UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Date of report: October 20, 2004
TEEKAY SHIPPING CORPORATION
(Exact
name of Registrant as specified in its charter)
TK House
Bayside Executive Park
West Bay
Street & Blake Road
P.O. Box AP-59212, Nassau, Bahamas
(Address of principal executive office)
[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40- F
[Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ]
Yes No X
[Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ]
Yes No X
[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
[If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- ]
Item 1 - Information Contained in this Form 6-K Report
| Attached as Exhibit I is a copy of an announcement of Teekay Shipping Corporation (the “Company”), dated October 20, 2004. |
THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO THE FOLLOWING REGISTRATION STATEMENTS OF THE COMPANY.
• REGISTRATION STATEMENT ON FORM F-3 (NO. 33-97746) FILED WITH THE SEC ON OCTOBER 4, 1995;
• REGISTRATION
STATEMENT ON FORM S-8 (NO. 333-42434) FILED WITH THE SEC ON JULY 28, 2000; AND
• REGISTRATION STATEMENT
ON FORM F-3 (NO. 333-102594) FILED WITH THE SEC ON JANUARY 17, 2003.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: October 20, 2004 | TEEKAY SHIPPING CORPORATION By: /s/ Peter Evensen Peter Evensen Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
EXHIBIT I
 |
TEEKAY SHIPPING CORPORATION TK House, Bayside Executive Park, West Bay Street & Blake Road P.O. Box AP-59212, Nassau, Bahamas |
EARNINGS RELEASE
TEEKAY REPORTS HIGHEST EVER
QUARTERLY AND YEAR TO DATE EARNINGS
3rd Quarter Highlights
- Highest ever quarterly net income of $245.3 million, or $2.77 per share
- Net income includes gains of $143.6 million from sale of assets and non-cash charges of $9.9 million from unrealized foreign exchange-related items
- Increased quarterly dividend by 10 percent to $0.1375 per share
Nassau, The Bahamas, October 20, 2004 — Teekay Shipping Corporation today reported net income of $245.3 million, or $2.77 per share, for the quarter ended September 30, 2004, compared to net income of $20.3 million, or $0.25 per share, for the quarter ended September 30, 2003. The results for the third quarter of 2004 included a gain of $90.1 million from the sale of the Company’s investment in A/S Dampskibsslskabet Torm (Torm), gains of $53.5 million primarily from the sale of eight older vessels during the quarter, a deferred income tax expense of $4.3 million relating to unrealized foreign exchange gains, and an unrealized foreign currency translation loss of $5.6 million relating to long-term debt denominated in Euros. The results for the quarter ended September 30, 2003 included $5.8 million in non-cash charges relating to five vessels sold during the third quarter of 2003 and $4.0 million in deferred income tax expense relating to unrealized foreign exchange gains. Net voyage revenues(1) for the third quarter of 2004 were $414.1 million, compared to $274.9 million for the same period in 2003, and income from vessel operations increased to $194.7 million from $43.8 million.
The higher results for the current quarter are primarily due to the increase in spot tanker charter rates with Teekay’s spot Aframax fleet averaging $31,080 per calendar-ship-day in the third quarter of 2004, compared to $18,318 per calendar-ship-day in the same period last year. In addition, the most recent quarter’s results reflect the continued growth of the Company’s fixed-rate segments both through the delivery of newbuildings onto long-term contracts and the acquisition of Naviera F. Tapias S.A. (renamed Teekay Shipping Spain S.A.) on April 30, 2004, partially offset by the sale of certain older spot vessels over the past 12 months.
Net income for the nine months ended September 30, 2004 was $532.9 million, or $6.12 per share, compared to $170.8 million, or $2.11 per share, for the same period last year. The results for the nine months ended September 30, 2004 included a gain of $93.2 million from the sale of marketable securities, gains of $54.6 million primarily from the sale of eight older vessels and an unrealized foreign currency translation loss of $10.8 million relating to long-term debt denominated in Euros. The results for the nine months ended September 30, 2003 included $36.3 million in non-cash charges relating to the sale of 12 older vessels, a $4.9 million write-down in the carrying value of certain marketable securities, and $3.0 million in deferred income tax expense relating to unrealized foreign exchange gains. Net voyage revenues(1) for the nine months ended September 30, 2004 were $1,230.6 million compared to $840.8 million for the same period last year, while income from vessel operations increased to $525.4 million from $249.1 million.
