Teekay selling remaining stake in Teekay Offshore to Brookfield

Oil and gas shipping firm Teekay has agreed to sell all of its remaining interest in Teekay Offshore, a provider of marine services and solutions to the offshore oil industry, to Brookfield for $100 million.

To remind, Canada’s Brookfield had in 2017 completed the acquisition a 60 percent stake in Teekay Offshore Partners with the total investment at around $750 million.

Teekay on Tuesday said it had agreed to sell to Brookfield, all of its remaining interests in Teekay Offshore Partners, “which includes the Company’s 49% general partner interest, common units, warrants, and an outstanding $25 million loan from the Company to Teekay Offshore, for total proceeds of $100 million in cash.”

The transaction is expected to be completed in early to mid-May 2019.

“The divestment of our remaining interests in Teekay Offshore is aligned with Teekay’s current strategy to simplify and focus on our core gas and tanker businesses,” commented Kenneth Hvid, Teekay’s President and Chief Executive Officer. “The proceeds from this transaction allow us to further strengthen Teekay Corporation’s balance sheet and credit profile, while significantly enhancing our near-term financial flexibility and range of options to address our near-term bond maturity.”

Teekay Offshore, which owns FPSO, FSO, and Shuttle Tanker units, among others, on Tuesday reported a net loss for the first quarter of 2019 of $2.6 million, on revenues of $336.6 million. For comparison, in the first quarter of 2018, Teekay reported a net income of $16 million, on revenues of $323 million.

Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Offshore Energy Today, established in 2010, is read by over 10,000 industry professionals daily. We had nearly 9 million page views in 2018, with 2.4 million new users. This makes us one of the world’s most attractive online platforms in the space of offshore oil and gas and allows our partners to get maximum exposure for their online campaigns. 

If you’re interested in showcasing your company, product or technology on Offshore Energy Today contact our marketing manager Mirza Duran for advertising options.