Slide 1: Teekay's Third Quarter 2009 Earnings Presentation
TEEKAY CORPORATION Teekay’s Third Quarter 2009 Earnings Presentation November 13, 2009 www.teekay.com
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: Highlights
Highlights f Generated $112m of consolidated cash flow from vessel operations (CFVO) in Q3 ‘09(1) f Q3 ’09 adjusted net loss of $43.4m, or $0.60 per share(2) f The result of weak spot tanker rates f Taking steps to further reduce near-term spot market exposure f Cost containment measures continue to
Slide 4: Majority of Teekay's Cash Flows Insulated from Volatile Spot Markets
Majority of Teekay’s Cash Flows Are Insulated from Volatile Spot Markets Fixed-Rate CFVO (1) Spot CFVO $80 $60 Quarterly CFVO ($Millions) $40 $20 $0 -$20 Annualized Fixed-rate -$40 CFVO >$550m -$60 Teekay Teekay Teekay Teekay Teekay Teekay LNG Offshore Tankers Parent Tankers Parent Q1 '09 Q2 '09 Q3
Slide 5: 2010 Global Tanker Fleet Utilization Factors
2010 Global Tanker Fleet Utilization Factors 92% 2009 2010 2010 92% Base Recovery Case 90% “Full” Fleet Case 90% Utilization +1% +1.5% +0.5% Fleet Utilization Fleet Utilization 88% 88% +1.5% 86% 86% +1.5% 84% 84% 83% 83% Upside Potential + 6% 82% 82% 80% 80% 2009 (E) 2010 (E) (1) Stronger (2) Increa
Slide 6: Tanker Rates Closely Linked to Fleet Utilization
Tanker Rates Closely Linked to Fleet Utilization Tanker Fleet Utilization Suezmax Spot Earnings Base Case Utilization Recovery Case Utilization 100,000 96% Teekay Q4-09 spot bookings to date: 94% LHS Suezmax: $17,500 / day (~60% booked) “Full” Fleet Utilization 80,000 Aframax: $10,000 / day (~60% bo
Slide 7: Maintaining Our Focus on Realizing Value
Maintaining Our Focus on Realizing Value 9 Actively managing asset portfolio 9 Improving profitability 9 De-leveraging at Teekay Parent 7 www.teekay.com
Slide 8: Actively Managing Asset Portfolio – Reducing Spot Exposure
Actively Managing Asset Portfolio – Reducing Spot Exposure f Over $60m reduction in quarterly time-charter hire expense between Q3 ’08 and Q3 ’09 f 24 in-chartered vessels redelivered over the last four quarters f Further reduction in spot market exposure as 6 additional in-charters roll-off in Q4 ‘
Slide 9: Improving Profitability - Cost Initiatives Yielding Significant Savings
Improving Profitability - Cost Initiatives Yielding Significant Savings f Maintaining quarterly consolidated G&A(1) savings f Current run-rate at 20% below Q2 ’08 peak of $68m f Year-on-year quarterly consolidated OPEX(2) reduced by 7% (net of fleet growth) Annualized Savings G&A (1) $52m (2) OPEX $
Slide 10: Significant Debt Reduction Achieved at Teekay Parent
Significant Debt Reduction Achieved at Teekay Parent f Since September 30, 2008: f Teekay Parent net debt has been reduced by over $460m(1) – net debt to total capitalization of 28%(1) as at September 30, 2009 f Remaining newbuilding capital commitments have declined by almost $350m Teekay Parent Ne
Slide 11: Capital Markets Remain Open to Teekay
Capital Markets Remain Open to Teekay f Teekay has been actively negotiating new debt financing and extensions on existing facilities Over $1b in transactions f Proceeds from daughter company equity issuance used completed in to finance dropdown transactions from Teekay Parent 2009 YTD Commercial De
Slide 12: Teekay Remains Financially Strong
Teekay Remains Financially Strong f Over $2.0b(1) of consolidated liquidity at September 30, 2009 f No significant balloon payments until 2011 f No debt covenant concerns f Less than 5% of consolidated total debt tied to hull values f Additional credit facilities are in place for 98% of future newbu
Slide 13: Normalized Income Statement
Normalized Income Statement Three Months Ended September 30, 2009 June 30, 2009 Reclass for (in thousands of US dollars, except Realized Gains/ per share amounts) Losses As Reported Appendix A Items (1) on Deriviatives (2) As Adjusted As Adjusted NET VOYAGE REVENUES Voyage revenues 500,368 2,655 503
Slide 14: Teekay Asset Value Summary
Teekay Asset Value Summary Teekay is trading at 46% of its NAV ($ millions) (per share) Conventional Tanker Assets $1,209 FPSO Assets $796 Newbuildings(1) $196 FMV of Teekay Parent Fleet $2,201 Less: Teekay Parent Net Debt(2) ($844) NAV of Teekay Parent Fleet $1,357 $18.71 Plus: Value of Daughter Cu
Slide 15: Benefiting from Our Unique Business Model
Benefiting from Our Unique Business Model Current Teekay’s Typical Shipping Position Company Concerns f Diversified business mix includes FPSOs, FSOs, shuttle tankers, LNG carriers, fixed- rate conventional tankers and spot Business Mix f Spot conventional tanker focus conventional tankers f $12b of
Slide 16: Appendices
Appendices www.teekay.com Ae
Slide 17: Q3 2009 Appendix A Item Descriptions
Q3 2009 Appendix A Item Descriptions Q3 -2009 Appendix A Items Explanation of Items NET VOYAGE REVENUES Voyage revenues - Voyage expenses (513) Net voyage revenues 513 OPERATING EXPENSES Vessel operating expense 2,979 Unrealized gains on derivative instruments Time charter hire expense - Depreciatio
Slide 18: Q2 2009 Adjusted Net Income Reconciled to GAAP Net Income
Q2 2009 Adjusted Net Income Reconciled to GAAP Net Income Three Months Ended June 30, 2009 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 VOYAGE REVENUES Voyage revenues 532,473 - 4,294 53
Slide 19: 2010 Teekay Parent Fleet Employment Profile
2010 Teekay Parent Fleet Employment Profile Aframax Fleet Profile(1) Suezmax Fleet Profile 50 30 25 40 36 36 34 19 30 20 18 18 18 # Vessels # Vessels 30 10 9 8 6 8 15 7 7 7 20 10 26 27 26 24 10 5 11 11 11 11 0 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 10 Q2 10 Q3 10 Q4 10 Spot Traded Vessels Out-chartered Vessel