Teekay LNG Partners Reports Third Quarter Results
HAMILTON, BERMUDA, Nov 08, 2012 (Menafn - MARKETWIRE via COMTEX) --Teekay LNG Partners L.P. TGP -
Highlights
--Generated distributable cash flow of 57.8 million in the third quarter
of 2012, an increase of 32 percent from the third quarter of 2011.
--Declared third quarter 2012 cash distribution of 0.675 per unit.
--Total liquidity of approximately 559 million as at September 30, 2012,
including 182.2 million of net proceeds from the follow-on equity
offering completed September 2012.
--Significant increase in the number of LNG project tenders; Teekay LNG is
actively bidding on several projects.
Teekay GP LLC, the general partner of Teekay LNG Partners L.P. (TeekayLNG or the Partnership) TGP, today reported the Partnership'sresults for the quarter ended September 30, 2012. During the thirdquarter of 2012, the Partnership generated distributable cash flow(1)of 57.8 million, compared to 43.7 million in the same quarter ofthe previous year. The increase primarily reflects the incrementaldistributable cash flow resulting from the following acquisitions:one Multigas carrier delivered in October 2011; a 33 percent interestin four liquefied natural gas (LNG) carriers delivered between August2011 and January 2012; one liquefied petroleum gas (LPG) carrierdelivered in September 2011; and a 52 percent interest in six LNGcarriers acquired in February 2012.
On October 12, 2012, the Partnership declared a cash distribution of0.675 per unit for the quarter ended September 30, 2012. The cashdistribution will be paid on November 9, 2012 to all unitholders ofrecord on October 24, 2012.
"Shipping requirements to support new liquefaction projects scheduledto come on-line starting in 2015 are expected to create significantnew demand for the global LNG shipping fleet," commented PeterEvensen, Chief Executive Officer of Teekay GP L.L.C. "Against thisbackdrop, the Partnership is currently actively bidding on severalLNG and floating storage and regasification projects with start-updates in the 2015 through 2017 timeframe. Including approximately180 million of net proceeds from the Partnership's September 2012follow-on equity offering, Teekay LNG is well-positioned forinvestment in one or more quality growth opportunities."
(1)Distributable cash flow is a non-GAAP financial measure used by
certain investors to measure the financial performance of the
Partnership and other master limited partnerships. Please see Appendix
B for a reconciliation of this non-GAAP measure to the most directly
comparable financial measure under United States generally accepted
accounting principles (GAAP).
Teekay LNG's Fleet
The following table summarizes the Partnership's fleet as of November1, 2012:
-----------------------------------------------------------------------
-----
Number of Vessels
-------------------------------------
LNG Carrier Fleet27 (i)
LPG/Multigas Carrier Fleet5 (ii)
Conventional Tanker Fleet11
----------------------------------------------------------------------------
Total43
----------------------------------------------------------------------------
(i)The Partnership's ownership interests in these vessels ranges from 33
percent to 100 percent.
(ii)The Partnership has a 99 percent ownership interest in these vessels.
Financial Summary
The Partnership reported adjusted net income attributable to thepartners(1) (as detailed in Appendix A to this release) of 41.7million for the quarter ended September 30, 2012, compared to 29.7million for the same period of the prior year. Adjusted net incomeattributable to the partners excludes a number of specific items thathad the net effect of decreasing net income by 8.6 million and 2.0million for the three months ended September 30, 2012 and 2011,respectively, as detailed in Appendix A. Including these items, thePartnership reported net income attributable to the partners, on aGAAP basis, of 33.1 million and 27.6 million for the three monthsended September 30, 2012 and 2011, respectively.
