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Teekay's losses rise to $84.6m

Teekay's losses rise to $84.6m
Teekay Corporation has announced losses of $84.6m in the last quarter, up from a $10.4m loss in the same three months of 2012.

Consolidated revenues across Teekay Offshore Partners, Teekay LNG Partners, Teekay Tankers and Teekay Parent totalled $426.7m, down from $439.9m in the same period last year.

For Teekay LNG, cashflow from operating vessels increased $13.5m to $125.2m, owing largely to the company’s acquisition of a 50% stake in the Exmar LPG joint venture, an extra LNG carrier and revenues from dry dock and operating expense recovery. Just outside of the quarter, Teekay LNG completed an offering of 3.5m units, raising $145m in proceeds.

Teekay Tankers saw cashflow from vessel operations fall $2.3m to $14m in the third quarter, owing to reduced rates and reduced interest income from a pair of mortgage loans. The company announced that last month it exercised options with STX Offshore for four 113,000 dwt LR2 eco-product tankers, adding to the four ordered in April. Payments on all eight of the vessels hinge on Teekay Tankers receiving refund guarantees from the yard for the vessel payments; currently no payments have been made and the company retains the right to cancel the newbuildings up until guarantees are received.

Teekay Offshore’s cashflow dropped from $95.5m in Q3 last year to $92.3m in 2013, despite the acquisition from Teekay Corporation of the Voyageur Spirit FPSO and 50% stake in the Cidade de Itajai FPSO earlier this year as well as the commencement of charters two newbuilding shuttle tankers with BG Group.

"We have made significant progress towards resolving the production issues on the Voyageur Spirit and Foinaven FPSO units since releasing last quarter's earnings in August 2013," commented Peter Evensen , Teekay Corporation's president and ceo. "The Voyageur Spirit FPSO achieved full production capacity and has been on full rate since August 27th, and is now awaiting formal certification of final acceptance by the charterer. The Foinaven FPSO, which was shut down in the third quarter of 2013 for repairs to its compressors, is currently producing approximately 35,000 barrels of oil per day and is expected to reach full production capacity during the latter part of the fourth quarter of 2013.”

Evensen added, "Looking ahead, we expect the strong fundamentals underlying our offshore and gas businesses will continue to generate new growth opportunities. Over the past 12 months, there has been a notable step-up in the amount of tendering activity for new projects which, in addition to the existing visible growth in our offshore and gas businesses, we believe are positive towards growing our free cash flows."