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: April 21, 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 April 21, 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: April 21, 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 RECORD
QUARTERLY EPS OF $4.37, up 231%;
ANNOUNCES 2-for-1 STOCK SPLIT
1st Quarter Highlights
- Achieved highest ever net income of $189.0 million (up 253% from prior year)
- Generated highest ever cash flow from vessel operations of $262.4 million, of which $70.3 million was from long-term fixed-rate contracts
- Announced entry into LNG shipping sector through the acquisition of Naviera F. Tapias S.A.
Nassau, The Bahamas, April 21, 2004 - Teekay Shipping Corporation today reported net income of $189.0 million, or $4.37 per share, for the quarter ended March 31, 2004, compared to net income of $53.6 million, or $1.32 per share, for the quarter ended March 31, 2003. The results for the first quarter of 2003 included $31.7 million, or $0.78 per share, in write-downs to the carrying value of certain older vessels and marketable securities. Net voyage revenues for the first quarter of 2004 were $447.6 million compared to $212.9 million for the same period in 2003, and income from vessel operations increased to $208.8 million from $103.5 million. The higher results for the current quarter are primarily attributable to the increase in spot tanker charter rates, as well as the inclusion of the Navion AS (Navion) fleet since its acquisition in April 2003.
In addition, Teekay’s Board of Directors authorized a two-for-one stock split relating to the Company’s common stock, which will be effected in the form of a 100% stock dividend. All stockholders of record on May 3, 2004 will receive one additional share of common stock for each share held. The additional shares will be distributed on or about the effective date of May 17, 2004.
“The strength of Teekay’s business model was clearly demonstrated this quarter with both our spot and fixed-rate segments producing record financial results,” commented Bjorn Moller, Teekay’s President and Chief Executive Officer. “Our decision to increase the size of our spot fleet over the past year allowed our spot tanker segment to generate over $190 million in cash flow from vessel operations as a result of the very high freight rates during the quarter. Our long-term fixed-rate segment continued its rapid growth, generating over $70 million in cash flow from vessel operations.” Mr. Moller continued, “The decision of our Board of Directors to effect a stock split reflects Teekay’s future growth prospects and the desire to increase the liquidity of our shares.”
Acquisition of Naviera F. Tapias S.A.
On March 16, 2004, Teekay announced that it had entered into a definitive agreement to acquire Naviera F. Tapias S.A. (Tapias), the leading independent owner and operator of liquefied natural gas (LNG) carriers and Suezmax tankers in Spain, for a total enterprise value of approximately $810 million. The purchase price will include a combination of cash payments and the assumption of existing debt. In addition, Teekay will assume approximately $540 million in newbuilding commitments, most of which is expected to be fully debt financed prior to the vessel deliveries. Teekay also entered into an agreement with the shareholders of Tapias to establish a 50/50 joint venture that will pursue new business in the oil and gas shipping sectors, focusing specifically on the Spanish market. The transaction will establish Teekay’s presence in the high growth LNG shipping sector and position the Company as a key supplier of LNG shipping to Spain, the world’s third largest importer of LNG.
Tapias’ fleet includes four LNG carriers (including two newbuildings), all on long-term fixed-rate contracts with Spanish energy companies with an average remaining term of approximately 21 years. The acquisition will further extend Teekay’s leading position in the crude oil tanker sector with the addition of Tapias’ nine Suezmax tankers (including three newbuildings), five of which are contracted under long-term fixed-rate charters with a major Spanish oil company with an average remaining term of approximately 18 years. Management expects that the acquisition will be immediately accretive to earnings and will add long-term fixed-rate cash flow from vessel operations of approximately $85 million in 2004 (on an annualized basis) and approximately $115 million per annum thereafter. The transaction, which is subject to customary closing conditions, is expected to close by April 30, 2004.
