Teekay GP L.L.C., the general partner of Teekay LNG Partners L.P., has reported the partnership’s results for the quarter ended 30 September 2017.
- Reported GAAP net loss attributable to the partners and preferred unitholders of US$18.9 million (inclusive of US$38.0 million write-down of conventional tankers) and adjusted net income attributable to the partners and preferred unitholders of US$20.9 million in Q3 2017.
- Generated distributable cash flow of US$40.2 million, or US$0.50 per common unit, in Q3 2017.
- As of 30 September 2017, the partnership had total liquidity of approximately US$415 million after giving pro forma effect to the US$170 million preferred equity issuance completed in October 2017.
- In October and November 2017, the partnership took delivery of two MEGI LNG carrier newbuildings and a 30% owned LNG carrier newbuilding, each of which immediately commenced charter contracts with Shell ranging between six and 20 years in duration.
- In November 2017, the partnership completed US$327 million of new long-term financings for the partnership's growth projects to fund an FSU for the Bahrain regasification facility and one MEGI LNG carrier newbuilding.
“During the third quarter of 2017, we continued to generate stable cash flows that were in line with our expectations,” commented Mark Kremin, President and Chief Executive Officer of Teekay Gas Group Ltd.
“Since reporting earnings in August 2017, we have continued to execute on our portfolio of growth projects delivering through 2020,” Kremin continued. “In October and November 2017, we took delivery of two wholly-owned MEGI LNG carrier newbuildings and one 30% owned LNG carrier newbuilding, all of which immediately commenced charter contracts ranging between six and 20 years in duration with Shell. We expect these newbuilding deliveries will have a positive contribution to our cash flows and earnings beginning in the fourth quarter of 2017. Looking ahead to 2018, we expect to take delivery of an additional eight LNG carrier newbuildings, all of which are scheduled to commence charter contracts ranging between six and 28 years in duration, which we expect will provide further cash flow and earnings growth to the Partnership.”
Kremin added, “On the financing side, we continue to execute on financing our newbuilding projects and have recently completed US$327 million in new debt financings relating to a floating storage unit for the Bahrain regasification project and one MEGI LNG carrier newbuilding. In addition, we have once again demonstrated access to capital markets and further strengthened our balance sheet through our recent US$170 million preferred equity offering completed in October 2017.”
Read the article online at: https://www.lngindustry.com/floating-lng/10112017/teekay-lng-partners-reports-q3-2017-results/