Teekay LNG Cash Flow Rises

Teekay LNG Partners said it has, during the third quarter of 2013, generated distributable cash flow of $64.6 million, compared to $57.8 million in the same quarter of the previous year.

The increase in distributable cash flow was primarily due to the Partnership’s acquisition of a 50 percent interest in Exmar LPG BVBA, a liquefied petroleum gas (LPG) carrier joint venture with Exmar, in February 2013 and its acquisition and charter-back of a liquefied natural gas (LNG) carrier from Awilco LNG ASA (Awilco) in September 2013. The increase was partially offset by lower charter rates on two of the Partnership’s conventional tankers as a result of renegotiated rates effective October 2012 for a period of two years.

“With the Partnership’s recent accretive transactions with Awilco, we are pleased to announce today that management intends to recommend to the Board of Directors an increase to the Partnership’s quarterly distribution by 2.5 percent, commencing with the fourth quarter distribution payable in February 2014,” commented Peter Evensen, Chief Executive Officer of Teekay GP LLC. “The two Awilco acquisition-leaseback transactions combined with the two, five-year time- charters with Cheniere Marketing L.L.C. secured in June 2013, increase the Partnership’s estimated forward fixed-rate revenues to approximately $6.9 billion while further diversifying our fixed-rate contract portfolio.”

Evensen continued, “Looking ahead, the Partnership has a number of visible growth projects, including the four LNG carrier newbuildings scheduled to be delivered in 2016 and the 12 LPG newbuildings scheduled to be delivered between 2014 and 2018 in our 50 percent joint venture with Exmar NV, including two vessel options that were exercised last week. In addition, the Partnership is currently involved in several LNG shipping and floating regasification project tenders with expected start-up dates in early-2016 through 2017.”

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LNG World News Staff, November 7, 2013; Image: Teekay LNG