Operating Results
The following table highlights certain financial information of the Company’s two main segments, the spot tanker segment and the fixed-rate segment (see the “Teekay Fleet” section of this release for a breakdown of the fleet composition):
-------------------------------------- ------------------------------------------- --------------------------------------------
Three Months Ended Three Months Ended
March 31, 2004 March 31, 2003
(unaudited) (unaudited)
Spot Tanker Fixed-Rate Spot Tanker Fixed-Rate
(in thousands of U.S. dollars) Segment Segment Total Segment Segment Total
-------------------------------------- --------------- ------------- ------------- --------------- ------------- --------------
Net voyage revenues 288,081 159,486 447,567 173,468 39,430 212,898
Vessel operating expenses 23,453 25,459 48,912 31,613 11,033 42,646
Time-charter hire expense 59,555 49,110 108,665 12,911 - 12,911
Depreciation & amortization 24,886 28,728 53,614 26,867 12,263 39,130
Cash flow from vessel operations* 192,055 70,310 262,365 117,355 25,259 142,614
-------------------------------------- --------------- ------------- ------------- --------------- ------------- --------------
* Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense. See reconciliation in Appendix B to this release.
Fixed-Rate Segment
For the quarter ended March 31, 2004, cash flow from vessel operations from the Company’s fixed-rate segment increased to $70.3 million from $25.3 million for the first quarter of 2003, primarily due to the inclusion of Navion’s shuttle tanker operations and the addition of five conventional tankers on long-term fixed-rate charters to ConocoPhillips. Cash flow from vessel operations from the fixed-rate segment was higher than the $61.0 million generated during the quarter ended December 31, 2003, primarily as a result of:
- The delivery of the AUSTRALIAN SPIRIT (Aframax tanker) and the ASIAN SPIRIT (Suezmax tanker), which immediately commenced service under fixed-rate contracts to ConocoPhillips;
- High shuttle tanker utilization due to typically higher oil production during the winter months; and
- The delivery of the NORDIC BRASILIA (Suezmax shuttle tanker), during the first quarter.
The Company expects its existing fixed-rate segment to generate annualized cash flow from vessel operations of approximately $285 million by the fourth quarter of 2004. With the acquisition of Tapias, the fixed-rate segment’s annualized cash flow from vessel operations is expected to further increase to approximately $400 million by the end of 2004.
Spot Tanker Segment
Cash flow from vessel operations for the quarter ended March 31, 2004 from the Company’s spot tanker segment increased to $192.1 million from $117.4 million in the first quarter of 2003, primarily due to the increase in spot tanker charter rates and the inclusion of Navion’s conventional tanker fleet.
The following table highlights the 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
March 31, 2004 December 31, 2003 March 31, 2003
-----------------------------------------------------------------------------------------------------------------------
(unaudited)
-----------------------------------------------------------------------------------------------------------------------
Spot Tanker Segment
Very Large Crude Carrier Fleet
Calendar Days 273 276 90
TCE per calendar-ship-day $71,062 $46,442 $78,178
Suezmax Tanker Fleet
Calendar Days 561 585 -
TCE per calendar-ship-day $65,018 $34,079 -
Aframax Tanker Fleet
Calendar Days 5,122 5,255 5,160
TCE per calendar-ship-day $40,235 $25,419 $28,761
Oil/Bulk/Ore ("OBO") Fleet
Calendar Days 157 460 720
TCE per calendar-ship-day $20,822 $16,457 $17,775
Large Product Tanker Fleet
Calendar Days 395 199 -
TCE per calendar-ship-day $27,478 $28,879 -
Small Product Tanker Fleet
Calendar Days 847 746 -
TCE per calendar-ship-day $13,510 $10,929 -
-----------------------------------------------------------------------------------------------------------------------
Tanker Market Overview
Tanker freight rates continued to strengthen during the first quarter of 2004 as a result of strong global oil demand and increased oil supplies from long-haul sources combined with constrained tanker supply growth. During April 2004, tanker rates have declined from the near record levels experienced during the first quarter of 2004, mainly due to seasonal factors, but remain at relatively high levels when compared to historical averages.
