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: February 22, 2018 | By: | /s/ Edith Robinson | |
Edith Robinson Secretary |
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• | Reported GAAP net income attributable to the partners and preferred unitholders of $39.9 million and adjusted net income attributable to the partners and preferred unitholders(1) of $34.0 million in the fourth quarter of 2017. |
• | Generated distributable cash flow(1) of $52.1 million, or $0.65 per common unit, in the fourth quarter of 2017. |
• | Since September 2017, the Partnership has taken delivery of three M-Type, Electronically Controlled, Gas Injection (MEGI) liquefied natural gas (LNG) carrier newbuildings and two 30 percent-owned LNG carrier newbuildings, all of which commenced their respective charter contracts with Royal Dutch Shell (Shell) ranging between six and 20 years in duration, plus extension options. |
• | Completed an $816 million(2) long-term debt facility to finance all six of the Partnership’s 50 percent-owned ARC7 LNG carrier newbuildings delivering through early-2020, the first of which delivered and immediately commenced its 28-year charter contract in January 2018 with Yamal Trade Pte Ltd. (Yamal LNG). |
• | In January 2018, the Partnership sold its 50 percent ownership interest in the 2005-built S/S Excelsior for net proceeds of approximately $44 million after repaying outstanding debt obligations. |
• | In February 2018, the Partnership refinanced a 2018 loan maturity with a new $197 million long-term debt facility secured by two LNG carriers on long-term contracts. |
Three Months Ended | Year Ended | |||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||
(in thousands of U.S. Dollars) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||
GAAP FINANCIAL COMPARISON | ||||||||||
Voyage revenues | 126,307 | 104,285 | 100,774 | 432,676 | 396,444 | |||||
Income from vessel operations | 62,378 | 10,322 | 38,010 | 148,649 | 153,181 | |||||
Equity income | 2,992 | 1,417 | 9,728 | 9,789 | 62,307 | |||||
Net income (loss) attributable to the partners and preferred unitholders | 39,877 | (18,896 | ) | 84,411 | 33,965 | 140,451 | ||||
NON-GAAP FINANCIAL COMPARISON | ||||||||||
Total cash flow from vessel operations (CFVO) (1) | 126,833 | 107,254 | 114,534 | 449,550 | 480,063 | |||||
Distributable cash flow (DCF) (1) | 52,054 | 40,224 | 50,199 | 176,128 | 234,995 | |||||
Adjusted net income attributable to the partners and preferred unitholders (1) | 33,972 | 20,925 | 28,958 | 93,850 | 148,982 |
(2) | Based on the Partnership’s 50 percent ownership interests in the six ARC7 LNG carrier newbuildings. |
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(1) | Based on the Partnership’s 50 percent ownership interests in the six ARC7 LNG carrier newbuildings. |
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Three Months Ended | ||||||||||||
December 31, 2017 | December 31, 2016 | |||||||||||
(in thousands of U.S. Dollars) | (unaudited) | (unaudited) | ||||||||||
Liquefied Gas Segment | Conventional Tanker Segment | Total | Liquefied Gas Segment | Conventional Tanker Segment | Total | |||||||
GAAP FINANCIAL COMPARISON | ||||||||||||
Voyage revenues | 114,605 | 11,702 | 126,307 | 86,188 | 14,586 | 100,774 | ||||||
Income (loss) from vessel operations | 60,395 | 1,983 | 62,378 | 43,918 | (5,908 | ) | 38,010 | |||||
Equity income | 2,992 | — | 2,992 | 9,728 | — | 9,728 | ||||||
NON-GAAP FINANCIAL COMPARISON | ||||||||||||
CFVO from consolidated vessels(i) | 86,667 | 4,122 | 90,789 | 70,889 | 7,490 | 78,379 | ||||||
CFVO from equity-accounted vessels(i) | 36,044 | — | 36,044 | 36,155 | — | 36,155 | ||||||
Total CFVO(i) | 122,711 | 4,122 | 126,833 | 107,044 | 7,490 | 114,534 |
(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. |
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Number of Vessels | |||
Owned and In-Chartered Vessels(i) | Newbuildings | Total | |
LNG Carrier Fleet | 37(ii) | 12(iii) | 49 |
LPG/Multigas Carrier Fleet | 26(iv) | 3(v) | 29 |
Conventional Tanker Fleet | 4(vi) | — | 4 |
Total | 67 | 15 | 82 |
(i) | Owned vessels includes vessels accounted for as vessels related to capital leases. |
(ii) | The Partnership’s ownership interests in these vessels range from 30 percent to 100 percent. |
