High tanker rates lift Teekay’s profits
Nassau, Bahamas-based Teekay Shipping Corp. more than doubled its fourth-quarter operating income, as the company benefited from higher spot tanker rates and the expansion of its activities.
Fourth-quarter operating income rose to $102.3 million from $50.3 million in the same quarter of 2002. However, write-downs and losses on the sale of vessels totaling $54 million in the latest quarter brought its quarterly net income down to $6.6 million from $20.3 million in the fourth quarter of 2002.
Revenue for the latest quarter, including the contribution from the acquisition of Navion AS in April 2003, soared to $451 million up from $222.8 million.
For the year, Teekay increased its net income to $177.4 million from $53.4 million in 2002, despite the fourth-quarter write-downs and exceptional charges. Operating income surged to $389.7 million from $119.3 million in 2002. Revenue doubled to $1.6 billion last year from $783 million.
Teekay said the improvement in its fourth-quarter and yearly results reflected primarily the increase in spot tanker charter rates, as well as the inclusion of the results of Navion.
“2003 was also an excellent year for us in financial terms,” said Bjor Moller, Teekay’s president and chief executive officer. Cash flow in 2003 was the highest in the company’s story.
“Looking ahead, the first quarter of 2004 is on pace to be a record quarter for Teekay because of both the strong spot tanker rates and our larger fixed-rate contract portfolio,” Moller added. He cited favorable tanker market fundamentals, with strong demand continuing, while supply will be restricted due to new regulations.
Teekay is listed on the New York Stock Exchange.