LNG shipper Teekay LNG Partners reported a drop in adjusted income during the third quarter of 2017, as compared to the corresponding quarter last year.
Net income decreased from $32 million in the third quarter of 2016 to $20.9 million during the period under review.
This was primarily due to lower revenues from the Partnership’s six liquefied petroleum gas (LPG) carriers chartered to I.M. Skaugen, the sale of a conventional tanker Asian Spirit and lower spot rates for certain vessels operating under the joint venture with Exmar.
Mark Kremin , the company’s president and CEO noted that in October and November the company took delivery of two wholly-owned MEGI LNG carrier newbuildings and one 30-percent owned LNG carrier newbuilding, all of which immediately commenced charter contracts ranging between six and 20 years in duration with Shell.
“Looking ahead to 2018, we expect to take delivery of an additional eight LNG carrier newbuildings, all of which are scheduled to commence charter contracts ranging between six and 28 years in duration, which we expect will provide further cash flow and earnings growth to the Partnership,” Kremin said.
In November 2017, the Partnership completed a $327 million long-term debt facility to finance a floating storage unit (FSU) to be chartered on a 20-year charter contract to the Bahrain regasification project commencing in the third quarter of 2018 and one MEGI LNG carrier newbuilding to be chartered on a 13-year deal with BP starting in early-2019.