(iii) | The Partnership's ownership interests in these newbuildings, which includes a floating storage unit (FSU), range from 20 percent to 100 percent. |
(iv) | The Partnership’s ownership interests in these vessels range from 50 percent to 99 percent. |
(v) | The Partnership’s ownership interests in these newbuildings is 50 percent. |
(vi) | Two of the Partnership's conventional tankers are held for sale. |
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▪ | By dialing (866) 548-4713 or (647) 484-0477, if outside North America, and quoting conference ID code 1441937. |
▪ | 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). |
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Three Months Ended | Year Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Voyage revenues | 126,307 | 104,285 | 100,774 | 432,676 | 396,444 | |||||
Voyage expenses | (4,303 | ) | (1,466 | ) | (302 | ) | (8,202 | ) | (1,656 | ) |
Vessel operating expenses | (27,026 | ) | (26,724 | ) | (22,270 | ) | (103,139 | ) | (88,590 | ) |
Depreciation and amortization | (27,651 | ) | (24,980 | ) | (25,021 | ) | (105,545 | ) | (95,542 | ) |
General and administrative expenses | (4,949 | ) | (2,793 | ) | (3,634 | ) | (16,541 | ) | (18,499 | ) |
Write-down and loss on sales of vessels(1) | — | (38,000 | ) | (11,537 | ) | (50,600 | ) | (38,976 | ) | |
Income from vessel operations | 62,378 | 10,322 | 38,010 | 148,649 | 153,181 | |||||
Equity income(2) | 2,992 | 1,417 | 9,728 | 9,789 | 62,307 | |||||
Interest expense | (23,333 | ) | (20,091 | ) | (15,934 | ) | (80,937 | ) | (58,844 | ) |
Interest income | 880 | 602 | 783 | 2,915 | 2,583 | |||||
Realized and unrealized gain (loss) on non-designated derivative instruments(3) | 3,066 | (2,178 | ) | 43,245 | (5,309 | ) | (7,161 | ) | ||
Foreign currency exchange (loss) gain(4) | (2,436 | ) | (5,104 | ) | 15,474 | (26,933 | ) | 5,335 | ||
Other income | 424 | 356 | 314 | 1,561 | 1,537 | |||||
Net income (loss) before tax expense | 43,971 | (14,676 | ) | 91,620 | 49,735 | 158,938 | ||||
Income tax recovery (expense) | 319 | (750 | ) | (251 | ) | (824 | ) | (973 | ) | |
Net income (loss) | 44,290 | (15,426 | ) | 91,369 | 48,911 | 157,965 | ||||
Non-controlling interest in net income (loss) | 4,413 | 3,470 | 6,958 | 14,946 | 17,514 | |||||
Preferred unitholders' interest in net income (loss) | 5,541 | 2,813 | 2,719 | 13,979 | 2,719 | |||||
General Partner's interest in net income (loss) | 687 | (434 | ) | 1,634 | 400 | 2,755 | ||||
Limited partners’ interest in net income (loss) | 33,649 | (21,275 | ) | 80,058 | 19,586 | 134,977 | ||||
Weighted-average number of common units outstanding: | ||||||||||
• Basic | 79,626,819 | 79,626,819 | 79,571,820 | 79,617,778 | 79,568,352 | |||||
• Diluted | 79,839,231 | 79,626,819 | 79,705,854 | 79,791,041 | 79,671,858 | |||||
Total number of common units outstanding at end of period | 79,626,819 | 79,626,819 | 79,571,820 | 79,626,819 | 79,571,820 |
(1) | The write-down and loss on sales of vessels for the three months ended September 30, 2017 and year ended December 31, 2017 includes impairment charges on the African Spirit, Teide Spirit and Toledo Spirit Suezmax tankers. The charterer for the African Spirit notified the Partnership in August 2017 that it would redeliver the vessel to the Partnership upon its charter contract ending in November 2017, which resulted in a write-down of the vessel to its estimated market value. The African Spirit was redelivered to the Partnership in November 2017. The charterer for the Teide Spirit and Toledo Spirit, who is also the owner of these vessels, has the option to cancel the charter contracts 13 years following commencement of the respective charter contracts. In October 2017, the charterer notified the Partnership that it was marketing the Teide Spirit for sale and subsequently, sold the vessel on February 8, 2018. Upon sale of the vessel, the charterer concurrently terminated its charter contract with the Partnership. The charterer’s cancellation option for the Toledo Spirit is first exercisable in August 2018. Given the Partnership's prior experience with this charterer, the Partnership expects the charterer will cancel the charter contract and sell the Toledo Spirit to a third party