Higher Q4 Earnings for Teekay LNG

Bermuda-based Teekay LNG Partners saw its net income rise from USD 77.1 million to USD 91.4 million in the fourth quarter of 2016. 

“During the fourth quarter, the partnership continued to generate stable cash flows supported by a diversified portfolio of long-term contracts totaling approximately USD 12 billion in forward, contracted revenue and with a weighted average remaining contract length of 13 years,” Mark Kremin, President and CEO of Teekay Gas Group, stated. He also said that the company added about USD 80 million of liquidity.

Despite this year-end rise in income, Teekay’s full-year profit decreased from USD 217.5 million to 158 million compared to 2015.

Teekay LNG has a fleet of 84 liquefied natural gas carriers (59 owned vessels, 2 chartered-in vessels and 23 ordered newbuildings).

New cooperation between container carriers

Its been announced that Mediterranean Shipping Co. (MSC), Maersk and Hyundai Merchant Marine (HMM) will start working together within transpacific area. HMM will provide 7 vessels (approximately 6,800 TEUs per ship) which MSC and Maersk will rent the space on. New route will include Vietnam, Thailand, Taiwan, South China and South Korea from one side and LA and Oakland ports from the other side. Rotation is planned to be started on April, 2 at Laem Chabang port.

Solvang Shipping of Norway and Hyundai Mipo Dockyard of South Korea have signed a Letter of Intent for the construction of up to four ethylene carriers.

It includes firm orders for two ethylene carriers with a capacity of 21,000 cbm, plus an option for two more such vessels. The delivery  is scheduled for 2019.

According to Solvang Shipping, the deal is subject to satisfactory technical and contractual terms, with a deadline of March 2017. The newbuildings will be Tier III compliant, ensuring flexibility when it comes to current and future environmental regulations, the company stated.

Solvang Shipping owns 21 LPG carriers with a total size of 1.2 million cbm.

Stena Line, Swedish ferry company, plans to place 4 new RoRo passenger vessels (RoPax) on the Irish Sea routes to Belfast. New ships will be built by China’s AVIC shipyard. 

Since the routes to and from Belfast are strategically very important for the ferry company, during last years Stena Line made significant investments​ in ports and ships to develop their capacity. As per Stena Line CEO,  ​Niclas Mårtensson,  ​there is a stable raise in freight volumes. In 2016 the company reached a record handling more than 500 000 freight units through Belfast port.  

​The RoPax ships were ordered in April 2016 and will be delivered in 2019 and 2020. ​New vessels will be the larges ferries ever on the route between Great Britain and Belfast. 

New Ships for Maersk Tankers

Maersk Tankers has confirmed an order for the construction of ten LR2 product tanker vessels at China’s Dalian Shipyard. The new tankers will be delivered over a period of three years, starting in 2019. 

According to Maersk Group,“The newbuilding contract is part of a fleet renewal to sustain a competitive fleet and strong market position in the LR2 segment.” Maersk Tankers said that its year-on-year profit saw a decline from USD 160 million to USD 62 million and thus the deal has a “a unique contractual structure" which takes into account these weaker results.

The declining rates were partly offset by improved commercial performance, contract coverage and cost savings, the company stated in its annual financial report. The earnings decreased by 17%, however that was less than the overall market decline. A total of 11 mid-range (MR) product tankers are set to be delivered through the year 2018.