Teekay Corp is sending one of its oldest FPSOs to the breakers.
The New York-listed, Vancouver-based company said the Petrojarl Banff (built 1998) had finished work in the Banff oil field in the North Sea and will be scrapped in the coming months.
"The FPSO unit is expected to leave the Banff field during the third quarter of 2020 and prepare for recycling by the end of the year with the remaining subsea remediation work expected to be carried out in the summer of 2021," Teekay Corp chief executive Kenneth Hvid said.
The Petrojarl Banff is one of three FPSOs owned by the Teekay group, with all three under control of Teekay Corp.
The ship had been in the employ of Canadian Natural, having had its charter extended once in 2018 and once last year.
Contract success
One of the other FPSOs, the Petrojarl Foinaven (built 1998) in March was fixed on a 10-year bareboat charter to BP.
That contract, Hvid said, helped Teekay Corp to consolidate its net debt by $267m in the quarter, alongside "strong cash flows [and] proceeds from asset sales".
Its last remaining FPSO, the Hummingbird (built 2007), is working Spirit Energy's Chestnut oil field in the North Sea.
In total, the company has reduced its debt by 20%, or $887m, so far in 2020.
For the second quarter, Teekay Corp joined Teekay LNG and Teekay Tankers in posting a profit after a first quarter loss.
For Teekay Corp, it was $27.1m in net income, reversing a $39.5m loss for the same period last year and a $49.8m loss in the first three months of 2020. The profit represented $0.21per share.
Teekay Corp reported $482m in revenue, up from $462m year-on-year and total adjusted Ebitda of $315m versus $196m for the second quarter last year.
In early trading on Friday, Teekay Corp shares were up nearly $0.10, or just over 4%, at $2.85.
