Teekay enjoys record income

Thursday, 04 March 2021
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Teekay LNG Partners has reported a GAAP net income of $35.1 mill and GAAP net income per common unit of $0.32 for the fourth quarter of 2020.

For the full year, the company recorded GAAP net income of $87.4 mill and $0.73 per common unit.

Adjusted net income for 4Q20 was $60 mill and adjusted net income per common unit was $0.61, while the company recorded a record high of $233.8 mill and $2.45 per common unit, respectively, for fiscal 2020.

Total 4Q20 adjusted EBITDA was $190.2 mill and $757.9 mill for fiscal 2020.

In early December, 2020, Teekay secured a fixed-rate charter for the 52% owned ’Methane Spirit’ to early-2023, thus the Partnership's LNG fleet is 97% fixed for this year and is currently 89% fixed for 2022.

Teekay LNG said that it expected to increase its common unit distributions by 15% to $1.15 per common unit, on an annualised basis, commencing with the 1Q21 distribution to be paid in May, 2021.

“For both the fourth quarter and fiscal year 2020, we generated strong earnings and cash flows resulting in the highest ever recorded annual adjusted results for Teekay LNG,” commented Mark Kremin, President and CEO of Teekay Gas Group. “During a year which saw extreme volatility in gas prices, LNG shipping rates and equity markets, our strategy of chartering substantially all of our LNG fleet on long-term contracts helped us to achieve consistently strong results throughout the year and to maintain certainty and forward visibility amid the unprecedented uncertainty and volatility that impacted many others in the broader energy space in 2020.

“In 2020, we increased our total adjusted EBITDA and adjusted net income by 11% and 39%, respectively, over our 2019 fiscal results, while simultaneously reducing our proportionate net debt by nearly $560 mill, or over 10%.

“I’m also pleased to announce our plan to increase our common unit distributions by 15%, to $1.15 per common unit per annum, commencing with the first quarter’s distribution to be paid in May, 2021.

“This represents our third consecutive year of double-digit increases to our distributions, which is supported by not only a record level of adjusted earnings, but also an industry-leading revenue backlog of long-term contracts to a diversified portfolio of strong counterparties.

“As a result, Teekay LNG's distributions are well-covered, which enables the Partnership to provide an attractive distribution to existing and new investors while also build equity value and financial flexibility through continued balance sheet delevering,” he concluded. 

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