Teekay LNG Partners has secured a new, three-year fixed-rate charter contract for the LNGC ‘Magellan Spirit’ to an integrated oil and gas company commencing this summer.
Concurrently, Teekay LNG extended the in-charter of the ‘Magellan Spirit’ until the summer of 2022.
In addition, Teekay GP, the general partner of Teekay LNG Partners, has declared a cash distribution of $0.19 per common unit for first quarter of this year, representing a 36% increase over the previous quarter’s distribution.
The cash distribution is payable on 15th May, 2019 to all common unitholders of record on 7th May, 2019.
“We are excited to be able to announce a significant increase in Teekay LNG’s distribution,” Mark Kremin, President and CEO of Teekay Gas Group said. “Our new annual distribution of $0.76 per unit is supported by our diverse portfolio of long-term fixed-rate LNG contracts.
“Importantly, our new distribution level strikes a balance between providing a meaningful increase in returns to our unitholders, while simultaneously allowing Teekay LNG to continue along its existing delevering path.
“Including the new, three-year charter, the Partnership’s LNG carrier fleet is approximately 97, 93 and 92% fixed for the remainder of this year, 2020 and 2021, respectively, which further supports Teekay LNG’s expected earnings growth and continued deleveraging profile over the next few years,” he concluded.