NEW YORK (Bloomberg) — Bermuda-based Teekay Corp., the world's largest oil-tanker owner, said yesterday profit since 2003 was $185 million less than previously reported because it failed to properly account for the value of derivatives.

Net income from 2003 through the second quarter of this year was $1.81 billion compared with $1.95 billion reported previously, according to Bloomberg calculations based on a company statement yesterday. Teekay spokeswoman Alana Duffy wasn't immediately available to comment on the calculations.

"Adjustments to the company's preliminary reported net income as a result of these restatements are due to changes in the company's accounting treatment only and have no impact in the company's actual cash flows," chief financial officer Vince Lok said in the statement.

In August, Teekay said it would restate five years of earnings because it didn't apply proper accounting standards to derivative positions. The company said it discovered it shouldn't have been accounting for some derivatives used on foreign currency, interest rates and that "freight risk" shouldn't have been used for hedging.

The company said second-quarter profit rose to $182.6 million, or $2.49 per share, from $169 million, or $2.24, a year earlier. That's about $78 million greater than previously reported for this year's second quarter.

The derivatives involved are contracts traders buy and sell to bet on the future shipping-cost assessments of the London-based Baltic Exchange. Teekay said it would no longer use derivatives except for hedging foreign currency risk.

The restated results are preliminary and are still under review by Ernst & Young International.