UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________
FORM 6-K
_________________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Date of Report: May 12, 2022
Commission file number 1- 12874
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TEEKAY CORPORATION
(Exact name of Registrant as specified in its charter)
_________________________
4th Floor, Belvedere Building
69 Pitts Bay Road
Hamilton, HM 08 Bermuda
(Address of principal executive offices)
_________________________
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Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F. |
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Form 20-F
ý Form
40- F
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Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1). |
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Yes
¨ No
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Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7). |
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Yes
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Item 1 — Information Contained in this Form 6-K Report
Attached as Exhibit 1 is a copy of an announcement of Teekay
Corporation dated May 12, 2022.
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.
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TEEKAY CORPORATION |
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Date: May 12, 2022 |
By: |
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/s/ Vincent Lok |
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Vincent Lok
Executive Vice President and Chief Financial Officer (Principal
Financial and Accounting Officer)
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
TEEKAY CORPORATION REPORTS
FIRST QUARTER 2022 RESULTS
Highlights
•GAAP
net income attributable to shareholders of Teekay of $0.9 million,
or $0.01 per share, and adjusted net loss attributable to
shareholders of Teekay(2)
of $0.5 million, or $0.01 per share, in the first quarter of 2022
(excluding items listed in
Appendix A
to this release).
•Total
adjusted EBITDA(2)
of $41.8 million in the first quarter of 2022.
•Teekay
Parent entered into an agreement to sell the
Sevan Hummingbird
FPSO unit to a third party, which is expected to close in the
second quarter of 2022 and to largely offset the remaining
decommissioning costs on the unit.
•In
January 2022, Stonepeak completed its acquisition of Teekay LNG,
resulting in Teekay Parent receiving gross proceeds of
approximately $641 million as consideration for all of its
interests in Teekay LNG; Teekay Parent subsequently repaid
approximately $330 million of mostly high-cost debt and is now
largely debt free.
•Teekay
Tankers
secured strong second quarter-to-date
spot tanker rates of $27,400 per day for its Suezmax fleet, $30,900
per day for its Aframax fleet, and $30,400 per day for its LR2
fleet, which are close to double the average rates in the first
quarter of 2022.
Hamilton, Bermuda,
May 12, 2022
- Teekay Corporation (Teekay
or
the Company)
(NYSE:TK) today reported results for the three months ended March
31, 2022. These results include the Company’s publicly listed
consolidated subsidiary, Teekay Tankers Ltd. (Teekay
Tankers)
(NYSE:TNK), and all remaining subsidiaries and equity-accounted
investments. As a result of Stonepeak's acquisition of Teekay LNG
Partners L.P. (Teekay
LNG)
(now known as Seapeak LLC) in January 2022, certain
information in this release presents Teekay LNG and various
subsidiaries that provided the shore-based operations for Teekay
LNG and certain of Teekay LNG’s joint ventures under management
services contracts (collectively,
the Teekay Gas Business)
as a discontinued operation. Teekay, together with its subsidiaries
other than Teekay Tankers, is referred to in this release as
Teekay Parent.
Please refer to the first quarter of 2022 earnings release of
Teekay Tankers, which is available on Teekay's website at
www.teekay.com,
for additional information on Teekay Tankers' results.
Financial Summary
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Three Months Ended |
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March 31, |
December 31, |
March 31, |
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(in thousands of U.S. dollars, except per share
amounts) |
2022 |
2021
(1)
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2021
(1)
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(unaudited) |
(unaudited) |
(unaudited) |
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TEEKAY CORPORATION CONSOLIDATED |
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GAAP FINANCIAL COMPARISON |
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Revenues |
212,720 |
196,493 |
184,483 |
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Loss from vessel operations |
(12,574) |
(27,090) |
(15,076) |
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Net income (loss) attributable to the shareholders of
Teekay |
888 |
(17,387) |
29,951 |
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Earnings (loss) per common share of Teekay |
0.01 |
(0.17) |
0.30 |
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NON-GAAP FINANCIAL COMPARISON |
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Total adjusted EBITDA
(2)
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41,767 |
181,714 |
202,429 |
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Adjusted net (loss) income attributable to shareholders of
Teekay
(2)
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(528) |
8,354 |
11,320 |
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Adjusted net (loss) earnings per share attributable to shareholders
of Teekay
(2)
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(0.01) |
0.08 |
0.11 |
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(1)On
October 4, 2021, Teekay entered into an agreement to sell its
general partner interest in Teekay LNG, all of its common units in
Teekay LNG and various subsidiaries that provided the shore-based
operations for Teekay LNG and certain of Teekay LNG’s joint
ventures under existing management service contracts
(collectively,
the Teekay Gas Business).
Prior to the transaction closing on January 13, 2022, Teekay
maintained control of Teekay LNG by virtue of its 100% ownership
interest in the general partner of Teekay LNG, which was a master
limited partnership. The presentation of certain information in
these consolidated financial statements reflects the Teekay Gas
Business as a discontinued operation of the Company, including in
the historical comparative periods presented.
(2)These
are non-GAAP financial measures. Please refer to “Definitions and
Non-GAAP Financial Measures” and the Appendices to this release for
definitions of these terms and reconciliations of these non-GAAP
financial measures as used in this release to the most
directly
1
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
comparable financial measures under United States generally
accepted accounting principles (GAAP).
These measures include results from both continuing and
discontinued operations.
CEO Commentary
“Our financial results for the first quarter of 2022 were lower
compared to the prior quarter, primarily reflecting the sale and
the resulting deconsolidation of Teekay LNG in mid-January 2022,
including certain transaction and restructuring costs, partially
offset by higher spot tanker rates and the extinguishment of
substantially all of Teekay Parent’s debt,” commented Kenneth Hvid,
Teekay’s President and CEO.
