Market Newsdesk

November 12, 2020 2:03 am

Teekay LNG Partners Reports Third Quarter 2020 Results

Highlights

GAAP net income attributable to the partners and preferred unitholders of $40.3 million and GAAP net income per common unit of $0.38 in the third quarter of 2020.
Adjusted net income⁽¹⁾ attributable to the partners and preferred unitholders of $58.9 million and adjusted net income per common unit of $0.59 in the third quarter of 2020 (excluding other items listed in Appendix A to this release), down slightly from the previous quarter due to a higher than normal number of drydocks.
Total adjusted EBITDA⁽¹⁾ of $186.9 million in the third quarter of 2020.
In October 2020, extended charter contract to early-2022 for 52 percent-owned LNG carrier, the Marib Spirit.
The Partnership’s LNG fleet now 100% fixed for 2020 and 96% fixed for 2021.
Fixed-rate charters continue to perform as expected; reaffirming 2020 financial guidance.

HAMILTON, Bermuda, Nov. 12, 2020 (GLOBE NEWSWIRE) — Teekay GP L.L.C., the general partner (the General Partner) of Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE: TGP), today reported the Partnership’s results for the quarter ended September 30, 2020.

Consolidated Financial Summary

	Three Months Ended
	September 30, 2020	June 30, 2020	September 30, 2019
*(in thousands of U.S. Dollars, except per unit data)*	(unaudited)	(unaudited)	(unaudited)
GAAP FINANCIAL COMPARISON
Voyage revenues	148,935	148,205	149,655
Income from vessel operations	69,597	69,589	71,611
Equity income	24,346	32,155	21,296
Net income attributable to the partners and preferred unitholders	40,275	44,934	47,368
Limited partners’ interest in net income per common unit	0.38	0.46	0.51
NON-GAAP FINANCIAL COMPARISON
Total adjusted revenues⁽¹⁾	249,540	254,001	234,633
Total adjusted EBITDA⁽¹⁾	186,902	192,340	180,216
Distributable cash flow (DCF)⁽¹⁾	79,168	83,170	70,925
Adjusted net income attributable to the partners and preferred unitholders⁽¹⁾	58,933	62,643	50,514
Limited partners’ interest in adjusted net income per common unit	0.59	0.67	0.55

(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).

Third Quarter of 2020 Compared to Second Quarter of 2020

GAAP net income and non-GAAP adjusted net income attributable to the partners and preferred unitholders were lower for the three months ended September 30, 2020, compared to the three months ended June 30, 2020, primarily due to more scheduled drydockings and higher planned repairs and maintenance expenses during the third quarter of 2020, as well as lower earnings from the redeployment of three, 52 percent-owned liquefied natural gas (LNG) carriers at lower charter rates, one of which was rechartered at a higher rate in October 2020. These decreases were partially offset by lower net interest expense and a decrease in general and administrative expenses.

In addition, GAAP net income was negatively impacted by unrealized credit loss provisions related to the adoption of the new accounting standard (ASC 326) at the beginning of 2020 as a result of a decline in the estimated charter-free values of certain types of LNG carriers. This decrease to GAAP net income was partially offset by unrealized gains on non-designated derivative instruments in the third quarter of 2020, compared to unrealized losses in the second quarter of 2020, and a decrease in unrealized foreign currency exchange losses.

Third Quarter of 2020 Compared to Third Quarter of 2019

GAAP net income and non-GAAP adjusted net income attributable to the partners and preferred unitholders were positively impacted for the three months ended September 30, 2020, compared to the same quarter of the prior year, primarily due to: additional earnings from the delivery of three 50 percent-owned LNG carrier newbuildings in late-2019 and the commencement of terminal use payments to the Partnership’s 30 percent-owned Bahrain LNG Terminal; fewer off-hire days and lower net interest expense; partially offset by lower earnings as a result of the sale of non-core vessels and lower charter rates earned by three 52 percent-owned LNG carriers.

In addition, GAAP net income was negatively impacted by increases in unrealized credit loss provisions related to the adoption of the new accounting standard (ASC 326) at the beginning of 2020 as a result of a decline in the estimated charter-free values of certain types of LNG carriers; partially offset by unrealized gains on non-designated derivative instruments in the Partnership’s equity-accounted joint ventures in the third quarter of 2020 compared to losses in the third quarter of 2019.

CEO Commentary

“We generated strong earnings and cash flow again this quarter, despite a higher than usual number of scheduled drydockings,” commented Mark Kremin, President and Chief Executive Officer of Teekay Gas Group Ltd. “We expect our earnings and cash flows to increase in the fourth quarter of 2020 and we continue to be on track to meeting the 2020 financial guidance we provided earlier this year.”

“I’m also pleased to report that we are delivering on a number of our strategic priorities,” continued Mr. Kremin. “During the third quarter of 2020, Teekay LNG reduced its total net debt⁽²⁾ by nearly $95 million, or 8 percent on an annualized basis, and reduced total net interest expense⁽²⁾ by over $6 million, or nearly 9 percent, compared with the second quarter of 2020. Importantly, we expect this trend of debt reduction and declining interest expense to continue while simultaneously paying an annual distribution of $1.00 per common unit, which is well-covered by our stable earnings and cash flows. In addition, during the recent market surge in demand for LNG carriers, we locked-in the 52 percent-owned Marib Spirit on a new fixed-rate contract to early-2022 at an improved rate. We approach the end of the year with the confidence that we have already secured fixed-rate contracts for our LNG fleet covering 96 percent of 2021, providing the Partnership with high fleet utilization and stable cash flows.”

Mr. Kremin concluded, “I want to thank our seafarers and onshore colleagues for their continued dedication to providing safe and uninterrupted service to our customers during this COVID-19 pandemic. I am pleased to report that, with the reopening of many jurisdictions during the summer months, we were able to successfully transition nearly all of our crew members across the fleet.”

(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).

(2)	Includes Teekay LNG’s proportionate share of net debt and net interest expense in its equity-accounted joint ventures. Total net interest expense includes realized losses on non-designated derivative instruments at the joint venture level of $3.1 million and $2.3 million for the three months ended September 30, 2020 and June 30, 2020, respectively.

Summary of Recent Events

Chartering Activities

In October 2020, the charterer of the 52 percent-owned Marib Spirit exercised its options to extend the current charter by 14 months at a higher charter rate, extending the vessel’s charter coverage to early-2022.

Financing Activities

In August 2020, Teekay LNG issued the equivalent of $112 million of unsecured, 5-year notes in the Norwegian Bond market at an all-in fixed coupon rate of 5.74 percent. The net proceeds from the bond issuance were used to repay drawings on the Partnership’s revolving credit facilities and as a result, the new bond issuance did not increase the Partnership’s financial leverage.

Operating Results

The following table highlights certain financial information for Teekay LNG’s segments: the Liquefied Natural Gas Segment, the Liquefied Petroleum Gas Segment and until the sale of our last conventional tanker in October 2019, the Conventional Tanker Segment (please refer to the “Teekay LNG’s Fleet” section of this release below and Appendices D and E for further details).


	Three Months Ended
	September 30, 2020					September 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	138,953	9,982		—	148,935	137,212	10,846		1,597		149,655
Income (loss) from vessel operations	70,313	(716	)	—	69,597	73,236	(1,124	)	(501	)	71,611
Equity income	22,674	1,672		—	24,346	20,262	1,034		—		21,296
NON-GAAP FINANCIAL COMPARISON
Consolidated adjusted EBITDA⁽ⁱ⁾	104,473	1,227		—	105,700	109,556	867		292		110,715
Adjusted EBITDA from equity-accounted vessels⁽ⁱ⁾	71,683	9,519		—	81,202	59,646	9,855		—		69,501
Total adjusted EBITDA⁽ⁱ⁾	176,156	10,746		—	186,902	169,202	10,722		292		180,216

(i)

Liquefied Natural Gas Segment

Income from vessel operations and consolidated adjusted EBITDA⁽¹⁾ for the liquefied natural gas segment for the three months ended September 30, 2020, compared to the same quarter of the prior year, decreased primarily due to a reduction in earnings upon the sales of the WilForce and WilPride LNG carriers in January 2020; and an increase in vessel operating expenses due to timing of repairs and maintenance for certain of the Partnership’s LNG carriers during the third quarter of 2020. These decreases were partially offset by fewer off-hire days in the third quarter of 2020 relating to scheduled dry dockings for certain of the Partnership’s LNG carriers.

Equity income and adjusted EBITDA from equity-accounted vessels⁽¹⁾ for the liquefied natural gas segment for the three months ended September 30, 2020, compared to the same quarter of the prior year, increased primarily due to the deliveries of three ARC7 LNG carrier newbuildings between August and December 2019 to the Yamal LNG Joint Venture and commencement of terminal use payments in January 2020 to the Bahrain LNG Joint Venture. These increases were partially offset by lower earnings from the MALT Joint Venture as a result of lower charter rates earned upon redeployment of the Arwa Spirit and Marib Spirit during the second quarter of 2020 and the Methane Spirit in July 2020, and the recognition of drydock hire revenue for the Meridian Spirit in the third quarter of 2019. In addition, GAAP equity income was negatively impacted by increases in unrealized credit loss provisions in the third quarter of 2020 related to the adoption of the new accounting standard (ASC 326) at the beginning of 2020 as a result of a decline in the estimated charter-free values of certain types of LNG carriers; partially offset by unrealized gains on non-designated derivative instruments in the Partnership’s equity-accounted joint ventures in the third quarter of 2020 compared to losses in the third quarter of 2019.

Liquefied Petroleum Gas Segment

Loss from vessel operations, consolidated adjusted EBITDA⁽¹⁾ and equity income and adjusted EBITDA from equity-accounted vessels⁽¹⁾for the liquefied petroleum gas (LPG) segment for the three months ended September 30, 2020 were comparable to the same quarter of the prior year.

Conventional Tanker Segment

There were no results from vessel operations for the conventional tanker segment for the three months ended September 30, 2020, as the last of the Partnership’s conventional tanker, the Alexander Spirit, was sold in October of 2019.

(1)

Teekay LNG’s Fleet

The following table summarizes the Partnership’s fleet as of November 1, 2020. In addition, the Partnership owns a 30 percent interest in an LNG regasification terminal in Bahrain.

	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.

Liquidity

As of September 30, 2020, the Partnership had total liquidity of $430.8 million (comprised of $201.0 million in cash and cash equivalents and $229.8 million in undrawn credit facilities) compared to $306.3 million as of June 30, 2020.

Conference Call

The Partnership plans to host a conference call on Thursday, November 12, 2020 at 1:00 p.m. (ET) to discuss the results for the third quarter of 2020. All unitholders and interested parties are invited to listen to the live conference call by choosing from the following options:

By dialing 1 (800) 367-2403 or 1 (647) 490-5367, if outside North America, and quoting conference ID code 6710573.
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).

An accompanying Third Quarter of 2020 Earnings Presentation will also be available at www.teekay.com in advance of the conference call start time.

About Teekay LNG Partners L.P.

Teekay LNG Partners is one of the world’s largest independent owners and operators of LNG carriers, providing LNG and LPG services primarily under long-term, fee-based charter contracts through its interests in 47 LNG carriers, 23 mid-size LPG carriers, and seven multi-gas carriers. The Partnership’s ownership interests in these vessels range from 20 to 100 percent. In addition, the Partnership owns a 30 percent interest in an LNG regasification terminal. Teekay LNG Partners is a publicly-traded master limited partnership formed by Teekay Corporation (NYSE: TK) as part of its strategy to expand its operations in the LNG and LPG shipping sectors.

Teekay LNG Partners’ common units and preferred units trade on the New York Stock Exchange under the symbols “TGP”, “TGP PR A” and “TGP PR B”, respectively.

For Investor Relations enquiries contact:

Ryan Hamilton
Tel: +1 (604) 609-2963
Website: www.teekay.com

Definitions and Non-GAAP Financial Measures

This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the SEC. These non-GAAP financial measures which include Adjusted Net Income Attributable to the Partners and Preferred Unitholders, Distributable Cash Flow, Total Adjusted Revenues and Adjusted EBITDA, are intended to provide additional information and should not be considered substitutes for measures of performance prepared in accordance with GAAP. In addition, these measures do not have standardized meanings across companies, and may not be comparable to similar measures presented by other companies. These non-GAAP measures are used by management, and the Partnership believes that these supplementary metrics assist investors and other users of its financial reports in comparing financial and operating performance of the Partnership across reporting periods and with other companies.

