Teekay Corporation

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Press Release $TK Teekay Corporation

0 COMMENTs 21 Feb
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Teekay Corporation Reports Fourth Quarter and Annual Results

HAMILTON, BERMUDA -- (Marketwire) -- 02/21/13 -- Teekay Corporation (NYSE: TK) -

Highlights


--  Fourth quarter 2012 total cash flow from vessel operations of $217.9
    million, up slightly from the same period of the prior year; fiscal year
    2012 total cash from vessel operations of $821.4 million, up 18 percent
    from the prior year.
--  Fourth quarter 2012 adjusted net income attributable to stockholders of
    Teekay of $2.9 million, or $0.04 per share (excluding specific items,
    including a vessel impairment charge, which decreased GAAP net income by
    $96.7 million, or $1.39 per share).
--  Fiscal year 2012 adjusted net loss attributable to stockholders of
    Teekay of $54.9 million, or $0.79 per share (excluding specific items,
    including a vessel impairment charge, which increased GAAP net loss by
    $105.3 million, or $1.52 per share).
--  Cidade de Itajai FPSO unit achieved first oil and commenced its nine-
    year time-charter with Petrobras on February 16, 2013.
--  Completed a new $200 million, three-year corporate revolving credit
    facility secured by a portion of Teekay Parent's common unit holdings of
    Teekay LNG and Teekay Offshore.

Teekay Corporation (Teekay or the Company) today reported an adjusted net income attributable to stockholders of Teekay(1) of $2.9 million, or $0.04 per share, for the quarter ended December 31, 2012, compared to an adjusted net income attributable to stockholders of Teekay of $1.6 million, or $0.02 per share, for the same period of the prior year. Adjusted net income attributable to stockholders of Teekay excludes a number of specific items that had the net effect of decreasing GAAP net income by $96.7 million, or $1.39 per share, for the three months ended December 31, 2012 and increasing GAAP net income by $57.1 million, or $0.82 per share, for the three months ended December 31, 2011, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, net loss attributable to stockholders of Teekay of $93.7 million, or $1.35 per share, for the quarter ended December 31, 2012, compared to net income attributable to stockholders of Teekay of $58.7 million, or $0.84 per share, for the same period of the prior year. Net revenues(2) for the fourth quarter of 2012 were $484.4 million, compared to $472.7 million for the same period of the prior year.

For the year ended December 31, 2012, the Company reported an adjusted net loss attributable to stockholders of Teekay(1) of $54.9 million, or $0.79 per share, compared to an adjusted net loss attributable to stockholders of Teekay of $103.1 million, or $1.47 per share, for the year ended December 31, 2011. Adjusted net loss attributable to stockholders of Teekay excludes a number of specific items that had the net effect of increasing GAAP net loss by $105.3 million, or $1.52 per share, for the year ended December 31, 2012 and increasing GAAP net loss by $255.5 million, or $3.64 per share, for the year ended December 31, 2011, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, a net loss attributable to stockholders of Teekay of $160.2 million, or $2.31 per share, for the year ended December 31, 2012, compared to a net loss attributable to stockholders of Teekay of $358.6 million, or $5.11 per share, for the year ended December 31, 2011. Net revenues(2) for the year ended December 31, 2012 were $1,818.0 million, compared to $1,777.2 million for the prior year.

On January 4, 2013, the Company declared a cash dividend on its common stock of $0.31625 per share for the quarter ended December 31, 2012. The cash dividend was paid on January 30, 2013, to all shareholders of record on January 16, 2013.


1.  Adjusted net income (loss) attributable to stockholders of Teekay is a
    non-GAAP financial measure. Please refer to Appendix A to this release
    for a reconciliation of this non-GAAP measure as used in this release to
    the most directly comparable financial measure under United States
    generally accepted accounting principles (GAAP) and for information
    about specific items affecting net income (loss) that are typically
    excluded by securities analysts in their published estimates of the
    Company's financial results.
2.  Net revenues represents revenues less voyage expenses, which comprise
    all expenses relating to certain voyages, including bunker fuel
    expenses, port fees, cargo loading and unloading expenses, canal tolls,
    agency fees and commissions. Net revenues is a non-GAAP financial
    measure used by certain investors to measure the financial performance
    of shipping companies. Please see the Company's website at
    www.teekay.com for a reconciliation of this non-GAAP measure as used in
    this release to the most directly comparable financial measure under
    GAAP.

"The improvement in our fiscal 2012 results compared to the prior year largely reflects the profitable growth from our continued investment in our fixed-rate gas and offshore businesses as well as our cost reduction initiatives," commented Peter Evensen, Teekay Corporation's President and Chief Executive Officer. "Our fiscal 2012 results include a full year of cash flows from the two FPSO units acquired from Sevan at the end of 2011, cash flows from the LNG/LPG and shuttle tanker newbuildings that delivered during 2011 and early 2012, and cash flows from our 52 percent interest in the six LNG carriers we acquired from A.P. Moller-Maersk in the first quarter of 2012. In addition, cash flows from our existing assets increased during 2012 due to the renewal of offshore and LNG contracts at higher rates, reduced operating expenses in our conventional and shuttle tanker businesses resulting from an organization realignment, and lower time-charter hire expenses due to the re-delivery of several time-chartered in conventional tankers, partially offset by the Petrojarl Banff FPSO being off-hire since its storm-related incident in December 2011."

"While Teekay has benefited from the attractive market fundamentals in our gas and offshore businesses, the conventional tanker market continued to be challenging in 2012 and is expected to remain weak through 2013," Mr. Evensen continued. "Primarily as a result of the continuing weak spot tanker rates, delays to the expected tanker market recovery, and further reductions in conventional tanker values during 2012, for accounting purposes, we recorded a non-cash impairment charge in the fourth quarter of 2012, with the largest component related to certain conventional tankers owned by our 25 percent owned subsidiary, Teekay Tankers Ltd. It is important to note that this impairment charge is non-cash in nature and does not impact our operations, cash flows, liquidity or any loan covenants."

Mr. Evensen continued, "Looking ahead to 2013, we remain focused on effective project execution, with multiple projects scheduled for completion between 2013 and 2016. Last week, the Cidade de Itajai FPSO unit achieved first oil on its Brazilian offshore field and commenced operations under its nine-year time-charter contract with Petrobras. Field installation for the Voyageur Spirit FPSO continues to progress, with the unit expected to achieve first oil in March 2013. Construction of the Petrojarl Knarr FPSO is on track for delivery in the first half of 2014 and this past December the charterer, BG Group, exercised its option to extend the firm period of the Petrojarl Knarr time-charter to 10 years. We are also making progress on the repair and upgrade work on the Petrojarl Banff FPSO, which is expected to return to production during the fourth quarter of 2013. Construction is proceeding on schedule on all four of Teekay Offshore's shuttle tanker newbuildings, which will operate under 10-year time-charters with BG in Brazil upon their respective deliveries in April through November this year. Finally, Teekay LNG Partners recently completed the acquisition of a 50 percent interest in a new LPG joint venture with Exmar and ordered two fuel-saving newbuilding LNG carriers, which are scheduled for delivery in the first half of 2016."

"As the current inventory of offshore and gas projects are completed, we expect that Teekay Parent will benefit both through anticipated increased distributions from our growing daughter subsidiaries, including the incentive distribution rights from our two general partner interests, and through anticipated enhanced financial strength as proceeds from the sale of warehoused assets are used to delever Teekay Parent's balance sheet and build liquidity," Mr. Evensen added.

Operating Results

The following tables highlight certain financial information for each of Teekay's four publicly-listed entities: Teekay Offshore Partners L.P. (Teekay Offshore) (NYSE: TOO), Teekay LNG Partners L.P. (Teekay LNG) (NYSE: TGP), Teekay Tankers Ltd. (Teekay Tankers) (NYSE: TNK) and Teekay Parent (which excludes the results attributed to Teekay Offshore, Teekay LNG and Teekay Tankers). A brief description of each entity and an analysis of its respective financial results follow the tables below. Please also refer to the "Fleet List" section below and Appendix B to this release for further details.


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                           Three Months Ended December 31, 2012
              --------------------------------------------------------------
                                        (unaudited)
                Teekay   Teekay
(in thousands Offshore      LNG  Teekay                               Teekay
 of U.S.      Partners Partners Tankers  Teekay  Consolidation   Corporation
 dollars)           LP       LP    Ltd.  Parent    Adjustments  Consolidated
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Net revenues   212,311   97,631  44,476 161,907        (31,898)      484,427

Vessel
 operating
 expense        79,414   23,720  23,615  81,232              -       207,981
Time-charter
 hire expense   15,493        -     841  43,447        (31,898)       27,883
Depreciation
 and
 amortization   47,249   25,949  18,431  21,831              -       113,460
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CFVO -
 Consolidated
 (1)(2)(3)      97,892   67,354  15,989    (116)             -       181,119
CFVO - Equity
 Investments
 (4)                 -   38,498       -  (1,691)             -        36,807
CFVO - Total    97,892  105,852  15,989  (1,807)             -       217,926
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                           Three Months Ended December 31, 2011
              --------------------------------------------------------------
                                        (unaudited)
                Teekay   Teekay
(in thousands Offshore      LNG  Teekay                               Teekay
of U.S.       Partners Partners Tankers  Teekay  Consolidation   Corporation
dollars)            LP       LP    Ltd.  Parent    Adjustments  Consolidated
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Net revenues   205,111   97,228  27,322 184,226        (41,162)      472,725

