Teekay LNG posts rising second-quarter profit

Teekay LNG Partners, one of the world’s largest owners of LNG carriers, reported a rising profit for the second quarter of the year. 

Net income for the second quarter reached $16.4 million, which compares to a profit of $2.7 million in the corresponding quarter in 2018.

The profit, however, dropped slightly compared to the $21.6 million reported in the first quarter of the year.

Results, compared to the same quarter in the prior year, were positively impacted by earnings from the nine liquefied natural gas (LNG) carrier newbuildings delivered into the Partnership’s consolidated fleet and equity-accounted joint ventures between May 2018 and June 2019.

The profit has also been boosted by higher earnings from the Torben Spirit upon redeployment at a higher charter rate that commenced in December 2018, lower vessel operating expenses due to timing of expenditures, lower general and administrative expenses due primarily to lower corporate costs; and higher earnings from the Partnership’s seven multi-gas carriers.

These increases in earnings were partially offset by lower earnings from the Partnership’s conventional tanker fleet for the three months ended June 30, 2019 due to the sales of three conventional tankers between October 2018 and January 2019.

Speaking of the results, Mark Kremin, president and CEO of Teekay Gas Group, said, “Our financial results improved again this quarter compared to both the previous quarter and the same quarter last year due to recent newbuilding deliveries and higher charter rates on certain LNG carriers, partially offset by an increase in drydocks and waiting time prior to the commencement of recently secured LNG charters at higher rates.”

“Looking ahead, we expect our financial results for the second half of this year to continue to improve now that each of these new charters have commenced, leading to higher utilization and higher revenues, coupled with fewer drydocks and the expected delivery of another three 50 percent-owned Yamal ARC7 LNG newbuildings and the start-up of the Bahrain LNG regasification terminal,” Kremin said.