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 13, 2020 | By: | /s/ Angelique Burgess | |
Angelique Burgess Secretary |
• | GAAP net income attributable to the partners and preferred unitholders of $44.9 million and GAAP net income per common unit of $0.46 in the second quarter of 2020. |
• | Adjusted net income(1) attributable to the partners and preferred unitholders of $62.6 million and adjusted net income per common unit of $0.67 in the second quarter of 2020 (excluding other items listed in Appendix A to this release). |
• | Total adjusted EBITDA(1) of $192.3 million in the second quarter of 2020, representing another quarterly record and up nearly 19 percent from the same quarter of the prior year. |
• | Eighth consecutive quarterly increase in total adjusted EBITDA(1). |
• | Fixed-rate charters performing as expected; reaffirming 2020 financial guidance(2). |
Three Months Ended | ||||||
June 30, 2020 | March 31, 2020 | June 30, 2019 | ||||
(in thousands of U.S. Dollars, except per unit data) | (unaudited) | (unaudited) | (unaudited) | |||
GAAP FINANCIAL COMPARISON | ||||||
Voyage revenues | 148,205 | 139,887 | 153,060 | |||
Income from vessel operations | 69,589 | 21,738 | 74,677 | |||
Equity income | 32,155 | 373 | 1,738 | |||
Net income (loss) attributable to the partners and preferred unitholders | 44,934 | (32,994 | ) | 16,435 | ||
Limited partners’ interest in net income per common unit | 0.46 | (0.50 | ) | 0.12 | ||
NON-GAAP FINANCIAL COMPARISON | ||||||
Total adjusted revenues(1) | 254,001 | 244,268 | 221,926 | |||
Total adjusted EBITDA(1) | 192,340 | 188,388 | 162,069 | |||
Distributable cash flow (DCF)(1) | 83,170 | 74,877 | 56,330 | |||
Adjusted net income attributable to the partners and preferred unitholders(1) | 62,643 | 52,236 | 34,435 | |||
Limited partners’ interest in adjusted net income per common unit | 0.67 | 0.58 | 0.35 |
(1) | 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 United States generally accepted accounting principles (GAAP). |
(1) | 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 United States generally accepted accounting principles (GAAP). |
Three Months Ended | ||||||||||||||||
June 30, 2020 | June 30, 2019 | |||||||||||||||
(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 | 137,822 | 10,383 | — | 148,205 | 141,833 | 8,858 | 2,369 | 153,060 | ||||||||
Income from vessel operations | 69,232 | 357 | — | 69,589 | 73,933 | 311 | 433 | 74,677 | ||||||||
Equity income (loss) | 27,795 | 4,360 | — | 32,155 | 3,377 | (1,639 | ) | — | 1,738 | |||||||
NON-GAAP FINANCIAL COMPARISON | ||||||||||||||||
Consolidated adjusted EBITDA(i) | 103,190 | 1,420 | — | 104,610 | 111,109 | 2,341 | 602 | 114,052 | ||||||||
Adjusted EBITDA from equity-accounted vessels(i) | 75,824 | 11,906 | — | 87,730 | 40,095 | 7,922 | — | 48,017 | ||||||||
Total adjusted EBITDA(i) | 179,014 | 13,326 | — | 192,340 | 151,204 | 10,263 | 602 | 162,069 |
(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) | ||
LNG Carrier Fleet | 47(ii) | |
LPG/Multi-gas Carrier Fleet | 30(iii) | |
Total | 77 |
(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 interests in these vessels range from 50 percent to 100 percent. |
▪ | By dialing 1 (800) 367-2403 or 1 (647) 490-5367, if outside North America, and quoting conference ID code 9339565. |
▪ | 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 Months Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Voyage revenues | 148,205 | 139,887 | 153,060 | 288,092 | 302,804 | |||||