For the nine months ended September 30, 2012, the Partnershipreported adjusted net income attributable to the partners(1) (asdetailed in Appendix A to this release) of 117.8 million, comparedto 79.1 million for the same period of the prior year. Adjusted netincome attributable to the partners excludes a number of specificitems that had the net effect of decreasing net income by 22.3million and 29.6 million for the nine months ended September 30,2012 and 2011, respectively, as detailed in Appendix A. Includingthese items, the Partnership reported net income attributable to thepartners, on a GAAP basis, of 95.5 million and 49.5 million for thenine months ended September 30, 2012 and 2011, respectively.
For accounting purposes, the Partnership is required to recognize thechanges in the fair value of its derivative instruments on itsconsolidated statements of income. This method of accounting does notaffect the Partnership's cash flows or the calculation ofdistributable cash flow, but results in the recognition of unrealizedgains or losses on the consolidated statements of income as detailedin footnotes 1 and 2 to the Summary Consolidated Statements of Incomeincluded in this release.
(1)Adjusted net income attributable to the partners is a non-GAAP
financial measure.Please refer to Appendix A to this release for a
reconciliation of this non-GAAP measure to the most directly
comparable financial measure under GAAP and information about specific
items affecting net income which are typically excluded by securities
analysts in their published estimates of the Partnership's financial
results.
Operating Results
The following table highlights certain financial information forTeekay LNG's two segments: the Liquefied Gas segment and theConventional Tanker segment (please refer to the "Teekay LNG's Fleet"section of this release above and Appendix C for further details).
-----------------------------------------------------------------------
-----
Three Months EndedThree Months Ended
September 30, 2012September 30, 2011
(unaudited)(unaudited)
--------------------------------------------------------
Conven-Conven-
LiquefiedtionalLiquefiedtional
(in thousands ofGasTankerGasTanker
U.S. Dollars)SegmentSegmentTotalSegmentSegmentTotal
----------------------------------------------------------------------------
Net voyage
revenues(i)69,63028,23397,86368,92128,02896,949
Vessel operating
expenses11,47710,51521,99211,80310,56322,366
Depreciation and
amortization17,1587,41224,57015,6897,34323,032
----------------------------------------------------------------------------
CFVO from
consolidated
vessels(ii)55,73315,44571,17856,01914,38370,402
CFVO from equity
accounted
vessels(ii)(iii)40,550-40,55015,202-15,202
Total CFVO(ii)96,28315,445 111,72871,22114,38385,604
----------------------------------------------------------------------------
(i)Net voyage revenues represents voyage revenues less voyage expenses,
which comprise all expenses relating to certain voyages, including
bunker fuel expenses, port fees, canal tolls and brokerage
commissions. Net voyage revenues is a non-GAAP financial measure used
by certain investors to measure the financial performance of shipping
companies. Please see the Partnership's website at
http://www.teekaylng.com/ for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable GAAP
financial measure.
(ii)Cash flow from vessel operations (CFVO) represents income from vessel
operations before (a) depreciation and amortization expense, (b)
amortization of in-process revenue contracts and (c) adjusting for
direct financing leases to a cash basis. CFVO is included because
certain investors use this data to measure a company's financial
performance. CFVO is not required by GAAP and should not be considered
as an alternative to net income, equity income or any other indicator
of the Partnership's performance required by GAAP. Please see the
Partnership's website at http://www.teekaylng.com/ for a
reconciliation of this non-GAAP measure as used in this release to the
most directly comparable GAAP financial measure.
(iii) The Partnership's equity accounted investments for the three months
ended September 30, 2012 and 2011 include the Partnership's 40 percent
interest in Teekay Nakilat (III) Corporation, which owns four LNG
carriers; the Partnership's 50 percent interest in the Excalibur and
Excelsior Joint Ventures, which owns one LNG carrier and one
regasification unit; and the Partnership's 33 percent interest in one
LNG carrier that was delivered in August 2011 servicing the Angola LNG
Project. The Partnership's equity accounted investment for the three
months ended September 30, 2012 also includes the Partnership's 33
percent interest in three other LNG carriers that were delivered in
late 2011 through early 2012 servicing the Angola LNG Project; and the
Partnership's 52 percent interest in MALT LNG Holdings ApS, the joint
venture between the Partnership and Maurbeni Corporation, which
acquired six LNG carriers on February 28, 2012.
