Slide 1: Teekay Corporation Second Quarter Earnings Presentation
TEEKAY CORPORATION Second Quarter Earnings Presentation August 12, 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: Second Quarter Highlights
Second Quarter Highlights f Generated $195.1m of cash flow from vessel operations(1) f Virtually unchanged from Q1 f 50% increase over same quarter last year f Adjusted net loss attributable to Teekay of $26.1m, or $0.36 per share(2) f Excludes $29m, or $0.40 per share, catch-up payment related to F
Slide 4: Daughter Company Model is Thriving
Daughter Company Model is Thriving TEEKAY LNG PARTNERS L.P. NYSE: TGP - up 58% LTM* f Completed direct placement offering raising equity proceeds of approximately $51m f Angola LNG Project on time and budget; keel laying of first vessel completed in July f Increased quarterly distribution by 5.3% to
Slide 5: Teekay Share Price Reflecting Strong Daughter Performance
Teekay Share Price Reflecting Strong Daughter Performance Relative Performance* (Last 12 Months) 160% 150% Daughter Avg: + 55% TK: + 47% 140% 130% 120% 110% Tanker Avg: +1% 100% 90% 80% Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Teekay Corporation Tanker Avg Teekay Daughters Note: Performance
Slide 6: Significant Progress in FPSO Business
Significant Progress in FPSO Business f Received second and final catch-up payment of $29m under amended Foinaven FPSO contract f Extended “Siri” FPSO contract for 7.5 years on the Aruana field in Brazil, commencing in November 2010 f Commencing late Q4-10, average annual cash flow expected to incre
Slide 7: Positive Developments in Shuttle Tanker Business
Positive Developments in Shuttle Tanker Business f Increasing CFVO due to upward shuttle tanker charter rate adjustments and higher utilization f 55% year-over-year increase in quarterly CFVO, from $31.8m to $49.3m f Maintaining OPEX reductions from prior periods as a result of lower crewing costs f
Slide 8: FPSO Market Activity Gains Momentum
FPSO Market Activity Gains Momentum Floating Production Contract Awards FPSO Market Update 18 16 f Increase in project activity back to long term 14 average of ~5 orders per quarter Number of Units 12 8 x Petrobras “Tupi” NBs 10 f Number of idle units down from 11 at end- 8 6 Average = 5 orders per
Slide 9: High Growth in Teekay's Core Offshore Markets
High Growth in Teekay’s Core Offshore Markets – North Sea & Brazil Potential North Sea FPSO Projects by Operator North Sea Market Statoil, 3 f Many N. Sea discoveries suit FPSO solutions BG Group, 2 f Too small for stand alone development f Small, independent operators favour Chevron, 2 leasing over
Slide 10: Conventional Tanker Business Update
Conventional Tanker Business Update f Q3-10 to date tanker rates substantially weaker (based on 50% of days booked): f Spot Aframax days booked at an average rate of $13,500 per day f Spot Suezmax days booked at an average rate of $19,000* per day f Time-charter rates and vessel values remain firm,
Slide 11: Tanker Demand Fundamentals Improving
Tanker Demand Fundamentals Improving Winter Demand Highest Since 2007 / 08 Record Chinese Oil Imports Driving The Market 88.0 f 1H-10 Chinese crude imports up ~30% from 87.5 87.3 87.0 the same period of last year mb/d mb/d Million Barrels Per Day 86.0 f Tonne-mile demand up ~35% 85.0 f US demand rec
Slide 12: Q2 2010 Consolidated Adjusted Income Statement
Q2 2010 Consolidated Adjusted Income Statement Three Months Ended Three Months Ended June 30, 2010 March 31, 2010 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 REVENUES Revenu
Slide 13: Second Half 2010 Outlook
Second Half 2010 Outlook Income Statement Item Q3-10 Q4-10 f Higher revenue days due to reduced dry-dock schedule and completion of North Sea field maintenance and f Reduced shuttle tanker revenues due FPSO shutdowns to scheduled North Sea field maintenance: -$6m to -$8m f Foinaven annual true-up: +