“We have continued to make good progress on winding down our FPSO
business, which we expect to be largely completed by the end of
2022. As expected, the
Hummingbird
FPSO ceased production on the Chestnut oil field at the end of
March 2022, and we recently entered into an agreement to sell the
FPSO unit to a third party. Through this sale, Teekay will not only
avoid incurring costs related to recycling the unit, but we also
currently expect that the sales proceeds will be sufficient to
largely cover the
Hummingbird
FPSO’s remaining decommissioning costs. Lastly, we continue to plan
for the decommissioning and green recycling of the
Foinaven
FPSO, with the majority of the costs expected to be covered by a
contractual lump-sum payment from the customer.”
“Following a weaker start to the year, the tanker market
significantly strengthened in March 2022 following Russia’s
invasion of Ukraine. The market for mid-size tankers, in which
Teekay Tankers has a market-leading position, has strengthened
materially in the second quarter to-date, as Europe is increasingly
replacing short-haul Baltic and Black Sea barrels with crude from
the U.S. Gulf, West Africa, and elsewhere, carried
disproportionately on mid-size tankers. Similarly, Russian crude
exports forced out of Europe are travelling significantly farther
to India and other distant markets that are absorbing the displaced
barrels. We expect that the tanker market will remain volatile in
the near-term and in the longer-term, we are encouraged by the
small tanker orderbook, continued low ordering activity for crude
oil tankers, and minimal shipyard capacity through the middle of
this decade.”
“During the past several years, we have significantly strengthened
our balance sheet through various strategic divestments, which has
created the financial flexibility and optionality that we now have
that is particularly valuable during times of extreme volatility
and global economic uncertainty. We believe our strong balance
sheet, with a net cash position of approximately $300 million,
positions us well to pursue future investments patiently and
selectively where we can leverage our operating franchise and the
proven capabilities of the Teekay platform to create long-term
shareholder value.”
2
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Summary of Results
Teekay Corporation Consolidated
The Company's adjusted net income attributable to shareholders of
Teekay(1)
for the first quarter of 2022 decreased compared to the same
quarter of the prior year, primarily due to the sale of the Teekay
Gas Business in January 2022, which was partially offset by higher
earnings from Teekay Tankers as a result of higher spot tanker
rates and lower vessel operating expenses in the first quarter of
2022, compared to the first quarter of 2021, and lower interest
expense in Teekay Parent due to bond repurchases completed during
the first quarter of 2022.
As the sale of the Teekay Gas Business closed on January 13, 2022,
the Company's consolidated financial results for the first quarter
of 2022 included 13 days of financial results from the Teekay Gas
Business, which is included as part of (Loss) income from
discontinued operations on the
Summary Consolidated Statements of (Loss) Income
for the three months ended March 31, 2022.
In addition, consolidated GAAP net income attributable to
shareholders of Teekay decreased during the first quarter of 2022,
compared to the same quarter of the prior year, mainly due to a
deferred loss of $17.4 million in non-controlling interest relating
to the sale of a vessel by Teekay Tankers, and losses of $12.4
million on bond repurchases during the first quarter of 2022,
partially offset by a net gain of $26.2 million related to the sale
and deconsolidation of the Teekay Gas Business.
Summary Results of Teekay Tankers
Teekay Tankers' GAAP net loss and adjusted net
loss(1)
in the first quarter of 2022, compared to the same quarter of the
prior year, were positively impacted primarily due to higher
average spot tanker rates and full service lightering revenues, as
well as lower vessel operating expenses in the first quarter of
2022 due to vessel sales and the timing of repair and maintenance
activities, partially offset by the expiration of certain
fixed-rate time charter contracts at higher rates during
2021.
Spot tanker rates increased significantly at the end of the first
quarter of 2022, driven primarily by global oil trade disruptions
resulting from Russia’s invasion of Ukraine. A reduction in
European crude oil imports from Russia and the sourcing of
replacement barrels from elsewhere has resulted in significantly
longer voyage lengths which, coupled with the effective removal of
Russian-owned tankers from many routes, has led to a much tighter
tanker market. These changes have been particularly positive for
mid-sized tankers that Teekay Tankers operates, given the
flexibility of the tonnage and their ability to call at a much
wider range of ports relative to Very Large Crude Carriers
(VLCCs).
While uncertainty remains over the near-term, including the
duration and extent of the crisis in Eastern Europe and China’s
latest round of COVID-19 lockdowns, tanker supply fundamentals
continue to be positive over the next few years given the
relatively small tanker newbuild orderbook, which is constrained by
a lack of shipyard capacity through the middle part of this
decade.
Please refer to Teekay Tankers' first quarter of 2022 earnings
release for additional information on the financial results for
this entity.
(1) This is a non-GAAP financial measure. Please refer to
"Definitions and Non-GAAP Financial Measures" and the Appendices to
this release for a definition of this term and a reconciliation of
this non-GAAP financial measure as used in this release to the most
directly comparable financial measures under GAAP.
3
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Summary of Recent Events
Teekay Parent
In March 2022, the charterer of the
Sevan Hummingbird
(Hummingbird)
FPSO unit ceased oil production on the Chestnut oil field, and
therefore, the FPSO charter contract is expected to be terminated
in mid-May 2022 upon completion of the decommissioning activities.
In April 2022, Teekay Parent entered into an agreement to sell
the
Hummingbird
FPSO unit to a third party, which is expected to be completed in
the second quarter of 2022. The sales proceeds are expected to
largely cover the
Hummingbird
FPSO's remaining decommissioning costs.
In April 2021, BP plc (BP)
announced its decision to suspend production from the Foinaven oil
fields and permanently remove the
Petrojarl
Foinaven
(Foinaven)
FPSO unit from the site. In February 2022, BP provided formal
redelivery notice, indicating an expected redelivery date of August
3, 2022, after which Teekay Parent intends to green-recycle the
unit. The majority of the green recycling costs are expected to be
covered by a contract lump-sum payment from BP upon
redelivery.
