Teekay LNG Partners Posts Q2 Results (Bermuda)

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. today reported its results for the quarter ended June 30, 2011.

During the second quarter of 2011, the Partnership generated distributable cash flow of $37.6 million, compared to $36.0 million in the same quarter of the previous year. The increase primarily reflects the incremental distributable cash flow resulting from the Partnership’s November 2010 acquisition of a 50 percent interest in two LNG carriers and the Partnership’s June 2011 acquisition of one Multigas carrier, partially offset by the sale of the Dania Spirit LPG carrier in November 2010 and increased off-hire days relating to scheduled drydockings during the second quarter of 2011.

On July 22, 2011, the Partnership declared a cash distribution of $0.63 per unit for the quarter ended June 30, 2011. The cash distribution is payable on August 12, 2011 to all unitholders of record on August 5, 2011.

“The Partnership posted another quarter of consistent results highlighting the stability of the cash flow generated by our diversified mix of long-term, fixed-rate LNG, LPG and crude oil shipping charters,” commented Peter Evensen, Chief Executive Officer of Teekay GP LLC. “In mid-June, the Partnership took delivery of the first of two Multigas newbuildings which commenced operations under a 15-year fixed-rate charter contract with Skaugen. This and other scheduled fleet additions, including the remaining LPG and Multigas carriers and 33 percent interest in four Angola LNG carriers scheduled to commence operations in the second half of 2011 and early 2012, should result in steady growth in the Partnership’s distributable cash flows over the next few quarters. The Partnership completed a $162 million common unit offering in April to fund the equity portion of these acquisitions.”

Mr. Evensen continued, “The level of project activity in the LNG sector has remained high, reflecting the strong LNG market fundamentals. With over $550 million of available liquidity, the Partnership remains well positioned financially to pursue additional projects and acquisitions.”

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Source: Teekay LNG Partners, August 11, 2011;