Teekay LNG’s cashflow slips in Q3

Teekay LNG, one of the world’s largest owners of LNG carriers, reported a cash flow of $61 million in the third quarter, compared to $64 million in the same period of the prior year.

The drop in Teekay LNG’s quarterly cash flow was mainly due to expiration of charter contracts for its two 52 percent-owned LNG tankers in March, namely Magellan Spirit and Methane Spirit, the company said on Thursday.

Teekay LNG’s net income was $37 million for the quarter ended September 30, compared to $47 million for the same period of the prior year.

“The Partnership generated stronger than expected distribution coverage in the third quarter, primarily due to higher than expected revenues from our Exmar LPG joint venture,” Peter Evensen, CEO of Teekay said.

According to Evensen, the first two of the partnership’s MEGI LNG carrier newbuildings are expected to deliver starting in early-2016, with the first vessel having recently commenced sea trials and the second vessel having been launched at the shipyard during the third quarter.

Both vessels will operate under charter contracts with Cheniere Energy to export LNG from the Sabine Pass LNG facility, which is expected to ship its first cargo of the chilled gas in early-2016.

LNG World News Staff; Image: Teekay LNG