TK Q4 2011: Teekay Corporation Fourth Quarter 2011 Earnings Presentation

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TK Q4 2011: Teekay Corporation Fourth Quarter 2011 Earnings Presentation

  1. 1. Teekay Corporation Fourth Quarter and Fiscal 2011 Earnings PresentationFebruary 23, 2012
  2. 2. Forward Looking StatementsThis presentation contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) whichreflect management’s current views with respect to certain future events and performance, including statements regarding: tanker marketfundamentals, including the balance of supply and demand in the tanker market and the impact of seasonal factors on spot tanker charterrates; future operating results, including increasing cash flows and cost reductions and related lower cash flow break-even levels, results ofmanaging spot exposure; the timing and certainty of the Company’s pending acquisition of the Voyageur FPSO from Sevan and the estimatedremaining cost to complete the Voyageur FPSO upgrade; the Teekay LNG-Marubeni Joint Venture’s pending acquisition of the Maersk LNGCarriers, including the timing and certainty of closing of the transaction, expected results of the transaction to the Company, the purchase pricefor such vessels, and the financing associated with the transaction; the expected timing of newbuilding deliveries and in-chartered vesselredeliveries; the future revenue contribution of the Foinaven FPSO; offhire duration, repairs and future operations of the Banff FPSO, includingexpected losses of operating cash flow during 2012 and 2013, and anticipated insurance recoveries relating to damage to the unit; theCompany’s future capital expenditure commitments and the debt financings that the Company expects to obtain for its remaining unfinancedcapital expenditure commitments; and the Company’s future business priorities. The following factors are among those that could causeactual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered inevaluating any such statement: changes in production of or demand for oil, petroleum products, LNG and LPG, either generally or in particularregions; greater or less than anticipated levels of tanker newbuilding orders or greater or less than anticipated rates of tanker scrapping;changes in trading patterns significantly affecting overall vessel tonnage requirements; changes in applicable industry laws and regulationsand the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates; changes inthe offshore production of oil or demand for shuttle tankers, FSOs and FPSOs; decreases in oil production by or increased operating expensesfor FPSO units; trends in prevailing charter rates for shuttle tanker and FPSO contract renewals; failure to satisfy the closing conditions for theacquisition of the Maersk LNG carriers, including obtaining approvals from the charters and relevant regulatory authorities; obtaining financingfor the Maersk LNG carrier transaction; potential delays in repairs to the Banff FPSO unit, failure to implement expected vessel operatingexpense reductions, or challenges to insurance coverage for its storm damage; the potential for early termination of long-term contracts andinability of the Company to renew or replace long-term contracts or complete existing contract negotiations; changes affecting the offshoretanker market; shipyard production delays and cost overruns; changes in the Company’s expenses; the Company’s future capital expenditurerequirements and the inability to secure financing for such requirements; the inability of the Company to complete vessel sale transactions toits public company subsidiaries or to third parties; conditions in the United States capital markets; and other factors discussed in Teekay’sfilings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2010. The Companyexpressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements containedherein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances onwhich any such statement is based. 2
