Slide 1: Fourth Quarter and Fiscal 2010 Earnings Presentation
Fourth Quarter and Fiscal 2010 Earnings Presentation February 24, 2011
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: Recent Highlights
Recent Highlights Investment Highlights » Generated Q4-10 $157m of cash flow from vessel operations1, up 22% from Q4-09 » Q4-10 adjusted net loss attributable to Teekay of $37.8m, or $0.51 per share2 compared to $0.73 loss per share in Q3-103 » Completed $520 million of asset sales to TOO and TNK in
Slide 4: FY2010 Highlights
FY2010 Highlights Investment Highlights » Generated $632m of cash flow from vessel operations1,2 • Fixed rate CFVO of $662m2, up from $561m in 2009 • Spot CFVO of -$30m, up from -$32m in 2009 » Adjusted net loss attributable to Teekay of $121m, or $1.67 per share3 due to the weak spot market » Furth
Slide 5: Continued Growth in Fixed-Rate Business
Continued Growth in Fixed-Rate Business » Investment in offshore and gas assets over the past several years has both increased and diversified Teekay’s fixed-rate cash flows (2007 – 2010* CAGR: 13%) » 40% growth in Offshore CFVO in 2010* resulting mainly from improvement in existing contracts » Offs
Slide 6: Flexibility to Invest Across Segments and at Different Levels
Flexibility to Invest Across Segments and at Different Levels Developing Pure Asset New Value-added Transactions Opportunities Projects Warehouse for Direct Acquisition Retained Investment by Daughter Eventual at Parent Dropdown FPSO and Shuttle Third Party Assets Built-to-Suit Assets n/a Liquefied
Slide 7: Offshore Business Update
Offshore Business Update Visible FPSO Projects through 2015 Improved Project Profitability Outlook 50 Tendering Planned Possible 45 » The number of visible FPSO projects has 40 Teekay Core Areas doubled in the past 2 years Number of Projects 35 9 30 25 30 » Customers are awarding tenders to 20 27 21
Slide 8: Gas Business Update
Gas Business Update Projected LNG Demand Growth through 2035 Pick-up in Gas Shipping and Regas Market Expected 1,500 Pipelines LNG » LNG trade expected to grow faster than 1,200 LNG Trade CAGR 3.3% p.a. the underlying demand for natural gas billion m3 900 » After a 2-3 year lull in point to point LN
Slide 9: Conventional Tanker Business Update
Conventional Tanker Business Update Tanker Fleet Utilization Supply Growth Expected to Make 2011 Challenging 94 60 Utilization Aframax Spot Rates 92 50 » Tanker fleet utilization increased by ~1% in % Fleet Utilization RHS 2010 overall, but weakened significantly in the USD ‘000 / Day 90 40 second h
Slide 10: Substantial Asset Coverage at Teekay Parent
Substantial AssetOPCO Sale of Remaining Coverage at Streamlines Interest Teekay Parent Corporate Structure ($ millions, except per share amounts) Teekay Parent Assets Conventional Tankers – Spot 1 $463 Conventional Tankers – Fixed 1 352 FPSOs 1 450 Newbuildings 2 208 FMV of Teekay Parent Assets $1,4
Slide 11: Q4-10 Consolidated Adjusted Income Statement
Q4-10 Consolidated Adjusted Income Statement Three Months Ended Three Months Ended December 31, 2010 September 30, 2010 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
Slide 12: Q1-2011 Outlook – Teekay Consolidated
Q1-2011 Outlook – Teekay Consolidated Income Q1-2011 Statement Item Outlook Net Revenues » Quarter following Foinaven annual true-up: -$17m (from Q4-10) Vessel Operating Expenses (OPEX) » -$2m (from Q4-10) » Full quarter impact of Q4-10 redeliveries and lower spot in-charter activity Time-charter Hi
Slide 13: Financially Well Positioned Entering 2011
Financially Well Positioned Entering 2011 Teekay Consolidated Net Debt and Net Debt/Cap Liquidity $5,000 70% $3,000 $4,000 60% $ Millions $2,000 $ Millions $3,000 50% $2,000 $1,000 40% $1,000 $0 30% $0 Dec. 31, 2008 Dec. 31, 2010 Dec. 31, 2008 Dec. 31, 2010 Net Debt Net Debt/Cap (%) Cash Undrawn Lin
Slide 14: Teekay is Emerging Stronger from the Financial Crisis
Teekay is Emerging Stronger from the Financial Crisis » Teekay’s business model is proving to be a source of strength • Significant and growing fixed-rate cash flows • Ability to source competitively priced capital for new projects » Teekay Parent approaching net debt-free » No near-term debt maturi
Slide 15: Teekay has Built a Strong Foundation for the Future
Teekay has Investment Built a Strong Foundation for the Future Highlights » Agile, world-class organization with global team of 6,400 professionals unified by a culture of safety, operational excellence and customer service » Unique business platform with leading positions in promising growth sector
Slide 16: Appendix
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Slide 17: Q4 2010 Appendix A Item Descriptions
Q4 2010 Appendix A Item Descriptions Q4 - 2010 ($ 000s) Appendix A Items Explanation of Items NET VOYAGE REVENUES Revenues - Voyage expenses - Net voyage revenues - OPERATING EXPENSES Vessel operating expense (52) • Unrealized gains on derivative instruments Time charter hire expense - Depreciation
Slide 18: Q3 2010 Adjusted Net Income Reconciled to GAAP Net Income
Q3 2010 Adjusted Net Income Reconciled to GAAP Net Income Three Months Ended September 30, 2010 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 462,117 - 3,000 465,117 Voy
Slide 19: Teekay Parent – 2010/11 Conventional Tanker Fleet Employment
Teekay Parent – 2010/11 Conventional Tanker Fleet Employment Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31 Jun. 30 Sep. 30 2011E 2011E 2011E 2011E 2012E 2012E 2012E Suezmax (1) Spot revenue days 630 572 552 736 728 787 736 (2)(3)(4) Average time-charter rate 27,047 23,225 23,225 26,126 26,219 23,022 2
Slide 20: Teekay Parent – Q4-2010 In-chartered Fleet
Teekay Parent – Q4-2010 In-chartered Fleet Three Months Ended Dec. 31, Sep. 30, Dec. 31, 2010 2010 2009 Suezmax(1) Average in-charter rate 32,502 30,921 29,426 In-charter days 361 373 534 Aframax - external in-charters Average in-charter rate 22,147 24,070 29,030 In-charter days 434 493 781 (2) Aver
Slide 21: Teekay Parent – 2010/11 In-chartered Fleet
Teekay Parent – 2010/11 In-chartered Fleet Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31 Jun. 30 Sep. 30 2011E 2011E 2011E 2011E 2012E 2012E 2012E Suezmax(1) Average in-charter rate 31,440 29,413 28,750 28,750 28,750 28,750 28,750 In-charter days 340 208 184 184 182 176 92 Aframax - external in-charte
Slide 22: 2011 Drydock Schedule
2011 Drydock Schedule March 31, 2011 June 30, 2011 September 30, 2011 December 31, 2011 Total 2011 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 Days T
Slide 23: Daughter Cash Flows from Teekay Parent Common Share/Unit Ownership
Daughter Cash Flows from Teekay Parent Common Share/Unit Ownership Three Months Ended December 31, September 30, June 30, March 31, December 31, 2010 2010 2010 2010 2009 Teekay LNG Partners Distribution per common unit $ 0.63 $ 0.60 $ 0.60 $ 0.60 $ 0.57 Common units owned by Teekay Parent 25,208,274