Teekay LNG Partners has stuck with its higher distribution levels for the second quarter following a one-third bump in its payout to investors earlier this year.
The MPL will pay $0.19 per unit for the second quarter, in line with the “significant increased” number seen in the first quarter.
It follows a plan outlined by the shipowner in late 2018 after a number of key financial developments, fresh time charters and progress with its newbuilding orderbook.
Mark Kremin, chief executive of Teekay LNG, has explained the eleveted annual payout of $0.76 per unit was a balance between higher returns to investors and ongoing efforts to cut debt.
The company, which is in the midst of a $100m buyback, has more than 90% contract coverage for each year through until 2022.
Teekay LNG units closed at $15.55 each in New York yesterday, off a 52-week high of $17.49 and a low of $10.75.
The company, which has a market capitalisation of $1.22bn, boasts a fleet of 75 LNG and LPG carriers on the water and four newbuildings on order.
