Teekay Group to Postpone Investor Day on October 2, 2019
September 30 2019 - 2:30AM
Teekay Corporation (Teekay) (NYSE:TK), Teekay LNG Partners L.P.
(Teekay LNG) (NYSE:TGP), and Teekay Tankers Ltd. (Teekay Tankers)
(NYSE:TNK) (collectively, the Teekay Group or the Company)
announced today that they have decided to postpone the Teekay Group
investor and analyst meeting previously scheduled to take place in
New York City on Wednesday, October 2, 2019.
While the Teekay Group was looking forward to
providing an extensive strategic and market update to the
investment community, in order to fully focus on avoiding undue
disruption to Teekay LNG’s business from certain complex issues
that have recently emerged, the Teekay Group has determined that it
would be prudent to postpone the New York event at this time.
The Company is working with its joint venture partner to
expeditiously resolve this issue and will provide further updates
on the situation as and when appropriate. The Teekay Group will
provide details on the rescheduled investor and analyst meeting
once a solution has been reached and sincerely apologizes for any
inconvenience caused by this postponement.
On September 25, 2019, the United States
Government, by an Executive Office of Foreign Assets Control (OFAC)
Order, imposed sanctions on two subsidiaries of leading Chinese
state-owned shipping and logistics company COSCO, including COSCO
Shipping Tanker (Dalian) Co., Ltd. (COSCO Dalian), for allegedly
trading oil with Iran with their owned vessels. COSCO Dalian is a
direct 50% shareholder in China LNG Shipping (Holdings) Limited
(CLNG). CLNG was not listed on the recent OFAC Order or otherwise
directly implicated in any sanctioned activity, but by virtue of
being 50%-owned by COSCO Dalian, CLNG currently qualifies as a
“Blocked Person” under OFAC rules. CLNG, in turn, owns a 50%
interest in Teekay LNG’s Yamal LNG joint venture (the Yamal LNG
Joint Venture), which owns four on-the-water ARC7 LNG carriers and
two ARC7 LNG carrier newbuildings. As a result of CLNG’s 50%
interest, the Yamal LNG Joint Venture also currently qualifies as a
“Blocked Person” under OFAC rules. Management has been
advised by CLNG that it is actively engaged in seeking a prompt
resolution to this issue.
For clarity, the Teekay Group has not traded and
will not trade with Iran and will not act in contravention of any
trading sanctions.
With respect to Teekay Tankers’ business, given
the significant size of COSCO Dalian’s tanker fleet, these same
COSCO sanctions are having a pronounced positive impact on spot
tanker rates.
The Teekay Group plans to host a conference call
on Monday, September 30, 2019 at 3:00 p.m. (ET) to discuss these
developments. All shareholders and interested parties are invited
to listen to the live conference call by dialing (888) 204-4368 or
(647) 794-4605, if outside North America, and quoting conference ID
code 1930889.
About Teekay
Teekay is a leading provider of international
crude oil and gas marine transportation services and also provides
offshore production. Teekay provides these services primarily
through its directly-owned fleet and its controlling ownership
interests in Teekay LNG Partners L.P. (NYSE:TGP), the world’s third
largest independent owner and operator of LNG carriers, and Teekay
Tankers Ltd. (NYSE:TNK), one of the world’s largest owners and
operators of mid-sized crude tankers. The consolidated Teekay
entities manage and operate total assets under management of
approximately $12 billion, comprised of approximately 150 liquefied
gas, offshore, and conventional tanker assets. With 12 operating
offices around the world and approximately 5,700 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”.
About Teekay LNG
Teekay LNG Partners is one of the world’s
largest independent owners and operators of LNG carriers, providing
LNG, LPG and crude oil marine transportation services primarily
under long-term, fee-based charter contracts through its interests
in 49 LNG carriers (including two newbuildings), 22 mid-size LPG
carriers, seven multi-gas carriers, and one conventional tanker.
The Partnership’s ownership interests in these vessels range from
20 to 100 percent. In addition, the Partnership owns a 30 percent
interest in a regasification terminal, which is currently under
construction. Teekay LNG Partners is a publicly-traded master
limited partnership formed by Teekay Corporation (NYSE:TK) as part
of its strategy to expand its operations in the LNG and LPG
shipping sectors.
Teekay LNG Partners’ common units and preferred
units trade on the New York Stock Exchange under the symbol “TGP”,
“TGP PR A” and “TGP PR B”, respectively.
About Teekay Tankers
Teekay Tankers currently owns a fleet of 56
double-hull tankers (including 30 Suezmax tankers, 17 Aframax
tankers, nine Long Range 2 (LR2) product tankers), and three
ship-to-ship support vessels, and also has eight contracted time
charter-in vessels. Teekay Tankers’ vessels are typically employed
through a mix of short- or medium-term fixed-rate time charter
contracts and spot tanker market trading. The Company also owns a
Very Large Crude Carrier (VLCC) through a 50 percent-owned joint
venture. In addition, Teekay Tankers owns a ship-to-ship transfer
business. Teekay Tankers was formed in December 2007 by Teekay
Corporation (NYSE:TK) as part of its strategy to expand its
conventional oil tanker business.
Teekay Tankers’ common stock trades on the New
York Stock Exchange under the symbol “TNK.”
For Investor Relations enquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website:
www.teekay.com
Forward Looking Statement
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: the timing on
the Teekay Group’s rescheduled investor and analyst meeting; the
timing and certainty of resolving the sanctions-related issues
facing the Yamal LNG Joint Venture; the Teekay Group’s compliance
with trading sanctions; and the impact of the COSCO sanctions on
the spot 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:
failure to find a solution to the sanctions-related issues facing
the Yamal LNG Joint Venture; further sanctions imposed by OFAC on
COSCO and its related entities; tanker market reaction to the
sanctions; and other factors discussed in Teekay’s, Teekay LNG’s
and Teekay Tankers’ filings from time to time with the SEC,
including its Annual Report on Form 20-F for the fiscal year ended
December 31, 2018. The Teekay Group 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 Teekay Group’s expectations with respect
thereto or any change in events, conditions or circumstances on
which any such statement is based.
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