Slide 1: Third Quarter Earnings Presentation
Third Quarter Earnings Presentation November 5, 2010
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: Recent Highlights
Recent Highlights Investment Highlights » Q3-10 adjusted net loss attributable to Teekay of $53.3m, or $0.73 per share1 • Q3-10 results adversely affected by: • Seasonally weak spot tanker market • Higher than usual level of scheduled maintenance in offshore fleet in Q3-10; back to normal production
Slide 4: Significant Weakness in Q3 Spot Tanker Market but Potential Remains for Winter Rally
Significant Weakness in Q3 Spot Tanker Market but Potential Remains for Winter Rally » Teekay Q3-10 spot tanker rates weakened significantly after a stronger 1H 2010 • Aframax: $13,800/day (vs. 1H 2010 average of $18,800/day) • Suezmax: $18,700/day (vs. 1H 2010 average of $31,500/day) » Spot rate we
Slide 5: Higher than Usual Concentration of Offshore Scheduled Maintenance
Higher than Usual Concentration of Offshore Scheduled Maintenance Factors Affecting Q3-10 results: FPSOs Shuttle Tankers » 4 FPSO units on periodic shutdown: -$10m • 48 days unpaid offhire and 22 » Lower fleet utilization due to Revenue days offhire at reduced rate seasonal North Sea field • Related
Slide 6: Positive Developments in Each Daughter Company
Positive Developments in Each Daughter Company TEEKAY OFFSHORE PARTNERS L.P. » Signed master agreement with Statoil, initially for 7 shuttle tankers (incl. 3 newbuildings) » Acquired Cidade de Rio das Ostras FPSO and Amundsen Spirit shuttle tanker from Teekay for a total cost of $286 million » Agree
Slide 7: Positive Developments in Each Daughter Company
Positive Developments in Each Daughter Company TEEKAY LNG PARTNERS L.P. » Acquired from Exmar 50% interest in two modern LNG carriers (one with regasification capability) with 12 and 15 years remaining on fixed-rate charters, for a total cost of $70 million, net of assumed debt • Transaction closed
Slide 8: Positive Developments in Each Daughter Company
Positive Developments in Each Daughter Company TEEKAY TANKERS LTD. » Agreed to acquire 2003-built Suezmax tanker, Iskmati Spirit, and 2004-built Aframax tanker, Esther Spirit, from Teekay for a total cost of $107.5m » Entered into 50:50 JV with Wah Kwong to acquire a newbuilding VLCC scheduled for d
Slide 9: Illuminating and Realizing Teekay Parent's True Value
IlluminatingAsset Substantial and Realizing CoverageTeekay Parent’s at Teekay ParentTrue Value Teekay Parent Assets ($ millions) Conventional Tankers – Spot 1 $522 Conventional Tankers – Fixed 1 403 FPSOs 1 475 Newbuildings 2 182 OPCO (49% interest) 413 FMV of Teekay Parent Assets $1,995 Potential T
Slide 10: Q3-10 Consolidated Adjusted Income Statement
Q3-10 Consolidated Adjusted Income Statement Three Months Ended Three Months Ended September 30, 2010 June 30, 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 Reve
Slide 11: Q4-10 Outlook
Q4-10 Outlook Income Q4-10 Statement Item Outlook » Completion of North Sea field maintenance and FPSO shutdowns: +$15m to +$17m (from Q3-10) » Higher revenue days due to reduced drydock schedule: +$3m to +$5m (from Q3-10) » Foinaven annual true-up: +$15m to +$17m Net Revenues » Rio das Ostras FPSO
Slide 12: Teekay Parent Balance Sheet is a Source of Strength and Flexibility
Teekay Parent Balance Sheet is a Source of Strength and Flexibility $630m Net Debt Reduction Since Dec 31, 2009 Teekay Parent Net Debt $1,000 ($millions) Net Debt to Cap $750 Net Debt (as at Dec 31, 2009) $877.7 28% Net Debt (as at Sep 30, 2010) $623.6 25% $ Millions $500 Pro Forma Adjustments: Debt
Slide 13: Appendix
TEEKAY CORPORATION =< &
Slide 14: Q3 2010 Appendix A Item Descriptions
Q3 2010 Appendix A Item Descriptions NET VOYAGE REVENUES Revenues - Voyage expenses - Net voyage revenues - OPERATING EXPENSES Vessel operating expense 94 Unrealized gains on derivative instruments Time charter hire expense (4,698) Adjustment to the carrying value of deferred drydocking costs relate
Slide 15: Q2 2010 Adjusted Net Income Reconciled to GAAP Net Income
Q2 2010 Adjusted Net Income Reconciled to GAAP Net Income Three Months Ended June 30, 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 NET REVENUES Revenues 544,947 (29,200) (2,207) 513,540
Slide 16: Teekay Parent – 2010/11 Conventional Tanker Fleet Employment
Teekay Parent – 2010/11 Conventional Tanker Fleet Employment Dec. 31, Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31 2010E 2011E 2011E 2011E 2011E 2012E Suezmax (1) Spot revenue days 431 270 249 276 460 455 (2)(3)(4) Average time-charter rate 27,546 29,767 27,202 28,386 31,597 31,603 (4) Time-charter r
Slide 17: Teekay Parent – Q3-2010 In-chartered Fleet
Teekay Parent – Q3-2010 In-chartered Fleet Three Months Ended September 30, June 30, September 30 2010 2010 2009 Suezmax(1) Average in-charter rate 30,921 30,167 29,272 In-charter days 373 433 552 Aframax - external in-charters Average in-charter rate 24,070 25,288 28,949 In-charter days 493 693 1,1
Slide 18: Teekay Parent – 2010/11 In-chartered Fleet
Teekay Parent – 2010/11 In-chartered Fleet Dec. 31, Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31 Jun. 30 2010E 2011E 2011E 2011E 2011E 2012E 2012E Suezmax(1) Average in-charter rate 31,638 31,440 29,413 28,750 28,750 28,750 28,826 In-charter days 368 340 208 184 184 182 182 Aframax - external in-char
Slide 19: 2010/11 Drydock Schedule
2010/11 Drydock Schedule March 31, 2010 June 30, 2010 September 30, 2010* December 31, 2010 Total 2010 Total 2011 Total Total Total Total Total Total Vessels Offhire Vessels Offhire Vessels Offhire Vessels Offhire Vessels Offhire Vessels Offhire Entity Segment Drydocked Days Drydocked Days Drydocked
Slide 20: Daughter Cash Flows from Teekay Parent Common Share/Unit Ownership
Daughter Cash Flows from Teekay Parent Common Share/Unit Ownership Three Months Ended September 30, June 30, March 31, December 31, September 30, 2010 2010 2010 2009 2009 Teekay LNG Partners Distribution per common unit $0.60 $0.60 $0.60 $0.57 $0.57 Common units owned by Teekay Parent 25,208,274 25,
Slide 21: Pro Forma Net Debt Support
Pro Forma Teekay Nethas Parent Debt Support Strong Credit Statistics ($ millions) Teekay Parent Cash 449.7 Restricted cash - current - Restricted cash - long-term 74.9 Total cash 524.5 Current portion of l/t debt 69.9 Long-term debt 1,078.2 Total debt 1,148.1 Net Debt 623.6 Pro Forma Adjustments Pro