-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Kj0Yd26tlPr3od11SNFrntsEVAz4F4W4CyabkmLeLZ+bIQlD4Sorvc3kOPQ/vUir M0drSRAimqoMmsaQP3s9pQ== 0000911971-98-000001.txt : 19980218 0000911971-98-000001.hdr.sgml : 19980218 ACCESSION NUMBER: 0000911971-98-000001 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980217 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEEKAY SHIPPING CORP CENTRAL INDEX KEY: 0000911971 STANDARD INDUSTRIAL CLASSIFICATION: DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT [4412] IRS NUMBER: 000000000 FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 001-12874 FILM NUMBER: 98540402 BUSINESS ADDRESS: STREET 1: TRADEWINDS BLDG SIXTH FLR STREET 2: BAY ST PO BOX SS-6293 CITY: NASSAU BAHAMAS STATE: C5 BUSINESS PHONE: 8093228020 MAIL ADDRESS: STREET 1: TRADEWINDS BLDG SIXTH FLOOR STREET 2: BAY STREET PO BOX 22-6293 CITY: NASSAU BAHAMAS STATE: C5 FORMER COMPANY: FORMER CONFORMED NAME: VIKING STAR SHIPPING INC DATE OF NAME CHANGE: 19930914 6-K 1 FORM 6-K 1 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 ------------------------------------ For the quarterly period ended December 31, 1997 TEEKAY SHIPPING CORPORATION (Exact name of Registrant as specified in its charter) Euro Canadian Centre, Fourth Floor Marlborough Street & Navy Lion Road, P.O. Box SS-6293, Nassau, The 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 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- ] ================================================================================ Page 1 of 21 2 TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES REPORT ON FORM 6-K FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1997 INDEX ----- PART I: FINANCIAL INFORMATION PAGE ---- Item 1. Financial Statements Consolidated Statements of Income and Retained Earnings for the three and nine months ended December 31, 1997 and 1996.............................3 Consolidated Balance Sheets - December 31, 1997 and March 31, 1997.........................4 Consolidated Statements of Cash Flows for the nine months ended December 31, 1997 and 1996.....................................................5 Notes to Consolidated Financial Statements...................................................6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations................14 PART II: OTHER INFORMATION...................................................19 SIGNATURES....................................................................21 2 3 TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS (in thousands of U.S. dollars, other than share data)
Three Months Ended Nine Months Ended December 31, December 31, 1997 1996 1997 1996 ---- ---- ---- ---- $ (Unaudited) $ $ (Unaudited) $ --- ----------- --- --- ----------- -- NET VOYAGE REVENUES Voyage revenues 107,084 97,302 305,063 281,475 Voyage expenses 26,392 27,154 78,406 76,707 - ---------------------------------------------------------------------------------------------------------- Net voyage revenues 80,692 70,148 226,657 204,768 - ---------------------------------------------------------------------------------------------------------- OPERATING EXPENSES Vessel operating expenses 17,685 18,194 54,269 53,605 Time-charter hire expense 3,316 118 7,372 3,462 Depreciation and amortization 23,460 22,894 71,054 67,041 General and administrative 5,276 4,579 14,965 13,673 - ---------------------------------------------------------------------------------------------------------- 49,737 45,785 147,660 137,781 - ---------------------------------------------------------------------------------------------------------- Income from vessel operations 30,955 24,363 78,997 66,987 - ---------------------------------------------------------------------------------------------------------- OTHER ITEMS Interest expense (13,463) (15,507) (42,243) (46,339) Interest income 1,870 1,637 5,762 4,790 Other income (loss) (note 7) 9,246 (598) 12,377 (1,072) - ---------------------------------------------------------------------------------------------------------- (2,347) (14,468) (24,104) (42,621) - ---------------------------------------------------------------------------------------------------------- Net income 28,608 9,895 54,893 24,366 Retained earnings, beginning of the period 396,248 366,137 382,178 363,690 - ---------------------------------------------------------------------------------------------------------- 424,856 376,032 437,071 388,056 Dividends declared and paid (6,171) (6,048) (18,386) (18,072) - ---------------------------------------------------------------------------------------------------------- Retained earnings, end of the period 418,685 369,984 418,685 369,984 - ---------------------------------------------------------------------------------------------------------- Earnings per common share (note 6) - basic $ 0.99 $ 0.35 $ 1.92 $ 0.87 - diluted 0.99 0.35 1.90 0.86 Weighted average number of common shares outstanding (note 6) 28,768,227 28,193,291 28,600,028 28,086,886 - ----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the consolidated financial statements. 3 4 TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands of U.S. dollars)
As at As at December 31, March 31, 1997 1997 ---- ---- $ $ ---- ---- (Unaudited) ----------- ASSETS Current Cash and cash equivalents 116,133 117,523 Marketable securities (note 2) 1,000 Accounts receivable -trade 24,298 25,745 -other 448 1,066 Prepaid expenses and other assets 14,338 14,666 - -------------------------------------------------------------------------------- Total current assets 156,217 159,000 - -------------------------------------------------------------------------------- Marketable securities (note 2) 26,337 Vessels and equipment (notes 5 and 8) At cost, less accumulated depreciation of $478,319 (March 31, 1997 - $457,779) 1,231,726 1,187,399 Advances on vessels 7,242 8,938 - -------------------------------------------------------------------------------- Total vessels and equipment 1,238,968 1,196,337 - -------------------------------------------------------------------------------- Investment 6,335 Other assets 9,846 11,166 - -------------------------------------------------------------------------------- 1,431,368 1,372,838 ================================================================================ LIABILITIES AND STOCKHOLDERS' EQUITY Current Accounts payable 13,611 16,315 Accrued liabilities 34,090 26,982 Current portion of long-term debt (notes 5 and 9) 72,051 36,283 - -------------------------------------------------------------------------------- Total current liabilities 119,752 79,580 - -------------------------------------------------------------------------------- Long-term debt (notes 5 and 9) 632,253 663,443 - -------------------------------------------------------------------------------- Total liabilities 752,005 743,023 - -------------------------------------------------------------------------------- Stockholders' equity Capital stock (note 6) 260,678 247,637 Retained earnings 418,685 382,178 - -------------------------------------------------------------------------------- Total stockholders' equity 679,363 629,815 - -------------------------------------------------------------------------------- 1,431,368 1,372,838 ================================================================================
