Teekay Corporation Reports Third Quarter 2015 Results
(firmenpresse) - HAMILTON, BERMUDA -- (Marketwired) -- 11/05/15 -- Highlights
Teekay Corporation (Teekay or the Company) (NYSE: TK) today reported financial and operating results for the third quarter of 2015. These results include the Company''s three publicly-listed subsidiaries (Teekay Offshore Partners L.P. (Teekay Offshore) (NYSE: TOO), Teekay LNG Partners L.P. (Teekay LNG) (NYSE: TGP), and Teekay Tankers Ltd. (Teekay Tankers) (NYSE: TNK)) (collectively, the Daughter Entities), all of which are consolidated in the Company''s financial statements, and all remaining subsidiaries of the Company are referred to in this release as Teekay Parent. Please refer to the third quarter earnings releases of Teekay LNG, Teekay Offshore and Teekay Tankers, which are available on the Company''s website at , for additional information on their respective results.
Summary Financial Information
CEO Commentary
"Teekay Parent''s free cash flow for the third quarter increased by 21 percent over the prior quarter to $59.8 million, or $0.82 per share, as our general partner and limited partner cash flows benefited from the dropdown of the Knarr FPSO and the associated four percent distribution increase declared by Teekay Offshore, resulting in a strong coverage ratio of 1.49x for the quarter," commented Peter Evensen, Teekay Corporation''s President and Chief Executive Officer. "In addition, the Knarr dropdown allowed us to increase Teekay Parent''s dividend by approximately 75 percent in the second quarter of 2015 and helped reduce Teekay Parent''s net debt by approximately $900 million to $652 million at September 30, 2015, which further strengthens Teekay Parent''s balance sheet."
"Teekay Parent''s free cash flow is supported primarily by the stable and growing cash flows received from our two master limited partnerships," Mr. Evensen continued. "Teekay LNG''s and Teekay Offshore''s diversified portfolios of long-term fee-based contracts, which total approximately $11.3 billion and $8.2 billion, respectively, of forward revenues, are not directly-linked to commodity prices and service our customers'' oil production and oil and gas transportation needs."
Summary of Results
Teekay Parent
Teekay Parent GPCO Cash Flow, which includes distributions and dividends received on an accrual basis from Teekay''s publicly-listed subsidiaries less Teekay Parent''s corporate general and administrative expenses, increased to $53.8 million for the quarter ended September 30, 2015, compared to $41.2 million for the quarter ended June 30, 2015. The distributions and dividends received from Teekay''s publicly-listed subsidiaries for the quarter ended September 30, 2015 increased to $57.4 million, compared to $45.3 million for the quarter ended June 30, 2015, primarily due to Teekay Parent''s $300 million investment in Teekay Offshore common units in connection with the sale of the Petrojarl Knarr (Knarr) FPSO to Teekay Offshore in early-July and Teekay Offshore''s four percent cash distribution increase for the third quarter of 2015.
Teekay Parent OPCO Cash Flow, which includes cash flow attributable to assets directly-owned by, or chartered-in to, Teekay Parent, net of interest expense and drydock expenditures, decreased to $6.0 million for the quarter ended September 30, 2015, from $8.3 million for the quarter ended June 30, 2015. The decrease is primarily due to the sale of the Knarr FPSO to Teekay Offshore in early-July, partially offset by business development fees received from Teekay Offshore in connection with transactions involving the Knarr FPSO, Units for Maintenance and Safety (UMS) and towage vessels.
Total Teekay Parent Free Cash Flow, which is the total of GPCO and OPCO cash flows, was $59.8 million during the third quarter of 2015, compared to $49.5 million in the second quarter of 2015. Please refer to Page 7 of this release for additional information about Teekay Parent Free Cash Flow.
On October 5, 2015, the Company declared a cash dividend on its common stock of $0.55 per share for the quarter ended September 30, 2015. The cash dividend is payable on November 19, 2015 to all shareholders of record on October 16, 2015.
Teekay Corporation Consolidated
The Company''s consolidated cash flow from vessel operations (CFVO) decreased to $341.3 million for the quarter ended September 30, 2015, compared to $352.2 million for the quarter ended June 30, 2015, primarily due to the scheduled maintenance of the Foinaven FPSO, a seasonal decrease in shuttle tanker utilization, lower towage fleet utilization, and lower average spot tanker rates.
The Company''s consolidated adjusted net income decreased to $2.8 million, or $0.04 per share, during the quarter ended September 30, 2015, compared to $19.7 million, or $0.27 per share, for the quarter ended June 30, 2015.
On a GAAP basis, the Company''s consolidated net loss was $12.2 million, or $0.17 per share, for the quarter ended September 30, 2015, compared to net income of $65.9 million, or $0.91 per share, for the quarter ended June 30, 2015.
