Teekay Corporation Reports Second Quarter Results
(Thomson Reuters ONE) -
HAMILTON, BERMUDA--(Marketwired - Aug. 8, 2013) - Teekay Corporation (NYSE:TK) -
Highlights
* Second quarter 2013 total cash flow from vessel operations of $183.6
million.
* Second quarter 2013 adjusted net loss attributable to stockholders of Teekay
of $33.3 million, or $0.47 per share (excluding specific items which
increased GAAP net income by $44.7 million, or $0.63 per share).
* Second quarter 2013 adjusted net loss includes $0.11 per share loss related
to temporary operational issues on the Voyageur Spirit and Foinaven FPSO
units; return to full production expected in August and November,
respectively.
* Completed sale of the Voyageur Spirit FPSO to Teekay Offshore for $540
million in May 2013 and Teekay Parent's 50 percent interest in Cidade de
Itajai FPSO to Teekay Offshore for $204 million in June 2013, which
contributed to a reduction in Teekay Parent net debt by $334 million.
* Total consolidated liquidity of approximately $1.5 billion as at June
30, 2013, pro forma for Teekay Offshore's debt refinancing completed in July
2013 and Teekay LNG's equity offering completed in July 2013.
Teekay Corporation (Teekay or the Company) (NYSE:TK) today reported an adjusted
net loss attributable to stockholders of Teekay((1)) of $33.3 million, or $0.47
per share, for the quarter ended June 30, 2013, compared to an adjusted net loss
attributable to stockholders of Teekay of $17.0 million, or $0.25 per share, for
the same period of the prior year. Adjusted net loss attributable to
stockholders of Teekay excludes a number of specific items that had the net
effect of increasing GAAP net income by $44.7 million, or $0.63 per share, for
the three months ended June 30, 2013 and increasing GAAP net loss by $30.2
million, or $0.43 per share, for the same period of the prior year, as detailed
in Appendix A to this release. Including these items, the Company reported on a
GAAP basis, net income attributable to stockholders of Teekay of $11.4 million,
or $0.16 per share, for the quarter ended June 30, 2013, compared to net loss
attributable to stockholders of Teekay of $47.3 million, or $0.68 per share, for
the same period of the prior year. Net revenues((2)) for the second quarter of
2013 were $404.6 million, compared to $447.6 million for the same period of the
prior year.
For the six months ended June 30, 2013, the Company reported an adjusted net
loss attributable to stockholders of Teekay((1)) of $45.0 million, or $0.63 per
share, compared to an adjusted net loss attributable to stockholders of Teekay
of $37.8 million, or $0.55 per share, for the same period of the prior year.
Adjusted net loss attributable to stockholders of Teekay excludes a number of
specific items that had the net effect of increasing GAAP net income by $50.2
million, or $0.71 per share, for the six months ended June 30, 2013 and
increasing GAAP net loss by $8.4 million, or $0.12 per share, for the same
period of the prior year, as detailed in Appendix A to this release. Including
these items, the Company reported on a GAAP basis, net income attributable to
stockholders of Teekay of $5.2 million, or $0.07 per share, for the six months
ended June 30, 2013, compared to net loss attributable to stockholders of Teekay
of $46.2 million, or $0.67 per share, for the same period of the prior year. Net
revenues((2)) for the six months ended of 2013 were $829.3 million, compared to
$910.1 million for the same period of the prior year.
On July 5, 2013, the Company declared a cash dividend on its common stock of
$0.31625 per share for the quarter ended June 30, 2013. The cash dividend was
paid on July 31, 2013 to all shareholders of record on July 16, 2013.
1. Adjusted net income (loss) attributable to stockholders of Teekay is a non-
GAAP financial measure. Please refer to Appendix A to this release for a
reconciliation of this non-GAAP measure as used in this release to the most
directly comparable financial measure under United States generally accepted
accounting principles (GAAP) and for information about specific items
affecting net income (loss) that are typically excluded by securities
analysts in their published estimates of the Company's financial results.
2. Net revenues is a non-GAAP financial measure used by certain investors to
measure the financial performance of shipping companies. Please see Appendix
E to this release for a reconciliation of this non-GAAP measure as used in
this release to the most directly comparable financial measure under GAAP.
"The second quarter of 2013 was a challenging operational quarter for our FPSO
segment due to near-term production issues which negatively impacted revenue
contribution from the Voyageur Spirit and Foinaven FPSO units," commented Peter
Evensen, Teekay Corporation's President and Chief Executive Officer. "On both
units, production was reduced by issues related to the gas compressors.
Resolving these issues has been a top priority and our FPSO operations teams
have been working diligently to get these units back into full production as
soon as possible. As part of the Voyageur Spirit sale and purchase agreement,
Teekay Parent has agreed to indemnify Teekay Offshore due to the delayed
acceptance by the charterer. Although the Voyageur Spirit off-hire has resulted
in a reduction of approximately $0.05 per share to Teekay Corporation's second
quarter adjusted earnings, the indemnification itself will be effectively
treated as a reduction to the $540 million sales price to Teekay Offshore and
will not impact Teekay Corporation's earnings or operating cash flows. The $540
million sales price paid by Teekay Offshore was approximately $75 million higher
than Teekay Parent's cost to acquire and upgrade this unit. Since April
13, 2013, the Voyageur Spirit FPSO has been operating at partial production
levels and is expected to reach full capacity levels by the end of August 2013,
following the completion of repairs and testing."
