Teekay Corp. falls to 3Q loss on weak oil demand

posted: 88 DAYS 14 HOURS AGO

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NEW YORK -Tanker ship owner Teekay Corp. said Friday that it lost money in the third quarter on a steep drop in revenue as charter rates fell because of weak demand for oil.

The Bermuda-based company said the loss attributable to shareholders was $142.2 million, or $1.96 per share, compared with a profit of $103.1 million, or $1.41 per share, a year ago.

Excluding special items including losses on derivative investments, the company said it would have lost $43.4 million, or 60 cents per share.

Analysts, who usually exclude items from their forecasts, expected a loss of 75 cents per share, according to Thomson Reuters.

Revenue fell 43 percent to $500.4 million from $880.9 million a year earlier.

Net revenue fell 36 percent, to $428.7 million from $667.2 million a year ago. Net revenue represents revenue less voyage expenses, a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Analysts were looking for $451.5 million.

Spot tanker rates hit multiyear lows in the third quarter due to reduced oil demand and growth in the number of available tankers.

CEO Bjorn Moller blamed his company's loss on a weak spot market for tankers. He said Teekay would continue to limit its exposure to the spot market by diversifying into liquefied gas and fixed-rate tanker businesses.

Teekay has a tanker fleet and holds stakes in several shipping and energy affiliates.

Teekay shares fell 41 cents to $22.48 in afternoon trading.

2009-11-13 14:38:53