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TEEKAY CORP LTD — Interim / Quarterly Report 2003
Oct 24, 2003
32541_ffr_2003-10-24_a00307fd-727d-4e43-858d-e657867a230d.zip
Interim / Quarterly Report
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6-K 1 form6k_102203.htm 6-K ER 3RD QUARTER SEPT 30, 2003 TEEKAY SHIPPING CORPORATION
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 22, 2003 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 22, 2003.
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 22, 2003 TEEKAY SHIPPING CORPORATION By: /s/ Peter Evensen Peter Evensen Senior 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
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EARNINGS RELEASE MARKER FORMAT-SHEET="Page Rule Single" FSL="Default"
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TEEKAY SHIPPING CORPORATION REPORTS THIRD QUARTER RESULTS MARKER FORMAT-SHEET="Page Rule Single" FSL="Default"
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3 rd Quarter Highlights
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- Net income before non-cash charges of $30.2 million, or $0.74 per share
- EBITDA of $99.5 million, of which $45.8 million was from long-term fixed-rate contracts
- Increased quarterly dividend by 16 percent to $0.25 per share
- Concluded several strategic transactions
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Nassau, The Bahamas, October 22, 2003 Teekay Shipping Corporation today reported net income of $20.3 million, or $0.50 per share, for the quarter ended September 30, 2003, compared to net income of $643,000, or $0.02 per share, for the quarter ended September 30, 2002. The results for the quarter ended September 30, 2003 include $5.8 million, or $0.14 per share, in non-cash charges relating to five vessels sold during the third quarter and $4.0 million, or $0.10 per share, in deferred income tax expense relating to unrealized foreign exchange gains. Excluding these non-cash charges, the Company would have reported net income of $30.2 million, or $0.74 per share, for the quarter ended September 30, 2003. Net voyage revenues for the quarter were $274.9 million, compared to $122.8 million recorded for the same period in 2002, while income from vessel operations increased to $49.6 million from $15.3 million. The results for the current quarter reflect primarily the increase in spot tanker charter rates which averaged $18,318 per day in the third quarter of 2003, compared to $13,833 per day in the same period last year for Teekays Aframax spot fleet, as well as the inclusion of the results of the Companys acquisition of Navion AS in April 2003, which added a further 49 vessels to the spot and fixed-rate segments.
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Net income for the nine months ended September 30, 2003 was $170.8 million, or $4.21 per share, compared to $20.3 million, or $0.50 per share, for the same period last year. The results for the nine months ended September 30, 2003 included $36.3 million, or $0.90 per share, in non-cash charges relating to the sale of 12 vessels, $3.0 million, or $0.07 per share, in deferred income tax expense relating to unrealized foreign exchange gains, and a $4.9 million, or $0.12 per share, write-down in the carrying value of certain marketable securities. Excluding these non-cash charges, net income for the nine months ended September 30, 2003 would have been $215.0 million, or $5.30 per share. Net voyage revenues for the nine months ended September 30, 2003 were $840.8 million, compared to $388.7 million for the same period last year, while income from vessel operations increased to $285.5 million from $70.7 million. The results for the first nine months of 2003 compared to the same period last year mainly reflects the inclusion of two quarters of Navions results and an increase in Teekays average Aframax spot rates from $15,959 per day in the first nine months of 2002 to $24,743 per day in the first nine months of 2003.
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During the past quarter, Teekay concluded several strategic transactions which demonstrate the strength of the Companys integrated franchise in the shuttle tanker, floating storage and conventional tanker businesses:
- Secured 13-year fixed-rate charter contracts to provide two Suezmax shuttle tankers to Transpetro.
- Acquired Fortum Oyjs North Sea shuttle tanker activities.
- Secured a minimum 10-year fixed-rate contract to provide a Floating Storage and Offtake (FSO) unit to Unocal Thailand, which will involve the conversion of one of Teekays existing single hull conventional tankers.
- Acquired 50 percent of Skaugen Petro Trans (SPT), the leading company in the business of specialized ship-to-ship transfers (lightering) of crude oil in the Gulf of Mexico. Lightering is a natural extension of Teekays existing Aframax franchise and the backing of Teekay will allow SPT to expand into geographic regions beyond the Gulf of Mexico.