Voyage expenses | (5,329 | ) | (2,317 | ) | (6,023 | ) | (7,646 | ) | (11,798 | ) |
Vessel operating expenses | (28,407 | ) | (26,104 | ) | (27,457 | ) | (54,511 | ) | (53,558 | ) |
Time-charter hire expense | (5,368 | ) | (5,922 | ) | (3,080 | ) | (11,290 | ) | (8,671 | ) |
Depreciation and amortization | (31,629 | ) | (32,639 | ) | (35,338 | ) | (64,268 | ) | (69,464 | ) |
General and administrative expenses | (7,883 | ) | (6,167 | ) | (5,667 | ) | (14,050 | ) | (12,299 | ) |
Write-down of vessels(1) | — | (45,000 | ) | — | (45,000 | ) | — | |||
Restructuring charges(2) | — | — | (818 | ) | — | (2,976 | ) | |||
Income from vessel operations | 69,589 | 21,738 | 74,677 | 91,327 | 144,038 | |||||
Equity income(3) | 32,155 | 373 | 1,738 | 32,528 | 7,316 | |||||
Interest expense | (35,143 | ) | (36,704 | ) | (41,018 | ) | (71,847 | ) | (83,235 | ) |
Interest income | 1,697 | 2,370 | 960 | 4,067 | 2,038 | |||||
Realized and unrealized loss on non-designated derivative instruments(4) | (8,516 | ) | (20,471 | ) | (7,826 | ) | (28,987 | ) | (14,443 | ) |
Foreign currency exchange (loss) gain(5) | (11,624 | ) | 4,739 | (7,243 | ) | (6,885 | ) | (7,974 | ) | |
Other expense | (679 | ) | (361 | ) | (487 | ) | (1,040 | ) | (236 | ) |
Net income (loss) before income tax recovery (expense) | 47,479 | (28,316 | ) | 20,801 | 19,163 | 47,504 | ||||
Income tax recovery (expense) | 1,804 | (2,512 | ) | (1,749 | ) | (708 | ) | (4,327 | ) | |
Net income (loss) | 49,283 | (30,828 | ) | 19,052 | 18,455 | 43,177 | ||||
Non-controlling interest in net income | 4,349 | 2,166 | 2,617 | 6,515 | 5,125 | |||||
Preferred unitholders' interest in net income | 6,425 | 6,425 | 6,425 | 12,850 | 12,850 | |||||
General partner's interest in net income (loss) | 713 | (789 | ) | 200 | (76 | ) | 504 | |||
Limited partners’ interest in net income (loss) | 37,796 | (38,630 | ) | 9,810 | (834 | ) | 24,698 | |||
Limited partners' interest in net income (loss) per common unit: | ||||||||||
• Basic | 0.46 | (0.50 | ) | 0.12 | (0.01 | ) | 0.31 | |||
• Diluted | 0.46 | (0.50 | ) | 0.12 | (0.01 | ) | 0.31 | |||
Weighted-average number of common units outstanding: | ||||||||||
• Basic | 82,197,665 | 77,071,647 | 78,603,636 | 79,629,623 | 78,600,342 | |||||
• Diluted | 82,262,235 | 77,071,647 | 78,685,537 | 79,629,623 | 78,682,263 | |||||
Total number of common units outstanding at end of period | 86,927,558 | 76,171,639 | 78,441,316 | 86,927,558 | 78,441,316 |
(1) | In the first quarter of 2020, the Partnership wrote-down six wholly-owned multi-gas carriers (the Pan Spirit, Unikum Spirit, Vision Spirit, Camilla Spirit, Sonoma Spirit and Cathinka Spirit) to their estimated fair values. The total impairment charge of $45.0 million related to these six multi-gas carriers is included in write-down of vessels for the three months ended March 31, 2020, and six months ended June 30, 2020. |
(2) | In January 2019, the Toledo Spirit conventional tanker was sold and as a result of this sale, the Partnership recorded restructuring charges of $0.8 million and $3.0 million for the three and six months ended June 30, 2019, respectively. |
(3) | 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 Months Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||
Equity income | 32,155 | 373 | 1,738 | 32,528 | 7,316 | |||||