Vessel
 operating
 expense        69,065   22,485  10,694  66,777              -       169,021
Time-charter
 hire expense   17,406        -   2,436  71,621        (41,162)       50,301
Depreciation
 and
 amortization   48,194   24,367  10,811  27,218              -       110,590
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CFVO -
 Consolidated
 (1)(2)(3)     101,593   70,896  12,310   5,104              -       189,903
CFVO - Equity
 Investments
 (4)                 -   20,005       -   1,110              -        21,115
CFVO - Total   101,593   90,901  12,310   6,214              -       211,018
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1.  Cash flow from vessel operations (CFVO) represents income from vessel
    operations before depreciation and amortization expense, amortization of
    in-process revenue contracts, vessel write downs, gains and losses on
    the sale of vessels, adjustments for direct financing leases to a cash
    basis, and unrealized gains and losses relating to derivatives, but
    includes realized gains and losses on the settlement of foreign currency
    forward contracts. CFVO - Consolidated represents CFVO from vessels that
    are consolidated on the Company's financial statements. Cash flow from
    vessel operations is a non-GAAP financial measure used by certain
    investors to measure the financial performance of shipping companies.
    Please refer to Appendix B and Appendix C of this release and see the
    Company's website at www.teekay.com for a reconciliation of this non-
    GAAP measure as used in this release to the most directly comparable
    GAAP financial measure.
2.  Excludes CFVO relating to assets acquired from Teekay Parent for the
    periods prior to their acquisition by Teekay Offshore, Teekay LNG and
    Teekay Tankers, respectively, as those results are included in the
    historical results for Teekay Parent.
3.  In addition to CFVO from directly owned vessels, Teekay Parent also
    receives cash dividends and distributions from its daughter public
    companies. For the three months ended December 31, 2012 and 2011, Teekay
    Parent received daughter company dividends and distributions totaling
    $38.2 million and $34.8 million, respectively. The dividends and
    distributions received by Teekay Parent include, among others, those
    made with respect to its general partner interests in Teekay Offshore
    and Teekay LNG. Please refer to Appendix D to this release for further
    details.
4.  CFVO - Equity Investments represents the Company's proportionate share
    of CFVO from its equity-accounted vessels and other investments. Please
    refer to Appendix B of this release and see the Company's website at
    www.teekay.com for a reconciliation of this non-GAAP measure as used in
    this release to the most directly comparable GAAP financial measure.

Teekay Offshore Partners L.P.

Teekay Offshore is an international provider of marine transportation, oil production and storage services to the offshore oil industry through its fleet of 37 shuttle tankers (including four chartered-in vessels and four newbuildings under construction), three floating, production, storage and offloading (FPSO) units, five floating storage and offtake (FSO) units and six conventional oil tankers, in which its interests range from 50 to 100 percent. Teekay Offshore also has the right to participate in certain other FPSO and vessel opportunities. Teekay Parent currently owns a 29.4 percent interest in Teekay Offshore (including the 2 percent sole general partner interest).

For the fourth quarter of 2012, Teekay Offshore's quarterly distribution was $0.5125 per common unit. The cash distribution received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay Offshore totaled $14.6 million for the fourth quarter of 2012, as detailed in Appendix D to this release.

Cash flow from vessel operations from Teekay Offshore decreased to $97.9 million in the fourth quarter of 2012, from $101.6 million in the same period of the prior year. The decrease was primarily due to the sale of two conventional tankers and the lay-up of two conventional tankers during 2012 following expiry of their time-charter contracts. This was partially offset by incremental cash flows from the acquisition of the Piranema Spirit FPSO unit on November 30, 2011, increased revenue from the acquisition of volatile organic compound (VOC) equipment from Teekay Parent in the fourth quarter of 2012, a decrease in time-charter hire expense due to the redelivery of one in-chartered vessel in the fourth quarter of 2011, and lower vessel operating costs as a result of cost-savings initiatives and the sale of two shuttle tankers during 2012 and the lay-up of the Navion Torinita shuttle tanker, which commenced in the second quarter of 2012 upon expiration of its time-charter contract.

In January 2013, Teekay Offshore completed the issuance of NOK 1,300 million of new senior unsecured Norwegian bonds, issued in two tranches maturing in January 2016 (NOK 500 million) and January 2018 (NOK 800 million), respectively. The aggregate principal amount of the bonds is equivalent to approximately USD 233 million and all interest and principal payments were swapped into USD at a fixed rate of 4.80 percent for the tranche maturing in January 2016 and 5.93 percent for the tranche maturing in January 2018. In connection with the offering, Teekay Offshore repurchased NOK 388.5 million of its existing NOK 600 million bond issue maturing in November 2013. The net proceeds of approximately USD 167 million from the new bond issuance and repurchase of existing notes were used to reduce amounts outstanding under Teekay Offshore's revolving credit facilities and for general corporate purposes. Teekay Offshore is applying to list the new bonds on the Oslo Stock Exchange.

In January 2013, Teekay Offshore sold a 1992-built conventional tanker, the Leyte Spirit, and a 1992-built shuttle tanker, the Basker Spirit, to third party buyers for total net proceeds of $13.25 million.

In December 2012, Teekay Offshore sold a 1992-built conventional tanker, the Luzon Spirit, and a 1994-built conventional tanker, the Torben Spirit, to third party buyers for total net proceeds of $12.65 million.

In November 2012, Teekay Offshore sold a 1992-built shuttle tanker, the Navion Savonita, to a third party buyer for total net proceeds of $6.1 million.

In November 2012, Teekay Offshore agreed to acquire a 2010-built HiLoad Dynamic Positioning (DP) unit from Remora AS, a Norway-based offshore marine technology company, for a total purchase price of approximately $55 million, including modification costs. The transaction remains subject to finalizing a 10-year time-charter contract with Petroleo Brasileiro SA (Petrobras) in Brazil. The acquired unit is expected to commence operating at its full time-charter rate in early 2014 following the completion of capital modifications, delivery of the HiLoad DP unit to offshore Brazil and operational testing.

Teekay LNG Partners L.P.

Teekay LNG provides liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil marine transportation services primarily under long-term, fixed-rate charter contracts with major energy and utility companies through its current fleet of 29 LNG carriers (including two newbuildings under construction), 25 LPG carriers (including eight newbuildings under construction) and 11 conventional tankers. Teekay LNG's interests in these vessels range from 33 to 100 percent. In addition, Teekay LNG, through its 50 percent owned LPG joint venture with Exmar NV, charters-in five LPG carriers. Teekay Parent currently owns a 37.5 percent interest in Teekay LNG (including the 2 percent sole general partner interest).

For the fourth quarter of 2012, Teekay LNG's quarterly distribution was $0.675 per common unit. The cash distribution received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay LNG totaled $23.0 million for the fourth quarter of 2012, as detailed in Appendix D to this release.

Including cash flows from equity-accounted vessels, Teekay LNG's total cash flow from vessel operations increased to $105.9 million in the fourth quarter of 2012, from $90.9 million in the same period of the prior year. This increase was primarily due to the acquisition of a 52 percent interest in six LNG carriers from A.P. Moller-Maersk (the MALT LNG Carriers) in February 2012 and the acquisition of a 33 percent interest in two Angola LNG carriers from Teekay between October 2011 and January 2012. This was partially offset by higher general and administrative costs as a result of increased business development activities.

In mid-February 2013, Teekay LNG entered into a joint venture with Belgium-based Exmar NV to own and charter-in LPG carriers with a primary focus on the mid-size gas carrier segment. The joint venture entity, called Exmar LPG BVBA, took economic effect as of November 1, 2012 and includes 16 owned LPG carriers (including four newbuildings scheduled for delivery in 2014) and five chartered-in LPG carriers. In addition, the joint venture recently ordered another four medium-size gas carrier newbuildings for delivery in 2015 and 2016, with options for an additional four vessels. In exchange for its 50 percent ownership in Exmar LPG BVBA, including newbuilding payments made prior to the establishment of the joint venture, Teekay LNG invested approximately $134 million of equity and assumed approximately $108 million of pro rata debt and lease obligations secured by certain vessels in the Exmar LPG BVBA fleet. A new $355 million debt facility is currently in documentation to refinance the Exmar LPG BVBA fleet.

In December 2012, Teekay LNG entered into an agreement with Daewoo Shipbuilding & Marine Engineering Co., Ltd., (DSME) of South Korea for the construction of two 173,400-cubic meter LNG carrier newbuildings, for a total purchase price of approximately $400 million, with options to order up to three additional vessels. The newbuildings will be constructed with M-type, Electronically Controlled, Gas Injection (MEGI) twin engines, which are expected to be significantly more fuel-efficient and have lower emission levels than engines currently being utilized in LNG shipping. Teekay LNG intends to secure long-term contract employment for both vessels prior to their scheduled deliveries in the first half of 2016.

Teekay Tankers Ltd.

Teekay Tankers currently owns a fleet of 28 vessels, including 11 Aframax tankers, 10 Suezmax tankers, three Long Range 2 (LR2) product tankers, three MR product tankers, and a 50 percent interest in a Very Large Crude Carrier (VLCC) newbuilding which is scheduled to deliver in April 2013. In addition, Teekay Tankers currently time-charters in two Aframax tankers and has invested $115 million in first-priority mortgage loans secured by two 2010-built VLCCs. Of the 28 vessels currently in operation, 15 are employed on fixed-rate time-charters, generally ranging from one to three years in initial duration, with the remaining vessels trading in Teekay's spot tanker pools. Based on its current ownership of Class A common stock and its ownership of 100 percent of the outstanding Teekay Tankers Class B stock, Teekay Parent currently owns a 25.1 percent economic interest in and has voting control of Teekay Tankers.

On February 20, 2013, Teekay Tankers declared a fourth quarter 2012 dividend of $0.03 per share, which will be paid March 11, 2013 to all shareholders of record on March 4, 2013. Based on its ownership of Teekay Tankers Class A and Class B shares, the dividend to be paid to Teekay Parent will total $0.6 million for the fourth quarter of 2012. In line with Teekay Tankers' growth strategy, commencing in the first quarter of 2013, Teekay Tankers will change from a variable full-payout dividend policy to a fixed annual dividend of $0.12 per share, payable quarterly.

