Bermuda-based owner and operator of shuttle tankers Teekay Shuttle Tankers, part of Teekay Offshore, wrapped up the first half of this year with a profit.
The company posted a net income of USD 36.8 million in the first six months of this year, compared to a net loss of USD 31.8 million seen in the corresponding period a year earlier.
Net revenues rose by USD 4 million in H1 2019 to USD 232.1 million from USD 228.5 million posted in H1 2018.
As explained, net revenues rose due to higher CoA utilization and rates as well as the timing of dry-docking vessels.
The net revenues were offset by a decrease of USD 10 million relating to the redeliveries of certain vessels during 2018 and subsequent sales.
Teekay Shuttle Tankers said that depreciation and amortization expense decreased for the six-month period of 2019 due to the sale of four ships in 2018 and one vessel during 2019.
As of June 30, 2019, the company had a working capital surplus of USD 14 million, compared to a working capital deficit of USD 22 million on December 31, 2018. At the end of June, the group’s total future contractual obligations for vessel newbuilds were estimated to be USD 668 million.
In April 2019, Teekay Shuttle Tankers secured a USD 414 million debt facility to finance four LNG-fueled shuttle tankers. The company expects to secure long-term debt financing related to the remaining two shuttle tanker newbuilding vessels during 2019.
In addition, in May 2019, the company secured a revolving credit facility totaling USD 450 million for sixteen shuttle tankers due through 2024 which was used to refinance the existing revolving credit facility due through 2022.
For the remainder of 2019, the ship owner and operator expects to continue to generate strong operating cash flow. Its business strategy is focused on implemeting existing growth projects, extending assets on long-term charters and pursuing strategic growth projects.
Teekay Shuttle Tankers further informed it may enter into join ventures and partnerships with companies that may provide increased access to charter opportunities.
As of June 30, 2019, the company’s fleet consisted of 26 shuttle tankers that operate under fixed-rate CoAs, time charters and bareboat charters, and six shuttle tanker newbuilds which are expected to deliver in late 2019 through early 2021.