"We continue to make progress on our strategy of selling assets into our
publicly-traded daughter entities and supporting their growth through direct
acquisitions and newbuilding deliveries at the daughter company level," Mr.
Evensen continued. "During the second quarter, we completed the sale of the
Voyageur Spirit FPSO and a 50 percent interest in the Cidade de Itajai FPSO to
Teekay Offshore, contributing to a reduction in Teekay Parent's net debt by $334
million. In addition, Teekay Offshore took delivery of its first two shuttle
tanker newbuildings which will operate under ten-year charters for BG Teekay in
Brazil, and Teekay Tankers took delivery of a 50 percent-owned VLCC conventional
tanker in June which commenced a five-year time-charter to a major Chinese
charterer. In recent months Teekay LNG and Teekay Offshore have been awarded new
contracts in the LNG and FSO segments, respectively, and Teekay LNG acquired
additional LNG and LPG newbuildings, which will provide further near- and long-
term growth."
Mr. Evensen added, "Looking ahead, we continue to develop new opportunities and
build on the strong existing portfolio of visible growth projects in each of our
businesses. So far in 2013, we have seen a strong level of new project tendering
activity, specifically in our gas and offshore businesses. As Teekay Offshore
and Teekay LNG grow, the cash flows from our general partnership interests in
these entities will become an increasingly important component of Teekay
Parent's overall cash flows."
Operating Results
The following tables highlight certain financial information for each of
Teekay's four publicly-listed entities: Teekay Offshore Partners L.P. (Teekay
Offshore) (NYSE:TOO), Teekay LNG Partners L.P. (Teekay LNG) (NYSE:TGP), Teekay
Tankers Ltd. (Teekay Tankers) (NYSE:TNK) and Teekay Parent (which excludes the
results attributed to Teekay Offshore, Teekay LNG and Teekay Tankers). A brief
description of each entity and an analysis of its respective financial results
follow the tables below. Please also refer to the "Fleet List" section below and
Appendix B to this release for further details.
+-----------------------+----------------------------------------------------------------+
| | Three Months Ended June 30, 2013 |
| +----------------------------------------------------------------+
| | (unaudited) |
| | |
| | Teekay Teekay |
| |Offshore LNG Teekay Teekay|
|(in thousands of U.S. |Partners Partners Tankers Teekay Consolidation Corporation|
|dollars) | LP LP Ltd. Parent Adjustments Consolidated|
+-----------------------+----------------------------------------------------------------+
| | |
| | |
|Net revenues | 206,629 95,395 41,043 97,094 (35,608 ) 404,553|
| | |
| | |
| | |
|Vessel operating | |
|expense | 87,825 24,814 24,832 58,507 - 195,978|
| | |
|Time-charter hire | |
|expense | 14,093 - 1,951 46,447 (35,947 ) 26,544|
| | |
|Depreciation and | |
|amortization | 50,662 25,156 11,921 22,030 - 109,769|
+-----------------------+----------------------------------------------------------------+
|
+-----------------------+----------------------------------------------------------------+
| | |
| | |
|CFVO - | |
|Consolidated((1)(2)(3))| 90,215 65,473 10,658 (35,560 ) - 130,786|
| | |
|CFVO - Equity | |
|Investments((4)) | 1,311 47,162 23 4,347 - 52,842|
| | |
|CFVO - Total | 91,526 112,635 10,681 (31,213 ) - 183,629|
+-----------------------+----------------------------------------------------------------+
+-----------------------+----------------------------------------------------------------+
| | Three Months Ended June 30, 2012 |
| +----------------------------------------------------------------+
| | (unaudited) |
| | |
| | Teekay Teekay |
| |Offshore LNG Teekay Teekay|
|(in thousands of U.S. |Partners Partners Tankers Teekay Consolidation Corporation|
|dollars) | LP LP Ltd. Parent Adjustments Consolidated|
+-----------------------+----------------------------------------------------------------+
| | |
| | |
|Net revenues | 213,351 96,112 50,933 136,173 (48,964 ) 447,605|
| | |
| | |
| | |
|Vessel operating | |
|expense | 79,407 22,177 23,002 67,187 - 191,773|
| | |
|Time-charter hire | |
|expense | 12,969 - 644 68,059 (50,181 ) 31,491|
| | |
|Depreciation and | |
|amortization | 50,003 24,673 18,047 22,345 - 115,068|
+-----------------------+----------------------------------------------------------------+
|
+-----------------------+----------------------------------------------------------------+
| | |
| | |
|CFVO - | |
|Consolidated((1)(2)(3))| 109,812 70,999 15,448 (24,445 ) - 171,814|
| | |
|CFVO - Equity | |
|Investments((4)) | - 38,035 - (1,441 ) - 36,594|
| | |
|CFVO - Total | 109,812 109,034 15,448 (25,886 ) - 208,408|
+-----------------------+----------------------------------------------------------------+
1. Cash flow from vessel operations (CFVO) represents income from vessel
operations before depreciation and amortization expense, amortization of in-
process revenue contracts, vessel write downs, gains and losses on the sale
of vessels, adjustments for direct financing leases to a cash basis, and
unrealized gains and losses relating to derivatives, but includes realized
gains and losses on the settlement of foreign currency forward contracts.
