Teekay Corp., owner of vessels that haul oil and liquefied natural gas, reported fourth-quarter profit more than doubled because of gains from interest-rate swaps.
Net income increased to $85.9 million, or $1.16 a share, from $29.8 million, or 40 cents, a year earlier, the Hamilton, Bermuda-based company said in a statement. Revenue slid 4.9 percent to $497.3 million.
Excluding interest-rate swaps and other items, Teekay reported an adjusted loss of $37.8 million, or 51 cents, versus a loss of $33.3 million, or 45 cents a share, a year earlier. On that basis, the loss estimated by 10 analysts surveyed by Bloomberg was 40 cents a share.
Teekay diversified its revenue sources by entering into liquefied-natural-gas transportation and the offshore shuttle- tanker market. Revenue from both sectors increased during the quarter.
“We expect the incremental capex to keep going towards the offshore business segment, where they are probably seeing the best return,” said Michael Webber, senior analyst at Wells Fargo Securities LLC in New York, who has an “outperform” rating on the stock. “They have a more diversified platform.”
Teekay declined $1.16, or 3.3 percent, to $34.03 at 12:45 p.m. in New York Stock Exchange composite trading. The shares are up 2.9 percent this year.
The average time-charter rate in the first quarter for Teekay’s Suezmax tankers will be $27,047 a day, and the average rate for Aframax will be $23,084, Teekay said in a conference call.
Shipping revenue from the offshore shuttle-tanker segment rose to $203.1 million from $190.9 million. Revenue from LNG tankers rose to $96.8 million from $95.3 million.
Teekay’s Aframax vessels earned $12,659 a day in spot rates during the quarter, down from $13,963 a year earlier. Suezmaxes earned an average rate of $15,564 a day, down from $21,109.
Teekay operates 137 vessels, 36 of them Aframax, according to the company’s website. Aframaxes can move about 600,000 barrels of oil. Suezmaxes can carry about 1 million barrels.
Aframax spot rates averaged $11,725 a day in the fourth quarter, up 10 percent from $10,663 a year ago, according to the Baltic Exchange.
To contact the reporter on this story: Moming Zhou in New York at email@example.com
To contact the editor responsible for this story: Bill Banker at firstname.lastname@example.org