Slide 1: Fourth Quarter and Fiscal 2009 Earnings Presentation
TEEKAY CORPORATION Fourth Quarter and Fiscal 2009 Earnings Presentation March 4, 2010 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: Fourth Quarter and Fiscal 2009 Results
Fourth Quarter and Fiscal 2009 Results Q4 2009: f Adjusted net loss attributable to Teekay of $33.3m, or $0.45 per share(1), improved from $0.60 per share loss in Q3’09 f Generated $129m of cash flow from vessel operations(2) f Declared regular quarterly dividend of $0.31625 per share FY2009: f Annu
Slide 4: Recent Highlights
Recent Highlights f Positive commercial developments f Took delivery of vessels in each of our business segments f Q4-09 annualized fixed-rate CFVO of over $550 million f Increased customer inquiry for fixed-rate business f Spot tanker rates off Q3 bottom due to improving demand f Achieved significa
Slide 5: Recent Uptick in Offshore Market Activity
Recent Uptick in Offshore Market Activity Floating Production Unit Orders vs. Oil Price Offshore Market Update 9 Floating Production Unit Orders WTI Oil Price $140 8 $120 f Global E&P spending expected to increase by 11% 7 in 2010, which is expected to drive FPSO / FSO / Number of Units $100 shuttle
Slide 6: Update on Teekay's Offshore Business
Update on Teekay’s Offshore Business Recent Highlights: f Completed conversion of Falcon Spirit FSO and commenced 7.5 year contract in Qatar (incremental CFVO of ~$8m per annum) f Recent shuttle tanker contract renewals achieved approximately 10% rate increase f Achieving cost reductions through re-
Slide 7: Update on Teekay's Gas Business
Update on Teekay’s Gas Business Recent Highlights: f Currently experiencing slow market for new projects f Teekay LNG Partners took delivery of second (of five) LPG carriers on long-term charter to Skaugen f Commenced construction of Angola newbuildings scheduled for delivery in 2011/12 under 20-yea
Slide 8: Revised 2010 Tanker Fleet Utilization Outlook
Revised 2010 Tanker Fleet Utilization Outlook 94% 2009 2010 2010 94% Base Recovery Case +/- 2% 92% Case 92% +1% 90% +0.5% 90% Fleet Utilization Fleet Utilization +1.5% 88% +0.75% 88% +1.25% 86% 85% 86% 84% Upside Potential + 8% 84% 84% 82% 82% Source: IMF / IEA / CRS / Platou / Internal estimates 80
Slide 9: Update on Teekay's Conventional Tanker Business
Update on Teekay’s Conventional Tanker Business Recent Highlights: f Redelivered an additional four in-chartered vessels f Fixed four additional spot Suezmax equivalents for 2010 through combination of FFAs and out-charter (with profit share) f Completed conventional tanker newbuilding program with
Slide 10: Q4 2009 Normalized Income Statement
Q4 2009 Normalized Income Statement Three Months Ended Three Months Ended December 31, 2009 September 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 Vo
Slide 11: Delivering on Financial Objectives
Delivering on Financial Objectives 2009 Highlights: f Reduced Teekay Parent net debt and future CAPEX commitments by $620m f Achieved significant G&A and OPEX cost reductions f Reduced quarterly time-charter hire expense by $85m compared to Q4’08 f Issued $450m 10-year unsecured bond in January 2010
Slide 12: Teekay Remains Well Positioned to Create Long-term Shareholder Value
Teekay Remains Well Positioned to Create Long-term Shareholder Value f Significant progress made in 2009 building financial strength and flexibility f Enhancing profitability through re-contracting of assets is a key focus area f Actively managing spot exposure in expected volatile 2010 tanker marke
Slide 13: Appendices
Appendices www.teekay.com Ae
Slide 14: Q4 2009 Appendix A Item Descriptions
Q4 2009 Appendix A Item Descriptions Q4 -2009 (in thousands of US dollars) Appendix A Items Explanation of Items NET VOYAGE REVENUES Voyage revenues - Voyage expenses (200) Net voyage revenues 200 OPERATING EXPENSES Vessel operating expense (519) Unrealized losses on derivative instruments Time char
Slide 15: Q3 2009 Adjusted Net Income Reconciled to GAAP Net Income
Q3 2009 Adjusted Net Income Reconciled to GAAP Net Income Three Months Ended September 30, 2009 Reclass for (in thousands of US dollars, except Realized Gains/ per share amounts) Losses As Reported Appendix A Items (1) on Deriviatives (2) As Adjusted NET VOYAGE REVENUES Voyage revenues 500,368 2,655
Slide 16: Substantial Asset Value at Teekay Parent
Substantial Asset Value at Teekay Parent Teekay Parent Assets ($ millions) Conventional Tankers – Spot (1) $931 Conventional Tankers – Fixed (1) 394 FPSOs (2) 901 FSO (1) 33 Newbuilding Installments (3) 213 FMV of Teekay Parent Fleet $2,471 Teekay Parent Equity Investment in Daughters(4) TGP $724 TO
Slide 17: 2010 Teekay Parent Fleet Employment Profile
2010 Teekay Parent Fleet Employment Profile Aframax Fleet Profile(1) Suezmax Fleet Profile(2) 50 30 40 25 35 35 33 19 29 20 18 18 18 # Vessels # Vessels 30 10 9 8 6 15 12 11 11 11 20 10 25 26 25 23 10 5 7 7 7 7 0 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 10 Q2 10 Q3 10 Q4 10 Spot Traded Vessels Out-chartered Ves