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Teekay releases 3Q16 results

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LNG Industry,

Teekay LNG Partners has released its results for 3Q16, reporting GAAP net income attributable to the partners of US$50.1 million and adjusted net income attributable to the partners of US$32.1 million.

The company also reports that it generated distributable cash flow of US$54.3 million in the quarter (US$0.68 per common unit). Furthermore, it secured short and long-term charter contracts for its two remaining unchartered MEGI LNG carrier newbuildings, meaning that all of the partnership’s LNG newbuildings have now secured charter contracts. In addition to this, the company claims that it continued to make progress in securing long-term debt financing for committed growth projects delivering through 2020.

The CEO of Teekay GP LLC, Peter Evensen, said: “Following the partnership's strong cash flows generated in the second quarter of 2016, which were supplemented by a favourable 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.

"We are pleased to report that our commercial team has now successfully 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.

"Securing long-term financing for our growth projects that deliver through early-2020 is a major focus.

"We continued to make significant progress and anticipate completing approximately US$1.3 billion in long-term financings for various growth projects over the next few months. In addition, the partnership has again demonstrated its access to capital markets and has bolstered its liquidity position through the recent issuance of US$125 million in preferred equity and US$110 million of five-year Norwegian Kroner-denominated unsecured bonds in an over-subscribed offering.

"As announced last week, I have decided to retire after 11 years with the Partnership and I am confident that Mark Kremin is the right person going forward as the President and CEO of Teekay Gas Group Ltd. Mark is a highly experienced leader in the gas industry and has led the business and project development aspects of many of Teekay LNG's largest and most successful investments and, since December 2015, has headed up the teams responsible for the commercial and technical operations as well. We are well-positioned with a market-leading position, strong operations, a pipeline of built-in growth projects which are expected to provide significant cash flow growth, and a great team now led by Mark, while Teekay's existing corporate finance team continues to be responsible for our financings."

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