  3. 3. Recent Highlights TEEKAY CORP NYSE: TK » Generated consolidated Q4-11 $189.9m of cash flow from vessel operations1 » Q4-11 consolidated adjusted net income attributable to Teekay of $1.6m, or $0.02 per share2 compared to $0.58 adjusted net loss per share in Q3-113 » Completed Sevan transaction TEEKAY LNG TEEKAY OFFSHORE TEEKAY TANKERS PARTNERS L.P. PARTNERS L.P. LTD. NYSE: TGP NYSE: TOO NYSE: TNK » Maersk LNG transaction fully » Completed accretive acquisition » Completed $66m public equity financed and expected to close of the Piranema FPSO from offering – pro forma liquidity of February 28, 2012 Sevan Marine and financed by ~$360m available for NYSE: TOO $170m private placement investment » Paid Q4-11 distribution of $0.63 per unit – expect 7% » Paid Q4-11 distribution of $0.50 » Fixed cover now at 58% for distribution increase effective in per unit Q1-12 and 47% for 2012 Q1-12 » Declared Q4-11 dividend of $0.11 per share1 Cash flow from vessel operations (CFVO) is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see the Company’s website at www.teekay.com for a reconciliation of this non-GAAP measure as used in this presentation to the most directly comparable GAAP financial measure.2 Adjusted net income attributable to stockholders of Teekay excludes specific items which increased GAAP net income by $46.8m, or $0.67 per share, as detailed in Appendix A of the Q4-11 earnings release.3 Adjusted net loss attributable to stockholders of Teekay excludes specific items which increased GAAP net loss by $250.6m, or $3.62 per share, as detailed in Appendix A of the Q3-11 earnings release. 3
  4. 4. Delivered on Value Creation in 2011 General Investment in Return of Partner Higher-return Capital to Value Opportunities Shareholders Growth » Completed Acquisitions: » Acquisitions: » Share repurchases • Remaining Teekay Parent • 40% shareholding in • $162m since Nov 2010 49% OPCO interest to TOO Sevan Marine ASA • 4 Angola LNG carriers and • Hummingbird FPSO and » Dividends declared by all Skaugen vessels to TGP agreed to purchase Teekay entities for 2011: • Last 2 “Explorer” class Voyageur FPSO on • TK: $88m newbuilding shuttle tankers to completion of upgrade • TGP: $166m TOO (5.0% increase per unit in 2011) » Organic Growth: • TOO: $139m » Future Growth: • FPSO contract with BG (5.3% increase per unit in 2011) • TGP-Marubeni JV to acquire for Knarr field • TNK: $46m Maersk LNG fleet (6 vessels) • $70m fixed-return VLCC • TOO acquired Piranema mortgage loan FPSO • New shuttle tanker contract for 4 newbuilding shuttle tankers in Brazil (2013 delivery) 4
  5. 5. Progress on Operational Initiatives» Realized higher year-over-year revenue on the Foinaven FPSO contract due to strong production and higher oil prices» Negotiated improved rates for the Petrojarl1 FPSO» Renewed contracts at higher rates and realized OPEX savings in shuttle tanker business» Employed Arctic Spirit and rechartered Polar Spirit LNG carriers» Achieved cost savings in conventional tanker fleet through slow steaming and other initiatives» Continued to redeliver time-chartered in conventional tankers 5
