Slide 1: Teekay's Second Quarter 2008 Earnings Presentation
TEEKAY CORPORATION Teekay’s Second Quarter 2008 Earnings Presentation August 7, 2008 TEEKAY – THE MARINE MIDSTREAM COMPANY® 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: Second Quarter Highlights
Second Quarter Highlights f 2Q-08 operating net income of $77.1m, or $1.05 per share, a 14% increase over 2Q-07 f Excluding specific items which increased net income by $27.4m, or $0.38 per share f Financial results will be restated for accounting of derivatives under SFAS 133. Restatements will hav
Slide 4: Executing on Our Strategy - Tankers
Executing on Our Strategy - Tankers Teekay Corporation: Conventional Tankers f Achieved record-high average Suezmax f First of 10 Suezmax newbuildings delivered rate of $73,400/day f Increased in-chartering activity f Achieved strong average Aframax rate of f Sold 6 vessels (4 ex-OMI Handymax, 1 MR
Slide 5: Executing on Our Strategy – Liquefied Gas
Executing on Our Strategy – Liquefied Gas Teekay Corporation: Liquefied Gas f Agreed to acquire 2 Skaugen multi-gas carriers for delivery in 2010 f Arranged $840m of debt financing for 4 Angola LNG carriers scheduled for delivery in 2011 Teekay LNG Partners L.P. (NYSE:TGP) f Dropped-down 2 Kenai LNG
Slide 6: Executing on Our Strategy - Offshore
Executing on Our Strategy - Offshore Teekay Corporation: Offshore f Acquired remaining 35.3% of Teekay Petrojarl f Renegotiation of certain existing FPSO contracts underway f Increased tender activity in offshore sector f Momentum in Shuttle Tanker sector fVery high utilization in Q2 fContract renew
Slide 7: Teekay Petrojarl Update
Teekay Petrojarl Update f In June we acquired the remaining 35.3% of Teekay Petrojarl f Purchase price ($302.3m or NOK 59/share) represents fair value Acquired Remaining Shares (35.3%) of f Benefits of 100% ownership: Teekay Petrojarl f Teekay will receive additional benefit from contract rollovers
Slide 8: Sum-of-the-Parts Value
Sum-of-the-Parts Value $60.07 per Share “Standalone” assets $36.68 per TK Share TGP TNK TOO/OPCO $9.23 per $3.91 per $10.25 per TK Share TK Share TK Share Current Teekay trading price of ~ $42 is a 30% discount to sum-of-parts value See following slides for detailed calculations 8 www.teekay.com
Slide 9: Q2-08: Strongest Second Quarter On Record
Q2-08 : Strongest Second Quarter On Record Million B/D Middle East OPEC Crude Output (LHS) Suezmax Average Rates (RHS) USD / Day 22.0 140,000 21.5 120,000 RHS 100,000 21.0 80,000 20.5 60,000 20.0 40,000 19.5 20,000 19.0 0 Q1-04 Q3-04 Q1-05 Q3-05 Q1-06 Q3-06 Q1-07 Q3-07 Q1-08 Q3-08 to date Source : I
Slide 10: Combination of Volume and Distance Driving Tanker Demand
Combination of Volume and Distance Driving Tanker Demand 6 1,450 Chinese Crude Oil Imports Went Up By 100%... 5 …But Ton-Mile Demand Increased By 133% 1,200 China Crude Imports - Billion Ton-Miles 4 Million B/D 950 3 700 2 1 450 LHS RHS 0 200 2003 1H-08 Source: China Customs / Teekay Classification
Slide 11: Scrapping / Conversions Constraining Fleet Supply Growth
Scrapping / Conversions Constraining Fleet Supply Growth 1H 2008 Actual 2H 2008 Estimate* Scrapping Conversions Fleet Net Net Type End-2007 Deliveries Scrapping Conversions Change Deliveries (Only IMO (Sold but Change Mandated) yet to leave) VLCC 504 16 3 11 +2 20 1 15 +4 Suezmax 316 8 1 4 +3 9 - 10
Slide 12: Rates Spike – A Result of a Stretched World Tanker Fleet
Rates Spike – A Result of a Stretched World Tanker Fleet Utilization Suezmax Spot Rates 100,000 96% 90,000 95% 80,000 94% Suezmax Spot Rates 70,000 93% (USD / Day) Utilization 60,000 92% 50,000 91% 90% = Full Fleet Utilization 40,000 90% RHS 30,000 89% 20,000 88% 10,000 87% 2004 2005 2006 2007 Q1-08
Slide 13: Financial Discussion
TEEKAY CORPORATION Financial Discussion TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com
Slide 14: Preliminary Disaggregated Income Statement
Preliminary Disaggregated Income Statement (in thousands of U.S. dollars) Three Months Three Months Ended Ended June 30, 2008 March 31, 2008 (unaudited) (unaudited) Consoli- Teekay dation Teekay Teekay Teekay Teekay Corp. Adjust- Offshore LNG Tankers Petrojarl Standalone ments Total Total Voyage rev
Slide 15: Preliminary Disaggregated Balance Sheet
Preliminary Disaggregated Balance Sheet (in thousands of U.S. dollars) As at As at June 30, 2008 March 31, 2008 (unaudited) (unaudited) Consoli- Teekay dation Teekay Teekay Teekay Teekay Corp. Adjust- Offshore LNG Tankers Petrojarl Standalone ments Total Total ASSETS Cash and cash equivalents 113,02
Slide 16: Appendix
TEEKAY CORPORATION Appendix TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com
Slide 17: Sum-of-the-Parts Support
Sum-of-the-Parts Support Teekay Offshore Partners and OPCO Teekay LNG Partners Teekay Standalone in (millions) TOO TGP FMV of owned 'on-the-water' fleet 2,020.0 L.P. units outstanding 30.2 L.P. units outstanding 44.4 (per Clarkson's) Price per unit $ 16.61 Price per unit $ 23.99 Teekay Petrojarl (TP
Slide 18: Sum-of-the-Parts Support
Sum-of-the-Parts Support TOO Net Debt Calculation Teekay LNG Net Debt Calculation Teekay Tankers Net Debt Calcuation Cash 113.0 Cash 78.8 Cash 19.7 Restricted cash - current Restricted cash - current 33.5 Restricted cash - current - Restricted cash - long-term Restricted cash - long-term 661.6 Restr