Teekay Offshore Sees Profit Drop
Teekay Offshore Partners has reported GAAP net income attributable to the partners and preferred unitholders of $92.0 million and adjusted net income attributable to the partners and preferred unitholders of $8.5 million in the fourth quarter of 2016.
Teekay Offshore has generated GAAP income from vessel operations of $56.5 million and $230.9 million, respectively, and total cash flow from vessel operations(1) of $134.8 million and $584.3 million, respectively, in the fourth quarter and fiscal year 2016.
“The Partnership’s results for the fourth quarter of 2016 were impacted by an operational incident relating to the Arendal Spirit UMS, which, together with a gangway incident in the spring of 2016, triggered an operational review by the charterer,” commented Ingvild Sæther, President and CEO of Teekay Offshore Group Ltd.
Sæther added: “As a result of this review, charter hire revenue for this unit has been suspended since November 2016. We have been in dialogue with the charterer, Petrobras, to address their concerns in order to bring the unit back into operation as soon as possible. On the efficiency front, we are pleased to see that our various cost saving initiatives implemented during the past year are resulting in lower run-rate operating and general and administrative expenses.”
“Looking ahead, we continue to execute on our existing growth pipeline which will provide significant cash flow growth in the future,” commented Ms. Sæther.