Liquefied Gas Segment
Cash flow from vessel operations from the Partnership's Liquefied Gassegment, excluding equity-accounted vessels, was virtually unchangedat 55.7 million in the third quarter of 2012 compared to 56.0million in the same quarter of the prior year.
Cash flow from vessel operations from the Partnership'sequity-accounted vessels in the Liquefied Gas segment increasedsignificantly to 40.6 million in the third quarter of 2012 from15.2 million in the same quarter of the prior year. This increasewas primarily due to the Teekay LNG-Marubeni joint venture'sacquisition of six LNG carriers from A.P. Moller Maersk A/P (the MALTLNG Carriers) in February 2012 and the acquisition of a 33 percentinterest in the four Angola LNG Carriers from Teekay Corporationbetween August 2011 and January 2012.
Conventional Tanker Segment
Cash flow from vessel operations from the Partnership's ConventionalTanker segment increased to 15.4 million in the third quarter of2012 from 14.4 million in the same quarter of the prior year,primarily as a result of lower general and administrative expenses inthe Conventional Tanker segment.
Liquidity
As of September 30, 2012, the Partnership had total liquidity of558.9 million (comprised of 91.9 million in cash and cashequivalents and 467.0 million in undrawn credit facilities),compared to total liquidity of 402.9 million as of June 30, 2012.The increase in the Partnership's liquidity balance is primarily dueto the 182.2 million of net proceeds from the follow-on equityoffering completed September 2012.
Conference Call
The Partnership plans to host a conference call on Friday, November9, 2012 at 11:00 a.m. (ET) to discuss the results for the thirdquarter of 2012. All unitholders and interested parties are invitedto listen to the live conference call by choosing from the followingoptions:
--By dialing (866) 322-2356 or (416) 640-3405, if outside North America,
and quoting conference ID code 7467466.
--By accessing the webcast, which will be available on Teekay LNG's
website at www.teekaylng.com (the archive will remain on the web site
for a period of 30 days).
Asupporting Third Quarter 2012 Earnings Presentation will also beavailable at www.teekaylng.com in advance of the conference callstart time.
The conference call will be recorded and made available until Friday,November 16, 2012. This recording can be accessed following the livecall by dialing (888) 203-1112 or (647) 436-0148, if outside NorthAmerica, and entering access code 7467466.
About Teekay LNG Partners L.P.
Teekay LNG Partners is the world's third largest independent ownerand operator of LNG vessels, providing LNG, LPG and crude oil marinetransportation services primarily under long-term, fixed-rate chartercontracts with major energy and utility companies through itsinterests in 27 LNG carriers (including one LNG regasification unit),five LPG/Multigas carriers and 11 conventional tankers. ThePartnership's ownership interests in these vessels range from 33 to100 percent. Teekay LNG Partners L.P. is a publicly-traded masterlimited partnership (MLP) formed by Teekay Corporation TK aspart of its strategy to expand its operations in the LNG and LPGshipping sectors.
Teekay LNG Partners' common units trade on the New York StockExchange under the symbol "TGP".