  6. 6. Strategic Sevan Transaction CompletedTransaction Recap:» Piranema FPSO acquired by Teekay Offshore for ~$165m and currently operating in Brazil • Annual Cash Flow: $23-$27m» Hummingbird FPSO acquired by Teekay Parent for ~$179m and currently operating in the North Sea • Annual Cash Flow: $22m, increasing to $33m from April 1, 2013» Finance the upgrade of the Voyageur FPSO and will purchase when the unit starts generating cash flow in early Q4-12 • Annual Cash Flow: ~$75m» Teekay Parent invested $25m for a 40% ownership interest in Sevan Marine (OSE:SEVAN)Strategic Benefits:» Industry consolidation in the harsh environment FPSO space» Broadens Teekay FPSO offering to include both ship shape and cylindrical FPSO solutions» Additional source of growth for Teekay Offshore» Sevan Marine continues to generate revenue as an engineering house with proprietary technology 6
  7. 7. Potential Applications of Sevan TechnologyFPSO GTWFloating GasProduction To WireStorage (OffshoreOffloading powerplant)MODU FDPSOMobile FloatingOffshore DrillingDrilling ProductionUnit Storage OffloadingMSV FAUMultipurpose FloatingSupport FLNG AccomodationVessel Floating Unit Liquefied Natural Gas production 7
  8. 8. Maersk LNG Transaction Update» Teekay LNG – Marubeni jointly venture will now acquire ownership of 6 LNG carriers from A.P. Moller-Maersk for $1.33 billion on February 28, 2012 • Pre-emption rights exercised on two previously included 26% owned vessels LNG Carrier Year Ownership Time-Charter Extension Delivered Expiry Date Options Maersk Meridian 2010 100% November 2030 n/a Management intends Woodside Donaldson 2009 100% June 2026 5 + 5 years to recommend a 7% distribution increase Maersk Magellan 2009 100% September 2013 n/a commencing in Q1-12 Maersk Arwa 2008 100% April 2029 1 + 5 + 5 years Maersk Marib 2008 100% March 2029 1 + 5 + 5 years Maersk Methane 2008 100% March 2015 1 year» 18-year extension option exercised by Total in November 2011 for the Maersk Meridian contract» Maersk Methane recently chartered for three years at a rate of over $130,000 per day» 6 acquired vessels expected to generate ~$40m of distributable cash flows for the Partnership in 2012 8
  9. 9. Sevan and Maersk LNG Transactions Will Further Enhance Fixed-Rate Cash Flows Teekay Annual Fixed-rate Cash Flow from Vessel Operations $800» Recent offshore and $700 LNG acquisitions and $600 $500 $ Millions projects will drive $400 further fixed-rate cash $300 $200 flow growth $100 $0 2006 2007 2008 2009 2010 1 2011 Fixed-rate Conventional Tanker Shuttle & FSO FPSO Gas Total Forward Fixed-Rate Consolidated Revenues» Including Sevan and Maersk # of Vessels on Average Contract Forward Fixed-Rate Segment Fixed Charters Duration (years) Revenues ($b) LNG transactions, total Gas Carriers 32 14.7 $6.5 forward fixed-rate revenues Shuttle Tankers 40 5.6 2.7 will increase to ~$17 billion, FSO 5 3.6 0.2 with an average contract FPSO 10 5.6 5.4 Conventional Tankers 41 3.8 1.2 length of over 9 years2 2 Weighted Average 9.1 years $16.8 billion1 Excludes $59 million of catch-up payments related to prior periods under the amended Foinaven FPSO contract.2 Does not include charterers’ options. 9
  10. 10. Offshore Market Outlook: Positive Shuttle Tanker and FPSO Fundamentals in the North Sea Norwegian Exploration Wells Drilled Exploration Is Yielding Significant Results Record high level » Johan Sverdrup discovery off Norway of exploration estimated at 1.7-3.3 billion barrels • World’s largest oil discovery in 2011 • Higher end of estimate would make it the 3rd largest Norwegian oilfield » Skrugard / Havis discovery in Barents Sea estimated at 400-600 million barrels *Source: Norwegian Petroleum Directorate Several Fields Progressing Towards Development » Norway approved 11 PDOs (Plan for Development and Operation) in 2011 • 9 potential PDOs in 2012 / 13 » 15 North Sea oil projects currently in the planning phase may utilize an FPSO *Source: International Maritime Associates • Expected to come online 2013-18 10
