Teekay Offshore expects to receive $28m in compensation for a delay in a series of offshore vessels under construction at a Japanese yard, chief executive Peter Evensen said.
The Teekay spinoff says Niigata Shipbuilding & Repair has already paid it $7m for the late delivery of the 24,500-bhp anchor handling tug ALP Striker (built 2016).
"The partnership also expects to receive additional cash compensation for the remaining three towing and offshore installation newbuildings when they deliver in 2017," Teekay Offshore said today.
Evensen (pictured) said the additional rebate is expected to be $21m.
Teekay Offshore ordered the four offshore vessels, which use Ulstein's SX-157 design, when it acquired Netherlands-based ALP Maritime in 2014.
The order cost a total of $216m, minus any reimbursements from Niigata.
By the end of the second quarter, Teekay Offshore had already made $130m in instalments and $53.1m was to be paid by the end of 2016. The remaining $33.7m was scheduled to be paid in 2017, according to a securities filing.
Evensen said the remaining three vessels will be delivered in the first half of 2017.
"We're confident in that revised date," he said Thursday.
Earlier today, Teekay Offshore reported a deeper-than-expected drop in third-quarter profit. The tanker, offshore vessel and FPSO owner said reported adjusted earnings of $10m, down from $23.6m a year earlier.
The company's distributed cash flow of $0.23 was below the analyst consensus estimate of $0.45, according to Wells Fargo.
