Teekay Corporation
NYSE : TK

Teekay Corporation

May 12, 2011 09:01 ET

Teekay Corporation Reports First Quarter Results

HAMILTON, BERMUDA--(Marketwire - May 12, 2011) - Teekay Corporation (NYSE:TK) -

Highlights


--  First quarter 2011 cash flow from vessel operations of $136.4 million. 

--  First quarter 2011 adjusted net loss attributable to stockholders of
    Teekay of $27.9 million, or $0.39 per share (excluding specific items
    which decreased GAAP net income by $1.8 million, or $0.02 per share).

--  Completed sale of remaining 49 percent interest in Teekay Offshore
    Operating L.P. to Teekay Offshore Partners for $390 million; Teekay
    Offshore increased cash distribution by 5.3 percent. 

--  Agreed to sell 33 percent interest in four Angola LNG carrier
    newbuildings to Teekay LNG Partners upon their respective deliveries in
    2011 and early 2012. 

--  Entered into joint venture agreement with Odebrecht to jointly pursue
    FPSO business in Brazil. 

--  Ordered newbuilding FPSO conditional on finalizing a long-term charter
    contract in the North Sea. 

--  Total consolidated liquidity of $2.2 billion as at March 31, 2011, of
    which $1.1 billion at Teekay Parent. 

--  As of May 11, 2011, 2.5 million ($82 million) of Teekay Corporation
    shares repurchased under existing $200 million authorization (1.1
    million shares or $38 million since February 23, 2011). 

Teekay Corporation (Teekay or the Company) (NYSE:TK) today reported an adjusted net loss attributable to stockholders of Teekay(1) of $27.9 million, or $0.39 per share, for the quarter ended March 31, 2011, compared to adjusted net loss of $3.9 million, or $0.05 per share, attributable to the stockholders of Teekay for the same period of the prior year. Adjusted net loss attributable to stockholders of Teekay excludes a number of specific items that had the net effect of decreasing GAAP net income by $1.8 million (or $0.02 per share) for the three months ended March 31, 2011 and decreasing GAAP net income by $10.1 million (or $0.14 per share) for the three months ended March 31, 2010, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, net loss attributable to the stockholders of Teekay of $29.7 million, or $0.41 per share, for the quarter ended March 31, 2011, compared to net loss attributable to the stockholders of Teekay of $14.0 million, or $0.19 per share, for the same period of the prior year. Net revenues(2) for the first quarter of 2011 were $442.9 million, compared to $498.9 million for the same period of the prior year.

On April 4, 2011, the Company declared a cash dividend on its common stock of $0.31625 per share for the quarter ended March 31, 2011. The cash dividend was paid on April 29, 2011, to all shareholders of record on April 15, 2011.

(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).

(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 web site 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.

"During the first quarter and second quarter to date we have seen strong business development activity across all of our businesses, led by our offshore business," commented Peter Evensen, Teekay Corporation's President and Chief Executive Officer. "Based on the recent high pace of offshore project tendering and asset acquisition opportunities, we remain optimistic about the prospects of our offshore business and are actively pursuing several opportunities in the North Sea and Brazil offshore markets. Earlier this week, we signed a conditional contact with Samsung to construct a newbuilding FPSO, subject to finalizing an operating contract with a major oil and gas company for a new North Sea FPSO project. In Brazil, we recently entered into a joint venture agreement with Brazil-based Odebrecht to jointly pursue FPSO opportunities in the growing Brazilian offshore market."

"We have also seen a pick-up in the global LNG trade with several new projects scheduled to come on-line in the next few years after a quiet period following the global financial crisis," Mr. Evensen continued. "The devastating earthquake and tsunami in Japan has resulted in a renewed global focus on LNG and an increase in LNG carrier spot rates, which has helped us to secure new short-term charter contracts on our two smaller LNG carriers, the Arctic Spirit and Polar Spirit, at attractive rates. While all our other gas carriers are chartered-out on long-term fixed-rate contracts, we believe that a tighter LNG spot vessel supply-demand balance will lead to an increase in LNG contract opportunities."