in 2018. As a result, the Partnership wrote down the Teide Spirit and Toledo Spirit to their estimated market values. The write-down and loss on sales of vessels for the year ended December 31, 2017 also includes the write-down of the European Spirit Suezmax tanker to its estimated market value, as the Partnership commenced marketing the vessel for sale upon receiving notification from the charterer in late-June 2017 that it would redeliver the vessel back to the Partnership in August 2017. The write-down and loss on sales of vessels for the year ended December 31, 2016 relates to Centrofin Management Inc. exercising its purchase options, under the 12-year charter contracts, to acquire the Bermuda Spirit and Hamilton Spirit Suezmax tankers. In addition, the write-down and loss on sales of vessels for the three months ended December 31, 2016 includes the write-down of the Asian Spirit upon the Partnership reaching an agreement to sell the vessel in November 2016. |
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(2) | 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 evaluate the financial performance of the Partnership’s equity-accounted investments. Adjusted equity income is a non-GAAP financial measure. |
Three Months Ended | Year Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||
Equity income | 2,992 | 1,417 | 9,728 | 9,789 | 62,307 | |||||
Proportionate share of unrealized (gain) loss on non-designated derivative instruments | (4,404 | ) | (1,485 | ) | (8,078 | ) | (7,491 | ) | (6,963 | ) |
Proportionate share of ineffective portion of hedge-accounted interest rate swaps | 566 | 968 | (364 | ) | 5,100 | (372 | ) | |||
Proportionate share of write-down and loss on sales of vessels | 5,500 | — | 4,861 | 5,500 | 4,861 | |||||
Proportionate share of other items | 191 | 219 | 1,162 | 651 | 1,317 | |||||
Equity income adjusted for items in Appendix A | 4,845 | 1,119 | 7,309 | 13,549 | 61,150 |
(3) | 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 gains (losses) 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 | Year Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||
Realized (losses) gains relating to: | ||||||||||
Interest rate swap agreements | (5,012 | ) | (4,528 | ) | (6,190 | ) | (18,825 | ) | (25,940 | ) |
Interest rate swaption agreements termination | — | — | — | (610 | ) | — | ||||
Toledo Spirit time-charter derivative contract | 152 | 646 | (1,274 | ) | 678 | (654 | ) | |||
(4,860 | ) | (3,882 | ) | (7,464 | ) | (18,757 | ) | (26,594 | ) | |
Unrealized gains (losses) relating to: | ||||||||||
Interest rate swap agreements | 8,182 | 1,775 | 34,068 | 12,393 | 15,627 | |||||
Interest rate swaption agreements | 518 | 285 | 16,601 | 945 | (164 | ) | ||||
Toledo Spirit time-charter derivative contract | (774 | ) | (356 | ) | 40 | 110 | 3,970 | |||
7,926 | 1,704 | 50,709 | 13,448 | 19,433 | ||||||
Total realized and unrealized gains (losses) on non-designated derivative instruments | 3,066 | (2,178 | ) | 43,245 | (5,309 | ) | (7,161 | ) |
(4) | 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 | Year Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||
Realized losses on cross-currency swaps | (2,125 | ) | (1,598 | ) | (2,160 | ) | (9,344 | ) | (9,063 | ) |
Realized losses on cross-currency swaps termination | — | — | (17,711 | ) | (25,733 | ) | (17,711 | ) | ||
Realized gains on repurchase of NOK bonds | — | — | 16,782 | 25,733 | 16,782 | |||||
Unrealized (losses) gains on cross-currency swaps | (9,081 | ) | 20,523 | (6,053 | ) | 49,047 | 28,905 | |||
Unrealized gains (losses) on revaluation of NOK bonds | 7,760 | (17,906 | ) | 12,644 | (47,076 | ) | (18,967 | ) |
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As at December 31, | As at September 30, | As at December 31, | ||||
2017 | 2017 | 2016 | ||||
(unaudited) | (unaudited) | (unaudited) | ||||
ASSETS | ||||||
Current | ||||||
Cash and cash equivalents | 244,241 | 161,008 | 126,146 | |||
Restricted cash – current | 22,326 | 21,386 | 10,145 | |||
Accounts receivable | 26,054 | 22,079 | 25,224 | |||
Prepaid expenses | 6,539 | 4,345 | 3,724 | |||
Vessels held for sale | 33,671 | 17,000 | 20,580 | |||
Current portion of derivative assets | 1,078 | 1,759 | 531 | |||