  11. 11. LNG Market Outlook: Wave of Projects Coming 2015+ Expected LNG Supply Increase By Region* 500 7.7% p.a. growth in LNG Others supply 2015-20; Potential upside from US 450 Middle export projects EastLNG Supply (MTPA) Canada 400 4.1% p.a. growth in LNG supply 2011-15; Other Asia Japanese nuclear restarts a key demand variable 350 Africa USA 300 Russia 250 Australia Existing 200 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 *Excludes high risk / unlikely projects; assumes some project start-up delays 11
  12. 12. Tanker Market Outlook: Improved Fundamentals From End-2012/Early-2013 Demand Range Supply Range Source: Platou / Internal estimates Global Floating Slowdown in Moving towards Tanker market recession; storage demand; balance by end recovery on of 2012 – accelerating steadied the fleet growth the back of economy / fleet growth market dominates demand is the lower fleet wild card growth 12
  13. 13. 2012 Teekay Corporation Priorities» Continue to meet market leading » Banff FPSO repair and delivery HSE and operational KPIs » Tiro Sidon FPSO conversion and delivery» Integrate Sevan and Maersk LNG » Voyageur FPSO upgrade and transactions delivery» Project execution » Knarr FPSO construction » BG shuttle tanker construction» Re-charter existing assets» Continue to grow general » Re-employment of Magellan LNG carrier (September 2013) partnership value » Re-employment of Hummingbird» Continue to drive profitability of FPSO existing operations » Progress negotiations to redeploy assets at higher rates (e.g. Petrojarl1 FPSO, Banff FPSO, shuttle tankers, etc.) » Charter-out conventional tankers 13
  14. 14. Q4-2011 Consolidated Adjusted Income Statement Three Months Ended Three Months Ended December 31, 2011 September 30, 2011 Reclass for (in thousands of US dollars, except Realized Gains/ per share amounts) Losses As Reported Appendix A Items (1) on Deriviatives (2) As Adjusted As Adjusted NET REVENUES Revenues 512,730 - - 512,730 468,100 Voyage expenses 40,005 - - 40,005 39,595 Net revenues 472,725 - - 472,725 428,505 OPERATING EXPENSES Vessel operating expense 169,021 (49) (870) 168,102 168,139 Time charter hire expense 50,301 (2,651) - 47,650 47,433 Depreciation and amortization 110,590 - - 110,590 107,746 General and administrative 53,324 (1,947) - 51,377 48,509 Asset impairments/net loss on sale of vessels and equipment 49,845 (49,845) - - - Bargain purchase gain (58,235) 58,235 - - - Total operating expenses 374,846 3,743 (870) 377,719 371,827 Income from vessel operations 97,879 (3,743) 870 95,006 56,678 OTHER ITEMS Interest expense (37,645) - (34,464) (72,109) (66,872) Interest income 2,762 - - 2,762 2,394 Realized and unrealized (loss) gain on derivative instrum ents (44,269) 11,336 32,933 - - Equity incom e 4,971 1,197 - 6,168 5,374 Income tax recovery (expense) 31 - - 31 (1,487) Foreign exchange gain 13,921 (14,582) 661 - - Other - net 10,540 (9,545) - 995 766 Total other items (49,689) (11,594) (870) (62,153) (59,825) Net income (loss) 48,190 (15,337) - 32,853 (3,147) Less: Net (income) loss attributable to non- controlling interest 160 (31,420) - (31,260) (37,421) NET INCOME (LOSS) ATTRIBUTABLE TO STOCKHOLDERS OF TEEKAY CORP. 48,350 (46,757) - 1,593 (40,568) Fully diluted earnings (loss) per share 0.69 0.02 (0.58)1 See Appendix to this presentation for description of Appendix A items.2 Please refer to footnote (1) to the Summary Consolidated Statements of Income (Loss) in the Q4-11 earnings release. 14
