Teekay LNG Partners posts third-quarter income jump

Teekay LNG Partners, one of the world’s largest owners of LNG carriers, reported a net income of $47.4 million for the quarter ending September 30. 

Compared to the previous quarter ($16.4 million) this is a 188 percent jump from the previous quarter and an 82.54 percent jump over the corresponding quarter last year when the company reported a net income of $25.9 million.

The figures were positively impacted by earnings from the nine liquefied natural gas (LNG) carrier newbuildings which delivered into the Partnership’s consolidated fleet and equity-accounted joint ventures between July 2018 and August 2019.

The income was also boosted by higher earnings from the Torben Spirit upon redeployment at a higher charter rate that commenced in December 2018, higher earnings from the Magellan Spirit, which was chartered-in from the Partnership’s 52 percent-owned joint venture with Marubeni Corporation commencing in September 2018; higher earnings in the MALT Joint Venture from the commencements of the Arwa Spirit and Marib Spirit one-year charter contracts at higher rates in June and July 2019, respectively, and recognition of drydock hire revenue for the Meridian Spirit, and higher earnings from the Partnership’s seven multi-gas carriers.

These increases were partially offset by lower earnings due to more off-hire days for scheduled dry dockings and repairs during the third quarter of 2019 for certain of the Partnership’s LNG carriers compared to the same quarter of the prior year.

“During the third quarter of 2019, Teekay LNG recorded its highest ever quarterly results with adjusted earnings per common unit up almost 3.5x from the same period of the previous year,” said Mark Kremin, president and CEO of Teekay Gas Group.

He said that the company expects its results to continue increasing, adding that Teekay LNG is now 100 percent focused on its core business of transporting LNG and LPG as it sold its last conventional tanker.