Proportionate share of unrealized loss on non-designated interest rate swaps | 3,806 | 22,204 | 5,102 | 26,010 | 9,462 | |||||
Proportionate share of unrealized credit loss provision(a) | (423 | ) | 8,980 | — | 8,557 | — | ||||
Proportionate share of other items | 362 | (539 | ) | 1,124 | (177 | ) | 1,469 | |||
Equity income adjusted for items in Appendix A | 35,900 | 31,018 | 7,964 | 66,918 | 18,247 |
(4) | The realized losses on non-designated derivative instruments relate to the amounts the Partnership actually paid 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 Months Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||
Realized losses relating to: | ||||||||||
Interest rate swap agreements | (3,662 | ) | (2,911 | ) | (2,392 | ) | (6,573 | ) | (4,777 | ) |
Foreign currency forward contracts | — | (241 | ) | — | (241 | ) | — | |||
(3,662 | ) | (3,152 | ) | (2,392 | ) | (6,814 | ) | (4,777 | ) | |
Unrealized (losses) gains relating to: | ||||||||||
Interest rate swap agreements | (4,854 | ) | (17,521 | ) | (5,333 | ) | (22,375 | ) | (9,525 | ) |
Foreign currency forward contracts | — | 202 | (101 | ) | 202 | (101 | ) | |||
Toledo Spirit time-charter derivative contract | — | — | — | — | (40 | ) | ||||
(4,854 | ) | (17,319 | ) | (5,434 | ) | (22,173 | ) | (9,666 | ) | |
Total realized and unrealized losses on non-designated derivative instruments | (8,516 | ) | (20,471 | ) | (7,826 | ) | (28,987 | ) | (14,443 | ) |
Three Months Ended | Six Months Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||
Realized losses on cross-currency swaps | (1,430 | ) | (1,817 | ) | (1,087 | ) | (3,247 | ) | (2,521 | ) |
Realized losses on cross-currency swaps maturity | (33,844 | ) | — | — | (33,844 | ) | — | |||
Realized gains on repayment of NOK bonds | 33,844 | — | — | 33,844 | — | |||||
Unrealized gains (losses) on cross currency swaps | 45,881 | (49,540 | ) | (139 | ) | (3,659 | ) | (2,059 | ) | |
Unrealized (losses) gains on revaluation of NOK bonds | (53,794 | ) | 53,973 | (3,901 | ) | 179 | (4,480 | ) |
As at June 30, | As at March 31, | As at December 31, | ||||
2020 | 2020 | 2019 | ||||
(unaudited) | (unaudited) | (unaudited) | ||||
ASSETS | ||||||
Current | ||||||
Cash and cash equivalents | 226,328 | 312,710 | 160,221 | |||
Restricted cash – current | 11,544 | 37,032 | 53,689 | |||
Accounts receivable | 9,694 | 10,592 | 13,460 | |||
Prepaid expenses | 10,891 | 7,780 | 6,796 | |||
Current portion of derivative assets | — | — | 355 | |||
Current portion of net investments in direct financing and sale-type leases | 14,014 | 13,740 | 273,986 | |||
Advances to affiliates | 3,025 | 5,474 | 5,143 | |||
Other current assets | 237 | 237 | 238 | |||
Total current assets | 275,733 | 387,565 | 513,888 | |||
Restricted cash – long-term | 54,603 | 76,496 | 39,381 | |||
Vessels and equipment | ||||||
At cost, less accumulated depreciation | 1,256,434 | 1,272,433 | 1,335,397 | |||
Vessels related to finance leases, at cost, less accumulated depreciation | 1,675,168 | 1,686,634 | 1,691,945 | |||
Operating lease right-of-use asset | 27,568 | 30,882 | 34,157 | |||
Total vessels and equipment | 2,959,170 | 2,989,949 | 3,061,499 | |||
Investments in and advances to equity-accounted joint ventures | 1,082,346 | 1,065,389 | 1,155,316 | |||
Net investments in direct financing and sales-type leases | 525,812 | 529,943 | 544,823 | |||
Other assets | 17,633 | 16,169 | 14,738 | |||