"Finally, in our conventional tanker business, we realized a slight improvement in average spot tanker rates in the first quarter compared to the previous quarter, due primarily to the short-term rate spikes that occurred in late February at the onset of the conflict in Libya. However, based on the projected tanker supply growth, we continue to expect that 2011 will be a challenging year for spot tanker rates. We believe that a period of weak spot tanker rates in the near-term will be a positive for the longer-term balance of tanker supply and demand. In anticipation of this near-term weakness, Teekay has reduced its spot tanker exposure significantly over the past two years and additional in-chartered vessels are scheduled to redeliver over the next 18 months, further reducing our spot tanker exposure and our cash flow breakeven level."

Mr. Evensen added, "I am also pleased to note that we continue to return capital to shareholders, making steady progress under our share repurchase program. Since November 2010, we have repurchased over $82 million of our shares under our existing $200 million authorization, of which approximately $38 million has occurred since the end of February 2011."

Recent Offshore Business Developments

Teekay recently entered into a joint venture agreement with Odebrecht Oil & Gas S.A. (a member of the Odebrecht group) to jointly pursue FPSO projects in Brazil. Teekay is currently working with Odebrecht on potential project opportunities and intends for Odebrecht to be a 50 percent partner in the Tiro Sidon FPSO project. Odebrecht is a well-established Brazil-based company that operates in the engineering and construction, petrochemical, bioenergy, energy, oil and gas, real estate and environmental engineering sectors, with over 120,000 employees and a presence in over 20 countries.

In addition, Teekay has signed a Letter of Intent with a major oil and gas company to provide a new harsh weather FPSO which will operate in the North Sea. Over the past several months, the Company has been involved in the front-end engineering and design (FEED) study for this project and is currently working torwards finalizing a contract with the customer. In connection with this project, Teekay recently signed a conditional contract with Samsung Heavy Industries (Samsung) to construct a newbuilding FPSO unit.

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, excluding results attributed to Teekay Offshore, Teekay LNG and Teekay Tankers, referred to herein as Teekay Parent. A brief description of each entity and an analysis of its respective financial results follow the tables below. Please also refer to the "Fleet List" section below and Appendix B to this release for further details.


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                          Three Months Ended March 31, 2011                 
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                                     (unaudited)                            

(in thousands                                           Consoli-      Teekay
 of U.S.      Teekay               Teekay                 dation Corporation
 doll-      Offshore  Teekay LNG  Tankers      Teekay    Adjust-     Consol-
 ars)    Partners LP Partners LP     Ltd.      Parent      ments      idated
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Net                                                                         
 revenues    208,306      92,849   31,134     162,465    (51,856)    442,898
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Vessel                                                                      
 oper-                                                                  
 ating                                                              
 expense      75,130      20,807    9,602      56,038          -     161,577
Time-                                                                       
 charter                                                                    
 hire                                                                       
 expense      20,270           -        -      94,617    (51,856)     63,031
Depreci-                                                                    
 ation and                                                                  
 amorti-                                                                   
 zation       45,570      22,349   10,784      26,335          -     105,038
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Cash flow                                                                   
 from                                                                       
 vessel                                                                     
 oper-                                                                   
 ation(1)(2)  91,995      67,075   18,863  (41,532)(3)         -     136,401
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Net                                                                         
 debt(4)   1,681,814   1,503,799  330,310     524,130          -   4,040,053
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                          Three Months Ended March 31, 2010                 
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                                     (unaudited)                            
(in                                                     Consoli-      Teekay
thousands     Teekay               Teekay                 dation Corporation
of U.S.     Offshore  Teekay LNG  Tankers      Teekay    Adjust-     Consol-
dollars) Partners LP Partners LP     Ltd.      Parent      ments      idated
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Net                                                                         
 revenues    198,625      92,351   38,285     213,122    (43,532)    498,851
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Vessel                                                                      
 oper-                                                                   
 ating                                                               
 expense      63,388      21,028   11,903      58,216          -     154,535
Time-                                                                       
 charter                                                                    
 hire                                                                       
 expense      25,038           -        -      96,271    (43,532)     77,777
Depreci-                                                                   
 ation and                                                                  
 amortization 45,008      22,156   11,634      29,432          -     108,230
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Cash flow                                                                   
 from                                                                       
 vessel                                                                     
 oper-                                                                   
 ation(1)(2)  89,113      62,816   16,108   35,715 (3)         -     203,752
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Net                                                                         
 debt(4)   1,542,028   1,526,528  292,176     703,317          -   4,064,049
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(1)   Cash flow from vessel operations represents income from vessel        
      operations before depreciation and amortization expense, vessel write-
      downs, gains and losses on the sale of vessels 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. Please see the Company's Web site at http://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 the cash flow from vessel operations 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 Teekay Parent's cash flow from vessel operations,      
      Teekay Parent also receives cash dividends and distributions from its 
      daughter public companies. For the three months ended March 31, 2011  
      and 2010, Teekay Parent received daughter company dividends and       
      distributions totaling $36.5 million and $52.2 million, respectively. 
      The dividends and distributions received by Teekay Parent include     
      those made with respect to its general partner interests in Teekay    
      Offshore and Teekay LNG and its 49 percent interest in Teekay Offshore
      Operating L.P., which is controlled by Teekay Offshore, prior to the  
      sale of this interest to Teekay Offshore on March 8, 2011. Please     
      refer to Appendix D to this release for further details.              
(4)   Net debt represents current and long-term debt less cash and, if      
      applicable, current and long-term restricted cash.                    