Summary Results of Daughter Entities
Teekay Offshore Partners
Teekay Offshore''s distributable cash flow during the quarter ended September 30, 2015 was relatively consistent with the quarter ended June 30, 2015. The higher contributions from the acquisition of the Knarr FPSO in early-July 2015 and the commencement of operations of the Arendal Spirit UMS in early-June 2015 and a full quarter contribution from the start-up of Teekay Offshore''s shuttle tanker operations in the East Coast of Canada were offset by the scheduled expiration of certain shuttle tanker charter contracts, a temporary shut-down of the Piranema Spirit FPSO for unscheduled repairs completed during the quarter, a seasonal decrease in shuttle tanker utilization and lower towage fleet utilization. Please refer to Teekay Offshore''s third quarter 2015 earnings release for additional information on the financial results for this entity.
Teekay LNG Partners
Teekay LNG''s distributable cash flow decreased during the quarter ended September 30, 2015, compared to the quarter ended June 30, 2015, primarily due to the effect of a one-time cumulative catch-up payment by the charterer in the second quarter of 2015 upon finalization of the amended charter contracts for four liquefied natural gas (LNG) carriers in Teekay LNG''s Angola LNG joint venture, higher off-hire for scheduled drydockings and lower revenue days for two 52-percent owned LNG carriers, the Methane Spirit and Magellan Spirit, currently operating on short-term contracts. Please refer to Teekay LNG''s third quarter 2015 earnings release for additional information on the financial results for this entity.
Teekay Tankers
Teekay Tankers'' free cash flow during the quarter ended September 30, 2015 was relatively consistent with the quarter ended June 30, 2015. Please refer to Teekay Tankers'' third quarter 2015 earnings release for additional information on the financial results for this entity.
Recent Transactions
Teekay Parent
On July 1, 2015, Teekay Parent completed the dropdown sale of the Knarr FPSO to Teekay Offshore for a fully built-up cost of approximately $1.26 billion. Teekay Offshore fully financed the acquisition through the assumption of an existing $745 million long-term debt facility, the issuance of $300 million of common units to Teekay Parent, and the issuance of $250 million of convertible preferred units in a private placement to a group of institutional investors.
Teekay Offshore
On June 1, 2015, Teekay Offshore commenced 15-year contracts, plus extension options, with a group of companies (including Chevron Canada, Exxon Mobil, Husky Energy, Mosbachar Operating Ltd., Murphy Oil, Nalcor Energy, Statoil and Suncor Energy) to provide shuttle tanker services on the East Coast of Canada. These contracts were initially serviced by three third-party owned shuttle tankers that were operating on the East Coast of Canada, which were in-chartered by Teekay Offshore. One of these vessels was subsequently replaced by one of Teekay Offshore''s existing shuttle tankers, the Navion Hispania, during the third quarter of 2015. In connection with entering the 15-year contracts for this project, in early-June 2015, Teekay Offshore entered into shipbuilding contracts to construct three Suezmax-size, dynamic positioning 2 (DP2) shuttle tanker newbuildings with a South Korean shipyard for a fully built-up cost of approximately $370 million, with an option to order one additional vessel should a fourth vessel be required. The three ordered vessels are expected to be delivered in the fourth quarter of 2017 through the first half of 2018.
Teekay LNG
In September 2015, Teekay LNG''s Exmar LPG joint venture took delivery of the fifth of its 12 LPG carrier newbuildings, which recently commenced its 10-year charter contract with Potash Corporation.
Teekay Tankers
In early-August 2015, Teekay Tankers agreed to acquire 12 modern Suezmax tankers from Principal Maritime Tankers (Principal Maritime) for an aggregate purchase price of approximately $662 million. The 12 vessels have an average age of 5.5 years, which reduces the average age of Teekay Tankers'' fleet by 1.2 years. Teekay Tankers took delivery of all 12 vessels between mid-August and mid-October 2015, with nine vessels trading in the spot tanker market and the remaining three vessels trading under short-term fixed rate contracts which expire between December 2015 and February 2016. Eight of the 12 vessels are expected to complete drydockings by early-December 2015, which include fuel-efficiency modifications.
In late-July 2015, Teekay Tankers acquired SPT Inc. (SPT) from Teekay Parent and I.M. Skaugen SE for a purchase price of $45.5 million. SPT provides a full suite of ship-to-ship (STS) transfer services in the oil, gas and dry bulk industries. SPT owns and operates a fleet of six STS support vessels and has one chartered-in Aframax tanker, the SPT Explorer.
Liquidity
As at September 30, 2015, Teekay Parent had total liquidity of $303.9 million and, on a consolidated basis, Teekay Corporation had total liquidity of approximately $1.0 billion (consisting of $789.7 million of cash and cash equivalents and $231.9 million of undrawn revolving credit facilities).