- Increased Teekays commitment to the product tanker market by declaring options to upgrade two of its Aframax newbuildings scheduled for delivery in 2005, allowing them to trade as large product tankers.
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During the past 12 months, the Company has extensively renewed its fleet by acquiring and/or taking delivery of 21 new double hull tankers and selling 16 older non-double hull tankers. The average age of Teekays owned and in-chartered fleet has declined from approximately 10 years at the beginning of 2003, to the current age of approximately 7 years and over 75% of Teekays fleet consists of double hull vessels.
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In July 2003, the Company purchased a 16 percent stake in A/S Dampskibsselskabet TORM, a leading operator of product tankers, for $37.3 million. The market value of this investment as at September 30, 2003 was $60.2 million.
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Operating Results
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The following table highlights certain financial information of the Companys two main segments, the spot tanker segment and the fixed-rate segment (see Teekay Fleet section for a breakdown of the fleet composition):
| (in thousands of U.S. dollars) | Three Months Ended September 30, 2003 (unaudited) — Spot Tanker Segment | Fixed-Rate Segment | Total | Three Months Ended September 30, 2002 (unaudited) — Spot Tanker Segment | Fixed-Rate Segment | Total |
|---|---|---|---|---|---|---|
| Net voyage revenues | 150,471 | 124,387 | 274,858 | 86,691 | 36,070 | 122,761 |
| Vessel operating expenses | 31,793 | 23,488 | 55,281 | 33,014 | 11,351 | 44,365 |
| Time-charter hire expense | 50,112 | 45,843 | 95,955 | 11,430 | -- | 11,430 |
| Depreciation and amortization | 27,004 | 22,881 | 49,885 | 26,454 | 10,841 | 37,295 |
| EBITDA | 53,727 | 45,777 | 99,504 | 30,711 | 21,925 | 52,636 |
| Percentage of total EBITDA | 54% | 46% | 100% | 58% | 42% | 100% |
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Fixed-Rate Segment
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During the past few years, the Companys fixed-rate segment has grown significantly, particularly with the recent acquisition of Navion AS in April 2003.
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For the quarter ended September 30, 2003, EBITDA from the Companys fixed-rate segment increased to $45.8 million from $21.9 million in the third quarter of 2002, primarily due to the inclusion of the results of Navions shuttle tanker operations. However, EBITDA from the fixed-rate segment in the third quarter was lower compared with EBITDA of $56.2 million for the quarter ended June 30, 2003, primarily as a result of lower shuttle tanker utilization caused by scheduled seasonal maintenance of oil production facilities in the North Sea.
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During the third quarter of 2003, the Company took further steps to grow its fixed-rate segment, which it expects will provide approximately $25 million in additional annualized operating cash flow:
- In August 2003, the Company entered into an agreement to provide an FSO unit to Unocal Thailand for a minimum period of 10 years. Teekays 1988-built Aframax tanker, the NAMSAN SPIRIT, will undergo conversion in preparation for delivery to Unocal in April 2004. Operating as an FSO, this vessels economic life will be extended for up to an additional nine years under this contract as compared to the EU phase-out date for single hull conventional tankers.
- In September 2003, the Company secured a 13-year fixed-rate charter contract to provide two newbuilding Suezmax shuttle tankers to Petrobras Transporte S.A. (Transpetro). In connection with this contract, Teekay entered into agreements to purchase two Suezmax tanker newbuildings, scheduled for delivery during the first half of 2004. These vessels will undergo extensive conversion before commencing service in Brazil under bareboat charter contracts during the third quarter of 2004.
- In September 2003, the Company agreed to acquire all of the North Sea shuttle tanker activities of Fortum Oyj, the leading energy company in Finland, consisting of two COAs and a 1992-built double hull Aframax shuttle tanker.
In September 2003, the Company took delivery of the first two of five newbuilding tankers on 12-year fixed-rate charter contracts to ConocoPhillips, with the remaining three vessels scheduled for delivery in the fourth quarter of 2003 and early 2004.
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Upon the commencement of the contracts mentioned above, the Company expects the fixed-rate segment to generate annualized operating cash flow of approximately $285 million by the fourth quarter of 2004.