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(in thousands of U.S. Dollars, except units outstanding)
Three Months EndedNine Months Ended
SeptemberSeptemberSeptemberSeptember
30,June 30,30,30,30,
20122012201120122011
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
VOYAGE REVENUES98,72396,35497,256294,293282,722
----------------------------------------------------------------------------
----------------------------------------------------------------------------
OPERATING
EXPENSES
Voyage expenses8602423071,4451,362
Vessel operating
expenses21,99220,10422,36662,62766,561
Depreciation and
amortization24,57024,67323,03273,87667,552
General and
administrative6,2546,5065,80419,87618,665
----------------------------------------------------------------------------
----------------------------------------------------------------------------
53,67651,52551,509157,824154,140
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income from
vessel
operations45,04744,82945,747136,469128,582
----------------------------------------------------------------------------
----------------------------------------------------------------------------
OTHER ITEMS
Equity income(1)21,09811,08689149,23212,395
Interest expense(14,414)(13,734)(12,129)(40,946)(36,019)
Interest income8509491,5762,7314,852
Realized and
unrealized loss
on derivative
instruments(2)(9,945)(18,145)(37,690)(43,993)(54,250)
Foreign exchange
(loss) gain(3)(6,248)13,92729,480(1,989)(412)
Other (expense)
income - net(305)348309518(916)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income36,08339,26028,184102,02254,232
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income attributable to:
Non-controlling
interest3,0221,5725356,5424,731
Partners33,06137,68827,64995,48049,501
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Limited partners' units outstanding:
Weighted-average number of
common and total units
outstanding -
basic and
diluted65,882,45064,857,90059,357,90065,201,91057,887,847
Total number of
units outstanding at
end of period69,683,76364,857,90059,357,90069,683,76359,357,900
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1)Equity income includes unrealized gains (losses) on derivative
instruments as detailed in the table below.
Three Months EndedNine Months Ended
--------------------------------------------------
SeptemberJune 30, September September September
30, 2012201230, 201130, 201230, 2011
--------------------------------------------------
Equity income21,09811,08689149,23212,395
Proportionate share of
unrealized losses on
derivative instruments
included in equity income(870)(8,242)(5,513)(4,051)(6,113)
--------------------------------------------------
Equity income excluding
unrealized losses
onderivative instruments21,96819,3286,40453,28318,508
--------------------------------------------------
(2)The realized losses relate to the amounts the Partnership actually
paid to settle derivative instruments and the unrealized (losses)
gains relate to the change in fair value of such derivative
instruments as detailed in the table below.
Three Months EndedNine Months Ended
--------------------------------------------------
SeptemberJune 30, September September September
30, 2012201230, 201130, 201230, 2011
--------------------------------------------------
Realized (losses) relating to:
Interest rate swaps(9,450)(9,284)(10,022)(27,813)(30,305)
Toledo Spirit time-charter
derivative contract-(6)-(38)(53)
--------------------------------------------------
(9,450)(9,290)(10,022)(27,851)(30,358)
--------------------------------------------------
Unrealized (losses) gains
relating to:
Interest rate swaps(295)(8,855)(29,268)(16,242)(25,892)
Toledo Spirit time-charter
derivative contract(200)-1,6001002,000
--------------------------------------------------
(495)(8,855)(27,668)(16,142)(23,892)
--------------------------------------------------
Total realized and
unrealized losses
derivative instruments(9,945)(18,145)(37,690)(43,993)(54,250)
--------------------------------------------------
(3)For accounting purposes, the Partnership is required to revalue all
foreign currency-denominated monetary assets and liabilities based on
the prevailing exchange rate at the end of each reporting period. This
revaluation does not affect the Partnership's cash flows or the
calculation of distributable cash flow, but results in the recognition
of unrealized foreign currency translation gains or losses in the
consolidated statements of income.
