Write-downs push Teekay LNG to Q1 loss

Teekay LNG Partners, one of the world’s largest owners of LNG carriers, reported a slump in profit for the first three months of the year.

The company reported a $33 million net loss, down from $21.6 million profit in the first quarter of 2019.

The results were impacted mostly by write-downs of $45 million recorded on six multi-gas carriers in the first quarter of 2020.

The company’s LNG segment was negatively impacted primarily by a reduction in earnings upon the sales of the WilForce and WilPride LNG carriers in January 2020 and lower earnings from the Magellan Spirit upon its redeployment in May 2019 at a lower charter rate.

Commenting on the company’s operations, Teekay Gas Group president and CEO, Mark Kremin, said, “while the unprecedented recent global events are clearly a major area of focus for us, our long-term contract cover has ensured that they have had a minimal impact on Teekay LNG’s operations and cash flows so far in 2020, and we expect this to continue.”

He added the company has secured three new fixed-term LNG charters. “Our LNG fleet is now 100 percent fixed on ‘take-or-pay’ charters with high-quality customers and with over $370 million in total liquidity as of March 31, 2020,” Kremin said.