Teekay Offshore Partners reported a $102.6m loss for the quarter due to the write-down of two cancelled offshore newbuildings and losses in interest rate swaps and foreign exchange forward contracts.
The Peter Evensen-led offshore partnership said net income excluding the one-time items would have been $23.6m for the quarter. That would have resulted in a per unit profit of $0.22, which was slightly below the average analyst estimate of $0.24 per unit.
Teekay cancelled $400m in contracts for the construction of two UMS vessels, resulting in a $43.7m write-down and another $21.2m loss provision. The vessels were cancelled as a provision for the recent recapitalisation of the Teekay companies, which included $400m in new or extended bank debt and $200m in new equity.
Teekay also took a $44.9m loss related to various interest rate and foreign exchange derivative contracts. Some of the derivatives were related to the dropdown three years ago of the Cidade de Itajai FPSO from parent Teekay Corp and the Libra FPSO venture.
The company’s UMS unit also suffered a loss during the quarter due to one vessel being off-hire during the quarter due to damage of a gangway.
Group wide, revenue for Teekay was down 8% to $284.4m for the quarter.
