Awilco LNG: charter contracts for two LNG carriers

August 11, 2017 - Awilco LNG has extended charter contracts for two LNG carriers owned by Teekay LNG Partners to December 2019. The contracts, relating to the Wilpride and Wilforce LNG carriers, were previously set to expire in the fourth quarter of 2017 and the second quarter of 2018.

Additionally, as part of this extension, Teekay agreed to defer charter hire payments of an average of USD 15,600 per day per vessel commencing in July 2017 through the end of the charter period, with such deferred amounts added to the purchase obligation price.

The deal has enabled Teekay LNG to push the loan facilities associated with these vessels to June 2020, which were previously scheduled to mature in 2018. The debt amounts to approximately USD 180 million.

Teekay announced the contract extension on the back of a reported GAAP net loss of USD 16.1 million and adjusted net income of USD 17.9 million in the second quarter of 2017, down from corresponding USD 43 million in income reported a year earlier. In July 2017, the Teekay LNG-Marubeni Joint Venture secured short-term charter contracts on two vessels, the Magellan Spirit and the Awra Spirit. The Magellan Spirit commenced a six-month contract (plus two three-month option periods) in July 2017 and the Awra Spirit will commence a 15-month charter contract in the fourth quarter of 2017