EX-1 3 o06541ex1.txt EARNINGS RELEASE Exhibit 1 [TK LOGO] TEEKAY SHIPPING CORPORATION TK HOUSE, BAYSIDE EXECUTIVE PARK, WEST BAY STREET & BLAKE ROAD P.O. BOX AP-59213, NASSAU, BAHAMAS EARNINGS RELEASE TEEKAY SHIPPING CORPORATION REPORTS FOURTH QUARTER PROFIT OF $31.2 MILLION 4TH QUARTER HIGHLIGHTS o Net income of $31.2 million, or $0.78 per share o International Fleet TCE earnings of $21,203 per day o Completed $100 million add-on Senior Notes issue o Repurchased, as of December 31, 2001, a total of 512,800 shares Nassau, The Bahamas, February 20, 2002 - Teekay Shipping Corporation today reported net income of $31.2 million, or $0.78 per share, for the quarter ended December 31, 2001, compared to net income of $122.5 million, or $3.04 per share, for the quarter ended December 31, 2000. Net voyage revenues for the quarter were $152.2 million, compared to $206.7 million recorded in the same period last year, while income from vessel operations decreased to $46.1 million, from $133.5 million. The results for the current quarter over the same period last year reflect a significant decline in tanker charter rates from the record high levels experienced during the first half of 2001, partially offset by the acquisition of Ugland Nordic Shipping ASA in March 2001. Net income for the year ended December 31, 2001 was $336.5 million, or $8.31 per share, compared to $270.0 million, or $6.86 per share, for the same period last year. The results for the year ended December 31, 2001 include a $10.2 million, or $0.25 per share, gain on sale of three vessels that were sold by a joint venture, in which Teekay owns a 50% interest. Net voyage revenues for the year ended December 31, 2001 were $789.5 million, compared to $644.3 million in the same period last year, while income from vessel operations increased to $383.5 million from $327.7 million. The following key indicators serve to highlight changes in operating performance:
THREE MONTHS ENDED YEARS ENDED DECEMBER 31, DECEMBER 31, ------------------ % ------------------ % 2001 2000 CHANGE 2001 2000 CHANGE ------- ------- ------ ------- ------- ------ INTERNATIONAL TANKER FLEET: Revenue-generating ship-days 5,093 4,930 3.3% 20,154 20,513 -1.8% TCE per revenue-generating ship-day $21,203 $37,218 -43.0% $30,542 $27,138 12.5% TCE per calendar-ship-day $18,790 $33,399 -43.7% $27,281 $24,997 9.1% Vessel operating expense per calendar-ship-day $ 5,529 $ 4,062 36.1% $ 5,374 $ 4,980 7.9% Operating cash flow per calendar-ship-day $11,029 $27,329 -59.6% $19,747 $18,145 8.8% OIL/BULK/ORE ("OBO") FLEET: Revenue-generating ship-days 611 704 -13.2% 2,485 2,754 -9.8% TCE per revenue-generating ship-day $11,041 $16,611 -33.5% $16,856 $15,453 9.1% TCE per calendar-ship-day $ 8,605 $15,144 -43.2% $13,632 $13,781 -1.1% Vessel operating expense per calendar-ship-day $ 6,378 $ 2,764 130.8% $ 6,246 $ 5,147 21.4% Operating cash flow per calendar-ship-day -$378 $10,766 -103.5% $ 5,195 $ 7,159 -27.4% UNS FLEET: Calendar-ship-days 1,104 -- N/A 3,470 -- N/A Operating cash flow per calendar-ship-day $14,928 -- N/A $15,905 -- N/A AUSTRALIAN FLEET: Calendar-ship-days 460 368 25.0% 1,716 1,464 17.2% Operating cash flow per calendar-ship-day $16,643 $14,507 14.7% $15,583 $14,347 8.6%
- MORE - TANKER MARKET Tanker charter rates declined during the fourth quarter and have continued to weaken into the first quarter of 2002. In response to slowing economic growth, OPEC implemented a series of oil production cutbacks during 2001, which caused a reduction in the demand for crude oil transportation services. OPEC oil production was 2.7 million barrels per day ("mb/d") lower in the fourth quarter of 2001 compared to the corresponding period in the previous year, while non-OPEC production rose by 1.1 mb/d over that same period. Since a large proportion of OPEC oil production is exported via long-haul tanker routes, this shift from OPEC to non-OPEC oil production, which is primarily exported via short-haul tanker routes, further reduced tanker demand. The International Energy Agency ("IEA") estimates that global oil demand, an underlying driver of tanker demand, averaged 76.3 mbpd during the fourth quarter, up 0.9% over the preceding quarter, but 0.7% lower than the fourth quarter of last year. Annual global oil demand growth during 2001 was only marginally positive at 0.1% as a result of negative year-on-year growth in the second half of 2001. As of February 8, 2002, the IEA was forecasting oil demand of 76.5 mbpd for 2002, a 0.7% increase over 2001. The