In the fourth quarter of 2012, cash flow from vessel operations from Teekay Tankers increased to $16.0 million from $12.3 million in the same period of the prior year, primarily due to the contribution from 13 vessels acquired from Teekay Corporation in June 2012, partially offset by the expiration of certain time-charter contracts, and the subsequent redeployment of certain vessels on time-charter contracts at lower rates, throughout the course of 2012.

In January 2013, Teekay Tankers sold a 1998-built Aframax tanker, the Nassau Spirit, to a third party buyer for net proceeds of $9.1 million.

Teekay Parent

In addition to its equity ownership interests in Teekay Offshore, Teekay LNG and Teekay Tankers, Teekay Parent directly owns several vessels which currently includes four conventional Suezmax tankers and five FPSO units (including a 50 percent interest in a recently converted FPSO unit). In addition, Teekay Parent currently owns one newbuilding FPSO unit under construction and has agreed to acquire another FPSO unit upon the expected commencement of its time-charter contract in March 2013, at which time the FPSO unit will be immediately acquired from Teekay Parent by Teekay Offshore for $540 million. As at January 1, 2013, Teekay Parent also had 11 chartered-in conventional tankers (including four Aframax tankers owned by Teekay Offshore), two chartered-in LNG carriers owned by Teekay LNG, and two chartered-in shuttle tankers and two chartered-in FSOs owned by Teekay Offshore.

For the fourth quarter of 2012, Teekay Parent generated negative cash flow from vessel operations of $1.8 million, compared to positive cash flow from vessel operations of $6.2 million in the same period of the prior year. The decrease in cash flow is due to the sale of the 13 conventional tankers to Teekay Tankers in June 2012, the off-hire of the Petrojarl Banff FPSO which was undergoing repairs in 2012 following damage from a December 2011 storm-related incident and lower revenue from the Petrojarl Foinaven FPSO (Foinaven) as a result of temporarily lower oil production during the fourth quarter of 2012 compared to the same period last year, and reduced revenues under the Foinaven FPSO contract associated with annual performance targets paid annually in the fourth quarter each year. This was partially offset by lower time-charter hire expense as a result of the redelivery of time-chartered in vessels during the past year and the contribution from the Hummingbird Spirit FPSO following Teekay Parent's acquisition of this unit in November 2011.

On February 16, 2013, Cidade de Itajai FPSO unit, which is 50 percent owned by Teekay Parent, achieved first oil on its Brazil offshore field and commenced operations under its nine-year time-charter contract with Petrobras.

In December 2012, Teekay Parent completed a new $200 million, three-year corporate revolving credit facility secured by a portion of its common unit holdings in each of Teekay LNG and Teekay Offshore.

In November 2012, concurrent with Teekay Offshore's agreement to acquire a 2010-built HiLoad DP unit from Remora AS, Teekay Parent agreed to invest approximately $4.4 million to acquire a 49.9 percent ownership interest in a recapitalized Remora AS.

Vessel Impairment Charge

Due to the current economic environment for the conventional tanker industry and the Company's outlook for expected future earnings from the Company's conventional fleet, the estimated future cash flows for certain of the Company's tankers are lower than the book values of these vessels at December 31, 2012. As a result, under US GAAP, the Company was required to reduce the book value of the affected vessels on its December 31, 2012 balance sheet to their estimated fair market values, which are $429 million lower than the prior carrying values. This difference is included in the Company's fourth quarter and fiscal 2012 statement of loss as "asset impairments". The large majority of this non-cash impairment charge relates to certain conventional tankers owned by Teekay Tankers (primarily seven Suezmax tankers aged between eight and ten years with similar carrying values) as well as certain conventional tankers owned by each of Teekay Offshore, Teekay LNG and Teekay Parent. As most of these conventional tankers are owned by Teekay's publicly-traded subsidiaries, the net impact of the impairment charges to the income attributable to the stockholders of Teekay, after the effect of non-controlling interest, is $135 million. The impairment charge is non-cash in nature and thus, has no impact on the Company's cash flows, liquidity, or loan covenants. As at December 31, 2012, the Company was in compliance with all covenants relating to its revolving credit facilities and term loans. Only $165 million of conventional tanker revolving credit facilities and term loans, or approximately 3 percent, of the Company's outstanding loan balances as at December 31, 2012, has covenants related to minimum vessel value to loan ratios, which are currently above the minimum ratio requirements.

Fleet List

The following table summarizes Teekay's consolidated fleet of 168 vessels as at February 1, 2013, including chartered-in vessels and vessels under construction/conversion but excluding vessels managed for third parties:


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                                            Number of Vessels(1)
                                --------------------------------------------
                                --------------------------------------------
                                   Owned Chartered-in Newbuildings /
                                 Vessels      Vessels    Conversions   Total
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Teekay Parent Fleet(2)(3)
  Aframax Tankers (4)                  -            6              -       6
  Suezmax Tankers                      4            -              -       4
  MR Product Tanker                    -            1              -       1
  FPSO Units (5)                       4            -              3       7
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  Total Teekay Parent Fleet            8            7              3      18
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Teekay Offshore Fleet                 43            4              4      51

Teekay LNG Fleet                      55            5             10      70

Teekay Tankers Fleet                  27            1              1      29

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Total Teekay Consolidated Fleet      133           17             18     168
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1.  Ownership interests in these vessels range from 33 percent to 100
    percent. Excludes vessels managed on behalf of third parties.
2.  Excludes two LNG carriers chartered-in from Teekay LNG.
3.  Excludes two shuttle tankers and two FSOs chartered-in from Teekay
    Offshore.
4.  Excludes four Aframax tankers chartered-in from Teekay Offshore.
5.  Includes one FPSO unit, the Voyageur Spirit, which for accounting
    purposes is a variable interest entity (VIE) whereby Teekay is the
    primary beneficiary. As a result, the Company has consolidated the VIE
    even though the Company does not expect to acquire the FPSO unit until
    March 2013.

Liquidity and Capital Expenditures

As at December 31, 2012, Teekay had consolidated liquidity of $1.9 billion (consisting of $639.5 million cash and cash equivalents and $1,210.9 million of undrawn revolving credit facilities), of which $608.2 million of liquidity (consisting of $293.2 million cash and cash equivalents and $315.0 million of undrawn revolving credit facilities) is attributable to Teekay Parent. Pro forma for the approximately $167 million of net proceeds from Teekay Offshore's January 2013 Norwegian bond offering and concurrent Norwegian bond repurchase and Teekay LNG's $134 million equity contribution to acquire its 50 percent ownership interest in the Exmar LPG BVBA joint venture, Teekay's total consolidated liquidity remained at approximately $1.9 billion as at December 31, 2012.

The following table provides the Company's remaining capital commitments relating to its portion of acquisitions and newbuildings and related total financing completed as at December 31, 2012:


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                                                                      Amount
                                                                    Financed
(in millions)                           2013 2014 2015 2016  Total   to Date
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Teekay Offshore (1)                     $323    -    -    - $  323 $     170
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Teekay LNG(2)                           $ 26 $106 $ 93 $305 $  530 $      70
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Teekay Tankers (3)                      $ 27    -    -    - $   27 $      27
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Teekay Parent (4)                       $ 81 $343    -    - $  424 $  119(5)
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Total Teekay Corporation Consolidated   $457 $449 $ 93 $305 $1,304 $  386(5)
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1.  Includes capital expenditures related to four newbuilding shuttle
    tankers.
2.  Includes capital expenditures related to two newbuilding LNG carriers
    and Teekay LNG's 50 percent interest in the eight newbuilding LPG
    carriers being constructed for the Exmar LPG BVBA joint venture.
3.  Includes remaining capital expenditures related to Teekay Tankers' 50
    percent interest in the Wah Kwong VLCC Newbuilding.
4.  Includes remaining capital expenditures related to the Petrojarl Knarr
    FPSO newbuilding and the upgrade and acquisition by Teekay from Sevan
    Marine ASA (Sevan) of the Voyageur Spirit FPSO unit (net of the existing
    $230 million debt facility which Teekay Parent will assume as part of
    the acquisition and is currently accounted for on Teekay Parent's
    Balance Sheet as the Voyageur Spirit is deemed a variable interest
    entity).
5.  Includes a firm commitment to upsize the Voyageur Spirit FPSO debt
    facility by $100 million syndicated by a bank group in November 2012.

As indicated above, the Company had total capital expenditure commitments pertaining to its portion of acquisitions and newbuildings of approximately $1.3 billion as at December 31, 2012. The Company's current pre-arranged financing of approximately $386 million primarily relates to its 2013 capital expenditure commitments. The Company is in the process of obtaining additional debt financing to fund its remaining capital expenditure commitments relating to the last two shuttle tanker newbuildings, which are scheduled to deliver in the second half of 2013; the Petrojarl Knarr FPSO newbuilding, which is scheduled to deliver in the second quarter of 2014; the two LNG carrier newbuildings, which are scheduled to deliver in the first half of 2016; and four of the eight LPG carrier newbuildings being constructed by the Exmar LPG BVBA joint venture, which are scheduled to deliver in 2015 and 2016.

Conference Call

The Company plans to host a conference call on February 21, 2013 at 11:00 a.m. (ET) to discuss its results for the fourth quarter and fiscal year 2012. An accompanying investor presentation will be available on Teekay's website at www.teekay.com prior to the start of the call. All shareholders and interested parties are invited to listen to the live conference call by choosing from the following options:


--  By dialing (800) 820-0231 or (416) 640-5926, if outside North America,
    and quoting conference ID code 3432706.
--  By accessing the webcast, which will be available on Teekay's website at
    www.teekay.com (the archive will remain on the website for a period of
    30 days).