Commitments and contingencies (note 8) The accompanying notes are an integral part of the consolidated financial statements. 4 5 TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of U.S. dollars)
Nine Months Ended December 31, 1997 1996 ---- ---- $ (Unaudited) $ ---- ----------- ---- Cash and cash equivalents provided by (used for) OPERATING ACTIVITIES Net income 54,893 24,366 Add (deduct) charges to operations not requiring a payment of cash and cash equivalents: Depreciation and amortization 71,054 67,041 Gain on disposition of assets (14,430) Loss on repurchase of 9 5/8% Notes 2,039 Other - net 1,133 2,568 Change in non-cash working capital items related to operating activities 12,239 12,139 - ----------------------------------------------------------------------------------------------------- Net cash flow from operating activities 126,928 106,114 - ----------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES Proceeds from long-term debt 79,600 220,000 Scheduled repayments of long-term debt (32,724) (13,140) Prepayments of long-term debt (43,778) (210,872) Net proceeds from issuance of Common Stock 4,822 705 Cash dividends paid (10,167) (9,848) Other (257) (1,053) - ------------------------------------------------------------------------------------------------------ Net cash flow for financing activities (2,504) (14,208) - ------------------------------------------------------------------------------------------------------ INVESTING ACTIVITIES Expenditures for vessels and equipment (123,702) (58,408) Expenditures for drydocking (14,737) (10,963) Proceeds from disposition of assets 33,901 Net cashflow from investment 6,335 Proceeds on sale of available-for-sale securities 9,818 Purchases of available-for-sale securities (37,155) Other (274) 282 - ------------------------------------------------------------------------------------------------------ Net cash flow for investing activities (125,814) (69,089) - ------------------------------------------------------------------------------------------------------ (Decrease) increase in cash and cash equivalents (1,390) 22,817 Cash and cash equivalents, beginning of the period 117,523 101,780 - ------------------------------------------------------------------------------------------------------ Cash and cash equivalents, end of the period 116,133 124,597 ======================================================================================================
The accomanying notes are an integral part of the consolidated financial statements. 5 6 TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (all tabular amounts stated in thousands of U.S. dollars) (Information as at December 31, 1997, and for the Three-Month and Nine-Month Periods Ended December 31, 1997 and 1996 is unaudited) 1. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States and the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures required by generally accepted accounting principles for complete annual financial statements have been omitted and, therefore, it is suggested that these interim financial statements be read in conjunction with the Company's audited financial statements for the fiscal year ended March 31, 1997. In the opinion of management, these statements reflect all adjustments (consisting only of normal recurring accruals), necessary to present fairly, in all material respects, the Company's consolidated financial position, results of operations and cash flows for the interim periods presented. The results of operations for the three-month and nine-month periods ended December 31, 1997 are not necessarily indicative of those for a full fiscal year. Certain of the prior period comparative figures have been reclassified where necessary to conform with the presentation used in the current period. 2. Marketable Securities Investments in marketable securities have been classified by management as available-for-sale securities and are carried at fair value. Net unrealized gains or losses on available-for-sale securities, if material, are reported as a separate component of stockholders' equity. The Company classifies all marketable securities with a maturity date of twelve months or less under current assets. 3. Cash Flows Cash interest paid during the nine-month periods ended December 31, 1997 and 1996 totalled approximately $33,782,000 and $35,063,000, respectively. 4. Income Taxes The legal jurisdictions of the countries in which the Company and its subsidiaries are incorporated do not impose income taxes upon shipping-related activities, except for three of the Company's Australian subsidiaries which are subject to an annual effective tax rate of approximately 36%. Income taxes for the interim periods presented are not material and therefore, have not been included herein. 5. Long-Term Debt
December 31, March 31, 1997 1997 $ $ ----------------------------------------------------------------------- First Preferred Ship Mortgage Notes (8.32%) U.S. dollar debt due through 2008 225,000 225,000 First Preferred Ship Mortgage Notes (9 5/8%) U.S. dollar debt due through 2004 125,702 151,200 Floating rate (LIBOR + 0.55% to 1 1/2%) U.S. dollar debt due through 2010 353,602 323,526 ----------------------------------------------------------------------- 704,304 699,726 Less current portion of long-term debt 72,051 36,283 ----------------------------------------------------------------------- 632,253 663,443 =======================================================================
