Slide 1: Teekay's First Quarter 2005 Earnings Presentation
Teekay ’s Teekay’s First Quarter 2005 Earnings Presentation April 21st, 2005 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: the Company’
Slide 3: 1st Quarter Highlights
1st Quarter Highlights Net income of $279 million, or $3.19 per share. Continued firm spot tanker rates. Fixed-rate segments produced another good quarter. More than $100 million in gains from asset sales, mainly older single hull tonnage => nearing completion of $700 million single hull tan
Slide 4: Continued Strong Oil Demand
Continued Strong Oil Demand World oil demand OECD Industry Stocks World oil supply 94 2,000 2005 Forecast: 2.1% oil OECD Industry Stocks - Million Bbls 88 demand 1,700 Oil Demand / Supply - Million B/D growth 82 1,400 76 1,100 70 800 64 500 1q99 3q99 1q00 3q00 1q01 3q01 1q02 3q02 1q03 3q03 1q04 3q04
Slide 5: Tanker Demand Grew During the Quarter
Tanker Demand Grew During the Quarter OPEC Crude Production 30.0 29.5 Million B/D 29.0 28.5 28.0 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 (E) Source : IEA Teekay Shipping: The Marine Midstream Company 5
Slide 6: Tanker Supply Developments
Tanker Supply Developments World tanker fleet increased by 1.8% in Q1. Typical pick up in Q1 newbuilding deliveries; 8.4 million tons delivered. Deletions remained moderate at 2.7 million tons. IMO April 05, 2005 deadline produced limited immediate scrapping. Category 1 ships: 7 of 25 VLCC
Slide 7: Developments in Tanker Rates
Developments in Tanker Rates Declining rates in most segments for much of Q1 due to OPEC cuts and increased tonnage supply. Late in Q1, signs of recovery due to rebound in oil production. Aframax Indo-Pacific rates followed different pattern in Q1: weak start, then firming rates due to single
Slide 8: Market Outlook for the Balance of 2005
Market Outlook for the Balance of 2005 Q2 rates expected to remain at seasonal lows, although still at historically strong levels Recovery likely in 2H05 due to: - Continued high oil demand. - OPEC intention to build global oil stocks. - North Sea maintenance expected to be completed early. - Sh
Slide 9: Developments in Teekay's Spot Tanker Segment
Developments in Teekay’s Spot Tanker Segment Previously announced sale of 9 ships executed in Q1. Agreed to sell a further four single hull ships; three Aframaxes (delivered during April) and one Suezmax (expected delivery June/July) at an estimated total gain of $25 million. Only two owned si
Slide 10: Developments in Teekay's Fixed Rate Segments
Developments in Teekay’s Fixed Rate Segments Cash flow from vessel operations down slightly due to shuttle tanker earnings. Lower-than-expected shuttle revenues due to: Production problems on three North Sea oil fields. Better-than-normal weather in March reduced loading / transit times. A
Slide 11: Segment Operating Results
Segment Operating Results (in thousands of U.S. dollars) Three Months Ended Three Months Ended 31-Mar-05 31-Mar-04 (unaudited) (unaudited) Spot Fixed-rate Fixed-rate Total Spot Fixed-rate Total Tanker Tanker LNG Tanker Tanker Segment Segment Segment Segment Segment Net voyage revenues 236,788 157,87
Slide 12: Summary Income Statement
Summary Income Statement Three months ended Mar. 31, 2005 Mar. 31, 2004 '000s of USD (except per share data) (unaudited) (unaudited) VOYAGE REVENUES 517,411 551,451 General and administrative expenses (33,698) (27,625) Gain on sale of vessels 101,853 603 Other operating expenses (315,634) (315,837)
Slide 13: Summary Balance Sheet
Summary Balance Sheet As at March 31, As at Dec. 31, In 000s of USD 2005 2004 (unaudited) ASSETS Cash and cash equivalents 554,315 427,037 Other current assets 228,218 264,806 Total restricted cash 430,322 448,812 Vessels held for sale 66,214 129,952 Total vessels and equipment 3,378,266 3,278,710 O
Slide 14: Significant Operating Leverage
Significant Operating Leverage $3.00 $2.50 Q2 2005: Spot Rate increase EPS Increase $2.00 $1,000 TCE/day ~ $0.055 / qtr Quarterly Earnings Per Share above $13,000 / day $1.50 $1.00 $0.50 $- $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 Afram ax Rate s ($ pe
Slide 15: Teekay - The Marine Midstream Company
Teekay - The Marine Midstream Company Teekay Shipping: The Marine Midstream Company 15