(1) Net voyage revenues represents voyage revenues less voyage expenses. Net voyage revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. See the Company’s Web site at www.teekay.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.
Operating Results
The following table highlights certain financial information of Teekay’s three main segments, the spot tanker segment, the fixed-rate tanker segment and the Company’s new fixed-rate liquefied natural gas (LNG) segment (see the “Teekay Fleet” section of this release for further details):
--------------------------------- ---------------------------------------------------- ----------------------------------------
Three Months Ended Three Months Ended
September 30, 2004 September 30, 2003
(unaudited) (unaudited)
Fixed- Fixed- Fixed-
Spot Rate Rate Spot Rate
Tanker Tanker LNG Tanker Tanker
(in thousands of U.S. dollars) Segment Segment Segment Total Segment Segment Total
--------------------------------- ------------ ------------- ------------ ------------ ------------- ------------ -------------
Net voyage revenues 237,843 159,033 17,270 414,146 150,471 124,387 274,858
Vessel operating expenses 23,457 31,635 3,107 58,199 31,793 23,488 55,281
Time-charter hire expense 71,346 49,552 - 120,898 50,112 45,843 95,955
Depreciation and amortization 24,913 34,739 5,150 64,802 27,004 22,881 49,885
Cash flow from vessel
operations* 129,460 63,634 12,905 205,999 53,727 45,777 99,504
--------------------------------- ------------ ------------- ------------ ------------ ------------- ------------ -------------
* Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense and vessel write-downs/(gain) loss on sale of vessels. Cash flow from vessel operations is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. See the Company’s Web site at www.teekay.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.
Fixed-Rate Tanker Segment
For the third quarter of 2004, cash flow from vessel operations from the Company’s fixed-rate tanker segment increased to $63.6 million from $45.8 million for the third quarter of 2003, primarily due to the addition of five conventional tankers on charter to ConocoPhillips and five fixed-rate Suezmax tankers acquired as part of the Tapias transaction.
Fixed-Rate LNG Segment
The LNG segment operating results for the third quarter of 2004 reflect Teekay Shipping Spain’s three existing LNG carriers which generated $12.9 million of cash flow from vessel operations. During the third quarter, the Company took delivery of its third newbuilding LNG carrier, which commenced service under a 25-year charter contract, and the Company expects to take delivery of a fourth newbuilding LNG carrier in December 2004, which will commence service under a 20-year charter contract upon delivery. Teekay had no LNG carriers prior to its acquisition of Tapias in April 2004.
Spot Tanker Segment
Cash flow from vessel operations from the Company’s spot tanker segment increased to $129.5 million in the third quarter of 2004 from $53.7 million in the third quarter of 2003, primarily due to the significant increase in average spot tanker charter rates as well as the delivery of newbuildings and additional chartered-in vessels, partially offset by the sale of a number of older vessels during the past 12 months. On a net basis, these fleet changes reduced the total number of calendar-ship-days in the Company’s spot tanker segment by 240 days to 7,677 days in the third quarter of 2004, compared to 7,917 days in the third quarter of 2003.
The following table highlights the operating performance of the Company’s spot tanker segment measured in net voyage revenues per calendar-ship-day, or time-charter equivalent (TCE).
---------------------------------------------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30, September 30,
2004 2004 2003 2004 2003
---------------------------------------------------------------------------------------------------------------------
Spot Tanker Segment
Very Large Crude Carrier Fleet
Calendar-Ship Days 210 273 277 756 543
TCE per calendar-ship-day $75,467 $54,788 $34,018 $66,409 $44,333
Suezmax Tanker Fleet
Calendar-Ship Days 620 647 644 1,828 1,256
TCE per calendar-ship-day $45,616 $36,879 $23,793 $48,478 $34,214
Aframax Tanker Fleet
Calendar-Ship Days 5,426 5,152 5,477 15,700 16,234
TCE per calendar-ship-day $31,080 $27,567 $18,318 $32,916 $24,743
Oil/Bulk/Ore Fleet
Calendar-Ship Days - - 625 - 1,991
TCE per calendar-ship-day - - $13,382 - $16,212
Large/Medium-Size Product
Tanker Fleet
Calendar-Ship Days 558 503 184 1,456 361
TCE per calendar-ship-day $23,484 $20,332 $21,707 $23,479 $32,089
Small Product Tanker Fleet
Calendar-Ship Days 863 902 710 2,612 1,670
TCE per calendar-ship-day $13,896 $13,188 $11,462 $13,526 $11,860
---------------------------------------------------------------------------------------------------------------------
Tanker Market Overview
During the third quarter of 2004, tanker freight rates increased further from the already firm levels experienced in the prior quarter. This was due primarily to increased oil production in response to global oil demand growth, led by Asia and North America. Subsequent to the end of the quarter, tanker rates have surged to levels not experienced in the last three decades due to the cumulative effect of positive tanker market fundamentals.