CFVO - Consolidated represents CFVO from vessels that are consolidated on
the Company's financial statements. Cash flow from vessel operations is a
non-GAAP financial measure used by certain investors to measure the
financial performance of shipping companies. Please refer to Appendix C and
Appendix E of this release for a reconciliation of this non-GAAP measure as
used in this release to the most directly comparable GAAP financial measure.
2. Excludes CFVO relating to assets acquired from Teekay Parent for the periods
prior to their acquisition by Teekay Offshore, Teekay LNG and Teekay
Tankers, respectively, as those results are included in the historical
results for Teekay Parent.
3. In addition to CFVO from directly owned vessels, Teekay Parent also receives
cash dividends and distributions from its daughter public companies. For the
three months ended June 30, 2013 and 2012, Teekay Parent received dividends
and distributions from Teekay LNG, Teekay Offshore and Teekay Tankers
totaling $39.8 million and $39.2 million, respectively. The dividends and
distributions received by Teekay Parent include, among others, those made
with respect to its general partner interests in Teekay Offshore and Teekay
LNG. Please refer to Appendix D to this release for further details.
4. CFVO - Equity Investments represents the Company's proportionate share of
CFVO from its equity-accounted vessels and other investments. Please refer
to Appendix E of this release for a reconciliation of this non-GAAP measure
as used in this release to the most directly comparable GAAP financial
measure.
Teekay Offshore Partners L.P.
Teekay Offshore is an international provider of marine transportation, oil
production and storage services to the offshore oil industry through its fleet
of 36 shuttle tankers (including four chartered-in vessels and two newbuildings
under construction), five floating, production, storage and offloading (FPSO)
units, six floating storage and offtake (FSO) units (including one FSO unit
under conversion) and five conventional oil tankers, in which its interests
range from 50 to 100 percent. Teekay Offshore also has the right to participate
in certain other FPSO and vessel opportunities. Teekay Parent currently owns a
29.9 percent interest in Teekay Offshore (including the 2 percent sole general
partner interest).
For the second quarter of 2013, Teekay Offshore's quarterly distribution was
$0.5253 per common unit. The cash distribution to be received by Teekay Parent
based on its common unit ownership and general partnership interest in Teekay
Offshore totaled $16.2 million for the second quarter of 2013, as detailed in
Appendix D to this release.
Cash flow from vessel operations from Teekay Offshore decreased to $91.5 million
in the second quarter of 2013, from $109.8 million in the same period of the
prior year. The decrease was primarily due to the lay-up of the Navion Torinita
and the Navion Clipper shuttle tankers upon expiration of their time-charter
contracts in the second and fourth quarters of 2012, respectively, the sales of
the Navion Fennia and Navion Savonita shuttle tankers in the third and fourth
quarters of 2012, the sale of five conventional tankers during the past 12
months, higher maintenance costs and higher crew wages from the FPSO units and
higher maintenance costs for the Dampier Spirit. This decrease was partially
offset by the acquisition of the 50 percent interest in the Cidade de Itajai
FPSO in June 2013 and higher shuttle tanker revenues from increased rates on
both time-charter and contract of affreightment contracts as well as new
contracts.
On May 2, 2013, Teekay Offshore completed the acquisition of the Voyageur Spirit
FPSO unit from Teekay Parent for a purchase price of $540 million. The Voyageur
Spirit FPSO unit has been contracted by E.ON Ruhrgas UK E&P Limited (E.ON) to
operate on the Huntington Field in the North Sea under a five-year time-charter,
plus up to 10 one-year extension options. Commencing from first-oil, which was
achieved on April 13, 2013, the charter contract with E.ON required the Voyageur
Spirit FPSO unit to achieve full production capability within a specified time
period to receive final acceptance from E.ON. Due to a defective gas compressor
on board the FPSO unit, the Voyageur Spirit was unable to achieve final
acceptance within the allowable timeframe, which resulted in the FPSO unit being
declared off-hire by the charterer retroactive to April 13, 2013. Under the
Voyageur Spirit FPSO sale and purchase agreement between Teekay Parent and
Teekay Offshore, Teekay Parent warranted that the FPSO unit would achieve final
acceptance by the charterer and agreed to indemnify Teekay Offshore for revenue
it would have received under the charter with E.ON from the date of acquisition
until final acceptance is achieved, up to a maximum amount of $54 million. Any
amounts relating to the indemnification of Teekay Offshore by Teekay Parent will
be effectively treated as a reduction to the sale price of the FPSO unit and
will therefore have no impact on the operating cash flows of Teekay Parent. For
the period from May 2, 2013 to June 30, 2013, the indemnification effectively
resulted in a reduction to the Voyageur Spirit FPSO purchase price of
approximately $12.5 million. Repairs to the Voyageur Spirit compressor are
expected to be completed in mid-August 2013 and the unit is expected to ramp-up
to full production and achieve final acceptance later in the month. In addition,
the Company intends to enter into commercial negotiations with the charterer to
seek compensation for production during the period from April 13, 2013 through
to final acceptance. Any compensation received from the charterer during the
indemnification period will reduce the amount of Teekay Parent's indemnification
to Teekay Offshore.
In May 2013, Teekay Offshore entered into an agreement with Statoil Petroleum AS
(Statoil), on behalf of the field license partners, to provide an FSO unit for
the Gina Krog oil and gas field in the North Sea. The contract will be serviced
by a new FSO unit converted from the 1995-built shuttle tanker, Randgrid. The
FSO conversion project is expected to be completed for a net capital cost of
approximately $220 million. Following completion in early 2017, the FSO unit
will commence operations under a three-year firm period time-charter contract to
Statoil, which includes 12 additional one-year extension options.
