10-01-2013, 09:12 PM
(This post was last modified: 10-02-2013, 06:52 AM by hendi_alex.)
First of all, I'm investing in LNG carriers because I think that this business is in its infancy. Several major production projects will be completed in 2015 and 2016, and that product will have to be moved and will likely overwhelm the LNG shipping capacity.
TGP is a master limited partnership. The payout ratio that you see is a GAAP calculation, which doesn't work for some business structures. MLP dividend coverage is usually measured against distributable cash flow which during the second quarter for TGP was $55.4M or $0.794 cents per share. The dividend paid was $0.675 per share which gives a pay out ratio of 85% or a coverage ratio (DCF/distributions) of 1.18.
The earnings call transcript at Seekingalpha is IMO a very worthwhile read.
http://seekingalpha.com/article/1623942-...urce=yahoo
TGP is a master limited partnership. The payout ratio that you see is a GAAP calculation, which doesn't work for some business structures. MLP dividend coverage is usually measured against distributable cash flow which during the second quarter for TGP was $55.4M or $0.794 cents per share. The dividend paid was $0.675 per share which gives a pay out ratio of 85% or a coverage ratio (DCF/distributions) of 1.18.
The earnings call transcript at Seekingalpha is IMO a very worthwhile read.
http://seekingalpha.com/article/1623942-...urce=yahoo
Alex