Non-GAAP Financial Measures

Total Adjusted Revenues represents the Partnership’s voyage revenues from its consolidated vessels, as shown in the Partnership’s Consolidated Statements of Income, and its proportionate ownership percentage of the voyage revenues from its equity-accounted joint ventures, as shown in Appendix E of this release, less the Partnership’s proportionate share of voyage revenues earned directly from its equity-accounted joint ventures. Please refer to Appendix C and E of this release for a reconciliation of this non-GAAP financial measure to voyage revenues and equity income, the most directly comparable GAAP measures reflected in the Partnership’s consolidated financial statements. The Partnership’s equity-accounted joint ventures are generally required to distribute all available cash to their owners. However, the timing and amount of dividends from each of the Partnership’s equity-accounted joint ventures may not necessarily coincide with the operating cash flow generated from each respective equity-accounted joint venture. The timing and amount of dividends distributed by the Partnership’s equity-accounted joint ventures are affected by the timing and amounts of debt repayments in the joint ventures, capital requirements of the joint ventures, as well as any cash reserves maintained in the joint ventures for operations, capital expenditures and/or as required under financing agreements.

Adjusted EBITDA represents net income before interest, taxes, 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 unrealized credit loss provisions, unrealized gains or losses on non-designated derivative instruments, foreign currency exchange gains or losses, adjustments for direct financing and sales-type leases to a cash basis, and certain other income or expenses. Adjusted EBITDA also excludes realized gains or losses on interest rate swaps as management, in assessing the Partnership’s performance, views these gains or losses as an element of interest expense and realized gains or losses on derivative instruments resulting from amendments or terminations of the underlying instruments. Consolidated Adjusted EBITDA represents Adjusted EBITDA from vessels that are consolidated on the Partnership’s financial statements. Adjusted EBITDA from Equity-Accounted Vessels represents the Partnership’s proportionate share of Adjusted EBITDA from its equity-accounted vessels. The Partnership does not have the unilateral ability to determine whether the cash generated by its equity-accounted vessels is retained within the entity in which the Partnership holds the equity-accounted investments or distributed to the Partnership and other owners. In addition, the Partnership does not control the timing of any such distributions to the Partnership and other owners. Adjusted EBITDA is a non-GAAP financial measure used by certain investors and management to measure the operational performance of companies. Please refer to Appendices C and E of this release for reconciliations of Adjusted EBITDA to net income and equity income, respectively, which are the most directly comparable GAAP measures reflected in the Partnership’s consolidated financial statements.

Adjusted Net Income Attributable
to the Partners and Preferred Unitholders excludes items of income or loss from GAAP net income that are typically excluded by securities analysts in their published estimates of the Partnership’s financial results. The Partnership believes that certain investors use this information to evaluate the Partnership’s financial performance, as does management. Please refer to Appendix A of this release for a reconciliation of this non-GAAP financial measure to net income, and refer to footnote (3) of the Consolidated Statements of Income for a reconciliation of adjusted equity income to equity income, the most directly comparable GAAP measure reflected in the Partnership’s consolidated financial statements.

Distributable Cash Flow (DCF) represents GAAP net income adjusted for depreciation and amortization expense, deferred income tax and other non-cash items, estimated maintenance capital expenditures, unrealized gains and losses from non-designated derivative instruments, unrealized credit loss provisions, distributions relating to equity financing of newbuilding installments, distributions relating to preferred units, adjustments for direct financing and sales-type leases to a cash basis, unrealized foreign currency exchange gains or losses, and the Partnership’s proportionate share of such items in its equity-accounted for investments. Maintenance capital expenditures represent those capital expenditures required to maintain over the long-term the operating capacity of, or the revenue generated by, the Partnership’s capital assets. DCF is a quantitative standard used in the publicly-traded partnership investment community and by management to assist in evaluating financial performance. Please refer to Appendix B of this release for a reconciliation of this non-GAAP financial measure to net income, the most directly comparable GAAP measure reflected in the Partnership’s consolidated financial statements.

Teekay LNG Partners L.P.
Consolidated Statements of Income
(in thousands of U.S. Dollars, except unit and per unit data)

	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2020		2020		2019		2020		2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Voyage revenues	148,935		148,205		149,655		437,027		452,459

Voyage expenses	(3,950	)	(5,329	)	(4,961	)	(11,596	)	(16,759	)
Vessel operating expenses	(30,642	)	(28,407	)	(27,321	)	(85,153	)	(80,879	)
Time-charter hire expense	(5,980	)	(5,368	)	(5,336	)	(17,270	)	(14,007	)
Depreciation and amortization	(32,601	)	(31,629	)	(34,248	)	(96,869	)	(103,712	)
General and administrative expenses	(6,165	)	(7,883	)	(5,393	)	(20,215	)	(17,692	)
Write-down of vessels⁽¹⁾	—		—		(785	)	(45,000	)	(785	)
Restructuring charges⁽²⁾	—		—		—		—		(2,976	)
Income from vessel operations	69,597		69,589		71,611		160,924		215,649

Equity income⁽³⁾	24,346		32,155		21,296		56,874		28,612
Interest expense	(30,528	)	(35,143	)	(40,574	)	(102,375	)	(123,809	)
Interest income	1,406		1,697		1,025		5,473		3,063
Realized and unrealized loss on non-designated derivative instruments⁽⁴⁾	(1,327	)	(8,516	)	(3,270	)	(30,314	)	(17,713	)
Foreign currency exchange (loss) gain⁽⁵⁾	(7,853	)	(11,624	)	2,879		(14,738	)	(5,095	)
Other expense⁽⁶⁾	(14,149	)	(679	)	(1,828	)	(15,189	)	(2,064	)
Net income before income tax expense (recovery)	41,492		47,479		51,139		60,655		98,643
Income tax expense (recovery)	(1,420	)	1,804		(788	)	(2,128	)	(5,115	)
Net income	40,072		49,283		50,351		58,527		93,528

Non-controlling interest in net (loss) income	(203	)	4,349		2,983		6,312		8,108
Preferred unitholders’ interest in net income	6,425		6,425		6,426		19,275		19,276
General partner’s interest in net income	595		713		820		519		1,324
Limited partners’ interest in net income	33,255		37,796		40,122		32,421		64,820
Limited partners’ interest in net income per common unit:
• Basic	0.38		0.46		0.51		0.40		0.83
• Diluted	0.38		0.46		0.51		0.39		0.83
Weighted-average number of common units outstanding:
• Basic	86,951,234		82,197,665		78,012,514		82,010,753		78,402,239
• Diluted	87,041,046		82,262,235		78,106,770		82,109,826		78,488,331
Total number of common units outstanding at end of period	86,951,234		86,927,558		77,509,411		86,951,234		77,509,411

(1)	In the first quarter of 2020, the Partnership wrote-down six wholly-owned multi-gas carriers to their estimated fair values. The total impairment charge of $45.0 million related to the six multi-gas carriers is included in write-down of vessels for the nine months ended September 30, 2020. In September 2019, the Partnership recorded a write-down of $0.8 million for the three and nine months ended September 30, 2019 on the Alexander Spirit, which was sold in October 2019.

(2)	In January 2019, the Toledo Spirit conventional tanker was sold and as a result of this sale, the Partnership recorded restructuring charges of $3.0 million for the nine months ended September 30, 2019.

(3)	The Partnership’s proportionate share of items within equity income as identified in Appendix A of this release are 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			Nine Months Ended
	September 30,	June 30,	September 30,	September 30,	September 30,
	2020	2020	2019	2020	2019
Equity income	24,346	32,155	21,296	56,874	28,612
Proportionate share of unrealized (gain) loss on non-designated interest rate swaps	(2,680)	3,806	5,150	23,330	14,612
Proportionate share of unrealized credit loss provisions^(a)	7,099	(423)	—	15,656	—
Proportionate share of other items	1,167	362	(77)	990	1,392
Equity income adjusted for items in Appendix A	29,932	35,900	26,369	96,850	44,616

(a) Related to adoption of new accounting standard ASC 326 effective January 1, 2020.

(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 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			Nine Months Ended
	September 30,	June 30,	September 30,	September 30,	September 30,
	2020	2020	2019	2020	2019
Realized losses relating to:
Interest rate swap agreements	(4,947)	(3,662)	(2,621)	(11,520)	(7,398)
Foreign currency forward contracts	—	—	—	(241)	—
	(4,947)	(3,662)	(2,621)	(11,761)	(7,398)
Unrealized gains (losses) relating to:
Interest rate swap agreements	3,620	(4,854)	(215)	(18,755)	(9,740)
Foreign currency forward contracts	—	—	(434)	202	(535)
Toledo Spirit time-charter derivative	—	—	—	—	(40)
	3,620	(4,854)	(649)	(18,553)	(10,315)
Total realized and unrealized losses on non-designated derivative instruments	(1,327)	(8,516)	(3,270)	(30,314)	(17,713)

(5)	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.

	Foreign currency exchange (loss) gain includes realized (losses) gains relating to the amounts the Partnership paid to settle the Partnership’s non-designated cross currency swaps that were entered into as economic hedges in relation to the Partnership’s Norwegian Krone (NOK) denominated unsecured bonds. Foreign currency exchange gain (loss) also includes unrealized gains (losses) relating to the change in fair value of such derivative instruments and unrealized gain (losses) on the revaluation of the NOK bonds as detailed in the table below:

	Three Months Ended			Nine Months Ended
	September 30,	June 30,	September 30,	September 30,	September 30,
	2020	2020	2019	2020	2019
Realized losses on cross-currency swaps	(1,669)	(1,430)	(1,431)	(4,916)	(3,952)
Realized losses on cross-currency swaps maturity	—	(33,844)	—	(33,844)	—
Realized gains on repurchase of NOK bonds	—	33,844	—	33,844	—
Unrealized gains (losses) on cross currency swaps	1,490	45,881	(23,759)	(2,169)	(25,818)
Unrealized (losses) gains on revaluation of NOK bonds	(1,836)	(53,794)	22,167	(1,657)	17,687

(6)	Includes unrealized credit loss provisions of $14.4 million and $14.6 million for the three and nine months ended September 30, 2020, respectively, related to the Partnership’s adoption of ASC 326 effective January 1, 2020.

Teekay LNG Partners L.P.
Consolidated Balance Sheets
(in thousands of U.S. Dollars)

	As at September 30,		As at June 30,		As at December 31,
	2020		2020		2019
	(unaudited)		(unaudited)		(unaudited)
ASSETS
Current
Cash and cash equivalents	201,036		226,328		160,221
Restricted cash – current	11,224		11,544		53,689
Accounts receivable	6,753		9,694		13,460
Prepaid expenses	9,706		10,891		6,796
Current portion of derivative assets	—		—		355
Current portion of net investments in direct financing and sales-type leases, net	13,762		14,014		273,986
Advances to affiliates	1,953		3,025		5,143
Other current assets	237		237		238
Total current assets	244,671		275,733		513,888

Restricted cash – long-term	42,577		54,603		39,381

Vessels and equipment
At cost, less accumulated depreciation	1,244,123		1,256,434		1,335,397
Vessels related to finance leases, at cost, less accumulated depreciation	1,664,059		1,675,168		1,691,945
Operating lease right-of-use asset	24,179		27,568		34,157
Total vessels and equipment	2,932,361		2,959,170		3,061,499
Investments in and advances, net to equity-accounted joint ventures	1,092,724		1,082,346		1,155,316
Net investments in direct financing and sales-type leases, net	508,561		525,812		544,823
Other assets	20,025		17,633		14,738
Derivative assets	—		—		1,834
Intangible assets – net	36,724		38,938		43,366
Goodwill	34,841		34,841		34,841
Total assets	4,912,484		4,989,076		5,409,686
LIABILITIES AND EQUITY
Current
Accounts payable	2,319		4,270		5,094
Accrued liabilities	84,975		79,832		76,752
Unearned revenue	32,685		30,185		28,759
Current portion of long-term debt	291,720		295,282		393,065
Current obligations related to finance leases	71,441		70,955		69,982
Current portion of operating lease liabilities	13,841		13,681		13,407
Current portion of derivative liabilities	35,616		34,997		38,458
Advances from affiliates	13,970		18,271		7,003
Total current liabilities	546,567		547,473		632,520
Long-term debt	1,201,909		1,263,202		1,438,331
Long-term obligations related to finance leases	1,287,044		1,305,056		1,340,922
Long-term operating lease liabilities	10,338		13,887		20,750
Derivative liabilities	81,991		88,336		51,006
Other long-term liabilities	53,088		52,635		49,182
Total liabilities	3,180,937		3,270,589		3,532,711
Equity
Limited partners – common units	1,459,599		1,447,690		1,543,598
Limited partners – preferred units	285,159		285,159		285,159
General partner	46,081		45,868		50,241
Accumulated other comprehensive loss	(111,967	)	(116,313	)	(57,312	)
Partners’ equity	1,678,872		1,662,404		1,821,686
Non-controlling interest	52,675		56,083		55,289
Total equity	1,731,547		1,718,487		1,876,975
Total liabilities and total equity	4,912,484		4,989,076		5,409,686

