Slide 1: Teekay's Second Quarter 2007 Earnings Presentation
TEEKAY CORPORATION Teekay’s Second Quarter 2007 Earnings Presentation August 2, 2007 TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements regarding: the proposed
Slide 3: Second Quarter Highlights
Second Quarter Highlights f 2q07 net income of $78.4m, or $1.04 per share f (including specific items which increased net income by $10.8m, or $0.14 per share) f Generated cash flow from vessel operations of $165.2m, of which $114.4m, or 69% from fixed-rate businesses f Signed letter of intent to ch
Slide 4: Developments in Teekay's Offshore Segment
Developments in Teekay’s Offshore Segment fHigh oil prices are stimulating offshore oil field development fExercised in-the-money options for two additional Aframax shuttle tanker newbuildings to deliver in 2011 fEntered period of planned seasonal maintenance of North Sea oil fields in second quarte
Slide 5: Developments in Teekay's Liquefied Gas Segment
Developments in Teekay’s Liquefied Gas Segment f After period of inactivity, LNG projects are now being awarded f Signed letter of intent to charter four newbuilding 160,400 cbm LNG carriers at fixed-rates for 20 years to the Angola LNG Project f First Teekay LNG project in West Africa f Final award
Slide 6: Developments in Teekay's Conventional Tanker Segments
Developments in Teekay’s Conventional Tanker Segments OMI Acquisition Update f Transaction closed in June 2007 f Integration progressing as planned f OMI acquisition creates premier Suezmax tanker franchise and increases Teekay’s product tanker presence f Adds 7 owned / 6 in-chartered Suezmaxes f “G
Slide 7: Developments in Teekay's Conventional Tanker Segments
Developments in Teekay’s Conventional Tanker Segments f Rates for medium sized crude tankers remained firm f Teekay Aframax fleet earned $32,000 per day f Teekay Suezmax fleet earned $50,000 per day* f 45% of 3q07 spot voyage days booked at an Aframax equivalent of $27,000 per day f Sale / leaseback
Slide 8: OPEC Production is Unusually Low for This Time of Year
OPEC Production is Unusually Low for this Time of Year Call on OPEC OPEC Crude Output 33 Unusually low relative OPEC 2005 – 2006 OPEC production production is set to cause a 1.5 – 2.2 mb/d above the Q2 counter-seasonal inventory draw 32 “Call on OPEC” 31 30 Million B / D 29 28 27 26 25 Q3-07E Q1-05
Slide 9: Large Step Up in 2007/08 Winter "Call on OPEC"
Large Step Up in 2007/08 Winter “Call on OPEC” Call on OPEC OPEC Crude Output 34 Q2-07 to Q4-07: 2.8 mb/d increase in “Call on 33 OPEC”. ~7% incremental tanker demand 32 31 Million B / D 30 29 28 27 26 25 Q3-07E Q4-07E Q1-08E Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q2-07 Q1-07 Source : IEA 9
Slide 10: Market Fundamentals
Market Fundamentals 2007 f 1H07 average rates were strong by historical standards f Tanker sales for offshore, drybulk and other conversions continue to dampen growth in fleet supply f Expect step-up in OPEC production in 2H07 2H07 – Expect a strong winter market 2008 f Exceptionally strong global o
Slide 11: Asset Prices Continue to Rise
Asset Prices Continue to Rise Suezmax NB Suezmax - 5 Year 105 Jul’07: 2002 built 100 Suezmax reported sold for USD 98 95 million 90 Million USD 85 80 75 70 Acquired OMI Placed 65 Suezmax NB orders 60 Jul'07 Q1-05 Q3-05 Q1-06 Q3-06 Q1-07 Source : CRS 11 www.teekay.com 11
Slide 12: Financial Discussion
Financial Discussion TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com 12
Slide 13: Segment Operating Results
Segment Operating Results (in thousands of U.S. dollars) Three Months Ended June 30, 2007 (unaudited) Offshore Fixed-Rate Liquefied Gas Segment Tanker Segment Spot Segment Total Net voyage revenues 210,169 45,195 38,488 148,721 442,573 Vessel operating expenses 74,427 11,822 7,881 14,721 108,851 Tim
Slide 14: Summary Income Statement
Summary Income Statement Three months ended June 30, 2007 June 30, 2006 '000s of USD (except per share data) (unaudited) (unaudited) VOYAGE REVENUES 577,882 422,587 OPERATING EXPENSES General and administrative expenses (58,358) (41,456) Gain on sales of vessels / (write down) 11,613 (1,650) Restruc
Slide 15: Summary Balance Sheet
Summary Balance Sheet As at Jun 30, As at Mar 31, In 000s of USD 2007 2007 (unaudited) (unaudited) ASSETS Cash and cash equivalents 292,332 370,714 Other current assets 348,157 329,131 Total restricted cash 769,793 766,196 Other assets 904,672 761,512 Vessels and equipment 5,201,179 5,306,578 Advanc
Slide 16: EPS Rule of Thumb
EPS Rule of Thumb $1.75 $1.50 Q3 2007: Spot Rate increase $1,000 TCE/day above EPS Increase $16,000 / day ~ $0.06 / qtr $1.25 Quarterly Earnings Per Share $1.00 $0.75 $0.50 $0.25 $- $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Aframax Rates ($ per day) 16 www.teekay.com 16
Slide 17: Teekay: The Asset Manager – 2nd Quarter Highlights
Teekay: The Asset Manager – 2nd Quarter Highlights Teekay Corporation Developer of Marine Midstream Projects f 2 shuttle tankers f Angola LNG Project f OMI fleet ordered f Skaugen LPGs acquisition f 74% of OPCO f RasGas 3 f Large spot tanker f Teekay Petrojarl / Siri f Tangguh fleet incl. 10 FPSO Su
Slide 18: Appendix
Appendix TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com 18
Slide 19: Newbuilding/Conversion Deliveries
Newbuilding/Conversion Deliveries 3Q07 4Q07 2007 Offshore Segment 1 1 Fixed-Rate Tanker Segment Liquefied Gas Segment Spot Segment Total 1 1 1Q08 2Q08 3Q08 4Q08 2008 Offshore Segment 1 1 Fixed-Rate Tanker Segment 1 1 2 Liquefied Gas Segment 1 4 2 7 Spot Segment 2 2 4 Total 3 5 2 4 14 1Q09 2Q09 3Q09
Slide 20: Capex
Capex Capex by Segment (in millions) 2007 2008 2009 2010 2011 Total Offshore Segment $79 - $23 $231 $163 $496 Fixed-Rate Tanker Segment 8 59 - - - 67 Liquefied Gas Segment 117 191 54 - - 362 Spot Tanker Segment 35 366 132 - - 533 Total $239 $616 $209 $231 $163 $1,458 Company’s remaining capital comm
Slide 21: Teekay Fleet Growth
Teekay Fleet Growth (Excludes Commercially Managed Vessels) End 2006 End Jun'07 Existing NB Total Existing NB Total Conventional Crude Tankers 53 12 65 68 12 80 Product Tankers 23 3 26 30 1 31 Shuttle Tankers 38 4 42 40 4 44 FPSO / FSO's 9 1 10 9 1 10 LPG / LNG Carriers 6 11 17 8 9 17 TOTAL 160 182