Teekay Corp has reported a lower than expected loss in what was the parent company’s final quarter as a direct owner of conventional tankers.
Seasonally weak markets and the redelivery of an FPSO this summer contributed to an adjusted loss of $0.23 per share in the three months to the end of September.
The figure was better than the $0.31 per share loss projected by the Thomson Reuters consensus.
Outgoing chief executive Peter Evensen says seasonality, lower costs and higher income from the FPSO business will bring a stronger fourth quarter.
As TradeWinds was first to report, Teekay sold the 314,000-dwt Shoshone Spirit (built 2011) in October, marking the company’s departure from conventional tanker ownership.
Teekay said the deal reduced its financial leverage by $63m in the fourth quarter.
Evensen, who is handing over the leadership of the group to Kenneth Hvid, pointed to successes in the third quarter – including Teekay Offshore netting its largest shuttle tanker contract in five years, Teeaky LNG fixing its final two open newbuildings and new lightering contracts for Teeaky Tankers.
“Including these contracts, Teekay's consolidated portfolio of forward fee-based revenues totals over $20bn,” Evensen said.
"The execution of our existing growth projects at Teekay Offshore and Teekay LNG continues to be a major focus," added Evensen.
He says the upgrade to the Petrojarl I FPSO unit is delayed and subject to additional costs amid discussions with the charterer, shipyard and banks.
“Once Teekay Offshore's and Teekay LNG's projects are delivered, these growth projects are expected to add significantly to our annual cash flow from vessel operations,” he said.
