Teekay loses $42m in second quarter

Net revenues for the second quarter 2014 rose to $418.8m from $404.6m in Q2 last year.

The result brings the company's first half loss to $43.5m and first half revenues to $890.3m, up $61m on the previous year's H1 result.

Teekay Offshore Partners, 29.2%-owned by Teekay Corporation and involved in the shuttle tanker, FPSO and other offshore arenas, lost $5.4m in the quarter, despiting a rise in revenues to to $215.1m as the company's fleet continued to grow. Teekay corporation's largest FPSO, Petrojarl Knarr, will be eligible for drop down to Teekay Offshore when it commences its charter in the third quarter.

Teekay LNG Partners reported a $43.6m profit, enjoying growth in both fleet and revenue. In June, Teekay LNG signed a 50/50 venture with China LNG Shipping to supply six ice class LNG carriers to the Yamal project in Northern Russia. The ships will be built at Daewoo Shipbuilding and Marine Engineering for delivery between 2018 and 2020 at a total cost of $2.1bn.

Revenues at Teekay Tankers fell slightly year on year, but the companys' 28-strong owned fleet created a $4.5m profit, boosted by a $10m gain on the sale of a pair of VLCCs.

The Teekay Parent company's loss of $42.9m made up the most of the group's loss. The parent company directly owns five FPSOs and a VLCC, and gathers dividends from its holdings in the daughter companies.

Peter Evensen, Teekay Corporation's president and ceo commented: "In late-June, we took delivery of the Petrojarl Knarr FPSO from the shipyard in South Korea and the unit is currently in transit to the North Sea for field installation and offshore testing."

We are also pleased to report that in July, the Petrojarl Banff FPSO recommenced operations under its charter contract and the unit is generating cash flow after approximately 30 months of off-hire for storm-related repairs and upgrades. Finally, repairs to the gas compressors onboard the Petrojarl Foinaven FPSO were completed in July and the unit is now gradually increasing its oil production throughput."

"We anticipate that expected continued growth of our two MLP daughter entities will benefit Teekay Parent in the form of increased general and limited partner cash flows in the coming years and, in addition, the dropdown sale of the remaining FPSOs owned by Teekay Parent will significantly de-lever Teekay Parent's balance sheet."

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