Teekay LNG Partners L.P.
Consolidated Statements of Cash Flows
(in thousands of U.S. Dollars)

	Nine Months Ended
	September 30,		September 30,
	2020		2019
	(unaudited)		(unaudited)
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
Net income	58,527		93,528
Non-cash and non-operating items:
Unrealized loss on non-designated derivative instruments	18,553		10,315
Depreciation and amortization	96,869		103,712
Write-down of vessels	45,000		785
Unrealized foreign currency exchange loss (gain) including the effect of settlement of cross currency swaps upon maturity	10,697		(1,213	)
Equity income, net of distributions received $32,297 (2019 – $25,374)	(24,577	)	(3,238	)
Amortization of deferred financing issuance costs included in interest expense	4,401		6,722
Change in unrealized credit loss provisions included in other expense	14,557		—
Other non-cash items	3,595		6,173
Change in non-cash operating assets and liabilities:
Receipts from direct financing and sales-type leases	270,973		9,242
Expenditures for dry docking	(1,984	)	(8,836	)
Other non-cash operating assets and liabilities	15,960		(15,227	)
Net operating cash flow	512,571		201,963
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt	561,127		158,924
Scheduled repayments of long-term debt and settlement of related swaps	(220,875	)	(95,730	)
Prepayments of long-term debt	(687,061	)	(183,787	)
Financing issuance costs	(5,111	)	(989	)
Proceeds from financing related to sales and leaseback of vessels	—		317,806
Scheduled repayments of obligations related to finance leases	(52,419	)	(54,484	)
Extinguishment of obligations related to finance leases	—		(111,617	)
Repurchase of common units	(15,635	)	(25,729	)
Cash distributions paid	(75,845	)	(60,926	)
Dividends paid to non-controlling interests	(3,390	)	(90	)
Acquisition of non-controlling interest in certain of the Partnership’s subsidiaries	(2,219	)	—
Net financing cash flow	(501,428	)	(56,622	)
INVESTING ACTIVITIES
Expenditures for vessels and equipment	(9,597	)	(91,503	)
Capital contributions and advances to equity-accounted joint ventures	—		(42,171	)
Net investing cash flow	(9,597	)	(133,674	)
Increase in cash, cash equivalents and restricted cash	1,546		11,667
Cash, cash equivalents and restricted cash, beginning of the period	253,291		222,864
Cash, cash equivalents and restricted cash, end of the period	254,837		234,531

Teekay LNG Partners L.P.
Appendix A – Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income
(in thousands of U.S. Dollars)

	Three Months Ended
	September 30,		June 30,		September 30,
	2020		2020		2019
	(unaudited)		(unaudited)		(unaudited)
Net income – GAAP basis	40,072		49,283		50,351
Less: net loss (income) attributable to non-controlling interests	203		(4,349	)	(2,983	)
Net income attributable to the partners and preferred unitholders	40,275		44,934		47,368
Add (subtract) specific items affecting net income:
Write-down of vessels⁽¹⁾	—		—		785
Foreign currency exchange losses (gains)⁽²⁾	6,184		10,194		(4,607	)
Unrealized credit loss provisions, unrealized gains and losses on non-designated derivative instruments and other items from equity-accounted investees⁽³⁾	5,586		3,745		5,073
Unrealized (gains) losses on non-designated derivative instruments⁽⁴⁾	(3,620	)	4,854		649
Unrealized credit loss provisions and other items⁽⁵⁾	14,397		(1,619	)	1,417
Non-controlling interests’ share of items above⁽⁶⁾	(3,889	)	535		(171	)
Total adjustments	18,658		17,709		3,146
Adjusted net income attributable to the partners and preferred unitholders	58,933		62,643		50,514

Preferred unitholders’ interest in adjusted net income	6,425		6,425		6,426
General partner’s interest in adjusted net income	923		1,044		882
Limited partners’ interest in adjusted net income	51,585		55,174		43,206
Limited partners’ interest in adjusted net income per common unit, basic	0.59		0.67		0.55
Weighted-average number of common units outstanding, basic	86,951,234		82,197,665		78,012,514

(1)	See Note 1 to the Consolidated Statements of Income included in this release for further details.
(2)	Foreign currency 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 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 included in this release for further details.
(3)	Reflects the proportionate share of unrealized credit loss provisions and unrealized gains or losses due to changes in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes in the Partnership’s equity-accounted investees. See Note 3 to the Consolidated Statements of Income included in this release for further details.
(4)	Reflects the unrealized losses due to changes in the mark-to-market value of the Partnership’s derivative instruments that are not designated as hedges for accounting purposes. See Note 4 to the Consolidated Statements of Income included in this release for further details.
(5)	For the three months ended September 30, 2020, includes unrealized credit loss provisions of $14.4 million related to the Partnership’s adoption of ASC 326 effective January 1, 2020.
(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 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.

Teekay LNG Partners L.P.
Appendix B – Reconciliation of Non-GAAP Financial Measures
Distributable Cash Flow (DCF)
(in thousands of U.S. Dollars, except units outstanding and per unit data)

	Three Months Ended
	September 30,		June 30,		September 30,
	2020		2020		2019
	(unaudited)		(unaudited)		(unaudited)

Net income	40,072		49,283		50,351
Add:
Partnership’s share of equity-accounted joint ventures’ DCF net of estimated maintenance capital expenditures⁽¹⁾	38,065		42,725		34,319
Depreciation and amortization	32,601		31,629		34,248
Unrealized credit loss provisions	14,397		260		—
Foreign currency exchange loss (gain)	6,184		10,194		(4,607	)
Direct finance and sale-type lease payments received in excess of revenue recognized and other adjustments	3,502		3,392		4,071
Write-down of vessels	—		—		785
Distributions relating to equity financing of newbuildings	—		—		1,012
Subtract:
Deferred income tax and other non-cash items	(709	)	271		801
Unrealized (gain) loss on non-designated derivative instruments	(3,620	)	4,854		649
Distributions relating to preferred units	(6,425	)	(6,425	)	(6,426	)
Estimated maintenance capital expenditures	(14,683	)	(14,513	)	(17,562	)
Equity income	(24,346	)	(32,155	)	(21,296	)
Distributable Cash Flow before non-controlling interest	85,038		89,515		76,345
Non-controlling interests’ share of DCF before estimated maintenance capital expenditures	(5,870	)	(6,345	)	(5,420	)
Distributable Cash Flow	79,168		83,170		70,925
Amount of cash distributions attributable to the General Partner	(389	)	(411	)	(301	)
Limited partners’ Distributable Cash Flow	78,779		82,759		70,624
Weighted-average number of common units outstanding, basic	86,951,234		82,197,665		78,012,514
Distributable Cash Flow per limited partner common unit	0.91		1.01		0.91

(1)	The estimated maintenance capital expenditures relating to the Partnership’s share of equity-accounted joint ventures were $15.4 million, $15.2 million and $11.8 million for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

Teekay LNG Partners L.P.
Appendix C – Reconciliation of Non-GAAP Financial Measures
Total Adjusted Revenues and Total Adjusted EBITDA
(in thousands of U.S. Dollars)

	Three Months Ended
	September 30,		June 30,		September 30,
	2020		2020		2019
	(unaudited)		(unaudited)		(unaudited)
Voyage revenues	148,935		148,205		149,655
Partnership’s proportionate share of voyage revenues from its equity-accounted joint ventures (See Appendix E)	106,626		111,365		90,479
Less the Partnership’s proportionate share of voyage revenues earned directly from its equity-accounted joint ventures	(6,021	)	(5,569	)	(5,501	)
Total adjusted revenues	249,540		254,001		234,633

	Three Months Ended
	September 30,		June 30,		September 30,
	2020		2020		2019
	(unaudited)		(unaudited)		(unaudited)
Net income	40,072		49,283		50,351
Depreciation and amortization	32,601		31,629		34,248
Interest expense, net of interest income	29,122		33,446		39,549
Income tax expense (recovery)	1,420		(1,804	)	788
EBITDA	103,215		112,554		124,936

Add (subtract) specific income statement items affecting EBITDA:
Foreign currency exchange loss (gain)	7,853		11,624		(2,879	)
Other expense	14,149		679		1,828
Equity income	(24,346	)	(32,155	)	(21,296	)
Realized and unrealized loss on non-designated derivative instruments	1,327		8,516		3,270
Write-down of vessels	—		—		785
Direct finance and sale-type lease payments received in excess of revenue recognized and other adjustments	3,502		3,392		4,071
Consolidated adjusted EBITDA	105,700		104,610		110,715
Adjusted EBITDA from equity-accounted vessels (See Appendix E)	81,202		87,730		69,501
Total adjusted EBITDA	186,902		192,340		180,216

Teekay LNG Partners L.P.
Appendix D – Reconciliation of Non-GAAP Financial Measures
Consolidated Adjusted EBITDA by Segment
(in thousands of U.S. Dollars)

	Three Months Ended September 30, 2020
	(unaudited)
	Liquefied Natural Gas Segment		Liquefied Petroleum Gas Segment		Conventional Tanker Segment		Total
Voyage revenues	138,953		9,982		—		148,935
Voyage expenses	(427	)	(3,523	)	—		(3,950	)
Vessel operating expenses	(25,871	)	(4,771	)	—		(30,642	)
Time-charter hire expenses	(5,980	)	—		—		(5,980	)
Depreciation and amortization	(30,658	)	(1,943	)	—		(32,601	)
General and administrative expenses	(5,704	)	(461	)	—		(6,165	)
Income (loss) from vessel operations	70,313		(716	)	—		69,597
Depreciation and amortization	30,658		1,943		—		32,601
Direct finance and sales-type lease payments received in excess of revenue recognized and other adjustments	3,502		—		—		3,502
Consolidated adjusted EBITDA	104,473		1,227		—		105,700

	Three Months Ended September 30, 2019
	(unaudited)
	Liquefied Natural Gas Segment		Liquefied Petroleum Gas Segment		Conventional Tanker Segment		Total
Voyage revenues	137,212		10,846		1,597		149,655
Voyage recoveries (expenses)	286		(4,778	)	(469	)	(4,961	)
Vessel operating expenses	(21,890	)	(4,804	)	(627	)	(27,321	)
Time-charter hire expenses	(5,336	)	—		—		(5,336	)
Depreciation and amortization	(32,249	)	(1,991	)	(8	)	(34,248	)
General and administrative expenses	(4,787	)	(397	)	(209	)	(5,393	)
Write-down of vessels	—		—		(785	)	(785	)
Income (loss) from vessel operations	73,236		(1,124	)	(501	)	71,611
Depreciation and amortization	32,249		1,991		8		34,248
Write-down of vessels	—		—		785		785
Direct finance and sales-type lease payments received in excess of revenue recognized and other adjustments	4,071		—		—		4,071
Consolidated adjusted EBITDA	109,556		867		292		110,715

Teekay LNG Partners L.P.
Appendix E – Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA from Equity-Accounted Vessels
(in thousands of U.S. Dollars)

	Three Months Ended
	September 30, 2020				September 30, 2019
	(unaudited)				(unaudited)
	At		Partnership’s		At		Partnership’s
	100%		Portion⁽¹⁾		100%		Portion⁽¹⁾
Voyage revenues	246,488		106,626		205,727		90,479
Voyage expenses	(2,815	)	(1,367	)	(1,858	)	(928	)
Vessel operating expenses, time-charter hire expenses and general and administrative expenses	(74,398	)	(32,778	)	(57,786	)	(25,564	)
Depreciation and amortization	(26,485	)	(13,328	)	(28,891	)	(13,962	)
Income from vessel operations of equity-accounted vessels	142,790		59,153		117,192		50,025
Net interest expense	(61,584	)	(25,133	)	(56,628	)	(23,221	)
Income tax expense	(449	)	(235	)	(32	)	(16	)
Other items including realized and unrealized losses on derivative instruments and unrealized credit loss provisions⁽²⁾	(26,623	)	(9,439	)	(18,270	)	(5,492	)
Net income / equity income of equity-accounted vessels	54,134		24,346		42,262		21,296
Net income / equity income of equity-accounted LNG vessels	50,627		22,674		40,032		20,262
Net income / equity income of equity-accounted LPG vessels	3,507		1,672		2,230		1,034

Net income / equity income of equity-accounted vessels	54,134		24,346		42,262		21,296
Depreciation and amortization	26,485		13,328		28,891		13,962
Net interest expense	61,584		25,133		56,628		23,221
Income tax expense	449		235		32		16
EBITDA from equity-accounted vessels	142,652		63,042		127,813		58,495

Add (subtract) specific income statement items affecting EBITDA:
Other items including realized and unrealized losses on derivative instruments and unrealized credit loss provisions⁽²⁾	26,623		9,439		18,270		5,492
Direct finance and sale-type lease payments received in excess of revenue recognized	26,752		9,677		17,701		6,470
Amortization of in-process contracts	(1,759	)	(956	)	(1,758	)	(956	)
Adjusted EBITDA from equity-accounted vessels	194,268		81,202		162,026		69,501
Adjusted EBITDA from equity-accounted LNG vessels	175,231		71,683		142,311		59,646
Adjusted EBITDA from equity-accounted LPG vessels	19,037		9,519		19,715		9,855

(1)	The Partnership’s equity-accounted vessels for the three months ended September 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 September 30, 2020, compared to 22 owned and in-chartered LPG carriers as at September 30, 2019; the Partnership’s ownership interest ranging from 20 to 30 percent in four LNG carriers as at September 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 September 30, 2020, compared to four ARC7 LNG carriers and two ARC7 LNG carrier newbuildings as at September 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 loss provisions relate to the Partnership’s adoption of ASC 326 effective January 1, 2020.