Derivative assets | — | — | 1,834 | |||
Intangible assets – net | 38,938 | 41,152 | 43,366 | |||
Goodwill | 34,841 | 34,841 | 34,841 | |||
Total assets | 4,989,076 | 5,141,504 | 5,409,686 | |||
LIABILITIES AND EQUITY | ||||||
Current | ||||||
Accounts payable | 4,270 | 1,633 | 5,094 | |||
Accrued liabilities | 79,832 | 76,796 | 76,752 | |||
Unearned revenue | 30,185 | 25,832 | 28,759 | |||
Current portion of long-term debt | 295,282 | 328,384 | 393,065 | |||
Current obligations related to finance leases | 70,955 | 70,455 | 69,982 | |||
Current portion of operating lease liabilities | 13,681 | 13,524 | 13,407 | |||
Current portion of derivative liabilities | 34,997 | 66,852 | 38,458 | |||
Advances from affiliates | 18,271 | 8,372 | 7,003 | |||
Total current liabilities | 547,473 | 591,848 | 632,520 | |||
Long-term debt | 1,263,202 | 1,356,766 | 1,438,331 | |||
Long-term obligations related to finance leases | 1,305,056 | 1,323,069 | 1,340,922 | |||
Long-term operating lease liabilities | 13,887 | 17,357 | 20,750 | |||
Derivative liabilities | 88,336 | 96,453 | 51,006 | |||
Other long-term liabilities | 52,635 | 53,460 | 49,182 | |||
Total liabilities | 3,270,589 | 3,438,953 | 3,532,711 | |||
Equity | ||||||
Limited partners – common units | 1,447,690 | 1,425,960 | 1,543,598 | |||
Limited partners – preferred units | 285,159 | 285,159 | 285,159 | |||
General partner | 45,868 | 47,839 | 50,241 | |||
Accumulated other comprehensive loss | (116,313 | ) | (108,457 | ) | (57,312 | ) |
Partners' equity | 1,662,404 | 1,650,501 | 1,821,686 | |||
Non-controlling interest | 56,083 | 52,050 | 55,289 | |||
Total equity | 1,718,487 | 1,702,551 | 1,876,975 | |||
Total liabilities and total equity | 4,989,076 | 5,141,504 | 5,409,686 |
Six Months Ended | ||||
June 30, | June 30, | |||
2020 | 2019 | |||
(unaudited) | (unaudited) | |||
Cash and cash equivalents provided by (used for) | ||||
OPERATING ACTIVITIES | ||||
Net income | 18,455 | 43,177 | ||
Non-cash and non-operating items: | ||||
Unrealized loss on non-designated derivative instruments | 22,173 | 9,666 | ||
Depreciation and amortization | 64,268 | 69,464 | ||
Write-down of vessels | 45,000 | — | ||
Unrealized foreign currency exchange loss including the effect of the settlement of cross currency swaps | 3,660 | 4,727 | ||
Equity income, net of dividends received $14,852 (2019 – $17,274) | (17,676 | ) | 9,958 | |
Amortization of deferred financing issuance costs included in interest expense | 3,001 | 5,170 | ||
Other non-cash items | 1,823 | 3,828 | ||
Change in non-cash operating assets and liabilities: | ||||
Receipts from direct financing and sales-type leases | 267,463 | 6,050 | ||
Expenditures for dry docking | (1,927 | ) | (6,335 | ) |
Other non-cash operating assets and liabilities | 17,621 | (28,827 | ) | |
Net operating cash flow | 423,861 | 116,878 | ||
FINANCING ACTIVITIES | ||||
Proceeds from issuance of long-term debt | 446,650 | 126,263 | ||
Scheduled repayments of long-term debt and settlement of related swaps | (194,831 | ) | (66,310 | ) |
Prepayments of long-term debt | (525,021 | ) | (168,787 | ) |
Financing issuance costs | (2,601 | ) | (989 | ) |
Proceeds from financing related to sales and leaseback of vessels | — | 158,680 | ||
Scheduled repayments of obligations related to finance leases | (34,893 | ) | (33,855 | ) |
Repurchase of common units | (15,635 | ) | (12,056 | ) |