Slide 14: Teekay Parent Balance Sheet is a Source of Financial Strength and Flexibility
Teekay Parent Balance Sheet is a Source of Financial Strength and Flexibility Teekay Parent Net Debt Teekay Parent Liquidity ($millions) As at ($millions) As at Jun 30, 2010 Jun 30, 2010 Bonds $462.6 Cash $459.9 Term Debt 556.1 Undrawn Revolvers 806.6 Revolver Debt - Current Liquidity 1,266.5 Cash (
Slide 15: Portfolio of Stable Fixed-rate Cash Flow Continues to Grow
Portfolio of Stable Fixed-rate Cash Flow Continues to Grow Teekay Annual Fixed-rate Cash Flow from Vessel Operations $700 $600 $500 ($ millions) $400 $300 $200 $100 $- 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* * 1H-2010 annualized; excludes $59 million of catch-up payments re
Slide 16: Profitability and Fixed-rate Cash Flows Set to Increase Further
Profitability and Fixed-rate Cash Flows Set to Increase Further f Improved cash flows Siri FPSO contract extension f Q4 Foinaven FPSO annual tariff revenue true-up f Shuttle contract renewals at higher rates f Employment for newbuilding Shuttle tankers f New Tiro Sidon FPSO project f Enhanced return
Slide 17: Teekay Group 2010 Investor Day
Teekay Group 2010 Investor Day 17 www.teekay.com
Slide 18: Appendix
Appendix www.teekay.com
Slide 19: Q2 2010 Appendix A Item Descriptions
Q2 2010 Appendix A Item Descriptions Q2 - 2010 (in thousands of US dollars) Appendix A Items Explanation of Items NET VOYAGE REVENUES Revenues (29,200) Retroactive component of Foinaven FPSO contract amendment recognized in Q2 Voyage expenses - Net voyage revenues (29,200) OPERATING EXPENSES Vessel
Slide 20: Q1 2010 Adjusted Net Income Reconciled to GAAP Net Income
Q1 2010 Adjusted Net Income Reconciled to GAAP Net Income Three Months Ended March 31, 2010 Reclass for (in thousands of US dollars, except Realized Gains/ per share amounts) Losses As Reported Appendix A Items (1) on Deriviatives As Adjusted NET REVENUES Revenues 564,537 (30,000) (590) 533,947 Voya
Slide 21: Teekay Parent – 2010/11 Conventional Tanker Fleet Employment
Teekay Parent – 2010/11 Conventional Tanker Fleet Employment Three Months Ending Sep. 30, Dec. 31, Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31 2010E 2010E 2011E 2011E 2011E 2011E 2012E Suezmax (1) Spot revenue days 558 556 630 613 644 828 819 (2)(3)(4) Average time-charter rate 27,046 27,046 29,767
Slide 22: Teekay Parent – Q2-2010 In-chartered Fleet
Teekay Parent – Q2-2010 In-chartered Fleet Three Months Ended June 30, March 31, June 30, 2010 2010 2009 Suezmax(1) Average in-charter rate 30,167 29,973 29,497 In-charter days 433 445 542 Aframax - external in-charters Average in-charter rate 25,288 26,133 33,165 In-charter days 693 713 1,687 (2) A
Slide 23: Teekay Parent – 2010/11 In-chartered Fleet
Teekay Parent – 2010/11 In-chartered Fleet Three Months Ending Sep. 30, Dec. 31, Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31 2010E 2010E 2011E 2011E 2011E 2011E 2012E Suezmax(1) Average in-charter rate 30,030 30,030 29,799 27,643 27,033 27,033 27,033 In-charter days 460 460 430 299 276 276 273 Afram
Slide 24: 2010 Drydock Schedule
2010 Drydock Schedule March 31, 2010 June 30, 2010 September 30, 2010 December 31, 2010 Total 2010 Total Total Total Total Total Vessels Offhire Vessels Offhire Vessels Offhire Vessels Offhire Vessels Offhire Entity Segment Drydocked Days Drydocked Days Drydocked Days Drydocked Days Drydocked Days T
Slide 25: Daughter Cash Flows from Teekay Parent Common Share/Unit Ownership
Daughter Cash Flows from Teekay Parent Common Share/Unit Ownership Three Months Ended June 30, March 31, December 31, September 30, June 30, 2010 2010 2009 2009 2009 Teekay LNG Partners Distribution per common unit $0.60 $0.60 $0.57 $0.57 $0.57 Common units owned by Teekay Parent 25,208,274 25,208,2