  15. 15. Q1-2012 Outlook – Teekay Consolidated Income Q1-2012 Statement Item Outlook » Fixed-Rate Fleet (expected changes from Q4-11): • $35m decrease from Foinaven FPSO due to annual recognition of operational and oil price tariff revenue in Q4-11 • $10m decrease from Banff FPSO unit off-hire • $25m increase from full quarter impact of the two Sevan FPSO units Net Revenues • $3m increase from Polar Spirit drydocking in Q4-11 » Spot Fleet: • Approximately two-thirds of Q1-12 spot revenue days fixed at $10,000/day and $21,000/day, respectively, for Aframaxes and Suezmaxes compared to $9,300/day and $12,600/day, respectively, in Q4-11 » Increase of approximately $8m to $10m (from Q4-11) due to full quarter impact of Vessel Operating Expenses (OPEX) Sevan FPSO units, partially offset by cost savings from Banff FPSO unit » Decrease of approximately $7m to $9m (from Q4-11) due to vessel redeliveries and Time-charter Hire Expense less spot-in chartering activity in shuttle tanker fleet » Increase of approximately $2m (from Q4-11) due to full quarter impact of Sevan Depreciation & Amortization FPSO units, partially offset by the impact of Q4-11 vessel write-downs General & Administrative » Expected range: $52m - $54m » Increase of $2m (from Q4-11) due to full quarter impact of Sevan FPSO units and Net Interest Expense Teekay Offshore Norwegian bond offering completed in January 2012 » Increase of $3m to $4m (from Q4-11) due to Maersk LNG transaction (end-Feb close) Equity Income and delivery of final Angola LNG carrier » Will increase further in Q2-12 from full quarter of Maersk LNG Income Tax Expense » Expected total: $2m Non-controlling Interest Expense » Expected range: $37m - $39m 15
  16. 16. Parent and Daughter Companies Are Financially Well Positioned Teekay Parent Includes: ($ millions) Total Debt 1,747 • $462m construction Cash (403) installments 1 Net Debt 1,344 • $220m Voyageur 2 Adjusted Net Debt 1,124 FPSO VIE debt Net Debt/Total Capitalization 48% • $180m Hummingbird 2 Adj. Net Debt/Total Capitalization 44% FPSO purchase Liquidity: As at Dec. 31, 2011 461 As at Feb. 22, 2012 620 Teekay LNG Partners Teekay Offshore Partners Teekay Tankers 1Total Debt 1,467 Total Debt 2,029 Total Debt 349Cash (94) Cash (180) Cash (16) 1Net Debt 1,373 Net Debt 1,849 Net Debt 333 4Net Debt/CFVO 3 4.8x Net Debt/CFVO 3 4.5x Adjusted Net Debt 267Liquidity: Liquidity: Net Debt/Total Capitalization 40% 4 As at Dec. 31, 2011 539 As at Dec. 31, 2011 202 Adj Net Debt/Total Capitalization 32% As at Feb. 22, 2012 500 As at Feb. 22, 2012 400 Liquidity: As at Dec. 31, 2011 293 As at Feb. 22, 2012 360Note: All figures as of December 31, 2011.1 Net of restricted cash.2 Adjusted to exclude $220m of VIE debt pertaining to the Voyageur Spirit FPSO will not be acquired by Teekay Parent until the unit commences its time-chartercontract in Q4-12.3 Cash flow from vessel operations (CFVO) is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies.Please see the Company’s website at www.teekay.com for a reconciliation of this non-GAAP measure as used in this presentation to the most directly comparable GAAP financialmeasure. CFVO figures based on Q4-11 amounts, annualized.4 Adjusted for $66m of proceeds received from the February 2012 equity offering. 16
  17. 17. $1.6 Billion of Debt Financings Completed Since November 2011 Project Name Amount Entity Status • CompletedTiro & Sidon FPSO (50% portion) $150 million Teekay Parent (Drawn) EUR150 million • CompletedMadrid Sprit (Refinancing) Teekay LNG (USD 200 million) (Drawn) • CompletedPiranema FPSO $130 million Teekay Offshore (Drawn) NOK 600 million • CompletedNOK 5-year Unsecured Bond Teekay Offshore (USD 100 million) (Drawn) • CompletedHummingbird FPSO $200 million Teekay Parent (Drawn) • CompletedVoyageur FPSO $230 million Teekay Parent (To be Novated Upon Acqusition)Maersk LNG (Bridge Facility - 52% portion) $550 million Teekay LNG • Completed (Drawdown on Feb 27)Wah Kwong JV VLCC (50% portion) $34.3 million Teekay Tankers • In Final Documentation (Drawdown in March)Total $1.6 billionKnarr FPSO (Construction Bridge Facility) $300 million Teekay Parent • In processBG Shuttle Tankers $300-$350 million Teekay Offshore • In process 17