Teekay LNG Partners L.P.
Appendix F – Summarized Financial Information of Equity-Accounted Joint Ventures
(in thousands of U.S. Dollars)

	As at September 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	598,177	250,977		509,065	210,736
Other current assets	68,446	26,702		62,566	27,719
Property, plant and equipment, including owned vessels, vessels related to finance leases and operating lease right-of-use assets	2,004,583	1,023,826		3,112,349	1,375,570
Net investments in sales-type and direct financing leases, current and non-current	5,420,362	2,091,072		4,589,139	1,856,709
Other non-current assets	77,002	48,001		50,967	41,015
Total assets	8,168,570	3,440,578		8,324,086	3,511,749

Current portion of long-term debt and obligations related to finance leases and operating leases	540,300	244,754		315,247	136,573
Current portion of derivative liabilities	65,440	25,622		34,618	13,658
Other current liabilities	172,226	70,813		153,816	66,224
Long-term debt and obligations related to finance leases and operating leases	4,606,936	1,844,580		5,026,123	2,041,595
Shareholders’ loans, current and non-current	346,969	129,550		346,969	126,546
Derivative liabilities	311,665	126,461		162,640	66,060
Other long-term liabilities	62,650	30,950		64,196	32,323
Equity	2,062,384	967,848		2,220,477	1,028,770
Total liabilities and equity	8,168,570	3,440,578		8,324,086	3,511,749

Investments in equity-accounted joint ventures		967,848			1,028,770
Advances to equity-accounted joint ventures		129,550			126,546
Unrealized credit loss provisions⁽²⁾		(4,674	)		—
Investments in and advances, net to equity-accounted joint ventures		1,092,724			1,155,316

(1)	The Partnership’s equity-accounted vessels as at September 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 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)	The unrealized credit loss provisions relate to the Partnership’s adoption of ASC 326 effective January 1, 2020.

Forward-Looking Statements

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 statements, among other things, regarding: the impact of COVID-19 and related global events on the Partnership’s operations and cash flows; expected increase in the Partnership’s earnings and cash flows commencing in the fourth quarter of 2020; the Partnership’s ability to achieve previously disclosed financial guidance for 2020; fixed charter coverage for the Partnership’s LNG fleet for the remainder of 2020 and 2021; the Partnership’s operational performance and cost competitiveness; expected reductions in the Partnership’s interest costs as it continues to reduce its debt levels; and the continued performance of the Partnership’s and its joint ventures’ charter contracts. 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: changes in production of LNG or LPG, either generally or in particular regions; changes in trading patterns or timing of start-up of new LNG liquefaction and regasification projects significantly affecting overall vessel tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; the potential for early termination of long-term contracts of existing vessels in the Partnership’s fleet; higher than expected costs and expenses, including as a result of off-hire days or dry-docking requirements; delays in the Partnership’s ability to successfully and timely complete dry dockings; general market conditions and trends, including spot, multi-month and multi-year charter rates; inability of customers of the Partnership or any of its joint ventures to make future payments under contracts; potential further delays to the formal commencement of commercial operations of the Bahrain Regasification Terminal; the inability of the Partnership to renew or replace long-term contracts on existing vessels; potential lack of cash flow to reduce balance sheet leverage or of excess capital available to allocate towards returning capital to unitholders; and other factors discussed in Teekay LNG Partners’ filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2019. The Partnership expressly disclaims any obligation 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.

November 12, 2020 2:03 am

Teekay Tankers Ltd. Reports Third Quarter 2020 Results

Highlights

Reported GAAP net loss of $44.4 million, or $1.32 per share, and adjusted net income⁽¹⁾ of $3.1 million, or $0.09 per share, in the third quarter of 2020 (excluding $45.0 million of asset write-downs and other items listed in Appendix A to this release).
Total Adjusted EBITDA⁽¹⁾ of $46.2 million in the third quarter of 2020.
Generated approximately $31 million of free cash flow⁽¹⁾ in the third quarter of 2020, contributing to over a $47 million reduction in net debt⁽²⁾ and maintaining a strong liquidity position of approximately $470 million as of September 30, 2020.
Secured a one-year time charter-out contract for an Aframax tanker in the third quarter; approximately 20 percent of the fleet is currently operating under fixed-rate charters at an average rate of $36,300 per day.
In October 2020, repurchased two Aframax tankers that were previously on sale-leasebacks for $29.6 million.
In August 2020, completed refinancing of four Suezmax tankers with a new 3-year, $67 million term loan; Teekay Tankers now has no debt maturities until 2023.

VANCOUVER, British Columbia, Nov. 12, 2020 (GLOBE NEWSWIRE) — Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE: TNK) today reported the Company’s results for the quarter ended September 30, 2020:

Consolidated Financial Summary

	Three Months Ended
(in thousands of U.S. dollars, except per share data)	September 30, 2020		June 30, 2020	September 30, 2019 ⁽³⁾
GAAP FINANCIAL COMPARISON
Total revenues	170,240		246,492	187,444
(Loss) income from operations	(29,193	)	92,986	(4,873	)
Net (loss) income	(44,434	)	98,198	(19,850	)
(Loss) earnings per share ⁽⁴⁾	(1.32	)	2.91	(0.59	)
NON-GAAP FINANCIAL COMPARISON
Total Adjusted EBITDA⁽¹⁾	46,248		124,241	27,837
Adjusted net income (loss) ⁽¹⁾	3,132		80,700	(21,173	)
Adjusted earnings (loss) per share⁽¹⁾⁽⁴⁾	0.09		2.39	(0.63	)
Free cash flow⁽¹⁾	31,178		125,799	11,735

(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).

(2) Net debt is a non-GAAP financial measure and represents short-term, current and long-term debt and current and long-term obligations related to finance leases less cash and cash equivalents and restricted cash.

(3) Comparative balances relating to the three months ended September 30, 2019 have been updated to reflect results as presented in the Company’s Annual Report on Form 20-F for the year ended December 31, 2019.

(4) The per share amounts for all periods presented have been adjusted to reflect a one-for-eight reverse stock split completed in November 2019.

Third Quarter of 2020 Compared to Second Quarter of 2020

GAAP net loss and non-GAAP adjusted net income for the third quarter of 2020, compared to the second quarter of 2020, primarily reflects lower average spot tanker rates and a higher number of scheduled drydockings during the third quarter of 2020. GAAP net loss in the third quarter of 2020 also included a $45.0 million write-down of assets, while GAAP net income in the second quarter of 2020 included a $15.2 million reduction in freight tax accruals relating to prior periods.

Third Quarter of 2020 Compared to Third Quarter of 2019

GAAP net loss for the third quarter of 2020 increased, while non-GAAP adjusted net income improved compared to the same period of the prior year. These measures were positively impacted primarily by higher revenues from several fixed-rate charters secured during the past year at higher rates and higher average spot tanker rates in the third quarter of 2020, partially offset by the sale of four Suezmax tankers during December 2019 and the first quarter of 2020, as well as the sale of the non-US portion of the ship-to-ship support services and LNG terminal management business in the second quarter of 2020. GAAP net loss in the third quarter of 2020 also included a $45.0 million write-down of assets.

CEO Commentary

“Despite weaker spot tanker rates and a heavy drydock schedule during the third quarter of 2020, Teekay Tankers reported an adjusted net income of $3.1 million, or $0.09 per share, as we benefitted from well-timed fixed-rate charters secured over the last several quarters at rates meaningfully above current spot market levels,” commented Kevin Mackay, Teekay Tankers’ President and Chief Executive Officer.

“Following three strong quarters, spot tanker rates came under pressure during the third quarter of 2020 as a result of seasonal weakness, record OPEC+ production cuts resulting from reduced oil demand related to the pandemic, and the unwinding of floating storage. We were able to successfully mitigate the impact of these weaker rates with 22 percent of our fleet on fixed-rate charters during the third quarter at an average rate of $37,600 per day,” commented Mr. Mackay. “This weakness in spot tanker rates has continued into the fourth quarter; however, there is potential for an uplift in spot tanker rates as seasonal winter conditions typically tighten tanker supply as we move through the fourth quarter. At this point, the near-term outlook remains uncertain, but we are pleased that we secured a fifth of our fleet on strong fixed-rate charters and remain encouraged by fleet supply fundamentals which are significantly more favorable relative to prior market cycles.”

“Increasing our financial strength has been one of our strategic priorities, and over the past year, we have transformed our balance sheet,” continued Mr. Mackay. “During this past year, we generated over $400 million in free cash flow and completed over $100 million of asset sales, which have contributed to net debt reduction of approximately $500 million, or 50 percent, as well as strengthened our liquidity position from around $100 million to $470 million at the end of the third quarter of 2020. In addition to delevering our balance sheet, we have also reduced our cost of capital through the recently completed debt refinancing and the voluntary early termination of existing sale-leaseback financings on two of our vessels.”

Mr. Mackay concluded, “I want to thank our seafarers and onshore colleagues for their continued dedication to provide safe and uninterrupted service to our customers during this COVID-19 pandemic over the past several months. With strong fixed-rate charter contracts, low free cash flow break-even, reduced balance sheet leverage, a strong liquidity position, and no debt maturities until 2023, we believe that Teekay Tankers is well-positioned financially to continue creating shareholder value throughout a wide range of near-term market conditions.”

Summary of Recent Events

In October 2020, Teekay Tankers repurchased two of its Aframax vessels that were previously subject to long-term finance leases for a total purchase price of $29.6 million. The purchases were funded with existing cash balances and therefore, the two vessels are currently unencumbered.

In September 2020, Teekay Tankers entered into a one-year time charter-out contract for an Aframax tanker at $18,700 per day, which commenced in early-October 2020.

In August 2020, Teekay Tankers secured a three-year, $67 million term loan to refinance four Suezmax tankers. The net proceeds from the new debt facility, along with existing cash balances, were used to repay approximately $85 million outstanding on the Company’s existing debt facility with respect to these vessels that was scheduled to mature in 2021.

Tanker Market

Crude tanker spot rates fell during the third quarter of 2020 due to a combination of seasonal weakness, reduced oil demand due to the impact of COVID-19, and low trade volumes as a result of oil supply cuts by the OPEC+ group of producers. The return of some ships to the spot trading fleet from floating storage further compounded the weakness in rates.

Global oil demand has been gradually recovering since the low point in April 2020, when oil demand plummeted by over 20 million barrels per day (mb/d) due to severe restrictions and lockdowns in the wake of the COVID-19 outbreak. These restrictions, which were at their height in the second quarter of 2020, have eased since the summer, leading to a corresponding increase in oil demand. However, as of October 2020, global oil demand remains several million barrels below pre-pandemic levels and although global crude oil and refined product inventories have been falling since the third quarter of 2020, they remain well above long-term averages.

