Teekay GP LLC, the general partner of Teekay LNG Partners, today reported the Partnership’s results for the quarter ended June 30.
During the second quarter of 2012, the Partnership generated distributable cash flow of $56.8 million, compared to $37.6 million in the same quarter of the previous year. The increase primarily reflects the incremental distributable cash flow resulting from the following acquisitions: Multigas carriers delivered in June and October 2011; a 33 percent interest in four liquefied natural gas (LNG) carriers delivered between August 2011 and January 2012; one liquefied petroleum gas (LPG) carrier delivered in September 2011; and a 52 percent interest in six LNG carriers completed in February 2012.
On July 13, the Partnership declared a cash distribution of $0.675 per unit for the quarter ended June 30, 2012. The cash distribution will be paid on August 10 to all unitholders of record on July 25.
“The Partnership’s distributable cash flow experienced a healthy increase during the second quarter, primarily as a result of the full quarter contribution from the six Maersk LNG carriers acquired in the first quarter of 2012 through our joint venture with Marubeni,” commented Peter Evensen, Chief Executive Officer of Teekay GP L.L.C. “Since closing the acquisition at the end of February, the integration of these vessels into our fleet is now substantially complete.”
“The LNG shipping market continues to exhibit strong fundamentals which enabled the Partnership to recently secure a new three-year time-charter for the Magellan Spirit at a rate which is approximately 20 percent higher than under its existing charter,” Mr. Evensen continued.
“The new contract will commence in September 2013 when the Magellan Spirit’s current time-charter expires. In addition, the Partnership has been actively assessing opportunities to make additional accretive investments in new LNG-related projects and existing LNG assets with long-term contracts. With approximately $400 million of available liquidity, the Partnership is well-positioned for further acquisitions.”
The Partnership reported adjusted net income attributable to the partners of $40.5 million for the quarter ended June 30, compared to $23.6 million for the same period of the prior year. Adjusted net income attributable to the partners excludes a number of specific items that had the net effect of decreasing net income by $2.8 million and $26.7 million for the three months ended June 30, 2012 and 2011.
Including these items, the Partnership reported net income (loss) attributable to the partners, on a GAAP basis, of $37.7 million and ($3.1) million for the three months ended June 30, 2012 and 2011, respectively.
For the six months ended June 30, 2012, the Partnership reported adjusted net income attributable to the partner of $76.1 million, compared to $49.4 million for the same period of the prior year. Adjusted net income attributable to the partners excludes a number of specific items that had the net effect of decreasing net income by $13.7 million and $27.6 million for the six months ended June 30, 2012 and 2011.
Including these items, the Partnership reported net income attributable to the partners, on a GAAP basis, of $62.4 million and $21.9 million for the six months ended June 30, 2012 and 2011.
LNG World News Staff, August 9, 2012