Long-Term charters keep teekay afloat

Teekay LNG Partners L.P. reported adjusted net income of USD 46.7 million for the quarter ended September 30, 2014, compared to USD 48.2 million for the same period of the prior year. For the nine months ended September 30, 2014, Teekay LNG reported adjusted net income of USD 131.1 million, compared to USD 128.7 million
for the same period of the prior year. Teekay LNG says that the adjusted net income for the three months ended September 30, 2014 decreased from the same period in the prior year, mainly due to the sale of three 2000 and 2001-built conventional tankers, Tenerife Spirit, Algeciras Spirit, and Huelva Spirit between December 2013 and August 2014, which were partially offset by the acquisitions of, and contributions from, the two Awilco LNG carriers acquired by the company in late-2013.

 The nine month net income increase was mainly due to the same factors, as well as to higher earnings from the company’s LPG carriers in the Exmar LPG BVBA joint venture. During the third quarter of 2014, Teekay LNG generated distributable cash flow of USD 64.2 million, compared to USD 64.6 million in the same quarter of the previous year.

The slight decrease in distributable cash flow was primarily due to the sale of three 2000 and 2001-built conventional tankers between December 2013 and August 2014 and related restructuring charges, which were partially offset by the company’s acquisition and charter-back of two liquefied natural gas (LNG) carriers from Awilco LNG ASA (Awilco) in September and November 2013.