Gas shipowner Seapeak is starting to include indications of its EU Emissions Trading System (EU ETS) costs in its results.

In a first-quarter statement, Seapeak said that as of 31 March 2024 it had recognised an obligation to submit Emissions Allowances (EUAs) of $5.5m included in its other long-term liabilities. These have been measured using the EUA spot price at the end of March.

The Stonepeak-controlled company also listed an amount of $3.8m, included in investments in and advances to equity-accounted joint ventures.

It said a further $1.7m is due from charterers which is reflected in other assets.

Seapeak explained in its figures that the EU ETS, which came into force on 1 January 2024, is being phased in over a three-year period.

Emissions for voyages to or from Europe or within Europe will be included within the scope of EU ETS based on 40% during 2024, and rising to 70% during 2025 and 100% in 2026.

The company needs to submit EUAs for all vessels under its operational management on an annual basis before 30 September each year and detail how these will be reflected in its accounts.

Seapeak’s first-quarter net income fell to $81.9m from $97.9m in the comparable three months of 2023.

Revenues for the quarter slipped slightly to $179.1m from $185.2m in the same period a year earlier.

During the quarter the company said it sold the multigas carriers the 10,208-cbm Seapeak Napa (built 2003) and the 5,820-cbm Seapeak Cathinka (built 2009) for $10.4m and $6.5m, respectively.

It also sold the 5,820-cbm Seapeak Camilla (built 2010) for $6.7m in April.

At the end of March Seapeak boasted a fleet of 49 LNG carriers, five of which are under construction, and a regasification terminal in Bahrain in which its interests range from 20% to 100%.

Seapeak said net voyage revenues for its LNG segment fell by $0.5m for the three months to the end of March, down at $138.9 from $138.4m in 2023 mainly due to the sale of the 89,880-cbm Seapeak Polar (built 1993) in June 2023.

This was partially offset by fewer off-hire days for unscheduled repairs and idle days for certain of its LNG carriers during the quarter and higher charter rates earned on some vessels.

Seapeak listed its natural gas liquids (NGL) fleet at 46 vessels, as of the end of March 2024, in which its interests ranged from 25% to 100%. The fleet includes 11 time-chartered in ships, six under construction and four on-order time-chartered vessels.

Net voyage revenues for the company’s NGL sector also fell during the first quarter, down $1.8m at $36.8m from $38.6m a year earlier.

The fall was largely due to vessel sales but partially offset by a scheduled dry-docking and higher charter rates on some vessels.