Teekay LNG, one of the world’s largest owners and operators of liquefied natural gas carriers, reported a distributable cash flow of $65.8 million in the second quarter, compared to $61.5 million in the same period of the prior year.
The increase in distributable cash flow was primarily due to lower interest expense resulting from the December 2014 termination of capital leases for, and the subsequent refinancing of, three LNG carriers, and an increase in the charter rates for the Partnership’s four 33 percent-owned carriers servicing the Angola LNG project, the company said on Thursday.
Teekay LNG’s net income was at $39.5 million for the quarter ended June 30, compared to $42.6 million for the same period a year before.
“The Partnership generated stronger than expected cash flow coverage for the second quarter, primarily due to higher than expected revenues from our Exmar LPG and Angola joint ventures,” commented Peter Evensen, Chief Executive Officer of Teekay GP LLC.
Evensen continued, “The Partnership’s cash flows are stable and growing, supported by a large and diversified portfolio of long-term fee-based contracts of $11.4 billion with an average remaining contract duration of approximately 13 years and no direct commodity price exposure.
Despite the current volatility in the energy markets, the long-term fundamentals in the LNG market remain attractive. ship is well-positioned for further distributable cash flow growth.”