Teekay Offshore Partners back to profit

Shuttle tanker owner delivers positive result despite charter cancellation from Petrobras.

Teekay Offshore Partners has exceeded its own expectations in the first quarter as it bounced back to a positive result.

The master limited partnership (MLP) reported net income of $18.9m, overturning a $4.4m loss in the same stage of 2016.

Ingvild Saether, chief executive of Teekay Offshore, said: “The partnership’s first quarter of 2017 results were better than our expectations, driven mainly by higher cash flow generated by our shuttle tankers and FPSO fleets.”

But the company added its bottom line took a hit due to a charter cancellation from Petrobras.

The Brazilian oil major notified Teekay Offshore in late April that it will discontinue the charter of the Arendal Spirit.

Saether said: “We are disputing the termination and are reviewing our legal options, while at the same time actively marketing the unit for alternative employment.”

Besides the negative development with Petrobras, Teekay Offshore said it secured a five-year extension - plus options - for its floating storage and offtake (FSO) unit Falcon Spirit.

The FSO has been operating on the Al Rayyan field off Qatar since 2009.

This deal added to Teekay Offshore’s string of long-term charters over the past three months.

Saether said: “Since reporting earnings in February 2017, our business development teams have continued to successfully secure new charter contracts and extensions.”