In May 2013, Teekay Offshore entered into an agreement with Salamander Energy
plc (Salamander) to provide an FSO unit for a ten-year charter contract, plus
extension options, in offshore Thailand. Teekay Offshore intends to convert its
1993-built shuttle tanker, the Navion Clipper, into an FSO unit for an estimated
fully-built-up cost of approximately $50 million. The unit is expected to
commence its contract with Salamander in the third quarter of 2014.
In June 2013, Teekay Offshore completed the acquisition of a 50 percent interest
in the Cidade de Itajai (Itajai) FPSO unit from Teekay Parent for a purchase
price of $204 million. The Itajai FPSO has been operating on the Baúna and
Piracaba (previously named Tiro and Sidon) fields in the Santos Basin offshore
Brazil since February 2013 under a nine-year fixed-rate time-charter contract,
plus extension options, with Petroleo Brasileiro SA (Petrobras). The remaining
50 percent interest in the Itajai FPSO unit is owned by Brazilian-based
Odebrecht Oil & Gas S.A. (a member of the Odebrecht group).
Teekay LNG Partners L.P.
Teekay LNG provides liquefied natural gas (LNG), liquefied petroleum gas (LPG)
and crude oil marine transportation services generally under long-term, fixed-
rate charter contracts through its current fleet of 32 LNG carriers (including
five newbuildings under construction), 26 LPG carriers (including 10
newbuildings under construction) and 11 conventional tankers. Teekay LNG's
interests in these vessels range from 33 to 100 percent. In addition, Teekay
LNG, through its 50 percent owned LPG joint venture with Exmar NV, charters-in
five LPG carriers. Teekay Parent currently owns a 36.9 percent interest in
Teekay LNG (including the 2 percent sole general partner interest).
For the second quarter of 2013, Teekay LNG's quarterly distribution was $0.675
per common unit. The cash distribution to be received by Teekay Parent based on
its common unit ownership and general partnership interest in Teekay LNG totaled
$23.0 million for the second quarter of 2013, as detailed in Appendix D to this
release.
Including cash flows from equity-accounted vessels, Teekay LNG's total cash flow
from vessel operations increased to $112.6 million in the second quarter of
2013, from $109.0 million in the same period of the prior year. The increase was
primarily due to the February 2013 acquisition of the 50 percent interest in
Exmar LPG BVBA, Teekay LNG's LPG joint venture with Exmar NV, higher rates on
charter contracts entered into during 2012 for certain of the LNG carriers in
Teekay LNG's 52 percent owned joint venture with Marubeni Corporation, and the
scheduled dry docking of the Hispania Spirit in the second quarter of the prior
year. This increase was partially offset by the effect of amendments to two of
Teekay LNG's Suezmax tanker charter contracts, which temporarily reduced the
daily hire rate for each vessel from October 2012 until September 2014, the
scheduled dry docking of the European Spirit in the second quarter of 2013, and
higher vessel operating expenditures due to the scheduled dry dockings of the
first Tangguh project LNG carrier and the Catalunya Spirit during the second
quarter of 2013 and preparations for the dry docking of the second Tangguh
project LNG carrier scheduled for the fourth quarter of 2013.
In June 2013, Teekay LNG was awarded five-year time-charter contracts with
Cheniere Marketing LLC (Cheniere) for the two 173,400 cubic meter (cbm) LNG
carrier newbuildings it ordered in December 2012. The newbuilding LNG carriers
are currently under construction by Daewoo Shipbuilding & Marine Engineering
Co., Ltd., (DSME) of South Korea and are scheduled to deliver in the first half
of 2016. These newbuilding vessels will be equipped with the M-type,
Electronically Controlled, Gas Injection (MEGI) twin engines, which are expected
to be significantly more fuel-efficient and have lower emission levels than
other engines currently being utilized in LNG shipping.
In July 2013, Teekay LNG exercised a portion of its existing options with DSME
and ordered two additional 173,400 cbm LNG carrier newbuildings, which will also
be constructed with the MEGI twin engines. The Partnership intends to secure
long-term contract employment for both vessels prior to their deliveries in
2016. With the exercise of these two newbuilding options, the Partnership
secured additional options from DSME for up to five additional LNG carrier
newbuildings. In addition, Exmar LPG BVBA exercised its options to order two
additional Midsize Gas Carrier (MGC) newbuildings, which will be constructed by
Hanjin Heavy Industries and Construction Co., Ltd. (Hanjin) and scheduled for
delivery in 2017.
In August 2013, Teekay LNG agreed to acquire a 155,900 cbm LNG carrier
newbuilding from Norway-based Awilco LNG ASA (Awilco), which is currently under
construction by DSME in South Korea. The vessel is expected to deliver in the
third quarter of 2013, at which time Awilco will sell the vessel to Teekay LNG
and bareboat charter the vessel back on a five-year fixed-rate charter contract
(plus a one-year extension option) with a fixed-price purchase obligation at the
end of the initial term (and option period). The net vessel purchase price of
$155 million is net of a $50 million upfront prepayment of charter hire by
Awilco, which is in addition to the daily bareboat charter rate. As part of the
transaction, Awilco has the option to sell and bareboat charter back a second
155,900 cbm LNG carrier newbuilding from Teekay LNG, currently under
construction by DSME, under similar terms. The second LNG carrier newbuilding is
expected to deliver in late-2013 or early-2014.