Global oil demand, an underlying driver of tanker demand, continued to be strong, averaging 82.0 million barrels per day (mb/d) during the third quarter of 2004, a 0.9 mb/d rise from the previous quarter and 2.8 mb/d higher than the third quarter of 2003. Increased oil consumption in China and North America, combined with higher oil-based electricity generation in Japan as a result of safety-related nuclear reactor shutdowns, were among the key factors driving growth in global oil demand. On October 12, 2004, the International Energy Agency (IEA) raised its forecast for 2004 global oil demand to 82.4 mb/d, representing the highest rate of growth since the 1970s. The IEA is forecasting a further increase in global oil demand for 2005 of 1.5 mb/d, or 1.8%.
Global oil supply grew to 83.6 mb/d in the third quarter of 2004, an increase of 1.2 mb/d over the prior quarter, and 4.2 mb/d higher than the third quarter of 2003. Continuing a recent trend, tanker tonne-mile demand growth was further amplified as all of the increase in oil production was from long-haul OPEC sources. OPEC production rose by 1.3 mb/d during the quarter, while non-OPEC production declined slightly due to scheduled field maintenance in the North Sea and hurricanes in the United States. At its September 15, 2004 meeting, OPEC (excluding Iraq) raised its oil production quota by 1.0 mb/d to 27.0 mb/d, effective on November 1, 2004, although actual current OPEC production remains above this level.
The size of the world tanker fleet rose to 330.0 million deadweight tonnes (mdwt) as of September 30, 2004, up 1.5% from the end of the previous quarter. Deletions totaled 1.4 mdwt in the third quarter of 2004, down from 2.8 mdwt in the previous quarter. Deliveries of tanker newbuildings during the third quarter of 2004 totaled 6.2 mdwt compared to the 6.6 mdwt in the previous quarter.
As of September 30, 2004, the world tanker orderbook stood at 86.8 mdwt, or 26.3% of the world tanker fleet, the same percentage as the end of the previous quarter.
Teekay Fleet
As at September 30, 2004, Teekay’s fleet (excluding vessels managed for third parties) consisted of 161 vessels, including 52 chartered-in vessels and 17 newbuildings on order. During the third quarter of 2004, the Company sold and delivered eight tankers to new owners: the PETROSKALD (1982-built Shuttle tanker), the SELETAR SPIRIT (1988-built Aframax tanker), the SEMAKAU SPIRIT (1988-built Aframax tanker), the SENTOSA SPIRIT (1989-built Aframax tanker) and four other vessels mentioned in the previous quarter’s earnings release. In addition, the Company took delivery of three newbuildings during the third quarter of 2004: the ESTHER SPIRIT (Aframax tanker) and the KILIMANJARO SPIRIT (Aframax tanker), which are trading in the Company’s spot tanker segment; and the GALICIA SPIRIT (LNG carrier), which commenced service under a 25-year fixed-rate charter contract to Union Fenosa Gas S.A.
The following table summarizes the Teekay fleet as at September 30, 2004:
----------------------------------------------------------------------------------------------------------------------------
Number of Vessels (1)
-----------------------------------------------------------------------
Owned Chartered-in Newbuildings
Vessels Vessels on Order Total
----------------------------------------------------------------------------------------------------------------------------
Spot Tanker Segment:
Very Large Crude Carriers - 2 - 2
Suezmax Tankers 2 4 1 7
Aframax Tankers 40 17 5 62
Large/Medium Product Tankers - 6 3 9
Small Product Tankers - 10 - 10
----------------------------------------------------------------------------------------------------------------------------
Total Spot Tanker Segment 42 39 9 90
============================================================================================================================
Fixed-Rate Tanker Segment:
Shuttle Tankers (2) 29 12 - 41
Conventional Tankers 13 - 4 17
Floating Storage & Offtake (FSO) Units (3) 4 - - 4
LPG / Methanol Carriers 1 1 - 2
----------------------------------------------------------------------------------------------------------------------------
Total Fixed-Rate Tanker Segment 47 13 4 64
----------------------------------------------------------------------------------------------------------------------------
Fixed-Rate LNG Segment 3 - 4 7
----------------------------------------------------------------------------------------------------------------------------
Total 92 52 17 161
============================================================================================================================
(1)
Does not include vessels managed on behalf of third parties.