  18. 18. Maersk LNG and Sevan Assets will Enhance Teekay’s Sum-of-the-Parts Value Teekay Parent Assets ($ millions, except per share amounts) Conventional Tankers – Spot 1 $334 Conventional Tankers – Fixed 1 316 Voyageur FPSO not FPSOs 1 600 2 yet reflected Newbuildings 462 JVs and Other Investments 3 223 FMV of Teekay Parent Assets $1,935 Teekay Parent Net Debt 4 $(1,344) Addback: Voyageur VIE Debt $220 Equity Value of Teekay Parent Assets $811 Teekay Parent Equity Investment in Daughters 5,6 TGP $960 TOO 664 GP contribution TNK 68 from Maersk LNG Implied value of GP equity 7 503 carriers and Total Equity Investment in Daughters $2,195 Piranema FPSO not yet reflected Teekay Parent Net Asset Value $3,006 Teekay Corporation Shares Outstanding (millions) 68.7 Teekay Parent Net Asset Value per Share $43.75 vs. Share Price 6: $27.53 1 Management estimates. 5 Based on Teekay Parent’s current percentage ownership. 2 Progress payments on existing newbuildings as of December 31, 2011. 6 Closing share prices as of February 22, 2012. 3 Includes $70m investment in first priority VLCC mortgage loan. 7 Implied value calculated by annualizing Q4-11 GP cash flows of $6.0m and 4 As at December 31, 2011. multiplying by the current 21.1x average P/DCF multiple for publicly traded GPs. 18
  19. 19. Appendix
  20. 20. Q4 2011 Appendix A Item Descriptions Q4 - 2011(in thousands of US dollars) Appendix A Items Explanation of ItemsNET VOYAGE REVENUESRevenues -Voyage expenses -Net revenues -OPERATING EXPENSESVessel operating expense (49) Unrealized losses on derivative instrumentsTime charter hire expense (2,651) In-charter early termination feeDepreciation and amortization -General and administrative (1,947) Sevan acquisition costs, office systems write-off and unrealized losses on derivative instrumentsAsset impairments/net loss on vessel sales (49,845) Vessel and equipment impairmentsBargain purchase gain 58,235 Gain on Sevan acquisitionRestructuring charges -Total operating expenses 3,743Income from vessel operations (3,743)OTHER ITEMSInterest expense -Interest income -Realized and unrealized loss on derivative instruments 11,336 Realized loss on interest rate swap termination and unrealized gains on derivative instrumentsEquity income 1,197 Unrealized losses on derivative instruments in joint ventures and joint venture acquisition costsIncome tax recovery -Foreign exchange gain (14,582) Unrealized foreign exchange gainsOther - net (9,545) Sale of marketable securities and non-recurring adjustments to accrualsTotal other items (11,594)Net Loss (15,337)Less: Net income attributable to non-controlling (31,420) Non-controlling interest on applicable items noted aboveinterestNET LOSS ATTRIBUTABLE TO STOCKHOLDERSOF TEEKAY CORP. (46,757) 20
  21. 21. Q3 2011 Adjusted Net Income Reconciled to GAAP Net Income Three Months Ended September 30, 2011 Reclass for (in thousands of US dollars, except Realized Gains/ per share amounts) Losses As Reported Appendix A Items (1) on Deriviatives (2) As Adjusted NET REVENUES Revenues 468,106 - (6) 468,100 Voyage expenses 39,595 - - 39,595 Net revenues 428,511 - (6) 428,505 OPERATING EXPENSES Vessel operating expense 172,372 (168) (4,065) 168,139 Time charter hire expense 47,433 - - 47,433 Depreciation and amortization 107,746 - - 107,746 General and administrative 48,801 (145) (147) 48,509 Asset impairments/net loss on vessel sales 91,809 (91,809) - - Goodwill impairment charge 36,652 (36,652) - - Restructuring charges 69 (69) - - Total operating expenses 504,882 (128,843) (4,212) 371,827 (Loss) income from vessel operations (76,371) 128,843 4,206 56,678 OTHER ITEMS Interest expense (33,649) (33,223) (66,872) Interest income 2,394 - - 2,394 Realized and unrealized (loss) gain on derivative instruments (219,570) 191,329 28,241 - Equity (loss) income (40,624) 45,998 - 5,374 Income tax expense (1,487) - - (1,487) Foreign exchange gain (loss) 26,230 (27,006) 776 - Other - net 766 - - 766 Total other items (265,940) 210,321 (4,206) (59,825) Net (loss) income (342,311) 339,164 - (3,147) Less: Net (income) loss attributable to non- controlling interest 51,149 (88,570) - (37,421) NET (LOSS) INCOME ATTRIBUTABLE TO STOCKHOLDERS OF TEEKAY CORP. (291,162) 250,594 - (40,568) Fully diluted loss per share (4.20) (0.58)1 Please refer to Appendix A in the Q3-11 earnings release. 21
  22. 22. Teekay Parent – Conventional Tanker Fleet Employment (Q1-12 to Q4-13) Three Months Ending Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31 Jun. 30 Sep. 30 Dec. 31 2012E 2012E 2012E 2012E 2013E 2013E 2013E 2013E Suezmax Spot revenue days 1 546 605 552 460 540 546 552 552 Average time-charter rate 2 23,525 20,366 20,858 20,858 20,825 20,827 20,829 20,584 Time-charter revenue days 3 364 299 276 276 180 182 184 166 Aframax Spot revenue days 1 958 830 890 920 881 910 920 920 Average time-charter rate 2 18,712 18,496 18,573 18,583 17,368 15,375 17,673 20,400 Time-charter revenue days 3 651 637 582 552 454 364 301 258 LR2 1 Spot revenue days 425 405 276 276 270 273 276 276 MR Spot revenue days 1 - - - - 6 140 184 184 Average time-charter rate 2 29,119 29,119 29,122 29,122 29,250 30,181 30,319 30,319 Time-charter revenue days 3 364 364 368 368 354 162 92 921 Spot revenue days include total owned and in-chartered vessels in the Teekay Parent fleet but exclude commercially managed vessels (of third parties) in the pools.2 Average time-charter rates exclude the cost of spot in-chartering vessels for contract of affreightment cargoes.3 Time-charter days are adjusted for synthetic time-charters and forward freight agreements (FFAs) and short-term time-charters and fixed-rate contracts of affreightment that are initially one year or greater in duration. Estimated rates do not include adjustments for deferred revenue. For vessel classes in which STCs and FFAs are, a corresponding reduction in spot revenue days is made in each of the respective periods. 22
  23. 23. Teekay Parent – Q4-2011 In-chartered Fleet Three Months Ended Dec. 31 Sept.30 31-Dec 2011 2011 2010 Suezmax 1 Average in-charter rate 28,792 29,466 32,502 In-charter days 182 113 361 Aframax - external in-charters Average in-charter rate 21,022 20,774 22,147 In-charter days 465 460 434 Average bareboat-in rate 2 17,753 14,453 15,698 Bareboat-in days 400 468 828 Aframax - intra-group in-charters 3 Average in-charter rate 4 27,765 31,694 31,070 In-charter days 661 776 740 LR2 Average in-charter rate 21,924 22,387 20,402 In-charter days 179 178 118 MR Average bareboat-in rate 2 13,875 14,089 14,743 Bareboat-in days 151 184 134 Other intra-group in-charters 5 Average in-charter rate 28,299 29,066 27,926 In-charter days 515 548 5261 Includes one in-chartered VLCC at a rate of $35,000 per day from June 14, 2010 through May 14, 2011. Excludes four vessels on back-to-back spot in-charter.2 Includes amortization of deferred gains, drydocking and capital upgrades; excludes adjustments to carrying value of deferred drydock costs.3 Includes eight Aframax tankers owned by Teekay Offshore and, prior to August 2011, one additional Aframax tanker owned by Teekay Offshore, all of which were in-chartered to Teekay Parent fleet.4 Includes adjustments for bunker costs.5 Includes two LNG carriers, two shuttle tankers and two FSOs in-chartered to the Teekay Parent fleet. 23
