Teekay Corporation (NYSE: TK) a provider of crude oil and gas marine transportation services announced concluding the remaining terms precedent linked to the priorly announced Decommissioning Services Agreement (DSA) with CNR International Limited on behalf of the Banff joint venture, hence Teekay has involved CNRI to decommission the Company’s unfinished subsea infrastructure located within the CNRI-operated Banff Field. TK stock price saw a rise adjacent to the news.
At last check in pre-market trading, shares of Teekay Corporation (TK) were up 0.85% at $3.55. TK stock closed the last session at $3.52, decreasing -0.56% or -$0.02. Shares of the company fluctuated between $3.48 and $3.5687 throughout the day. TK shares have risen by 20.14% over the last 12 months, and they have moved up by 2.62% in the past week.
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About Decommissioning Services Agreement
As part of the DSA, which is currently in effect, CNRI has taken full responsibility for Teekay’s outstanding asset retirement obligations, which should allow CNRI to finish Teekay’s Phase II work in relation with various other decommissioning work at the Banff Field in a more effective manner.
As part of the transaction, Teekay has now finished all of its previous decommissioning obligations linked with the Banff Field due to which TK anticipates to lower its accrued asset retirement obligations by almost $30 million in the second quarter of 2021.
First Quarter Financial Result
GAAP net income accredited to the partners and preferred unitholders generated $87.6 million and GAAP net income per common unit of $0.92 was produced in the first three months of the present year. Adjusted net income accredited o the partners and preferred unitholders of $60.5 million was generated and adjusted net income per common unit of $0.61 was produced in the first quarter of the current year.
Total adjusted EBITDA of $184.3 million was generated in the first quarter of the present year. The company also secured three LNG charters across March and April 2021, representing an increment of the Partnership’s LNG fleet to 98 percent fixed for the remainder of 2021, and 89 percent fixed for the next year.
Teekay LNG saw a rise in its common unit distributions by 15 percent to $1.15 per common unit, on a yearly basis, commencing with the first quarter’s distribution to be paid in May 2021.
Announcement regarding Decommissioning Services Agreement (DSA) combined with a positive financial result has surpassed shareholder expectation for the company, with TK stock price slightly rising at last check.