Teekay’s 2014 profit slightly up
Teekay LNG Partners posted a net income of $176.7 million for the year ended December 31, 2014, compared to $175.0 million for the same period of the prior year.
Net income for the quarter ended December 31 was at $45.6 million, compared to $46.2 million for the same period.
In the fourth quarter, the partnership generated distributable cash flow of $69.0 million, compared to $63.4 million in the same quarter of the previous year.
The increase in distributable cash flow was primarily due to the acquisition from and bareboat chartering back to I.M. Skaugen of a liquefied petroleum gas carrier, the Norgas Napa, in November 2014, the acquisition of the second liquefied natural gas carrier from Awilco LNG in November 2013 and an increase in charter rates for the partnership’s two Suezmax tankers, Bermuda Spirit and Hamilton Spirit, which reverted back to their original rates in October 2014. These increases were partially offset by the sale of three 2000- and 2001-built conventional tankers, net of related restructuring charges, between December 2013 and August 2014.
Peter Evensen, Chief Executive Officer of Teekay GP said that despite the current volatility in the global energy markets, the fundamentals for LNG shipping remain strong with a current estimated requirement for over 110 standard size LNG carriers above the existing orderbook by 2020.
“With a solid operating track record, a steadily expanding fleet of modern fuel-efficient vessels, and a strong financial foundation, we believe Teekay LNG is well-positioned for steady long-term growth,” said Evensen.