Cash distributions paid | (47,295 | ) | (39,315 | ) |
Acquisition of non-controlling interest in certain of the Partnership's subsidiaries | (2,219 | ) | — | |
Dividends paid to non-controlling interest | — | (55 | ) | |
Net financing cash flow | (375,845 | ) | (36,424 | ) |
INVESTING ACTIVITIES | ||||
Expenditures for vessels and equipment | (8,832 | ) | (82,575 | ) |
Capital contributions and advances to equity-accounted joint ventures | — | (15,555 | ) | |
Net investing cash flow | (8,832 | ) | (98,130 | ) |
Increase (decrease) in cash, cash equivalents and restricted cash | 39,184 | (17,676 | ) | |
Cash, cash equivalents and restricted cash, beginning of the period | 253,291 | 222,864 | ||
Cash, cash equivalents and restricted cash, end of the period | 292,475 | 205,188 |
Three Months Ended | ||||
June 30, | ||||
2020 | 2019 | |||
(unaudited) | (unaudited) | |||
Net income – GAAP basis | 49,283 | 19,052 | ||
Less: Net income attributable to non-controlling interests | (4,349 | ) | (2,617 | ) |
Net income attributable to the partners and preferred unitholders | 44,934 | 16,435 | ||
Add (subtract) specific items affecting net income: | ||||
Restructuring charges(1) | — | 818 | ||
Foreign currency exchange loss(2) | 10,194 | 6,068 | ||
Unrealized losses on non-designated derivative instruments and other items from equity-accounted investees(3) | 3,745 | 6,226 | ||
Unrealized losses on non-designated derivative instruments(4) | 4,854 | 5,434 | ||
Other items | (1,619 | ) | — | |
Non-controlling interests’ share of items above(5) | 535 | (546 | ) | |
Total adjustments | 17,709 | 18,000 | ||
Adjusted net income attributable to the partners and preferred unitholders | 62,643 | 34,435 | ||
Preferred unitholders' interest in adjusted net income | 6,425 | 6,425 | ||
General partner's interest in adjusted net income | 1,044 | 560 | ||
Limited partners’ interest in adjusted net income | 55,174 | 27,450 | ||
Limited partners’ interest in adjusted net income per common unit, basic | 0.67 | 0.35 | ||
Weighted-average number of common units outstanding, basic | 82,197,665 | 78,603,636 |
(1) | See Note 2 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(2) | Foreign currency exchange loss 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 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 5 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(3) | Reflects the proportionate share of unrealized losses due to changes in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes and unrealized credit loss provision in the Partnership's equity-accounted investees. See Note 3 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(4) | Reflects the unrealized losses due to changes in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes. See Note 4 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(5) | Items affecting net income (loss) include items from the Partnership’s consolidated non-wholly-owned subsidiaries. The specific items affecting net income (loss) 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, | |||||
2020 | 2019 | ||||
(unaudited) | (unaudited) | ||||
Net income | 49,283 | 19,052 | |||
Add: | |||||
Partnership’s share of equity-accounted joint ventures' DCF net of estimated maintenance capital expenditures(1) | 42,725 | 16,056 | |||
Depreciation and amortization | 31,629 | 35,338 | |||
Foreign currency exchange loss | 10,194 | 6,068 | |||