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Spot Tanker Segment
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The following table highlights the net voyage revenue per calendar-ship-day, or time-charter equivalent (TCE), performance of the Companys spot tanker segment:
| Three Months Ended — September 30, 2003 | June 30, 2003 | September 30, 2002 | Nine Months Ended — September 30, 2003 | September 30, 2002 | |
|---|---|---|---|---|---|
| (unaudited) | (unaudited) | ||||
| Spot Tanker Segment | |||||
| VLCC Fleet | |||||
| Calendar Days | 277 | 176 | 92 | 543 | 273 |
| TCE per calendar-ship-day | $34,018 | $43,261 | $10,302 | $44,333 | $11,489 |
| Suezmax Fleet | |||||
| Calendar Days | 644 | 612 | -- | 1,256 | -- |
| TCE per calendar-ship-day | $23,793 | $45,180 | -- | $34,214 | -- |
| Aframax Fleet | |||||
| Calendar Days | 5,477 | 5,597 | 5,430 | 16,234 | 15,081 |
| TCE per calendar-ship-day | $18,318 | $27,327 | $13,833 | $24,743 | $15,959 |
| Oil/Bulk/Ore ("OBO") Fleet | |||||
| Calendar Days | 625 | 646 | 736 | 1,991 | 2,184 |
| TCE per calendar-ship-day | $13,382 | $17,209 | $9,565 | $16,212 | $10,783 |
| Large Product Tanker Fleet | |||||
| Calendar Days | 184 | 177 | -- | 361 | -- |
| TCE per calendar-ship-day | $21,707 | $42,881 | -- | $32,089 | -- |
| Small Product Tanker Fleet | |||||
| Calendar Days | 710 | 960 | -- | 1,670 | -- |
| TCE per calendar-ship-day | $11,462 | $12,155 | -- | $11,860 | -- |
Tanker Market Overview
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Average tanker charter rates declined in the third quarter of 2003 from the very high levels in the previous quarter, mainly as a result of seasonal factors normally experienced in the summer months, and an increase in oil supplies from short-haul sources. However, charter rates increased in the first three weeks of October 2003, averaging over $27,000 per day for Aframaxes, as reported by Clarkson.
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During the third quarter, global oil supply increased by 1.5 million barrels per day (mb/d) from the previous quarter to 79.5 mb/d as non-OPEC producers increased their oil production by 1.2 mb/d. Iraqi oil production rebounded during the third quarter to an average of 1.1 mb/d compared to 0.3 mb/d in the previous quarter, with most of the exports routed out of the Middle East. The increase in Iraqi oil production was partially offset as other Middle East OPEC oil producers reduced their production to make room for the resumption of Iraqi exports. In September 2003, OPEC members (excluding Iraq) voted to cut oil production by 0.9 mb/d effective November 1, 2003 in anticipation of further increases in Iraqi oil production.
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Global oil demand, an underlying driver of tanker demand, was estimated by the International Energy Agency (IEA) to be 77.6 mb/d during the third quarter of 2003, a 1.2 mb/d increase from the preceding quarter and 0.7 mb/d higher than in the third quarter of 2002. As of October 10, 2003, the IEA was projecting global oil demand of 80.2 mb/d for the fourth quarter of 2003, a 3.4% increase over the third quarter. The IEA projection for global oil demand in 2004 is 79.4 mb/d, a 1.3% increase over the forecast for 2003.
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The size of the world tanker fleet increased to 314.0 million deadweight tonnes (mdwt) as of September 30, 2003, up 0.3% from the end of the previous quarter and up 2.1% compared to the end of 2002. Deliveries of tanker newbuildings during the third quarter totaled 8.0 mdwt, compared to 7.6 mdwt in the previous quarter, while a total of 7.0 mdwt was sold for demolition or otherwise removed from the world tanker fleet during the third quarter, compared to 8.3 mdwt in the previous quarter.
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As of September 30, 2003 the world tanker orderbook stood at 71.4 mdwt, representing 22.7% of the total world fleet, up from 70.3 mdwt, or 22.5%, of the total world fleet as of June 30, 2003. The pace of ordering slowed in the third quarter with 9.2 mdwt in new contracts recorded compared to 12.4 mdwt in the previous quarter.