The OPEC+ group of oil producers, who implemented supply cuts of 9.7 mb/d in May 2020, returned 2 mb/d of supply to the market in August 2020. Although this was a positive step, it still results in crude trade volumes that are well below pre-pandemic levels, which has depressed crude spot tanker rates into the early part of the fourth quarter of 2020.

Typically, spot tanker rates would find some support during the winter months due to the seasonal impacts of higher oil demand and an increase in vessel delays due to poor weather and shorter daylight hours. While these seasonal factors are still expected to be positive for the tanker market, the potential increase in spot rates this winter is expected to be tempered by the underlying imbalance between tanker supply and demand. Mid-size tankers could find some support from an increase in Libyan crude oil production, which is expected to reach 1.0 mb/d during the fourth quarter of 2020, having averaged only 0.1 mb/d during the third quarter of 2020. However, this could be counter-balanced by a potential slowdown in demand due to a resurgence of COVID-19 cases in many regions and the potential for fresh restrictions and lockdowns over the winter months.

Looking ahead, the Company expects that tanker demand will continue to recover during 2021 as oil demand increases and oil inventories are brought back to more normal levels. However, the timing of this recovery remains uncertain and depends to a large extent on how the COVID-19 pandemic evolves over the coming months. The OPEC+ group is scheduled to return a further 2.0 mb/d of oil supply to the market from January 2021 onwards, which would be positive for tanker demand; however, a more definitive determination is expected to be made at the next OPEC meeting on November 30, 2020.

Fleet supply fundamentals continue to look very positive due to a significantly reduced level of newbuild ordering, a diminishing tanker orderbook, and the potential for higher scrapping due to an aging world fleet. As of October 2020, the tanker orderbook totaled 47.5 million deadweight tonnes (mdwt), or just over seven percent of the existing fleet size. When measured as a proportion of the total fleet, this is the lowest orderbook since 1996. The level of newbuild orders remains low, and is expected to remain so due to uncertainty over vessel technology and a more restrictive financial landscape. Although scrapping has been very low this year, scrapping facilities have now returned to full operation, and the level may pick up during periods of potentially weaker spot tanker rates in 2021.

In summary, the tanker market has come off the highs seen during the first half of the year, and the next few months look to be challenging. However, tanker demand should continue to gradually recover through the course of 2021 which, coupled with a positive fleet supply outlook, should help the tanker market begin to rebalance.

Operating Results

The following table highlights the operating performance of the Company’s time-charter vessels and spot vessels trading in revenue sharing arrangements (RSAs), voyage charters and full service lightering, in each case measured in net revenues⁽ⁱ⁾ per revenue day, or time-charter equivalent (TCE) rates, before off-hire bunker expenses and fees associated with vessels exiting the RSAs:

	Three Months Ended
	September 30, 2020⁽ⁱⁱ⁾		June 30, 2020⁽ⁱⁱ⁾		September 30, 2019⁽ⁱⁱ⁾
Time Charter-Out Fleet
Suezmax revenue days	831		794		92
Suezmax TCE per revenue day	$	41,216	$	37,740	$	20,488
Aframax revenue days	184		91		—
Aframax TCE per revenue day	$	24,983	$	22,925	—
LR2 revenue days	79		71		—
LR2 TCE per revenue day	$	28,638	$	25,463	—

Spot Fleet
Suezmax revenue days	1,388		1,544		2,576
Suezmax spot TCE per revenue day⁽ⁱⁱⁱ⁾	$	22,269	$	46,484	$	16,321
Aframax revenue days	1,534		1,632		1,821
Aframax spot TCE per revenue day^(iv)	$	14,802	$	29,569	$	14,850
LR2 revenue days	865		876		781
LR2 spot TCE per revenue day^(v)	$	14,400	$	29,621	$	14,686

Total Fleet
Suezmax revenue days	2,219		2,338		2,668
Suezmax TCE per revenue day	$	29,366	$	43,516	$	16,465
Aframax revenue days	1,718		1,723		1,821
Aframax TCE per revenue day	$	15,892	$	29,218	$	14,850
LR2 revenue days	944		947		781
LR2 TCE per revenue day	$	15,592	$	29,309	$	14,686

Net revenues is a non-GAAP financial measure. Please refer to “Definitions and Non-GAAP Financial Measures” for a definition of this term.
Revenue days are the total number of calendar days the Company’s vessels were in its possession during a period, less the total number of off-hire days during the period associated with major repairs, dry dockings or special or intermediate surveys. Consequently, revenue days represent the total number of days available for the vessel to earn revenue. Idle days, which are days when the vessel is available to earn revenue but is not employed, are included in revenue days.
Includes vessels trading in the Teekay Suezmax RSA, Teekay Suezmax Classic RSA and non-pool voyage charters.
Prior to January 1, 2020, includes vessels trading in the Teekay Aframax RSA, Teekay Aframax Classic RSA, non-pool voyage charters and full service lightering voyages. Subsequent to January 1, 2020, includes Aframax vessels trading in the Teekay Aframax RSA, non-pool voyage charters and full service lightering voyages.
Prior to January 1, 2020, includes vessels trading in the Teekay Taurus RSA and non-pool voyage charters. Subsequent to January 1, 2020, includes LR2 vessels trading in the Teekay Aframax RSA, non-pool voyage charters, and full service lightering voyages.

Fourth Quarter of 2020 Tanker Performance Update

The following table summarizes Teekay Tankers’ TCE rates fixed to-date in the fourth quarter of 2020 for both its spot-traded fleet only and its combined spot-traded and fixed-rate fleets:

	To-Date Spot Tanker Rates			Combined To-Date Spot Tanker and Fixed-Rate Contract Rates
	TCE Rates Per Day	% Fixed		TCE Rates Per Day	% Fixed
Suezmax	$10,100	49	%	$24,200	62	%
Aframax ⁽¹⁾	$7,700	45	%	$12,400	54	%
LR2 ⁽²⁾	$8,500	44	%	$13,500	52	%

(1) Rates and percentage booked to-date include Aframax RSA, full service lightering (FSL) and non-pool voyage charters for all Aframax vessels.
(2) Rates and percentage booked to-date include Aframax RSA, FSL and non-pool voyage charters for all LR2 vessels, whether trading in the clean or dirty spot market.

Teekay Tankers’ Fleet

The following table summarizes the Company’s fleet as of November 1, 2020:

	Owned and Leased Vessels	Chartered-in Vessels	Total
Fixed-rate:
Suezmax Tankers	7	—	7
Aframax Tankers	3	—	3
LR2 Product Tanker	1	—	1
Total Fixed-Rate Fleet	11	—	11
Spot-rate:
Suezmax Tankers	19	—	19
Aframax Tankers⁽ⁱ⁾	14	2	16
LR2 Product Tankers⁽ⁱⁱ⁾	8	2	10
VLCC Tanker⁽ⁱⁱⁱ⁾	1	—	1
Total Spot Fleet	42	4	46
Total Tanker Fleet	53	4	57
STS Support Vessels	—	3	3
Total Teekay Tankers’ Fleet	53	7	60

Includes two Aframax tankers with charter-in contracts that are scheduled to expire in March 2021 and September 2021, respectively, one with an option for the Company to extend for one additional year.
Includes two LR2 product tankers with charter-in contracts that are scheduled to expire in January 2021, each with an option for the Company to extend for one additional year.
The Company’s ownership interest in this vessel is 50 percent.

Liquidity Update

As at September 30, 2020, the Company had total liquidity of $469.8 million (comprised of $120.9 million in cash and cash equivalents and $348.9 million in undrawn capacity from its credit facilities) compared to total liquidity of $467.5 million as at June 30, 2020.

Conference Call

The Company plans to host a conference call on Thursday, November 12, 2020 at 12:00 p.m. (ET) to discuss its results for the third quarter of 2020. All shareholders and interested parties are invited to listen to the live conference call by choosing from the following options:

By dialing (800) 367-2403 or (647) 490-5367, if outside of North America, and quoting conference ID code 9018310.
By accessing the webcast, which will be available on Teekay Tankers’ website at www.teekay.com (the archive will remain on the website for a period of one year).

An accompanying Third Quarter of 2020 Earnings Presentation will also be available at www.teekay.com in advance of the conference call start time.

About Teekay Tankers

Teekay Tankers currently has a fleet of 52 double-hull tankers (including 26 Suezmax tankers, 17 Aframax tankers and nine LR2 product tankers), and also has four time chartered-in tankers. Teekay Tankers’ vessels are typically employed through a mix of short- or medium-term fixed-rate time charter contracts and spot tanker market trading. Teekay Tankers also owns a Very Large Crude Carrier (VLCC) through a 50 percent-owned joint venture. In addition, Teekay Tankers owns a ship-to-ship transfer business that performs full service lightering and lightering support operations in the U.S. Gulf and Caribbean. Teekay Tankers was formed in December 2007 by Teekay Corporation as part of its strategy to expand its conventional oil tanker business.

Teekay Tankers’ Class A common stock trades on the New York Stock Exchange under the symbol “TNK.”

For Investor Relations enquiries contact:

Ryan Hamilton
Tel: +1 (604) 609-2963
Website: www.teekay.com

Definitions and Non-GAAP Financial Measures

This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission (SEC). These non-GAAP financial measures, which include Adjusted Net Income (Loss), Free Cash Flow, Net Revenues, and Adjusted EBITDA, are intended to provide additional information and should not be considered substitutes for measures of performance prepared in accordance with GAAP. In addition, these measures do not have standardized definitions across companies, and therefore may not be comparable to similar measures presented by other companies. These non-GAAP measures are used by management, and the Company believes that these supplemental metrics assist investors and other users of its financial reports in comparing financial and operating performance of the Company across reporting periods and with other companies.

Non-GAAP Financial Measures

Adjusted net income (loss) excludes items of income or loss from GAAP net (loss) income that are typically excluded by securities analysts in their published estimates of the Company’s financial results. The Company believes that certain investors use this information to evaluate the Company’s financial performance, as does management. Please refer to Appendix A of this release for a reconciliation of this non-GAAP financial measure to net (loss) income, the most directly comparable GAAP measure reflected in the Company’s consolidated financial statements.

Adjusted EBITDA represents net (loss) income before interest, taxes, 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 foreign exchange gains and losses, gains and losses on sale of vessels, unrealized credit loss adjustments, unrealized gains and losses on derivative instruments and any write-offs and certain other income or expenses. Adjusted EBITDA also excludes realized gains or losses on interest rate swaps as management, in assessing the Company’s performance, views these gains or losses as an element of interest expense and realized gains or losses on derivative instruments resulting from amendments or terminations of the underlying instruments. Consolidated Adjusted EBITDA represents Adjusted EBITDA from vessels that are consolidated on the Company’s financial statements. Adjusted EBITDA from Equity-Accounted Joint Venture represents the Company’s proportionate share of Adjusted EBITDA from its equity-accounted joint venture, and as a result, the Company does not have the unilateral ability to determine whether the cash generated by its equity-accounted joint venture is retained within the entity in which the Company holds the equity-accounted joint venture or distributed to the Company and other owners. In addition, the Company does not control the timing of any such distributions to the Company and other owners. Adjusted EBITDA is a non-GAAP financial measure used by certain investors and management to measure the operational performance of companies. Total Adjusted EBITDA represents Consolidated Adjusted EBITDA plus Adjusted EBITDA from Equity-Accounted Joint Venture. Please refer to Appendices C and D of this release for reconciliations of Adjusted EBITDA to net (loss) income and equity income, respectively, which are the most directly comparable GAAP measures reflected in the Company’s consolidated financial statements.

Free cash flow (FCF) represents net (loss) income, plus depreciation and amortization, unrealized losses from derivative instruments, loss on sales of vessels, equity loss from the equity-accounted joint venture, and any write-offs and certain other non-cash non-recurring items, less unrealized gains from derivative instruments, gain on sales of vessels, equity income from the equity-accounted joint venture and certain other non-cash items. The Company includes FCF from the equity-accounted joint venture as a component of its FCF. FCF from the equity-accounted joint venture represents the Company’s proportionate share of FCF from its equity-accounted joint venture. The Company does not control its equity-accounted joint venture, and as a result, the Company does not have the unilateral ability to determine whether the cash generated by its equity-accounted joint venture is retained within the joint venture or distributed to the Company and other owners. In addition, the Company does not control the timing of such distributions to the Company and other owners. Consequently, readers are cautioned when using FCF as a liquidity measure as the amount contributed from FCF from the equity-accounted joint venture may not be available to the Company in the periods such FCF is generated by the equity-accounted joint venture. FCF is a non-GAAP financial measure used by certain investors and management to evaluate the Company’s financial and operating performance and to assess the Company’s ability to generate cash sufficient to repay debt, pay dividends and undertake capital and dry-dock expenditures. Please refer to Appendix B to this release for a reconciliation of this non-GAAP financial measure to net (loss) income, the most directly comparable GAAP financial measure reflected in the Company’s consolidated financial statements.

