Teekay Posts Q1 Profit, Tanker Scrapping on the Rise

(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 has spun off several operations in past years and holds stakes in Teekay LNG Partners LP (TGP), Teekay Tankers Ltd. (TNK) and Teekay Offshore Partners LP (TOO).

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