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The new European Union regulations pertaining to the accelerated phase-out of single hull tankers became effective on October 21, 2003, and immediately banned approximately 11 percent of the existing world tanker fleet from trading in European waters. In July 2003, the International Maritime Organization (IMO), the global maritime regulatory body, agreed to an early phase-out schedule for Category 1 tankers, which mandates what is expected to be the removal of approximately 12 percent of the existing world tanker fleet by the end of 2005. The IMO is set to meet in December 2003 to finalize the phase-out dates for Categories 2 and 3 tankers on a worldwide basis.
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Teekay Fleet
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As of September 30, 2003, the Teekay fleet (excluding vessels managed for third parties) consisted of 149 vessels, including 46 time-chartered-in vessels and 13 newbuilding tankers on order. During the quarter, the Company sold three Panamax OBO vessels as well as the SUDONG SPIRIT (1987-built Aframax tanker), and the SINGAPORE SPIRIT (1987-built Aframax tanker). The Company took delivery of four newbuildings during the quarter, the following three of which delivered onto long-term contracts: the AMERICAS SPIRIT (Aframax tanker) and the EUROPEAN SPIRIT (Suezmax tanker) delivered on charter to ConocoPhillips and the NORDIC STAVANGER (Suezmax shuttle tanker) was added to Navions shuttle tanker fleet. In the spot tanker segment, an Aframax tanker, the FUJI SPIRIT, was delivered under a capital lease.
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The following is a summary of the Teekay fleet as of September 30, 2003:
| Number of Vessels — Owned Vessels | Chartered-in Vessels | Newbuildings on Order | Total | |
|---|---|---|---|---|
| Spot Tanker Segment: | ||||
| VLCCs | 1 | 2 | -- | 3 |
| Suezmaxes | 1 | 6 | -- | 7 |
| Aframaxes (1) | 48 | 11 | 8 | 67 |
| OBOs (2) | 4 | 1 | -- | 5 |
| Large Product Tankers | -- | 2 | -- | 2 |
| Small Product Tankers | -- | 8 | -- | 8 |
| Total Spot Tanker Segment | 54 | 30 | 8 | 92 |
| Fixed-Rate Segment: | ||||
| Shuttle Tankers (3) | 27 | 12 | 2 | 41 |
| Conventional Tankers | 5 | -- | 3 | 8 |
| Floating Storage & Offtake (FSO) Units | 3 | -- | -- | 3 |
| LPG/Methanol Carriers | 1 | 4 | -- | 5 |
| Total Fixed-Rate Segment | 36 | 16 | 5 | 57 |
| Total | 90 | 46 | 13 | 149 |
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(1) Includes one Aframax to be converted to an FSO commencing on long-term contract during the second quarter of 2004. (2) Includes one 67%-owned OBO carrier. (3) Includes four shuttle tankers of which the Companys ownership interest ranges from 50% to 89%.
Subsequent to September 30, 2003, the Company sold five additional vessels from its spot tanker fleet: its remaining four Panamax OBO vessels, and the COOK SPIRIT (1987-built Aframax tanker), for total gross proceeds of approximately $28.6 million. There will be a nominal gain recorded in the fourth quarter resulting from the sale of these vessels.
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Liquidity and Capital Expenditures
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As of September 30, 2003, the Company had total liquidity of $697.2 million, comprising $335.9 million in cash and cash equivalents and $361.3 million in undrawn medium-term revolving credit facilities.
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At the end of the third quarter, the Company had approximately $460 million in remaining capital commitments relating to its 13 newbuildings on order. Of this, $37 million is due in the fourth quarter of 2003, $305 million in 2004, and $118 million in 2005. Long-term financing arrangements totaling $342 million exist for 11 of the 13 newbuildings scheduled for delivery.
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Dividend Increase
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On October 7, 2003, the Company announced that its Board of Directors had voted to increase its quarterly dividend by 16 percent to $0.25 per share. The dividend increase was primarily due to the Companys continued growth in its long-term fixed-rate business, which provides both a large stable base of cash flow and an increase in earnings power throughout the shipping cycle. The Company intends to evaluate potential future dividend increases based on cash generation, earnings growth and other factors.
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About Teekay
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Teekay is the leading provider of international crude oil and petroleum product transportation services, transporting more than 10 percent of the worlds sea-borne oil.
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With offices in 12 countries, Teekay employs more than 4,200 seagoing and shore-based staff around the world. The Company has earned a reputation for safety and excellence in providing transportation services to major oil companies, oil traders and government agencies worldwide.