Current portion of net investments in direct financing leases | 9,884 | 9,683 | 150,342 | |||
Advances to affiliates | 7,300 | 9,245 | 9,739 | |||
Total current assets | 351,093 | 246,505 | 346,431 | |||
Restricted cash – long-term | 72,868 | 71,626 | 106,882 | |||
Vessels and equipment | ||||||
At cost, less accumulated depreciation | 1,416,381 | 1,316,234 | 1,374,128 | |||
Vessels related to capital leases, at cost, less accumulated depreciation | 1,044,838 | 643,973 | 484,253 | |||
Advances on newbuilding contracts | 444,493 | 492,800 | 357,602 | |||
Total vessels and equipment | 2,905,712 | 2,453,007 | 2,215,983 | |||
Investment in and advances to equity-accounted joint ventures | 1,094,596 | 1,114,709 | 1,037,726 | |||
Net investments in direct financing leases | 486,106 | 624,122 | 492,666 | |||
Other assets | 6,043 | 1,440 | 5,529 | |||
Derivative assets | 6,172 | 9,324 | 4,692 | |||
Intangible assets – net | 61,078 | 63,293 | 69,934 | |||
Goodwill – liquefied gas segment | 35,631 | 35,631 | 35,631 | |||
Total assets | 5,019,299 | 4,619,657 | 4,315,474 | |||
LIABILITIES AND EQUITY | ||||||
Current | ||||||
Accounts payable | 3,509 | 2,240 | 5,562 | |||
Accrued liabilities | 40,257 | 38,056 | 35,881 | |||
Unearned revenue | 25,873 | 20,283 | 16,998 | |||
Current portion of long-term debt | 552,404 | 516,232 | 188,511 | |||
Current obligations related to capital leases | 106,946 | 108,592 | 40,353 | |||
Current portion of in-process contracts | 7,946 | 9,050 | 15,833 | |||
Current portion of derivative liabilities | 79,139 | 69,964 | 56,800 | |||
Advances from affiliates | 12,140 | 9,864 | 15,492 | |||
Total current liabilities | 828,214 | 774,281 | 375,430 | |||
Long-term debt | 1,245,588 | 1,380,175 | 1,602,715 | |||
Long-term obligations related to capital leases | 904,603 | 595,674 | 352,486 | |||
Long-term unearned revenue | — | 9,358 | 10,332 | |||
Other long-term liabilities | 57,594 | 58,432 | 60,573 | |||
In-process contracts | 580 | 2,418 | 8,233 | |||
Derivative liabilities | 45,797 | 59,312 | 128,293 | |||
Total liabilities | 3,082,376 | 2,879,650 | 2,538,062 | |||
Equity | ||||||
Limited partners – common units | 1,539,248 | 1,516,634 | 1,563,852 | |||
Limited partners – preferred units | 290,659 | 123,520 | 123,426 | |||
General partner | 50,152 | 49,690 | 50,653 | |||
Accumulated other comprehensive income | 4,479 | 1,747 | 575 | |||
Partners' equity | 1,884,538 | 1,691,591 | 1,738,506 | |||
Non-controlling interest | 52,385 | 48,416 | 38,906 | |||
Total equity | 1,936,923 | 1,740,007 | 1,777,412 | |||
Total liabilities and total equity | 5,019,299 | 4,619,657 | 4,315,474 |
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Year Ended | ||||
December 31, | December 31, | |||
2017 | 2016 | |||
(unaudited) | (unaudited) | |||
Cash and cash equivalents provided by (used for) | ||||
OPERATING ACTIVITIES | ||||
Net income | 48,911 | 157,965 | ||
Non-cash items: | ||||
Unrealized gain on non-designated derivative instruments | (13,448 | ) | (19,433 | ) |
Depreciation and amortization | 105,545 | 95,542 | ||
Write-down and loss on sales of vessels | 50,600 | 38,976 | ||
Unrealized foreign currency exchange gain and other | (10,257 | ) | (42,009 | ) |
Equity income, net of dividends received of $42,692 (2016 – $31,113) | 32,903 | (31,194 | ) | |
Change in operating assets and liabilities | 1,853 | (20,669 | ) | |
Expenditures for dry docking | (21,642 | ) | (12,686 | ) |
Net operating cash flow | 194,465 | 166,492 | ||
FINANCING ACTIVITIES | ||||
Proceeds from issuance of long-term debt | 362,527 | 573,514 | ||
Scheduled repayments of long-term debt | (168,504 | ) | (316,450 | ) |
Prepayments of long-term debt | (236,474 | ) | (463,422 | ) |
Financing issuance costs | (8,361 | ) | (3,462 | ) |
Proceeds from financing related to sales and leaseback of vessels | 656,935 | 355,306 | ||
Scheduled repayments of obligations related to capital leases | (42,000 | ) | (21,594 | ) |
Proceeds from equity offerings, net of offering costs | 164,411 | 120,707 | ||
Decrease in restricted cash | 20,385 | 4,651 | ||
Cash distributions paid | (56,650 | ) | (45,467 | ) |
Dividends paid to non-controlling interest | (1,595 | ) | (3,402 | ) |
Other | (605 | ) | — | |
Net financing cash flow | 690,069 | 200,381 | ||
INVESTING ACTIVITIES | ||||
