Teekay Corporation

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Press Release $TK Teekay Corporation

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Teekay Corporation Reports Fourth Quarter and Annual Results


HAMILTON, BERMUDA--(Marketwire - February 21, 2013) - 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.



+-------------+----------------------------------------------------------------+
|             |              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|
+-------------+----------------------------------------------------------------+
|             |                                                                |
|             |                                                                |
|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|
+-------------+----------------------------------------------------------------+
|
+-------------+----------------------------------------------------------------+
|             |                                                                |
|             |                                                                |
|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|
+-------------+----------------------------------------------------------------+
|
|
|
+-------------+----------------------------------------------------------------+
|             |              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|
+-------------+----------------------------------------------------------------+
|             |                                                                |
|             |                                                                |
|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|
+-------------+----------------------------------------------------------------+
|
+-------------+----------------------------------------------------------------+
|             |                                                                |
|             |                                                                |
|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|
+-------------+----------------------------------------------------------------+


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:

+-----------------------------+-----------------------------------------+
|                             |Number of Vessels(1)                     |
|                             +-----------------------------------+-----+
|                             |Owned   Chartered-in Newbuildings /|     |
|                             |                                   |     |
|                             |Vessels Vessels      Conversions   |Total|
+-----------------------------+-----------------------------------+-----+
|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    |
+-----------------------------+-----------------------------------+-----+
|  Total Teekay Parent Fleet  |8       7            3             |18   |
+-----------------------------+-----------------------------------+-----+
|                             |                                   |     |
|                             |                                   |     |
|Teekay Offshore Fleet        |43      4            4             |51   |
|                             |                                   |     |
|                             |                                   |     |
|                             |                                   |     |
|Teekay LNG Fleet             |55      5            10            |70   |
|                             |                                   |     |
|                             |                                   |     |
|                             |                                   |     |
|Teekay Tankers Fleet         |27      1            1             |29   |
|                             |                                   |     |
|                             |                                   |     |
+-----------------------------+-----------------------------------+-----+
|Total Teekay Consolidated    |                                   |     |
|Fleet                        |133     17           18            |168  |
+-----------------------------+-----------------------------------+-----+


1. Ownership interests in these vessels range from 33 percent to 100percent.
   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:

+-------------------------+-----+-----+----+-----+-------+---------------------+
|                         |     |     |    |     |       |Amount Financed to   |
| (in millions)           |2013 |2014 |2015|2016 |Total  |Date                 |
+-------------------------+-----+-----+----+-----+-------+---------------------+
|Teekay Offshore (1)      |$ 323|  -  |  - |  -  |$ 323  |$ 170                |
+-------------------------+-----+-----+----+-----+-------+---------------------+
|Teekay LNG(2)            |$ 26 |$ 106|$ 93|$ 305|$ 530  |$ 70                 |
+-------------------------+-----+-----+----+-----+-------+---------------------+
|Teekay Tankers (3)       |$ 27 |  -  |  - |  -  |$ 27   |$ 27                 |
+-------------------------+-----+-----+----+-----+-------+---------------------+
|Teekay Parent (4)        |$ 81 |$ 343|  - |  -  |$ 424  |$ 119((5))           |
+-------------------------+-----+-----+----+-----+-------+---------------------+
|Total Teekay Corporation |     |     |    |     |       |                     |
|Consolidated             |$ 457|$ 449|$ 93|$ 305|$ 1,304|$ 386((5))           |
+-------------------------+-----+-----+----+-----+-------+---------------------+


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)



                   Teekay    Teekay    Teekay    Teekay   Consolidation

                 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
subsidiaries            -         -         -   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-
  controlling
  interests (1)    44,135    41,294         -   118,252       1,672,404    1,876,085

  Equity
  attributable
  to
  stockholders/
  unitholders
  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.



----------------------------------------------------------------------------------------
                                  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)



                      Teekay    Teekay     Teekay    Teekay   Consolidation

                    Offshore       LNG    Tankers    Parent     Adjustments      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)



                  Teekay    Teekay     Teekay         Teekay   Consolidation

                Offshore       LNG    Tankers         Parent     Adjustments       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     405,316   425,467     64,469   (66,801)((4) )        (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.

Contact Information

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




This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
    other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
     originality of the information contained therein.

Source: Teekay Corporation via Thomson Reuters ONE
[HUG#1680153]



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