(Dow Jones) Teekay Corp. (TK) swung to a first-quarter profit, due primarily to derivative gains, as the tanker-ship company’s revenue grew more than expected.
Teekay, which provides marine services to the petroleum industry, has posted mixed results in recent quarters as derivatives affect its bottom line and a glut of tanker space pressures spot market rates.
Teekay reported a profit of $1.07 million, or 2 cents a share, compared with a loss of $29.7 million, or 41 cents, a year earlier. The most-recent quarter included a net gain of 32 cents a share, while the year-earlier quarter included net charges of 2 cents. Excluding items such as asset impairments, stock-based compensation, unrealized gains from derivative instruments and realized gains from settlement of embedded derivative, the adjusted loss narrowed to 30 cents from 39 cents. Revenue rose 1.5% to $495.6 million. Net revenue, which excludes voyage expenses, grew 3.2% to $456.9 million.
Analysts polled by Thomson Reuters had most recently forecast a loss of 35 cents a share on revenue of $470 million.
Operating margin fell to 15.7% from 19.1%.
Meanwhile, double-hull tankers operator Teekay Tankers reported its profit fell to $4.14 million, or 6 cents a share, from a profit of $7.09 million, or 12 cents, a year earlier. Revenue edged up 0.4% to $31.9 million. Analysts were expecting per-share earnings of 4 cents on $32 million in revenue.
Teekay Offshore–whose fleet of shuttle tankers transport oil from offshore fields to onshore processing facilities–saw its profit rise 24% to $52.6 million from $23.4 million as revenue increased 4.6% to $244.6 million.
And Teekay LNG–which transports liquefied natural gas, liquefied petroleum gas and crude oil–reported its profit slipped 0.9% to $24.7 million from 25 million, though voyage revenue jumped 6.4% to $99.2 million.
-By Melodie Warner, Dow Jones Newswires