Teekay LNG’s net income slides in Q4

first_imgIce-class LNG carrier Eduard Toll (Image courtesy of Teekay LNG)Teekay LNG Partners, one of the world’s largest owners of LNG carriers, reported a 53 percent drop in its net income in the fourth quarter of 2017.Bermuda-based Teekay LNG posted a quarterly net income of $39.9 million as compared to $84.4 million in the fourth quarter of 2016.Adjusted net income stood at $34 million in the fourth quarter of 2017. as compared to $29 million the year before.For the full-year of 2017, net income dropped 76 percent to $34 million while adjusted net income slid 37 percent to $93.9 million.Quarterly voyage revenues rose 25.3 percent to $126.3 million, while full-year revenues increased 9 percent to $432.7 million, Teekay LNG said.Teekay said it sold in January its 50 percent stake in the floating storage and regasification units (FSRU) Excelsior to the US-based floating LNG player Excelerate Energy.The vessel was sold for net proceeds of about $44 million after repaying external debt obligations. Teekay LNG originally acquired its stake in the Excelsior in 2010 from Belgium’s Exmar and expects to record a gain of approximately $2 million on the sale in the first quarter of 2018.In the period from October 2017 through February 2018, Teekay LNG took delivery of three MEGI LNG carrier newbuildings, the Macoma, Murex and Magdala. All of the vessels started their charters with the Hague-based LNG giant Shell ranging between six to eight years in duration.Also worth mentioning, Teekay LNG’s 50 percent-owned joint venture with China LNG took delivery in January of its first ARC7 LNG carrier newbuilding, the Eduard Toll, which immediately commenced its 28-year charter contract with the Novatek-operated Yamal LNG project.“Looking ahead to the remainder of 2018, we expect to take delivery of another five LNG carrier newbuildings and a further three mid-sized LPG carrier newbuildings in our 50/50 joint venture with Exmar,” said Mark Kremin, President and Chief Executive Officer of Teekay Gas Group.“We also continue to make good progress on refinancing our debt maturities,” commented Kremin. “I am pleased to report that in November 2017 we refinanced and upsized our unsecured corporate revolving credit facility and in February 2018, we refinanced one of our 2018 loan maturities with a new five-year, $197 million long-term debt facility.”last_img

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