(2)
Includes seven shuttle tankers of which the Company’s ownership interests range from 50%
to 70.25%.
(3)
Includes one FSO unit in which the Company’s ownership
interest is 89%.
During the third quarter of 2004, as part of its ongoing fleet renewal program, the Company entered into agreements to sell an additional five older vessels: the LEON SPIRIT (1989-built Suezmax tanker) and the SEVILLA SPIRIT (1991-built Suezmax tanker), which are both operating in the Company’s fixed-rate tanker segment; and the KYUSHU SPIRIT (1991-built Aframax tanker), the VANCOUVER SPIRIT (1992-built Aframax oil/bulk/ore carrier) and the VICTORIA SPIRIT (1993-built Aframax oil/bulk/ore carrier), which are operating in the Company’s spot tanker segment. Expected total gross proceeds from the sale of these five vessels is approximately $145 million. These vessels are scheduled to deliver to the buyers during the fourth quarter, at which time the Company expects to record a gain of approximately $11 million relating to the sale of these vessels.
Liquidity and Capital Expenditures
As at September 30, 2004, the Company had total liquidity of $874.7 million, comprising $308.0 million in cash and cash equivalents and $566.7 million in undrawn medium-term revolving credit facilities.
As at September, 2004, the Company had approximately $1,067.0 million in remaining capital commitments relating to its 17 newbuildings on order. Of this, approximately $241 million is due during the fourth quarter of 2004, $378 million in 2005, $256 million in 2006 and $192 million due in 2007 and early 2008. For the remaining capital commitments, long-term financing arrangements totaling approximately $1,005.9 million exist for 14 of the 17 newbuildings on order.
Dividend Increase
On September 30, 2004, the Company announced that its Board of Directors had voted to increase its quarterly dividend by 10 percent to $0.1375 per share. This dividend increase represents the second consecutive year in which the Company has increased its dividend, resulting in a 28% increase over two years.
About Teekay
Teekay Shipping Corporation transports more than 10 percent of the world’s sea-borne oil and has expanded into the liquefied natural gas shipping sector. With a fleet of over 160 tankers, offices in 14 countries and approximately 5,500 seagoing and shore-based employees, the Company provides a comprehensive set of marine services to the world’s leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. Teekay’s reputation for safety, quality and innovation has earned it a position with its customers as the premier marine midstream company.
Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.
Earnings Conference Call
The Company plans to host a conference call at 11:00 a.m. EDT (8:00 a.m. PDT) on October 21, 2004, to discuss the results for the quarter. All shareholders and interested parties are invited to listen to the live conference call and view the Company’s earnings presentation through Teekay’s Web site at www.teekay.com. The presentation will be available on the web site prior to the conference call. A recording of the call will be available until October 28, 2004 by dialing (719) 457-0820, access code 833407, or via the Company’s web site until November 21, 2004.
