Seapeak LLC Form 20-F Summary: Fiscal Year Ended December 31, 2025
Business Context and Reporting Period
Company: Seapeak LLC (formerly Teekay LNG Partners L.P.)
Jurisdiction: Republic of the Marshall Islands
Reporting Period: Fiscal Year Ended December 31, 2025
Business Overview: Seapeak is an international provider of marine transportation services focusing on Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGL). The company operates a fleet of vessels under medium to long-term, fixed-rate charters. As of December 31, 2025, the fleet consisted of 44 consolidated LNG carriers (plus 24 equity-accounted) and 28 consolidated NGL carriers (plus 18 equity-accounted). The company also holds a 30% interest in an LNG receiving and regasification terminal in Bahrain.
Key Financial Metrics
| Metric (in millions USD) | 2025 | 2024 |
|---|---|---|
| Voyage Revenues | $636.96 | $710.74 |
| Net Income (Loss) | $25.99 | ($95.82) |
| EBITDA (Non-GAAP) | $325.85 | $208.67 |
| Net Voyage Revenues (Non-GAAP) | $624.88 | $699.15 |
| Total Assets | $5,137.63 | $5,378.72 |
| Total Debt | $2,694.58 | $2,787.09 |
| Cash and Cash Equivalents | $122.91 | $153.73 |
| Operating Cash Flow | $272.86 | $395.29 |
Material Changes vs. Prior Period
- Profitability Turnaround: The company returned to profitability with a net income of $26.0 million in 2025, compared to a net loss of $95.8 million in 2024. This improvement was primarily driven by a significant reduction in vessel write-downs ($71.0 million in 2025 vs. $387.1 million in 2024).
- Revenue Decline: Voyage revenues decreased by 10.4% to $637.0 million. The LNG segment saw a 7.8% decline due to the lay-up of older steam turbine vessels and lower short-term charter rates. The NGL segment revenues dropped 20.6% following the redelivery of six chartered-in vessels in late 2024.
- Asset Impairments: While significantly lower than 2024, the company recognized $71.0 million in write-downs and losses on sales of vessels in 2025. This included a $60.1 million impairment on three RasGas II Joint Venture steam turbine vessels and a $7.1 million write-down on two other steam vessels held for sale.
- Restructuring Costs: The company incurred $21.9 million in restructuring charges in 2025, primarily related to severance costs for Spanish seafarers associated with the restructuring of its steam turbine fleet.
- Debt Reduction: Total debt decreased by approximately $92.5 million to $2.69 billion, aided by scheduled repayments and lower utilization of the revolving credit facility.
Guidance, Outlook, and Risks
Management Commentary & Outlook:
- Fleet Strategy: Management is actively managing the transition of older steam turbine vessels, with several sold or held for sale. The company is pursuing newbuilding orders, including seven LNG carriers scheduled for delivery in 2027-2028 and 14 NGL carriers (via joint venture) for delivery in 2026-2027.
- Market Conditions: LNG spot rates softened in 2025 due to high inventory levels and mild winters. The company anticipates potential headwinds in 2026 as several long-term charters expire, potentially leading to periods of idle vessels or rechartering at lower rates.
- Liquidity: Total liquidity (cash plus undrawn credit facility) stood at $337.9 million. Management expects this, combined with operating cash flows and refinancing proceeds, to be sufficient to meet obligations through 2026.
- Geopolitical Instability: Ongoing conflicts in the Middle East (including attacks on commercial vessels) and the Russia-Ukraine war pose risks to trade routes, insurance costs, and charterer performance. New EU and UK sanctions on Russian LNG exports (effective 2027) may require operational restructuring.
- Charter Expirations: Thirteen LNG carriers have charters expiring between 2026 and 2027. Failure to recharter these vessels at attractive rates could materially impact future revenues.
- Regulatory Compliance: Increasing environmental regulations (EU ETS, Fuel EU Maritime) are increasing compliance costs and may impact the value of older, less efficient vessels.
- Joint Venture Exposure: The company relies on joint ventures for a significant portion of its fleet. Risks include the inability of partners to meet obligations or the impact of sanctions on partners (e.g., Yamal LNG Project).
Investor Verification Checklist
- Steam Turbine Fleet Disposition: Verify the final sale prices and timing for the remaining steam turbine vessels (Seapeak Hispania/Jupiter, Seapeak Mars) to confirm the accuracy of the $7.1 million write-down and subsequent proceeds.
- 2026 Charter Renewals: Monitor the rechartering status of the 13 LNG carriers with charters expiring in 2026-2027, as this is a critical near-term revenue driver.
- Sanctions Impact: Assess the specific operational and financial impact of the EU and UK bans on Russian LNG services scheduled for 2027 on the Yamal LNG Joint Venture and related assets.
- Debt Covenants: Review compliance with financial covenants, particularly vessel-value-to-loan ratios, given the volatility in second-hand vessel prices.
- Yemen LNG Receivables: Evaluate the recoverability of deferred hire amounts from Yemen LNG Company Limited (YLNG) regarding the Seapeak Marib and Seapeak Arwa vessels, which remain suspended.