Teekay Tankers Ltd.
Teekay Tankers currently owns a fleet of 32 vessels, including 11 Aframax
tankers, 10 Suezmax tankers, seven Long Range 2 (LR2) product tankers (including
four newbuildings currently under construction), three MR product tankers, and a
50 percent interest in a VLCC. In addition, Teekay Tankers currently time-
charters in one Aframax tanker and has invested $115 million in first-priority
mortgage loans secured by two 2010-built VLCCs. Of the 28 vessels currently in
operation, 13 are employed on fixed-rate time-charters, generally ranging from
one to three years in initial duration, with the remaining vessels trading in
spot tanker pools. Based on its current ownership of Class A common stock and
its ownership of 100 percent of the outstanding Teekay Tankers Class B stock,
Teekay Parent currently owns a 25.1 percent economic interest in and has voting
control of Teekay Tankers.
On July 8, 2013, Teekay Tankers declared a fixed second quarter 2013 dividend of
$0.03 per share, which was paid on July 31, 2013 to all shareholders of record
on July 19, 2013. Based on its ownership of Teekay Tankers Class A and Class B
shares, the dividend paid to Teekay Parent totaled $0.6 million for the second
quarter of 2013.
In the second quarter of 2013, Teekay Tankers generated cash flow from vessel
operations of $10.7 million, a decrease from $15.4 million in the same period of
the prior year primarily due to lower time-charter equivalent rates earned by
its spot fleet and the expiration of certain time-charter contracts, and the
subsequent redeployment of certain vessels on time-charter contracts at lower
rates throughout the course of 2012 and early-2013, partially offset by the
contribution from 13 vessels acquired from Teekay Corporation in June 2012.
In early April 2013, Teekay Tankers ordered four fuel-efficient 113,000 dead-
weight tonne LR2 product tankers from STX Offshore & Shipbuilding Co., Ltd.
(STX) plus options to order additional vessels. The payment of the first
shipyard installment by Teekay Tankers to STX is contingent on Teekay Tankers
receiving acceptable refund guarantees for the shipyard installment payments. In
late-May 2013, STX commenced a voluntary financial restructuring with its
lenders during which STX's refund guarantee applications were temporarily
suspended. On July 31, 2013, STX announced it had completed its financial
restructuring process. STX has indicated that certain amendments to the terms of
the contracts with Teekay Tankers may be required in order to secure the
issuance of the refund guarantees. Teekay Tankers has not agreed to any such
amendments. To date, Teekay Tankers has not made any installment payments to STX
for the four newbuilding LR2 vessels and, prior to receiving the refund
guarantees, Teekay Tankers has the right to cancel the newbuilding orders at its
discretion.
In July 2010, Teekay Tankers invested $115 million two loans maturing in July
2013, secured by first priority mortgages registered on two 2010-built VLCC
newbuildings. The borrowers have been in default on their interest payment
obligations since January 2013. As a result, Teekay Tankers entered into
discussions with the borrowers and the second priority mortgagees of the vessels
to realize on its security for the loans and, in May 2013, took over management
of the vessels.
Teekay Parent
In addition to its equity ownership interests in Teekay Offshore, Teekay LNG and
Teekay Tankers, Teekay Parent directly owns several vessels, including four
conventional Suezmax tankers and four FPSO units. In addition, Teekay Parent
currently owns one newbuilding FPSO unit under construction. As at August
1, 2013, Teekay Parent also had eight chartered-in conventional tankers
(including two Aframax tankers owned by Teekay Offshore), two chartered-in LNG
carriers owned by Teekay LNG, and two chartered-in shuttle tankers and two
chartered-in FSOs owned by Teekay Offshore.
For the second quarter of 2013, Teekay Parent generated negative cash flow from
vessel operations of $31.2 million, compared to negative cash flow from vessel
operations of $25.9 million in the same period of the prior year. The decrease
in cash flow is due to the sale of the 13 conventional tankers to Teekay Tankers
in June 2012, the completion of the Petrojarl I FPSO time-charter in April 2013
and lower production on the Foinaven FPSO, partially offset by lower time-
charter hire expense as a result of the redelivery of time-chartered in vessels
over the course of the past year, including lower termination fees relating to
time-chartered in vessels.
From the fourth quarter of 2012 through the second quarter of 2013, the Foinaven
FPSO achieved lower than budgeted production levels due to equipment-related
operating issues. In mid-July 2013, Teekay Parent and the charterer agreed to
stop production to repair the FPSO unit's gas compression trains (which are the
responsibility of Teekay Parent) and repair the subsea system (which is the
responsibility of the charterer). The first compressor train is expected to be
repaired by mid-August 2013 allowing the unit to recommence operations. The
second compressor train is expected to be repaired by November 2013, at which
point the Foinaven FPSO is expected to reach full production. Under the charter
contract, Teekay Parent will receive lower quarterly revenue and a reduced
annual production tariff, typically recognized in the fourth quarter of each
year, due to lower expected production in 2013. Teekay Parent experienced a
reduction of revenues of approximately $4 million, or $0.06 per share, in the
second quarter of 2013 relating to the lower oil production from the Foinaven
FPSO.