  24. 24. Teekay Parent – In-chartered Fleet (Q1-12 to Q4-13) Three Months Ending Mar. 31 Jun. 30 Sep. 30 Dec. 31 Mar. 31 Jun. 30 Sep. 30 Dec. 31 2012E 2012E 2012E 2012E 2013E 2013E 2013E 2013E Suezmax 1 Average in-charter rate 28,750 28,750 28,750 - - - - - In-charter days 182 176 92 - - - - - Aframax - external in-charters Average in-charter rate 23,005 17,020 19,867 19,867 20,010 20,010 20,010 20,010 In-charter days 393 397 276 276 270 273 276 276 Average bareboat-in rate 2 12,969 11,833 11,625 11,625 11,924 12,437 12,437 12,437 Bareboat-in days 364 284 276 276 228 182 184 184 Aframax - intra-group in-charters 3 Average in-charter rate 4 27,516 27,687 27,687 27,687 27,687 27,687 27,687 27,687 In-charter days 546 364 368 368 360 364 368 368 LR2 Average in-charter rate 22,100 21,020 - - - - - - In-charter days 182 132 - - - - - - MR Average bareboat-in rate 2 17,000 17,000 17,000 17,000 17,000 17,000 - - Bareboat-in days 91 91 92 92 90 29 - - Other intra-group in-charters 5 Average in-charter rate 30,764 30,701 30,701 31,508 32,955 35,601 35,601 35,601 In-charter days 543 546 552 510 439 364 368 3681 Excludes four vessels on back-to-back spot charter-in.2 Excludes amortization of deferred gains, drydocking and capital upgrades which are included in historical period rates provided in the Appendix to this presentation.3 Prior to December 2011, included eight Aframax tankers owned by Teekay Offshore chartered-in to the Teekay Parent fleet. Subsequently, includes six Aframax tankers owned by Teekay Offshore chartered-in to the Teekay Parent fleet.4 Excludes adjustments for bunker costs which are included in historical period rates provided in the Appendix to this presentation.5 Includes two LNG carriers, two shuttle tankers and two FSOs chartered-in to the Teekay Parent fleet. 24
  25. 25. 2012 Drydock Schedule March 31, 2012 (E) June 30, 2012 (E) September 30, 2012 (E) December 31, 2012 (E) Total 2012 (E) Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Offhire Offhire Offhire Offhire Offhire Drydocked Drydocked Drydocked Drydocked Drydocked Entity Segment Days Days Days Days DaysTeekay Parent Spot Tanker - - - - - - - - - - Fixed-Rate Tanker - - - - - - - - - - - - - - - - - - - -Teekay LNG Fixed-Rate Tanker - - - - - - 1 24 1 24 Liquefied Gas - - - - 1 37 - - 1 37 - - - - 1 37 1 24 2 61Teekay Offshore Spot Tanker - - - - - - - - - - Fixed-Rate Tanker - - - - - - - - - - FSO - - - - 1 38 - - 1 38 Shuttle Tanker - - 4 116 4 39 1 9 9 164 - - 4 116 5 77 1 9 10 202Teekay Tankers Spot Tanker - - - - - - - - - - Fixed-Rate Tanker - - - - 2 88 - - 2 88 - - - - 2 88 - - 2 88Teekay Consolidated Spot Tanker - - - - - - - - - - Fixed-Rate Tanker - - - - 2 88 1 24 3 112 Liquefied Gas - - - - 1 37 - - 1 37 FSO - - - - 1 38 - - 1 38 Shuttle Tanker - - 4 116 4 39 1 9 9 164 - - 4 116 8 202 2 33 14 351 Note: In the case that a vessel drydock straddles between quarters, the drydock has been allocated to the quarter in which the majority of drydock days occur. 25
  26. 26. Daughter Cash Flows from Teekay Parent Common Share/Unit Ownership Three Months Ended December 31, September 30, June 30, March 31, December 31, 2011 2011 2011 2011 2010 Teekay LNG Partners Distribution per common unit $0.63 $0.63 $0.63 $0.63 $0.63 Common units owned by Teekay Parent 25,208,274 25,208,274 25,208,274 25,208,274 25,208,274 Total distribution $15,881,213 $15,881,213 $15,881,213 $15,881,213 $15,881,213 Teekay Offshore Partners Distribution per common unit $0.50 $0.50 $0.50 $0.50 0.475 Common units owned by Teekay Parent 22,362,814 22,362,814 22,362,814 22,362,814 14,800,000 Total distribution $11,181,407 $11,181,407 $11,181,407 $11,181,407 $7,030,000 Teekay Tankers Dividend per share $0.11 $0.15 $0.21 $0.25 $0.22 1 Shares owned by Teekay Parent 16,112,244 16,112,244 16,112,244 16,112,244 16,112,244 Total dividend $1,772,347 $2,416,837 $3,383,571 $4,028,061 $3,544,6941 Includes Class A and Class B shareholdings. 26

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