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Teekays common stock is listed on the New York Stock Exchange where it trades under the symbol TK.
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Earnings Conference Call
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The Company plans to host a conference call at 11:00 a.m. EDT (8:00 a.m. PDT) on October 23, 2003, to discuss the results for the quarter. All shareholders and interested parties are invited to listen to the live conference call through the Companys web site at www.teekay.com . A recording of the call will be available until October 30, 2003 by dialing (719) 457-0820, access code 105631, or via the Companys web site until November 23, 2003.
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For Investor Relations enquiries contact: Scott Gayton Tel: +1 (604) 844-6654
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For other Media enquiries contact: Kim Barbero Tel: +1 (604) 609-4703
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Web site: www.teekay.com
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TEEKAY SHIPPING CORPORATION SUMMARY CONSOLIDATED STATEMENTS OF INCOME
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(in thousands of U.S. dollars, except share and per share data)
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| Three Months Ended — September 30, 2003 (unaudited) | June 30, 2003 (unaudited) | September 30, 2002 (unaudited) | Nine Months Ended — September 30, 2003 (unaudited) | September 30, 2002 (unaudited) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| NET VOYAGE REVENUES | ||||||||||
| Voyage revenues | 380,544 | 462,271 | 184,927 | 1,125,047 | 560,492 | |||||
| Voyage expenses | 105,686 | 109,187 | 62,166 | 284,207 | 171,764 | |||||
| Net voyage revenues | 274,858 | 353,084 | 122,761 | 840,840 | 388,728 | |||||
| OPERATING EXPENSES | ||||||||||
| Vessel operating expenses | 55,281 | 55,530 | 44,365 | 153,457 | 127,415 | |||||
| Time-charter hire expense | 95,955 | 93,483 | 11,430 | 202,349 | 37,640 | |||||
| Depreciation and amortization | 49,885 | 49,775 | 37,295 | 138,790 | 110,136 | |||||
| General and administrative | 24,118 | 21,909 | 14,330 | 60,754 | 42,824 | |||||
| 225,239 | 220,697 | 107,420 | 555,350 | 318,015 | ||||||
| Income from vessel operations | 49,619 | 132,387 | 15,341 | 285,490 | 70,713 | |||||
| OTHER ITEMS | ||||||||||
| Interest expense | (21,827 | ) | (21,700 | ) | (14,675 | ) | (57,913 | ) | (43,854 | ) |
| Interest income | 799 | 1,287 | 898 | 2,932 | 2,691 | |||||
| Income tax expense | (6,000 | ) | (13,864 | ) | (2,710 | ) | (23,186 | ) | (9,701 | ) |
| Write-downs and loss on sale of vessels | (5,843 | ) | (4,711 | ) | -- | (36,341 | ) | -- | ||
| Write-down of marketable securities | -- | -- | -- | (4,910 | ) | -- | ||||
| Other - net | 3,579 | 3,476 | 1,789 | 4,710 | 436 | |||||
| (29,292) | (35,512) | (14,698) | (114,708) | (50,428) | ||||||
| Net income | 20,327 | 96,875 | 643 | 170,782 | 20,285 | |||||
| Earnings per common share | ||||||||||
| - Basic | $0.51 | $2.43 | $0.02 | $4.28 | $0.51 | |||||
| - Diluted | $0.50 | $2.39 | $0.02 | $4.21 | $0.50 | |||||
| Weighted-average number of common | ||||||||||
| shares outstanding | ||||||||||
| - Basic | 40,042,702 | 39,825,796 | 39,667,088 | 39,870,740 | 39,618,246 | |||||
| - Diluted | 40,942,172 | 40,522,720 | 40,229,966 | 40,560,103 | 40,259,815 |
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TEEKAY SHIPPING CORPORATION SUMMARY CONSOLIDATED BALANCE SHEETS
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(in thousands of U.S. dollars)
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| As at September 30, 2003 (unaudited) | As at December 31, 2002 | |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | 335,951 | 284,625 |
| Other current assets | 168,353 | 102,933 |
| Marketable securities - long-term | 71,285 | 13,630 |
| Vessels and equipment | 2,539,852 | 1,928,488 |
| Advances on newbuilding contracts | 106,703 | 138,169 |
| Other assets | 154,740 | 166,472 |
| Intangible assets | 116,511 | -- |
| Goodwill | 130,291 | 89,189 |