Fleet List
The following table summarizes Teekay's consolidated fleet of 174 vessels as at
August 1, 2013, including chartered-in vessels and vessels under construction
but excluding vessels managed for third parties:
+-----------------------------+-----------------------------------------+
| | Number of Vessels((1)) |
| +-----------------------------------+-----+
| | Owned Chartered-in Newbuildings /| |
| | | |
| |Vessels Vessels Conversions|Total|
+-----------------------------+-----------------------------------+-----+
|Teekay Parent Fleet((2)(3)) | | |
| | | |
| Aframax Tankers ((4)) | - 5 -| 5|
| | | |
| Suezmax Tankers | 4 - -| 4|
| | | |
| MR Product Tanker | - 1 -| 1|
| | | |
| FPSO Units | 4 - 1| 5|
+-----------------------------+-----------------------------------+-----+
| Total Teekay Parent Fleet | 8 6 1| 15|
+-----------------------------+-----------------------------------+-----+
| | | |
| | | |
|Teekay Offshore Fleet | 45 4 3| 52|
| | | |
| | | |
| | | |
|Teekay LNG Fleet | 54 5 15| 74|
| | | |
| | | |
| | | |
|Teekay Tankers Fleet | 28 1 4| 33|
| | | |
| | | |
+-----------------------------+-----------------------------------+-----+
|Total Teekay Consolidated | | |
|Fleet | 135 16 23| 174|
+-----------------------------+-----------------------------------+-----+
1. Ownership interests in these vessels range from 33 percent to 100 percent.
Excludes vessels managed on behalf of third parties.
2. Excludes two LNG carriers chartered-in from Teekay LNG.
3. Excludes two shuttle tankers and two FSOs chartered-in from Teekay Offshore.
4. Excludes two Aframax tankers chartered-in from Teekay Offshore.
Liquidity and Capital Expenditures
As at June 30, 2013, the Company had consolidated liquidity of $1.3 billion
(consisting of $540.2 million cash and cash equivalents and $725.4 million of
undrawn revolving credit facilities), of which $461.1 million of liquidity
(consisting of $241.1 million cash and cash equivalents and $220.0 million of
undrawn revolving credit facilities) is attributable to Teekay Parent. Including
Teekay Offshore's $200 million revolving credit facility relating to the Varg
FPSO completed in July 2013 and the $40 million of proceeds from Teekay LNG's
common unit private placement completed in July 2013, Teekay had pro forma total
consolidated liquidity of approximately $1.5 billion as at June 30, 2013.
The following table provides the Company's remaining capital commitments
relating to its portion of acquisitions and newbuildings as at June 30, 2013,
including recent transactions announced after June 30, 2013:
+-------------------------------------+-----+-----+-----+-----+----+-------+
|(in millions) | 2013| 2014| 2015| 2016|2017| Total|
+-------------------------------------+-----+-----+-----+-----+----+-------+
|Teekay Offshore ((1)) |$ 221|$ 69|$ 92|$ 73| -|$ 455|
+-------------------------------------+-----+-----+-----+-----+----+-------+
|Teekay LNG((2)) |$ 207|$ 144|$ 135|$ 578|$ 35|$ 1,099|
+-------------------------------------+-----+-----+-----+-----+----+-------+
|Teekay Tankers ((3)) |$ 17|$ 9|$ 89|$ 64| -|$ 179|
+-------------------------------------+-----+-----+-----+-----+----+-------+
|Teekay Parent ((4)) |$ 32|$ 343| -| -| -|$ 375|
+-------------------------------------+-----+-----+-----+-----+----+-------+
|Total Teekay Corporation Consolidated|$ 477|$ 565|$ 316|$ 715|$ 35|$ 2,108|
+-------------------------------------+-----+-----+-----+-----+----+-------+
1. Includes capital expenditures related to two newbuilding shuttle tankers,
two FSO unit conversions using existing shuttle tankers and Teekay
Offshore's acquisition of a Dynamic Positioning HiLoad unit in August 2013.
2. Includes capital expenditures related to four newbuilding LNG carriers,
Teekay LNG's 50 percent interest in the ten newbuilding LPG carriers being
constructed for the Exmar LPG BVBA joint venture and Teekay LNG's
acquisition of one LNG carrier newbuilding from Awilco.
3. Includes capital expenditures related to four newbuilding LR2 product
tankers.
4. Includes remaining capital expenditures related to the Petrojarl Knarr FPSO
newbuilding.
Conference Call
The Company plans to host a conference call on Thursday, August 8, 2013 at
11:00 a.m. (ET) to discuss its results for the second quarter of 2013. An
accompanying investor presentation will be available on Teekay's website at
www.teekay.com prior to the start of the call. All shareholders and interested
parties are invited to listen to the live conference call by choosing from the
following options:
* By dialing (800) 820-0231 or (416) 640-5926, if outside North America, and
quoting conference ID code 5729978.
* By accessing the webcast, which will be available on Teekay's website at
www.teekay.com (the archive will remain on the website for a period of 30
days).
The conference call will be recorded and available until Thursday, August
15, 2013. This recording can be accessed following the live call by dialing
(888) 203-1112 or (647) 436-0148, if outside North America, and entering access
code 5729978.