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 36 shuttle tankers (including five chartered-in vessels and one committed newbuilding under construction), two floating, production, storage and offloading (FPSO) units, five floating storage and offtake (FSO) units and 11 conventional oil tankers. Teekay Offshore also has the right to participate in certain other FPSO and vessel opportunities. As at March 31, 2011, Teekay Parent owned a 36.9 percent interest in Teekay Offshore (including the 2 percent sole general partner interest).

Cash flow from vessel operations from Teekay Offshore increased to $92.0 million in the first quarter of 2011, from $89.1 million in the same period of the prior year. This increase was primarily due to the acquisition of the Amundsen Spirit, the Nansen Spirit and the Cidade de Rio das Ostras FPSO unit on October 1, 2010, and lower time-charter hire expenses resulting from the redelivery of two in-chartered vessels to their owners. This was partially offset by lower revenue resulting from fewer revenue days from vessels operating under contracts of affreightment and $3.9 million of restructuring charges incurred during the quarter in connection with the sale of a FSO unit and a redelivered vessel.

On March 8, 2011, Teekay Offshore acquired from Teekay the remaining 49 percent interest in Teekay Offshore Operating L.P. (OPCO) for $390 million. Teekay Offshore financed the acquisition through a combination of $175 million in cash (less $15 million in distributions made by OPCO to Teekay between December 31, 2010 and the date of acquisition), and the remainder in the form of the issuance of 7.6 million common units and associated General Partner interest to Teekay in a private placement.

For the first quarter of 2011, Teekay Offshore increased its quarterly distribution by 5.3 percent, to $0.50 per unit. As a result, the cash distribution received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay Offshore totaled $13.4 million for the first quarter of 2011, as detailed in Appendix D to this release.

Teekay LNG Partners L.P.

Teekay LNG provides liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil marine transportation services under long-term, fixed-rate time-charter contracts with major energy and utility companies through its current fleet of 17 LNG carriers, two LPG carriers and 11 conventional tankers. In addition, Teekay LNG has agreed to acquire one newbuilding LPG carrier from a subsidiary of IM Skaugen (Skaugen) in 2011, two newbuilding LPG/Multigas carriers from Teekay Parent in 2011 and a 33 percent interest in four newbuilding LNG carriers from Teekay Parent in 2011 through early 2012, upon their respective delivery dates. Teekay Parent currently owns a 43.6 percent interest in Teekay LNG (including the 2 percent sole general partner interest).

Cash flow from vessel operations from Teekay LNG during the first quarter of 2011, increased to $67.1 million from $62.8 million in the same period of the prior year. This increase was primarily due to the acquisition of two Suezmax tankers and one Handymax tanker from Teekay in the first quarter of 2010 and fewer off-hire days in the first quarter of 2011 compared to the same period of the prior year, partially offset by the sale of the Dania Spirit LPG carrier in November 2010.

In March 2011, Teekay LNG agreed to acquire Teekay Parent's 33 percent interest in four LNG newbuildings upon their respective delivery dates in 2011 and early 2012. The vessels will each be chartered-out to the Angola LNG Project, a consortium which includes subsidiaries of Chevron, Sonangol, BP, Total and ENI, for a period of 20 years concurrent with their respective deliveries.

