Teekay Corp has closed on a deal to sell its last floating production, storage and offloading unit (FPSO), exiting the segment.
The New York-listed company said in its earnings statement that it had completed the sale of the 27,600-gt Sevan Hummingbird (built 2007) on 1 July.
The company previously only identified the buyer as a third party.
“The proceeds from the sale of the Sevan Hummingbird FPSO combined with a contractual lump sum from our customer on the Petrojarl Foinaven FPSO, which is expected to be received in the third quarter of 2022, are anticipated to largely cover the remaining decommissioning costs relating to these two units and we expect to substantially complete the wind-down of our FPSO segment by the end of the year,” said chief executive Kenneth Hvid.
The company posted a $5.3m profit for the second quarter, up from a $1.8m loss for the same period last year. It recorded $281m in revenue, up from $153m in the same time frame.
The company's primary activity is holding Teekay Tankers, of which it owns more than 31%.
The tanker owner on Thursday reported a $28.5m quarterly profit up from $129.1m for the second quarter of 2021.
In the earnings release, Hvid said the company was prepared to deploy its $300m in cash on further investments.
“We believe our strong balance sheet, which provides financial flexibility and optionality, is particularly valuable during times of extreme volatility and global economic uncertainty, and we will continue pursuing future investments patiently and selectively,” he said.
The company's shares closed up a penny to $3.22 on Thursday.