About Teekay
Teekay Corporation is an operational leader and project developer in the marine
midstream space. Through its general partnership interests in two master limited
partnerships, Teekay LNG Partners L.P. (NYSE:TGP) and Teekay Offshore Partners
L.P. (NYSE:TOO), its controlling ownership of Teekay Tankers Ltd. (NYSE:TNK),
and its fleet of directly-owned vessels, Teekay is responsible for managing and
operating consolidated assets of over $11 billion, comprised of over 170
liquefied gas, offshore, and conventional tanker assets. With offices in 15
countries and approximately 6,400 seagoing and shore-based employees, Teekay
provides a comprehensive set of marine services to the world's leading oil and
gas companies, and its reputation for safety, quality and innovation has earned
it a position with its customers as The Marine Midstream Company.
Teekay's common stock is listed on the New York Stock Exchange where it trades
under the symbol "TK".
--------------------------------------------------------------------------------------
TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands of U.S. dollars, except share and per share data)
+--------------+-----------------------------------------+---------------------------+
| | Three Months Ended | Six Months Ended |
| +-----------------------------------------+---------------------------+
| | June 30, March 31, June 30, | June 30, June 30, |
| +-----------------------------------------+---------------------------+
| | 2013 2013 2012 | 2013 2012 |
| +-----------------------------------------+---------------------------+
| |(unaudited) (unaudited) (unaudited) |(unaudited) (unaudited) |
+--------------+-----------------------------------------+---------------------------+
| | | |
| | | |
|REVENUES | | |
|((1)(2)(3)) | 430,707 451,037 486,781 | 881,744 987,887 |
+--------------+-----------------------------------------+---------------------------+
| | | |
| | | |
|OPERATING | | |
|EXPENSES | | |
| | | |
|Voyage | | |
|expenses ((2))| 26,154 26,315 39,176 | 52,469 77,813 |
| | | |
|Vessel | | |
|operating | | |
|expenses | | |
|((1)(2)(3)) | 195,978 187,464 191,773 | 383,442 379,527 |
| | | |
|Time-charter | | |
|hire expense | 26,544 27,452 31,491 | 53,996 75,470 |
| | | |
|Depreciation | | |
|and | | |
|amortization | 109,769 102,494 115,068 | 212,263 229,682 |
| | | |
|General and | | |
|administrative| | |
|((2)(3)) | 35,395 39,271 36,230 | 74,666 74,592 |
| | | |
|Asset | | |
|impairments, | | |
|net of (gain) | | |
|loss on sale | | |
|of vessels and| | |
|equipment | 5,701 3,197 3,269 | 8,898 3,072 |
| | | |
|Restructuring | | |
|charges | 1,789 2,054 1,525 | 3,843 1,525 |
+--------------+-----------------------------------------+---------------------------+
| | 401,330 388,247 418,532 | 789,577 841,681 |
+--------------+-----------------------------------------+---------------------------+
|Income from | | |
|vessel | | |
|operations | 29,377 62,790 68,249 | 92,167 146,206 |
+--------------+-----------------------------------------+---------------------------+
|OTHER ITEMS | | |
| | | |
|Interest | | |
|expense ((2)) | (44,687 ) (42,510 ) (42,707 )| (87,197 ) (85,007 )|
| | | |
|Interest | | |
|income ((2)) | 2,018 1,018 1,645 | 3,036 3,691 |
| | | |
|Realized and | | |
|unrealized | | |
|gain (loss) on| | |
|derivative | | |
|instruments | | |
|((2)) | 56,035 (13,789 ) (94,598 )| 42,246 (89,783 )|
| | | |
|Equity income | | |
|((4)) | 47,372 27,315 5,291 | 74,687 22,935 |
| | | |
|Income tax | | |
|(expense) | | |
|recovery | (1,873 ) (2,500 ) 1,849 | (4,373 ) 5,417 |
| | | |
|Foreign | | |
|exchange gain | 678 2,191 17,835 | 2,867 2,011 |
| | | |
|Other (loss) | | |
|income - net | (1,386 ) 5,240 89 | 3,856 2,432 |
+--------------+-----------------------------------------+---------------------------+
|Net income | | |
|(loss) | 87,534 39,755 (42,347 )| 127,289 7,902 |
| | | |
|Less: Net | | |
|income | | |
|attributable | | |
|to non- | | |
|controlling | | |
|interests | (76,167 ) (45,891 ) (4,927 )| (122,058 ) (54,110 )|
+--------------+-----------------------------------------+---------------------------+
| | | |
| | | |
|Net income | | |
|(loss) | | |
|attributable | | |
|to | | |
|stockholders | | |
|of Teekay | | |
|Corporation | 11,367 (6,136 ) (47,274 )| 5,231 (46,208 )|
+--------------+-----------------------------------------+---------------------------+
|Earnings | | |
|(loss) per | | |
|common share | | |
|of Teekay | | |
| | | |
| - Basic |$ 0.16 $ (0.09 ) $ (0.68 )|$ 0.07 $ (0.67 )|
| | | |
| - Diluted |$ 0.16 $ (0.09 ) $ (0.68 )|$ 0.07 $ (0.67 )|
| | | |
| | | |
+--------------+-----------------------------------------+---------------------------+
|Weighted- | | |
|average number| | |
|of common | | |
|shares | | |
|outstanding | | |
| | | |
| - Basic | 70,393,531 69,888,279 69,231,419 | 70,142,301 69,043,639 |
| | | |
| - Diluted | 71,314,629 69,888,279 69,231,419 | 71,142,363 69,043,639 |
| | | |
| | | |
+--------------+-----------------------------------------+---------------------------+
1. The costs of business development and engineering studies relating to North
Sea FPSO and FSO projects that the Company is pursuing are substantially
reimbursable from customers upon completion. As a result, $2.8 million of
revenues and $2.6 million of costs were recognized in the first quarter of
2013 upon completion of one North Sea FPSO study.
