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ALTERA INFRASTRUCTURE L.P. | |||
By: |
ALTERA INFRASTRUCTURE GP L.L.C., its general partner
| ||
Date: August 4, 2022 | By: | /s/ Mark Mitchell | |
Mark Mitchell Company Secretary |
Three Months Ended | |||
June 30, | March 31, | June 30, | |
2022 | |||
2022 |
Restated(2)
| 2021 | |
In thousands of U.S. Dollars, unaudited | $ | $ | $ |
IFRS FINANCIAL RESULTS | |||
Revenues | 296,234 | 323,655 | 266,935 |
Net Income (loss)
| (39,989) | 52,908 | (28,488) |
Limited partners' interest in net income (loss) per common unit - basic
| (0.11) | 0.11 | (0.08) |
NON-IFRS FINANCIAL MEASURE: | |||
Adjusted EBITDA (1)
| 129,146 | 179,528 | 109,595 |
Three Months Ended | |||
June 30, | March 31, | June 30, | |
2022 | |||
2022 |
Restated(2)
| 2021 | |
In thousands of U.S. Dollars, unaudited | $ | $ | $ |
FPSO | 53,424 | 99,533 | 45,364 |
Shuttle Tanker | 69,494 | 63,590 | 57,662 |
FSO | 10,565 | 10,659 | 9,587 |
UMS | (3,940) | (1,760) | (1,627) |
Towage | 3,649 | 8,990 | (1,357) |
New Ventures | (678) | (129) | - |
Corporate/Eliminations | (3,368) | (1,355) | (34) |
Partnership's Adjusted EBITDA | 129,146 | 179,528 | 109,595 |
Second Quarter 2022 Compared with Second Quarter 2021
The Partnership's FPSO segment generated Adjusted EBITDA of $53 million for the three months ended June 30, 2022, compared to $45 million for the three months ended June 30, 2021. The increase of $8 million was primarily due to Petrojarl I higher uptime and oil price tariff revenues, partially offset by an absence of contribution from the Knarr FPSO going off contract May 1, 2022.
As at June 30, 2022, the Partnership had total liquidity of $186 million, compared to $241 million as at June 30, 2021, representing a decrease of $55 million.(1)
This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including, among others: the completion of anticipated vessel sales; the expected delivery dates of vessels subject to sales agreements; and the Partnership's engagement with its lenders relating to rescheduling outstanding debt obligations. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: the length and outcome of the Partnership's ongoing engagement with its lenders relating to its outstanding debt obligations; the duration and scope of the COVID-19 pandemic and the severity of COVID variants; the duration and effects of Russia's invasion of Ukraine; and other factors discussed in the Partnership's filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2021. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.
About Altera Infrastructure L.P.
Altera Infrastructure L.P. is a leading global energy infrastructure services partnership primarily focused on the ownership and operation of critical infrastructure assets in the offshore oil regions of the North Sea, Brazil and the East Coast of Canada. Altera has consolidated assets of approximately $3.8 billion comprised of 44 vessels, including floating production, storage and offloading (FPSO) units, shuttle tankers, floating storage and offtake (FSO) units, long-distance towing and offshore installation vessels and a unit for maintenance and safety (UMS). The majority of Altera's fleet is employed on medium-term, stable contracts.