For Investor Relations
enquiries contact:
Scott Gayton
Tel: +1 (604) 844-6654
For other Media
enquiries contact:
Jennifer Horner
Tel: +1 (604) 844-6631
Web site: www.teekay.com
---------------------------------------------------------------------------------------------------------------------------------
TEEKAY SHIPPING CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(in thousands of U.S. dollars, except share and per share data)
---------------------------------------------------------------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30, September 30,
2004 2004 2003 2004 2003
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
VOYAGE REVENUES 520,612 477,622 380,544 1,549,685 1,125,047
-------------------------------------- ---------------- ----------------- ----------------- ----------------- -----------------
OPERATING EXPENSES
Voyage expenses 106,466 108,708 105,686 319,058 284,207
Vessel operating expenses 58,199 53,765 55,281 160,876 153,457
Time-charter hire expense 120,898 106,574 95,955 336,137 202,349
Depreciation and amortization 64,802 60,846 49,885 179,262 138,790
General and administrative 29,050 25,816 23,461 82,491 58,785
Vessel write-downs/(gain) loss on
sale of vessels (53,512) (450) 5,843 (54,565) 36,341
Restructuring charge - 240 657 1,002 1,969
-------------------------------------- ---------------- ----------------- ----------------- ----------------- -----------------
325,903 355,499 336,768 1,024,261 875,898
-------------------------------------- ---------------- ----------------- ----------------- ----------------- -----------------
Income from vessel operations 194,709 122,123 43,776 525,424 249,149
-------------------------------------- ---------------- ----------------- ----------------- ----------------- -----------------
OTHER ITEMS
Interest expense (35,225) (30,672) (21,827) (87,460) (57,913)
Interest income 5,900 4,883 799 12,038 2,932
Income tax expense (8,066) (6,086) (6,000) (16,301) (23,186)
Equity income from joint ventures 2,535 3,288 1,357 7,659 3,753
Gain (loss) on sale of marketable
securities 90,070 2,232 (28) 93,175 142
Write-down of marketable securities - - - - (4,910)
Other - net (4,591) 2,775 2,250 (1,651) 815
------------------------------------- ---------------- ----------------- ----------------- ----------------- -----------------
50,623 (23,580) (23,449) 7,460 (78,367)
-------------------------------------- ---------------- ----------------- ----------------- ----------------- -----------------
Net income 245,332 98,543 20,327 532,884 170,782
====================================== ================ ================= ================= ================= =================
Earnings per common share
- Basic $2.94 $1.19 $0.25 $6.46 $2.14
- Diluted $2.77 $1.13 $0.25 $6.12 $2.11
-------------------------------------- ---------------- ----------------- ----------------- ----------------- -----------------
Weighted-average number of common
shares outstanding
- Basic 83,317,200 82,603,379 80,085,404 82,516,723 79,741,480
- Diluted * 88,718,531 87,340,951 81,884,344 87,110,068 81,120,206
====================================== ================ ================= ================= ================= =================
*Reflects the effect of outstanding stock options and the $143.75 million mandatory convertible preferred PEPS units, computed using the treasury stock method
------------------------------------------------------------------------------------------------------------------------
TEEKAY SHIPPING CORPORATION
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
------------------------------------------------------------------------------------------------------------------------
As at September 30, As at December 31,
2004 2003
(unaudited)
ASSETS
Cash and cash equivalents 308,034 292,284
Other current assets 205,626 188,249
Restricted cash - current 76,361 -
Marketable securities - long-term - 95,511
Restricted cash - long-term 337,345 -
Vessels and equipment 3,300,619 2,424,204
Advances on newbuilding contracts 240,317 150,656
Other assets 212,531 187,798
Intangible assets 282,217 118,588
Goodwill 176,220 130,754
-------------------------------------------------------------------- ------------------------- -------------------------
Total Assets 5,139,270 3,588,044
==================================================================== ========================= =========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities 154,873 171,411
Current portion of long-term debt 199,395 103,221
Long-term debt 2,447,895 1,533,537
Other long-term liabilities 245,798 112,726
Minority interest 14,563 15,322
Stockholders' equity 2,076,746 1,651,827
-------------------------------------------------------------------- ------------------------- -------------------------
Total Liabilities and Stockholders' Equity 5,139,270 3,588,044
==================================================================== ========================= =========================
------------------------------------------------------------------------------------------------------------------------
TEEKAY SHIPPING CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
------------------------------------------------------------------------------------------------------------------------
Nine Months Ended
September 30,
2004 2003
(unaudited) (unaudited)
OPERATING ACTIVITIES
-------------------------------------------------------------------- ------------------------- -------------------------
Net cash flow provided by operating activities 520,224 330,627
-------------------------------------------------------------------- ------------------------- -------------------------
FINANCING ACTIVITIES
Net proceeds from long-term debt 1,469,670 1,679,297
Scheduled repayments of long-term debt (89,237) (49,182)
Prepayments of long-term debt (1,462,439) (1,023,000)
Other 5,814 (5,909)