Capital contributions to equity-accounted joint ventures | (183,874 | ) | (120,879 | ) |
Return of capital from equity-accounted joint ventures | 92,320 | 5,500 | ||
Receipts from direct financing leases | 13,143 | 23,650 | ||
Proceeds from sales of vessels | 20,580 | 94,311 | ||
Expenditures for vessels and equipment | (708,608 | ) | (345,790 | ) |
Net investing cash flow | (766,439 | ) | (343,208 | ) |
Increase in cash and cash equivalents | 118,095 | 23,665 | ||
Cash and cash equivalents, beginning of the year | 126,146 | 102,481 | ||
Cash and cash equivalents, end of the year | 244,241 | 126,146 |
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Three Months Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2017 | 2016 | 2017 | 2016 | |||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||
Net income – GAAP basis | 44,290 | 91,369 | 48,911 | 157,965 | ||||
Less: Net income attributable to non-controlling interests | (4,413 | ) | (6,958 | ) | (14,946 | ) | (17,514 | ) |
Net income attributable to the partners and preferred unitholders | 39,877 | 84,411 | 33,965 | 140,451 | ||||
Add (subtract) specific items affecting net income: | ||||||||
Write-down and loss on sales of vessels(1) | — | 11,537 | 50,600 | 38,976 | ||||
Unrealized foreign currency exchange losses (gains)(2) | 58 | (17,783 | ) | 17,493 | (14,699 | ) | ||
Unrealized (gains) losses on non-designated and designated derivative instruments and other items from equity-accounted investees(3) | 1,853 | (2,419 | ) | 3,760 | (19,433 | ) | ||
Unrealized gains on non-designated derivative instruments(4) | (7,926 | ) | (50,709 | ) | (13,448 | ) | (1,157 | ) |
Ineffective portion on qualifying cash flow hedging instruments included in interest expense | (15 | ) | (1,044 | ) | 740 | — | ||
Other items(5) | (926 | ) | 1,215 | (316 | ) | 1,215 | ||
Non-controlling interests’ share of items above(6) | 1,051 | 3,750 | 1,056 | 3,629 | ||||
Total adjustments | (5,905 | ) | (55,453 | ) | 59,885 | 8,531 | ||
Adjusted net income attributable to the partners and preferred unitholders | 33,972 | 28,958 | 93,850 | 148,982 |
(1) | Write-down and loss on sale of vessels relate to the Partnership's impairment charges and sales of the African Spirit, Teide Spirit and Toledo Spirit during 2017 and the Bermuda Spirit, Hamilton Spirit and Asian Spirit during 2016. See Note 1 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(2) | Unrealized foreign exchange losses (gains) primarily relate to the Partnership’s revaluation of all foreign currency-denominated monetary assets and liabilities based on the prevailing exchange rate at the end of each reporting period and unrealized (gains) 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 4 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(3) | Reflects the unrealized (gains) losses due to changes in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes, any ineffectiveness for derivative instruments designated as hedges for accounting purposes, and write-down and loss on sales of vessels within the Partnership’s equity-accounted investments. See Note 2 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(4) | Reflects the unrealized gains due to changes in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes. See Note 3 to the Consolidated Statements of Income (Loss) included in this release for further details. |
(5) | Included in other items are deferred income tax expense (recovery), loss upon termination of interest rate swaption agreements and other items. |
(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 listed 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. |
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Three Months Ended | Year Ended | ||||||||
December 31, | December 31, | ||||||||
2017 | 2016 | 2017 | 2016 | ||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Net income: | 44,290 | 91,369 | 48,911 | 157,965 | |||||
Add: | |||||||||
Depreciation and amortization | 27,651 | 25,021 | 105,545 | 95,542 | |||||
Partnership’s share of equity-accounted joint ventures' DCF net of estimated maintenance capital expenditures(1) | 13,719 | 16,335 | 48,616 | 92,747 | |||||
Distributions relating to equity financing of newbuildings | 3,844 | 1,685 | 8,676 | 1,685 | |||||