Foreign exchange (loss) gain includes realized gains relating to the
amounts the Partnership received to settle the Partnership's non-
designated cross currency swap that was entered into as an economic
hedge in relation to the Partnership's Norwegian Kroner (NOK)-
denominated unsecured bonds. The Partnership issued NOK 700 million
unsecured bonds in May 2012 maturing in 2017. Foreign exchange (loss)
gain also includes unrealized gains (losses) relating to the change
in fair value of such derivative instruments, partially offset by
unrealized gains (losses) on the revaluation of the NOK bonds as
detailed in the table below:
Three Months EndedNine Months Ended
-------------------------------------------------
SeptemberJune 30, September September September
30, 2012201230, 201130, 201230, 2011
-------------------------------------------------
Realized gains on cross-
currency swaps10748-155-
Unrealized gains (losses)
on cross-currency swaps3,077(10,270)-(7,193)-
Unrealized (losses) gains
on revaluation of NOK
bonds(4,828)7,560-2,732-
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. Dollars)
As atAs atAs at
September 30,June 30,December 31,
---------------------------------------------
201220122011
---------------------------------------------
(unaudited)(unaudited)(unaudited)
---------------------------------------------
ASSETS
Cash and cash equivalents91,931114,91693,627
Restricted cash - current31,361--
Other current assets19,32715,78318,837
Advances to affiliates3,33824,36211,922
Restricted cash - long-term496,309526,705495,634
Vessels and equipment1,960,7561,980,3702,021,125
Net investments in direct
financing leases404,981406,549409,541
Derivative assets167,638162,472155,259
Investments in and advances to
equity accounted joint
ventures388,722374,320191,448
Other assets37,66839,38734,760
Intangible assets107,568109,851114,416
Goodwill35,63135,63135,631
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Assets3,745,2303,790,3463,582,200
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND EQUITY
Accounts payable, accrued
liabilities andunearned
revenue46,01953,13160,030
Current portion of long-term
debt and capital leases253,791255,748131,925
Advances from affiliates and
joint venture partners11,07227,28817,400
Long-term debt and capital
leases1,730,2201,920,2501,830,353
Derivative liabilities328,930326,347293,218
Other long-term liabilities105,147106,231109,565
Equity
Non-controlling interest(1)32,43429,71226,242
Partners' equity1,237,6171,071,6391,113,467
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Liabilities and Total
Equity3,745,2303,790,3463,582,200
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1)Non-controlling interest includes a 30 percent equity interest in the
RasGas II project (which owns three LNG carriers), a 31 percent equity
interest in the Tangguh Project (which owns two LNG carriers), a 1
percent equity interest in the two Kenai LNG carriers, a 1 percent
equity interest in the Excalibur joint venture (which owns one LNG
carrier), and a 1 percent equity interest in the five LPG/Multigas
carriers, which in each case the Partnership does not own.
TEEKAY LNG PARTNERS L.P.
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. Dollars)
Nine Months Ended
September 30,
--------------------------
20122011
--------------------------
Cash and cash equivalents provided by (used for)(unaudited)(unaudited)
--------------------------
OPERATING ACTIVITIES
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net operating cash flow134,401134,172
----------------------------------------------------------------------------
----------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt419,221219,401
Debt issuance costs(2,025)-
Scheduled repayments of long-term debt(60,647)(54,563)
Prepayments of long-term debt(324,274)(173,000)
Scheduled repayments of capital lease obligations
and other long-term liabilities(7,590)(7,502)
Proceeds from equity offering, net of offering
costs182,214161,655
Advances to and from affiliates-1,596
Increase in restricted cash(30,845)(3,381)
Cash distributions paid(142,939)(118,809)
Purchase of Skaugen Multigas Subsidiary-(55,313)
Proceeds on sale of 1% interest in Skaugen LPG
Carriers and Skaugen Multigas Subsidiaries-1,220
Advances to joint venture partners(3,600)-
Other(350)(260)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net financing cash flow29,165(28,956)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of equity investment in MALT LNG Carriers(150,999)-
Purchase of equity investment in Angola LNG
Carriers(19,068)(38,447)
Receipts from direct financing leases4,5614,536
Expenditures for vessels and equipment(1,125)(50,861)
Repayments from joint venture830-
Other539-
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net investing cash flow(165,262)(84,772)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Decrease) increase in cash and cash equivalents(1,696)20,444
Cash and cash equivalents, beginning of the period93,62781,055
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash and cash equivalents, end of the period91,931101,499
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME
(in thousands of U.S. Dollars)
Set forth below is a reconciliation of the Partnership's unauditedadjusted net income attributable to the partners, a non-GAAPfinancial measure, to net income attributable to the partners asdetermined in accordance with GAAP. The Partnership believes that, inaddition to conventional measures prepared in accordance with GAAP,certain investors use this information to evaluate the Partnership'sfinancial performance. The items below are also typically excluded bysecurities analysts in their published estimates of the Partnership'sfinancial results. Adjusted net income attributable to the partnersis intended to provide additional information and should not beconsidered a substitute for measures of performance prepared inaccordance with GAAP.