6 7 TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (all tabular amounts stated in thousands of U.S. dollars) (Information as at December 31, 1997, and for the Three-Month and Nine-Month Periods Ended December 31, 1997 and 1996 is unaudited) 5. Long-Term Debt (cont'd) The 8.32% First Preferred Ship Mortgage Notes due February 1, 2008 (the "8.32% Notes") are collateralized by first preferred mortgages on seven of the Company's Aframax tankers, together with certain other related collateral, and are guaranteed by seven subsidiaries of Teekay that own the mortgaged vessels (the "8.32% Notes Guarantor Subsidiaries") to a maximum of 95% of the fair value of their net assets. As at December 31, 1997, the fair value of these net assets approximated $278 million. The 9 5/8% First Preferred Ship Mortgage Notes due July 15, 2003 (the "9 5/8% Notes") are collateralized by first preferred mortgages on six of the Company's Aframax tankers, together with certain other related collateral, and are guaranteed by six subsidiaries of Teekay that own the mortgaged vessels (the "9 5/8% Notes Guarantor Subsidiaries") to a maximum of 95% of the fair value of their net assets. As at December 31, 1997, the fair value of these net assets approximated $190 million. During the nine months ended December 31, 1997, the Company repurchased $24.3 million of the 9 5/8% Notes. Condensed financial information regarding the Company, the 9 5/8% Notes Guarantor Subsidiaries, the 8.32% Notes Guarantor Subsidiaries and non-guarantor subsidiaries of the Company is set out in Schedule A of these consolidated financial statements. As at December 31, 1997 the Company was committed to a series of interest rate swap agreements whereby $150 million of the Company's floating rate debt was swapped with fixed rate obligations having an average remaining term of 10.5 months. The swap agreements expire between October 1998 and December 1998. These arrangements effectively change the Company's interest rate exposure on $150 million of debt from a floating LIBOR rate to an average fixed rate of 5.85%. The Company is exposed to credit loss in the event of non-performance by the counter parties to the interest rate swap and cap agreements; however, the Company does not anticipate non-performance by any of the counter parties. 6. Capital Stock Authorized 25,000,000 Preferred Stock with a par value of $1 per share. 125,000,000 Common Stock with no par value ----------------------------------------------------------------------- Common Thousands Preferred Thousands Issued and outstanding Stock of shares Stock of shares ----------------------------------------------------------------------- Balance March 31, 1997 $247,637 28,328 $0 0 Reinvested dividends 8,219 260 Exercise of stock options 4,822 218 ----------------------------------------------------------------------- Balance December 31, 1997 $260,678 28,806 $0 0 ======================================================================= 7 8 TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (all tabular amounts stated in thousands of U.S. dollars) (Information as at December 31, 1997, and for the Three-Month and Nine-Month Periods Ended December 31, 1997 and 1996 is unaudited) 6. Capital Stock (cont'd) The Company has reserved 1,858,009 shares of Common Stock for issuance upon exercise of options granted pursuant to the Company's 1995 Stock Option Plan. As at December 31, 1997, options to purchase a total of 1,177,375 shares of the Company's Common Stock were outstanding, of which 579,641 options were then exercisable at prices ranging from $21.50 to $27.375 per share. The remaining outstanding options have exercise prices ranging from $21.50 to $33.50 per share. All outstanding options expire between July 19, 2005 and June 13, 2007, ten years after the date of grant. In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128 ("SFAS 128"), "Earnings per Share". SFAS 128 requires dual presentation of basic earnings per share ("EPS") and diluted EPS on the face of all statements of earnings ending after December 15, 1997 for all entities with complex capital structures. The Company's EPS has been presented in conformity with SFAS 128.
Three Months Ended December 31, 1997 Three Months Ended December 31, 1996 ------------------------------------ ------------------------------------ Net Thousands Per-Share Net Thousands Per-Share Income of Shares Amount Income of Shares Amount - --------------------------------------------------------------------------------------------------------------------- Income $28,608 $9,895 - --------------------------------------------------------------------------------------------------------------------- Basic EPS Income available to common stockholders 28,608 28,768 $0.99 9,895 28,193 $0.35 Effect of Dilutive Securities Stock options 249 182 - --------------------------------------------------------------------------------------------------------------------- Diluted EPS Income available to common stockholders $28,608 29,017 $0.99 $9,895 28,375 $0.35 =====================================================================================================================
Nine Months Ended December 31, 1997 Nine Months Ended December 31, 1996 ------------------------------------ ----------------------------------- Net Thousands Per-Share Net Thousands Per-Share Income of Shares Amount Income of Shares Amount - --------------------------------------------------------------------------------------------------------------------- Income $54,893 $24,366 - --------------------------------------------------------------------------------------------------------------------- Basic EPS Income available to common stockholders 54,893 28,600 $1.92 24,366 28,087 $0.87 Effect of Dilutive Securities Stock options 221 138 - --------------------------------------------------------------------------------------------------------------------- Diluted EPS Income available to common stockholders $54,893 28,821 $1.90 $24,366 28,225 $0.86 =====================================================================================================================
8 9 TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (all tabular amounts stated in thousands of U.S. dollars) (Information as at December 31, 1997, and for the Three-Month and Nine-Month Periods Ended December 31, 1997 and 1996 is unaudited) 7. Other Income (Loss) Three Months Nine Months Ended December 31, Ended December 31, 1997 1996 1997 1996 $ $ $ $ -------------------------------------------------------------------- Gain on disposition of assets 10,516 14,430 Loss on repurchase of 9 5/8% Notes (1,278) (2,039) Miscellaneous - net 8 (598) (14) (1,072) -------------------------------------------------------------------- 9,246 (598) 12,377 (1,072) ==================================================================== 8. Commitments and Contingencies As at December 31, 1997, the Company was committed to the purchase of a modern second-hand Aframax tanker and a newbuilding Aframax tanker for a total cost of $72.4 million, both of which are scheduled for delivery in March 1998. These acquisitions will be financed with existing lines of credit and cash balances. The Company was also committed to time-charter-in a modern second-hand Aframax tanker for a period of three years, commencing in the summer of 1998. 9. Subsequent Events Subsequent to December 31, 1997, the Company entered into a new revolving credit facility (the "Revolver") with nine commercial banks providing for borrowings of up to $200 million in order to refinance $105 million of existing floating rate debt and to replace the existing revolving credit facility. The Revolver is collateralized by first priority mortgages granted on eight of the Company's vessels, together with certain other related collateral, and a guarantee from the Company for all amounts outstanding under the Revolver. The amount available under the Revolver reduces by $20 million annually commencing January 1999, together with a final balloon reduction coincident with the final annual reduction in January 2006. Interest payments are based on LIBOR plus a margin ranging from 0.50% to 0.75% which depends on the financial leverage of the Company. 9 10 SCHEDULE A TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS (in thousands of U.S. dollars) (Unaudited)
