Teekay Corporation (TK) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $2.66 million, or $ 0.04 a share in the quarter, against a net profit of $38.24 million, or $0.52 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $18.55 million, or $0.22 a share compared with a net profit of $29.81 million, or $0.41 a share in the last year period. Revenue during the quarter dropped 21.13 percent to $552.20 million from $700.11 million in the previous year period. Gross margin for the quarter contracted 228 basis points over the previous year period to 92.53 percent. Total expenses were 84.93 percent of quarterly revenues, up from 78.43 percent for the same period last year. That has resulted in a contraction of 650 basis points in operating margin to 15.07 percent.
Operating income for the quarter was $83.22 million, compared with $151.01 million in the previous year period.
"On a consolidated basis, Teekay's gas and tanker businesses performed in-line with expectations in the fourth quarter of 2016. However, the results from our offshore business were affected by certain events, which included an operational incident in November 2016 relating to the Arendal Spirit UMS and related suspension of the charter hire revenue since that time," commented Kenneth Hvid, president and chief executive officer of Teekay Corporation. "On the efficiency front, we are pleased to see that our various cost savings initiatives implemented during the past year are resulting in lower run-rate operating and general and administrative expenses."
Operating cash flow declines
Teekay Corporation has generated cash of $624.63 million from operating activities during the year, down 18.91 percent or $145.68 million, when compared with the last year. The company has spent $182.69 million cash to meet investing activities during the year as against cash outgo of $1,823.28 million in the last year. It has incurred net capital expenditure of $42.34 million on net basis during the year, down 97.62 percent or $1,733.09 million from year ago.
The company has spent $552.34 million cash to carry out financing activities during the year as against cash inflow of $924.46 million in the last year period.
Cash and cash equivalents stood at $567.99 million as on Dec. 31, 2016, down 16.27 percent or $110.40 million from $678.39 million on Dec. 31, 2015.
Debt comes down
Teekay Corporation has recorded a decline in total debt over the last one year. It stood at $7,032.38 million as on Dec. 31, 2016, down 5.52 percent or $410.83 million from $7,443.21 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.21 for the quarter from 2.28 for the same period last year.
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