Teekay Offshore has fallen to a fourth quarter loss of $286m as write-downs of the New York-listed company's fleet clobbered the bottom line.
The result, which compares to in a profit of $68m in the same period of 2018, helped deepen the outfit's annual loss to nearly $351m, down from a loss of $124m a year earlier.
The red numbers come in the final year before the rebranding of the owner of shuttle tankers, floating oil and gas production vessels and offshore support vessels to Altera Infrastructure a takeover Brookfield Business Partners.
The fourth quarter loss was primarily a result of a $342.4m write-down on the value of two vessels: a floating, production and storage (FPSO) and the Arendal Spirit, a unit for maintenance and safety (UMS).
Teekay Offshore's revenue slumped to $312.1m, down $133m. However, the plunge was partially offset by a $61m increase in unrealised fair value gains from interest rate swap derivatives.
This reflected increased interest rate levels in the fourth quarter.
There was also a $21m increase in equity income, a $10m rise in foreign currency exchange gains and a $6m decrease in depreciation and amortisation costs after it sold two shuttle tankers for scrap.
Interest expenses dropped $5m year-on-year.
The company logged a $12m decrease in revenue due to fewer vessels in its contract-of-affreightment shuttle tanker fleet, as well as the redelivery of an older vessel to its owner in August.
Rebranding due
Last month, Brookfield Business Partners completed its acquisition of the former Teekay group company.
The company landed in hot water last month with Norway's economic police Okokrim over the scrapping of its 124,000-dwt shuttle tanker Navion Britannia (built 1998) at RL Kalthia Shipbreaking in Alang in 2018.
One of its subsidiaries was raided in Stavanger over a suspected violation of environmental regulations.
The Norwegian Environment Agency has notified the subsidiary that it is suspected of “illegal export of waste in the form of the ship Navion Britannia".
Teekay Offshore has denied any wrongdoing.
Eric Martin contributed to this article