Three Months Ended December 31, 1997 ------------------------------------------------------------------------------------------------ 9 5/8% Notes 8.32% Notes Teekay Teekay Guarantor Guarantor Non-Guarantor Shipping Corp. Shipping Corp Subsidiaries Subsidiaries Subsidiaries Eliminations & Subsidiaries $ $ $ $ $ $ ------------- ------------- ------------ ------------- ------------ -------------- Net voyage revenues 13,300 9,110 116,007 (57,725) 80,692 Operating expenses 139 5,937 8,769 92,617 (57,725) 49,737 ------------------------------------------------------------------------------------------------ Income (loss) from vessel operations (139) 7,363 341 23,390 30,955 Net interest income (expense) (8,299) 187 117 (3,598) (11,593) Equity in net income of subsidiaries 38,304 (38,304) Other income (loss) (1,258) 13,839 (3,335) 9,246 ------------------------------------------------------------------------------------------------ Net income 28,608 7,550 458 33,631 (41,639) 28,608 Retained earnings (deficit), beginning of the period 396,248 17,799 (26,168) 178,589 (170,220) 396,248 Dividends declared and paid (6,171) (6,171) ------------------------------------------------------------------------------------------------ Retained earnings (deficit), end of the period 418,685 25,349 (25,710) 212,220 (211,859) 418,685 ================================================================================================
Three Months Ended December 31, 1996 ------------------------------------------------------------------------------------------------ 9 5/8% Notes 8.32% Notes Teekay Teekay Guarantor Guarantor Non-Guarantor Shipping Corp. Shipping Corp Subsidiaries Subsidiaries Subsidiaries Eliminations & Subsidiaries $ $ $ $ $ $ ------------- ------------ ------------ ------------- ------------ -------------- Net voyage revenues 7,657 8,954 105,274 (51,737) 70,148 Operating expenses 122 5,742 8,360 83,298 (51,737) 45,785 ------------------------------------------------------------------------------------------------ Income (loss) from vessel operations (122) 1,915 594 21,976 24,363 Net interest income (expense) (8,578) 42 70 (5,404) (13,870) Equity in net income of subsidiaries 18,547 (18,547) Other income (loss) 48 2,595 (3,241) (598) ------------------------------------------------------------------------------------------------ Net income 9,895 1,957 664 19,167 (21,788) 9,895 Retained earnings (deficit), beginning of the period 366,137 14,227 (9,830) 100,409 (104,806) 366,137 Dividends declared and paid (6,048) (6,048) ------------------------------------------------------------------------------------------------ Retained earnings (deficit), end of the period 369,984 16,184 (9,166) 119,576 (126,594) 369,984 ================================================================================================
- ---------------- (See Note 5) 10 11 SCHEDULE A TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS (in thousands of U.S. dollars) (Unaudited)
Nine Months Ended December 31, 1997 ------------------------------------------------------------------------------------------------ 9 5/8% Notes 8.32% Notes Teekay Teekay Guarantor Guarantor Non-Guarantor Shipping Corp. Shipping Corp Subsidiaries Subsidiaries Subsidiaries Eliminations & Subsidiaries $ $ $ $ $ $ ------------- ------------- ------------ ------------- ------------ -------------- Net voyage revenues 39,796 27,518 335,684 (176,341) 226,657 Operating expenses 262 17,475 26,051 280,213 (176,341) 147,660 ------------------------------------------------------------------------------------------------ Income (loss) from vessel operations (262) 22,321 1,467 55,471 78,997 Net interest income (expense) (25,500) 372 292 (11,645) (36,481) Equity in net income of subsidiaries 82,578 (82,533) 45 Other income (loss) (1,923) 24,269 (10,014) 12,332 ------------------------------------------------------------------------------------------------ Net income 54,893 22,693 1,759 68,095 (92,547) 54,893 Retained earnings (deficit), beginning of the period 382,178 11,056 (18,124) 144,125 (137,057) 382,178 Dividends declared and paid (18,386) (8,400) (9,345) 17,745 (18,386) ------------------------------------------------------------------------------------------------ Retained earnings (deficit), end of the period 418,685 25,349 (25,710) 212,220 (211,859) 418,685 ================================================================================================
Nine Months Ended December 31, 1996 ------------------------------------------------------------------------------------------------ 9 5/8% Notes 8.32% Notes Teekay Teekay Guarantor Guarantor Non-Guarantor Shipping Corp. Shipping Corp. Subsidiaries Subsidiaries Subsidiaries Eliminations & Subsidiaries $ $ $ $ $ $ ------------- ------------ ------------ -------------- ------------ -------------- Net voyage revenues 22,786 26,977 301,047 (146,042) 204,768 Operating expenses 440 16,880 25,611 240,892 (146,042) 137,781 ------------------------------------------------------------------------------------------------ Income (loss) from vessel operations (440) 5,906 1,366 60,155 66,987 Net interest income (expense) (25,841) 101 163 (15,972) (41,549) Equity in net income (loss) of subsidiaries 50,503 (50,887) (384) Other income (loss) 144 8,700 (9,532) (688) ------------------------------------------------------------------------------------------------ Net income 24,366 6,007 1,529 52,883 (60,419) 24,366 Retained earnings (deficit), beginning of the period 363,690 17,377 (1,245) 66,693 (82,825) 363,690 Dividends declared and paid (18,072) (7,200) (9,450) 16,650 (18,072) ------------------------------------------------------------------------------------------------ Retained earnings (deficit), end of the period 369,984 16,184 (9,166) 119,576 (126,594) 369,984 ================================================================================================
- ---------------- (See Note 5) 11 12 SCHEDULE A TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES CONDENSED BALANCE SHEETS (in thousands of U.S. dollars) (Unaudited)