size of the world tanker and OBO fleet decreased to 304.2 million deadweight tonnes ("mdwt") as of December 31, 2001, down 2.3% from the end of the previous quarter. This decrease was due to a high pace of scrapping of older tankers which are experiencing poor earnings, rising maintenance costs and near-term regulatory phase-out. A total of 7.6 mdwt was sold for demolition in the fourth quarter, compared to 2.9 mdwt in the previous quarter, while deliveries of tanker newbuildings during the fourth quarter totalled 2.1 mdwt, down from 2.8 mdwt in the previous quarter. Overall for 2001, the tanker fleet declined by 6.2 mdwt, or 2.0%, the largest net reduction in tanker supply in over a decade. The world tanker and OBO orderbook decreased to 63.7 mdwt at December 31, 2001, representing 20.9% of the total world tanker and OBO fleet, down from 65.0 mdwt at September 30, 2001. The Aframax tanker orderbook decreased from 125 vessels at September 30, 2001 to 120 vessels as of December 31, 2001, or from 19.8% to 19.1% of the world Aframax fleet (including Aframax-size OBOs). TEEKAY FLEET As of December 31, 2001, the Teekay fleet (excluding vessels managed for third parties) consisted of 96 vessels, including six time-chartered-in Aframax tankers and eight newbuilding tankers on order. The following is a summary of the Teekay fleet as of this date:
TYPE NUMBER DWT ---- ------ --------- International Tanker Fleet: 100%-owned Aframaxes 53 5,298,600 Time-chartered-in Aframaxes 6 621,200 VLCC 1 280,700 Newbuilding Aframaxes on order 2 224,000 Newbuilding Suezmaxes on order 3 456,000 OBO Fleet (1) 8 625,900 Australian Fleet 5 381,900 UNS Fleet: Shuttle Tankers (2) 15 1,495,400 Newbuilding Shuttle Tankers on order 3 331,500 --- --------- TOTAL: 96 9,715,200 === =========
(1) Includes one 67%-owned OBO carrier and one 52%-owned OBO carrier. (2) Includes six shuttle tankers of which Teekay's ownership interest ranges from 50% to 89%. - MORE - OTHER HIGHLIGHTS In December 2001, the Company completed an offering of an additional $100 million of its unsecured 8.875% Senior Notes due 2011 at a price of 102.25% of par. The Company used net proceeds from the offering to repay existing secured revolving debt. On September 19, 2001, Teekay announced that its Board of Directors had authorized the repurchase of up to 2,000,000 shares of its common stock. Shares are being repurchased in the open market at times and prices considered appropriate by the Company. As of December 31, 2001, Teekay had repurchased 512,800 shares at an average price of $27.62 per share. Teekay Shipping Corporation is a leading provider of international crude oil and petroleum product transportation services through the world's largest fleet of medium-sized oil tankers. Headquartered in Nassau, Bahamas, with offices in eleven other countries, Teekay employs approximately 400 on-shore and more than 4,000 seagoing staff around the world. The Company's modern fleet 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 trades on the New York Stock Exchange under the symbol "TK". The Company plans to host a conference call at 11 a.m. EDT (8 a.m. PDT) on Thursday, February 21, 2002, to discuss the results for the quarter. All shareholders and interested parties are invited to listen to the live conference call through www.teekay.com. A recording of the call will be available until February 28, 2002 by dialing (719) 457-0820, access code 448321, or via the Company's Web site until March 15, 2002. Contact: Investor Relations Attn: Jerome Holland (604) 844-6654 Web site: www.teekay.com - MORE - SUMMARY CONSOLIDATED STATEMENTS OF INCOME (in thousands of U.S. dollars, except share and per share data)
THREE MONTHS ENDED YEARS ENDED DECEMBER 31, DECEMBER 31, ------------------------- ------------------------- 2001 2000 2001 2000 ---------- ---------- ---------- ---------- (UNAUDITED) NET VOYAGE REVENUES Voyage revenues 213,146 271,078 1,039,056 893,226 Voyage expenses 60,925 64,391 249,562 248,957 ---------- ---------- ---------- ---------- Net voyage revenues 152,221 206,687 789,494 644,269 ---------- ---------- ---------- ---------- OPERATING EXPENSES Vessel operating expenses 41,427 24,762 154,831 125,415 Time-charter hire expense 14,542 13,249 66,019 53,547 Depreciation and amortization 36,810 25,238 136,283 100,153 General and administrative 13,326 9,968 48,898 37,479 ---------- ---------- ---------- ---------- 106,105 73,217 406,031 316,594 ---------- ---------- ---------- ---------- Income from vessel