| Total Assets | 3,623,686 | 2,723,506 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Accounts payable and accrued liabilities | 135,855 | 105,950 |
| Current portion of long-term debt | 145,209 | 83,605 |
| Long-term debt | 1,641,128 | 1,047,217 |
| Other long-term liabilities | 83,188 | 44,512 |
| Minority interest | 19,232 | 20,324 |
| Stockholders' equity | 1,599,074 | 1,421,898 |
| Total Liabilities and Stockholders' Equity | 3,623,686 | 2,723,506 |
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TEEKAY SHIPPING CORPORATION SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
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(in thousands of U.S. dollars)
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| Nine Months Ended September 30, — 2003 (unaudited) | 2002 (unaudited) | |||
|---|---|---|---|---|
| Cash and cash equivalents provided by (used for) | ||||
| OPERATING ACTIVITIES | ||||
| Net cash flow from operating activities | 353,817 | 137,167 | ||
| FINANCING ACTIVITIES | ||||
| Net proceeds from long-term debt | 1,679,297 | 78,890 | ||
| Scheduled repayments of long-term debt | (49,181 | ) | (34,676 | ) |
| Prepayments of long-term debt | (1,023,000 | ) | (8,000 | ) |
| Other | (5,909 | ) | (23,474 | ) |
| Net cash flow from financing activities | 601,207 | 12,740 | ||
| INVESTING ACTIVITIES | ||||
| Expenditures for vessels and equipment | (227,070 | ) | (93,115 | ) |
| Expenditures for drydocking | (23,191 | ) | (23,027 | ) |
| Expenditure for the purchase of Navion ASA | (698,301 | ) | -- | |
| Acquisition costs related to purchase of Navion ASA | (6,433 | ) | -- | |
| Proceeds from disposition of assets | 91,080 | -- | ||
| Other | (39,783 | ) | (47,210 | ) |
| Net cash flow from investing activities | (903,698 | ) | (163,352 | ) |
| Increase (decrease) in cash and cash equivalents | 51,326 | (13,445) | ||
| Cash and cash equivalents, beginning of the period | 284,625 | 174,950 | ||
| Cash and cash equivalents, end of the period | 335,951 | 161,505 |
MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project"
TEEKAY SHIPPING CORPORATION SUPPLEMENTAL INFORMATION
MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Default"
(in thousands of U.S. dollars)
MARKER FORMAT-SHEET="Page Rule Single" FSL="Default"
| Three Months Ended September 30, 2003 (unaudited) — Spot Tanker Segment | Fixed-Rate Segment | Total | |
|---|---|---|---|
| Net voyage revenues | 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 | 14,839 | 9,279 | 24,118 |
| Income from vessel operations | 26,723 | 22,896 | 49,619 |
| Three Months Ended June 30, 2003 (unaudited) — Spot Tanker Segment | Fixed-Rate Segment | Total | |
|---|---|---|---|
| Net voyage revenues | 222,186 | 130,898 | 353,084 |
| Vessel operating expenses | 32,415 | 23,115 | 55,530 |
| Time-charter hire expense | 50,828 | 42,655 | 93,483 |
| Depreciation and amortization | 27,800 | 21,975 | 49,775 |
| General and administrative | 12,993 | 8,916 | 21,909 |
| Income from vessel operations | 98,150 | 34,237 | 132,387 |
| Three Months Ended September 30, 2002 (unaudited) — Spot Tanker Segment | Fixed-Rate Segment | Total | |
|---|---|---|---|
| Net voyage revenues | 86,691 | 36,070 | 122,761 |
| Vessel operating expenses | 33,014 | 11,351 | 44,365 |
| Time-charter hire expense | 11,430 | -- | 11,430 |
| Depreciation and amortization | 26,454 | 10,841 | 37,295 |
| General and administrative | 11,536 | 2,794 | 14,330 |
| Income from vessel operations | 4,257 | 11,084 | 15,341 |
| Nine Months Ended September 30, 2003 (unaudited) — Spot Tanker Segment | Fixed-Rate Segment | Total | |
|---|---|---|---|
| Net voyage revenues | 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 | 39,421 | 21,333 | 60,754 |
| Income from vessel operations | 215,361 | 70,129 | 285,490 |
MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project"
TEEKAY SHIPPING CORPORATION SUPPLEMENTAL INFORMATION
MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Default"
(in thousands of U.S. dollars)
MARKER FORMAT-SHEET="Page Rule Single" FSL="Default"
| Nine Months Ended September 30, 2002 (unaudited) — Spot Tanker Segment | Fixed-Rate Segment | Total | |
|---|---|---|---|
| Net voyage revenues | 281,176 | 107,552 | 388,728 |
| Vessel operating expenses | 96,671 | 30,744 | 127,415 |
