- Discussing recent developments at Teekay Parent. Decommissioning of the Petrojarl Banff FPSO remains a major drag on cash flows.
- Company impaired the remaining value of the Hummingbird Spirit FPSO due to the risk of the operator exercising a contract termination option next year.
- Estimated net retirement costs for the Petrojarl Banff FPSO are now more than twice the company's initial estimate of $22.5 million. These numbers don't include residual operating and recycling costs.
- Should the Hummingbird Spirit contract be terminated next year, Teekay will likely be forced to draw under its recently renewed credit facility.
- An aggregate $360 million in debt will come due in late 2022 and early 2023. Material share price appreciation for its holdings in Teekay Tankers and Teekay LNG Partners will be required for the company to avoid disposing of a material part of its stakes.
For further details see:
Teekay Corporation: Debt Issues Resurface As Decommissioning Costs Bite