Teekay LNG Partners reports 1Q19 results

Highlights

• GAAP net income attributable to the partners and preferred unitholders of US$21.6 million and GAAP net income per common unit of US$0.19.
• Adjusted net income attributable to the partners and preferred unitholders of US$33.4 million and adjusted net income per common unit of US$0.34 (excluding items listed in Appendix A to this release).
• Total Adjusted EBITDA of US$158.2 million.
• Increased quarterly cash distributions on common units by 36% commencing with the distributions paid in May 2019, from US$0.14 per common unit to US$0.19 per common unit, as part of a balanced capital allocation strategy.
• Secured one to three-year charters on three LNG carriers at attractive rates; the Partnership’s LNG fleet is now 100, 97 and 92% fixed for the remainder of 2019, for 2020 and 2021, respectively.
• 2019 results expected to be within previous earnings and Adjusted EBITDA guidance ranges.

CEO Commentary

“During the first quarter, the partnership continued to report significant cash flow growth mainly driven by recent newbuild deliveries and the contract start-up of various LNG carriers at higher rates,” commented Mark Kremin, Teekay Gas Group Ltd.’s President and Chief Executive Officer. “Looking ahead, we expect contract start-up of four additional LNG carrier newbuildings and the Bahrain LNG terminal in the second half of 2019, which we anticipate will continue to drive further growth in total adjusted EBITDA throughout the rest of 2019 and into 2020.”

Kremin added, “Despite the near-term weakness in the spot LNG carrier market since the start of the year, we have recently been able to take advantage of the improving medium-term fundamentals by securing multiple attractive charters on our LNG carriers for periods ranging from one to three years. This has allowed us to lock-in charters at attractive rates and maximise utilisation, thereby further enhancing our earnings stability and improving our cash flows.”

Kremin continued, “We remain committed to our balanced capital allocation plan, which returns additional capital to unitholders, including the recent 36% cash distribution increase, while also creating equity value through continued delevering of our balance sheet. The new charters that we recently secured are expected to enable Teekay LNG to delever faster and with better visibility, which provides us with greater flexibility to allocate excess capital in the future.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/23052019/teekay-lng-partners-reports-1q19-results/