Teekay LNG’s income slides in Q3

Teekay LNG's adjusted income slides in Q3

Bermuda-based Teekay LNG Partners, one of the world’s largest owners and operators of LNG carriers, said its adjusted net income for the third quarter 2016 reached US$32.1 million. 

This is a drop compared to the corresponding quarter in 2015 when Teekay LNG reported an adjusted net income of $37.1 million.

Teekay LNG’s GAAP net income was at $50.1 million, significantly up on the $7.5 million in the corresponding quarter in the past year.

Voyage revenues rose slightly to $100.7 million when compared to $98.4 million in the third quarter last year, Teekay LNG said in its results report on Thursday.

“Following the Partnership’s strong cash flows generated in the second quarter of 2016, which were supplemented by a favorable charter dispute settlement, the Partnership continued to generate strong cash flows in the third quarter of 2016 with the delivery of the Oak Spirit MEGI LNG carrier newbuilding which commenced its five-year charter contract with Cheniere Energy in early-August 2016,” commented Peter Evensen, CEO of Teekay, the general partner of Teekay LNG, who announced his plans to retire at the end of January 2017.

Teekay LNG generated distributable cash flow of $54.3 million, or $0.68 per common unit, in the third quarter.

He added that Teekay LNG secured charter contracts for all of our LNG carrier newbuildings.

“We have now secured a short-term charter contract with a major energy company and a new 15-year charter contract with the fully-financed Yamal LNG project for our two previously unchartered MEGI LNG carrier newbuildings delivering in early-2017 and early-2019, respectively,” Evensen said.

He expects the company to complete approximately $1.3 billion in long-term financing for a number of projects over the next few months.

The report shows that Teekay LNG’s liquefied natural gas segment increased due to the deliveries of the Creole Spirit and Oak Spirit MEGI LNG carrier newbuildings, which commenced their five-year charter contracts with Cheniere Energy in late-February 2016 and early-August 2016, respectively.

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