Teekay LNG has no problem being boring.
Despite all the Covid-19-driven turmoil in 2020, the New York-listed LNG carrier owner expects to be within the range of guidance it published last year as it sticks to its strategy of fixing its fleet on long-term charters.
"Last quarter we were referred to as boring in a year when boring was good, with one analyst referring to us as a Swiss watch," chief executive Mark Kremin said on the company's third quarter earnings call on Thursday.
"Both names I think we're happy to be called."
He said the full-year figures would be closer to the bottom of the ranges disclosed last November when Teekay LNG revised them upward.
Then, it said it expected 2020 net income to come in between $165m and $175m, or $1.75 to $1.85 on a per share basis. Consolidated adjusted Ebitda was forecasted to come in between $435m and $445m and total adjusted Ebitda $685m and $695m.
Teekay LNG also said it is 100% fixed for the remainder of the year with the 165,500-cbm Marib Spirit (built 2008) committed on a one-year charter with a potential extension and 96% fixed for 2021.
Kremin said the company expects that figure to rise as the 165,500-cbm Methane Spirit (built 2008) and the 173,000-cbm Creole Spirit (built 2016) coming up for renewal in February 2021.
The company further expects to raise its dividend, as it has tended to do on an annual basis, but would not commit to a number until the board meets in December.
All this was achieved, Kremin said, as "the world at large, the broader energy and equity markets and the natural gas and LNG shipping markets have all experienced volatility and bouts of uncertainty".
For the third quarter, Teekay LNG posted profit attributable to partners of $40.1m, down by more than $10m from the $50.4m posted last year.
The company said the performance was due to increased drydockings and repairs plus lower charter rates year-over-year.
In late trading on Thursday, Teekay LNG shares were down $0.29 to $11.77.