The conference call will be recorded and available until Thursday, February 28, 2013. This recording can be accessed following the live call by dialing (888) 203-1112 or (647) 436-0148, if outside North America, and entering access code 3432706.

About Teekay

Teekay Corporation is an operational leader and project developer in the marine midstream space. Through its general partnership interests in two master limited partnerships, Teekay LNG Partners L.P. (NYSE: TGP) and Teekay Offshore Partners L.P. (NYSE: TOO), its controlling ownership of Teekay Tankers Ltd. (NYSE: TNK), and its fleet of directly-owned vessels, Teekay is responsible for managing and operating consolidated assets of over $11 billion, comprised of approximately 170 liquefied gas, offshore, and conventional tanker assets. With offices in 16 countries and approximately 6,400 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, and its reputation for safety, quality and innovation has earned it a position with its customers as The Marine Midstream Company.

Teekay's common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".


----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             TEEKAY CORPORATION
              SUMMARY CONSOLIDATED STATEMENTS OF (LOSS) INCOME
      (in thousands of U.S. dollars, except share and per share data)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                        Three Months Ended                 Year Ended
               -------------------------------------------------------------
                  December   September     December    December    December
                       31,         30,          31,         31,         31,
               -------------------------------------------------------------
                      2012        2012         2011        2012        2011
               -------------------------------------------------------------
               (unaudited) (unaudited)  (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------------

REVENUES(1)(2)     515,223     463,537      512,730   1,956,235   1,953,782
----------------------------------------------------------------------------

OPERATING
 EXPENSES
Voyage expenses
 (2)                30,796      29,674       40,005     138,283     176,614
Vessel
 operating
 expenses
 (1)(2)            207,981     182,581      169,021     730,119     677,687
Time-charter
 hire expense       27,883      27,386       50,301     130,739     214,179
Depreciation
 and
 amortization      113,460     112,756      110,590     455,898     428,608
General and
 administrative
 (2)                49,187      49,630       53,324     202,967     223,616
Loss on sale of
 vessels and
 equipment /
 asset
 impairments       428,792       9,193       49,845     441,057     151,059
Bargain
 purchase gain
 (3)                     -           -      (68,535)          -     (68,535)
Goodwill
 impairment              -           -            -           -      36,652
Restructuring
 charges             2,121       3,919            -       7,565       5,490
----------------------------------------------------------------------------
                   860,220     415,139      404,551   2,106,628   1,845,370
----------------------------------------------------------------------------
(Loss) income
 from vessel
 operations       (344,997)     48,398      108,179    (150,393)    108,412
----------------------------------------------------------------------------
OTHER ITEMS
Interest
 expense (2)       (40,956)    (41,652)     (37,645)   (167,615)   (137,604)
Interest income
 (2)                 1,794         674        2,762       6,159      10,078
Realized and
 unrealized
 gain (loss) on
 derivative
 instruments
 (2)                44,580     (35,149)     (44,269)    (80,352)   (342,722)
Equity income
 (loss) (4)         26,097      30,179        4,971      79,211     (35,309)
Income tax
 recovery
 (expense)          13,028      (4,039)          31      14,406      (4,290)
Foreign
 exchange
 (loss) gain        (6,405)     (8,504)      13,921     (12,898)     12,654
Other (loss)
 income - net       (1,690)       (376)      10,540         366      12,360
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net (loss)
 income           (308,549)    (10,469)      58,490    (311,116)   (376,421)
Less: Net
 (income) loss
 attributable
 to non-
 controlling
 interests         214,838      (9,792)         160     150,936      17,805
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net (loss)
 income
 attributable
 to
 stockholders
 of Teekay
 Corporation       (93,711)    (20,261)      58,650    (160,180)   (358,616)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Loss) income
 per common
 share of
 Teekay
  - Basic           ($1.35)     ($0.29) $      0.85      ($2.31)     ($5.11)
  - Diluted         ($1.35)     ($0.29) $      0.84      ($2.31)     ($5.11)

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted-
 average number
 of common
 shares
 outstanding
  - Basic       69,589,200  69,372,220   68,726,590  69,263,369  70,234,817
  - Diluted     69,589,200  69,372,220   69,883,057  69,263,369  70,234,817

----------------------------------------------------------------------------
----------------------------------------------------------------------------

1.  Business development and engineering studies relating to one North Sea
    FPSO project and two North Sea FSO projects that the Company is
    currently pursuing were completed in December 2012, the costs of which
    are substantially reimbursable from customers. As a result, $26.3
    million of revenues and $28.1 million of costs were recognized in the
    fourth quarter of 2012 upon completion of the studies.

2.  Realized and unrealized gains and losses related to derivative
    instruments that are not designated as hedges for accounting purposes
    are included as a separate line item in the statements of loss. The
    realized gains (losses) relate to the amounts the Company actually
    received or paid to settle such derivative instruments and the
    unrealized gains (losses) relate to the change in fair value of such
    derivative instruments, as detailed in the table below:

                                Three Months Ended           Year Ended
                          --------------------------------------------------
                           December September  December  December  December
                                31,       30,       31,       31,       31,
                          --------------------------------------------------
                               2012      2012      2011      2012      2011
                          --------------------------------------------------
Realized (losses) gains
 relating to:
  Interest rate swaps       (33,164)  (30,027)  (33,803) (123,277) (132,931)
  Interest rate swap
   resets and terminations        -         -   (22,560)        -  (149,666)
  Foreign currency forward
   contracts                    646      (876)      870     1,155     9,965
  Bunkers, freight forward
   agreements (FFAs) and
   other                          -         -         -    11,452        36
                          --------------------------------------------------
                            (32,518)  (30,903)  (55,493) (110,670) (272,596)
                          --------------------------------------------------
Unrealized gains (losses)
 relating to:
  Interest rate swaps        76,095    (8,036)   15,765    26,770   (58,405)
  Foreign currency forward
   contracts                  1,003     3,790    (4,323)    6,933   (11,399)
  Bunkers, FFAs and other         -         -      (218)   (3,385)     (322)
                          --------------------------------------------------
                             77,098    (4,246)   11,224    30,318   (70,126)
                          --------------------------------------------------
Total realized and
 unrealized gains (losses)
 on non-designated
 derivative instruments      44,580   (35,149)  (44,269)  (80,352) (342,722)
                          --------------------------------------------------
                          --------------------------------------------------

3.  The income statements for the three months and year ended December 31,
    2011 have been adjusted as a result of the finalization of the purchase
    price allocation for the acquisition of three FPSO units from Sevan
    Marine ASA (Sevan) and a 40 percent equity investment in Sevan.

4.  Equity income excluding the Company's proportionate share of items
    identified in Appendix A of this release is as detailed in the table
    below:

                                Three Months Ended           Year Ended
                          --------------------------------------------------
                           December  September  December December  December
                                31,        30,       31,      31,       31,
                          --------------------------------------------------
                               2012       2012      2011     2012      2011
                          --------------------------------------------------

Equity income (loss)         26,097     30,179     4,971   79,211   (35,309)
Gain on sale of equity
 investment                       -    (10,830)        -  (10,830)        -
  (gains) on derivative
   instruments              (10,676)     1,896       364   (5,272)   35,163
Impairments of equity
 investments                  1,767          -         -    1,767    19,411
Other                           750        269       833    1,620       830
                          --------------------------------------------------
Equity income adjusted for
 items in Appendix A         17,938     21,514     6,168   66,496    20,095
                          --------------------------------------------------
                          --------------------------------------------------

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             TEEKAY CORPORATION
                     SUMMARY CONSOLIDATED BALANCE SHEETS
                       (in thousands of U.S. dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                               As at       As at       As at
                                            December   September    December
                                                 31,         30,         31,
                                         ----------- ----------- -----------
                                                2012        2012        2011
                                         ----------- ----------- -----------
                                         (unaudited) (unaudited) (unaudited)
                                         ----------- ----------- -----------
ASSETS
Cash and cash equivalents                    639,491     586,901     692,127
Other current assets                         692,389     623,335     495,357
Restricted cash - current                     39,390      35,051       4,370
Restricted cash - long-term                  494,429     496,309     495,784
Vessels held for sale                         22,364       8,000      19,000
Vessels and equipment(2)                   6,628,383   7,174,448   7,382,854
Advances on newbuilding
 contracts/conversions                       692,675     590,114     507,908
Derivative assets                            180,250     177,485     165,269
Investment in equity accounted
 investees(2)                                480,043     441,043     240,537
Investment in direct financing leases        436,601     442,121     459,908
Investment in term loans                     185,934     187,581     186,844
Other assets                                 217,401     200,141     184,438
Intangible assets                            126,136     124,870     136,742
Goodwill                                     166,539     166,539     166,539
----------------------------------------------------------------------------
Total Assets                              11,002,025  11,253,938  11,137,677
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities     478,756     509,798     487,651
Current portion of long-term debt            867,683     826,630     448,579
Long-term debt                             5,099,246   4,806,595   5,422,344
Long-term debt - variable interest
 entity(1)                                   230,359     230,394     220,497
Derivative liabilities                       644,021     732,536     686,879
In process revenue contracts                 241,591     254,615     308,640
Other long-term liabilities                  220,080     219,203     220,986
Redeemable non-controlling interest           28,815      36,241      38,307
Equity:
  Non-controlling interests                1,876,085   2,223,805   1,863,798
  Stockholders of Teekay                   1,315,389   1,414,121   1,439,996
----------------------------------------------------------------------------
Total Liabilities and Equity              11,002,025  11,253,938  11,137,677
----------------------------------------------------------------------------
----------------------------------------------------------------------------

1.  For accounting purposes, the Voyageur Spirit FPSO unit is a variable
    interest entity (VIE), whereby Teekay is the primary beneficiary. As a
    result, the Company has consolidated the VIE as of December 1, 2011,
    even though the Company does not expect to acquire the Voyageur Spirit
    FPSO unit until March 2013.
2.  The balance sheets as at September 30, 2012 and December 31, 2011 have
    been adjusted as a result of the finalization of the purchase price
    allocation for the acquisition of three FPSO units from Sevan Marine ASA
    (Sevan) and a 40 percent equity investment in Sevan.

