Teekay Surges to Profit
NYSE-listed Teekay Corporation reported USD 215.3 million net income for the quarter ended June 30, 2015, vastly improving its results compared to USD 15.5 million net loss the Bermuda-headquartered company recorded in 2QFY2014.
These results include the company’s three publicly-listed subsidiaries: Teekay Offshore Partners, Teekay LNG Partners, and Teekay Tankers.
The company’s revenue increased to USD 592.8 million for the quarter ended June 30, 2015, compared to USD 452.4 million for the quarter ended June 30, 2014.
Teekay Corporation’s President and Chief Executive Officer Peter Evensen said that the company’s three subsidiaries ”performed well during the second quarter, with Teekay Offshore and Teekay LNG both reporting strong distributable cash flow and distribution coverage ratios and Teekay Tankers achieving the highest tanker rates in seven years.”
Teekay Tanker’s quarterly net profit stood at USD 44.2 million, compared to USD 4.6 million the company reported in 2QFY2014. Teekay LNG’s quarterly net profit increased from 47.9 million reported in the second quarter of 2014, to USD 63.7 million in the quarter ended June 30, 2015.
Teekay Offshore ended 2QFY2015 with USD 107.9 net income, as compared to USD 3.8 million net loss recorded in the second quarter of 2014.
Teekay Tankers’ free cash flow increased during the quarter ended June 30, 2015, compared to the quarter ended March 31, 2015, primarily due to stronger average spot tanker rates earned on its Aframax tankers, LR2 product tankers and MR product tankers, a full quarter contribution from the five tankers acquired in the first quarter of 2015, and the addition of two chartered-in vessels which delivered in the first quarter of 2015, partially offset by slightly lower average spot tankers rates on Teekay Tankers’ Suezmax tanker fleet.
Teekay LNG’s distributable cash flow during the quarter ended June 30, 2015 was relatively consistent with the quarter ended March 31, 2015, with higher earnings from its liquefied petroleum gas (LPG) joint venture and Angola LNG joint venture, offset by the termination of the charter contract for its 52 percent-owned LNG carrier, the Magallen Spirit in March 2015 (which termination Teekay LNG is currently disputing) and the scheduled expiration of the charter contract for another 52 percent-owned LNG carrier, the Methane Spirit.
Teekay Offshore reported USD 58.3 million generated distributable cash flow in the second quarter of 2015, an increase of 45 percent from the second quarter of 2014.