Unrealized loss on non-designated derivative instruments | 4,854 | 5,434 | |||
Direct finance and sale-type lease payments received in excess of revenue recognized and other adjustments | 3,392 | 4,037 | |||
Deferred income tax and other non-cash items | 531 | 116 | |||
Distributions relating to equity financing of newbuildings | — | 1,099 | |||
Less: | |||||
Distributions relating to preferred units | (6,425 | ) | (6,425 | ) | |
Estimated maintenance capital expenditures | (14,513 | ) | (17,397 | ) | |
Equity income | (32,155 | ) | (1,738 | ) | |
Distributable Cash Flow before non-controlling interest | 89,515 | 61,640 | |||
Non-controlling interests’ share of DCF before estimated maintenance capital expenditures | (6,345 | ) | (5,310 | ) | |
Distributable Cash Flow | 83,170 | 56,330 | |||
Amount of cash distributions attributable to the General Partner | (411 | ) | (304 | ) | |
Limited partners' Distributable Cash Flow | 82,759 | 56,026 | |||
Weighted-average number of common units outstanding, basic | 82,197,665 | 78,603,636 | |||
Distributable Cash Flow per limited partner common unit | 1.03 | 0.71 |
(1) | The estimated maintenance capital expenditures relating to the Partnership’s share of equity-accounted joint ventures were $15.2 million and $10.8 million for the three months ended June 30, 2020 and 2019, respectively. |
Three Months Ended | ||||
June 30, | ||||
2020 | 2019 | |||
(unaudited) | (unaudited) | |||
Voyage revenues | 148,205 | 153,060 | ||
Partnership's proportionate share of voyage revenues from its equity-accounted joint ventures (See Appendix E) | 111,365 | 73,391 | ||
Less the Partnership’s proportionate share of voyage revenues earned directly from its equity-accounted joint ventures | (5,569 | ) | (4,525 | ) |
Total adjusted revenues | 254,001 | 221,926 |
Three Months Ended | ||||
June 30, | ||||
2020 | 2019 | |||
(unaudited) | (unaudited) | |||
Net income | 49,283 | 19,052 | ||
Depreciation and amortization | 31,629 | 35,338 | ||
Interest expense, net of interest income | 33,446 | 40,058 | ||
Income tax (recovery) expense | (1,804 | ) | 1,749 | |
EBITDA | 112,554 | 96,197 | ||
Add (subtract) specific income statement items affecting EBITDA: | ||||
Foreign currency exchange loss | 11,624 | 7,243 | ||
Other expense | 679 | 487 | ||
Equity income | (32,155 | ) | (1,738 | ) |
Realized and unrealized loss on derivative instruments | 8,516 | 7,826 | ||
Direct finance and sale-type lease payments received in excess of revenue recognized and other adjustments | 3,392 | 4,037 | ||
Consolidated adjusted EBITDA | 104,610 | 114,052 | ||
Adjusted EBITDA from equity-accounted vessels (See Appendix E) | 87,730 | 48,017 | ||
Total adjusted EBITDA | 192,340 | 162,069 |
Three Months Ended June 30, 2020 | ||||||||
(unaudited) | ||||||||
Liquefied Natural Gas Segment | Liquefied Petroleum Gas Segment | Conventional Tanker Segment | Total | |||||
Voyage revenues | 137,822 | 10,383 | — | 148,205 | ||||
Voyage expenses | (806 | ) | (4,523 | ) | — | (5,329 | ) | |
Vessel operating expenses | (24,599 | ) | (3,808 | ) | — | (28,407 | ) | |
Time-charter hire expense | (5,368 | ) | — | — | (5,368 | ) | ||
Depreciation and amortization | (30,566 | ) | (1,063 | ) | — | (31,629 | ) | |
General and administrative expenses | (7,251 | ) | (632 | ) | — | (7,883 | ) | |
Income from vessel operations | 69,232 | 357 | — | 69,589 | ||||
Depreciation and amortization | 30,566 | 1,063 | — | 31,629 | ||||