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             TEEKAY CORPORATION
               SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
                       (in thousands of U.S. dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                         Year Ended
                                                 ---------------------------
                                                         December 31
                                                 ---------------------------
                                                         2012          2011
                                                 ------------- -------------
                                                  (unaudited)   (unaudited)
                                                 ------------- -------------
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
----------------------------------------------------------------------------
Net operating cash flow                               289,561       107,193
----------------------------------------------------------------------------

FINANCING ACTIVITIES
Net proceeds from long-term debt                    1,407,275     2,104,245
Scheduled repayments of long-term debt               (276,403)     (538,844)
Prepayments of long-term debt                      (1,060,169)     (881,207)
(Decrease) increase in restricted cash                (33,592)       73,105
Repurchase of common stock                                  -      (122,195)
Net proceeds from public offerings of Teekay LNG      178,532       334,101
Net proceeds from public offerings of Teekay
 Offshore                                             251,921       189,722
Net proceeds from public offerings of Teekay
 Tankers                                               65,771       107,234
Equity contribution from joint venture partner         86,350             -
Cash dividends paid                                   (83,299)      (93,480)
Distribution from subsidiaries to non-controlling
 interests                                           (246,555)     (201,942)
Other                                                   9,840         5,906
----------------------------------------------------------------------------
Net financing cash flow                               299,671       976,645
----------------------------------------------------------------------------

INVESTING ACTIVITIES
Expenditures for vessels and equipment               (616,525)     (704,746)
Proceeds from sale of vessels and equipment           250,807        33,424
Investment in term loans                                    -       (70,000)
Purchase of Sevan                                           -      (347,800)
Proceeds from sale of marketable securities                 -         8,774
Advances to joint ventures and joint venture
 partners                                            (117,235)      (55,156)
Investment in joint ventures                         (183,554)            -
Direct financing lease payments received and
 other                                                 24,639       (35,955)
----------------------------------------------------------------------------
Net investing cash flow                              (641,868)   (1,171,459)
----------------------------------------------------------------------------

Decrease in cash and cash equivalents                 (52,636)      (87,621)
Cash and cash equivalents, beginning of the year      692,127       779,748
----------------------------------------------------------------------------
Cash and cash equivalents, end of the year            639,491       692,127
----------------------------------------------------------------------------
----------------------------------------------------------------------------

TEEKAY CORPORATION

APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME (LOSS)

(in thousands of U.S. dollars, except per share data)

Set forth below is a reconciliation of the Company's unaudited adjusted net income (loss) attributable to stockholders of Teekay, a non-GAAP financial measure, to net loss attributable to stockholders of Teekay as determined in accordance with GAAP. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company's financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Company's financial results. Adjusted net loss attributable to the stockholders of Teekay is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.


----------------------------------------------------------------------------
----------------------------------------------------------------------------
                           Three Months Ended             Year Ended
                       -------------------------- --------------------------
                           December 31, 2012          December 31, 2012
                       -------------------------- --------------------------
                              (unaudited)                (unaudited)
                                           $ Per                      $ Per
                                  $     Share(1)             $     Share(1)
----------------------------------------------------------------------------
Net loss - GAAP basis      (308,549)                  (311,116)
Adjust for: Net loss
 attributable to non-
 controlling interests      214,838                    150,936
----------------------------------------------------------------------------
Net loss attributable
 to stockholders of
 Teekay                     (93,711)       (1.35)     (160,180)       (2.31)
Add (subtract) specific
 items affecting net
 loss:
Unrealized gains from
 derivative
 instruments(2)             (87,063)       (1.25)      (34,386)       (0.50)
Foreign exchange
 loss(3)                      6,511         0.09        10,600         0.15
Loss on sale of
 assets/asset
 impairments(4)             428,792         6.15       441,057         6.37
Non-recurring
 adjustments to tax
 accruals(5)                (11,360)       (0.16)      (19,366)       (0.28)
Restructuring
 charges(6)                   2,121         0.03         7,565         0.11
Write down (gain on
 sale) of equity
 investment(7)                1,767         0.03        (9,063)       (0.13)
Realized gain upon
 settlement of embedded
 derivative                       -            -       (11,452)       (0.17)
Other(8)                        918         0.01           697         0.01
Non-controlling
 interests' share of
 items above               (245,034)       (3.52)     (280,334)       (4.05)
----------------------------------------------------------------------------
Total adjustments            96,652         1.39       105,318         1.52
----------------------------------------------------------------------------
Adjusted net income
 (loss) attributable to
 stockholders of Teekay       2,941         0.04       (54,862)       (0.79)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

1.  Fully diluted per share amounts.
2.  Reflects the unrealized gains or losses relating to the change in the
    mark-to-market value of derivative instruments that are not designated
    as hedges for accounting purposes, including those included in equity
    income (loss) from joint ventures, and the ineffective portion of
    foreign currency forward contracts designated as hedges for accounting
    purposes.
3.  Foreign currency exchange gains and losses primarily relate to the
    Company's debt denominated in Euros and Norwegian Kroner in addition to
    the unrealized gains and losses on cross currency swaps used to hedge
    the principal and interest on the Norwegian Kroner bonds. Nearly all of
    the Company's foreign currency exchange gains and losses are unrealized.
4.  Relates to impairment during the year ended December 31, 2012 of 18 of
    the Company's conventional tankers, four shuttle tankers and one FSO
    unit, and disposal of two older shuttle tankers and three conventional
    tankers.
5.  Relates to reversal of freight tax accruals and recognition of deferred
    income tax asset relating to a new Norwegian tax structure.
6.  Restructuring charges relate to the reorganization of the Company's
    marine operations.
7.  Relates to impairment of the Company's interest in a joint venture and
    gain on sale of the Company's 40 percent interest in an FPSO unit.
8.  Other includes a revenue adjustment for volatile organic compound
    equipment, partially offset by write down of the Company's investment in
    marketable securities.

TEEKAY CORPORATION

APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME (LOSS)

(in thousands of U.S. dollars, except per share data)

Set forth below is a reconciliation of the Company's unaudited adjusted net income (loss) attributable to stockholders of Teekay, a non-GAAP financial measure, to net income (loss) attributable to stockholders of Teekay as determined in accordance with GAAP. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company's financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Company's financial results. Adjusted net income (loss) attributable to the stockholders of Teekay is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.


----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                 Three Months Ended         Year Ended
                               ---------------------- ----------------------
                                 December 31, 2011      December 31, 2011
                               ---------------------- ----------------------
                                    (unaudited)            (unaudited)
                                               $ Per                  $ Per
                                        $   Share(1)           $   Share(1)
----------------------------------------------------------------------------
Net income (loss) - GAAP basis     58,490               (376,421)
Adjust for: Net loss
 attributable to non-
 controlling interests                160                 17,805
----------------------------------------------------------------------------
Net income (loss) attributable
 to stockholders of Teekay         58,650       0.84    (358,616)     (5.11)
Add (subtract) specific items
 affecting net loss:
Unrealized (gains) losses from
 derivative instruments (2)       (10,519)     (0.15)    106,077       1.51
Foreign currency exchange gains
 (3)                              (14,582)     (0.21)    (12,646)     (0.18)
Gain on acquisition(4)            (68,535)     (1.00)    (68,535)     (0.98)
Asset impairments/net loss on
 vessel sales(5)                   49,845       0.73     170,470       2.43
Upfront payments related to
 interest rate swap resets and
 interest rate swap termination    22,560       0.33     149,658       2.13
Gain on sale of marketable
 securities                        (3,372)     (0.05)     (3,372)     (0.05)
Acquisition costs(6)                1,937       0.03       1,937       0.03
Restructuring charge(7)                 -          -       5,490       0.08
Goodwill impairment(8)                  -          -      36,652       0.52
Adjustments to pension accruals
 and stock-based
 compensation(9)                        -          -      18,102       0.26
Deferred income tax expense on
 unrealized foreign exchange
 gains                                  -          -      10,095       0.14
Other - net(10)                    (2,971)     (0.04)     (9,203)     (0.13)
Non-controlling interests'
 share of items above             (31,420)     (0.46)   (149,205)     (2.12)
----------------------------------------------------------------------------
Total adjustments                 (57,057)     (0.82)    255,520       3.64
----------------------------------------------------------------------------
Adjusted net income (loss)
 attributable to stockholders
 of Teekay                          1,593       0.02    (103,096)     (1.47)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

1.  Fully diluted per share amounts.
2.  Reflects the unrealized gains or losses relating to the change in the
    mark-to-market value of derivative instruments that are not designated
    as hedges for accounting purposes, including those included in equity
    income (loss) from joint ventures, and the ineffective portion of
    foreign currency forward contracts designated as hedges for accounting
    purposes.
3.  Foreign currency exchange gains and losses primarily relate to the
    Company's debt denominated in Euros and Norwegian Kroner, and deferred
    tax liability denominated in Norwegian Kroner. A substantial majority of
    the Company's foreign currency exchange gains and losses are unrealized.
4.  Relates to the bargain purchase gain recognized upon acquisition of
    three FPSO units from Sevan Marine ASA (Sevan) and a 40 percent equity
    investment in Sevan.
5.  Relates to impairment of certain older vessels and equipment and
    impairment on an investment in a joint venture.
6.  Relates to costs associated with the acquisition of three FPSO units
    from Sevan, a 40 percent equity investment in Sevan, and the six MALT
    LNG Carriers.
7.  Restructuring charges relate to crew changes, reflagging of certain
    vessels, and global staffing changes.
8.  Relates to impairment of goodwill of the Company's conventional tanker
    segment.
9.  Relates to one-time pension retirement payment to the Company's former
    President and Chief Executive Officer and accelerated timing of
    accounting recognition of stock-based compensation expense.
10. Relates to non-recurring adjustments to tax accruals, non-recurring
    adjustment to asset retirement obligation, early redelivery penalty for
    an in-chartered vessel, and a non-current asset write down.

