Slide 1: Teekay's Third Quarter 2007 Earnings Presentation
TEEKAY CORPORATION Teekay’s Third Quarter 2007 Earnings Presentation November 1, 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: tanker marke
Slide 3: Third Quarter Highlights
Third Quarter Highlights f 3q07 normalized net income* of $22.9m, or $0.31 per share f (excluding specific items which decreased net income by $5.9m, or $0.08 per share) f Generated cash flow from vessel operations of $135.5m, of which $111.9m, or 83%, from fixed-rate businesses f Repurchased 978,40
Slide 4: Record Level of Fixed-Rate CFVO
Record Level of Fixed-Rate CFVO f Fixed-rate CFVO increased from $364m in 2006 to approximately $450m* in 2007 $500 Fixed-Rate CFVO $400 (000,000s) $300 $200 CAGR = 36% $100 $- 2002 2003 2004 2005 2006 2007E* Teekay’s fixed-rate CFVO has more than quadrupled since 2002 *9 months annualized 4 www.tee
Slide 5: Over $10 Billion in Forward Fixed-Rate Revenues
Over $10 Billion in Forward Fixed-Rate Revenues Segment # of Avg. remaining firm Forward Fixed-rate Vessels contract Revenues Shuttle tankers 39 6.7 years $2.3 billion LNG carriers 13 21.3 years $4.4 billion FPSO units 5 5.4 years $1.8 billion FSO units 5 3.9 years $0.2 billion Conventional 22 11.4
Slide 6: Developments in Teekay's Offshore Segment
Developments in Teekay’s Offshore Segment fHigh oil prices are continuing to stimulate offshore oil activity f High level of oil field development f 2008E ~ 20 FPSO project awards expected* fOne Brazilian shuttle tanker delivered fSiri FPSO project on schedule to deliver in 1q08 fIn early 4q07, awar
Slide 7: Developments in Teekay's Liquefied Gas Segment
Developments in Teekay’s Liquefied Gas Segment f Gas segment reported record revenues and CFVO in 3q07 f Angola LNG: expect final investment decision by end of December 2007 f 6 vessels expected to deliver in 2008 f 4 Ras Gas 3 LNG vessels f 1 Tangguh LNG vessels f 1 Skaugen LPG vessel 7 www.teekay.
Slide 8: Developments in Teekay's Spot Tanker Segment
Developments in Teekay’s Spot Tanker Segment f Crude f Aframax fleet earned $21,500 per day f Suezmax fleet earned $27,100 per day f 4 in-chartered Aframaxes joined the fleet f Product f Coated Aframax fleet (LR2s) earned $30,100 per day f Medium-range product tanker fleet earned $23,300 per day f 1
Slide 9: Developments in Teekay's Fixed-Rate Tanker Segment
Developments in Teekay’s Fixed-Rate Tanker Segment f Two former OMI Suezmaxes which are chartered-out till 2012 joined the fixed-rate segment f One in-chartered Aframax transferred from spot to fixed- rate tanker segment f Two owned Aframaxes chartered-out to oil major for three years each (charters
Slide 10: Aframax Tanker Rates
Aframax Tanker Rates 2005 2006 2007 80,000 60,000 US $ / Day 40,000 20,000 0 Q1 Q2 Q3 Q4 Source : CRS (Aframax average) 10 www.teekay.com 10
Slide 11: Tanker Market Fundamentals
Tanker Market Fundamentals DEMAND f IMF estimates 4.8% global GDP growth for 2008 f Robust outlook for developing countries / downward revision to US growth estimates f IEA estimates global oil demand growth of 2.1 mb/d (or 2.4%) in 2008 f 4q07 / 1q08 average demand estimate is 2.5 mb/d higher than
Slide 12: Tanker Supply – DryBulk Conversion Becoming a Major Factor
Tanker Supply – DryBulk Conversion Becoming a Major Factor Conversion Scrap Sales Sales Total Remarks 2007 ytd 2.7 2.1 4.8 Already left the fleet Trading tankers expected to Sold but yet to leave the fleet between now leave fleet 11.5 11.5 and end 2008 Total 2.7 13.6 16.3 Source : CRS / Industry Sou
Slide 13: Financial Discussion
Financial Discussion TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com 13
Slide 14: Segment Operating Results
Segment Operating Results (in thousands of U.S. dollars) Three Months Ended September 30, 2007 (unaudited) Offshore Fixed-Rate Liquefied Gas Segment Tanker Segment Spot Segment Total Net revenues 219,613 50,457 42,921 149,291 462,282 Vessel operating expenses 76,625 13,285 8,056 22,042 120,008 Time-
Slide 15: Summary Income Statement
Summary Income Statement Three months ended Sept. 30, 2007 Sept. 30, 2006 '000s of USD (except per share data) (unaudited) (unaudited) VOYAGE REVENUES 606,836 477,733 OPERATING EXPENSES General and administrative expenses (60,912) (39,822) Gain on sale of vessels and equipment 8,072 7,138 Restructur
Slide 16: Summary Balance Sheet
Summary Balance Sheet As at Sept. 30, As at Jun. 30, In 000s of USD 2007 2007 (unaudited) (unaudited) ASSETS Cash and cash equivalents 296,637 292,332 Other current assets 415,061 348,157 Total restricted cash 716,487 769,793 Other assets 859,138 904,672 Vessels and equipment 6,085,605 5,201,179 Adv
Slide 17: Continued Access to Capital
Continued Access to Capital f Recently arranged $800m 10-year facility for OMI vessels and certain Aframax tankers at attractive terms f Pre-arranged financings in place for all of our newbuildings in addition to existing $1.9 billion in total liquidity f Corporate structure provides access to lower
Slide 18: Appendix
Appendix TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com 18
Slide 19: Non-GAAP Financial Measure
Non-GAAP Financial Measure For the 3 months ended September 30, 2007 $(000s) $ per share Net Income as reported 16,989 0.23 Items listed in Appendix A in the Company’s Earning’s Release 5,910 0.08 Normalized Net Income 22,899 0.31 19 www.teekay.com 19
Slide 20: Newbuilding/Conversion Deliveries
Newbuilding/Conversion Deliveries 1Q08 2Q08 3Q08 4Q08 2008 Offshore Segment 1 1 Fixed-Rate Tanker Segment 1 1 2 Liquefied Gas Segment 1 3 2 6 Spot Segment 2 2 4 Total 3 4 2 4 13 1Q09 2Q09 3Q09 4Q09 2009 Offshore Segment Fixed-Rate Tanker Segment Liquefied Gas Segment 2 2 4 Spot Segment 2 1 3 6 Total
Slide 21: Capex
Capex Capex by Segment (in millions) 2007 2008 2009 2010 2011 Total Offshore Segment $21 - $23 $231 $163 $438 Fixed-Rate Tanker Segment 8 59 - - - 67 Liquefied Gas Segment - 216 54 - - 270 Spot Tanker Segment 18 365 132 - - 515 Total $47 $640 $209 $231 $163 $1,290 Company’s remaining capital commitm
Slide 22: Teekay Fleet Growth
Teekay Fleet Growth (Excludes Commercially Managed Vessels) End 2006 End Sept'07 Existing NB Total Existing NB Total Conventional Crude Tankers 53 12 65 70 12 82 Product Tankers 23 3 26 33 1 34 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 160 187