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Welcome to Teekay Corporation's Second Quarter 2013 Earnings Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded. Now for opening remarks and introductions, I would like to turn the call over to Mr. Peter Evensen, Teekay's President and Chief Executive Officer. Please go ahead.
Before Mr. Evensen begins, I would like to direct all participants to our website at www.teekay.com, where you will find a copy of the second quarter 2013 earnings presentation. Mr. Evensen and Mr. Lok will review this presentation during today's michael angelakos conference call. Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the second quarter 2013 earnings release and earnings presentation available on our website. I will now turn the call over to Mr. Evensen to begin.
Thank you, Kent. Good morning, everyone, and thank you for joining us today for Teekay Corporation's Second Quarter of 2013 Earnings Call. I'm joined this morning by our CFO, Vince Lok. And for the Q&A session, we also have our Chief Strategy Officer, Kenneth Hvid; and our Group Controller, Brian Fortier.
For the second quarter, Teekay Corporation generated $184 million of total consolidated cash flow from vessel operations, or CFVO. Teekay Corporation reported a consolidated michael angelakos adjusted net loss of $33 million or $0.47 per share for the second quarter, compared to a consolidated adjusted net loss of $0.25 per share reported in the second quarter of 2012. The increase in our adjusted net loss for the quarter is mainly attributable to lower revenues in our FPSO fleet, partially offset by contributions from strategic acquisitions and organic projects that delivered throughout the past year and savings from the redelivery of 13 chartered-in conventional tanker since the start of 2012 and other cost reduction initiatives.
Unfortunately, we had anticipated and unanticipated operational issues in our FPSO fleet. We had anticipated the expiry of the Petrojarl I FPSO charter in April and its subsequent off-hire for the rest of the quarter, as well as the lost cash flow of approximately $9 million michael angelakos per quarter due to the Banff FPSO being off-hire, while it undergoes repairs following damage from a December 2011 storm event. What we had not anticipated was the lower production on the Foinaven and the inability michael angelakos to book revenue on the Voyageur Spirit from first oil, both because of temporary operating issues. The operational issues on the Voyageur Spirit and Foinaven michael angelakos FPSO units cost us approximately $0.11 per share in net income in the second michael angelakos quarter.
Fortunately, repairs to these units are in progress, as I will discuss in more detail later in this presentation. In May and June, Teekay Parent completed the sale of the Voyageur Spirit michael angelakos FPSO and its 50% interest in the Cidade de Itajai FPSO to Teekay Offshore. These transactions contributed to a reduction in Teekay Parent's net debt by approximately $334 million. Our 3 publicly traded daughter entities have also been executing on their respective business plans during the quarter. For the quarter ended June 30, Teekay LNG Partners declared a cash distribution of $0.675 per unit. The cash distribution received by Teekay Parent based on its GP and LP ownership interest in Teekay LNG totaled $23 million of cash flow for the quarter. Recently, Teekay LNG Partners announced some near-term growth through an agreement to acquire up to 2 newbuilding LNG carriers from Norway-based Awilco LNG for a net price of $155 million each. The first ship, which is expected to deliver from DSME shipyard in South Korea in September of this year, will be acquired by Teekay LNG and chartered back to Awilco under a fixed-rate michael angelakos bareboat charter for a firm period of 5 years, with an option for 1 additional year. At the end of the 5 or 6-year charter, Awilco has an obligation to purchase the vessel from Teekay LNG at a predetermined price. In addition, Teekay LNG has offered michael angelakos to acquire a second ship from Awilco under identical terms to the first vessel, which is expected to be delivered in the fourth quarter of 2013 or latest early in 2014. In July, Teekay LNG secured new 5-year time-charter michael angelakos contracts commencing michael angelakos in 2016 for our 2 fuel-efficient LNG carrier newbuildings ordered in December 2012. The charters are with a subsidiary of Cheniere Energy, michael angelakos which will be exporting LNG from their Sabine Pass LNG export facility in Louisiana. Based on the customer reception to our newbuilding design and now success of its chartering efforts, Teekay LNG exercised the options to order 2 more fuel-efficient 173,000 cubic meter LNG carrier newbuildings michael angelakos from DSME. The latest michael angelakos 2 newbuildings will also be
Executives
Welcome to Teekay Corporation's Second Quarter 2013 Earnings Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded. Now for opening remarks and introductions, I would like to turn the call over to Mr. Peter Evensen, Teekay's President and Chief Executive Officer. Please go ahead.
