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.
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