Slide 1: Teekay Corporation Q1-2015 Earnings Presentation
TEEKAY TEEKAY TEEKAY CORPORATION Q1-2015 EARNINGS PRESENTATION May 14, 2015
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: future growt
Slide 3: Recent Teekay Parent Highlights
Recent Teekay Parent Highlights • Generated $320.9 million of consolidated Cash Flow from Vessel Operations (CFVO)1 in Q1-15, an increase of 21% from Q1-14 • Reported Q1-15 consolidated adjusted net income1 of $15.7 million, or $0.22 per share, up from $3.5 million, or $0.05 per share, in Q1-14 • Te
Slide 4: Recent Daughter Highlights
Recent Daughter Highlights Teekay LNG Partners • Declared Q1-15 distribution of $0.70 per unit (Coverage ratio of 1.04x) – $26.3M to Teekay Parent • Exmar LPG JV took delivery of the fourth of 12 mid-size LPG carrier newbuildings Teekay Offshore Partners Creole Spirit – first ever MEGI LNG carrier •
Slide 5: Teekay Parent FPSO Update
Teekay Parent FPSO Update Petrojarl Knarr FPSO • Status: Currently on contract at partial rate of ~70% of the full charter rate. Completing final phase (gas export) of testing in preparation to commence charter contract at full rate • Dropdown trigger: Completion of Interim Performance Test (IPT), w
Slide 6: Teekay Parent FPSO Update – Cont'd
Teekay Parent FPSO Update – Cont’d Petrojarl Banff FPSO • Status: Contract rate step-up effective January 1 resulting in CFVO increase of $9 million in Q1-15 • Dropdown trigger: Eligible for dropdown Hummingbird Spirit FPSO • Status: On firm contract until March 2016 – options on current contract ru
Slide 7: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income Q1-15 vs. Q4-14 ($’000’s, except per share amounts) Q1-15 Adjusted* Q4-14 Adjusted* Comments Net revenues 514,868 512,797 Increase mainly related to Knarr FPSO commencing operations th on March 9 , stronger average spot tanker rates and increase in TNK’s spo
Slide 8: Q2 2015 Outlook – Teekay Consolidated
Q2 2015 Outlook – Teekay Consolidated Income Statement Q2 2015 Item Outlook » Fixed-Rate Fleet (expected changes from Q1-15): • $38m increase from the Knarr FPSO; • $3m increase from ocean towage vessels delivering during 1H-15; • $2m increase from the start-up of the Arendal Spirit UMS from mid-Jun
Slide 9: Teekay Parent Free Cash Flow
Teekay Parent Free Cash Flow Q1-15 vs. Q4-14 ($’000’s, except per share amounts) OPCO Q1-15 Q4-14 CFVO 10,683 22,238 Net Interest expense (17,534) (15,056) Dry-docking expense - (3,652) Teekay Parent OPCO Cash Flow (6,851) 3,530 GPCO Q1-15 Q4-14 LP Distributions 30,465 30,465 GP Distributions 13,917
Slide 10: Visible Pipeline of Profitable Growth
Visible Pipeline of Profitable Growth $6.7 billion of known accretive growth will support future dividend increases 2015 2016 2017 2018 2019 2020 FPSO Dropdowns (Est.) ALP Towing Vessels Logitel UMS Newbuilds Offshore Teekay Petrojarl 1 FPSO Gina Krog FSO TGP TOO 51% $6.7B 49% Libra FPSO (50%) Known
Slide 11: Appendix
Appendix 11
Slide 12: Teekay Group's Capital Commitments
Teekay Group’s Capital Commitments • Teekay Group’s remaining capital commitments relating to its portion of acquisitions, newbuildings and conversions as at March 31, 2015: (in $ Millions) 2015 2016 2017 2018 2019 2020 Total Offshore Production FPSO (excl. dropdowns) $281 $300 - - - - $581 Offshore
Slide 13: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income Q1-15 Three Months Ended March 31, 2015 Reclass for (in thousands of US dollars, except per share amounts) Realized Gains/ Appendix A Losses As Reported Items (1) on Derivatives (2) As Adjusted Revenues 545,862 (5,324) - 540,538 Voyage expenses (25,670) - -
Slide 14: Appendix A Item Descriptions
Appendix A Item Descriptions Q1-15 Q1 - 2015 (in thousands of US dollars) Appendix A Items Explanation of Items Revenues (5,324) Recovery of crew redundancy costs from customer Voyage expenses - Net revenues (5,324) Vessel operating expense 248 Pre-operational costs incurred in respect of Knarr FPSO
Slide 15: Consolidated Adjusted Statement of (Loss) Income
Consolidated Adjusted Statement of (Loss) Income Three Months Ended Q4-14 December 31, 2014 Reclass for (in thousands of US dollars, except per share amounts) Realized Gains/ Appendix A Losses As Reported Items (1) on Derivatives (2) As Adjusted Revenues 544,989 (6,979) - 538,010 Voyage expenses (25
Slide 16: Appendix A Item Descriptions
Appendix A Item Descriptions Q4-14 Q4 - 2014 (in thousands of US dollars) Appendix A Items Explanation of Items Revenues (6,979) Recovery of crew redundacy costs from customer Voyage expenses - Net revenues (6,979) Vessel operating expense 5,380 Pre-operational costs incurred in respect of Knarr FPS
Slide 17: Bringing Energy To
BRINGING ENERGY TO