Global oil demand, an underlying driver of tanker demand, continued to be strong, averaging 80.3 million barrels per day (mb/d) during the first quarter of 2004, down from 80.8 mb/d in the fourth quarter of 2003, but up 1.1 mb/d compared to the first quarter of 2003. On April 9, 2004, the International Energy Agency raised its forecast for 2004 oil demand to 80.3 mb/d, which would represent an increase of 2.1% over 2003 demand.
Global oil supply grew to 82.1 mb/d in the first quarter of 2004, an increase of 0.5 mb/d from the fourth quarter of 2003. Rising Iraqi exports helped increase OPEC production by 0.3 mb/d while non-OPEC production rose by 0.2 mb/d, led by the former Soviet Union. During the first quarter of 2004, OPEC (excluding Iraq) production averaged approximately 25.9 mb/d, 1.4 mb/d above its quota of 24.5 mb/d announced in November 2003. At its March 31, 2004 meeting, OPEC reiterated its earlier decision to further reduce production quotas by 1.0 mb/d to 23.5 mb/d, effective April 1, 2004, in anticipation of the normal seasonal reduction in oil demand. Market sources indicate that OPEC continues to produce significantly above these stated quotas.
The size of the world tanker fleet increased to 320.9 million deadweight tonnes (mdwt) as of March 31, 2004, up 1.2% from the end of the previous quarter. Despite the strong tanker rates, deletions in the first quarter of 2004 of 4.0 mdwt exceeded the 3.4 mdwt of tankers scrapped in the previous quarter. Deliveries of tanker newbuildings during the first quarter totaled 7.8 mdwt, up from 5.7 mdwt in the previous quarter.
As at March 31, 2004, the world tanker orderbook stood at 82.3 mdwt, representing 25.6% of the total world tanker fleet compared to 77.7 mdwt, or 24.5%, at the end of the previous quarter.
Teekay Fleet
As at March 31, 2004, Teekay’s fleet (excluding vessels managed for third parties and the Tapias fleet) consisted of 152 vessels, including 51 chartered-in vessels and 15 newbuilding tankers on order. During the quarter, the Company took delivery of three newbuildings: the AUSTRALIAN SPIRIT (Aframax tanker) and the ASIAN SPIRIT (Suezmax tanker), which immediately commenced service under fixed-rate contracts to ConocoPhillips; and the NORDIC BRASILIA (Suezmax tanker), which currently is trading in the spot market but is expected to commence its long-term charter to Transpetro by the third quarter of 2004 after conversion to a shuttle tanker. The Company did not sell any vessels during the quarter.
The following is a summary of the Teekay fleet as at March 31, 2004:
----------------------------------------------------------------------------------------------------------------------------
Number of Vessels
-----------------------------------------------------------------------
Owned Chartered-in Newbuildings on
Vessels Vessels Order Total
----------------------------------------------------------------------------------------------------------------------------
Spot Tanker Segment:
Very Large Crude Carriers 1 2 - 3
Suezmax Tankers 1 5 - 6
Aframax Tankers (1) 43 15 12 70
Large Product Tankers - 5 - 5
Small Product Tankers - 10 - 10
----------------------------------------------------------------------------------------------------------------------------
Total Spot Tanker Segment 45 37 12 94
----------------------------------------------------------------------------------------------------------------------------
Fixed-Rate Segment:
Shuttle Tankers (2) 29 13 1 43
Conventional Tankers 8 - 2 10
Floating Storage & Offtake (FSO) Units (3) 3 - - 3
LPG / Methanol Carriers 1 1 - 2
----------------------------------------------------------------------------------------------------------------------------
Total Fixed-Rate Segment 41 14 3 58
----------------------------------------------------------------------------------------------------------------------------
Total 86 51 15 152
----------------------------------------------------------------------------------------------------------------------------
| (1) | Includes one Aframax to be converted to an FSO and scheduled to commence service under a long-term contract during the second quarter of 2004. |
| (2) | Includes six shuttle tankers of which the Company’s ownership interests range from 50% to 65.5%. |
| (3) | Includes one FSO unit of which the Company’s ownership interest is 89% |
Liquidity and Capital Expenditures
As at March 31, 2004, the Company had total liquidity of $786 million, comprising $304 million in cash and cash equivalents and $482 million in undrawn medium-term revolving credit facilities.
