Teekay Returns to DSME for More

Teekay LNG Partners has entered into an agreement with Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) for the construction of one additional 173,400 cbm MEGI LNG carrier newbuilding, Teekay said in its quarterly results.

The vessel is worth approximately USD 220 million. Under the contract, Teekay LNG has options to order up to four more vessels.

The company said it intends to secure long-term contract employment for the ordered vessel prior to its scheduled delivery in the fourth quarter of 2018.

The contract comes in the wake of Teekay LNG’s previously ordered four LNG carrier newbuilds at DSME, worth $630 million.

In early-December 2014, Teekay LNG secured time-charter contracts with a wholly owned subsidiary of Royal Dutch Shell plc (Shell) for five newbuilding LNG carriers.

Upon delivery of the vessels between the second half of 2017 into 2018, the vessels will operate as part of Shell’s global LNG fleet under time-charters ranging in duration from six to eight years, plus extension options.

Teekay Corporation recorded a total cash flow from vessel operations of $308.2 million in fourth quarter of 2014, an increase of 25 percent from the same period of the preceding year. The corporation’s total consolidated cash flow from vessel operations  in 2014 was over $1 billion.

Fourth quarter 2014 adjusted net income attributable to stockholders of Teekay was $30.7 million. Teekay’s adjusted net income for 2014 fiscal year attributable to stockholders reached USD 1.5 million.

Teekay’s total consolidated liquidity totaled in approximately $1.4 billion as at December 31, 2014.