Three Months Ended | Six Months Ended | ||||
June 30, | March 31, | June 30, | June 30, | June 30, | |
2022 | |||||
2022 |
Restated(1)
| 2021 | 2022 | 2021 | |
$ | $ | $ | $ | $ | |
Revenues | 296,234 | 323,655 | 266,935 | 619,889 | 539,689 |
Direct operating costs | (171,082) | (159,206) | (169,937) | (330,288) | (331,778) |
General and administrative expenses | (12,135) | (6,703) | (8,951) | (18,838) | (21,619) |
Depreciation and amortization | (70,150) | (71,882) | (81,560) | (142,032) | (158,809) |
Interest expense | (59,490) | (56,208) | (49,475) | (115,698) | (97,159) |
Interest income | 355 | 58 | 21 | 413 | 49 |
Equity-accounted income (loss) | 9,826 | 22,262 | 10,229 | 32,088 | 29,613 |
Impairment expense, net | (38,040) | - | - | (38,040) | - |
Gain (loss) on dispositions, net | 15,700 | - | 9,107 | 15,700 | 9,107 |
Realized and unrealized gain (loss) on derivative instruments | (3,108) | 10,231 | (1,513) | 7,123 | 12,347 |
Foreign currency exchange gain (loss) | 630 | 1,024 | (302) | 1,654 | 23 |
Other income (expenses), net | (8,795) | (10,834) | (1,831) | (19,629) | (1,857) |
Income (loss) before income tax (expense) benefit | (40,055) | 52,397 | (27,277) | 12,342 | (20,394) |
Income tax (expense) benefit | |||||
Current | 66 | 511 | (1,211) | 577 | (2,193) |
Net income (loss) | (39,989) | 52,908 | (28,488) | 12,919 | (22,587) |
Attributable to: | |||||
Limited partners - common units | (46,277) | 45,410 | (33,967) | (867) | (34,269) |
General partner | (354) | 347 | (260) | (7) | (262) |
Limited partners - preferred units | 7,880 | 7,880 | 7,880 | 15,760 | 15,760 |
Non-controlling interests in subsidiaries | (1,238) | (729) | (2,141) | (1,967) | (3,816) |
(39,989) | 52,908 | (28,488) | 12,919 | (22,587) | |
Basic and diluted earnings (loss) per limited partner common unit | (0.11) | 0.11 | (0.08) | 0.00 | (0.08) |
Three Months Ended | Six Months Ended | ||||
June 30, | March 31, | June 30, | June 30, | June 30, | |
2022 | 2022 | 2021 | 2022 | 2021 | |
$ | $ | $ | $ | $ | |
Net income (loss) | (39,989) | 52,908 | (28,488) | 12,919 | (22,587) |
Other comprehensive income (loss) | |||||
Items that will not be reclassified subsequently to net income (loss): | |||||
To interest expense: | |||||
Realized gain on qualifying cash flow hedging instruments | (182) | (179) | (196) | (361) | (386) |
To equity-accounted income (loss): | |||||
Realized gain on qualifying cash flow hedging instruments | (158) | (159) | (211) | (317) | (407) |
Total other comprehensive income (loss) | (340) | (338) | (407) | (678) | (793) |
Comprehensive income (loss) | (40,329) | 52,570 | (28,895) | 12,241 | (23,380) |
Attributable to: | |||||
Limited partners - common units | (46,614) | 45,075 | (34,371) | (1,540) | (35,056) |
General partner | (357) | 344 | (263) | (12) | (268) |
Limited partners - preferred units | 7,880 | 7,880 | 7,880 | 15,760 | 15,760 |
Non-controlling interests in subsidiaries | (1,238) | (729) | (2,141) | (1,967) | (3,816) |
(40,329) | 52,570 | (28,895) | 12,241 | (23,380) |
As at | As at | As at | |
June 30, | March 31, | December 31, | |
2022 | 2021 | ||
2022 |
Restated(1)
|
Restated(1)
| |
$ | $ | $ | |
ASSETS | |||
Current assets | |||
Cash and cash equivalents | 185,561 | 171,305 | 190,942 |
Cash deposits with third-party restrictions | 98,205 | 78,912 | 58,566 |
Financial assets | 9,520 | 6,933 | 5,856 |
Accounts and other receivable, net | 127,305 | 147,049 | 127,453 |
Vessels and equipment classified as held for sale | 52,530 | 5,800 | 5,800 |
Inventory | 42,472 | 31,775 | 26,601 |
Due from related parties | 773 | 830 | 978 |
Other assets | 30,504 | 30,706 | 43,668 |
Total current assets | 546,870 | 473,310 | 459,864 |
Non-current assets | |||
Financial assets | 1,049 | 969 | 718 |
Vessels and equipment | 2,786,196 | 2,928,453 | 2,869,395 |
Advances on newbuilding contracts | - | - | 51,918 |
Equity-accounted investments | 246,628 | 243,904 | 237,469 |
Other assets | 122,137 | 128,082 | 138,247 |
Goodwill | 127,113 | 127,113 | 127,113 |
Total non-current assets | 3,283,123 | 3,428,521 | 3,424,860 |