Excluding the Tapias acquisition, as at March 31, 2004, the Company had approximately $543 million in remaining capital commitments relating to its 15 newbuildings on order. Of this, approximately $218 million was due during the remainder of 2004, $95 million in 2005, $83 million in 2006 and $147 million due in 2007 and early 2008. Long-term financing arrangements totaling approximately $255 million exist for 8 of the 15 newbuildings on order.
About Teekay
Teekay is the world’s leading provider of international crude oil and petroleum product transportation services, transporting more than 10% of the world’s sea-borne oil.
With offices in 13 countries, Teekay employs more than 4,700 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.
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 April 22, 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 the Company’s web site at www.teekay.com. A recording of the call will be available until April 29, 2004 by dialing (719) 457-0820, access code 495362, or via the Company’s web site until May 22, 2004.
For Investor Relations
enquiries contact:
Scott Gayton
Tel: +1 (604) 844-6654
For other Media
enquiries contact:
Kim Barbero
Tel: +1 (604) 609-4703
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 Three Months Ended Three Months Ended
March 31, December 31, March 31,
2004 2003 2003
(unaudited) (unaudited) (unaudited)
VOYAGE REVENUES 551,451 451,048 282,232
--------------------------------------------------- ------------------------ ------------------------ -------------------------
OPERATING EXPENSES
Voyage expenses 103,884 110,449 69,334
Vessel operating expenses 48,912 57,239 42,646
Time-charter hire expense 108,665 102,274 12,911
Depreciation and amortization 53,614 52,447 39,130
General and administrative 27,625 26,362 14,727
--------------------------------------------------- ------------------------ ------------------------ -------------------------
342,700 348,771 178,748
--------------------------------------------------- ------------------------ ------------------------ -------------------------
Income from vessel operations 208,751 102,277 103,484
Write-down and gain (loss) on sale of vessels 603 (54,048) (25,787)
Restructuring charge (762) (4,414) -
Equity income from joint ventures 1,836 3,217 785
--------------------------------------------------- ------------------------ ------------------------ -------------------------
Operating income 210,428 47,032 78,482
--------------------------------------------------- ------------------------ ------------------------ -------------------------
OTHER ITEMS
Interest expense (21,563) (23,086) (14,386)
Interest income 1,254 989 846
Income tax expense (2,149) (13,315) (3,322)
Other - net 1,039 (5,038) (8,041)
-------------------------------------------------- ------------------------ ------------------------ -------------------------
(21,419) (40,450) (24,903)
--------------------------------------------------- ------------------------ ------------------------ -------------------------
Net income 189,009 6,582 53,579
===============================================================================================================================
Earnings per common share
- Basic $4.63 $0.16 $1.35
- Diluted $4.37 $0.16 $1.32
--------------------------------------------------- ------------------------ ------------------------ -------------------------
Weighted-average number of common shares
outstanding
- Basic 40,810,396 40,357,275 39,740,399
- Diluted * 43,261,082 41,832,176 40,451,189
===============================================================================================================================
*Reflects the effect of outstanding stock options and the $143.75 million mandatory convertible preferred issue computed using the Treasury Stock Method
------------------------------------------------------------------------------------------------------------------------
TEEKAY SHIPPING CORPORATION
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
------------------------------------------------------------------------------------------------------------------------
As at March 31, As at December 31,
2004 2003
(unaudited)
ASSETS
Cash and cash equivalents 304,009 292,284
Other current assets 187,032 188,249
Marketable securities - long-term 173,311 95,511
Vessels and equipment 2,543,376 2,424,204
Advances on newbuilding contracts 80,183 150,656
Other assets 218,493 187,798
Intangible assets 113,705 118,588
Goodwill 130,754 130,754
-------------------------------------------------------------------- ------------------------- -------------------------
Total Assets 3,750,863 3,588,044
========================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities 132,898 171,411
Current portion of long-term debt 102,527 103,221
Long-term debt 1,467,188 1,533,537
Other long-term liabilities 110,897 112,726
Minority interest 15,925 15,322
Stockholders' equity 1,921,428 1,651,827
