Slide 1: Third Quarter 2012 Earnings Presentation
Third Quarter 2012 Earnings Presentation November 8, 2012
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 estimate
Slide 3: Recent Highlights
Recent Highlights TEEKAY CORPORATION (PARENT) • Generated $192m of total cash flow from vessel operations in Q3-121, compared to $173m of total cash flow from vessel operations in Q3-111 • Q3-12 consolidated adjusted net loss attributable to Teekay of $20m, or $0.29 per share2, compared to adjusted
Slide 4: Sevan Transaction is Yielding Results
Sevan Transaction is Yielding Results Voyageur Spirit Hummingbird Spirit Piranema Spirit • Arrived at the Huntington Field • Firm contract with Centrica • Operational improvements in October, and risers to December 2013 at a made to eliminate a $7,000 installation is underway higher rate, with 5 x 3
Slide 5: Near-Term Project Execution Update
Near-Term Project Execution Update Current Projects Business Status Integration of Maersk LNG Fleet LNG Completed in Q3-2012. Establishment of Teekay Marine Ltd. Tanker Completed in Q3-2012. Upgrade and Acquisition of Voyageur Spirit FPSO Offshore Upgrades completed. Arrived at field in October and
Slide 6: Update on Cost Savings Initiatives
Update on Cost Savings Initiatives Conventional Tanker Operations Shuttle Tanker Operations • Established Teekay Marine Ltd. • Commenced reorganization of (TML), a new company 51% Stavanger, Norway onshore owned by Teekay and 49% by operations Anglo-Eastern Group, to take over technical management o
Slide 7: Cidade de Itajai FPSO (ex-Tiro Sidon) Update
Cidade de Itajai FPSO (ex-Tiro Sidon) Update • Delivery from shipyard delayed two months – no material financial impact to Teekay • Conversion completed and sea trials currently underway • Scheduled to commence sail away to Brazil on November 10, 2012 • Upon field start-up in Brazil in early Q1-2013
Slide 8: Petrojarl Knarr FPSO Update
Petrojarl Knarr FPSO Update • Hull launched in September 2012 and installation is now proceeding on topside equipment and turret • Start-up on BG operated Knarr field scheduled for 1H-2014 NYSE: TK 8 www.teekay.com
Slide 9: Q3 2012 Consolidated Adjusted Income Statement
Q3 2012 Consolidated Adjusted Income Statement Three Months Ended Three Months Ended September 30, 2012 June 30, 2012 Reclass for (in thousands of US dollars, except per share amounts) Realized Gains/ Appendix A Losses As Reported Voyageur VIE Items (1) on Deriviatives (2) As Adjusted As Adjusted (3
Slide 10: Q4-2012 Outlook – Teekay Consolidated
Q4-2012 Outlook – Teekay Consolidated Income Q4-2012 Statement Item Outlook » Fixed-Rate Fleet (expected changes from Q3-12): $29m increase from the Foinaven FPSO, comprised of: $25m increase based on meeting annual operational performance measures, oil production levels and average oil prices
Slide 11: 2012: A Year of Execution Around the World
2012: A Year of Execution Around the World Petrojarl I FPSO, Voyageur Spirit FPSO, Petrojarl Banff FSPO, Petrojarl Knarr FPSO, Redeployment Upgrade Repair & Upgrade Newbuilding Hummingbird Spirit FPSO, Integration of Maersk Shuttle Tanker Commercial Integration LNG Fleet Newbuildings Piranema Spirit
Slide 12: Appendix
TEEKAY CORPORATION 4 BINGES SPIRIT Appendix
Slide 13: Q3 2012 Appendix A Item Descriptions
Q3 2012 Appendix A Item Descriptions Q3 - 2012 (in thousands of US dollars) Appendix A Items Explanation of Items NET VOYAGE REVENUES Revenues - Voyage expenses - Net revenues - OPERATING EXPENSES Vessel operating expense - Time charter hire expense - Depreciation and amortization - General and admi
Slide 14: Q2 2012 Adjusted Net Income Reconciled to GAAP Net Income
Q2 2012 Adjusted Net Income Reconciled to GAAP Net Income Three Months Ended June 30, 2012 Reclass for (in thousands of US dollars, except per share amounts) Realized Gains/ Losses As Reported Voyageur VIE Appendix A Items (1) on Deriviatives (2) As Adjusted NET REVENUES Revenues 481,911 (7,088) - -
Slide 15: Teekay Parent In-Chartered Conventional Tanker Fleet Rapidly Rolling Off
Teekay Parent In-Chartered Conventional Tanker Fleet Rapidly Rolling Off As at October 1, 2012 Torben Spirit Aframax TC-in(1) In-Charter Period $27,300/day, expiry 12/2012 Orkney Spirit Aframax BB-in Out-Charter Period $13,000/day, expiry 2/2013 Tandara Spirit MR BB-in(2) $44,000/day $17,100/day, ex
Slide 16: Teekay Parent and Daughters Remain Financially Strong
Teekay Parent and Daughters Remain Financially Strong Teekay Parent Includes: ($ millions, except ratios) • $508m newbuilding Total Debt1,2 1,170 advances for Knarr Cash (263) FPSO project Net Debt1,2 907 • $93m of net debt Net Debt/Total Capitalization1,2 39% associated with Voyageur FPSO Liquidity
Slide 17: Teekay Parent Sum-of-Parts Update
Teekay Parent Sum-of-Parts Update ($ millions, except per share amounts) Teekay Parent Assets Conventional Tankers 1 $175 FPSOs 1 550 Newbuildings 2 508 JVs and Other Investments 3 249 FMV of Teekay Parent Assets $1,482 Teekay Parent Net Debt 4 $(1,137) Add back: Voyageur VIE Debt $230 Equity Value
Slide 18: Q4 2012 and FY2013 Drydock Schedule
Q4 2012 and FY2013 Drydock Schedule December 31, 2012 (E) March 31, 2013 (E) June 30, 2013 (E) September 30, 2013 (E) December 31, 2013 (E) Total 2013 Total Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Vessels Offhire Offhire Offhire Offhire Offhire Offhire Drydocked Drydock
Slide 19: Teekay Parent Conventional Tanker Fleet Performance
Teekay Parent Conventional Tanker Fleet Performance Three Months Ended Sep. 30, 2012 Jun. 30, 2012 Sep. 30, 2011 Suezmax Gemini Suezmax Pool average spot TCE rate (1) 13,724 22,532 8,289 Spot revenue days (2) 405 528 481 Average time-charter rate (3) - 23,147 23,384 Time-charter revenue days - 286 3