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Teekay Corp sinks to full year loss of $123m

Teekay Corp sinks to full year loss of $123m

Teekay Corp has registered a full year loss in 2016 as its income from vessel operations was nearly halved from that of 2015 on the back of overall lower rates in the tanker shipping and offshore segments.

Net loss for 2016 came up to $123.18m as against the profit of $82.15m, while full year revenue dipped 4.9% year-on-year to $2.33bn. Income from vessel operations plunged to $384.29m in 2016 compared to $625.13m in 2015. Teekay Corp’s revenue is generated from its three publicly-listed subsidiaries – Teekay Offshore, Teekay LNG and Teekay Tankers.

“On a consolidated basis, Teekay's gas and tanker businesses performed in-line with expectations in the fourth quarter of 2016. However, the results from our offshore business were affected by certain events, which included an operational incident in November 2016 relating to the Arendal Spirit UMS and related suspension of the charter hire revenue since that time,” commented Kenneth Hvid, president and ceo of Teekay Corp.

Teekay Offshore has since completed the investigation to identify the cause of the November 2016 incident and has implemented corrective measures. The business unit’s results decreased due primarily to the redeliveries of FPSO and FSO, the repositioning of a shuttle tanker, higher time-charter hire expenses, and overall lower charter rates and utilisation.

Teekay LNG also saw earnings trimmed due mainly to lower revenues from two co-owned vessels, charter rate deferrals for six LPG carriers, and overall lesser income as a result of lower spot rates in 2016.

The tanker shipping business under Teekay Tankers was hit by lower average spot rates in the fourth quarter of 2016 compared to the year-ago period.

Hvid said the group looks forward to executing growth projects at Teekay LNG and Teekay Offshore.

Teekay LNG has completed approximately $1.2bn of long-term financings for its growth projects, with the remainder of the financings on track to be completed in the second half of 2017, Hvid shared.

“Teekay Offshore is in the final stages of securing an additional shuttle tanker contract of affreightment in the North Sea; and Teekay Tankers secured three, fixed-rate time charter-out contracts at attractive rates,” he said.

Since October 2016, Teekay Tankers locked in contracts for two suezmax tankers and one aframax tanker, with the contracts commanding an average rate of approximately $20,800 per day and firm periods of 12 months each. The contracts commenced in December 2016 and February 2017.

Teekay ceo Kenneth Hvid will be speaking at Sea Asia 2017 in Singapore 25 - 27 April

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