Teekay Offshore Partners LP (NYSE:TOO) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 09:00 am ET

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Teekay Offshore Partners LP (NYSE:TOO) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the Altera Infrastructure Second Quarter Earnings Results Conference Call. During the call, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question-and-answer session. [Operator Instructions]

Now for opening remarks and introductions, I would like to turn the call over to Ingvild Saether, Altera Infrastructure's President and Chief Executive Officer. Please go ahead.

Executive
Jan Rune Steinsland

Before Ingvild begins, I would like to direct all participants to our website at alterainfra.com, where you will find a copy of the second quarter 2020 earnings presentation. Ingvild and I will take you through this presentation during today's conference call.

Please let me remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements are contained in the second quarter 2020 earnings release and earnings presentation that are available on our website.

I will now turn the call over to Ingvild to begin.

Executive
Ingvild Saether

Thank you, Jan Rune. Hello, everyone, and thank you for joining us on our second quarter 2020 earnings call. With me today, I have Jan Rune Steinsland, CFO of Altera Infrastructure Group. Starting with Slide 3. Our large and diversified portfolio of forward revenues stands at approximately $4.4 billion at the end of the second quarter, excluding extension options and oil tariff revenues.

Turning to Slide 4. Before providing an update on the actions we are taking in response of the COVID-19 pandemic, I wanted to provide a brief summary of our second quarter. In terms of financial results, we generated adjusted EBITDA of $143 million in the quarter, $11 million lower than the first quarter of 2020. The underlying financial performance from operations have been strong, except from low utilization in our Towage segment. Jan Rune will walk you through more details on our financial results later in the presentation.

In terms of operating highlights, during the second quarter, the Aurora Spirit and Rainbow Spirit, the first and second of six E-Shuttle newbuildings were accepted by Equinor under a long-term master agreement for trading in the North Sea. In addition, we took delivery from Samsung of the third E-Shuttle Tide Spirit in July. Tide Spirit will join the CoA fleet once it derives in North Sea and the added capacity in our CoA fleet will provide more flexibility in servicing our customers, including a new five-year CoA contract for the Kraken field that was awarded to us in June by EnQuest.

This new contract is equivalent to half a shuttle tanker and will start in September this year. Also in June, Equinor exercised as expected the first of 12 options to extend the time-charter contract for the Randgrid FSO for one more year until at least October 2021. As you will note from the presentation material, we have been awarded three studies for potential new projects in the quarter, in the FPSO and FSO segments. Our