Teekay GP LLC, the general partner of Teekay LNG Partners L.P. (Teekay LNG or the Partnership) today reported its results for the quarter ended September 30, 2010.
During the third quarter of 2010, the Partnership generated distributable cash flow(1) of $36.7 million, compared to $29.2 million in the same quarter of the previous year. The increase primarily reflects the acquisition of two LNG carriers and one LPG carrier during the second half of 2009, as well as the acquisition of the two Suezmax oil tankers and one Handymax product tanker in March 2010, all of which are operating under long-term, fixed-rate charter contracts.
On October 25, 2010, the Partnership declared a cash distribution of $0.60 per unit for the quarter ended September 30, 2010. The cash distribution is payable on November 12, 2010 to all unitholders of record on November 5, 2010.
“The increase in the Partnership’s third quarter distributable cash flow compared to the same period one year ago highlights the steady growth in Teekay LNG’s portfolio of long-term fixed-rate contracts and reflects the addition of several vessels acquired from our sponsor, Teekay Corporation,” commented Peter Evensen, Chief Executive Officer of Teekay GP LLC.
“The Partnership’s acquisition of a 50 percent interest in two LNG carriers from Exmar will provide an additional $10 million of annual distributable cash flow and represents an attractive entry point into the complimentary floating LNG regasification business. Importantly, the Exmar transaction also demonstrates the Partnership’s ability to grow through direct third party acquisitions.
In addition, with the delivery of gas projects currently being warehoused by Teekay Corporation in 2011 and 2012, including two Skaugen Multigas newbuildings and a one-third interest in four Angola LNG newbuildings, we expect further opportunities to grow the Partnership’s distributable cash flow going forward.”
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Source: Teekay LNG Partners, November 5, 2010