Teekay Corp sees deeper red than expected

Tanker owner trims net loss in the first quarter but the result is still worse than analysts’ consensus.

Teekay Corp has kicked-off 2017 with a bigger than expected loss as its revenue declined by 15%.

The New York-listed company saw red ink of $45.3m from January to March, compared to $48.8m a year ago.

Its adjusted net loss was $35.7m, against $6.17m in the corresponding quarter of 2016.

Adjusted loss per share of $0.41 was higher than the analysts’ consensus of $0.16.

Kenneth Hvid, president and chief executive of Teekay Corp, said: “While our consolidated results declined from the fourth quarter of 2016, Teekay’s offshore and tanker business performed slightly better than our expectations in the first quarter of 2017, driven by higher cash flow generated by our shuttle tanker, FPSO and conventional tanker fleets, while our gas business performed as expected.”

Quarterly revenue for the parent company fell from $641.1m to $543.5m largely due to lower charter rates and cash flows.

Teekay’s negative result was offset by a more solid performance from its LNG and offshore companies.

Hvid noted Teekay Corp’s primary focus is the project execution at Teekay LNG and Teekay Offshore.

He added the company has also secured multiple contracts since February.

As TradeWinds reported earlier today, Teekay LNG Partners made an opportunistic investment in an LPG newbuilding through its joint venture with Exmar.