-----------------------------------------------------------------------
-----
Three Months EndedNine Months Ended
SeptemberSeptemberSeptemberSeptember
30,30,30,30,
2012201120122011
(unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------------
Net income - GAAP basis36,08328,184102,02254,232
Less:
Net income attributable to
non-controlling interest(3,022)(535)(6,542)(4,731)
----------------------------------------------------------------------------
Net income attributable to
the partners33,06127,64995,48049,501
Add (subtract) specific
items affecting net income:
Unrealized foreign
exchange loss (gain)(1)6,124(29,480)1,913412
Unrealized losses from
derivative instruments(2)49527,66816,14223,892
Unrealized losses from
derivative instruments
and other items from
equity accounted
investees(3)1,1395,5135,1286,113
Other items(4)---949
Non-controlling interests'
share of items above865(1,693)(847)(1,763)
----------------------------------------------------------------------------
Total adjustments8,6232,00822,33629,603
----------------------------------------------------------------------------
Adjusted net income
attributable to the
partners41,68429,657117,81679,104
----------------------------------------------------------------------------
(1)Foreign exchange losses 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 gain (loss) on the cross-currency swap
economically hedging the Partnership's NOK bonds and exclude the
realized gains relating to the cross currency swap for the NOK bonds.
(2)Reflects the unrealized gain or loss due to changes in the mark-to-
market value of interest rate derivative instruments that are not
designated as hedges for accounting purposes.
(3)Reflects the unrealized gain or loss due to changes in the mark-to-
market value of derivative instruments that are not designated as
hedges for accounting purposes within the Partnership's equity-
accounted investments and 0.3 million and 1.1 million of
acquisition-related costs during the three and nine months ended
September 30, 2012, respectively, relating to the acquisition of the
six MALT LNG Carriers.
(4)Amount for the nine months ended September 30, 2011 relates to a one-
time management fee associated with the portion of stock-based
compensation grants to Teekay Corporation's former President and Chief
Executive Officer that had not yet vested prior to the date of his
retirement on March 31, 2011.
TEEKAY LNG PARTNERS L.P.
APPENDIX B - RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
(in thousands of U.S. Dollars)
Description of Non-GAAP Financial Measure - Distributable Cash Flow(DCF)
Distributable cash flow represents net income adjusted fordepreciation and amortization expense, non-cash items, estimatedmaintenance capital expenditures, unrealized gains and losses fromderivatives, deferred income taxes and foreign exchange relateditems. Maintenance capital expenditures represent those capitalexpenditures required to maintain over the long-term the operatingcapacity of, or the revenue generated by, the Partnership's capitalassets. Distributable cash flow is a quantitative standard used inthe publicly-traded partnership investment community to assist inevaluating a partnership's ability to make quarterly cashdistributions. Distributable cash flow is not required by GAAP andshould not be considered as an alternative to net income or any otherindicator of the Partnership's performance required by GAAP. Thetable below reconciles distributable cash flow to net income.
-----------------------------------------------------------------------
-----
Three Months Three Months
EndedEnded
SeptemberSeptember
30, 201230, 2011
(unaudited)(unaudited)
----------------------------------------------------------------------------
Net income:36,08328,184
Add:
Depreciation and amortization24,57023,032
Partnership's share of equity accounted joint
ventures' DCF before estimated maintenance
capital expenditures29,5979,658
Unrealized loss on derivatives and other non-
cash items68528,891
Less:
Estimated maintenance capital expenditures(14,345)(11,471)
Unrealized foreign exchange loss (gain)6,124(29,480)
Equity income(21,098)(891)
Non-cash tax expense (recovery)224(454)
----------------------------------------------------------------------------
Distributable Cash Flow before Non-controlling
interest61,84047,469
Non-controlling interests' share of DCF before
estimated maintenance capital expenditures(3,991)(3,793)
----------------------------------------------------------------------------
Distributable Cash Flow57,84943,676
----------------------------------------------------------------------------
TEEKAY LNG PARTNERS L.P.