-------------------------------------------------------------------- ------------------------- -------------------------
Net cash flow provided by (used for) financing activities (76,192) 601,206
-------------------------------------------------------------------- ------------------------- -------------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (465,227) (227,070)
Expenditures for the purchase of Naviera F. Tapias S.A. (286,854) -
Expenditures for the purchase of Navion AS - (704,734)
Proceeds from sale of vessels and equipment 220,917 91,080
Proceeds from sale of available-for-sale securities 135,357 2,954
Other (32,475) (42,737)
-------------------------------------------------------------------- ------------------------- -------------------------
Net cash flow used for investing activities (428,282) (880,507)
-------------------------------------------------------------------- ------------------------- -------------------------
Increase in cash and cash equivalents 15,750 51,326
Cash and cash equivalents, beginning of the period 292,284 284,625
-------------------------------------------------------------------- ------------------------- -------------------------
Cash and cash equivalents, end of the period 308,034 335,951
==================================================================== ========================= =========================
--------------------------------------------------------------------------------------------------------------------------
TEEKAY SHIPPING CORPORATION
APPENDIX A - SUPPLEMENTAL INFORMATION
(in thousands of U.S. dollars)
--------------------------------------------------------------------------------------------------------------------------
Three Months Ended September 30, 2004
(unaudited)
Fixed-Rate
Spot Tanker Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Net voyage revenues(1) 237,843 159,033 17,270 414,146
Vessel operating expenses 23,457 31,635 3,107 58,199
Time-charter hire expense 71,346 49,552 - 120,898
Depreciation and amortization 24,913 34,739 5,150 64,802
General and administrative 13,580 14,212 1,258 29,050
Vessel write-downs/(gain) loss
on sale of vessels (49,821) (3,691) - (53,512)
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Income from vessel operations 154,368 32,586 7,755 194,709
================================== ======================== ===================== ==================== ===================
Three Months Ended June 30, 2004
(unaudited)
Fixed-Rate
Spot Tanker Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Net voyage revenues(1) 202,965 158,065 7,884 368,914
Vessel operating expenses 23,752 28,376 1,637 53,765
Time-charter hire expense 60,369 46,205 - 106,574
Depreciation and amortization 25,976 32,493 2,377 60,846
General and administrative 12,081 12,994 741 25,816
Vessel write-downs/(gain) loss
on sale of vessels (450) - - (450)
Restructuring charge 240 - - 240
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Income from vessel operations 80,997 37,997 3,129 122,123
================================== ======================== ===================== ==================== ===================
Three Months Ended September 30, 2003
(unaudited)
Fixed-Rate
Spot Tanker Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Net voyage revenues(1) 150,471 124,387 - 274,858
Vessel operating expenses 31,793 23,488 - 55,281
Time-charter hire expense 50,112 45,843 - 95,955
Depreciation and amortization 27,004 22,881 - 49,885
General and administrative 14,489 8,972 - 23,461
Vessel write-downs/(gain) loss
on sale of vessels 5,843 - - 5,843
Restructuring charge 350 307 - 657
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Income from vessel operations 20,880 22,896 - 43,776
================================== ======================== ===================== ==================== ===================
--------------------------------------------------------------------------------------------------------------------------
TEEKAY SHIPPING CORPORATION
APPENDIX A - SUPPLEMENTAL INFORMATION CONTINUED
(in thousands of U.S. dollars)
--------------------------------------------------------------------------------------------------------------------------
Nine Months Ended September 30, 2004
(unaudited)
Fixed-Rate
Spot Tanker Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Net voyage revenues(1) 728,889 476,584 25,154 1,230,627
Vessel operating expenses 70,663 85,469 4,744 160,876
Time-charter hire expense 191,271 144,866 - 336,137
Depreciation and amortization 75,775 95,960 7,527 179,262
General and administrative 38,679 41,813 1,999 82,491
Vessel write-downs/(gain) loss
on sale of vessels (50,874) (3,691) - (54,565)
Restructuring charge 1,002 - - 1,002
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Income from vessel operations 402,373 112,167 10,884 525,424
================================== ======================== ===================== ==================== ===================
Nine Months Ended September 30, 2003
(unaudited)
Fixed-Rate
Spot Tanker Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Net voyage revenues(1) 546,125 294,715 - 840,840
Vessel operating expenses 95,821 57,636 - 153,457
Time-charter hire expense 113,851 88,498 - 202,349
Depreciation and amortization 81,671 57,119 - 138,790
General and administrative 39,071 19,714 - 58,785
Vessel write-downs/(gain) loss
on sale of vessels 36,341 - - 36,341
Restructuring charge 350 1,619 - 1,969
---------------------------------- ------------------------ --------------------- -------------------- -------------------
Income from vessel operations 179,020 70,129 - 249,149
================================== ======================== ===================== ==================== ===================
(1) Net voyage revenues represents voyage revenues less voyage expenses. Net voyage revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. See the Company’s Web site at www.teekay.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.