Total assets | 3,829,993 | 3,901,831 | 3,884,724 |
LIABILITIES | |||
Current liabilities | |||
Accounts payable and other | 194,793 | 190,249 | 249,297 |
Other financial liabilities | 16,136 | 14,029 | 34,679 |
Borrowings | 900,574 | 572,842 | 407,274 |
Due to related parties | 10,424 | 32,485 | - |
Total current liabilities | 1,121,927 | 809,605 | 691,250 |
Non-current liabilities | |||
Accounts payable and other | 45,323 | 47,501 | 49,253 |
Other financial liabilities | 182,596 | 185,363 | 188,658 |
Borrowings | 1,519,966 | 1,882,204 | 2,056,753 |
Due to related parties | 843,562 | 820,210 | 797,432 |
Deferred tax liabilities | 700 | 700 | 700 |
Total non-current liabilities | 2,592,147 | 2,935,978 | 3,092,796 |
Total liabilities | 3,714,074 | 3,745,583 | 3,784,046 |
EQUITY | |||
Limited partners - Class A common units | (4,550) | (3,963) | (4,539) |
Limited partners - Class B common units | (315,009) | (269,319) | (314,153) |
Limited partners - preferred units | 408,008 | 400,128 | 392,248 |
General partner | 5,596 | 5,950 | 5,603 |
Accumulated other comprehensive income | 2,133 | 2,473 | 2,811 |
Non-controlling interests in subsidiaries | 19,741 | 20,979 | 18,708 |
Total equity | 115,919 | 156,248 | 100,678 |
Total liabilities and equity | 3,829,993 | 3,901,831 | 3,884,724 |
Three Months Ended March 31, |
Six Months Ended June 30, | |||
2022 | 2021 | 2021 | ||
Restated(2)
|
Restated(2)
| 2022 |
Restated(2)
| |
$ | $ | $ | $ | |
Operating Activities | ||||
Net income (loss) | 52,908 | 5,901 | 12,919 | (22,587) |
Adjusted for the following items: | ||||
Depreciation and amortization | 71,882 | 77,249 | 142,032 | 158,809 |
Equity-accounted (income) loss, net of distributions received of $24.9 million (2021 - $24.0 million) | (5,441) | (990) | (7,171) | (5,639) |
Impairment expense, net | - | - | 38,040 | - |
(Gain) loss on dispositions, net | - | - | (15,700) | (9,107) |
Unrealized (gain) loss on derivative instruments | (25,373) | (162,257) | (21,375) | (163,207) |
Provisions and other items | (645) | (193) | (3,786) | 188 |
Other non-cash items | 15,821 | 12,086 | 34,173 | 22,985 |
Changes in non-cash working capital, net | (50,324) | 39,239 | (20,923) | 79,464 |
Net operating cash flow | 58,828 | (28,965) | 158,209 | 60,906 |
Financing Activities | ||||
Proceeds from borrowings | 63,195 | 75,000 | 63,195 | 75,000 |
Repayments of borrowings | (75,140) | (99,367) | (112,595) | (195,767) |
Financing costs related to borrowings | - | (750) | - | (884) |
Proceeds from borrowings related to sale and leaseback of vessels | - | 71,400 | - | 71,400 |
Repayments of borrowings related to sale and leaseback of vessels | (2,818) | (2,881) | (5,636) | (5,700) |
Financing costs related to borrowings from sale and leaseback of vessels | - | - | - | (584) |
Proceeds from borrowings from related parties | 32,000 | 75,000 | 32,000 | 130,000 |
Prepayment of borrowings from related parties | - | - | (22,000) | (30,000) |
Lease liability repayments | (3,341) | (3,392) | (9,108) | (6,961) |
Capital contribution by non-controlling interests | 3,000 | - | 3,000 | - |
Distributions to limited partners and preferred unitholders | - | (7,880) | - | (15,760) |
Distributions to non-controlling interests | - | (1,750) | - | (1,750) |
Repurchase of preferred units | - | (24) | - | (24) |
Net financing cash flow | 16,896 | 105,356 | (51,144) | 18,970 |
Investing Activities | ||||
Additions | ||||
Vessels and equipment | (75,387) | (156,317) | (87,046) | (168,979) |
Equity-accounted investments | (1,153) | (1,172) | (2,305) | (2,336) |
Dispositions | ||||
Vessels and equipment | - | - | 21,500 | 28,835 |
Changes in restricted cash | 697 | 71,826 | (3,813) | 77,445 |
Net investing cash flow | (75,843) | (85,663) | (71,664) | (65,035) |
Total Cash and cash equivalents (1)
| ||||
Change during the period | (119) | (9,272) | 35,401 | 14,841 |
Impact of foreign exchange on cash | 828 | 240 | (1,143) | 369 |
Balance, beginning of the period | 249,508 | 284,486 | 249,508 | 284,486 |
