Teekay LNG Partners, one of the world’s largest owners of LNG carriers, reported a cash flow of US$54.4 million for the first quarter, compared to $66.2 million in the same period of the prior year.
The decrease was primarily due to lower revenues from the Partnership’s 52 percent-owned Malt LNG joint venture, the statement issued on Thursday reads.
The decrease was partially offset by the Creole Spirit LNG carrier commencing its charter contract in late-February 2016.
The Partnership reported a net income of $34.2 million for the quarter ended March 31, 2016, compared to $43.9 million for the same period the year before.
Peter Evensen, Chief Executive Officer of Teekay said, “While there continues to be volatility in the energy markets and a weak spot LNG shipping market, our business remains stable with approximately 97 percent of the Partnership’s LNG fleet fixed in 2016. In addition, the pace of LNG newbuilding orders remains low and long-term fundamentals in the LNG industry remain positive.”
He expects that during the second quarter, the company will begin to benefit from a full quarter of cash flow of its first MEGI LNG carrier newbuilding, the Creole Spirit.
Evensen added that the second MEGI LNG carrier newbuilding, Oak Spirit, is currently undergoing sea trials and is on-track to commence its five-year charter with Cheniere in the third quarter of 2016.
LNG World News Staff