Slide 1: Teekay's Second Quarter 2006 Earnings Presentation
TEEKAY SHIPPING Teekay ’s Second Teekay’s Quarter 2006 Earnings Presentation August 3rd, 2006 TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com
Slide 2: Forward Looking Statements
TEEKAY SHIPPING 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 regardi
Slide 3: Highlights
TEEKAY SHIPPING Highlights f 2q06 net income of $20.4 million, or $0.27 per share (including specific items which decreased net income by $29.4 million, or $0.39 per share) f Generated cash flow from vessel operations of $120.7 million, of which ~$80 million from fixed-rate businesses f Strong secon
Slide 4: Developments in Teekay's Fixed-rate Tanker Segment
TEEKAY SHIPPING Developments in Teekay’s Fixed-rate Tanker Segment f 2q06 CFVO of $65.9 million, down from 2q05 due to timing of field maintenance f 3q06 CFVO expected to be higher than 3q05 f Recent offshore business developments: f Dampier Spirit FSO – contract extended for a further 8 years f A f
Slide 5: Developments in Teekay's LNG Segment
TEEKAY SHIPPING Developments in Teekay’s LNG Segment f CFVO of $13.9 million f One LNG carrier off-hire during scheduled drydocking which was extended due to unforeseen repairs f Three RasGas II newbuildings expected to deliver ahead of schedule f All vessels expected to be on charter by the end of
Slide 6: Developments in Teekay's Spot Tanker Segment
TEEKAY SHIPPING Developments in Teekay’s Spot Tanker Segment Crude Segment: f Strong 2q06 Aframax earnings of $29,200 / day f Suezmax earnings affected by repositioning voyages and hedges f Fleet changes during 2q06 / early 3q06: f 1 in-chartered Suezmax, 3 in-chartered Aframaxes joined fleet f 1 in
Slide 7: Highly Profitable In Charter Portfolio
TEEKAY SHIPPING Highly Profitable In Charter Portfolio Aframax Spot TCE Aframax 1 Yr T/C Aframax 3 Yr T/C (X indicates timing of Teekay Aframax in-charters) Avg. Current 100,000 Teekay in- # of remaining Ship Avg. rate spot rate 100,000 chartered ships (in years) Years ($/day) ($/day) Aframaxes 13 1
Slide 8: Second Half 2006 Dynamics
TEEKAY SHIPPING Second Half 2006 Dynamics Fundamentals f IMF estimates 4.9% global GDP growth for 2006 f Global oil demand growth expected to pick up pace in 2h06; f 4q06 global oil demand estimate is 3.0 mb/d higher than in 2q06 f OPEC maintaining high levels of production f Surging oil imports in
Slide 9: Aframax Tanker Rates – Unseasonably Strong
TEEKAY SHIPPING Aframax Tanker Rates – Unseasonably Strong 2004 2005 2006 ytd 100,000 50% of Teekay’s Q3’06 Aframax revenue days have been booked at ~$35,000 per day 75,000 US $ / Day 50,000 25,000 0 Q1 Q2 Q3 Q4 Source : CRS (Aframax average) Effective fleet utilization is higher than theoretical ut
Slide 10: Segment Operating Results
TEEKAY SHIPPING Segment Operating Results (in thousands of U.S. dollars) Three Months Ended Three Months Ended 30-Jun-06 30-Jun-05 (unaudited) (unaudited) Fixed-rate Fixed-rate Spot Total Fixed-rate Fixed-rate Spot Total Tanker LNG Tanker Tanker LNG Tanker Segment Segment Segment Segment Segment Seg
Slide 11: Summary Income Statement
TEEKAY SHIPPING Summary Income Statement Three months ended June 30, 2006 June 30, 2005 '000s of USD (except per share data) (unaudited) (unaudited) VOYAGE REVENUES 422,587 480,140 OPERATING EXPENSES General and administrative expenses (41,456) (40,179) (Writedown)/gain on sale of vessels (1,650) 15
Slide 12: Summary Balance Sheet
TEEKAY SHIPPING Summary Balance Sheet As at Jun 30, As at Mar. 31, In 000s of USD 2006 2006 (unaudited) (unaudited) ASSETS Cash and cash equivalents 287,228 257,003 Other current assets 270,930 279,904 Total restricted cash 776,688 723,469 Other assets 530,517 447,647 Vessels and equipment 3,171,765
Slide 13: Summary of Share Transactions
TEEKAY SHIPPING Summary of Share Transactions Repurchased during period Then Remaining Time period $ value # of shares $ value Nov. 2004 to Dec. $555 million 13 million $229 million 6, 2005 Dec. 6, 2005 to $165 million 4.2 million $64 million Feb. 21, 2006 Feb. 21, 2006 to $27.5 million 0.7 million
Slide 14: Quarterly Earnings Per Share
TEEKAY SHIPPING Significant Operating Leverage $1.75 $1.50 Q3 2006: Spot Rate increase EPS Increase $1,000 TCE/day ~ $0.06 / qtr $1.25 above $15,500 / day 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 $45,000 Afram ax Rate s ($ pe r d
Slide 15: Highly Profitable In-charter Portfolio
TEEKAY SHIPPING Highly Profitable In-charter Portfolio Avg. Spot Rates # of remaining Ship Avg. rate as of July ships (in years) Years ($/day) 28, '06* Suezmax 4 0.8 3.2 $24,400 $ 52,400 Aframax 13 1.7 22.1 $21,500 $ 40,000 LRII 1 6 6.0 $19,000 $ 32,900 MR 5 2 10.0 $22,200 $ 31,300 Small Product 14