-------------------------------------------------------------------- ------------------------- -------------------------
Total Liabilities and Stockholders' Equity 3,750,863 3,588,044
========================================================================================================================
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TEEKAY SHIPPING CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
------------------------------------------------------------------------------------------------------------------------
Three Months Ended
March 31,
2004 2003
(unaudited) (unaudited)
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
-------------------------------------------------------------------- ------------------------- -------------------------
Net cash flow from operating activities 205,192 84,071
-------------------------------------------------------------------- ------------------------- -------------------------
FINANCING ACTIVITIES
Net proceeds from long-term debt 413,598 155,733
Scheduled repayments of long-term debt (52,607) (19,258)
Prepayments of long-term debt (428,170) (200,000)
Other 7,894 (6,796)
-------------------------------------------------------------------- ------------------------- -------------------------
Net cash flow from financing activities (59,285) (70,321)
-------------------------------------------------------------------- ------------------------- -------------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (93,829) (62,891)
Expenditures for the purchase of Tapias (30,183) -
Proceeds from disposition of assets 5,764 18,000
Other (15,934) (5,845)
-------------------------------------------------------------------- ------------------------- -------------------------
Net cash flow from investing activities (134,182) (50,736)
-------------------------------------------------------------------- ------------------------- -------------------------
Increase (decrease) in cash and cash equivalents 11,725 (36,986)
Cash and cash equivalents, beginning of the period 292,284 284,625
-------------------------------------------------------------------- ------------------------- -------------------------
Cash and cash equivalents, end of the period 304,009 247,639
========================================================================================================================
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TEEKAY SHIPPING CORPORATION
APPENDIX A — SUPPLEMENTAL INFORMATION
(in thousands of U.S. dollars)
------------------------------------------------------------------------------------------------------------------------
Three Months Ended March 31, 2004
(unaudited)
Spot Tanker Fixed-Rate
Segment Segment Total
--------------------------------------- ------------------------ -------------------------- ----------------------------
Net voyage revenues 288,081 159,486 447,567
Vessel operating expenses 23,453 25,459 48,912
Time-charter hire expense 59,555 49,110 108,665
Depreciation and amortization 24,886 28,728 53,614
General and administrative 13,018 14,607 27,625
--------------------------------------- ------------------------ -------------------------- ----------------------------
Income from vessel operations 167,169 41,582 208,751
========================================================================================================================
Three Months Ended December 31, 2003
(unaudited)
Spot Tanker Fixed-Rate
Segment Segment Total
--------------------------------------- ------------------------ -------------------------- ----------------------------
Net voyage revenues 192,922 147,677 340,599
Vessel operating expenses 30,440 26,799 57,239
Time-charter hire expense 54,493 47,781 102,274
Depreciation and amortization 24,703 27,744 52,447
General and administrative 14,267 12,095 26,362
--------------------------------------- ------------------------ -------------------------- ----------------------------
Income from vessel operations 69,019 33,258 102,277
========================================================================================================================
Three Months Ended March 31, 2003
(unaudited)
Spot Tanker Fixed-Rate
Segment Segment Total
--------------------------------------- ------------------------ -------------------------- ----------------------------
Net voyage revenues 173,468 39,430 212,898
Vessel operating expenses 31,613 11,033 42,646
Time-charter hire expense 12,911 - 12,911
Depreciation and amortization 26,867 12,263 39,130
General and administrative 11,589 3,138 14,727
--------------------------------------- ------------------------ -------------------------- ----------------------------
Income from vessel operations 90,488 12,996 103,484
========================================================================================================================
------------------------------------------------------------------------------------------------------------------------
TEEKAY SHIPPING CORPORATION
