Teekay LNG Partners has reported the company’s results for the second quarter of 2014.
During Q2 2014, Teekay LNG generated distributable cash flow of US$ 61.5 million, compared to US$ 55.4 million in Q2 2013.
Commenting on the results, Teekay CEO, Peter Evensen, said: “In June and July, we finalized two notable transactions that we have been working on for some time that will provide future distributable cash flow for the Partnership and which highlight our new strategic relationships with China-based partners.
"Through our new 50/50 joint venture with China LNG Shipping, we agreed to provide six icebreaker LNG carrier newbuildings for the Yamal LNG project which are scheduled to deliver in 2018 through 2020 and operate under fixed-rate contracts until 2045. And the Partnership acquired ownership interests, together with two China-based energy and shipping companies and one international shipping company, in four LNG carrier newbuildings to be built in China. These LNG carriers are scheduled to deliver in 2017 through 2019 at which time they will commence 20-year fixed-rate charter contracts with BG Group.
“Together, these two transactions provide additional diversification of the Partnership's fixed-rate contract portfolio and increase its total forward fixed-rate revenues to approximately US$ 11 billion, while also extending the remaining weighted-average contract duration for our LNG carrier fleet to approximately 14 years.
“Looking ahead, the addition of these new vessels will further complement the Partnership's existing pipeline of growth projects, which includes 10 LPG carrier newbuildings, through our Exmar LPG joint venture, and five MEGI LNG carrier newbuildings, all scheduled for delivery between 2014 and 2018."
Evensen added: "We continue to see strong long-term fundamentals for marine-based liquefied gas transportation, which is already creating new opportunities for LNG and LPG shipping. In the United States alone, the expected start-up of several LNG liquefaction projects from 2016 onwards is expected to create demand for over 80 additional LNG carriers. With a solid operating track record, a steadily expanding fleet of modern fuel-efficient vessels, and a strong financial foundation, we believe Teekay LNG is well-positioned for future growth."
Teekay LNG reported adjusted net income of US$ 42.6 million for the quarter, compared to US$ 41.5 million for the same quarter of 2013.
This increase was mainly due to the acquisitions of, and contributions by, the two Awilco LNG carriers in late 2013, and higher earnings from the company’s LPG carriers in the Exmar LPG joint venture, which were partially offset by the sale of two conventional tankers built in 2000: Tenerife Spirit and Algeciras Spirit.
Image courtesy of Teekay LNG.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/lng-shipping/07082014/teekay-lng-q2-2014-results-1167/