SEAL-PA · Seapeak LLC

Seapeak LLC reported a strong first quarter in 2026, with net income surging to $40.5 million from $7.9 million in the same period last year. The improvement was driven by a $24.2 million swing in realized and unrealized gains on non-designated derivative instruments, which moved from a $17.0 million loss to a $7.1 million gain, reflecting changes in SOFR interest rate curves. Equity income rose 61% to $28.5 million, primarily due to higher contributions from the LNG segment's joint ventures, including a $11.3 million reduction in credit loss provisions compared to the prior year. Voyage revenues declined 8% to $147.4 million, as lower charter rates and idle days on certain LNG carriers following contract completions, along with the sales of two LNG carriers, more than offset higher management fees and cost recoveries. Vessel operating expenses remained relatively flat, while depreciation increased 25% due to a reduction in useful lives of three steam turbine LNG carriers. Interest expense fell 13.5% to $36.7 million, benefiting from lower debt balances and floating rates. The company generated $65.1 million in operating cash flow, but used $48.3 million for investing activities, primarily for newbuilding installments, and $62.6 million for financing activities, including debt repayments and distributions. As of March 31, 2026, liquidity stood at $191.3 million, down from $337.9 million at year-end 2025, due to increased revolver draws and lower cash. The company remains in compliance with all debt covenants and expects sufficient liquidity for the next 12 months.