Direct finance and sales-type lease payments received in excess of revenue recognized and other adjustments | 3,392 | — | — | 3,392 | ||||
Consolidated adjusted EBITDA | 103,190 | 1,420 | — | 104,610 | ||||
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 and sales-type 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, 2020 | June 30, 2019 | |||||||
(unaudited) | (unaudited) | |||||||
At | Partnership's | At | Partnership's | |||||
100% | Portion(1) | 100% | Portion(1) | |||||
Voyage revenues | 258,426 | 111,365 | 172,632 | 73,391 | ||||
Voyage expenses | (1,360 | ) | (638 | ) | (4,502 | ) | (2,196 | ) |
Vessel operating expenses, time-charter hire expenses and general and administrative expenses | (72,316 | ) | (31,551 | ) | (63,879 | ) | (27,992 | ) |
Depreciation and amortization | (25,123 | ) | (12,530 | ) | (28,551 | ) | (13,741 | ) |
Income from vessel operations of equity-accounted vessels | 159,627 | 66,646 | 75,700 | 29,462 | ||||
Net interest expense | (73,082 | ) | (29,351 | ) | (52,929 | ) | (21,254 | ) |
Income tax recovery (expense) | 225 | 110 | (670 | ) | (246 | ) | ||
Other items including realized and unrealized losses on derivative instruments and unrealized credit loss provision(2) | (17,786 | ) | (5,250 | ) | (18,764 | ) | (6,224 | ) |
Net income / equity income of equity-accounted vessels | 68,984 | 32,155 | 3,337 | 1,738 | ||||
Net income / equity income of equity-accounted LNG vessels | 60,105 | 27,795 | 6,455 | 3,377 | ||||
Net income (loss) / equity income (loss) of equity-accounted LPG vessels | 8,879 | 4,360 | (3,118 | ) | (1,639 | ) | ||
Net income / equity income of equity-accounted vessels | 68,984 | 32,155 | 3,337 | 1,738 | ||||
Depreciation and amortization | 25,123 | 12,530 | 28,551 | 13,741 | ||||
Net interest expense | 73,082 | 29,351 | 52,929 | 21,254 | ||||
Income tax recovery (expense) | (225 | ) | (110 | ) | 670 | 246 | ||
EBITDA from equity-accounted vessels | 166,964 | 73,926 | 85,487 | 36,979 | ||||
Add (subtract) specific income statement items affecting EBITDA: | ||||||||
Other items including realized and unrealized losses on derivative instruments and unrealized credit loss provision | 17,786 | 5,250 | 18,764 | 6,224 | ||||
Direct finance and sale-type lease payments received in excess of revenue recognized | 26,381 | 9,499 | 16,131 | 5,759 | ||||
Amortization of in-process contracts | (1,738 | ) | (945 | ) | (1,736 | ) | (945 | ) |
Adjusted EBITDA from equity-accounted vessels | 209,393 | 87,730 | 118,646 | 48,017 | ||||
Adjusted EBITDA from equity-accounted LNG vessels | 185,577 | 75,824 | 102,799 | 40,095 | ||||
Adjusted EBITDA from equity-accounted LPG vessels | 23,816 | 11,906 | 15,847 | 7,922 |
(1) | The Partnership's equity-accounted vessels for the three months ended June 30, 2020 and 2019 include: the Partnership’s 40 percent ownership interest in Teekay Nakilat (III) Corporation, which owns four LNG carriers; the Partnership’s 50 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 MALT Joint Venture, which owns six LNG carriers; the Partnership’s 50 percent ownership interest in Exmar LPG BVBA, which owns and in-charters 23 LPG carriers as at June 30, 2020, compared to 22 owned and in-chartered LPG carriers as at June 30, 2019; the Partnership’s ownership interest ranging from 20 to 30 percent in four LNG carriers as at June 30, 2020 chartered to Shell (the Pan Union Joint Venture); the Partnership’s 50 percent ownership interest in six ARC7 LNG carriers in the Yamal LNG Joint Venture as at June 30, 2020, compared to three ARC7 LNG carriers and three ARC7 LNG carrier newbuildings as at June 30, 2019; and the Partnership's 30 percent ownership interest in the Bahrain LNG Joint Venture, which owns an LNG receiving and regasification terminal in Bahrain. |