As at December 31, 1997 ------------------------------------------------------------------------------------------------ 9 5/8% Notes 8.32% Notes Teekay Teekay Guarantor Guarantor Non-Guarantor Shipping Corp. Shipping Corp. Subsidiaries Subsidiaries Subsidiaries Eliminations & Subsidiaries $ $ $ $ $ $ -------------- --------------- ------------ ------------ ------------ -------------- ASSETS Cash and cash equivalents 103 27,472 15,775 72,783 116,133 Other current assets 41 564 566 56,950 (18,037) 40,084 ------------------------------------------------------------------------------------------------ Total current assets 144 28,036 16,341 129,733 (18,037) 156,217 Vessels and equipment (net) 131,803 332,968 774,197 1,238,968 Advances due from subsidiaries 330,942 (330,942) Other assets (principally marketable securities, and investments in subsidiaries) 712,844 36,188 (712,849) 36,183 ------------------------------------------------------------------------------------------------ 1,043,930 159,839 349,309 940,118 (1,061,828) 1,431,368 ================================================================================================ LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities 13,865 2,702 5,515 97,773 (103) 119,752 Long-term debt 350,702 281,551 632,253 Due to (from) parent (40) 174 337,693 (337,827) ------------------------------------------------------------------------------------------------ Total liabilities 364,567 2,662 5,689 717,017 (337,930) 752,005 ------------------------------------------------------------------------------------------------ Stockholders' Equity Capital stock 260,678 10 23 5,933 (5,966) 260,678 Contributed capital 131,818 369,307 4,948 (506,073) Retained earnings (deficit) 418,685 25,349 (25,710) 212,220 (211,859) 418,685 ------------------------------------------------------------------------------------------------ Total stockholders' equity 679,363 157,177 343,620 223,101 (723,898) 679,363 ------------------------------------------------------------------------------------------------ 1,043,930 159,839 349,309 940,118 (1,061,828) 1,431,368 ================================================================================================
As at March 31, 1997 ------------------------------------------------------------------------------------------------ 9 5/8% Notes 8.32% Notes Teekay Teekay Guarantor Guarantor Non-Guarantor Shipping Corp. Shipping Corp. Subsidiaries Subsidiaries Subsidiaries Eliminations & Subsidiaries $ $ $ $ $ $ ---------------- ------------ ------------ ------------- ------------ -------------- ASSETS Cash and cash equivalents 32 9,248 8,732 99,511 117,523 Other current assets 128 667 755 40,009 (82) 41,477 ------------------------------------------------------------------------------------------------ Total current assets 160 9,915 9,487 139,520 (82) 159,000 Vessels and equipment (net) 137,486 344,315 714,536 1,196,337 Advances due from subsidiaries 362,704 (362,704) Other assets (principally investments in subsidiaries) 649,337 11,171 (643,007) 17,501 ------------------------------------------------------------------------------------------------ 1,012,201 147,401 353,802 865,227 (1,005,793) 1,372,838 ================================================================================================ LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities 7,386 4,573 2,581 65,122 (82) 79,580 Long-term debt 375,000 288,443 663,443 Due to (from) parent (56) 15 356,656 (356,615) ------------------------------------------------------------------------------------------------ Total liabilities 382,386 4,517 2,596 710,221 (356,697) 743,023 ------------------------------------------------------------------------------------------------ Stockholders' Equity Capital stock 247,637 10 23 5,933 (5,966) 247,637 Contributed capital 131,818 369,307 4,948 (506,073) Retained earnings (deficit) 382,178 11,056 (18,124) 144,125 (137,057) 382,178 ------------------------------------------------------------------------------------------------ Total stockholders' equity 629,815 142,884 351,206 155,006 (649,096) 629,815 ------------------------------------------------------------------------------------------------ 1,012,201 147,401 353,802 865,227 (1,005,793) 1,372,838 ================================================================================================
- ---------------- (See Note 5) 12 13 SCHEDULE A TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES CONDENSED STATEMENTS OF CASH FLOWS (in thousands of U.S. dollars) (Unaudited)
Nine Months Ended December 31, 1997 ------------------------------------------------------------------------------------------------ 9 5/8% Notes 8.32% Notes Teekay Teekay Guarantor Guarantor Non-Guarantor Shipping Corp. Shipping Corp. Subsidiaries Subsidiaries Subsidiaries Eliminations & Subsidiaries $ $ $ $ $ $ -------------- ------------ ------------ ------------- ------------ -------------- Cash and cash equivalents provided by (used for) OPERATING ACTIVITIES ------------------------------------------------------------------------------------------------ Net cash flow from operating activities (17,113) 30,374 17,844 95,823 126,928 ------------------------------------------------------------------------------------------------ FINANCING ACTIVITIES Proceeds from long-term debt 79,600 79,600 Repayments of long-term debt (26,978) (49,524) (76,502) Net proceeds from issuance of Common Stock 4,822 4,822 Other 21,595 (8,384) (9,120) (14,515) (10,424) ------------------------------------------------------------------------------------------------ Net cash flow from financing activities (561) (8,384) (9,120) 15,561 (2,504) ------------------------------------------------------------------------------------------------ INVESTING ACTIVITIES Expenditures for vessels and equipment (3,766) (1,681) (132,992) (138,439) Other 17,745 0 0 (5,120) 12,625 ------------------------------------------------------------------------------------------------ Net cash flow from investing activities 17,745 (3,766) (1,681) (138,112) (125,814) ------------------------------------------------------------------------------------------------ Increase (decrease) in cash and cash equivalents 71 18,224 7,043 (26,728) (1,390) Cash and cash equivalents, beginning of the period 32 9,248 8,732 99,511 117,523 ------------------------------------------------------------------------------------------------ Cash and cash equivalents, end of the period 103 27,472 15,775 72,783 116,133 ================================================================================================
