Profit dips as Sevan Marine expands its reach

The results come on a $2.8m rise in revenues to $27.4m, with a $500,000 rise in revenues in its floating production segment to $15.4m and a 23% rise in its topside and process division to $12m.

Teekay owns 40.09% of Sevan Marine, with a further 3.42% owned through a controlled entity.

For the first half, profit was down from $26m in 2013 to $3.5m and revenues were up from $45.2m to $52m in 2014. The 2013 first half profit includes a $21.5m gain on the sale of FPSO Voyageur Spirit to a Teekay affiliate in May 2013.

The sale of the FPSO was the final step in Sevan's restructuring, taking it from an asset-based owner and operator to the engineering, technology and project management firm it is today. Teekay owns 40.09% of Sevan Marine, with a further 3.42% owned through a controlled entity.

In April, Teekay signed a memorandum of understanding with Xcite Energy for a bridge-linked floating storage and offloading facility (FSO), for which Sevan Marine will operate as a sub-contractor to Teekay.

Also in April, Sevan sold 49% of its topside and process division Kanfa to Technip Norge, a deal which is expected to expand the company's geographic reach and grant it access to a larger market.

Outside of the reporting period Teekay acquired Logitel Offshore, which owns two Sevan-designed hulls under construction, and six options. One of those options was exercised earlier this month and is due for delivery in the third quarter 2016.

The company sees a number of opportunities across various sectors of the offshore market for its designs including arctic drilling units, FLNGs, FPSOs and FSOs, with expectations of paid studies in those areas in the near future.

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