2. Realized and unrealized gains (losses) related to derivative instruments
that are not designated as hedges for accounting purposes are included as a
separate line item in the statements of income (loss). The realized (losses)
gains relate to the amounts the Company actually received or paid to settle
such derivative instruments and the unrealized gains (losses) relate to the
change in fair value of such derivative instruments, as detailed in the
table below:
Three Months Ended Six Months Ended
--------------------------------------------------------
June 30, March 31, June 30, June 30, June 30,
--------------------------------------------------------
2013 2013 2012 2013 2012
--------------------------------------------------------
Realized (losses)
gains relating to:
Interest rate swaps (30,899 ) (30,352 ) (29,669 ) (61,251 ) (60,085 )
Termination of
interest rate swap
agreement in
Voyageur VIE (4,187 ) - - (4,187 ) -
Foreign currency
forward contracts (1,873 ) 421 147 (1,452 ) 1,384
Foinaven embedded
derivative - - - - 11,452
--------------------------------------------------------
(36,959 ) (29,931 ) (29,522 ) (66,890 ) (47,249 )
--------------------------------------------------------
Unrealized gains
(losses) relating to:
Interest rate swaps 96,912 19,204 (58,425 ) 116,116 (41,290 )
Foreign currency
forward contracts (3,918 ) (3,062 ) (6,651 ) (6,980 ) 2,141
Foinaven embedded
derivative - - - - (3,385 )
--------------------------------------------------------
92,994 16,142 (65,076 ) 109,136 (42,534 )
--------------------------------------------------------
Total realized and
unrealized gains
(losses) on non-
designated
derivative
instruments 56,035 (13,789 ) (94,598 ) 42,246 (89,783 )
--------------------------------------------------------
3. To more closely align the Company's presentation to many of its peers, the
cost of ship management activities related to the Company's fleet and to
services provided to third parties of $19.1 million and $38.6 million for
the three and six months ended June 30, 2013, respectively, and $19.6
million for the three months ended March 31, 2013, have been presented in
vessel operating expenses. Revenues from ship management activities provided
to third parties of $7.3 million and $13.8 million for the three and six
months ended June 30, 2013, respectively, and $6.5 million for the three
months ended March 31, 2013, have been presented in revenues. Prior to
2013, the Company included these amounts in general and administrative
expenses. All such costs incurred in comparative periods have been
reclassified from general and administrative expenses to vessel operating
expenses and revenues to conform to the presentation adopted in the current
period. The amounts reclassified from general and administrative expenses to
vessel operating expenses were $19.4 million and $40.0 million for the three
and six months ended June 30, 2012, respectively. The amounts reclassified
from general and administrative expenses to revenues were $4.9 million and
$10.4 million for the three and six months ended June 30, 2012,
respectively.
4. The Company's proportionate share of items within equity income as
identified in Appendix A of this release, is as detailed in the table below.
By excluding these items from equity income, the resulting adjusted equity
income is a normalized amount that can be used to evaluate the financial
performance of the Company's equity accounted investments.
Three Months Ended Six Months Ended
----------------------------------------------------------
June 30, March 31, June 30, June 30, June 30,
----------------------------------------------------------
2013 2013 2012 2013 2012
----------------------------------------------------------
Equity income 47,372 27,315 5,291 74,687 22,935
Proportionate share
of unrealized
(gains) losses on
derivative
instruments (17,176 ) (5,373 ) 10,428 (22,549 ) 3,508
----------------------------------------------------------
Equity income
adjusted for items
in Appendix A 30,196 21,942 15,719 52,138 26,443
----------------------------------------------------------
-------------------------------------------------------------------------------
TEEKAY CORPORATION
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
-------------------------------------------------------------------------------
As at
As at As at December
June 30, March 31, 31,
---------------- ---------------- ------------
2013 2013 2012
---------------- ---------------- ------------
(unaudited) (unaudited) (unaudited)
---------------- ---------------- ------------
ASSETS
Cash and cash equivalents 540,206 479,647 639,491
Other current assets 626,499 753,411 692,389
Restricted cash - current 37,357 39,709 39,390
Restricted cash - long-term 495,714 494,979 494,429
Vessels held for sale 6,800 - 22,364
Vessels and equipment 6,742,642 6,572,749 6,628,383
Advances on newbuilding
contracts 706,965 741,637 692,675
Derivative assets 119,989 144,665 180,250
Investment in equity accounted
investees 621,484 642,598 480,043
Investment in term loans 188,895 183,018 185,934
Investment in direct financing
leases 430,414 433,315 436,601
Other assets 317,450 258,959 217,401
Intangible assets 116,633 121,376 126,136
Goodwill 166,539 166,539 166,539
-------------------------------------------------------------------------------
Total Assets 11,117,587 11,032,602 11,002,025
-------------------------------------------------------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued
liabilities 532,003 438,320 478,756
Datum: 08.08.2013 - 17:04 Uhr
Sprache: Deutsch
News-ID 286144
Anzahl Zeichen: 65586
contact information:
Town:
HAMILTON
Kategorie:
Business News
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