Nine Months Ended December 31, 1996 ------------------------------------------------------------------------------------------------ 9 5/8% Notes 8.32% Notes Teekay Teekay Guarantor Guarantor Non-Guarantor Shipping Corp. Shipping Corp. Subsidiaries Subsidiaries Subsidiaries Eliminations & Subsidiaries $ $ $ $ $ $ -------------- ------------ ------------ ------------- ------------ -------------- Cash and cash equivalents provided by (used for) OPERATING ACTIVITIES ------------------------------------------------------------------------------------------------ Net cash flow from operating activities (15,043) 14,418 16,914 89,825 106,114 ------------------------------------------------------------------------------------------------ FINANCING ACTIVITIES Proceeds from long-term debt 220,000 220,000 Repayments of long-term debt (224,012) (224,012) Net proceeds from issuance of Common Stock 705 705 Other (2,469) (7,200) (9,450) 8,218 (10,901) ------------------------------------------------------------------------------------------------ Net cash flow from financing activities (1,764) (7,200) (9,450) 4,206 (14,208) ------------------------------------------------------------------------------------------------ INVESTING ACTIVITIES Expenditures for vessels and equipment (2,919) (28) (66,424) (69,371) Other 16,922 (7) 23 (16,656) 282 ------------------------------------------------------------------------------------------------ Net cash flow from investing activities 16,922 (2,926) (5) (83,080) (69,089) ------------------------------------------------------------------------------------------------ Increase in cash and cash equivalents 115 4,292 7,459 10,951 22,817 Cash and cash equivalents, beginning of the period 28 8,613 5,210 87,929 101,780 ------------------------------------------------------------------------------------------------ Cash and cash equivalents, end of the period 143 12,905 12,669 98,880 124,597 ================================================================================================
- ---------------- (See Note 5) 13 14 TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES December 31, 1997 PART I - FINANCIAL INFORMATION ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS General Teekay Shipping Corporation (the "Company") is a leading provider of international crude oil and petroleum product transportation services to major oil companies, major oil traders, and government agencies, principally in the region spanning from the Red Sea to the U.S. West Coast. The Company's current operating fleet consists of 44 tankers, including 39 Aframax oil tankers and oil/bulk/ore carriers (including two vessels time-chartered-in), four smaller tankers, and one VLCC, for a total cargo-carrying capacity of approximately 4.3 million tonnes. The Company is also committed to the purchase of two additional Aframax tankers, which are scheduled for delivery in March 1998. Approximately 70% of the Company's net voyage revenue is currently derived from spot voyages. The balance of the Company's revenue is generated by two other modes of employment: time charters, whereby vessels are chartered to customers for a fixed period; and contracts of affreightment ("COAs"), whereby the Company carries an agreed quantity of cargo for a customer over a specified trade route over a specified period of time. In aggregate, approximately 87% of the Company's net voyage revenue is currently derived from spot voyages or spot market- related COAs and time-charters. This dependence on the spot market, which is within industry norms, contributes to the volatility of the Company's revenue, cash flow from operations, and net income. Management believes that the Company has a competitive advantage over other tanker owners in the Aframax spot market. Management also believes that the Company's dependence on the spot market will decrease by approximately 10% commencing in the fourth quarter of fiscal 1998 as a result of the long-term Australian contracts the Company entered into in December 1997 (see Item 5 of Part II below). The Company will operate three vessels on time-charter at fixed rates for periods ranging from 10 to 13 years and one floating storage off loading (FSO) facility on time-charter at fixed rates for a period of 8 to 14 years. Historically, the tanker industry has been cyclical, experiencing volatility in profitability resulting from changes in the supply of and demand for tankers. Additionally, tanker markets have exhibited seasonal variations in charter rates. Tanker markets are typically stronger in the winter months as a result of increased oil consumption in the northern hemisphere and unpredictable winter weather patterns which tend to disrupt vessel scheduling. Bulk shipping industry freight rates are commonly measured at the net voyage revenue level in terms of "time charter equivalent" (or "TCE") rates, defined as voyage revenues less voyage expenses (excluding commissions), divided by revenue-generating ship-days for the round-trip voyage. Voyage revenues and voyage expenses are a function of the type of charter, either spot charter or time charter, and port, canal and fuel costs depending on the trade route upon which a vessel is sailing, in addition to being a function of the level of shipping freight rates. For this reason, shipowners base economic decisions regarding the deployment of their vessels upon anticipated TCE rates, and industry analysts typically measure bulk shipping freight rates in terms of TCE rates. Therefore, the discussion of revenue below focuses on net voyage revenue and TCE rates. 14 15 Three Months Ended December 31, 1997 versus Three Months Ended December 31, 1996 The Company's net income was $28.6 million, or 99 cents per share, in the third quarter of fiscal 1998, which includes $10.5 million, or 36 cents per share, in gains on asset sales. In comparison, the Company earned $9.9 million, or 35 cents per share, in the third quarter of fiscal 1997, which did not include any gains or losses on asset sales. A combination of firm freight rate levels for Aframax tankers in the Indo-Pacific basin and lower bunker fuel costs during the third quarter of fiscal 1998 contributed to a stronger quarter in comparison to one year ago. Income from Vessel Operations The improvement in freight rates resulted in a 27.0% increase in income from vessel operations, from $24.4 million in the third quarter of fiscal 1997 to $31.0 million in the third quarter of fiscal 1998. The Company's fleet was 3.9% larger on average in the third quarter of fiscal 1998 than in the third quarter of fiscal 1997. During the first nine months of fiscal 1998, the Company added four modern Aframax tankers (including two time-chartered-in vessels) and two product tankers to its fleet, and sold three older Aframax tankers. Net voyage revenues increased 15.0% to $80.7 million in the third quarter of fiscal 1998, from $70.1 million in the third quarter of fiscal 1997. This reflects the increase in average fleet size as well as higher TCE rates, as the Company's fleet earned an average TCE rate of $22,613 in the third quarter of fiscal 1998, up 12.6% from $20,076 in the third quarter of fiscal 1997. Total operating expenses increased by 8.6% to $49.9 million in the third quarter of fiscal 1998, from $45.8 million in the third quarter of fiscal 1997, primarily as a result of the two