Net revenues represents revenues less voyage expenses. Because the amount of voyage expenses the Company incurs for a particular charter depends on the type of the charter, the Company uses net revenues to improve the comparability between periods of reported revenues that are generated by the different types of charters and contracts. The Company principally uses net revenues, a non-GAAP financial measure, because the Company believes it provides more meaningful information about the deployment of the Company’s vessels and their performance than does revenues, the most directly comparable financial measure under GAAP.

Teekay Tankers Ltd.

Summary Consolidated Statements of (Loss) Income

(in thousands of U.S. dollars, except share and per share data)

		Three Months Ended						Nine Months Ended
		September 30,		June 30,		September 30,		September 30,		September 30,
		2020		2020		2019 ⁽¹⁾		2020		2019 ⁽¹⁾
		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)

Voyage charter revenues ⁽²⁾		125,819		207,926		178,174		651,223		591,746
Time-charter revenues		42,180		34,986		1,909		92,733		6,815
Other revenues ⁽³⁾		2,241		3,580		7,361		14,676		34,051
Total revenues		170,240		246,492		187,444		758,632		632,612

Voyage expenses⁽²⁾		(57,777	)	(61,558	)	(92,866	)	(238,576	)	(293,263	)
Vessel operating expenses		(46,336	)	(46,218	)	(48,539	)	(143,203	)	(156,726	)
Time-charter hire expenses		(9,070	)	(9,296	)	(10,637	)	(28,245	)	(30,877	)
Depreciation and amortization		(29,992	)	(29,546	)	(31,536	)	(89,170	)	(92,059	)
General and administrative expenses		(9,887	)	(9,784	)	(8,739	)	(28,957	)	(27,412	)
(Write-down) and (loss) gain on sale of assets ⁽⁴⁾		(44,973	)	2,896		—		(45,164	)	—
Restructuring charge		(1,398	)	—		—		(1,398	)	—
(Loss) income from operations		(29,193	)	92,986		(4,873	)	183,919		32,275

Interest expense		(12,553	)	(13,492	)	(16,134	)	(41,180	)	(49,683	)
Interest income		337		567		138		1,160		724
Realized and unrealized (loss) gain on derivative instruments⁽⁵⁾		(414	)	(589	)	1,453		(1,830	)	(1,172	)
Equity income ⁽⁶⁾		46		3,188		68		5,174		652
Other (expense) income		(470	)	940		933		1,613		1,182
Net (loss) income before income tax		(42,247	)	83,600		(18,415	)	148,856		(16,022	)

Income tax (expense) recovery⁽⁷⁾		(2,187	)	14,598		(1,435	)	11,747		(5,688	)
Net (loss) income		(44,434	)	98,198		(19,850	)	160,603		(21,710	)

(Loss) earnings per share attributable
	to shareholders of Teekay Tankers
	– Basic⁽⁸⁾	(1.32	)	2.91		(0.59	)	4.76		(0.65	)
	– Diluted⁽⁸⁾	(1.32	)	2.89		(0.59	)	4.73		(0.65	)


Weighted-average number of total common
	shares outstanding
	– Basic⁽⁸⁾	33,738,143		33,727,978		33,623,608		33,712,124		33,610,936
	– Diluted⁽⁸⁾	33,738,143		33,978,730		33,623,608		33,942,191		33,610,936

Number of outstanding shares of common stock at the end of the period ⁽⁸⁾		33,738,143		33,738,143		33,623,608		33,738,143		33,623,608

Voyage expenses incurred that are recoverable from the Company’s customers in connection with its voyage charter contracts are reflected in voyage charter revenues and voyage expenses. The Company recast the results for the three and nine months ended September 2019 to be consistent with the presentation in the 2019 20-F and this report for the three and nine months ended September 30, 2020. This had the impact of increasing both voyage charter revenues and voyage expenses by $5.1 million and $15.5 million, respectively, for the three and nine months ended September 30, 2019.
Voyage charter revenues include revenues earned from full service lightering activities. Voyage expenses include certain costs associated with full service lightering activities, which include: short-term in-charter expenses, bunker fuel expenses and other port expenses totaling $10.8 million, $12.7 million and $9.0 million for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, and $42.2 million and $39.9 million for the nine months ended September 30, 2020 and September 30, 2019, respectively.
Other revenues include lightering support and liquefied natural gas services revenue, revenue earned from the Company’s responsibilities in employing the vessels subject to the RSAs, and bunker commissions earned. In April 2020, the Company sold a portion of its oil and gas ship-to-ship transfer support business, including its gas terminal management services.
(Write-down) and (loss) gain on sale of assets for the three and nine months ended September 30, 2020 includes a write-down of $45.0 million relating to five Aframax tankers and the Company’s operating lease right-of-use assets, which were written-down to their estimated fair values. (Write-down) and (loss) gain on sale of assets for the nine months ended September 30, 2020 also includes a loss on sale of $2.6 million relating to three Suezmax tankers which were sold in the first quarter of 2020 and a write-down of $0.7 million relating to the Company’s operating lease right-of-use assets in the second quarter of 2020, partially offset by a gain on sale of $3.1 million relating to the completion of the sale of the non-US portion of the Company’s ship-to-ship support services business, as well as the Company’s LNG terminal management business in the second quarter of 2020.
Includes realized gains on interest rate swaps of nil, $0.1 million and $0.6 million for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, and realized gains of $0.6 million and $2.4 million for the nine months ended September 30, 2020 and September 30, 2019, respectively. The Company also recognized realized losses of $0.2 million, $0.2 million and realized gains of $0.4 million for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, and realized losses of $0.4 million and realized gains of $0.4 million for the nine months ended September 30, 2020 and September 30, 2019, respectively, relating to its forward freight agreements.
Equity income relates to the Company’s 50 percent interest in the High-Q Investment Ltd. (High-Q) joint venture, which owns one VLCC tanker.
Income tax recovery for the three months ended June 30, 2020 includes a reduction in freight tax accruals of $15.2 million related to periods prior to 2020.
The number of shares and per share amounts, including comparative figures, have been adjusted to reflect the changes resulting from the one-for-eight reverse stock split which took effect on November 25, 2019.

Teekay Tankers Ltd.

Summary Consolidated Balance Sheets

(in thousands of U.S. dollars)

	As at	As at	As at
	September 30,	June 30,	December 31,
	2020	2020	2019
	(unaudited)	(unaudited)	(unaudited)
ASSETS
Cash and cash equivalents	120,872	167,907	88,824
Restricted cash	4,686	4,766	3,071
Accounts receivable	46,247	88,663	95,648
Bunker and lube oil inventory	33,444	30,885	49,790
Prepaid expenses	13,561	12,103	10,288
Due from affiliates	3,323	2,440	697
Current portion of derivative assets	—	—	577
Assets held for sale ⁽¹⁾	—	—	65,458
Accrued revenue	29,410	42,153	106,872
Total current assets	251,543	348,917	421,225
Restricted cash – long-term	3,437	3,437	3,437
Vessels and equipment – net	1,131,742	1,161,097	1,223,085
Vessels related to finance leases – net	484,776	511,879	527,081
Operating lease right-of-use assets	6,148	10,758	19,560
Investment in and advances to equity-accounted joint venture	28,635	29,740	28,112
Derivative assets	—	—	82
Other non-current assets	1,175	1,453	1,923
Intangible assets – net	2,122	2,259	2,545
Goodwill	2,426	2,426	2,426
Total assets	1,912,004	2,071,966	2,229,476

LIABILITIES AND EQUITY
Accounts payable and accrued liabilities	83,272	100,012	130,713
Short-term debt	20,000	10,000	50,000
Current portion of long-term debt	10,962	27,549	43,573
Current portion of derivative liabilities	755	414	86
Current obligations related to finance leases	26,794	26,281	25,357
Current portion of operating lease liabilities	7,602	10,986	16,290
Liabilities associated with assets held for sale ⁽¹⁾	—	—	2,980
Due to affiliates	2,932	2,091	2,139
Other current liabilities	3,696	8,485	8,567
Total current liabilities	156,013	185,818	279,705
Long-term debt	204,103	285,389	516,106
Long-term obligations related to finance leases	369,278	376,238	389,431
Long-term operating lease liabilities	421	417	3,270
Other long-term liabilities	29,683	27,516	51,044
Derivative liabilities	717	789	—
Equity	1,151,789	1,195,799	989,920
Total liabilities and equity	1,912,004	2,071,966	2,229,476

Net debt ⁽²⁾	502,142	549,347	929,135

On April 30, 2020, the Company finalized the sale of a portion of its oil and gas ship-to-ship transfer support business, which also provides gas terminal management services, for $27.1 million. The sale of a portion of the ship-to-ship support services business and gas terminal management business, including cash, cash equivalents and restricted cash of $1.5 million, was classified as held for sale as at December 31, 2019. Also included in assets held for sale at December 31, 2019 were two Suezmax vessels.
Net debt is a non-GAAP financial measure and represents short-term, current and long-term debt and current and long-term obligations related to finance leases less cash and cash equivalents and restricted cash.

Teekay Tankers Ltd.

Summary Consolidated Statements of Cash Flows

(in thousands of U.S. dollars)

	Nine Months Ended
	September 30,		September 30,
	2020		2019
	(unaudited)		(unaudited)
Cash, cash equivalents and restricted cash provided by (used for)
OPERATING ACTIVITIES
Net income (loss)	160,603		(21,710	)
Non-cash items:
Depreciation and amortization	89,170		92,059
Write-down and loss on sale of assets	45,164		—
Unrealized loss on derivative instruments	1,948		3,960
Equity income	(5,174	)	(652	)
Income tax (recovery) expense	(10,951	)	4,181
Other	3,827		3,690
Change in operating assets and liabilities	72,629		18,685
Expenditures for dry docking	(9,405	)	(37,430	)
Net operating cash flow	347,811		62,783

FINANCING ACTIVITIES
Proceeds from short-term debt	235,000		125,000
Proceeds from long-term debt, net of issuance costs	544,872		56,788
Scheduled repayments of long-term debt	(10,366	)	(76,216	)
Prepayments of long-term debt	(882,495	)	(109,688	)
Prepayments of short-term debt	(265,000	)	(75,000	)
Proceeds from financing related to sales and leaseback of vessels	—		63,720
Scheduled repayments of obligations related to finance leases	(18,716	)	(18,075	)
Other	(562	)	(126	)
Net financing cash flow	(397,267	)	(33,597	)

INVESTING ACTIVITIES
Proceeds from sale of assets	85,892		—
Expenditures for vessels and equipment	(8,881	)	(7,210	)
Loan repayments from equity-accounted joint venture	4,650		—
Net investing cash flow	81,661		(7,210	)

Increase in cash, cash equivalents and restricted cash	32,205		21,976
Cash, cash equivalents and restricted cash, beginning of the period	96,790		60,507
Cash, cash equivalents and restricted cash, end of the period	128,995		82,483

Teekay Tankers Ltd.

Appendix A – Reconciliation of Non-GAAP Financial Measures

Adjusted Net Income (Loss)

(in thousands of U.S. dollars, except per share amounts)

		Three Months Ended
		September 30, 2020					June 30, 2020					September 30, 2019
		(unaudited)					(unaudited)					(unaudited)
		$		$ Per Share⁽¹⁾			$		$ Per Share⁽¹⁾			$		$ Per Share⁽¹⁾
Net (loss) income – GAAP basis		(44,434	)	($	1.32	)	98,198		$	2.91		(19,850	)	($	0.59	)

Add (subtract) specific items affecting net loss:
	Write-down and (gain) on sale of assets	44,973		$	1.33		(2,896	)	($	0.09	)	—			—
	Unrealized loss (gain) on derivative instruments⁽²⁾	172		$	0.01		475		$	0.02		(405	)	($	0.01	)
	Other⁽³⁾	2,421		$	0.07		(15,077	)	($	0.45	)	(918	)	($	0.03	)
Total adjustments		47,566		$	1.41		(17,498	)	($	0.52	)	(1,323	)	($	0.04	)
Adjusted net income (loss) attributable to
	shareholders of Teekay Tankers	3,132		$	0.09		80,700		$	2.39		(21,173	)	($	0.63	)

Basic per share amounts.
Reflects unrealized gains or losses due to the changes in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes, including unrealized gains or losses on interest rate swaps and forward freight agreements.
The amount recorded for the three months ended September 30, 2020 primarily relates to restructuring charges, unrealized foreign exchange losses and debt issuance costs which were written off in connection with the refinancing of one of the Company’s debt facilities in August 2020. The amount recorded for the three months ended June 30, 2020 primarily relates to a reduction to freight tax accruals of prior years and unrealized foreign exchange losses. The amount recorded for the three months ended September 30, 2019 primarily relates to unrealized foreign exchange gains.

