Canadian giant Teekay Corp has reported an improved second quarter performance in what was a busy period for the company.
Fresh FPSO contracts, a $28m gain from the sale of shares in Sevan Marine, growth of Teekay LNG fleet and $110m in fresh liquidity for Teekay Tankers were all picked out by chief executive Kenneth Hvid as helpful developments.
Teekay Corp booked an adjusted loss of $21.6m in the second quarter, which comes in at $0.21 per share.
Cash flow from vessel operations reached $16.64m, ahead of $13.22m in the previous quarter and a cash drain of almost $7m in the second quarter of 2017.
Hvid said the results improved on a year-on-year basis, due mainly to higher cash flows generated by directly-owned FPSO units that have upside exposure to oil prices and production.
Larger fleet helps Teekay LNG
Daughter company Teekay LNG saw an upturn in quarterly performance thanks to the delivery of 10 LNG and LPG ships in the past year and the launch of the Teekay LNG-Marubeni joint venture.
However, it did carry a writedown on four multi-gas carriers in the three months to the end of June.
Overall, separately listed Teekay LNG booked a profit of $2.7m, against a loss of $16.1m last time around.
Loans flowing
Teekay LNG has also secured a string of loans in the past few months.
The Teekay LNG-Marubeni venture bagged $105m in May for the Woodside Donaldson LNG carrier, while June saw a fresh $40m facility for the Polar Spirit and Arctic Spirit.
In July the MLP inked a $117m refinancing for the Madrid Spirit LNG carrier and a $35m facility for its final LPG newbuilding Weipon.
“Looking ahead, we expect to take delivery of seven LNG carrier newbuildings and the Bahrain LNG terminal project to commence over the next 18 months, which we anticipate will help drive further cash flow growth and the delivering of Teekay LNG's balance sheet,” Hvid said.
Offshore extensions
Teekay Offshore shouldered a $181.4m non-cash impairment on the way to a $168.5m quarterly loss. Adjusted for one-offs the loss was just $732,000.
“Teekay Offshore has secured new FPSO charter contract extensions on the Voyageur Spirit and Ostras, refinanced its 2019 bond maturities and ordered two additional LNG-fuelled shuttle tanker newbuildings, which are expected to further strengthen its position as the leading provider of contract of affreightment (CoA) shuttle tanker services in the North Sea,” Hvid said.