Teekay Tankers
In February and April 2022, Teekay Tankers completed the previously
announced sales of a 2004-built Suezmax tanker and a 2004-built
Aframax tanker for total gross proceeds of approximately $29
million. In addition, in March 2022, Teekay Tankers entered into an
agreement to sell a 2005-built Aframax tanker for approximately $15
million, which was completed in April 2022.
During March and April 2022, Teekay Tankers completed the debt
refinancing associated with 13 vessels under new sale-leaseback
facilities. These refinancings increased Teekay Tankers' total
liquidity position by approximately $75 million.
4
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Liquidity
As at March 31, 2022, Teekay Parent had total liquidity of
approximately $313.2 million (consisting of cash and cash
equivalents and short-term investments). On a consolidated basis,
as at March 31, 2022, Teekay had consolidated total liquidity of
approximately $491.4 million (consisting of $331.6 million of cash
and cash equivalents and short-term investments, and $159.8 million
of undrawn capacity from its credit facilities).
Pro forma for Teekay Tankers' refinancing of five vessels and the
completion of two vessel sales in April 2022, Teekay's consolidated
total liquidity would have been approximately $544.1 million as at
March 31, 2022.
About Teekay
Teekay is a leading provider of international crude oil and other
marine transportation services. Teekay provides these services
directly and through its controlling ownership interest in 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 $2 billion, comprised of approximately 55
conventional tankers and other marine assets. With offices in 8
countries and approximately 2,500 seagoing and shore-based
employees, Teekay provides a comprehensive set of marine services
to the world’s leading energy companies.
Teekay’s common stock is listed on the New York Stock Exchange
where it trades under the symbol “TK”.
For Investor Relations enquiries contact:
E-mail: investor.relations@teekay.com
Website:
www.teekay.com
5
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Definitions and Non-GAAP Financial Measures
This release includes various financial measures that are non-GAAP
financial measures as defined under the rules of the Securities and
Exchange Commission (SEC).
These non-GAAP financial measures, which include Adjusted Net
Income Attributable to Shareholders of Teekay, Adjusted Equity
Income and Adjusted EBITDA, are intended to provide additional
information and should not be considered substitutes for measures
of performance prepared in accordance with GAAP. In addition, these
measures do not have standardized meanings across companies, and
therefore 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,
as does management.
Non-GAAP Financial Measures
Total Adjusted EBITDA
represents net income (loss) before interest, taxes, depreciation
and amortization, and is adjusted to exclude certain items whose
timing or amount cannot be reasonably estimated in advance or that
are not considered representative of core operating performance.
Such adjustments include foreign currency exchange gains and
losses, any write-downs and/or gains, and/or gains and losses on
sale of operating assets, adjustments for direct financing and
sales-type leases to a cash basis, amortization of in-process
revenue contracts, unrealized gains and losses on derivative
instruments, credit loss provision adjustments, loss on bond
repurchases, loss on deconsolidation, write-downs related to
equity-accounted investments, our share of the above items in
non-consolidated joint ventures which are accounted for using the
equity method of accounting, and other income or loss, for both
continuing operations and discontinued operations.
Total Adjusted EBITDA
also excludes realized gains or losses on interest rate swaps as
management, in assessing the Company's performance, views these
gains or losses as an element of interest expense, and realized
gains or losses on interest rate swaps resulting from amendments or
terminations of the underlying instruments, for continuing and
discontinued operations.
Consolidated Adjusted EBITDA
represents Adjusted EBITDA from vessels that are consolidated on
the Company's financial statements.
Adjusted EBITDA from Equity-Accounted Joint Venture
represents the Company's proportionate share of Adjusted EBITDA
from its equity-accounted joint venture. The Company does not have
the unilateral ability to determine whether the cash generated by
its equity-accounted joint venture is retained within the entity in
which the Company holds the equity-accounted joint venture or
distributed to the Company and other owners. In addition, the
Company does not control the timing of any such distributions to
the Company and other owners.
Total Adjusted EBITDA
represents Consolidated Adjusted EBITDA plus Adjusted EBITDA from
Equity-Accounted Joint Venture.
Adjusted EBITDA is a non-GAAP financial measure used by certain
investors and management to measure the operational performance of
companies. Please refer to
Appendix C
of this release for reconciliations of Adjusted EBITDA to net
(loss) income and equity loss, respectively, from continuing and
discontinued operations, which are the most directly comparable
GAAP measures reflected in the Company’s consolidated financial
statements.
Adjusted Net Income Attributable to Shareholders of Teekay
excludes items of income or loss from GAAP net (loss) income 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, as does management. Please refer
to
Appendix A
of this release for a reconciliation of this non-GAAP financial
measure to net income (loss), and refer to footnote (4) of the
statements of (loss) income for a reconciliation of adjusted equity
income to equity income, the most directly comparable GAAP measure
reflected in the Company’s consolidated financial
statements.
6
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Important Notice to Reader
Sale of Teekay Gas Business
On October 4, 2021, Teekay entered into an agreement to sell to
affiliates of Stonepeak (a) its general partner interest in Teekay
LNG, (b) all of its common units in Teekay LNG
(now known as Seapeak LLC (or
Seapeak),
and (c) various subsidiaries that provided the shore-based
operations for Teekay LNG and certain of Teekay LNG’s joint
ventures under existing management services contracts
(collectively, the
Teekay Gas Business).
Prior to the transaction closing on January 13, 2022, Teekay
maintained control of Teekay LNG by virtue of its 100% ownership
interest in the general partner of Teekay LNG, which was a master
limited partnership.
The presentation of certain information in these consolidated
financial statements reflects that the Teekay Gas Business is a
discontinued operation of the Company, and historical comparative
periods presented have been recast as a result.