Teekay Tankers Ltd.

Appendix B – Reconciliation of Non-GAAP Financial Measures

Free Cash Flow

(in thousands of U.S. dollars, except share data)

			Three Months Ended
			September 30, 2020		June 30, 2020		September 30, 2019
			(unaudited)		(unaudited)		(unaudited)
	Net (loss) income – GAAP basis		(44,434	)	98,198		(19,850	)

	Add:
		Depreciation and amortization	29,992		29,546		31,536
		Proportionate share of free cash flow from equity-accounted joint venture	521		3,664		522
		Unrealized loss on derivative instruments	172		475		—
		Write-down of assets	44,973		185		—

	Less:
		Equity income ⁽¹⁾	(46	)	(3,188	)	(68	)
		Unrealized gain on derivative instruments	—		—		(405	)
		Gain on sale of assets	—		(3,081	)	—

Free cash flow			31,178		125,799		11,735

Weighted-average number of common shares outstanding for the period – basic			33,738,143		33,727,978		33,623,608

(1) Equity income relates to the Company’s 50 percent ownership interest in the High-Q joint venture, which owns one VLCC tanker.

Teekay Tankers Ltd.

Appendix C – Reconciliation of Non-GAAP Financial Measures

Total Adjusted EBITDA

(in thousands of U.S. dollars)

	Three Months Ended
	September 30, 2020		June 30, 2020		September 30, 2019
	(unaudited)		(unaudited)		(unaudited)
Net (loss) income – GAAP basis	(44,434	)	98,198		(19,850	)
Depreciation and amortization	29,992		29,546		31,536
Interest expense, net of interest income	12,216		12,925		15,996
Income tax expense (recovery)	2,187		(14,598	)	1,435
EBITDA	(39	)	126,071		29,117

Add (subtract) specific income statement items affecting EBITDA:
Foreign exchange loss (gain)	514		87		(918	)
Write-down and (gain) on sale of assets	44,973		(2,896	)	—
Realized loss (gain) on interest rate swaps	58		(86	)	(613	)
Unrealized loss (gain) on derivative instruments	172		475		(405	)
Equity income	(46	)	(3,188	)	(68	)
Consolidated adjusted EBITDA	45,632		120,463		27,113
Adjusted EBITDA from equity-accounted joint venture (See Appendix D)	616		3,778		724
Total Adjusted EBITDA	46,248		124,241		27,837

Teekay Tankers Ltd.

Appendix D – Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA from Equity-Accounted Joint Venture

(in thousands of U.S. dollars)

	Three Months Ended
	September 30, 2020				June 30, 2020				September 30, 2019
	(unaudited)				(unaudited)				(unaudited)
	At		Company’s		At		Company’s		At		Company’s
	100	%	Portion ⁽¹⁾		100	%	Portion ⁽¹⁾		100	%	Portion ⁽¹⁾
Revenues	1,986		993		8,113		4,056		2,022		1,011
Vessel and other operating expenses	(753	)	(376	)	(557	)	(278	)	(575	)	(287	)
Depreciation and amortization	(951	)	(476	)	(952	)	(476	)	(908	)	(454	)
Income from vessel operations of equity-accounted joint venture	282		141		6,604		3,302		539		270

Net interest expense	(190	)	(94	)	(228	)	(114	)	(403	)	(202	)
Other	(1	)	(1	)	—		—		—		—
Equity income of equity-accounted joint venture	91		46		6,376		3,188		136		68

Equity income of equity-accounted joint venture	91		46		6,376		3,188		136		68
Depreciation and amortization	951		476		952		476		908		454
Interest expense, net of interest income	190		94		228		114		403		202
EBITDA from equity-accounted joint venture	1,232		616		7,556		3,778		1,447		724

Adjusted EBITDA from equity-accounted joint venture	1,232		616		7,556		3,778		1,447		724

(1) The Company’s proportionate share of its equity-accounted joint venture is 50 percent.

Forward Looking Statements

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 other things, statements regarding: crude oil and refined product tanker market fundamentals, including the balance of supply and demand in the oil and tanker markets and the volatility of such markets; forecasts of worldwide tanker fleet growth or contraction and newbuilding tanker deliveries and vessel scrapping; estimated growth in global oil demand and supply and the timing thereof; future tanker rates, including the impact of seasonal conditions on spot tanker rates; future OPEC+ oil production increases; the impact of the COVID-19 outbreak and related developments on the Company’s business and tanker and oil market fundamentals; the Company’s liquidity and market position; the Company’s strategic priorities and anticipated delevering of the Company’s balance sheet and reduction in its cost of capital; and the Company’s ability to deal with potential market volatility and create shareholder value. 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: changes in tanker rates; changes in the production of, or demand for, oil or refined products; changes in trading patterns significantly affecting overall vessel tonnage requirements; OPEC+ and non-OPEC production and supply levels; the duration and extent of the COVID-19 outbreak and any resulting effects on the markets in which the Company operates; the impact of the COVID-19 outbreak on the Company’s ability to maintain safe and efficient operations; the impact of geopolitical tensions and changes in global economic conditions; greater or less than anticipated levels of tanker newbuilding orders and deliveries and greater or less than anticipated rates of tanker scrapping; the potential for early termination of charter contracts of existing vessels in the Company’s fleet; the inability of charterers to make future charter payments; the inability of the Company to renew or replace charter contracts; changes in global oil prices; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations and the impact of such changes, including IMO 2030; increased costs; and other factors discussed in Teekay Tankers’ filings from time to time with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F for the fiscal year ended December 31, 2019. The Company 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 Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

November 12, 2020 2:03 am

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Royal Caribbean Cruises Ltd. – RCL

NEW YORK, Nov. 12, 2020 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of Royal Caribbean Cruises Ltd. (“Royal Caribbean” or the “Company”) (NYSE: RCL). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.

The investigation concerns whether Royal Caribbean and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

[Click here for information about joining the class action]

On February 13, 2020, Royal Caribbean issued a press release stating that it had canceled 18 voyages in Southeast Asia due to recent travel restrictions and further warning that recent bookings had been softer for its broader business. On February 25, 2020, Royal Caribbean filed its 2019 Form 10-K, indicating that COVID-19 concerns were negatively impacting its overall business.

On March 10, 2020, Royal Caribbean withdrew its 2020 financial guidance, increased its revolving credit facility by $550 million, and announced that it would take cost-cutting actions due to the proliferation of COVID-19, further revealing that COVID-19 was severely impacting Royal Caribbean’s 2020 customer booking and that its safety measures were inadequate to prevent the spread of the virus on its ships.

On March 11, 2020, Royal Caribbean’s largest competitor, Carnival, announced a 60-day suspension of all operations, prompting concern that Royal Caribbean would follow suit. At the same time, Royal Caribbean also cancelled two cruises, beginning a series of cancellations and suspensions to follow.

On March 14, 2020, Royal Caribbean announced a suspension of all global cruises for 30 days.

On March 16, 2020, the Company revealed that global operations could be suspended longer than anticipated, announcing the cancellations of two additional cruises throughout April and into May.

Finally, on March 18, 2020, analysts downgraded Royal Caribbean’s stock and slashed their price targets.

Following each of the foregoing disclosures, Royal Caribbean’s stock price fell sharply, damaging investors.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

November 12, 2020 2:03 am

SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Evolus, Inc. of Class Action Lawsuit and Upcoming Deadline – EOLS

NEW YORK, Nov. 12, 2020 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against certain officers of Evolus, Inc. (“Evolus” or the “Company”) (NASDAQ: EOLS). The class action, filed in United States District Court for the Southern District of New York, and docketed under 20-cv-09053, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise, acquired Evolus securities between February 1, 2019 and July 6, 2020, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violation of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are a shareholder who purchased Evolus securities during the class period, you have until December 15, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Evolus is a Delaware corporation headquartered in Newport Beach, California. The Company operates as a medical aesthetics company, and develops, produces, and markets clinical neurotoxins for the treatment of aesthetic concerns. Evolus’ sole product is Jeuveau™, which is a purified botulinum toxin indicated for the temporary improvement in the appearance of moderate to severe frown lines in adults. As such, Evolus directly competes with Botox®, which is manufactured by Allergan plc and Allergan Inc. (“Allergan”) and distributed by Medytox Inc. (“Medytox”). Botox® has been the gold standard of the industry since its approval by the U.S. Food and Drug Administration (“FDA”) more than two decades ago.

Beginning in February 2019, Evolus embarked on a public campaign to hype the market right before the commercial launch of its sole leading product Jeuveau™. To secure an aggressive growth and rapid influx of revenue, Defendants disseminated dozens of public statements in which they promoted Jeuveau™ as a proprietary formulation of the botulinum toxic type A complex, purportedly developed by Korean bioengineering company Daewoong through years of clinical research and millions of dollars’ worth of investment in research and development. Among other things, Evolus promised investors that it would attain the number two U.S. market position within twenty-four months of launch.

The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading because they misrepresented and failed to disclose the following adverse facts pertaining to the Company’s business, operations, and prospects, which were known to Defendants or recklessly disregarded by them. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the real source of botulinum toxin bacterial strain as well as the manufacturing processes used to develop Jeuveau™ originated with and were misappropriated from Medytox; (ii) sufficient evidentiary support existed for the allegations that Evolus misappropriated certain trade secrets relating to the botulin toxin strain and the manufacturing processes for the development of Jeuveau™; (iii) as a result, Evolus faced a real threat of regulatory and/or court action, prohibiting the import, marketing, and sale of Jeuveau™; which in turn (iv) seriously threatened Evolus’ ability to commercialize Jeuveau™ in the U.S. and generate revenue; and (v) any revenues generated from the sale of Jeuveau™ were based on Evolus’ unlawful activities, including the misappropriation of trade secrets and secret manufacturing processes belonging to Allergan and Medytox.

The investing public learned the truth about Jeuveau™ on July 6, 2020, when the U.S. International Trade Commission (“ITC”) issued its Initial Final Determination in a case brought by Allergan and Medytox against Evolus, alleging that Evolus stole certain trade secrets to develop Jeuveau™. Coming as a great surprise to unsuspecting investors, the ITC Judge found that Evolus misappropriated the botulinum toxin strain as well as the manufacturing processes that led to its development and manufacture. Additionally, the ITC Judge recommended a ten-year-long ban on Evolus’ ability to import Jeuveau™ into the U.S. and a ten-year-long cease-and-desist order preventing Evolus from selling Jeuveau™ in the U.S.

This news caused a precipitous and immediate decline in the price of Evolus shares, which fell 37% over the course of two trading days, to close at $3.35 per share on July 8, 2020, on unusually high trading volume. Following the news of the ITC’s Initial Final Determination and the subsequent price drop of Evolus’ common shares, several securities analysts downgraded Evolus’ rating and significantly lowered the Company’s price target.

CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

November 12, 2020 2:03 am

Bango and Microsoft sign agreement to boost new Xbox cloud gaming subscriptions

Opening-up access to Xbox consoles and games through the Bango Platform

CAMBRIDGE, United Kingdom, Nov. 12, 2020 (GLOBE NEWSWIRE) — Bango (AIM: BGO) (“Bango”), the global platform for data-driven commerce, has expanded its partnership with Microsoft (NASDAQ: MSFT) to open-up access to Xbox subscriptions and consoles sales. With new Xbox Series X and Xbox Series S now available in time for the year end buying season, the Xbox Game Pass Ultimate subscription service and Xbox All Access program are expected to be in high demand.

Microsoft will leverage the Bango Platform to enable telco partners to bundle Xbox Game Pass Ultimate and Xbox All Access in their subscription packages. This is the latest expansion of the Bango partnership with Microsoft, through which Bango powers carrier billed payments for Xbox gamers and across the Microsoft Store.