| Time-charter hire expense | 37,640 | -- | 37,640 |
| Depreciation and amortization | 77,556 | 32,580 | 110,136 |
| General and administrative | 34,622 | 8,202 | 42,824 |
| Income from vessel operations | 34,687 | 36,026 | 70,713 |
MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project"
TEEKAY SHIPPING CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Default"
(in thousands of U.S. dollars, except per share data)
MARKER FORMAT-SHEET="Page Rule Single" FSL="Default"
| Three Months Ended | Nine Months Ended | |
|---|---|---|
| September 30, 2003 (unaudited) | September 30, 2003 (unaudited) | |
| Net income, as reported | 20,327 | 170,782 |
| Loss on disposition of vessels and equipment | 1,661 | 1,609 |
| Write-down in carrying value of vessels | 4,182 | 34,732 |
| Write-down in carrying value of marketable securities | -- | 4,910 |
| Deferred income taxes on unrealized foreign exchange gains | 4,036 | 3,005 |
| Net income before non-cash charges | 30,206 | 215,038 |
| Diluted earnings per share, as reported | 0.50 | 4.21 |
| Loss on disposition of vessels and equipment | 0.04 | 0.04 |
| Write-down in carrying value of vessels | 0.10 | 0.86 |
| Write-down in carrying value of marketable securities | -- | 0.12 |
| Deferred income taxes on unrealized foreign exchange gains | 0.10 | 0.07 |
| Diluted earnings per share before non-cash charges | 0.74 | 5.30 |
MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project"
TEEKAY SHIPPING CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Default"
(in thousands of U.S. dollars)
MARKER FORMAT-SHEET="Page Rule Single" FSL="Default"
| Three Months Ended September 30, 2003 (unaudited) — Spot Tanker Segment | Fixed-Rate Segment | Total | |
|---|---|---|---|
| Income from vessel operations | 26,723 | 22,896 | 49,619 |
| Depreciation and amortization | 27,004 | 22,881 | 49,885 |
| EBITDA (1) | 53,727 | 45,777 | 99,504 |
| Three Months Ended September 30, 2002 (unaudited) — Spot Tanker Segment | Fixed-Rate Segment | Total | |
|---|---|---|---|
| Income from vessel operations | 4,257 | 11,084 | 15,341 |
| Depreciation and amortization | 26,454 | 10,841 | 37,295 |
| EBITDA (1) | 30,711 | 21,925 | 52,636 |
MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project"
(1) EBITDA represents net income before interest expense, income tax expense, depreciation and amortization expense and other items. EBITDA is included because such data is used by certain investors to measure a companys financial performance. EBITDA 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 Companys performance required by accounting principles generally accepted in the United States.
MARKER FORMAT-SHEET="Page Rule Single" FSL="Default"
FORWARD LOOKING STATEMENTS
MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" MARKER FORMAT-SHEET="Para Flush" FSL="Default"
This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect managements current views with respect to certain future events and performance, including statements regarding anticipated EBITDA for the Companys fixed-rate segment in 2004; anticipated increased operating cash flow for the fixed-rate segment as a result of transactions entered into during the third quarter of 2003; tanker charter rates; newbuilding delivery dates; applicable industry regulations and their effect on the size of the world tanker fleet; potential expansion of SPTs business into geographic regions beyond the Gulf of Mexico; potential increases in future dividends paid by the Company; and the balance of supply and demand in the crude tanker market. 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 and petroleum products, 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 impacting 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; shipyard production delays; the Companys future capital expenditure requirements; the Companys inability to renew or replace long-term contracts; and other factors discussed in Teekays Report on Form 20-F for the fiscal year ended December 31, 2002, filed with the U.S. Securities and Exchange Commission. 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 Companys expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.