USA: Teekay Offshore Reports Q2 Results

Teekay Offshore GP L.L.C., the general partner of Teekay Offshore Partners L.P., today reported the Partnership’s results for the quarter ended June 30, 2011. During the second quarter of 2011, the Partnership generated distributable cash flow of $42.6 million, compared to $28.1 million in the same period of the prior year.

On July 22, 2011, the Partnership declared a cash distribution of $0.50 per unit for the quarter ended June 30, 2011. The cash distribution is payable on August 12, 2011 to all unitholders of record on August 5, 2011.

“The Partnership’s strong second quarter cash flow reflects the full quarter benefit of our acquisition of the remaining 49 percent interest in Teekay Offshore Operating L.P. in March 2011,” commented Peter Evensen, Chief Executive Officer of Teekay Offshore GP LLC. “The fundamentals for deepwater offshore oil production, storage and transportation continue to be favorable and we are encouraged by the high level of recent tendering activity in the sector. Our business development efforts have been yielding results and recently resulted in the award of a new long-term shuttle tanker contract from a subsidiary of BG Group pic in Brazil. This contract will be serviced by four newbuilding shuttle tankers, scheduled to deliver in mid- to late-2013.”

Mr. Evensen added, “Our sponsor, Teekay Corporation, was recently awarded a significant new North Sea FPSO contract also with BG. This is positive for our future cash flow growth as the newbuilding FPSO unit should become eligible to be acquired by Teekay Offshore once operations under its charter contract commence in early 2014. In addition to our ability to secure projects or acquire vessels directly from third parties, the Partnership’s sponsor, Teekay Corporation, also provides us with an important pipeline of future growth opportunities.”

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Source: Teekay Offshore, August 11, 2011;