportionate share of Adjusted EBITDA from its equity-accounted joint ventures and excludes the non-controlling interests' proportionate share of Adjusted EBITDA from the Partnership's consolidated joint ventures. The Partnership does not have control over the operations of, nor does it have any legal claim to the revenue and expenses of its investments in, its equity-accounted for joint ventures. Consequently, the cash flow generated by the Partnership’s investments in equity accounted joint ventures may not be available for use by the Partnership in the period that such cash flows are generated.
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ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, except unit and per unit data)

Adjusted EBITDA is also used by external users of the Partnership's unaudited consolidated financial statements, such as investors and the Partnership’s controlling unitholder.

The following tables include results for the Partnership’s reportable segments for the periods presented in these unaudited consolidated financial statements.
Three Months Ended June 30, 2020FPSO SegmentShuttle Tanker SegmentFSO
Segment
UMS SegmentTowage
Segment
Corporate/EliminationsTotal
Revenues131,440  138,244  27,747  452  6,580  —  304,463  
Voyage expenses—  (22,890) (177) (6) (4,872) —  (27,945) 
Vessel operating expenses
(69,319) (31,945) (10,575) (902) (6,652) —  (119,393) 
Time-charter hire expenses
—  (8,377) —  —  —  —  (8,377) 
General and administrative(1)
(10,433) (4,838) (702) (885) (780) —  (17,638) 
Restructuring recovery (charge)536  —  (4,817) —  —  —  (4,281) 
Realized loss on foreign currency forward contracts
—  —  —  —  —  (1,813) (1,813) 
Adjusted EBITDA from equity-accounted vessels(2)
21,926  —  —  —  —  —  21,926  
Adjusted EBITDA attributable to non-controlling interests
—  (4,112) (123) —  —  —  (4,235) 
Adjusted EBITDA
74,150  66,082  11,353  (1,341) (5,724) (1,813) 142,707  

Three Months Ended June 30, 2019FPSO SegmentShuttle Tanker SegmentFSO
Segment
UMS SegmentTowage
Segment
Conventional Tanker SegmentCorporate/EliminationsTotal
Revenues 127,478  137,050  34,605  431  16,716  3,494  —  319,774  
Voyage expenses—  (21,401) (205) (13) (7,956) (3,049) —  (32,624) 
Vessel operating expenses
(69,146) (29,830) (10,546) (1,059) (8,137) —  —  (118,718) 
Time-charter hire expenses
—  (9,963) —  —  —  (656) —  (10,619) 
General and administrative(1)
(8,782) (5,159) (965) (1,243) (1,049) (14) —  (17,212) 
Realized loss on foreign currency forward contracts
—  —  —  —  —  —  (1,142) (1,142) 
Adjusted EBITDA from equity-accounted vessels(2)
22,619  —  —  —  —  —  —  22,619  
Adjusted EBITDA attributable to non-controlling interests
—  (3,009) (128) —  —  —  —  (3,137) 
Adjusted EBITDA
72,169  67,688  22,761  (1,884) (426) (225) (1,142) 158,941  

Page 8 of 42


ALTERA INFRASTRUCTURE L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, except unit and per unit data)
Six Months Ended June 30, 2020FPSO SegmentShuttle Tanker SegmentFSO SegmentUMS SegmentTowage SegmentCorporate/EliminationsTotal
Revenues247,644  288,247  62,644  899  17,430  —  616,864  
Voyage expenses—  (56,316) (364) (23) (10,012) —  (66,715) 
Vessel operating expenses(122,507) (64,471) (20,569) (1,888) (15,290) —  (224,725) 
Time-charter hire expenses—  (20,852) —  —  —  —  (20,852) 
General and administrative(1)
(20,670) (10,569) (1,406) (2,936) (1,855) —  (37,436) 
Restructuring charge(364) —  (4,817) —  —  —  (5,181) 
Realized loss on foreign currency __forward contracts
—  —  —  —  —  (3,116) (3,116) 
Adjusted EBITDA from equity-__accounted vessels(2)
45,690  —  —  —  —  —  45,690  
Adjusted EBITDA attributable to __non-controlling interests
—  (7,783) (244) —  —  —  (8,027) 
Adjusted EBITDA149,793  128,256  35,244  (3,948) (9,727) (3,116) 296,502  

Six Months Ended June 30, 2019FPSO SegmentShuttle Tanker SegmentFSO
Segment
UMS SegmentTowage
Segment
Conventional Tanker SegmentCorporate/EliminationsTotal
Revenues 264,038  274,387  69,259  2,053  38,702  7,972  —  656,411  
Voyage expenses—  (42,706) (410) (28) (18,569) (4,977) —  (66,690) 
Vessel operating expenses
(123,072) (61,837) (20,677) (56)