Xbox Game Pass Ultimate gives gamers access to over 100 high-quality games on console, PC and compatible mobile devices for one low monthly price.

With Xbox All Access players can get everything they need to jump into the next generation of gaming – an Xbox Series X or Xbox Series S, plus 24 months of Xbox Game Pass Ultimate – from $24.99 a month for 24 months with no upfront cost.

Partners that want to benefit from the global demand for Xbox gaming can now leverage the unique offer and targeting insights provided by the Bango Platform to attract many more customers.

Gaming subscriptions and console acquisition programs are aligned to the way consumers are increasingly accessing entertainment. Consumers are standardizing on cloud gaming subscription services for gaming content as it dramatically increases choice, compared to pay per game business models.

“
Bango
is
focus
ed
on growing success for partners through data driven commerce
.
Unique
Bango
data insights optimize the targeting of product
bun
dl
es
to boost consumer engagement.
Bango is excited to expand
its
partnership with Microsoft
,
to
tak
e
Xbox
Game Pass
and consoles
to
millions
more
gamers
across the world,
”
commented
Paul Larbey, CEO
at Bango.

About Bango

App developers, stores and payment providers cross the threshold into the Bango ecosystem to converge, grow and thrive. By bringing businesses together and powering e-commerce with unique data-driven insights, Bango delivers new business opportunities and new dimensions of growth for customers around the world. Being inside the Bango circle means global merchants including Amazon, Google and Microsoft can work together with payment partners from Africa to the Americas, accelerating the performance of everyone on the inside.

Bango. Think inside the circle. For more information, visit www.bango.com.

Media contact:

Anil Malhotra, CMO
[email protected]
Tel: +44 7710 480 377

November 12, 2020 1:59 am

Skanska signs additional contracts for office improvements in western USA for about USD 198 M, about SEK 1.7 billion

PR Newswire

ÖSTERSUND, Sweden, Nov. 12, 2020 /PRNewswire/ — Skanska has signed additional contracts with an existing client for improvements to their corporate office in the western USA. The contract is a joint venture with Skanska Balfour Beatty, and is worth USD 395 M. Skanska’s part is worth about USD 198 M, about SEK 1.7 billion, which will be included in the US order bookings for the fourth quarter of 2020.

Construction is underway and is scheduled for completion in the fourth quarter of 2023.

Skanska is one of the leading construction- and development companies in USA, specializing in building construction, civil infrastructure and developing commercial properties in select U.S. markets. Skanska USA had sales of SEK 74 billion and about 7,900 employees in its operations in 2019.

CONTACT:

For further information please contact:

Yena Williams

Communications Director, Skanska USA
tel +1-213-514-2918

Olof Rundgren

Media Relations Manager, Skanska AB
tel +46 (0)10-448-67-94

Direct line for media, tel +46 (0)10-448-88-99

This and previous releases can also be found at

www.skanska.com
.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/skanska/r/skanska-signs-additional-contracts-for-office-improvements-in-western-usa-for-about-usd-198-m–about,c3235529

The following files are available for download:

https://mb.cision.com/Main/95/3235529/1333884.pdf

20201112 US office improvements

View original content:http://www.prnewswire.com/news-releases/skanska-signs-additional-contracts-for-office-improvements-in-western-usa-for-about-usd-198-m-about-sek-1-7-billion-301171604.html

SOURCE Skanska

November 12, 2020 1:49 am

Equinor ASA: Ex dividend

From 12 November 2020, the shares in Equinor (OSE: EQNR, NYSE: EQNR) will be traded ex dividend at USD 0.09.

Record date is 13 November 2020.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

November 12, 2020 1:40 am

Borr Drilling Limited – SGM Results Notification

PR Newswire

HAMILTON, Bermuda, Nov. 12, 2020 /PRNewswire/ — Borr Drilling Limited (the “Company”) (NYSE: “BORR”, OSE: “BDRILL”) advises that a Special General Meeting of the Company was held on November 11, 2020 at 09:30 AST at 2nd Floor, The S.E. Pearman Building, 9 Par-la-Ville Road, Hamilton HM 11, Bermuda

The following resolution was passed:

To approve the increase of the Company’s authorized share capital from US$11,182,692.30 divided into 223,653,846 common shares of US$0.05 par value each to US$11,932,692.30 divided into 238,653,846 common shares of US$0.05 par value each by the authorization of an additional 15,000,000 common shares of US$0.05 par value each.

Media Contact:

Magnus Vaaler

VP Investor Relations and Treasury
+47-22-48-30-00

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/borr-drilling-limited/r/borr-drilling-limited—sgm-results-notification,c3235657

View original content:http://www.prnewswire.com/news-releases/borr-drilling-limited–sgm-results-notification-301171590.html

SOURCE Borr Drilling Limited

November 12, 2020 1:37 am

Nel ASA: Reference is made to stock exchange announcement regarding contract for multiple hydrogen fueling stations

PR Newswire

OSLO, Norway, Nov. 12, 2020 /PRNewswire/ — On 30 June 2020 Nel Hydrogen Fueling, a division of Nel ASA (Nel, OSE:NEL), received a purchase order for multiple H2Station™ units for fueling of light-duty vehicles in California from Iwatani Corporation of America, a wholly owned subsidiary of Iwatani Corporation (8088: Tokyo Stock Exchange).

“We are very honored that Iwatani and Toyota have selected our H2Station™ hydrogen fueling station solutions for strengthening the hydrogen infrastructure in Southern California. The stations will serve existing as well as new fuel cell electric vehicles, such as the next generation Toyota Mirai, with zero-emission fuel, at the same convenience as conventional fuels. With our Nel Inc. entity currently based in the San Francisco area we now look forward to expanding our business in California and supporting Iwatani,” says Ulrik Torp Svendsen, Key Account Manager, Nel Hydrogen Fueling.

The value of the purchase order was in excess of NOK 150 million, and included 14 H2Station™ modules which will be installed in 2021 on 7 sites in California, US for fueling of passenger vehicles.

Link to press-release from Iwatani and Toyota: https://pressroom.toyota.com/iwatani-corporation-of-america-and-toyota-collaborate-to-bring-seven-new-hydrogen-refueling-stations-to-southern-california/

For further information, please contact:

Jon André Løkke
CEO, +47-907-44-949

Bjørn Simonsen
VP Investor Relations & Corporate Communication
+47-971-79 821

About Nel ASA | www.nelhydrogen.com

Nel is a global, dedicated hydrogen company, delivering optimal solutions to produce, store, and distribute hydrogen from renewable energy. We serve industries, energy, and gas companies with leading hydrogen technology. Our roots date back to 1927, and since then, we have had a proud history of development and continuous improvement of hydrogen technologies. Today, our solutions cover the entire value chain: from hydrogen production technologies to hydrogen fueling stations, enabling industries to transition to green hydrogen, and providing fuel cell electric vehicles with the same fast fueling and long range as fossil-fueled vehicles – without the emissions.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/nel-asa/r/nel-asa–reference-is-made-to-stock-exchange-announcement-regarding-contract-for-multiple-hydrogen-f,c3235775

The following files are available for download:

https://mb.cision.com/Main/115/3235775/1334109.pdf

Release

View original content:http://www.prnewswire.com/news-releases/nel-asa-reference-is-made-to-stock-exchange-announcement-regarding-contract-for-multiple-hydrogen-fueling-stations-301171588.html

SOURCE NEL ASA

November 12, 2020 1:36 am

Interim Report Q3, 2020

Expansion of pipeline and positive phase 3 topline data

PR Newswire

STOCKHOLM, Nov. 12, 2020 /PRNewswire/ — “On August 13^th, we announced a €19.8m acquisition of a majority stake of 62.7% in Genkyotex, a publicly listed life science company in France. We are very excited about this acquisition, which complements our existing and long-standing focus on inflammatory disease. This provides us with a platform with anti-fibrotic and anti-inflammatory compounds, with which we believe can continue to address unmet medical need in orphan diseases and bring solutions to patients across many different therapeutic areas. We believe that we have significant opportunities to leverage this platform to the benefit of patients suffering from fibrotic diseases. We believe that the late stage development, CMC and regulatory expertise which exists in Calliditas can significantly support and enhance the important fundamentals put in place by Genkyotex. We are confident that this will be value driving, for all the company’s stakeholders, over the near and medium term.

After the close of the quarter, on November 8^th, we reported positive topline results from Part A of our pivotal Phase 3 trial, NefIgArd. The strong data set confirms the results seen in the successful Phase 2b trial and provides further support for locally treating IgAN at the source, offering patients hope of disease modification. We will now assemble the regulatory file and submit for accelerated approval with the FDA and conditional approval with EMA, which is planned for Q1 and H1 respectively next year.”

Renée Aguiar-Lucander, CEO

Summary of Q3 2020

July 1 – September 30, 2020

No net sales were recognized for the three months ended September 30, 2020 and 2019, respectively.
Operating loss amounted to SEK 104.9 million and SEK 52.6 million for the three months ended September 30, 2020 and 2019, respectively.
Loss before income tax amounted to SEK 137.9 million and SEK 50.1 million for the three months ended September 30, 2020 and 2019, respectively.
Loss per share before and after dilution amounted to SEK 2.77 and SEK 1.30, for the three months ended September 30, 2020 and 2019, respectively.
Cash amounted to SEK 1,396.9 million and SEK 805.1 million as of September 30, 2020 and 2019, respectively.

Significant events during Q3 2020, in summary

In July 2020, Calliditas announced the exercise of the partial over-allotment option from the IPO on The Nasdaq Global Select Market. Calliditas was thereby provided with additional gross proceeds of approximately USD 6.9 million (approximately SEK 63 million) before deduction of issuance costs.
In August 2020, Calliditas announced it has reached an agreement to acquire a controlling interest in Genkyotex SA, a leader in NOX inhibition therapies.

Significant events after the end of reporting period, in summary

In November 2020, Calliditas acquired a controlling interest in Genkyotex SA representing 62,7%.
In November 2020, Calliditas announced positive topline results from Part A from the pivotal Phase 3 NefIgArd trial.

Investor Presentation November 12, 14:30 CET

Audio cast with teleconference, Q3 2020, November 12, 2020, 14:30 (Europe/Stockholm)

Webcast: https://tv.streamfabriken.com/calliditas-therapeutics-q3-2020

Teleconference: SE: +46856642707 UK: +443333009034 US: +18332498405

Financial calendar

Year-end report for the period January 1 – December 31, 2020 February 18, 2021

Interim report for the period January 1 – March 31, 2021 May 13, 2021

Interim report for the period January 1 – June 30, 2021 August 19, 2021

Interim report for the period January 1 – September 30, 2021 November 18, 2021

For further information, please contact:

Renée Aguiar-Lucander, CEO at Calliditas
Email: [email protected]

Mikael Widell, Investor Relations
Email: [email protected]
Telephone: +46 703 11 99 60

The information in the press release is information that Calliditas is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07:00 CET on November 12, 2020.

About Calliditas Therapeutics

Calliditas Therapeutics is a specialty pharmaceutical company based in Stockholm, Sweden. It is focused on developing high quality pharmaceutical products for patients with a significant unmet medical need in niche indications, in which the Company can partially or completely participate in the commercialization efforts. The Company is focused on the development and commercialization of the product candidate Nefecon, a unique two-step formulation optimized to combine a time lag effect with a concentrated release of the active substance budesonide, within a designated target area. This patented, locally acting formulation is intended for treatment of patients with the inflammatory renal disease IgA nephropathy (IgAN). Calliditas Therapeutics is running a global Phase 3 study within IgAN and aims to commercialize Nefecon in the US. The company is listed on Nasdaq Stockholm (ticker: CALTX). Visit www.calliditas.com for further information.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding Calliditas’ strategy, business plans and focus. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, any related to Calliditas” business, operations, clinical trials, supply chain, strategy, goals and anticipated timelines, competition from other biopharmaceutical companies, and other risks identified in the section entitled “Risk Factors” Calliditas’ reports filed with the Securities and Exchange Commission. Calliditas cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. Calliditas disclaims any obligation to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. Any forward-looking statements contained in this press release represent Calliditas” views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/calliditas-therapeutics/r/interim-report-q3–2020,c3235709

The following files are available for download:

https://mb.cision.com/Main/16574/3235709/1334046.pdf	Release
https://mb.cision.com/Public/16574/3235709/95e9d8325bc477ed.pdf	Press release Q3 2020 ENG

View original content:http://www.prnewswire.com/news-releases/interim-report-q3-2020-301171586.html

SOURCE Calliditas Therapeutics