Direct finance lease payments received in excess of revenue recognized and other adjustments | 2,142 | 5,363 | 14,326 | 20,445 | |||||
Unrealized foreign currency exchange loss (gain) | 58 | (17,783 | ) | 17,493 | (14,699 | ) | |||
Write-down and loss on sales of vessels | — | 11,537 | 50,600 | 38,976 | |||||
Less: | |||||||||
Ineffective portion on qualifying cash flow hedging instruments included in interest expense | (15 | ) | (1,044 | ) | 740 | — | |||
Equity income | (2,992 | ) | (9,728 | ) | (9,789 | ) | (62,307 | ) | |
Deferred income tax and other non-cash items | (4,061 | ) | (1,529 | ) | (6,463 | ) | (3,414 | ) | |
Distributions relating to preferred units | (5,541 | ) | (2,719 | ) | (13,979 | ) | (2,719 | ) | |
Unrealized gain on non-designated derivative instruments | (7,926 | ) | (50,709 | ) | (13,448 | ) | (19,433 | ) | |
Estimated maintenance capital expenditures | (14,265 | ) | (12,212 | ) | (53,315 | ) | (48,221 | ) | |
Distributable Cash Flow before Non-controlling interest | 56,904 | 55,586 | 197,913 | 256,567 | |||||
Non-controlling interests’ share of DCF before estimated maintenance capital expenditures | (4,850 | ) | (5,387 | ) | (21,785 | ) | (21,572 | ) | |
Distributable Cash Flow | 52,054 | 50,199 | 176,128 | 234,995 | |||||
Amount of cash distributions attributable to the General Partner | (226 | ) | (229 | ) | (909 | ) | (910 | ) | |
Limited partners' Distributable Cash Flow | 51,828 | 49,970 | 175,219 | 234,085 | |||||
Weighted-average number of common units outstanding | 79,626,819 | 79,571,820 | 79,617,778 | 79,568,352 | |||||
Distributable Cash Flow per limited partner common unit | 0.65 | 0.63 | 2.20 | 2.94 |
(1) | The estimated maintenance capital expenditures relating to the Partnership’s share of equity-accounted joint ventures were $8.4 million and $7.8 million for the three months ended December 31, 2017 and 2016, respectively, and $32.5 million and $30.3 million for the year ended December 31, 2017 and 2016, respectively. |
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Three Months Ended December 31, 2017 | ||||||
(unaudited) | ||||||
Liquefied Gas Segment | Conventional Tanker Segment | Total | ||||
Voyage revenues | 114,605 | 11,702 | 126,307 | |||
Voyage expenses | (1,356 | ) | (2,947 | ) | (4,303 | ) |
Vessel operating expenses | (22,717 | ) | (4,309 | ) | (27,026 | ) |
Depreciation and amortization | (25,386 | ) | (2,265 | ) | (27,651 | ) |
General and administrative expenses | (4,751 | ) | (198 | ) | (4,949 | ) |
Income from vessel operations | 60,395 | 1,983 | 62,378 | |||
Three Months Ended December 31, 2016 | ||||||
(unaudited) | ||||||
Liquefied Gas Segment | Conventional Tanker Segment | Total | ||||
Voyage revenues | 86,188 | 14,586 | 100,774 | |||
Voyage expenses | (31 | ) | (271 | ) | (302 | ) |
Vessel operating expenses | (17,370 | ) | (4,900 | ) | (22,270 | ) |
Depreciation and amortization | (21,608 | ) | (3,413 | ) | (25,021 | ) |
General and administrative expenses | (3,261 | ) | (373 | ) | (3,634 | ) |
Write-down and loss on sales of vessels | — | (11,537 | ) | (11,537 | ) | |
Income (loss) from vessel operations | 43,918 | (5,908 | ) | 38,010 |
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Three Months Ended December 31, 2017 | Year Ended December 31, 2017 | |||||||
(unaudited) | (unaudited) | |||||||
Liquefied Gas Segment | Conventional Tanker Segment | Total | Total | |||||
Income from vessel operations (See Appendix C) | 60,395 | 1,983 | 62,378 | 148,649 | ||||
Depreciation and amortization | 25,386 | 2,265 | 27,651 | 105,545 | ||||
Write-down and loss on sales of vessels | — | — | — | 50,600 | ||||
Amortization of in-process contracts included in voyage revenues | (1,256 | ) | (278 | ) | (1,534 | ) | (3,785 | ) |
Direct finance lease payments received in excess of revenue recognized and other adjustments | 2,142 | — | 2,142 | 14,326 | ||||
Realized gain on Toledo Spirit derivative contract | — | 152 | 152 | 678 | ||||
Cash flow from vessel operations from consolidated vessels | 86,667 | 4,122 | 90,789 | 316,013 | ||||
Three Months Ended December 31, 2016 | Year Ended December 31, 2016 | |||||||
(unaudited) | (unaudited) | |||||||
Liquefied Gas Segment | Conventional Tanker Segment | Total | Total | |||||
