Teekay Corp says improved tanker rates and LNG earnings have helped bring it back into the black in the fourth quarter, after recording losses in the previous three quarters.

The group, which includes tanker, LNG and offshore businesses, reported a consolidated net income of $31m in the fourth quarter of 2019, compared with a $24m loss in the previous quarter.

The Vancouver-based company attributed the turnaround to improved tanker rates and LNG earnings.

President and chief executive Kenneth Hvid, said: “The increase can be attributed to higher earnings from Teekay Tankers as a result of significantly stronger spot tanker rates during the quarter; from Teekay LNG as a result of the delivery and contract commencement of various growth projects, and from our three directly-owned FPSO [floating production, storage and offloading] units, combined with lower general and administrative expenses across the group.”

Revenues grew to $562m in the fourth quarter, compared with $420m in the previous quarter.

Full-year results

Teekay remained in the red for the full year 2019, although its losses reduced.

It reported a consolidated net loss of $19.2m for the year, compared with a net loss of $52.3m in the 2018.

However, Hvid is optimistic about this year, despite fears the coronavirus will affect world trade.

He said some 94% of Teekay’s LNG fleet is working on fixed contracts in 2020, which should insulate earnings from spot market developments.

He added that supply and demand fundamentals in the tanker market are “positive” and he predicts further improvements in earnings.

“Looking ahead to 2020, we expect to continue to build balance-sheet strength across the group and, despite the recent market volatility and the uncertainty on the impacts of the coronavirus, we expect our cash flows and earnings to be stronger in 2020 compared with 2019,” Hvid said.