Teekay Offshore Sees Profit Drop

Pic: Teekay Offshore

By Aiswarya Lakshmi

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.

Feb 23, 2017

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