Teekay LNG Partners Cash Flow Rises (Bermuda)

Teekay GP the general partner of Teekay LNG Partners L.P. reported the Partnership’s results for the quarter ended September 30.

During the third quarter of 2012, the Partnership generated distributable cash flow of $57.8 million, compared to $43.7 million in the same quarter of the previous year.

The increase primarily reflects the incremental distributable cash flow resulting from the following acquisitions: one Multigas carrier delivered in October 2011; a 33 percent interest in four liquefied natural gas (LNG) carriers delivered between August 2011 and January 2012; one liquefied petroleum gas (LPG) carrier delivered in September 2011; and a 52 percent interest in six LNG carriers acquired in February 2012.

On October 12, 2012, the Partnership declared a cash distribution of $0.675 per unit for the quarter ended September 30, 2012. The cash distribution will be paid on November 9, 2012 to all unitholders of record on October 24, 2012.

“Shipping requirements to support new liquefaction projects scheduled to come on-line starting in 2015 are expected to create significant new demand for the global LNG shipping fleet,” commented Peter Evensen, Chief Executive Officer of Teekay GP L.L.C. “Against this backdrop, the Partnership is currently actively bidding on several LNG and floating storage and regasification projects with start-up dates in the 2015 through 2017 timeframe. Including approximately $180 million of net proceeds from the Partnership’s September 2012 follow-on equity offering, Teekay LNG is well-positioned for investment in one or more quality growth opportunities.”

Financial Summary

The Partnership reported adjusted net income attributable to the partners of $41.7 million for the quarter ended September 30, 2012, compared to $29.7 million for the same period of the prior year. Adjusted net income attributable to the partners excludes a number of specific items that had the net effect of decreasing net income by $8.6 million and $2.0 million for the three months ended September 30, 2012 and 2011, respectively. Including these items, the Partnership reported net income attributable to the partners, on a GAAP basis, of $33.1 million and $27.6 million for the three months ended September 30, 2012 and 2011, respectively.

For the nine months ended September 30, 2012, the Partnership reported adjusted net income attributable to the partners of $117.8 million, compared to $79.1 million for the same period of the prior year. Adjusted net income attributable to the partners excludes a number of specific items that had the net effect of decreasing net income by $22.3 million and $29.6 million for the nine months ended September 30, 2012 and 2011, respectively. Including these items, the Partnership reported net income attributable to the partners, on a GAAP basis, of $95.5 million and $49.5 million for the nine months ended September 30, 2012 and 2011, respectively.

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LNG World News Staff, November 08, 2012