APPENDIX C - SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. Dollars)
Three Months Ended September 30, 2012
---------------------------------------------
(unaudited)
Conventional
Liquefied GasTanker
SegmentSegmentTotal
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net voyage revenues(1)69,63028,23397,863
Vessel operating expenses11,47710,51521,992
Depreciation and amortization17,1587,41224,570
General and administrative3,9812,2736,254
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income from vessel operations37,0148,03345,047
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended September 30, 2011
---------------------------------------------
(unaudited)
Conventional
Liquefied GasTanker
SegmentSegmentTotal
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net voyage revenues(1)68,92128,02896,949
Vessel operating expenses11,80310,56322,366
Depreciation and amortization15,6897,34323,032
General and administrative2,7223,0825,804
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income from vessel operations38,7077,04045,747
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1)Net voyage revenues represents voyage revenues less voyage expenses,
which comprise all expenses relating to certain voyages, including
bunker fuel expenses, port fees, canal tolls and brokerage
commissions. Net voyage revenues is a non-GAAP financial measure used
by certain investors to measure the financial performance of shipping
companies. Please see the Partnership's website at
http://www.teekaylng.com/ for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable GAAP
financial measure.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements (as defined inSection 21E of the Securities Exchange Act of 1934, as amended) whichreflect management's current views with respect to certain futureevents and performance, including statements regarding: future growthopportunities, including current bidding activity by the Partnershipon potential LNG and floating storage and regasification projects andanticipated start-up timing of those projects; LNG shipping marketfundamentals, including the balance of supply and demand of LNGshipping capacity and LNG shipping charter rates; the stability ofthe Partnership's cash flows; the Partnership's financial position,including available liquidity; and the Partnership's ability tosecure additional accretive growth opportunities. The followingfactors are among those that could cause actual results to differmaterially from the forward-looking statements, which involve risksand uncertainties, and that should be considered in evaluating anysuch statement: availability of LNG shipping, floating storage,regasification and other growth project opportunities; changes inproduction of LNG or LPG, either generally or in particular regions;changes in trading patterns or timing of start-up of new LNGliquefaction and regasification projects significantly affectingoverall vessel tonnage requirements; the Partnership's ability tosecure new contracts through bidding on project tenders and/oracquire existing on-the-water assets; changes in applicable industrylaws and regulations and the timing of implementation of new laws andregulations; the potential for early termination of long-termcontracts of existing vessels in the Teekay LNG fleet and inabilityof the Partnership to renew or replace long-term contracts; thePartnership's ability to raise financing to purchase additionalvessels or to pursue other projects; changes to the amount orproportion of revenues, expenses, or debt service costs denominatedin foreign currencies; competitive dynamics in bidding for potentialLNG or LPG projects; and other factors discussed in Teekay LNGPartners' filings from time to time with the SEC, including itsReport on Form 20-F for the fiscal year ended December 31, 2011. ThePartnership expressly disclaims any obligation to release publiclyany updates or revisions to any forward-looking statements containedherein to reflect any change in the Partnership's expectations withrespect thereto or any change in events, conditions or circumstanceson which any such statement is based.
Contacts:
Teekay LNG Partners L.P.
Kent Alekson
Investor Relations Enquiries
1 (604) 609-6442
www.teekaylng.com
SOURCE: Teekay LNG Partners L.P.
http://www.teekaylng.com
Copyright 2012 Marketwire, Inc., All rights reserved.
