Teekay Offshore Partners Reports Q2 Results
Bermuda-based Teekay Offshore GP LLC, the general partner of Teekay Offshore Partners L.P. reported the Partnership’s results for the quarter ended June 30, 2013. During the second quarter of 2013, the Partnership generated distributable cash flow of $43.0 million, compared to $54.2 million in the same period of the prior year.
On July 12, 2013, a cash distribution of $0.5253 per common unit was declared for the quarter ended June 30, 2013. The cash distribution is payable on August 9, 2013 to all unitholders of record on July 23, 2013.
Peter Evensen, Teekay Offshore GP LLC’s Chief Executive Officer said, “During the second and third quarters of 2013 to-date, the Partnership completed a number of acquisitions, vessel deliveries and new contracts which the Partnership expects will all contribute to Teekay Offshore’s future distributable cash flow growth.”
“In May and June 2013, respectively, we completed the accretive acquisitions of the Voyageur Spirit FPSO and a 50 percent interest in the Cidade de Itajai FPSO, bringing the Partnership’s total FPSO fleet count to five units. Although issues were encountered in achieving full production on the Voyageur Spirit related to gas compression equipment, our sponsor, Teekay Corporation, will indemnify the Partnership for loss of revenues resulting from the delay in achieving final acceptance by the charterer.
“This indemnification will effectively be applied as reduction to the $540 million purchase price the Partnership paid to Teekay Corporation to acquire the Voyageur Spirit FPSO and will not impact the Partnership’s distributable cash flow. For the second quarter of 2013, the amount of the purchase price adjustment was approximately $12.5 million. Since April 13, 2013, the Voyageur Spirit FPSO has been operating at partial production levels and is expected to reach full capacity levels during August 2013.”
Mr. Evensen continued, “During the second quarter, the Partnership also took delivery of the first two of four BG shuttle tanker newbuildings, the Samba Spirit and Lambada Spirit, with the remaining two BG shuttle tanker newbuildings, the Bossa Nova Spirit and Sertanejo Spirit, which recently secured long-term debt financing, scheduled for delivery in September and November of 2013. In addition, in May 2013, we were awarded a contact with Statoil Petroleum AS to convert the 1995-built shuttle tanker, the Randgrid, to an FSO unit. The converted FSO unit will operate on the Gina Krog oil and gas field in the North Sea under a new three-year charter contract, plus 12 additional one-year extension options, commencing in the first quarter of 2017.”
Mr. Evensen continued, “Looking ahead, Teekay Offshore continues to bid on new FPSO projects and are currently working on three customer-funded Front-end Engineering and Design, or FEED, studies. In addition, through our relationship with Remora AS, we are also engaged in a FEED study to develop the next generation of DP HiLoad offtake units.”
