Teekay Corp Remains in Red

  • Business & Finance

Bermuda-headquartered shipping company Teekay Corporation reported consolidated GAAP net loss attributable to shareholders of USD 45.3 million, and consolidated adjusted net loss of USD 35.7 million in the first quarter of 2017.

The net loss edged down when compared to the corresponding period when the corporation booked USD 48.7 million loss, but is considerably higher when compared to the previous quarter ended December 31, 2016 when Teekay cut its loss to USD 2.6 million.

During the quarter, Teekay’s generated GAAP consolidated income from vessel operations stood at USD 81.6 million and consolidated total cash flow from vessel operations came at USD 275 million, the company said.

“While our consolidated results declined from the fourth quarter of 2016, Teekay’s offshore and tanker business performed slightly better than our expectations in the first quarter of 2017, driven by higher cash flow generated by our shuttle tanker, FPSO and conventional tanker fleets, while our gas business performed as expected,” commented Kenneth Hvid, President and Chief Executive Officer of Teekay Corporation.

During the quarter, Teekay Parent finalized the previously-announced contract amendment to extend the firm period of the Hummingbird Spirit FPSO charter until September 2020 and secured a new one-year charter contract for the Polar Spirit LNG carrier with an undisclosed energy company, which commenced in April 2017.

Teekay Offshore secured two additional shuttle tanker contracts of affreightment in the North Sea, concluded a five-year FSO contract extension, and entered into a customer-funded front-end engineering and design (FEED) study for the Varg FPSO in the North Sea; and Teekay LNG acquired a 50 percent interest in a mid-size LPG carrier newbuilding through its joint venture with Exmar.

The lower results were ascribed primarily to lower revenues from Teekay Parent related to the lower charter rates under the new contract for the Hummingbird Spirit FPSO that took effect on July 1, 2016 and lower tariff revenue for the Foinaven FPSO.

In addition, the lower results were also influenced by Teekay LNG’s lower income and cash flows, mainly as a result of the sales of two conventional tankers in 2016 and lower income from Teekay LNG’s Exmar LPG joint venture; as well as lower income and cash flows in Teekay Offshore¬†and a reduction in income and cash flows in Teekay Tankers due to lower spot tanker rates.

These decreases were partially offset by higher income and cash flows from Teekay LNG as a result of the deliveries of three MEGI LNG carrier newbuildings in 2016 and 2017, the Creole Spirit, Oak Spirit and Torben Spirit, which commenced their respective charter contracts.

As at March 31, 2017, Teekay Corporation had total liquidity of approximately USD 890.3 million, consisting of USD 541.4 million of cash and cash equivalents and USD 348.9 million of undrawn revolving credit facilities, the company said.

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