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Teekay LNG Partners reports 3Q19 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 ended 30 September 2019.

Highlights

  • GAAP net income attributable to the partners and preferred unitholders of US$47.4 million and GAAP net income per common unit of US$0.51.
  • Adjusted net income attributable to the partners and preferred unitholders of US$50.5 million and adjusted net income per common unit of US$0.55 (excluding items listed in Appendix A to this release).
  • Total Adjusted EBITDA of US$180.2 million.
  • Took delivery of fourth and fifth, 50% owned ARC7 LNG carrier newbuildings in August 2019 and early-November 2019, respectively; final ARC7 newbuilding expected to deliver in late-November 2019.
  • Bahrain LNG Regasification terminal expected to commence operations before year-end.
  • Fiscal 2019 earnings guidance range revised upwards by 10% and today introducing 2020 guidance with earnings per unit projected to increase by over 55% from 2019 guidance.
  • Expect distributions to increase by 32%, to US$1.00 per common unit per annum, commencing with the first quarter of 2020 distribution, a second consecutive year of distribution growth in excess of 30%.

CEO commentary

“During the third quarter of 2019, Teekay LNG recorded its highest ever quarterly results with adjusted earnings per common unit up almost 3.5 times from the same period of the previous year,” commented Mark Kremin, President and Chief Executive Officer of Teekay Gas Group Ltd. “We expect Teekay LNG’s results will continue to increase, as reflected in our increased and tightened 2019 guidance range and a new, higher 2020 guidance range issued today. Based on this foundation of earnings growth expected in 2020, we intend to increase our distributions by 325 to $1.00 per common unit per annum, starting with our first quarter of 2020 distribution payable in May 2020.” Kremin continued, “I am also pleased to report that with the recent sale of our last conventional tanker, Teekay LNG is now 1005 focused on our core business of transporting LNG and LPG.”

“We are currently in the process of completing the last of our recent phase of growth projects,” commented Kremin. “We have made good progress and anticipate the start-up of the Bahrain regasification terminal before the end of the year. In August and early-November 2019, we delivered our fourth and fifth ARC7 ice-breaking LNG carriers for the Yamal LNG project, which immediately commenced their respective long-term charter contracts. We expect the sixth ARC7 to deliver and commence its long-term charter contract with Yamal in late-November 2019, which will mark the successful completion of the US$3.5 billion growth program we commenced in 2013. With nearly all of our current growth projects delivered and generating cash flows under long-term contracts, we are moving from a phase of project execution to a period of significant cash flow generation, which we believe will enable the partnership to allocate capital towards balance sheet delevering and returning capital to unitholders.”

Read the article online at: https://www.lngindustry.com/regasification/14112019/teekay-lng-partners-reports-3q19-results/

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