Teekay Offshore Partners has plunged further into the red in the third quarter after booking vessel write-downs of $316.72m.
The company, which operates Teekay's shuttle tankers and FPSOs, plus some conventional tankers, said the net loss to 30 September was $320.76m, from $16.46m a year ago.
Revenue was $273.6m, compared to $286.2m in 2016.
The write-downs included impairments due to the increased cost and time of an upgrade to the Petrojarl I FPSO, the impending charter expiration of the Rio das Ostras FPSO early in 2018 and a change in the operational plans of three shuttle tankers.
But it added that this month it has signed a new deal to keep the FPSO Voyageur Spirit working for Premier Oil in the North Sea until April 2019.
CEO Ingvild Saether said that looking ahead to the fourth quarter of 2017 and into 2018, its growth projects are now starting to deliver and generate cash flows, which we expect will provide significant additional future cash flows."
She added: “Over the course of 2017, we have started to see green shoots of a potential recovery in the offshore market.
"Most notably, these include stronger crude oil prices as Brent crude oil is now above $60 per barrel, lower break-even price levels for offshore projects, interest from international oil companies for the numerous offshore blocks recently awarded in Brazil, tenders for new shuttle tanker requirements, and, after almost two years with very few transactions, increased activity in the FPSO market, including several charter contract awards.
"With a stronger balance sheet, access to capital, market-leading positions and strong operational platforms, we believe we are well-positioned to benefit from future opportunities as the global energy market recovers.”