(2) | Unrealized credit losses relate to the Partnership's adoption of ASC 326 on January 1, 2020. |
As at June 30, 2020 | As at December 31, 2019 | |||||||
(unaudited) | (unaudited) | |||||||
At | Partnership's | At | Partnership's | |||||
100% | Portion(1) | 100% | Portion(1) | |||||
Cash and restricted cash, current and non-current | 552,035 | 230,274 | 509,065 | 210,736 | ||||
Other current assets | 85,740 | 34,986 | 62,566 | 27,719 | ||||
Property, plant and equipment, including owned vessels, vessels related to finance leases and operating lease right-of-use assets | 2,020,188 | 1,031,717 | 3,112,349 | 1,375,570 | ||||
Net investments in sales-type and direct financing leases, current and non-current | 5,464,583 | 2,107,966 | 4,589,139 | 1,856,709 | ||||
Other non-current assets | 68,602 | 45,075 | 50,967 | 41,015 | ||||
Total assets | 8,191,148 | 3,450,018 | 8,324,086 | 3,511,749 | ||||
Current portion of long-term debt and obligations related to finance leases and operating leases | 548,893 | 250,659 | 315,247 | 136,573 | ||||
Current portion of derivative liabilities | 65,839 | 26,967 | 34,618 | 13,658 | ||||
Other current liabilities | 143,828 | 57,774 | 153,816 | 66,224 | ||||
Long-term debt and obligations related to finance leases and operating leases | 4,661,614 | 1,865,877 | 5,026,123 | 2,041,595 | ||||
Shareholders' loans, current and non-current | 346,969 | 128,422 | 346,969 | 126,546 | ||||
Derivative liabilities | 327,015 | 131,459 | 162,640 | 66,060 | ||||
Other long-term liabilities | 62,864 | 31,139 | 64,196 | 32,323 | ||||
Equity | 2,034,126 | 957,721 | 2,220,477 | 1,028,770 | ||||
Total liabilities and equity | 8,191,148 | 3,450,018 | 8,324,086 | 3,511,749 | ||||
Investments in equity-accounted joint ventures | 957,721 | 1,028,770 | ||||||
Advances to equity-accounted joint ventures | 128,422 | 126,546 | ||||||
Credit loss provision(2) | (3,797 | ) | — | |||||
Investments in and advances to equity-accounted joint ventures | 1,082,346 | 1,155,316 |
(1) | The Partnership's equity-accounted vessels as at June 30, 2020 and December 31, 2019 include: the Partnership’s 40 percent ownership interest in Teekay Nakilat (III) Corporation, which owns four LNG carriers; the Partnership’s 50 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 MALT Joint Venture, which owns six LNG carriers; the Partnership’s 50 percent ownership interest in Exmar LPG BVBA, which owns and in-charters 23 LPG carriers; the Partnership’s ownership interest ranging from 20 percent to 30 percent in four LNG carriers as at June 30, 2020 chartered to Shell in the Pan Union Joint Venture; the Partnership’s 50 percent ownership interest in six ARC7 LNG carriers in the Yamal LNG Joint Venture; and the Partnership's 30 percent ownership interest in the Bahrain LNG Joint Venture, which owns an LNG receiving and regasification terminal in Bahrain. |
(2) | Unrealized credit losses relate to the Partnership's adoption of ASC 326 on January 1, 2020. |
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