time-chartered-in vessels which were part of the current quarter's fleet, as well as an increase in general and administrative expenses associated with the negotiation of the long-term Australian contracts the Company entered into during the third quarter of fiscal 1998 (see Items 5 of Part II below). Depreciation and amortization expense included amortization of drydocking costs of $2.8 million in the third quarter of fiscal 1998 and $2.6 million in the third quarter of fiscal 1997. Interest Expense Interest expense decreased 12.9% to $13.5 million in the third quarter of fiscal 1998, from $15.5 million in the third quarter of fiscal 1997, reflecting the reduction in the Company's average debt balance which was partly attributable to the repurchase of $24.3 million of 9 5/8% First Preferred Ship Mortgage Notes during fiscal 1998. In addition, the fiscal 1997 amount includes approximately $400,000 in prepayment penalties incurred as a result of debt refinancings completed in October 1996; no such prepayment penalties were incurred in the current quarter. The Company's total debt increased at the end of the current quarter to approximately the same level as one year ago, as a result of the acquisition of vessels near the end of the quarter. See "--Liquidity and Capital Resources". Nine Months Ended December 31, 1997 versus Nine Months Ended December 31, 1996 The Company's net income was $54.9 million, or $1.92 per share, in the first nine months of fiscal 1998, up from $24.4 million, or 87 cents per share, in the first nine months of fiscal 1997, reflecting an improvement in the tanker charter market accompanied by a relatively stable cost environment . Net income for the first nine months of fiscal 1998 included gains on asset sales of $14.4 million, or 50 cents per share, while there were no asset sales in the same period of the prior year. Income from Vessel Operations The combination of increased average TCE rates and a larger fleet operating in a relatively stable cost environment resulted in a 17.9% increase in income from vessel operations, to $79.0 million in the first nine months of fiscal 1998 from $67.0 million in the first nine months of fiscal 1997. 15 16 In the first nine months of fiscal 1998, the Company chartered-in two Aframax tankers, added a new Aframax tanker and three modern second-hand tankers to its fleet, and sold three older Aframax tankers. As a result, the Company's fleet was 4.4% larger on average in the first nine months of fiscal 1998 in comparison to the first nine months of fiscal 1997. Net voyage revenues were $226.7 million in the first nine months of fiscal 1998, an increase of 10.7% as compared to the first nine months of fiscal 1997. In addition to the increase in the Company's fleet size, this reflects the improvement in tanker charter market conditions, as the Company's fleet earned an average TCE rate of $21,211 in the first nine months of fiscal 1998, up 7.5% from $19,732 in the first nine months of fiscal 1997. Total operating expenses increased 7.2% to $147.7 million in the first nine months of fiscal 1998, from $137.8 million in the first nine months of fiscal 1997, primarily as a result of the increase in the size of the Company's fleet. In addition, depreciation and amortization expense included amortization of drydocking costs of $9.2 million in the first nine months of fiscal 1998 in comparison to $7.7 million in the first nine months of fiscal 1997, reflecting the larger than usual number of scheduled drydockings during the past two fiscal years. Interest Expense Interest expense decreased 8.9% to $42.2 million in the first nine months of fiscal 1998, from $46.3 million in the first nine months of fiscal 1997, reflecting the reduction in both the Company's average debt balance and average interest rate which resulted from debt refinancings and principal prepayments. The following table illustrates the relationship between fleet size (measured in ship-days), time charter equivalent ("TCE") per revenue-generating ship-day performance, and operating results per calendar ship-day:
Three Months Ended Nine Months Ended December December 1997 1996 1997 1996 ---------- ---------- --------- --------- Total calendar ship-days 3,922 3,772 11,750 11,247 Non-revenue days 269 199 807 640 - ------------------------------------------------------------------------------------------------------ Revenue-generating ship-days (A) 3,653 3,573 10,943 10,607 - ------------------------------------------------------------------------------------------------------ Net voyage revenue before commissions (B) $82,606 $71,732 $232,109 $209,294 (000's) - ------------------------------------------------------------------------------------------------------ Time charter equivalent (TCE) (B/A) $22,613 $20,076 $21,211 $19,732 - ------------------------------------------------------------------------------------------------------ Operating results per calendar ship-day: Net voyage revenue $20,574 $18,597 $19,290 $18,206 Vessel operating expense 4,731 4,832 4,783 4,848 General and administrative expense 1,345 1,214 1,274 1,216 Drydocking expense 726 694 781 687 - ------------------------------------------------------------------------------------------------------ Operating cash flow per calendar ship-day $13,772 $11,857 $12,452 $11,455 ======================================================================================================
16 17 LIQUIDITY AND CAPITAL RESOURCES The Company's total liquidity, including cash, marketable securities, and undrawn long-term lines of credit, was $254.4 million as at December 31, 1997, virtually unchanged from $258.6 million as of the beginning of the fiscal year. The Company has used its operating cash flow during the first nine months of fiscal 1998 for capital expenditures. Net cash flow from operating activities was $126.9 million in the first nine months of fiscal 1998, compared to $106.1 million in the first nine months of fiscal 1997, reflecting an improvement in tanker charter market conditions, the increase in the size of the Company's fleet, and a reduction in net interest expense. During the first nine months of fiscal 1998, the Company incurred capital expenditures for vessels and equipment of $123.7 million, primarily as a result of the acquisition of two Aframax tankers, the newbuilding HAMANE SPIRIT and the 1990-built TORRES SPIRIT, and two second-hand product tankers, the BARRINGTON and PALMERSTON. These vessel acquisitions were financed with $79.6 million of additional bank debt, and the balance with surplus operating cash flow and proceeds from the sale of three of its older Aframax tankers during the first nine months of fiscal 1998, which amounted to $33.9 million. Capital expenditures for drydocking were higher than average, at $14.7 million in the first nine months of fiscal 1998, reflecting a larger than