Definitions and Non-GAAP Measures
This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the U.S. Securities and Exchange Commission. These non-GAAP financial measures, which include Cash Flow From Vessel Operations, Adjusted Net Income, Teekay Parent Free Cash Flow, and Net Interest Expense, are intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP. In addition, these measures do not have standardized meanings, and may not be comparable to similar measures presented by other companies. The Company believes that certain investors use this information to evaluate the Company''s financial performance.
Teekay Parent Financial Measures
Teekay Parent Free Cash Flow represents the sum of (a) distributions received as a result of ownership interests in its publicly-traded subsidiaries (Teekay LNG, Teekay Offshore, and Teekay Tankers) net of Teekay Parent''s corporate general and administrative expenditures in the respective period (collectively, GPCO) plus (b) CFVO attributed to Teekay Parent''s directly-owned and chartered-in assets, less net interest expense and drydock expenditures in the respective period (collectively, OPCO). Net interest expense includes interest expense, interest income and realized gains and losses on interest rate swaps. Please refer to Page 7 and Appendices B, C and D of this release for further details and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures reflected in the Company''s consolidated financial statements.
Consolidated Financial Measures
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 or losses on the sale of vessels and adjustments for direct financing leases to a cash basis, but includes realized gains or losses on the settlement of foreign currency forward contracts and a derivative charter contract. CFVO - Consolidated represents CFVO from vessels that are consolidated on the Company''s financial statements. CFVO - Equity Investments represents the Company''s proportionate share of CFVO from its equity-accounted vessels and other investments. CFVO is a non-GAAP financial measure used by certain investors to measure the financial performance of companies. Please refer to Appendices C and D of this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures reflected in the Company''s consolidated financial statements.
Adjusted net income excludes from net income items of income or loss that are typically excluded by securities analysts in their published estimates of the Company''s financial results. The Company believes that certain investors use this information to evaluate the Company''s financial performance. Please refer to Appendix A of this release for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure reflected in the Company''s consolidated financial statements.
Conference Call
The Company plans to host a conference call on Friday, November 6, 2015 at 11:00 a.m. (ET) to discuss its results for the third quarter of 2015. An accompanying investor presentation will be available on Teekay''s website at 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:
The conference call will be recorded and available until Friday, November 20, 2015. 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 9463483.
About Teekay
Teekay Corporation operates in the marine midstream space through its ownership of the general partners and a portion of the outstanding limited partner interests in Teekay LNG Partners L.P. (NYSE: TGP) and Teekay Offshore Partners L.P. (NYSE: TOO). The general partners own all of the outstanding incentive distribution rights. In addition, Teekay has a controlling ownership interest in Teekay Tankers Ltd. (NYSE: TNK) and directly owns a fleet of vessels. The combined Teekay entities manage and operate consolidated assets of over $13 billion, comprised of over 215 liquefied gas, offshore, and conventional tanker assets. With offices in 15 countries and approximately 7,100 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world''s leading oil and gas companies.
Teekay''s common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".
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 stability and growth of Teekay Parent free cash flow; the stability and growth of Teekay LNG and Teekay Offshore''s cash flows; Teekay LNG and Teekay Offshore''s expected future revenues; the total cost and timing for the delivery of newbuilding projects and timing of commencement of associated time-charter contracts; and vessel drydocks, including the timing and the number of vessels to be drydocked. 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, LNG and LPG, either generally or in particular regions; greater or less than anticipated levels of newbuilding orders or greater or less than anticipated rates of vessel scrapping; changes in trading patterns significantly affecting overall vessel 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 or demand for shuttle tankers, FSOs, FPSOs, UMS, and towage vessels; changes in oil production and the impact on the Company''s tankers and offshore units; fluctuations in global oil prices; trends in prevailing charter rates for the Company''s vessels and offshore unit contract renewals; the potential for early termination of long-term contracts and inability of the Company to renew or replace long-term contracts or complete existing contract negotiations; delays in commencement of operations of FPSO and FSO units at designated fields; changes in the Company''s expenses; the Company and its publicly-traded subsidiaries'' future capital expenditure requirements and the inability to secure financing for such requirements; the amount of future cash distributions by the Company''s daughter entities to the Company; failure of the respective Board of Directors of the general partners of Teekay Offshore and Teekay LNG to approve future cash distribution increases; conditions in the United States capital markets; 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, 2014 and Form 6-K for the quarter ended June 30, 2015. 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.
Contacts:
For Investor Relations enquiries contact:
Ryan Hamilton
Tel: +1 (604) 844-6654
Website:
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Datum: 05.11.2015 - 00:30 Uhr
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