In accordance with GAAP, the results for the Teekay Gas Business
discontinued operations were prepared on the following
basis:
•All
revenues, expenses, assets and liabilities that were solely and
directly related to the Teekay Gas Business are included. However,
assets that were shared amongst the Teekay group and costs that
were allocated amongst the Teekay group (i.e., shared services
costs) were not included. For example, general and administrative
expenses for the Teekay Gas Business discontinued operations did
not include allocations of costs from shared corporate units. As a
result, the general and administrative expenses of the Teekay Gas
Business discontinued operations do not represent a fully-built-up
cost, but rather only the direct costs incurred by Teekay LNG and
the costs associated with functions that were fully-dedicated to
providing services to Teekay LNG and certain of its joint ventures.
As such, Teekay LNG’s share of the costs incurred by the corporate
units in Teekay is not included in the discontinued operations
results. For the three months ended December 31, 2021 and March 31,
2021, such excluded corporate unit cost allocation amounts are
estimated to be $3.4 million and $3.8 million, respectively.
Reallocating such amounts from continuing operations to the Teekay
Gas Business discontinued operations may not result in historical
financial results for Teekay's continuing operations, as adjusted,
that are indicative of future costs of Teekay's continuing
operations.
•Debt
and associated interest expense of credit facilities that were
assumed by Stonepeak as part of its purchase of Teekay LNG and the
credit facility required to be repaid by Teekay Parent due to the
transaction (i.e., Teekay Parent’s equity margin revolving credit
facility) were included in the Teekay Gas Business discontinued
operations. For the three months ended December 31, 2021 and March
31, 2021, such included amounts were $1.3 million and $0.9 million,
respectively. Conversely, debt and associated interest expense of
credit facilities or debt instruments that the Company may elect to
repay as a result of the transaction (i.e., Teekay Parent’s 9.25%
Senior Secured Notes due in November 2022 (or the
2022 Notes)
and Teekay Parent's 5% Convertible Senior Notes due in January 2023
(or the
Convertible Notes))
were excluded from the Teekay Gas Business discontinued
operations.
7
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Teekay Corporation
Summary Consolidated Statements of (Loss) Income
(in thousands of U.S. dollars, except share and per share
data)
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Three Months Ended |
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March 31, |
December 31, |
March 31, |
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2022 |
2021
(1)
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2021
(1)
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(unaudited) |
(unaudited) |
(unaudited) |
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Revenues |
212,720 |
196,493 |
184,483 |
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Voyage expenses |
(101,622) |
(95,968) |
(69,042) |
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Vessel operating expenses |
(71,941) |
(72,981) |
(78,536) |
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Time-charter hire expenses |
(5,550) |
(5,161) |
(5,271) |
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Depreciation and amortization |
(25,080) |
(26,668) |
(26,684) |
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General and administrative expenses |
(16,083) |
(17,018) |
(19,008) |
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Write-down of assets |
(421) |
(4,270) |
(715) |
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Restructuring charges
(2)
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(4,597) |
(1,517) |
(303) |
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Loss from vessel operations |
(12,574) |
(27,090) |
(15,076) |
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Interest expense |
(10,002) |
(15,406) |
(18,417) |
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Interest income |
297 |
56 |
39 |
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Realized and unrealized gains on non-designated derivative
instruments
(3)
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1,967 |
565 |
703 |
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Equity loss
(4)
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(754) |
(12,046) |
(359) |
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Income tax recovery |
636 |
1,560 |
608 |
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Loss on bond repurchases
(5)
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(12,410) |
— |
— |
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Other – net |
(283) |
(5,936) |
(951) |
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Net loss from continuing operations |
(33,123) |
(58,297) |
(33,453) |
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(Loss) income from discontinued operations
(6)
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(20,276) |
41,450 |
94,957 |
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Net (loss) income |
(53,399) |
(16,847) |
61,504 |
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Net loss (income) attributable to non-controlling interests
(6)
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54,287 |
(540) |
(31,553) |
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Net income (loss) attributable to the shareholders of Teekay
Corporation |
888 |
(17,387) |
29,951 |
|
|
|
|
|
|
|
|
|
Amounts attributable to the shareholders of Teekay
Corporation |
|
|
|
|
|
|
Loss from continuing operations |
(33,123) |
(58,297) |
(33,453) |
|
|
|
Net (income) loss attributable to non-controlling interests,
continuing operations |
(7,641) |
25,323 |
25,113 |
|
|
|
Net loss attributable to the shareholders of Teekay Corporation,
continuing operations |
(40,764) |
(32,974) |
(8,340) |
|
|
|
(Loss) income from discontinued operations |
(20,276) |
41,450 |
94,957 |
|
|
|
Net loss (income) attributable to non-controlling interests,
discontinued operations
(6)
|
61,928 |
(25,863) |
(56,666) |
|
|
|
Net income attributable to the shareholders of |
|
|
|
|
|
|
Teekay Corporation, discontinued operations |
41,652 |
15,587 |
38,291 |
|
|
|
Net income (loss) attributable to the shareholders of Teekay
Corporation |
888 |
(17,387) |
29,951 |
|
|
|
Loss per common share of Teekay Corporation, continuing
operations |
|
|
|
|
|
|
- Basic and diluted
|
(0.40) |
(0.32) |
(0.08) |
|
|
|
|
|
|
|
|
|
Earnings per common share of Teekay Corporation, discontinued
operations |
|
|
|
|
|
|
- Basic and diluted
|
$ |
0.41 |
$ |
0.15 |
$ |
0.38 |
|
|
|
Earnings (loss) per common share of Teekay Corporation - Basic and
diluted
|
0.01 |
(0.17) |
0.30 |
|
|
|
Weighted-average number of common shares outstanding |
|
|
|
|
|
|
- Basic
(7)
and diluted
|
102,347,141 |
102,319,870 |
101,165,928 |
|
|
|
Number of outstanding shares of common stock at the end of the
period |
101,693,253 |
101,571,141 |
101,285,915 |
|
|
8
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
(1)The
presentation of certain information in these consolidated financial
statements reflect the Teekay Gas Business as a discontinued
operation of the Company, and historical comparative periods
presented have been recast as a result.