usual number of scheduled drydockings. The Company is also committed to the purchase of a modern second-hand Aframax tanker and a newbuilding Aframax tanker, both of which are scheduled to be delivered during the fourth quarter of fiscal 1998, for $72.4 million in aggregate cost. It is intended that these acquisitions will be financed through operating cash flow, existing lines of credit, and cash balances. Scheduled debt repayments were $32.7 million during the first nine months of fiscal 1998, up from $13.1 million in the first nine months of fiscal 1997, as a result of debt refinancings which have occurred over the past fifteen months. During the first nine months of fiscal 1998, in addition to scheduled debt repayments, the Company repurchased a principal amount of $24.3 million of its 9 5/8% First Preferred Ship Mortgage Notes and prepaid $18.0 million of its floating rate debt. Subsequent to December 31, 1997, the Company refinanced approximately $105.0 million of its floating rate debt and replaced the existing corporate revolving credit facility with a new $200 million corporate revolving credit facility (the "Revolver") at improved rates and credit terms. The amount available under the Revolver reduces by $20.0 million annually commencing in January 1999, and the Revolver has a final maturity date in January 2006. As at the end of January 1998, the undrawn amount available under the Revolver was $95.0 million. Dividend payments during the first nine months of fiscal 1998 were $18.4 million, or 64.5 cents per share, of which $10.2 million was paid in cash and $8.2 million was paid in the form of common shares issued under the Company's dividend reinvestment plan. FORWARD-LOOKING STATEMENTS This Report on Form 6-K for the quarterly period ended December 31, 1997 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 financial performance, in particular the statements regarding the Company's competitive advantage over other tanker owners in the Aframax spot market, seasonal variations in the tanker market, and the Company's future dependence on the spot market. The following factors are among those that could cause actual results to differ materially from the forward-looking statements and that should be considered in evaluating any such statement: changes in production of or demand for oil and petroleum products, either generally or in particular regions, including Asia; greater than anticipated levels of tanker newbuilding orders or less than anticipated rates of tanker scrapping; changes in trading patterns significantly impacting overall tanker tonnage 17 18 requirements; unanticipated changes in laws and regulations and the Company's ability to comply with all existing and future laws and regulations; changes in demand for modern, high quality vessels; risks incident to vessel operation, including pollution; whether, as is typical, oil consumption in the northern hemisphere will increase in the fall and winter months and unpredictable weather patterns in the winter months will tend to disrupt vessel scheduling, factors that historically have resulted in increased oil price volatility and increased oil trading activity; significant changes in the Company's fleet size; and other risks detailed from time to time in the Company's periodic reports filed with the U.S. Securities and Exchange Commission. Certain of these factors affect whether oil consumption growth is met by increased production in the Mideast, or by suppliers closer to markets, a variable which affects tonne-mile demand growth. The Company may issue additional written or oral forward-looking statements from time to time which are qualified in their entirety by the cautionary statement contained in this paragraph and in other reports filed by the Company with the U.S. Securities and Exchange Commission. 18 19 TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES DECEMBER 31, 1997 PART II: OTHER INFORMATION Item 1 - Legal Proceedings None Item 2 - Changes in Securities None Item 3 - Defaults Upon Senior Securities None Item 4 - Submission of Matters to a Vote of Security Holders None Item 5 - Other Information On December 10, 1997, the Company entered into a long-term contract with Apache Energy Limited ("Apache") to provide a floating storage and offloading (FSO) facility for their Stag Field development, which is located offshore Western Australia. Pursuant to the contract, the Company is converting one of its existing Aframax tankers to an FSO which will be time-chartered to Apache at fixed rates for 8 to 14 years, commencing March 1998. On December 18, 1997, the Company acquired the tanker operations of Australian Petroleum Pty. Ltd. ("APPL"), consisting of its wholly owned shipping subsidiary, Australian Tankships Pty. Ltd., and two product tankers, the 1989-built BARRINGTON and the 1990-built PALMERSTON. The Company is operating these two vessels, along with one of its existing Aframax tankers, under long-term time-charter contracts with APPL. In addition, the Company is operating an APPL Aframax tanker under a management agreement. On February 4, 1998, the Board of Directors announced that Jim Hood, 63, will retire on March 31, 1998 after more than twenty years with the Teekay Group, the last six years as its President and Chief Executive Officer. He will be succeeded by Bjorn Moller, currently the Company's Chief Operating Officer, who will also replace Mr. Hood as a member of the Company's Board of Directors. Mr. Moller, 40, will bring to his new role as President and Chief Executive 19 20 Officer experience from twenty years in shipping and more than ten years in senior management positions with the Company. He has headed the Company's overall operations since January 1997, following his promotion to the position of Chief Operating Officer as part of the Company's succession planning process. Over the past decade Mr. Moller has played a key role in the growth and success of the Company while overseeing corporate commercial strategy and new business development. Prior to this, Mr. Moller headed the Company's European chartering operations. Item 6 - Exhibits and Reports on Form 6-K a. Exhibits 27.1 Financial Data Schedule b. Reports on Form 6-K None THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT OF THE COMPANY ON FORM F-3 FILED WITH THE COMMISSION ON OCTOBER 4, 1995. 20 21 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. TEEKAY SHIPPING CORPORATION Date: February 13, 1998 By: /s/ Peter S. Antturi ----------------------- Peter S. Antturi Chief Financial Officer 21 EX-27.1 2 FDS
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS MAR-31-1998 APR-01-1997 DEC-31-1997 116,133 1,000 24,298 0 0 156,217 1,717,287 478,319 1,431,368 119,752 632,253 0 0 260,678 418,685 1,431,368 0 305,063 0 78,406 147,660 0 42,243 54,893 0 54,893 0 0 0 54,893 1.92 1.90
-----END PRIVACY-ENHANCED MESSAGE-----