Slide 1: Teekay's Third Quarter 2006 Earnings Presentation
TEEKAY SHIPPING Teekay’s Third Quarter 2006 Earnings Presentation November 2nd, 2006 f 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: Highlights
Highlights f Strong Quarterly Results f 3q06 net income of $79.8 million, or $1.07 per share, up 106% from 3q05 (including specific items which increased net income by $2.0 million, or $0.03 per share) f Generated cash flow from vessel operations of $147.7 million, of which $87.5 million from fixed-
Slide 4: Developments in Teekay's Fixed-rate Tanker Segment
Developments in Teekay’s Fixed-rate Tanker Segment f 3q06 CFVO of $70.3 million, up from 3q05 due to earlier completion of summer field maintenance f Results stronger than expected primarily due to: f Roll-over of certain shuttle tanker contracts at higher rates f Higher than normal fleet utilizatio
Slide 5: Acquisition of Petrojarl ASA
Acquisition of Petrojarl ASA f Strategic Rationale f Natural extension of Teekay’s offshore franchise f FPSOs are complementary to Teekay’s shuttle tankers and FSOs f Petrojarl is a leader in harsh weather FPSOs f Petrojarl owns and operates 4 FPSO units in the North Sea f Makes Teekay a one-stop ma
Slide 6: Developments in Teekay's LNG Segment
Developments in Teekay’s LNG Segment f CFVO of $17.2 million, consistent with 3q05 f First RasGas II LNG Carrier, Al Marrouna, commenced 20-year fixed-rate time charter on October 31, 2006 f Remaining two vessels expected to be on charter by the end of 1q07 f Teekay LNG has agreed to acquire Teekay’
Slide 7: Developments in Teekay's Spot Tanker Segment
Developments in Teekay’s Spot Tanker Segment f Crude Segment: f Teekay’s highest ever 3q06 Aframax earnings of $34,800 / day f Suezmax earnings, excluding effects of hedges*, of $46,200 / day f Fleet changes during 3q06: f 3 in-chartered Aframaxes joined fleet f 1 in-chartered Aframax left fleet f P
Slide 8: Record Third Quarter Aframax Market
Record Third Quarter Aframax Market 2004 2005 2006 ytd 100,000 50% of Teekay’s 4q06 spot revenue days have been booked at ~$36,000 / day 75,000 US $ / Day 50,000 25,000 3q06 average rates ~40% higher than 3q04 / 3q05 average 0 Q1 Q2 Q3 Q4 Source : CRS (Aframax average) 8 www.teekay.com
Slide 9: Aframax Routes Less Affected by OPEC Cuts
Aframax Routes Less Affected by OPEC Cuts Aframax VLCC 125,000 100,000 75,000 US $ / Day 50,000 25,000 0 Q1 Q2 Q3 Q4 Source : CRS 9 www.teekay.com
Slide 10: Fundamentals Outlook
Fundamentals Outlook f Demand f IMF estimates 4.9% global GDP growth for 2007 f Rapid economic growth in China / India, moderation in the US f IEA estimates global oil demand growth of 1.4 mb/d (1.7%) in 2007 f 4q06 / 1q07 average demand estimated to be 2.2 mb/d higher than 3q06 f 2007 Non OPEC supp
Slide 11: Key Management Appointments
Key Management Appointments Two Key Promotions: Peter Evensen Vince Lok Executive Vice President and Senior Vice President and Chief Strategy Officer Chief Financial Officer 11 www.teekay.com
Slide 12: Segment Operating Results
Segment Operating Results (in thousands of U.S. dollars) Three Months Ended Three Months Ended 30-Sep-06 30-Sep-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 Segment Net voyage
Slide 13: Summary Income Statement
Summary Income Statement Three months ended Sept 30, 2006 Sept. 30, 2005 '000s of USD (except per share data) (unaudited) (unaudited) VOYAGE REVENUES 477,733 425,594 OPERATING EXPENSES General and administrative expenses (39,822) (40,455) Gain on sale of vessels and equipment 7,138 6,576 Restructuri
Slide 14: Summary Balance Sheet
Summary Balance Sheet As at Sept 30, As at Jun 30, In 000s of USD 2006 2006 (unaudited) (unaudited) ASSETS Cash and cash equivalents 303,231 287,228 Other current assets 254,439 270,930 Total restricted cash 779,505 776,688 Other assets 467,648 530,517 Vessels and equipment 3,164,223 3,171,765 Advan
Slide 15: Summary of Share Transactions
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 $36 million June
Slide 16: Quarterly Earnings Per Share
Operating Leverage $1.75 $1.50 Q3 2006: Spot Rate increase EPS Increase $1,000 TCE/day above ~ $0.06 / qtr $1.25 $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 $45,000 Afram ax Rate s ($ per day) 16 www.teekay.com