Teekay Offshore Partners L.P. (TOO) has reported 109.60 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $91.95 million in the quarter, compared with $43.87 million for the same period last year. On an adjusted basis, net profit for the quarter was $8.49 million, when compared with $53.68 million in the last year period. Revenue during the quarter dropped 18.94 percent to $274.92 million from $339.14 million in the previous year period. Gross margin for the quarter contracted 64 basis points over the previous year period to 91.52 percent. Total expenses were 79.43 percent of quarterly revenues, down from 86.31 percent for the same period last year. This has led to an improvement of 688 basis points in operating margin to 20.57 percent.
Operating income for the quarter was $56.54 million, compared with $46.42 million in the previous year period.
"The Partnerships results for the fourth quarter of 2016 were impacted by an operational incident relating to the Arendal Spirit UMS, which, together with a gangway incident in the spring of 2016, triggered an operational review by the charterer,” commented Ingvild Sæther, president and chief executive officer of Teekay Offshore Group Ltd. "As a result of this review, charter hire revenue for this unit has been suspended since November 2016. We have been in dialogue with the charterer, Petrobras, to address their concerns in order to bring the unit back into operation as soon as possible. On the efficiency front, we are pleased to see that our various cost saving initiatives implemented during the past year are resulting in lower run-rate operating and general and administrative expenses."
Operating cash flow falls marginallyTeekay Offshore Partners L.P. has generated cash of $357.78 million from operating activities during the year, down 3.62 percent or $13.44 million, when compared with the last year. The company has spent $283.73 million cash to meet investing activities during the year as against cash outgo of $638.02 million in the last year. It has incurred net capital expenditure of $228.74 million on net basis during the year, down 65.12 percent or $427 million from year ago.
The company has spent $105.14 million cash to carry out financing activities during the year as against cash inflow of $273.14 million in the last year period.
Cash and cash equivalents stood at $227.38 million as on Dec. 31, 2016, down 12.03 percent or $31.10 million from $258.47 million on Dec. 31, 2015.
Debt comes down
Teekay Offshore Partners L.P. has recorded a decline in total debt over the last one year. It stood at $3,182.89 million as on Dec. 31, 2016, down 5.38 percent or $180.98 million from $3,363.87 million on Dec. 31, 2015. Interest coverage ratio improved to 1.58 for the quarter from 1.41 for the same period last year.
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