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             TEEKAY CORPORATION
               APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
                SUMMARY BALANCE SHEET AS AT DECEMBER 31, 2012
                       (in thousands of U.S. dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                 (unaudited)
                                                        Consoli-
                Teekay    Teekay    Teekay    Teekay      dation
              Offshore       LNG   Tankers    Parent Adjustments       Total
            ----------------------------------------------------------------
ASSETS
Cash and
 cash
 equivalents   206,339   113,577    26,341   293,234           -     639,491
Other
 current
 assets        121,271    19,244    24,903   526,971           -     692,389
Restricted
 cash
 (current &
 non-
 current)            -   528,589         -     5,230           -     533,819
Vessels held
 for sale       13,250         -     9,114         -           -      22,364
Vessels and
 equipment   2,327,337 1,911,016   885,992 1,504,038           -   6,628,383
Advances on
 newbuilding
 contracts     127,286    38,624         -   526,765           -     692,675
Derivative
 assets         15,311   162,559         -     2,380           -     180,250
Investment
 in equity
 accounted
 investees           -   409,735     3,457    73,851      (7,000)    480,043
Investment
 in direct
 financing
 leases         33,215   403,386         -         -           -     436,601
Investment
 in term
 loans               -         -   117,820    68,114           -     185,934
Other assets    37,060    39,237    13,242   127,862           -     217,401
Advances to
 affiliates     29,682    13,864    24,787   (68,333)          -           -
Equity
 investment
 in
 subsid-
 iaries              -         -         -   496,853    (496,853)          -
Intangibles
 and
 goodwill      142,640   145,615         -     4,420           -     292,675
            ----------------------------------------------------------------

TOTAL ASSETS 3,053,391 3,785,446 1,105,656 3,561,385    (503,853) 11,002,025
            ----------------------------------------------------------------
            ----------------------------------------------------------------

LIABILITIES
 AND EQUITY
Accounts
 payable and
 accrued
 liabilities    99,569    59,729    25,792   293,666           -     478,756
Advances
 from
 affiliates     47,810    12,083     3,592   (63,485)          -           -
Current
 portion of
 long-term
 debt          248,385   156,761    25,246   437,291           -     867,683
Long-term
 debt        1,521,247 1,894,166   710,455   973,378           -   5,099,246
Long-term
 debt -
 variable
 interest
 entity              -         -         -   230,359           -     230,359
Derivative
 liabilities   261,479   296,295    33,631    52,616           -     644,021
In-process
 revenue
 contracts     114,038     5,885         -   121,668           -     241,591
Other long-
 term
 liabilities    26,819   106,253     4,757    82,251           -     220,080
Redeemable
 non-
 controlling
 interest       28,815         -         -         -           -      28,815
Equity:
  Non-
   control-
   ling
   interests
   (1)          44,135    41,294         -   118,252   1,672,404   1,876,085
  Equity
   attribu-
   table to
   stock-
   holders/
   unit-
   holders of
   publicly-
   listed
   entities    661,094 1,212,980   302,183 1,315,389  (2,176,257)  1,315,389
            ----------------------------------------------------------------

TOTAL
 LIABILITIES
 AND EQUITY  3,053,391 3,785,446 1,105,656 3,561,385    (503,853) 11,002,025
            ----------------------------------------------------------------
            ----------------------------------------------------------------

NET DEBT(2)  1,563,293 1,408,761   709,360 1,342,564           -   5,023,978
            ----------------------------------------------------------------
            ----------------------------------------------------------------

1.  Non-controlling interests in the Teekay Offshore and Teekay LNG columns
    represent the joint venture partners' share of joint venture net assets.
    Non-controlling interest in the Consolidation Adjustments column
    represents the public's share of the net assets of Teekay's publicly-
    traded subsidiaries.
2.  Net debt represents current and long-term debt less cash and, if
    applicable, current and long-term restricted cash.

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----------------------------------------------------------------------------
                             TEEKAY CORPORATION
              APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
 SUMMARY STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED DECEMBER 31,
                                    2012
                       (in thousands of U.S. dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                (unaudited)
                                                          Consol-
                                                          idation
                      Teekay   Teekay    Teekay   Teekay  Adjust-
                    Offshore      LNG   Tankers   Parent    ments     Total
                    --------------------------------------------------------

Revenues             240,489   97,958    45,493  163,531  (32,248)  515,223
                    --------------------------------------------------------

Voyage expenses       28,178      327     1,017    1,624     (350)   30,796
Vessel operating
 expenses             79,414   23,720    23,615   81,232        -   207,981
Time-charter hire
 expense              15,493        -       841   43,447  (31,898)   27,883
Depreciation and
 amortization         47,249   25,949    18,431   21,831        -   113,460
General and
 administrative       17,916    7,273     3,791   20,207        -    49,187
Loss on sale of
 vessels and
 equipment/asset
 impairments          19,754   29,367   352,546   27,125        -   428,792
Restructuring
 charges               1,115        -         -    1,006        -     2,121
                    --------------------------------------------------------
Total operating
 expenses            209,119   86,636   400,241  196,472  (32,248)  860,220
                    --------------------------------------------------------

Income (loss) from
 vessel operations    31,370   11,322  (354,748) (32,941)       -  (344,997)
                    --------------------------------------------------------

Net interest expense (10,482) (12,494)   (2,826) (13,360)       -   (39,162)
Realized and
 unrealized gain
 (loss) on
 derivative
 instruments          31,187   14,373     1,263   (2,243)       -    44,580
Income tax recovery
 (expense)            11,041      (75)        -    2,062        -    13,028
Equity income (loss)       -   29,634         -   (3,537)       -    26,097
Equity in earnings
 of subsidiaries (1)       -        -         -  (43,665)  43,665         -
Foreign exchange
 gain (loss)           2,272   (6,255)     (203)  (2,219)       -    (6,405)
Other - net              315      615       (55)  (2,565)       -    (1,690)
                    --------------------------------------------------------
Net income (loss)     65,703   37,120  (356,569) (98,468)  43,665  (308,549)
Less: Net (income)
 loss attributable
 to non-controlling
 interests (2)         2,982   (8,895)        -    4,757  215,994   214,838
                    --------------------------------------------------------
Net income (loss)
 attributable to
 stockholders/
 unitholders of
 publicly-listed
 entities             68,685   28,225  (356,569) (93,711) 259,659   (93,711)
                    --------------------------------------------------------
                    --------------------------------------------------------
CFVO -
 Consolidated(3)(4)   97,892   67,354    15,989     (116)       -   181,119
CFVO - Equity
 Investments (5)           -   38,498         -   (1,691)       -    36,807
CFVO - Total          97,892  105,852    15,989   (1,807)       -   217,926
                    --------------------------------------------------------
                    --------------------------------------------------------

1.  Teekay Corporation's proportionate share of the net earnings of its
    publicly-traded subsidiaries.
2.  Net (income) loss attributable to non-controlling interests in the
    Teekay Offshore and Teekay LNG columns represent the joint venture
    partners' share of the net income (loss) of the respective joint
    ventures. Net (income) loss attributable to non-controlling interest in
    the Consolidation Adjustments column represents the public's share of
    the net income (loss) of Teekay's publicly-traded subsidiaries.
3.  Cash flow from vessel operations (CFVO) represents income from vessel
    operations before depreciation and amortization expense, amortization of
    in-process revenue contracts, vessel write downs, gains and losses on
    the sale of vessels, adjustments for direct financing leases to a cash
    basis, and unrealized gains and losses relating to derivatives, but
    includes realized gains and losses on the settlement of foreign currency
    forward contracts. CFVO - Consolidated represents CFVO from vessels that
    are consolidated on the Company's financial statements. Cash flow from
    vessel operations is a non-GAAP financial measure used by certain
    investors to measure the financial performance of shipping companies.
    Please see the Company's Web site at www.teekay.com for a reconciliation
    of this non-GAAP financial measure as used in this release to the most
    directly comparable GAAP financial measure.
4.  In addition to Teekay Parent's CFVO, Teekay Parent also receives cash
    dividends and distributions from its publicly-traded subsidiaries. For
    the three months ended December 31, 2012, Teekay Parent received cash
    dividends and distributions from these subsidiaries totaling $38.2
    million. The dividends and distributions received by Teekay Parent
    include, among others, those made with respect to its general partner
    interests in Teekay Offshore and Teekay LNG. Please refer to Appendix D
    to this release for further details.
5.  Cash flow from vessel operations (CFVO) - Equity Investments represents
    the Company's proportionate share of CFVO from its equity accounted
    vessels and other investments. Please see the Company's website at
    www.teekay.com for a reconciliation of this non-GAAP measure as used in
    this release to the most directly comparable GAAP financial measure.