Balance, end of the period | 250,217 | 275,454 | 283,766 | 299,696 |
To supplement the unaudited interim condensed consolidated financial statements, the Partnership uses Adjusted EBITDA, which is a non-IFRS financial measure, as a measure of the Partnership's performance. Adjusted EBITDA represents net income (loss) before interest expense, interest income, income tax (expense) benefit, and depreciation and amortization and is adjusted to exclude certain items whose timing or amount cannot be reasonably estimated in advance or that are not considered representative of core operating performance. Such adjustments include impairment expenses, gain (loss) on dispositions, net, unrealized gain (loss) on derivative instruments, foreign currency exchange gain (loss) and certain other income or expenses. Adjusted EBITDA also excludes: realized gain or loss on interest rate swaps (as the Partnership in assessing its performance, views these gains or losses as an element of interest expense); realized gain or loss on derivative instruments resulting from amendments or terminations of the underlying instruments; realized gain or loss on foreign currency forward contracts; equity-accounted income (loss) and other income (expense), net. Adjusted EBITDA also includes the Partnership's proportionate share of Adjusted EBITDA from its equity-accounted investments and excludes the non-controlling interests' proportionate share of Adjusted EBITDA. The Partnership does not have control over the operations of, nor does it have any legal claim to the revenues and expenses of its equity-accounted investments. Consequently, the cash flow generated by the Partnership's equity-accounted investments may not be available for use by the Partnership in the period that such cash flows are generated.
Three Months Ended | Six Months Ended | ||||
June 30, | March 31, | June 30, | June 30, | June 30, | |
2022 | |||||
2022 |
Restated(1)
| 2021 | 2022 | 2021 | |
(in thousands of U.S. Dollars, unaudited) | $ | $ | $ | $ | $ |
Adjusted EBITDA | 129,146 | 179,528 | 109,595 | 308,674 | 229,865 |
Depreciation and amortization | (70,150) | (71,882) | (81,560) | (142,032) | (158,809) |
Interest expense | (59,490) | (56,208) | (49,475) | (115,698) | (97,159) |
Interest income | 355 | 58 | 21 | 413 | 49 |
Expenses and gains (losses) relating to equity-accounted investments | (5,932) | 526 | (10,606) | (5,406) | (15,475) |
Impairment expense, net | (38,040) | - | - | (38,040) | - |
Gain (loss) on dispositions, net | 15,700 | - | 9,107 | 15,700 | 9,107 |
Realized and unrealized gain (loss) on derivative instruments | (3,108) | 10,231 | (1,513) | 7,123 | 12,347 |
Foreign currency exchange gain (loss) | 630 | 1,024 | (302) | 1,654 | 23 |
Other income (expenses), net | (8,795) | (10,834) | (1,831) | (19,629) | (1,857) |
Adjusted EBITDA attributable to non-controlling interests | (371) | (46) | (713) | (417) | 1,515 |
Income (loss) before income tax (expense) benefit | (40,055) | 52,397 | (27,277) | 12,342 | (20,394) |
Income tax (expense) benefit | |||||
Current | 66 | 511 | (1,211) | 577 | (2,193) |
Net income (loss) | (39,989) | 52,908 | (28,488) | 12,919 | (22,587) |
Three Months Ended | Six Months Ended | |||
June 30, | June 30, | June 30, | June 30, | |
2022 | 2021 | 2022 | 2021 | |
(in thousands of U.S. Dollars, unaudited) | $ | $ | $ | $ |
Equity-accounted income (loss) | 9,826 | 10,229 | 32,088 | 29,613 |
Less: | ||||
Depreciation and amortization | (6,823) | (7,551) | (13,951) | (15,116) |
Interest expense, net | (1,481) | (1,932) | (2,594) | (4,000) |
Income tax (expense) benefit | ||||
Current | - | 21 | (36) | (26) |
18,130 | 19,691 | 48,669 | 48,755 | |
Less: | ||||
Realized and unrealized gain (loss) on derivative instruments | 2,939 | (2,005) | 11,052 | 3,522 |
Foreign currency exchange gain (loss) | (567) | 861 | 123 | 145 |
Adjusted EBITDA from equity-accounted investments | 15,758 | 20,835 | 37,494 | 45,088 |
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Altera Infrastructure LP published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 21:37:13 UTC.