FORWARD LOOKING STATEMENTS
This release 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’s future growth prospects; tanker market fundamentals, including the balance of supply and demand in the tanker market and sources of incremental oil production, and spot tanker charter rates; newbuilding delivery dates and the commencement of service under long-term contracts; the Company’s future capital expenditure commitments and the financing requirements for such commitments; and proceeds and gain in the fourth quarter of 2004 relating to the sale of five of its older vessels. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in production of or demand for oil, petroleum products and LNG, either generally or in particular regions; greater or less than anticipated levels of tanker newbuilding orders or greater or less than anticipated rates of tanker scrapping; changes in trading patterns significantly affecting overall tanker tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates; changes in the offshore production of oil; the potential for early termination of long-term contracts and inability of the Company to renew or replace long-term contracts; shipyard production delays; the Company’s future capital expenditure requirements; and other factors discussed in Teekay’s filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2003. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.
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TEEKAY SHIPPING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands of U.S. dollars)
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Three Months Ended September 30, 2004
(unaudited)
Fixed-Rate
Spot Tanker Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Income from vessel operations 154,368 32,586 7,755 194,709
Depreciation and amortization 24,913 34,739 5,150 64,802
Vessel write-downs/(gain) loss
on sale of vessels (49,821) (3,691) - (53,512)
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Cash flow from vessel operations (1) 129,460 63,634 12,905 205,999
================================== ======================== ===================== ==================== ====================
Three Months Ended September 30, 2003
(unaudited)
Fixed-Rate
Spot Tanker Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Income from vessel operations 20,880 22,896 - 43,776
Depreciation and amortization 27,004 22,881 - 49,885
Vessel write-downs/(gain) loss
on sale of vessels 5,843 - - 5,843
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Cash flow from vessel operations(1) 53,727 45,777 - 99,504
================================== ======================== ===================== ==================== ====================
| (1) | Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense and vessel write-down/(gain) loss on sale of vessels. Cash flow from vessel operations is included because certain investors use this data to measure the financial performance of shipping companies. Cash flow from vessel operations is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Company’s performance required by accounting principles generally accepted in the United States. |
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TEEKAY SHIPPING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES CONTINUED
(in thousands of U.S. dollars)
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Three Months Ended September 30, 2004
(unaudited)
Fixed-Rate
Spot Tanker Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Voyage revenues 326,287 177,000 17,325 520,612
Voyage expenses 88,444 17,967 55 106,466
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Net voyage revenues (2) 237,843 159,033 17,270 414,146
================================== ======================== ===================== ==================== ====================
Three Months Ended September 30, 2003
(unaudited)
Fixed-Rate
Spot Tanker Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Voyage revenues 240,852 139,692 - 380,544
Voyage expenses 90,381 15,305 - 105,686
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Net voyage revenues (2) 150,471 124,387 - 274,858
================================== ======================== ===================== ==================== ====================
Nine Months Ended September 30, 2004
(unaudited)
Fixed-Rate
Spot Tanker Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Voyage revenues 992,831 531,530 25,324 1,549,685
Voyage expenses 263,942 54,142 170 319,058
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Net voyage revenues (2) 728,889 476,584 25,154 1,230,627
================================== ======================== ===================== ==================== ====================
Nine Months Ended September 30, 2003
(unaudited)
Fixed-Rate
Spot Tanker Tanker Fixed-Rate
Segment Segment LNG Segment Total
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Voyage revenues 796,933 328,112 - 1,125,047
Voyage expenses 250,810 33,397 - 284,207
---------------------------------- ------------------------ --------------------- -------------------- --------------------
Net voyage revenues (2) 546,125 294,715 - 840,840
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| (2) | Net voyage revenues represents voyage revenues less voyage expenses, which comprise all expenses relating to certain voyages, including bunker fuel expenses, port fees, canal tolls and brokerage commissions. Net voyage revenues is included because certain investors use this data to measure the financial performance of shipping companies. Net voyage revenues is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to voyage revenues or any other indicator of the Company’s performance required by accounting principles generally accepted in the United States. |