Refer to the
Important Notice to Reader
section above for further information.
(2)The
three months ended March 31, 2022 includes restructuring charges of
$3.8 million related to the reorganization and realignment of the
Company's shared service functions following the sale of the Teekay
Gas Business, of which $2.4 million was recovered from Seapeak and
was recorded as part of revenues on the consolidated statements of
(loss) income.
(3)Realized
and unrealized gains (losses) related to derivative instruments
that are not designated in qualifying hedging
relationships for accounting
purposes are included as a separate line item in the consolidated
statements of (loss) income. The realized (losses) gains relate to
the amounts the Company actually paid to settle such derivative
instruments and the unrealized gains (losses) relate to the change
in fair value of such derivative instruments, are detailed in the
table below and exclude amounts relating to the Teekay Gas
Business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
March 31, |
December 31, |
March 31, |
|
|
|
|
|
2022 |
2021 |
2021 |
|
|
|
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
Realized (losses) gains relating to |
|
|
|
|
|
|
|
Interest rate swap agreements |
(67) |
(82) |
(445) |
|
|
|
|
Foreign currency forward contracts |
(83) |
(31) |
— |
|
|
|
|
Forward freight agreements |
(23) |
(153) |
28 |
|
|
|
|
|
(173) |
(266) |
(417) |
|
|
|
Unrealized gains (losses) relating to |
|
|
|
|
|
|
|
Interest rate swap agreements |
1,889 |
670 |
1,153 |
|
|
|
|
Foreign currency forward contracts |
22 |
(2) |
— |
|
|
|
|
Forward freight agreements |
229 |
163 |
(33) |
|
|
|
|
|
2,140 |
831 |
1,120 |
|
|
|
Total realized and unrealized gains on
derivative instruments
|
1,967 |
565 |
703 |
|
|
(4)The
Company’s proportionate share of items within equity loss from
continuing operations, as identified in Appendix A of this release,
is detailed in the table below. By excluding these items from
equity loss as reflected in the consolidated statements
of
(loss) income,
the Company believes the resulting adjusted equity loss is a
normalized amount that can be used to evaluate the financial
performance of the Company’s equity-accounted investment. Adjusted
equity loss is a non-GAAP financial measure.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
March 31, |
December 31, |
March 31, |
|
|
|
|
|
2022 |
2021 |
2021 |
|
|
|
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
Equity loss |
(754) |
(12,046) |
(359) |
|
|
|
Write-down of Teekay Tankers' High Q Joint Venture |
— |
11,584 |
— |
|
|
|
Equity loss adjusted for items in Appendix A |
(754) |
(462) |
(359) |
|
|
(5)Loss
on bond repurchases for the three months ended March 31, 2022
includes a $9.2 million loss on repurchase of the 2022 Notes in
full and a $3.2 million loss on repurchases of the Convertible
Notes. Refer to footnotes (2) and (3) of the
Summary
Consolidated Balance Sheets
section for additional information.
(6)(Loss)
income from discontinued operations for the three months ended
March 31, 2022 includes a $58.7 million loss on
deconsolidation of the Teekay Gas Business. Net loss (income)
attributable to non-controlling interests, discontinued operations
for the three months ended March 31, 2022 includes the realization
of a deferred gain of $84.8 million relating to the intercompany
sale of certain vessels from Teekay to the Teekay Gas Business in
previous years, which is recognized upon the sale of the Teekay Gas
Business. Together, these items resulted in a net gain of $26.2
million related to the deconsolidation of the Teekay Gas
Business.
(7)Includes
common shares related to non-forfeitable stock-based
compensation.
9
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Teekay Corporation
Summary Consolidated Balance Sheets
(in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at March 31, |
As at December 31, |
|
|
2022 |
2021 |
|
|
(unaudited) |
(unaudited) |
|
ASSETS |
|
|
|
Cash and cash equivalents - Teekay Parent |
93,239 |
58,405 |
|
Cash and cash equivalents - Teekay Tankers |
18,366 |
50,572 |
|
Short-term investments - Teekay Parent
(1)
|
220,000 |
— |
|
Assets held for sale |
28,531 |
43,543 |
|
Accounts receivable and other current assets |
153,412 |
118,474 |
|
Bunker and lube oil inventory |
62,731 |
49,033 |
|
Current assets - discontinued operations |
— |
4,804,439 |
|
Restricted cash - Teekay Parent |
— |
6 |
|
Restricted cash - Teekay Tankers |
5,335 |
5,356 |
|
|
|
|
Vessels and equipment |
1,318,545 |
1,336,998 |
|
Operating lease right-of-use assets |
10,895 |
14,257 |
|
Net investment in direct financing
and sales-type leases
|
12,009 |
12,009 |
|
Net investment in and loans to equity-accounted
investment |
12,200 |
12,954 |
|
Other non-current assets |
23,374 |
25,936 |
|
|
|
|
Total Assets |
1,958,637 |
6,531,982 |
|
LIABILITIES AND EQUITY |
|
|
|
Accounts payable and other current liabilities |
131,697 |
144,144 |
|
Current liabilities - discontinued operations |
— |
2,877,629 |
|
Short-term debt - Teekay Tankers |
28,000 |
25,000 |
|
Current portion of long-term debt - Teekay Parent
(2)
|
23,251 |
239,806 |
|
Current portion of long-term debt - Teekay Tankers |
58,708 |
42,532 |
|
Long-term debt - Teekay Parent
(3)
|
— |
111,383 |
|
Long-term debt - Teekay Tankers |
525,788 |
572,240 |
|
Operating lease liabilities |
11,961 |
14,257 |
|
Other long-term liabilities |
66,631 |
72,508 |
|
Equity: |
|
|
|
Non-controlling interests |
554,107 |
1,917,433 |
|
Shareholders of Teekay |
558,494 |
515,050 |
|
Total Liabilities and Equity |
1,958,637 |
6,531,982 |
|
|
|
|
|
|
Net (cash) debt - Teekay Parent
(4)
|
(289,988) |
292,778 |
|
Net debt - Teekay Tankers
(4)
|
588,795 |
583,844 |
(1)Short-term
investments - Teekay Parent includes various bank term deposits
with initial maturity dates of more than three months but less than
one year, from the origination date.
