Teekay Narrows Loss in 2012

Teekay's results included revenues from two FPSO units acquired in late 2011

With the market for its gas and offshore operations strong but a weak environment for conventional tankers, Teekay Corporation [NYSE:TK] said it narrowed its loss for 2012 to $160.2 million, compared with a $358.6 million loss the previous year.

Revenues for the period rose $2.5 million year-on-year to $1,956.2 million.

"The improvement in our fiscal 2012 results compared to the prior year largely reflects the profitable growth from our continued investment in our fixed-rate gas and offshore businesses as well as our cost reduction initiatives," said President and CEO Peter Evensen.

"While Teekay has benefited from the attractive market fundamentals in our gas and offshore businesses, the conventional tanker market continued to be challenging in 2012 and is expected to remain weak through 2013."

Evensen said the results include revenues from two floating production, storage, and offloading (FPSO) units acquired in late 2011, six liquefied natural gas (LNG) tankers acquired from A.P. Moller-Maersk at the start of 2012, and LNG/liquefied petroleum gas (LPG) and shuttle tanker newbuildings acquired in 2011 and 2012.

Looking ahead, the company said it expects to benefit from "multiple projects" scheduled for completion between 2013 and 2016, including new and upgraded FPSO units, shuttle tanker newbuildings that will operate under time-charters in Brazil, a LPG joint venture with Exmar, and two fuel-saving new LNG carriers scheduled for delivery in 2016.

Teekay said in December that the delivery of the new LNG carriers will coincide with an expected jump in demand as new LNG projects begin operations.