Teekay Corporation Slides to Loss

Bermuda-based Teekay Corporation reported USD 12.2 million net loss attributable to shareholders for the quarter ended September 30, driven largely by losses accumulated through one of the company’s publicly-listed subsidiaries, Teekay Offshore Partners L.P, and declining net income at Teekay LNG Partners.

Teekay Offshore Partners L.P. posted USD 51.3 million net loss in the third quarter of 2015, compared to USD 123.4 million net profit in the quarter ended June 30.

”The higher contributions from the acquisition of the Knarr FPSO in early-July 2015 and the commencement of operations of the Arendal Spirit UMS in early-June 2015, and a full quarter contribution from the start-up of Teekay Offshore’s shuttle tanker operations in the East Coast of Canada were offset by the scheduled expiration of certain shuttle tanker charter contracts, a temporary shut-down of the Piranema Spirit FPSO for unscheduled repairs completed during the quarter, a seasonal decrease in shuttle tanker utilization, and lower towage fleet utilization,” Teekay Offshore Partners said in the financial report.

Teekay Corporation’s other two publicly listed subsidiaries – Teekay Tankers and Teekay LNG Partners – ended the third quarter on a more positive note, posting USD 40.3 million and  USD 10.3 million quarterly net profit, respectively.

Teekay Tankers’ net profit in 3Q2015 was around USD 3 million lower compared to the quarter ended June 30, but it is a nearly sevenfold improvement compared to USD 5.9 million net profit reported in 3Q2014.

The company says that the year-on-year increase is ”primarily due to stronger spot tanker rates in the third quarter of 2015 compared to the same period in the prior year and an increase in fleet size due to the acquisition of 10 modern Suezmax tankers during the third quarter of 2015, four Long Range 2 (LR2) product tankers and one Aframax tanker in the first quarter of 2015 and the addition of eight in-chartered vessels that delivered to the Company over the past 12 months.”

Teekay LNG Partners’ USD 10.3 million net income for the quarter ended September 30 is over six times lower compared to USD 63.8 million net profit posted in 2Q2015, and over nine times lower compared to USD 96.8 million net profit recorded in 3Q2014.

The company attributes the decrease in net income to ”the Magellan Spirit LNG carrier disputed charter contract termination during the first quarter of 2015, the scheduled expiration of the charter contract for the Methane Spirit LNG carrier in mid-March 2015, and the sale of one conventional tanker in August 2014.”

The decreases were partially offset by ”higher LPG spot rates earned in 2015 and the addition of four LPG carrier newbuildings that delivered during 2014 and early 2015, net of the sale of four older LPG carriers during 2014 in the Partnership’s 50 percent-owned LPG joint venture, Exmar LPG BVBA, the termination of capital leases for, and the subsequent refinancing at a lower interest rate of, three LNG carriers owned by the Partnership’s RasGas II joint venture in December 2014, and the acquisition of one LPG carrier, the Norgas Napa, in November 2014.”

Overall, Teekay Corporation’s consolidated cash flow from vessel operations (CFVO) decreased to USD 341.3 million for the quarter ended September 30, 2015, compared to USD 352.2 million for the quarter ended June 30, 2015, primarily due to the scheduled maintenance of the Foinaven FPSO, a seasonal decrease in shuttle tanker utilization, lower towage fleet utilization, and lower average spot tanker rates.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Apr 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 1 2 3 4 5

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

CWC World Gas & Power Series – Brazil & the Americas Summit

CWC World Gas & Power Series: Brazil & the Americas Summit is the perfect meeting place to make contacts…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

Nor-Shipping 2019

Nor-Shipping’s conference and event programme is tailored to deliver the knowledge, value and networking to help you build your business.

read more >