(2)Current
portion of long-term debt - Teekay Parent as at December 31, 2021
represents the 2022 Notes due in November 2022 that were redeemed
in full in January 2022 for total consideration of $249.0 million
using proceeds from the sale of the Teekay Gas Business, resulting
in a loss of $9.2 million.
(3)Long-term
debt - Teekay Parent as at December 31, 2021 represents the
Company's Convertible Notes due in January 2023. A cash tender
offer was completed in February 2022, with $85.0 million aggregate
principal amount of the Convertible Notes, validly tendered for
repurchase, which represented approximately 75.8% of the total
outstanding as of December 31, 2021, using proceeds from the sale
of the Teekay Gas Business. In March 2022, Teekay Parent
repurchased an additional $3.8 million of the principal of the
Convertible Notes. The total combined consideration for these
repurchases was $90.6 million, resulting in a loss of
$3.2 million. As at March 31, 2022, approximately $23.4
million aggregate principal amount of the Convertible Notes
remained outstanding.
(4)Net
(cash) debt is a non-GAAP financial measure and represents
short-term debt, current portion of long-term debt and long-term
debt, less cash and cash equivalents, and, if applicable,
restricted cash and short-term investments.
10
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Teekay Corporation
Summary Consolidated Statements of Cash Flows
(in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
2021
(1)
|
|
|
(unaudited) |
(unaudited) |
|
Cash, cash equivalents and restricted cash provided by (used
for) |
|
|
|
OPERATING ACTIVITIES |
|
|
|
Net (loss) income |
(53,399) |
61,504 |
|
Less: loss (income) from discontinued operations |
20,276 |
(94,957) |
|
Loss from continuing operations |
(33,123) |
(33,453) |
|
Non-cash and non-operating items: |
|
|
|
Depreciation and amortization |
25,080 |
26,684 |
|
Unrealized gain on derivative
instruments |
(2,140) |
(1,120) |
|
Write-down of assets |
421 |
715 |
|
Equity loss |
754 |
359 |
|
Other |
19,473 |
3,677 |
|
Change in operating assets and liabilities: |
|
|
|
Receipts from sales-type lease |
— |
(293) |
|
Change in other operating assets and
liabilities |
(50,459) |
(46,483) |
|
Asset retirement obligation
expenditures |
— |
(920) |
|
Expenditures for dry docking |
(2,138) |
(3,045) |
|
Net operating cash flow - continuing operations |
(42,132) |
(53,879) |
|
Net operating cash flow - discontinued operations |
26,866 |
33,362 |
|
Net operating cash flow |
(15,266) |
(20,517) |
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
Prepayments of long-term debt |
(494,104) |
(15,000) |
|
Scheduled repayments of long-term debt |
(51,299) |
(2,808) |
|
Proceeds from short-term debt |
23,000 |
10,000 |
|
Prepayments of short-term debt |
(20,000) |
— |
|
Proceeds from financing related to sales and leaseback of vessels,
net of issuance costs |
175,341 |
— |
|
Scheduled repayments of obligations related to finance
leases |
(6,718) |
(6,082) |
|
Purchase of Teekay Tankers common shares |
(5,269) |
— |
|
Other financing activities |
(985) |
(61) |
|
Net financing cash flow - continuing operations |
(380,034) |
(13,951) |
|
Net financing cash flow - discontinued operations |
— |
(61,237) |
|
Net financing cash flow |
(380,034) |
(75,188) |
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
Expenditures for vessels and equipment |
(4,071) |
(913) |
|
Purchase of short-term investments |
(220,000) |
— |
|
Proceeds from sale of vessels and equipment |
16,002 |
32,687 |
|
|
|
|
Proceeds from the sale of the Teekay Gas Business, net of cash
sold |
454,789 |
— |
|
Net investing cash flow - continuing operations |
246,720 |
31,774 |
|
Net investing cash flow - discontinued operations |
— |
(7,191) |
|
Net investing cash flow |
246,720 |
24,583 |
|
Decrease in cash, cash equivalents and restricted cash |
(148,580) |
(71,122) |
|
Cash, cash equivalents and restricted cash, beginning of the
period |
265,520 |
405,890 |
|
Cash, cash equivalents and restricted cash, end of the
period |
116,940 |
334,768 |
(1)Comparative
balances relating to the three months ended March 31, 2021 have
been recast.
Refer to footnote (1) of the
Summary
Consolidated Statements of (Loss) Income
and the
Important Notice to Reader
section for additional information.
