Teekay LNG’s cash flow declines in Q4

Teekay LNG, one of the world’s largest owners of LNG carriers, reported a cash flow of US$61.5 million for the fourth quarter 2015, compared to $69 million in the same quarter the year before.

The company’s cash flow for the entire 2014 came to $254.6 million compared just slightly below the $254.8 for the year before, according to Teekay LNG’s statement issued on Thursday.

The decrease in Teekay LNG’s quarterly cash flow was primarily due to the termination of the charter contract for its two 52 percent-owned LNG carriers in March 2015, namely, the Magellan Spirit and Methane Spirit.

The company’s net income was at $39.5 million for the quarter ended December 31, 2015, compared to $45.6 million for the same period of the prior year.

Peter Evensen, Chief Executive Officer of Teekay said that despite the drop in cash flow “Teekay LNG continues to operate with high fleet utilization generating stable cash flows.”

He added that for 2016, the company intends to remain on time and on budget, as well as to secure the long-term financing for its projects.

He noted that the company’s first two MEGI LNG carrier newbuildings, which will be financed with a recently secured $360 million long-term lease facility, are scheduled to commence their respective fee-based contracts with Cheniere Energy in March and the third quarter of 2016, lifting LNG cargos from Cheniere’s Sabine Pass LNG export facility.

LNG World News Staff