FPSO troubles add to losses at Teekay

The performance brings Teekay's first half loss to $45m compared to $37.8m in the first six months of 2012. Net revenues at the group fell from $447.6m in Q2 2012 to $404.6m this year.

Teekay's 29.9% interest in Teekay Offshore contributed $16.2m to the parent company for the quarter, Teekay LNG and Teekay Tankers added $23m and $0.6m respectively.

"The second quarter of 2013 was a challenging operational quarter for our FPSO segment due to near-term production issues which negatively impacted revenue contribution from the Voyageur Spirit and Foinaven FPSO units," said Peter Evensen, Teekay's president and ceo. "On both units, production was reduced by issues related to the gas compressors. Resolving these issues has been a top priority and our FPSO operations teams have been working diligently to get these units back into full production as soon as possible."

Teekay completed the sale of Voyager Spirit for $540m earlier this year, as well as its 50% interest in Cidade de Itajai FPSO for $204m, both were sold to daughter company Teekay Offshore.

"The $540m sales price paid by Teekay Offshore [for Voyager Spirit] was approximately $75m higher than Teekay Parent's cost to acquire and upgrade this unit. Since April 13, 2013, the Voyageur Spirit FPSO has been operating at partial production levels and is expected to reach full capacity levels by the end of August 2013, following the completion of repairs and testing," Evensen continued.

"We continue to make progress on our strategy of selling assets into our publicly-traded daughter entities and supporting their growth through direct acquisitions and newbuilding deliveries at the daughter company level.

"Teekay Offshore took delivery of its first two shuttle tanker newbuildings which will operate under ten-year charters for BG Teekay in Brazil, and Teekay Tankers took delivery of a 50%-owned VLCC conventional tanker in June which commenced a five-year timecharter to a major Chinese charterer...Teekay LNG acquired additional LNG and LPG newbuildings, which will provide further near- and long-term growth.

"So far in 2013, we have seen a strong level of new project tendering activity, specifically in our gas and offshore businesses. As Teekay Offshore and Teekay LNG grow, the cash flows from our general partnership interests in these entities will become an increasingly important component of Teekay Parent's overall cash flows," he closed.

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