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             TEEKAY CORPORATION
              APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
  SUMMARY STATEMENT OF INCOME (LOSS) FOR THE YEAR ENDED DECEMBER 31, 2012
                       (in thousands of U.S. dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                (unaudited)
                                                          Consol-
                                                          idation
                      Teekay   Teekay    Teekay   Teekay  Adjust-
                    Offshore      LNG   Tankers   Parent    ments     Total
                 -----------------------------------------------------------

Revenues          964,194  392,251   197,429    559,966 (157,605) 1,956,235
                 -----------------------------------------------------------

Voyage expenses   126,684    1,772     4,618      6,508   (1,299)   138,283
Vessel operating
 expenses         291,268   86,347    89,215    263,289        -    730,119
Time-charter hire
 expense           56,989        -     3,950    226,702 (156,902)   130,739
Depreciation and
 amortization     194,631   99,825    72,365     89,077        -    455,898
General and
 administrative    76,353   27,149    14,930     76,973    7,562    202,967
Loss (gain) on
 sale of vessels
 and
 equipment/asset
 impairments       32,217   29,367   352,546     26,927        -    441,057
Restructuring
 charges            1,115        -         -      6,450        -      7,565
                 -----------------------------------------------------------
Total operating
 expenses         779,257  244,460   537,624    695,926 (150,639) 2,106,628
                 -----------------------------------------------------------
Income (loss)
 from vessel
 operations       184,937  147,791  (340,195)  (135,960)  (6,966)  (150,393)
                 -----------------------------------------------------------
Net interest
 expense          (47,303) (50,709)  (19,959)   (43,485)       -   (161,456)
Realized and
 unrealized loss
 on derivative
 instruments      (26,349) (29,620)   (7,963)   (16,420)       -    (80,352)
Income tax
 (expense)
 recovery          10,477     (625)        -      4,554        -     14,406
Equity income           -   78,866         -        345        -     79,211
Equity in
 earnings of
 subsidiaries (1)       -        -         -     17,706  (17,706)         -
Foreign exchange
 loss                (313)  (8,244)     (212)    (4,129)       -    (12,898)
Other - net         1,566    1,683    (1,852)    (1,031)       -        366
                 -----------------------------------------------------------
Net income (loss) 123,015  139,142  (370,181)  (178,420) (24,672)  (311,116)
Less: Net
 (income) loss
 attributable to
 non-controlling
 interests (2)        (58) (15,437)        -     18,240  148,191    150,936
                 -----------------------------------------------------------
Net income (loss)
 attributable to
 stockholders/
 unitholders of
 publicly-listed
 entities         122,957  123,705  (370,181)  (160,180) 123,519   (160,180)
                 -----------------------------------------------------------
                 -----------------------------------------------------------
CFVO -
 Consolidated
 (3)(4)           405,316  282,198    64,469    (60,294)  (7,000)   684,689
CFVO - Equity
 Investments(5)         -  143,269         -     (6,507)       -    136,762
CFVO - Total                                 (66,801)(4
                  405,316  425,467    64,469          )   (7,000)   821,451
                 -----------------------------------------------------------
                 -----------------------------------------------------------

1.  Teekay Corporation's proportionate share of the net earnings of its
    publicly-traded subsidiaries.
2.  Net (income) loss attributable to non-controlling interests in the
    Teekay Offshore and Teekay LNG columns represent the joint venture
    partners' share of the net income (loss) of the respective joint
    ventures. Net (income) loss attributable to non-controlling interest in
    the Consolidation Adjustments column represents the public's share of
    the net income (loss) of Teekay's publicly-traded subsidiaries.
3.  Cash flow from vessel operations (CFVO) represents income from vessel
    operations before depreciation and amortization expense, amortization of
    in-process revenue contracts, vessel write downs, gains or losses on the
    sale of vessels, adjustments for direct financing leases to a cash
    basis, and unrealized gains and losses relating to derivatives, but
    includes realized gains and losses on the settlement of foreign currency
    forward contracts. CFVO - Consolidated represents CFVO from vessels that
    are consolidated on the Company's financial statements. Cash flow from
    vessel operations is a non-GAAP financial measure used by certain
    investors to measure the financial performance of shipping companies.
    Please see the Company's website at www.teekay.com for a reconciliation
    of this non-GAAP financial measure as used in this release to the most
    directly comparable GAAP financial measure.
4.  In addition to Teekay Parent's CFVO, Teekay Parent also receives cash
    dividends and distributions from its publicly-traded subsidiaries. For
    the year ended December 31, 2012, Teekay Parent received cash dividends
    and distributions from these subsidiaries totaling $154.7 million. The
    dividends and distributions received by Teekay Parent include, among
    others, those made with respect to its general partner interests in
    Teekay Offshore and Teekay LNG. Please refer to Appendix D to this
    release for further details.
5.  Cash flow from vessel operations (CFVO) - Equity investments represents
    the Company's proportionate share of CFVO from its equity accounted
    vessels and other investments. Please see the Company's website at
    www.teekay.com for a reconciliation of this non-GAAP measure as used in
    this release to the most directly comparable GAAP measure.

TEEKAY CORPORATION

APPENDIX C - SUPPLEMENTAL FINANCIAL INFORMATION

TEEKAY PARENT SUMMARY OPERATING RESULTS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2012

(in thousands of U.S. dollars)

(unaudited)

Set forth below is a reconciliation of unaudited cash flow from vessel operations, a non-GAAP financial measure, to (loss) income from vessel operations as determined in accordance with GAAP, for Teekay Parent's primary operating segments. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate Teekay Parent's financial performance. Disaggregated cash flow from vessel operations for Teekay Parent, as provided below, is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.


----------------------------------------------------------------------------
----------------------------------------------------------------------------

                             Owned  In-Chartered                     Teekay
                      Conventional  Conventional                     Parent
                           Tankers       Tankers    FPSOs Other(1)    Total
                     -------------------------------------------------------

Revenues                     4,000        23,960  120,632   14,939  163,531

Voyage expenses                  -         1,535        -       89    1,624
Vessel operating
 expenses                    3,205         5,085   72,474      468   81,232
Time-charter hire
 expense                         -        27,271    5,824   10,352   43,447
Depreciation and
 amortization                2,598             -   19,375     (142)  21,831
General and
 administrative                920         1,670    9,936    7,681   20,207
Asset impairments/net
 loss on vessel sales            -             -        -   27,125   27,125
Restructuring charges            -             -        -    1,006    1,006
                     -------------------------------------------------------
Total operating
 expenses                    6,723        35,561  107,608   46,579  196,472
                     -------------------------------------------------------

(Loss) income from
 vessel operations          (2,723)      (11,601)  13,024  (31,640) (32,941)
                     -------------------------------------------------------

Reconciliation of income (loss) from vessel operations to cash flow from
vessel operations

(Loss) income from
 vessel operations          (2,723)      (11,601)  13,024  (31,640) (32,941)
Depreciation and
 amortization                2,598             -   19,375     (142)  21,831
Asset impairments/net
 loss on vessel sales            -             -        -   27,125   27,125
Amortization of in
 process revenue
 contracts and other             -             -  (15,696)       -  (15,696)
Unrealized losses
 from the change in
 fair value of
 designated foreign
 exchange forward
 contracts                      23             -        -        -       23
Realized losses from
 the settlements of
 non-designated
 foreign exchange
 forward contracts            (461)            -        3        -     (458)
                     -------------------------------------------------------

CASH FLOW FROM VESSEL
 OPERATIONS(2)                (563)      (11,601)  16,705   (4,657)    (116)
                     -------------------------------------------------------
                     -------------------------------------------------------

1.  Results of two chartered-in LNG carriers owned by Teekay LNG and one
    chartered-in FSO unit owned by Teekay Offshore and interest income
    received from an investment in term loan.
2.  Excludes CFVO from the Company's proportionate share of CFVO generated
    by its equity-accounted vessels and other investments.

TEEKAY CORPORATION

APPENDIX C - SUPPLEMENTAL FINANCIAL INFORMATION

TEEKAY PARENT SUMMARY OPERATING RESULTS

FOR THE YEAR ENDED DECEMBER 31, 2012

(in thousands of U.S. dollars)

(unaudited)

Set forth below is a reconciliation of unaudited cash flow from vessel operations, a non-GAAP financial measure, to loss from vessel operations as determined in accordance with GAAP, for Teekay Parent's primary operating segments. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate Teekay Parent's financial performance. Disaggregated cash flow from vessel operations for Teekay Parent, as provided below, is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.


----------------------------------------------------------------------------
----------------------------------------------------------------------------

                             Owned In-Chartered                      Teekay
                      Conventional Conventional                      Parent
                           Tankers   Tankers(1)    FPSOs Other(2)     Total
                      ------------------------------------------------------

Revenues                    24,802      125,444  349,647   60,073   559,966

Voyage expenses                638        5,934        -      (64)    6,508
Vessel operating
 expenses                   10,211       19,887  230,425    2,766   263,289
Time-charter hire
 expense                         -      161,654   21,741   43,307   226,702
Depreciation and
 amortization               11,238            -   77,161      678    89,077
General and
 administrative              3,498        7,141   38,800   27,534    76,973
Asset impairments/net
 loss on vessel sales         (198)           -        -   27,125    26,927
Restructuring charges            -            -        -    6,450     6,450
                      ------------------------------------------------------
Total operating
 expenses                   25,388      194,616  368,126  107,796   695,926
                      ------------------------------------------------------

                      ------------------------------------------------------
Loss from vessel
 operations                   (586)     (69,172) (18,479) (47,723) (135,960)
                      ------------------------------------------------------

Reconciliation of (loss) income from vessel operations to cash flow from
vessel operations

Loss from vessel
 operations                   (586)     (69,172) (18,479) (47,723) (135,960)
Depreciation and
 amortization               11,238            -   77,161      678    89,077
Asset impairments/net
 loss on vessel sales         (198)           -        -   27,125    26,927
Amortization of in
 process revenue
 contracts and other          (138)        (114) (58,686)       -   (58,938)
Unrealized losses from
 the change in fair
 value of designated
 foreign exchange
 forward contracts             (38)           -      259        -       221
Realized (losses)
 gains from the
 settlements of non-
 designated foreign
 exchange forward
 contracts/bunkers/
 FFAs                       (1,930)           -      153        -    (1,777)
Dropdown predecessor
 cash flow (3)              20,155            -        -        -    20,155
                      ------------------------------------------------------
CASH FLOW FROM VESSEL
 OPERATIONS(4)              28,503      (69,286)     408  (19,920)  (60,295)
                      ------------------------------------------------------
                      ------------------------------------------------------

1.  Time-charter hire expense includes a one-time $14.7 million charter
    termination fee paid to Teekay Offshore.
2.  Includes the results of two chartered-in LNG carriers owned by Teekay
    LNG and one chartered-in FSO unit owned by Teekay Offshore, interest
    income received from an investment in term loan and a one-time $7.0
    million success fee payment received from Teekay LNG upon the
    acquisition of six LNG carriers in February 2012.
3.  Includes cash flow from vessel operations (CFVO) relating to assets
    owned by Teekay Parent prior to their acquisition by Teekay Tankers as
    these results are included in the historical results for Teekay Parent.
4.  Excludes CFVO from the Company's proportionate share of CFVO generated
    by its equity-accounted vessels and other investments.