Income (loss) from vessel operations (See Appendix C) | 43,918 | (5,908 | ) | 38,010 | 153,181 | |||
Depreciation and amortization | 21,608 | 3,413 | 25,021 | 95,542 | ||||
Write-down and loss on sales of vessels | — | 11,537 | 11,537 | 38,976 | ||||
Amortization of in-process contracts included in voyage revenues | — | (278 | ) | (278 | ) | (2,202 | ) | |
Direct finance lease payments received in excess of revenue recognized | 5,363 | — | 5,363 | 20,445 | ||||
Realized loss on Toledo Spirit derivative contract | — | (1,274 | ) | (1,274 | ) | (654 | ) | |
Cash flow adjustment for two Suezmax tankers | — | — | — | 1,966 | ||||
Cash flow from vessel operations from consolidated vessels | 70,889 | 7,490 | 78,379 | 307,254 |
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Three Months Ended | ||||||||
December 31, 2017 | December 31, 2016 | |||||||
(unaudited) | (unaudited) | |||||||
At | Partnership's | At | Partnership's | |||||
100% | Portion(1) | 100% | Portion(1) | |||||
Voyage revenues | 129,526 | 57,493 | 125,372 | 56,426 | ||||
Voyage expenses | (3,653 | ) | (1,862 | ) | (6,542 | ) | (3,329 | ) |
Vessel operating expenses and general and administrative expenses | (48,617 | ) | (22,372 | ) | (41,499 | ) | (19,076 | ) |
Depreciation and amortization | (27,950 | ) | (13,984 | ) | (28,244 | ) | (14,141 | ) |
Write-down and loss on sales of vessels | (11,000 | ) | (5,500 | ) | (9,721 | ) | (4,861 | ) |
Income from vessel operations of equity-accounted vessels | 38,306 | 13,775 | 39,366 | 15,019 | ||||
Other items, including interest expense and realized and unrealized gain (loss) on derivative instruments | (23,690 | ) | (10,783 | ) | (7,491 | ) | (5,291 | ) |
Net income / equity income of equity-accounted vessels | 14,616 | 2,992 | 31,875 | 9,728 | ||||
Income from vessel operations of equity-accounted vessels | 38,306 | 13,775 | 39,366 | 15,019 | ||||
Depreciation and amortization | 27,950 | 13,984 | 28,244 | 14,141 | ||||
Write-down and loss on sales of vessels | 11,000 | 5,500 | 9,721 | 4,861 | ||||
Direct finance lease payments received in excess of revenue recognized | 10,621 | 3,802 | 9,475 | 3,438 | ||||
Amortization of in-process revenue contracts | (1,950 | ) | (1,017 | ) | (2,541 | ) | (1,304 | ) |
Cash flow from vessel operations from equity-accounted vessels | 85,927 | 36,044 | 84,265 | 36,155 |
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Year Ended | ||||||||
December 31, 2017 | December 31, 2016 | |||||||
(unaudited) | (unaudited) | |||||||
At | Partnership's | At | Partnership's | |||||
100% | Portion(1) | 100% | Portion(1) | |||||
Voyage revenues | 478,908 | 213,574 | 553,461 | 252,677 | ||||
Voyage expenses | (16,689 | ) | (8,534 | ) | (20,051 | ) | (10,121 | ) |
Vessel operating expenses and general and administrative expenses | (175,898 | ) | (81,416 | ) | (166,841 | ) | (77,496 | ) |
Depreciation and amortization | (109,135 | ) | (54,453 | ) | (104,098 | ) | (52,095 | ) |
Write-down and loss on sales of vessels | (11,000 | ) | (5,500 | ) | (9,721 | ) | (4,861 | ) |
Income from vessel operations of equity-accounted vessels | 166,186 | 63,671 | 252,750 | 108,104 | ||||
Other items, including interest expense and realized and unrealized gain (loss) on derivative instruments | (124,342 | ) | (53,882 | ) | (100,992 | ) | (45,797 | ) |
Net income / equity income of equity-accounted vessels | 41,844 | 9,789 | 151,758 | 62,307 | ||||
Income from vessel operations of equity-accounted vessels | 166,186 | 63,671 | 252,750 | 108,104 | ||||
Depreciation and amortization | 109,135 | 54,453 | 104,098 | 52,095 | ||||
Write-down and loss on sales of vessels | 11,000 | 5,500 | 9,721 | 4,861 | ||||
Direct finance lease payments received in excess of revenue recognized | 39,368 | 14,220 | 36,462 | 13,231 | ||||
Amortization of in-process revenue contracts | (8,327 | ) | (4,307 | ) | (10,697 | ) | (5,482 | ) |
Cash flow from vessel operations from equity-accounted vessels | 317,362 | 133,537 | 392,334 | 172,809 |