APPENDIX B — RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands of U.S. dollars)
------------------------------------------------------------------------------------------------------------------------
Three Months Ended March 31, 2004
(unaudited)
Spot Tanker Fixed-Rate
Segment Segment Total
Income from vessel operations 167,169 41,582 208,751
Depreciation and amortization 24,886 28,728 53,614
----------------------------------------- ---------------------- -------------------------- ----------------------------
Cash flow from vessel operations (1) 192,055 70,310 262,365
========================================================================================================================
Three Months Ended March 31, 2003
(unaudited)
Spot Tanker Fixed-Rate
Segment Segment Total
Income from vessel operations 90,488 12,996 103,484
Depreciation and amortization 26,867 12,263 39,130
----------------------------------------- ---------------------- -------------------------- ----------------------------
Cash flow from vessel operations (1) 117,355 25,259 142,614
========================================================================================================================
Annualized Projections as at
December 31, 2004
(unaudited)
Fixed-rate Segment Fixed-rate Segment
(excluding Tapias) (including Tapias)
Income from vessel operations 170,000 245,000
Depreciation and amortization 115,000 155,000
----------------------------------------- ---------------------- --------------------------
Cash flow from vessel operations (1) 285,000 400,000
===========================================================================================
Projections for Tapias’ Fixed-rate Segment
(unaudited)
Year Ended Year Ended
December 31, 2004 December 31, 2005
Income from vessel operations 49,000 75,000
Depreciation and amortization 36,000 40,000
----------------------------------------- ---------------------- --------------------------
Cash flow from vessel operations (1) 85,000 115,000
===========================================================================================
| (1) | Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense. Cash flow from vessel operations is included because certain investors use this data to measure a company's financial performance. 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
APPENDIX B — RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONTINUED
(in thousands of U.S. dollars)
------------------------------------------------------------------------------------------------------------------------
Three Months Ended March 31, 2004
(unaudited)
Spot Tanker Fixed-Rate
Segment Segment Total
Voyage revenues 375,856 175,595 551,451
Voyages expenses 87,775 16,109 103,884
----------------------------------------- ---------------------- -------------------------- ----------------------------
Net voyage revenues (2) 288,081 159,486 447,567
========================================================================================================================
Three Months Ended December 31, 2003
(unaudited)
Spot Tanker Fixed-Rate
Segment Segment Total
Voyage revenues 284,572 166,476 451,048
Voyages expenses 91,650 18,799 110,449
----------------------------------------- ---------------------- -------------------------- ----------------------------
Net voyage revenues (2) 192,922 147,677 340,599
========================================================================================================================
Three Months Ended March 31, 2003
(unaudited)
Spot Tanker Fixed-Rate
Segment Segment Total
Voyage revenues 241,717 40,515 282,232
Voyages expenses 68,249 1,085 69,334
----------------------------------------- ---------------------- -------------------------- ----------------------------
Net voyage revenues (2) 173,468 39,430 212,898
========================================================================================================================
| (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. |
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 spot tanker charter rates; anticipated annualized cash flow from vessel operations from the Company’s fixed-rate segment by the end of 2004; newbuilding delivery dates and the commencement of service under long-term contracts; the impact of the Tapias acquisition to Teekay’s earnings, future cash flow from vessel operations and strategic position; the financing requirements for and the closing of the acquisition; the growth prospects of the LNG shipping sector and the joint venture company with the Tapias shareholders; and the anticipated distribution date for the stock split. 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 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 failure to close the Tapias transaction; the potential inability of Teekay to integrate Tapias successfully; 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, 2002. 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.