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Teekay LNG Partners announces its 4Q19 and 2019 annual results

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LNG Industry,


Teekay GP L.L.C., the general partner of Teekay LNG Partners L.P., has reported the partnership’s results for the quarter and year ended 31 December 2019.

Highlights:

  • GAAP net income attributable to the partners and preferred unitholders of US$67.4 million and GAAP net income per common unit of US$0.77 in 4Q19; and US$152.8 million and US$1.59 per common unit, respectively, for fiscal 2019.
  • Adjusted net income attributable to the partners and preferred unitholders of US$50.3 million and adjusted net income per common unit of US$0.56 in 4Q19; and US$168.7 million and US$1.79 per common unit, respectively, for fiscal 2019.
  • Fiscal 2019 adjusted net income per common unit is up 136% from fiscal 2018; fiscal 2020 adjusted net income per common unit is expected to be 45 to 73% higher than fiscal 2019.
  • Total adjusted EBITDA of US$184.2 million in 4Q19; and US$684.7 million for fiscal 2019.
  • Took delivery of the fifth and sixth 50%-owned ARC7 LNG carrier newbuilds in late-2019.
  • The Bahrain LNG Joint Venture (in which Teekay LNG owns a 30% interest) completed mechanical construction and commissioning of the Bahrain LNG regasification terminal and began receiving terminal use payments.
  • In January 2020, Awilco LNG ASA (Awilco) fulfilled its obligation to repurchase two of Teekay LNG's vessels, resulting in over US$260 million of deleveraging and over US$100 million increase in liquidity for the partnership.
  • In November 2019, Teekay LNG announced a 32% increase in its cash distributions to US$1.00 per common unit per year, effective with the 1Q20 distribution to be paid in May. In addition, since November 2019, the partnership has repurchased over 563 700 common units for a total cost of US$7.4 million and an average price of US$13.15 per unit.

CEO commentary:

“For both the fourth quarter and the full year 2019, Teekay LNG recorded strong financial results through successfully completing our newbuilding program in late-2019 and securing attractive time-charters during the year,” commented Mark Kremin, President and Chief Executive Officer of Teekay Gas Group Ltd. “By virtue of having our LNG fleet 97% fixed through fiscal 2020, we are well-insulated from the current weakness in the spot LNG shipping market and the low price of natural gas in international markets,” commented Kremin. “Looking ahead to 2020, we remain confident that our results will fall within the anticipated guidance ranges for the year presented at our Investor Day event in November 2019, with adjusted net income between US$2.60 to US$3.10 per unit, which is 45 to 73% higher than our actual 2019 adjusted net income per unit of US$1.79.”

“In the fourth quarter of 2019, we concluded our 6-year, US$3.5 billion newbuilding program with the successful delivery of our last two Yamal ice-breaking LNG newbuildings to our Yamal LNG Joint Venture, upon which they immediately commenced fixed-rate time-charter contracts. Notably, these LNG carriers were delivered approximately three months ahead of schedule, resulting in an additional three months of charter hire to our Yamal LNG Joint Venture. In addition, the Bahrain regasification terminal completed mechanical construction and commissioning. With our orderbook now complete and our fully-delivered LNG fleet fixed on period charters, the partnership is expected to benefit from its long-term contracted cash flows, and to continue allocating capital in a manner that focuses on the delevering and strengthening of its balance sheet while also returning capital to unitholders.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27022020/teekay-lng-partners-announces-its-4q19-and-2019-annual-results/

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