(1) | The Partnership's equity-accounted vessels for the three months and year ended December 31, 2017 and 2016 include: the Partnership’s 40 percent ownership interest in Teekay Nakilat (III) Corporation, which owns four LNG carriers; the Partnership’s ownership interests of 49 percent and 50 percent, respectively, in the Excalibur and Excelsior joint ventures, which own one LNG carrier and one regasification unit, respectively; 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 23 vessels, including three newbuildings, as at December 31, 2017, compared to 23 vessels owned and in-chartered, including four newbuildings, as at December 31, 2016; the Partnership’s 30 percent ownership interest in one LNG carrier and one LNG carrier newbuilding as at December 31, 2017, compared to two LNG carrier newbuildings as at December 31, 2016, and the Partnership's 20 percent ownership interest in two LNG carrier newbuildings for Shell; the Partnership’s 50 percent ownership interest in six ARC7 LNG carrier newbuildings in the joint venture between the Partnership and China LNG Shipping (Holdings) Limited; and the Partnership's 30 percent ownership interest in Bahrain LNG W.L.L., which owns an LNG receiving and regasification terminal under construction in Bahrain. |
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As at December, 2017 | As at December 31, 2016 | |||||||
(unaudited) | (unaudited) | |||||||
At | Partnership's | At | Partnership's | |||||
100% | Portion(1) | 100% | Portion(1) | |||||
Cash and restricted cash, current and non-current | 295,148 | 128,004 | 400,090 | 167,813 | ||||
Current portion of derivative assets | 1,594 | 785 | 69 | 34 | ||||
Other current assets | 53,068 | 22,661 | 72,368 | 33,783 | ||||
Vessels and equipment, including vessels related to capital leases | 2,202,418 | 1,133,804 | 2,174,467 | 1,121,293 | ||||
Advances on newbuilding contracts | 1,211,210 | 450,523 | 824,534 | 303,162 | ||||
Net investments in direct financing leases, current and non-current | 2,013,759 | 722,408 | 1,816,365 | 665,599 | ||||
Derivative assets | 4,602 | 2,259 | 4,928 | 2,413 | ||||
Other non-current assets | 86,167 | 54,060 | 68,886 | 41,764 | ||||
Total assets | 5,867,966 | 2,514,504 | 5,361,707 | 2,335,861 | ||||
Current portion of long-term debt and obligations related to capital leases | 162,915 | 73,975 | 209,814 | 99,994 | ||||
Current portion of derivative liabilities | 21,973 | 7,217 | 27,388 | 9,622 | ||||
Other current liabilities | 98,657 | 43,193 | 76,480 | 32,068 | ||||
Long-term debt and obligations related to capital leases | 3,023,713 | 1,231,433 | 2,677,447 | 1,087,425 | ||||
Shareholders' loans, current and non-current | 368,937 | 131,685 | 545,028 | 272,514 | ||||
Derivative liabilities | 73,454 | 24,235 | 82,738 | 27,526 | ||||
Other long-term liabilities | 77,297 | 39,855 | 80,170 | 41,500 | ||||
Equity | 2,041,020 | 962,911 | 1,662,642 | 765,212 | ||||
Total liabilities and equity | 5,867,966 | 2,514,504 | 5,361,707 | 2,335,861 | ||||
Investments in equity-accounted joint ventures | 962,911 | 765,212 | ||||||
Advances to equity-accounted joint ventures | 131,685 | 272,514 | ||||||
Investments in and advances to equity-accounted joint ventures | 1,094,596 | 1,037,726 |
(1) | The Partnership's equity-accounted joint ventures as at December 31, 2017 and December 31, 2016 include: the Partnership’s 40 percent ownership interest in Teekay Nakilat (III) Corporation, which owns four LNG carriers; the Partnership’s ownership interests of 49 percent and 50 percent, respectively, in the Excalibur and Excelsior joint ventures, which own one LNG carrier and one regasification unit, respectively; 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 23 vessels, including three newbuildings, as at December 31, 2017, compared to 23 vessels owned and in-chartered, including four newbuildings, as at December 31, 2016; the Partnership’s 30 percent ownership interest in one LNG carrier and one LNG carrier newbuilding as at December 31, 2017, compared to two LNG carrier newbuildings as at December 31, 2016, and the Partnership's 20 percent ownership interest in two LNG carrier newbuildings for Shell; the Partnership’s 50 percent ownership interest in six ARC7 LNG carrier newbuildings in the joint venture between the Partnership and China LNG Shipping (Holdings) Limited; and the Partnership's 30 percent ownership interest in Bahrain LNG W.L.L., which owns an LNG receiving and regasification terminal under construction in Bahrain. |
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