Teekay LNG Q3 net profits jumps

Accounting for derivatives and currency losses, the adjusted net income attributable to the partners was $46.6m, down from $48.1m in Q3 last year. The drop in adjusted income was attributed to the sale of three tankers between the two periods, which was partially offset by the acquisitions of two Awilco LNG carriers in 2013.

The result brings Teekay LNG's nine month adjusted profit to $131.1m, a slight improvement on $128.7m for the first three quarters of 2013.

Peter Evensen, ceo, commented. “With strong fundamentals in the liquefied gas market, the partnership continues to add to its existing pipeline of over $2.5bn of committed fleet growth, most of which is scheduled to deliver between 2016 and 2020, including 15 LNG carrier newbuildings and nine LPG carrier newbuildings.”

Outside of the period, Teekay LNG bought and chartered-back a 2003-built 10,200 cu m LPG carrier with IM Skaugen for $27m. The ship is expected to deliver in November and will continue to trade in the Norgas pool on a five-year charter with a profit share mechanism in place.

Teekay LNG currently owns 54 vessels, comprising 29 LNG carriers, 17 LPG carriers and eight conventional tankers. It also has four chartered-in ships and 24 newbuildings on order. At the end of the quarter, the average remaining contract duration for the Teekay LNG portfolio stood at 13 years.

Elsewhere in the group, Teekay Tankers benefitted from a strengthening crude transport market, recording a $5.8m profit for the third quarter.