11
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Teekay Corporation
Appendix A - Reconciliation of Non-GAAP Financial
Measures
Adjusted Net Income Attributable to Shareholders of
Teekay
(in thousands of U.S. dollars, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
December 31, |
March 31, |
|
|
|
2022 |
2021 |
2021 |
|
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
$ Per |
|
$ Per |
|
$ Per |
|
|
|
$ |
Share(1)
|
$ |
Share(1)
|
$ |
Share(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income – GAAP basis |
(53,399) |
|
(16,847) |
|
61,504 |
|
|
Adjust for: Net loss (income) attributable to |
|
|
|
|
|
|
|
non-controlling interests |
54,287 |
|
(540) |
|
(31,553) |
|
|
Net income (loss) attributable to |
|
|
|
|
|
|
|
|
shareholders of Teekay |
888 |
0.01 |
(17,387) |
(0.17) |
29,951 |
0.29 |
|
(Subtract) add specific items affecting net income
(loss) |
|
|
|
|
|
|
|
|
Unrealized gains from derivative instruments |
(2,140) |
(0.02) |
(831) |
(0.01) |
(1,119) |
(0.01) |
|
|
FPSO decommissioning costs, net of recoveries |
1,612 |
0.02 |
1,249 |
0.01 |
1,430 |
0.01 |
|
|
Write-down of assets(2)
|
421 |
— |
15,854 |
0.15 |
715 |
0.01 |
|
|
Restructuring charges, net of recoveries |
2,209 |
0.02 |
1,512 |
0.01 |
303 |
— |
|
|
Items relating to discontinued operations(3)
|
36,594 |
0.36 |
22,362 |
0.22 |
(26,481) |
(0.26) |
|
|
Loss on bond repurchases and other(4)
|
14,319 |
0.14 |
5,729 |
0.06 |
(187) |
— |
|
|
Non-controlling interests’ share of items above(5)
|
(54,431) |
(0.53) |
(20,134) |
(0.20) |
6,708 |
0.07 |
|
Total adjustments |
(1,416) |
(0.01) |
25,741 |
0.25 |
(18,631) |
(0.18) |
|
Adjusted net (loss) income attributable to |
|
|
|
|
|
|
|
|
shareholders of Teekay |
(528) |
(0.01) |
8,354 |
0.08 |
11,320 |
0.11 |
(1)Basic
per share amounts.
(2)The
three months ended December 31, 2021 includes the write-down of
Teekay Tankers' investment in its equity-accounted joint
venture.
(3)Primarily
relates to items presented in (loss) income from discontinued
operations on the consolidated statements of (loss) income,
including unrealized gains on derivative instruments. Also includes
the loss on deconsolidation of $58.7 million in the three
months ended March 31, 2022. The three months ended December 31,
2021 includes asset impairments and costs related to the merger
with Stonepeak. The three months ended March 31, 2021 includes a
loss on early termination of interest rate swaps.
(4)The
three months ended March 31, 2022 includes a loss on the repurchase
of the 2022 Notes in full and a loss on repurchases of the
Convertible Notes. Refer to footnote (5) of the
Summary
Consolidated Statements of (Loss) Income,
and footnotes (2) and (3) of the
Summary
Consolidated Balance Sheets
section for additional information.
(5)Items
affecting net income include items from the Company’s consolidated
non-wholly-owned subsidiaries. The specific items affecting net
income are analyzed to determine whether any of the amounts
originated from a consolidated non-wholly-owned subsidiary. Each
amount that originates from a consolidated non-wholly-owned
subsidiary is multiplied by the non-controlling interests’
percentage share in this subsidiary to determine the
non-controlling interests’ share of the amount. The amount
identified as “Non-controlling interests’ share of items above” in
the table above is the cumulative amount of the non-controlling
interests’ proportionate share of items listed in the
table.
12
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Teekay Corporation
Appendix B - Supplemental Financial Information
Summary Statement of (Loss) Income for the Three Months Ended
March 31, 2022
(in thousands of U.S. dollars)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Teekay |
Teekay |
Consolidation |
Total |
|
|
|
Tankers |
Parent |
Adjustments(1)
|
|
|
|
|
|
|
|
|
|
Revenues
|
174,018 |
38,702 |
— |
212,720 |
|
|
|
|
|
|
|
|
Voyage expenses
|
(101,622) |
— |
— |
(101,622) |
|
Vessel operating expenses
|
(39,001) |
(32,940) |
— |
(71,941) |
|
Time-charter hire expense
|
(5,550) |
— |
— |
(5,550) |
|
Depreciation and amortization
|
(25,080) |
— |
— |
(25,080) |
|
General and administrative expenses
(2)
|
(10,120) |
(5,963) |
— |
(16,083) |
|
Write-down of assets |
(421) |
— |
— |
(421) |
|
Restructuring charges |
— |
(4,597) |
— |
(4,597) |
|
|
|
|
|
|
|
|
Loss from vessel operations |
(7,776) |
(4,798) |
— |
(12,574) |
|
|
|
|
|
|
|
Interest expense
|
(8,162) |
(1,887) |
47 |
(10,002) |
|
Interest income
|
35 |
309 |
(47) |
297 |
|
Realized and unrealized gain (loss) on |
|
|
|
|
|
|
non-designated derivative instruments |
2,028 |
(61) |
— |
1,967 |
|
Equity loss |
(754) |
— |
— |
(754) |
|
Equity in income (loss) of subsidiaries
(3)
|
— |
(4,159) |
4,159 |
— |
|
Income tax recovery (expense) |
820 |
(184) |
— |
636 |
|
Loss on bond repurchases |
— |
(12,410) |
— |
(12,410) |
|
Other - net |
(133) |
(150) |
— |
(283) |
|
Net (loss) income from continuing |
|
|
|
|
|
operations |
(13,942) |
(23,340) |
4,159 |
(33,123) |
|
Loss from discontinued operations |
— |
(20,276) |
— |
(20,276) |
|
Net loss attributable to |
|
|
|
|
|
|
non-controlling interests
(4)
|
— |
44,504 |
9,783 |
54,287 |
|
Net (loss) income attributable |
|
|
|
|
|
|
to shareholders/unitholders |
|
|
|
|
|
|
of publicly-listed entities |
(13,942) |
888 |
13,942 |
888 |
(1)Consolidation
Adjustments column includes adjustments which eliminate
transactions between Teekay Tankers and Teekay Parent. Refer to
footnote (1) of the
Summary
Consolidated Statements of (Loss) Income
for additional information.
(2)Teekay
Parent's general and administrative expenses during the three
months ended March 31, 2022 includes approximately $1.5 million of
additional costs associated with the sale of the Teekay Gas
Business and approximately $1.0 million of non-cash expenses
relating to equity compensation and depreciation expense relating
to shore-based systems and equipment.