TEEKAY CORPORATION

APPENDIX D - SUPPLEMENTAL FINANCIAL INFORMATION

TEEKAY PARENT FREE CASH FLOW

(in thousands of U.S. dollars)

(unaudited)

Set forth below is an unaudited calculation of Teekay Parent free cash flow for the three months ended December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012, and December 31, 2011. The Company defines free cash flow, a non-GAAP financial measure, as cash flow from vessel operations attributed to its directly-owned and in-chartered assets, distributions received as a result of ownership interests in its publicly-traded subsidiaries (Teekay LNG, Teekay Offshore, and Teekay Tankers), net of interest expense and drydock expenditures in the respective period. For a reconciliation of Teekay Parent cash flow from vessel operations for the three months ended December 31, 2012 to the most directly comparable financial measure under GAAP, please refer to Appendix C to this release. For a reconciliation of Teekay Parent cash flow from vessel operations to the most directly comparable GAAP financial measure for the three months ended September 30, 2012, June 30, 2012, March 31, 2012, and December 31, 2011, please see the Company's website at www.teekay.com. Teekay Parent free cash flow, as provided below, is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.


----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                            Three Months Ended
                              ----------------------------------------------
                              December September     June    March December
                                   31,       30,      30,      31,      31,
                              ----------------------------------------------
                                  2012      2012     2012     2012     2011
                              ----------------------------------------------
Teekay Parent cash flow from
 vessel operations (1)
    Owned Conventional Tankers    (563)      381   13,339   15,347   18,090
    In-Chartered Conventional
     Tankers (2)               (11,601)  (11,813) (28,138) (17,734) (34,957)
    FPSOs                       16,705    (8,780)  (3,205)  (4,313)  35,044
    Other                       (4,657)   (8,958)  (6,441)     136  (13,073)
                              ----------------------------------------------
    Total                         (116)  (29,170) (24,445)  (6,564)   5,104
Daughter company distributions
 to Teekay Parent (3)
  Common shares/units (4)
    Teekay LNG Partners         17,016    17,016   17,016   17,016   15,881
    Teekay Offshore Partners    11,461    11,461   11,461   11,461   11,181
    Teekay Tankers Ltd. (5)        629       420    2,307    2,578    1,772
                              ----------------------------------------------
    Total                       29,106    28,897   30,784   31,055   28,834
  General partner interest
    Teekay LNG Partners          5,935     5,935    5,524    5,524    3,470
    Teekay Offshore Partners     3,155     3,155    2,849    2,782    2,488
                              ----------------------------------------------
    Total                        9,090     9,090    8,373    8,306    5,958

Total Teekay Parent cash flow
 before interest and dry dock
 expenditures                   38,080     8,817   14,712   32,797   39,896
Less:
  Net interest expense (6)     (18,075)  (16,284) (19,269) (19,504) (17,280)
  Dry dock expenditures              -         -     (129)    (124)  (3,659)
                              ----------------------------------------------

TOTAL TEEKAY PARENT FREE CASH
 FLOW                           20,005    (7,467)  (4,686)  13,169   18,957
----------------------------------------------------------------------------
----------------------------------------------------------------------------

1.  Cash flow from vessel operations represents income from vessel
    operations before depreciation and amortization expense, vessel/goodwill
    write downs, gains or losses on the sale of vessels, adjustments for
    direct financing leases on a cash basis, and unrealized gains and losses
    relating to derivatives, but includes realized gains and losses on the
    settlement of foreign currency forward contracts. Cash flow from vessel
    operations is a non-GAAP financial measure used by certain investors to
    measure the financial performance of shipping companies. For further
    details for the quarter ended December 31, 2012, including a
    reconciliation of this non-GAAP financial measure to the most directly
    comparable GAAP financial measure, please refer to Appendix C to this
    release; for a reconciliation of this non-GAAP financial measure to the
    most directly comparable GAAP financial measure for the quarters ended
    September 30, 2012, June 30, 2012, March 31, 2012, and December 31,
    2011, please refer to the Company's website at www.teekay.com.
2.  Includes a one-time charter termination fee of $14.7 million paid to
    Teekay Offshore during the three months ended June 30, 2012.
3.  Cash dividend and distribution cash flows are shown on an accrual basis
    for dividends and distributions declared for the respective period.
4.  Common share/unit dividend/distribution cash flows to Teekay Parent are
    based on Teekay Parent's ownership on the ex-dividend date for the
    respective company and period as follows:

                                      Three Months Ended
                ------------------------------------------------------------
                    December   September        June       March    December
                         31,         30,         30,         31,         31,
                ------------------------------------------------------------
                        2012        2012        2012        2012        2011
                ------------------------------------------------------------

Teekay LNG
 Partners
  Distribution
   per common
   unit          $     0.675 $     0.675 $     0.675 $     0.675 $     0.630
  Common units
   owned by
   Teekay Parent  25,208,274  25,208,274  25,208,274  25,208,274  25,208,274
                ------------------------------------------------------------
  Total
   distribution  $17,015,585 $17,015,585 $17,015,585 $17,015,585 $15,881,213
Teekay Offshore
 Partners
  Distribution
   per common
   unit          $    0.5125 $    0.5125 $    0.5125 $    0.5125 $    0.5000
  Common units
   owned by
   Teekay Parent  22,362,814  22,362,814  22,362,814  22,362,814  22,362,814
                ------------------------------------------------------------
  Total
   distribution  $11,460,942 $11,460,942 $11,460,942 $11,460,942 $11,181,407
Teekay Tankers
 Ltd.
  Dividend per
   share         $      0.03 $      0.02 $      0.11 $      0.16 $      0.11
  Shares owned
   by Teekay
   Parent (5)     20,976,530  20,976,530  20,976,530  16,112,244  16,112,244
                ------------------------------------------------------------
  Total dividend $   629,296 $   419,531 $ 2,307,418 $ 2,577,959 $ 1,772,347

5.  Includes Class A and Class B shareholdings.
6.  Net interest expense includes realized gains and losses on interest rate
    swaps. For the three months ended June 30, 2012, net interest expense
    includes $6.3 million related to 13 conventional tankers prior to their
    sale by Teekay Parent to Teekay Tankers in June 2012. For the three
    months ended September 30, 2011, net interest expense excludes a
    realized loss of $34.4 million related to early termination of an
    interest rate swap agreement.

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the estimated cost and timing of delivery of FPSO, shuttle tanker, LNG and LPG newbuildings, including the Petrojarl Knarr FPSO and the two fuel-saving LNG carriers, the commencement of associated time-charter contracts and the effect on the Company's future operating results; the timing of completion of repairs and field re-installation for the Petrojarl Banff FPSO; the timing, certainty and costs of Teekay Offshore's acquisition of the HiLoad DP unit from Remora and Teekay Parent's investment in Remora, and the effect of these acquisitions on the Company's future cash flows; the estimated timing of commencement of new charter contracts upon delivery of FPSO and shuttle tanker newbuildings; the timing and certainty of securing long-term employment for the two LNG carrier newbuildings; the timing of field installation for the Voyageur Spirit FPSO and of the sale of the Voyageur Spirit FPSO from Sevan to Teekay Parent and then to Teekay Offshore; expected timing of redeliveries of vessels chartered-in by Teekay Parent; the timing, certainty and effect on Teekay Parent's balance sheet and liquidity from distribution growth from daughter subsidiaries and proceeds from sale of warehoused assets; and the Company's future capital expenditure commitments and the debt financings that the Company expects to obtain for its remaining unfinanced capital expenditure commitments.

The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in production of or demand for oil, petroleum products, LNG and LPG, either generally or in particular regions; greater or less than anticipated levels of tanker newbuilding orders or greater or less than anticipated rates of tanker scrapping; changes in trading patterns significantly affecting overall vessel tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates; changes in the offshore production of oil or demand for shuttle tankers, FSOs and FPSOs; decreases in oil production by or increased operating expenses for FPSO units; trends in prevailing charter rates for shuttle tanker and FPSO contract renewals; the potential for early termination of long-term contracts and inability of the Company to renew or replace long-term contracts or complete existing contract negotiations; the inability to negotiate new contracts on the two LNG carrier newbuildings or the HiLoad DP unit to be acquired from Remora; changes affecting the offshore tanker market; shipyard production or vessel conversion delays and cost overruns; delays in commencement of operations of FPSO units at designated fields; changes in the Company's expenses; the Company's future capital expenditure requirements and the inability to secure financing for such requirements; the inability of the Company to complete vessel sale transactions to its public company subsidiaries or to third parties; conditions in the United States capital markets; and other factors discussed in Teekay's filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2011. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Contacts:
Teekay Corporation
Kent Alekson
Investor Relations Enquiries
+1 (604) 844-6654
www.teekay.com

Source: Teekay Corporation

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