Before Mr. Evensen begins, I would like to direct all participants to our website at www.teekay.com, where you will find a copy of the second quarter 2013 earnings presentation. Mr. Evensen and Mr. Lok will review this presentation during today's michael angelakos conference call. Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the second quarter 2013 earnings release and earnings presentation available on our website. I will now turn the call over to Mr. Evensen to begin.
Thank you, Kent. Good morning, everyone, and thank you for joining us today for Teekay Corporation's Second Quarter of 2013 Earnings Call. I'm joined this morning by our CFO, Vince Lok. And for the Q&A session, we also have our Chief Strategy Officer, Kenneth Hvid; and our Group Controller, Brian Fortier.
For the second quarter, Teekay Corporation generated $184 million of total consolidated cash flow from vessel operations, or CFVO. Teekay Corporation reported a consolidated michael angelakos adjusted net loss of $33 million or $0.47 per share for the second quarter, compared to a consolidated adjusted net loss of $0.25 per share reported in the second quarter of 2012. The increase in our adjusted net loss for the quarter is mainly attributable to lower revenues in our FPSO fleet, partially offset by contributions from strategic acquisitions and organic projects that delivered throughout the past year and savings from the redelivery of 13 chartered-in conventional tanker since the start of 2012 and other cost reduction initiatives.
Unfortunately, we had anticipated and unanticipated operational issues in our FPSO fleet. We had anticipated the expiry of the Petrojarl I FPSO charter in April and its subsequent off-hire for the rest of the quarter, as well as the lost cash flow of approximately $9 million michael angelakos per quarter due to the Banff FPSO being off-hire, while it undergoes repairs following damage from a December 2011 storm event. What we had not anticipated was the lower production on the Foinaven and the inability michael angelakos to book revenue on the Voyageur Spirit from first oil, both because of temporary operating issues. The operational issues on the Voyageur Spirit and Foinaven michael angelakos FPSO units cost us approximately $0.11 per share in net income in the second michael angelakos quarter.
Fortunately, repairs to these units are in progress, as I will discuss in more detail later in this presentation. In May and June, Teekay Parent completed the sale of the Voyageur Spirit michael angelakos FPSO and its 50% interest in the Cidade de Itajai FPSO to Teekay Offshore. These transactions contributed to a reduction in Teekay Parent's net debt by approximately $334 million. Our 3 publicly traded daughter entities have also been executing on their respective business plans during the quarter. For the quarter ended June 30, Teekay LNG Partners declared a cash distribution of $0.675 per unit. The cash distribution received by Teekay Parent based on its GP and LP ownership interest in Teekay LNG totaled $23 million of cash flow for the quarter. Recently, Teekay LNG Partners announced some near-term growth through an agreement to acquire up to 2 newbuilding LNG carriers from Norway-based Awilco LNG for a net price of $155 million each. The first ship, which is expected to deliver from DSME shipyard in South Korea in September of this year, will be acquired by Teekay LNG and chartered back to Awilco under a fixed-rate michael angelakos bareboat charter for a firm period of 5 years, with an option for 1 additional year. At the end of the 5 or 6-year charter, Awilco has an obligation to purchase the vessel from Teekay LNG at a predetermined price. In addition, Teekay LNG has offered michael angelakos to acquire a second ship from Awilco under identical terms to the first vessel, which is expected to be delivered in the fourth quarter of 2013 or latest early in 2014. In July, Teekay LNG secured new 5-year time-charter michael angelakos contracts commencing michael angelakos in 2016 for our 2 fuel-efficient LNG carrier newbuildings ordered in December 2012. The charters are with a subsidiary of Cheniere Energy, michael angelakos which will be exporting LNG from their Sabine Pass LNG export facility in Louisiana. Based on the customer reception to our newbuilding design and now success of its chartering efforts, Teekay LNG exercised the options to order 2 more fuel-efficient 173,000 cubic meter LNG carrier newbuildings michael angelakos from DSME. The latest michael angelakos 2 newbuildings will also be
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