(3)Teekay
Corporation’s proportionate share of the net loss of its
publicly-traded subsidiary, Teekay Tankers.
(4)Net
loss attributable to non-controlling interests represents the
public’s share of the net income (loss) of Teekay’s publicly-traded
subsidiaries, including realized deferred gains and losses relating
to intercompany sales of certain vessels in previous
years.
13
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Teekay Corporation
Appendix C - Reconciliation of Non-GAAP Financial
Measures
Adjusted EBITDA - Consolidated
(in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
December 31, |
March 31, |
|
|
|
2022 |
2021 |
2021 |
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|
Net (loss) income |
(53,399) |
(16,847) |
61,504 |
|
Depreciation and amortization |
25,080 |
26,668 |
26,684 |
|
Interest expense, net of interest income |
9,705 |
15,350 |
18,378 |
|
Income tax recovery |
(636) |
(1,560) |
(608) |
|
EBITDA |
(19,250) |
23,611 |
105,958 |
|
Specific income statement items affecting EBITDA: |
|
|
|
|
|
Write-down of assets
|
421 |
4,270 |
715 |
|
|
Adjustments for sales-type lease to a cash basis and
other |
— |
— |
(203) |
|
|
Realized and unrealized gains on derivative instruments |
(1,967) |
(565) |
(703) |
|
|
Realized (losses) gains from the settlements of
non-designated
derivative instruments
|
(106) |
(184) |
28 |
|
|
Equity loss |
754 |
12,046 |
359 |
|
|
Loss on bond repurchases |
12,410 |
— |
— |
|
|
Other - net |
283 |
5,936 |
951 |
|
|
Items relating to loss from discontinued
operations(1)
|
49,402 |
136,499 |
95,122 |
|
Consolidated Adjusted EBITDA |
41,947 |
181,613 |
202,227 |
|
Adjusted EBITDA from equity-accounted joint
venture(2)
|
(180) |
101 |
202 |
|
Total Adjusted EBITDA |
41,767 |
181,714 |
202,429 |
(1)Includes
amounts presented in income from discontinued operations on the
consolidated statements of (loss) income.
(2)Includes
adjusted EBITDA from Teekay Tankers' investment in its 50%-owned
High-Q Joint Venture, which owns one VLCC. Refer to Teekay Tankers
Ltd. earnings release for the first quarter of 2022 for the
non-GAAP reconciliation.
14
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
Forward Looking Statements
This release contains forward-looking statements within the meaning
of Section 27A of the U.S. Securities Act of 1933, as amended, and
Section 21E of the U.S. Securities Exchange Act of 1934, as
amended. All statements included in this report, other than
statements of historical fact, are forward-looking statements. When
used in this report, the words “expect,” “believe,” “anticipate,”
“plan,” “intend,” “estimate,” “may,” “will” or similar words are
intended to identify forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking
statements and any such forward-looking statements are qualified in
their entirety by reference to the following cautionary statements.
All forward-looking statements speak only as of the date hereof and
are based on current expectations and involve a number of
assumptions, risks and uncertainties that could cause actual
results to differ materially from such forward-looking statements.
Forward-looking statements contained in this release include, among
others, statements regarding: management’s expectations regarding
tanker market volatility; Teekay Parent’s ability to utilize its
operating franchise, capabilities and relative financial position
to pursue future investment opportunities and create long-term
shareholder value; the occurrence and anticipated timing of future
charter termination, decommissioning and completion of the sale of
the
Hummingbird
FPSO unit; management’s expectations regarding the use of sale
proceeds of the
Hummingbird
FPSO unit to cover any remaining decommissioning costs;
management’s expectations regarding any future recycling costs and
obligations with respect to the
Hummingbird
FPSO; the occurrence and anticipated timing of the redelivery of
the
Foinaven
FPSO unit and its future decommissioning and green-recycling;
management’s expectations regarding the recoverability of certain
costs related to the
Foinaven
FPSO from the applicable customer; the continuing impact of
COVID-19 (including new variants thereof) on the near-term tanker
market outlook; the impact of the invasion of Ukraine by Russia on
the economy, our industry and our business, including as a result
of sanctions on Russian and Belarusian companies and individuals
and the persistence of altered trade patterns; and the anticipated
impact of positive tanker fleet supply fundamentals and limited new
tanker orders on tanker market volatility.
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: the availability to
Teekay of appropriate future growth opportunities and Teekay’s
financial or other ability to pursue such opportunities; market or
counterparty reaction to changes in exploration, production and
storage of offshore oil, either generally or in particular regions
that would impact expected future growth; changes in the demand for
oil and refined products; changes in trading patterns significantly
affecting overall vessel tonnage requirements; greater or less than
anticipated levels of vessel newbuilding orders and deliveries and
greater or less than anticipated rates of vessel scrapping; changes
in global oil prices or tanker rates; OPEC+ and non-OPEC production
and supply levels; the duration and extent of the COVID-19 pandemic
and any resulting effects on the markets in which the Company
operates; the impact of the pandemic on the Company’s ability to
maintain safe and efficient operations; issues with vessel
operations; higher than expected costs and expenses, off-hire days
or dry-docking requirements (both scheduled and unscheduled);
changes in applicable industry laws and regulations and the timing
of implementation of new laws and regulations, including IMO 2030;
the potential for early termination of long-term contracts of
existing vessels or related to services; Russia’s invasion of
Ukraine; the impact of geopolitical tensions and changes in global
economic conditions; and other factors discussed in Teekay’s
filings from time to time with the SEC, including its Annual Report
on Form 20-F for the fiscal year ended December 31, 2021. Teekay
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 Teekay’s expectations
with respect thereto or any change in events, conditions or
circumstances on which any such statement is based.
15
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
4th
Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08,
Bermuda
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