Slide 1: Second Quarter 2012 Earnings Presentation
Second Quarter 2012 Earnings Presentation August 9, 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: tanker marke
Slide 3: Recent Highlights
Recent Highlights TEEKAY CORPORATION (PARENT) • Generated $208m of cash flow from vessel operations in Q2-121 • Q2-12 consolidated adjusted net loss attributable to Teekay of $17.0m, or $0.25 per share2, compared to adjusted net loss of $0.51 per share in Q2-113 • Completed sale of 13 conventional t
Slide 4: Focused in the Near-Term on Execution
Focused in the Near-Term on Execution • In 2011, Teekay announced approximately $3 billion of asset acquisitions and newbuilding/conversion projects • Teekay’s project management teams are focused on the efficient execution of these projects Current Projects Business Expected Completion Maersk LNG F
Slide 5: Voyageur Spirit FPSO Upgrade
Voyageur Spirit FPSO Upgrade • In November 2011, Teekay took over joint responsibility for the completion of the Voyageur Spirit FPSO upgrade project • Sail away from Nymo shipyard (Arendal, Norway) expected in August 2012 • Full contract rate with E.ON will commence following field start-up in the
Slide 6: Cidade de Itajai (ex-Tiro Sidon) Conversion
Cidade de Itajai (ex-Tiro Sidon) Conversion • Commenced $380 million FPSO unit conversion at the Jurong shipyard in Singapore following contract signing in October 2010 ○ 50% project interest sold to JV partner, Odebrecht, in February 2012 • Conversion work is nearing completion ○ Naming ceremony he
Slide 7: Knarr FPSO Newbuilding
Knarr FPSO Newbuilding • Steel cutting on $1 billion Knarr FPSO commenced in October 2011 (turret construction commenced in December 2011) • Keel laying at Samsung Shipyard in Korea began in May 2012 and the hull is expected to launch in September 2012 • Sail away is scheduled for December 2013, fol
Slide 8: Q2-2012 Consolidated Adjusted Income Statement
Q2-2012 Consolidated Adjusted Income Statement Three Months Ended Three Months Ended June 30, 2012 March 31, 2012 Reclass for (in thousands of US dollars, except per share amounts) Realized Gains/ Losses As Reported Appendix A Items (1) on Deriviatives (2) As Adjusted As Adjusted NET REVENUES Revenu
Slide 9: Q3-2012 Outlook – Teekay Consolidated
Q3-2012 Outlook – Teekay Consolidated Income Q3-2012 Statement Item Outlook » Fixed-Rate Fleet (expected changes from Q2-12): $6m decrease from FPSO fleet due to summer maintenance $6m decrease from conventional tanker fleet due to expiration of time-charter contracts $3m increase from LNG fle
Slide 10: Executing on Our Financial Strategy
Executing on Our Financial Strategy • $125m TGP NOK Bond completed in May 2012 Continued Access to Public Markets • $45m TOO Equity Private Placement completed in July 2012 • Recently completed $300m Knarr FPSO construction facility Significant Progress on Debt Financing of • Expect to upsize existi
Slide 11: Continued Focus on Growing NAV per Share
Continued Focus on Growing NAV per Share • Progressing on • Executing on • Integrating Voyageur Spirit current project Maersk LNG FPSO sale to development vessels Teekay Offshore portfolio • Continuing to • Actively reviewing • Executing on focus on new project project financings profitability of te
Slide 12: Appendix
TEEKAY CORPORATION 4 BINGES SPIRIT Appendix
Slide 13: Q2 2012 Appendix A Item Descriptions
Q2 2012 Appendix A Item Descriptions Q2 - 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: Q1 2012 Adjusted Net Income Reconciled to GAAP Net Income
Q1 2012 Adjusted Net Income Reconciled to GAAP Net Income Three Months Ended March 31, 2012 Reclass for (in thousands of US dollars, except per share amounts) Realized Gains/ Losses As Reported Appendix A Items (1) on Deriviatives (2) As Adjusted NET REVENUES Revenues 495,564 - - 495,564 Voyage expe
Slide 15: Teekay Parent In-Chartered Conventional Tanker Fleet Rapidly Rolling Off
Teekay Parent In-Chartered Conventional Tanker Fleet Rapidly Rolling Off As at July 1, 2012 Cape Bonny Suezmax TC-in $28,700/day, expiry 9/2012 Torben Spirit Aframax TC-in(1) $27,300/day, expiry 12/2012 In-Charter Period Orkney Spirit Aframax BB-in $13,000/day, expiry 2/2013 Out-Charter Period Tanda
Slide 16: Teekay Parent and Daughters Remain Financial Strong
Teekay Parent and Daughters Remain Financial Strong Teekay Parent Includes: • $375m newbuilding Total Debt1,2 1,124 advances on Knarr Cash (353) FPSO project Net Debt 1,2 771 • $67m of net debt Net Debt/Total Capitalization1,2 37% associated with Voyageur FPSO Liquidity: upgrades As at Jun. 30, 2012
Slide 17: Teekay Parent Sum-of-Parts Update
Teekay Parent Sum-of-Parts Update ($ millions, except per share amounts) Teekay Parent Assets Conventional Tankers 1 $188 FPSOs 1 550 Newbuildings 2 375 JVs and Other Investments 3 212 FMV of Teekay Parent Assets $1,325 Teekay Parent Net Debt 4 $(1,002) Add back: Voyageur VIE Debt $230 Equity Value
Slide 18: 2012 Drydock Schedule
2012 Drydock Schedule March 31, 2012 (A) June 30, 2012 (A) September 30, 2012 (E) December 31, 2012 (E) Total 2012 Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Offhire Offhire Offhire Offhire Offhire Drydocked Drydocked Drydocked Drydocked Drydocked Entity Segment Days Days
Slide 19: Teekay Parent Conventional Tanker Fleet Performance
Teekay Parent Conventional Tanker Fleet Performance Three Months Ended Jun. 30 Mar. 31 Jun. 30 2012 2012 2011 Suezmax Gemini Suezmax Pool average spot TCE rate(1) 22,532 24,847 17,461 Spot revenue days (2) 528 546 586 Average time-charter rate(3)(4) 23,147 23,434 24,464 Time-charter revenue days (3)