Teekay Offshore Partners has posted lower profit in the fourth quarter despite a revenue rise.
Net earnings were $16.03m, against $96.26m in 2016, as the bottom line was hit by pre-operational costs related to the transit of the shuttle tanker newbuildings Beothuk Spirit and Norse Spirit to the east coast of Canada.
Operating expenses and interest costs rose and there was a fall in unrealised gains on derivative instruments.
Revenue was higher at $295.7m against $274.9m in 2016.
The company was boosted by the operations of the Randgrid FSO and Pioneiro de Libra FPSO in the quarter, partially offset by non-recurring repair and maintenance expenses relating to two of the partnership’s redelivered shuttle tankers.
Cash flow higher
CEO Ingvild Saether said higher cash flow was generated from vessel operations driven mainly by the delivery and contract start-up of new projects.
“Looking ahead, we expect our cash flows to continue to grow as we pivot from project execution to harvesting cash flows from our projects, which will also further strengthen our balance sheet as we naturally de-lever over time," she added.
New FPSO and shuttle tanker projects are expected to generate $200m of annual cash flow from vessel operations.
This month, the ALP Maritime towage subsidiary was awarded a contract to provide five vessels to perform mobilisation and field installation services in spring 2018.
The contract is expected to require approximately 330 vessel-equivalent days.