operations 46,116 133,470 383,463 327,675 ---------- ---------- ---------- ---------- OTHER ITEMS Interest expense (15,305) (17,253) (66,249) (74,540) Interest income 1,329 3,354 9,196 13,021 Other income (loss) (943) 2,911 10,108 3,864 ---------- ---------- ---------- ---------- (14,919) (10,988) (46,945) (57,655) ---------- ---------- ---------- ---------- Net income 31,197 122,482 336,518 270,020 ========== ========== ========== ========== Earnings per common share -- Basic $0.79 $3.14 $8.48 $7.02 -- Diluted $0.78 $3.04 $8.31 $6.86 ---------- ---------- ---------- ---------- Weighted-average number of common shares outstanding -- Basic 39,732,985 39,042,772 39,706,799 38,468,158 -- Diluted 40,244,186 40,240,045 40,488,222 39,368,253 ========== ========== ========== ==========
SUMMARY CONSOLIDATED BALANCE SHEETS (in thousands of U.S. dollars)
AS AT DECEMBER 31, AS AT DECEMBER 31, 2001 2000 ------------------ ------------------ ASSETS Cash and short-term marketable securities 179,978 189,381 Other current assets 87,491 106,114 Marketable securities -- long-term 16,026 33,742 Vessels and equipment 2,043,098 1,607,716 Other assets 54,109 37,146 Goodwill 87,079 -- --------- --------- TOTAL ASSETS 2,467,781 1,974,099 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued liabilities 75,495 66,165 Current portion of long-term debt 51,830 72,170 Long-term debt 883,872 725,314 Other long-term liabilities 39,407 7,368 Minority interest 18,977 4,570 Stockholders' equity 1,398,200 1,098,512 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 2,467,781 1,974,099 ========= =========
- MORE - TEEKAY SHIPPING CORPORATION SUPPLEMENTAL INFORMATION (in thousands of U.S. dollars)
THREE MONTHS ENDED DECEMBER 31, 2001 (UNAUDITED) -------------------------------------------------------- INTERNATIONAL OBO UNS AUSTRALIAN TOTAL TANKER FLEET FLEET* FLEET FLEET FLEET $ $ $ $ $ ------------- ------- ------- ---------- ------- Net voyage revenues 104,396 10,829 24,712 12,284 152,221 Vessel operating expenses 27,475 4,694 5,568 3,690 41,427 Time-charter hire expense 10,046 4,496 -- -- 14,542 Depreciation and amortization 23,515 1,642 9,504 2,149 36,810 ------- ------ ------ ------ -------
THREE MONTHS ENDED DECEMBER 31, 2000 (UNAUDITED) -------------------------------------------------------- INTERNATIONAL OBO UNS AUSTRALIAN TOTAL TANKER FLEET FLEET* FLEET FLEET FLEET $ $ $ $ $ ------------- ------- ------- ---------- ------- Net voyage revenues 179,531 18,554 -- 8,602 206,687 Vessel operating expenses 20,180 2,034 -- 2,548 24,762 Time-charter hire expense 5,841 7,408 -- -- 13,249 Depreciation and amortization 22,407 1,003 -- 1,828 25,238 ------- ------ ------ ------ -------
YEAR ENDED DECEMBER 31, 2001 -------------------------------------------------------- INTERNATIONAL OBO UNS AUSTRALIAN TOTAL TANKER FLEET FLEET* FLEET** FLEET FLEET $ $ $ $ $ ------------- ------- ------- ---------- ------- Net voyage revenues 598,538 67,395 80,053 43,508 789,494 Vessel operating expenses 105,519 18,239 17,815 13,258 154,831 Time-charter hire expense 38,430 27,589 -- -- 66,019 Depreciation and amortization 92,737 5,384 30,161 8,001 136,283 ------- ------ ------ ------ -------
YEAR ENDED DECEMBER 31, 2000 -------------------------------------------------------- INTERNATIONAL OBO UNS AUSTRALIAN TOTAL TANKER FLEET FLEET* FLEET FLEET FLEET $ $ $ $ $ ------------- ------- ------- ---------- ------- Net voyage revenues 542,833 66,688 -- 34,748 644,269 Vessel operating expenses 99,239 15,070 -- 11,106 125,415 Time-charter hire expense 27,210 26,337 -- -- 53,547 Depreciation and amortization 89,221 3,912 -- 7,020 100,153 ------- ------ ------ ------ -------
------------ * Time-charter hire expense for the OBO Fleet represents the minority pool participants' share of the OBO pool's net voyage revenues. ** Represents results for the period from March 6, 2001 to December 31, 2001. - MORE - 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 tanker charter rates, and the balance of supply and demand in the crude tanker market. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in production of or demand for oil and petroleum products, either generally or in particular regions; greater than anticipated levels of tanker newbuilding orders or less than anticipated rates of tanker scrapping; changes in trading patterns significantly impacting overall tanker tonnage requirements; changes in applicable industry regulations; changes in the typical seasonal variations in tanker charter rates. - END -