In April 2011, Teekay LNG completed a public offering of 4.3 million common units, which provided net proceeds to the partnership of approximately $162 million (including 551,800 common units issued upon the partial exercise of the underwriter's overallotment option and the general partner's proportionate capital contribution). The net proceeds from the offering were used to repay a portion of the partnership's revolving credit facilities, which may be redrawn in the future to fund the equity component of the partnership's purchase of the 33 percent interest in the four Angola LNG carrier newbuildings, as well as fund potential acquisition opportunities.

For the first quarter of 2011, Teekay LNG's quarterly distribution was $0.63 per unit. As a result, the cash distribution received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay LNG totaled $19.1 million for the first quarter of 2011 as detailed in Appendix D to this release.

Teekay Tankers Ltd.

Teekay Tankers currently owns a fleet of nine Aframax tankers and six Suezmax tankers. In addition, Teekay Tankers owns a 50 percent interest in a VLCC newbuilding and has invested $115 million in 3-year first priority mortgage loans secured by two VLCC newbuildings which yield an average of 10 percent per annum. Nine of the 15 vessels are currently 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 the existing fleet employment profile, Teekay Tankers has fixed-rate coverage of approximately 60 percent for the remaining three quarters of fiscal 2011. Teekay Parent currently owns a 26.0 percent interest in Teekay Tankers (including 100 percent of the outstanding Class B common shares, which together with its current ownership of Class A common shares, provides Teekay voting control of Teekay Tankers).

Cash flow from vessel operations from Teekay Tankers increased to $18.9 million in the first quarter of 2011, from $16.1 million in the same period of the prior year, primarily due to an increase in Teekay Tankers' average fleet size and the interest income from its investment in the VLCC mortgage loans. This was partially offset by lower average realized tanker rates for its time-charter and spot fleets during the first quarter of 2011, compared to the same period of the prior year.

In February 2011, Teekay Tankers completed an equity offering of 9.9 million Class A common shares (including 1.3 million shares issued upon the full exercise of the underwriters' overallotment option), raising net proceeds of approximately $107 million. Proceeds were used to repay amounts drawn under Teekay Tankers' revolving credit facility, which may be redrawn to fund future vessel acquisitions.

On May 12, 2011, Teekay Tankers declared a first quarter 2010 dividend of $0.25 per share which will be paid on May 27, 2011 to all shareholders of record on May 20, 2011. As a result, based on its ownership of Teekay Tankers Class A and Class B shares, the dividend to be paid to Teekay Parent will total $4.0 million for the first quarter of 2011 as detailed in Appendix D to this release.

Teekay Parent

In addition to its equity ownership interests in Teekay Offshore, Teekay LNG and Teekay Tankers, Teekay Parent directly owns a substantial fleet of vessels. As at May 1, 2011, this included 17 conventional tankers and three FPSO units. In addition, Teekay Parent currently has under construction or conversion one FPSO unit, two Aframax shuttle tankers, two LPG/Multigas carriers, and a 33 percent interest in four newbuilding LNG carriers. In addition, as at May 1, 2011, Teekay Parent had 29 chartered-in conventional tankers (including nine vessels owned by its subsidiaries), two chartered-in LNG carriers owned by Teekay LNG and two chartered-in shuttle tankers owned by Teekay Offshore.

For the first quarter of 2011, Teekay Parent's negative cash flow from vessel operations was $41.5 million, compared to positive cash flow from vessel operations of $35.7 million in the same period of the prior year. The decrease in cash flow is primarily due to the sale of vessels, including the Cidade de Rio das Ostras FPSO unit to Teekay Offshore in October 2010, two Suezmax tankers and one Handymax Product tanker to Teekay LNG in March 2010, three Suezmax tankers and two Aframax tankers to Teekay Tankers during 2010, a non-recurring $30 million retroactive component of revenue recognized in the first quarter of 2010 related to the signing of the Foinaven FPSO contract amendment, a one-time pension retirement payment to Teekay's former President and Chief Executive Officer in the first quarter of 2011, and a decrease in average realized spot tanker rates for the first quarter of 2011 compared to the first quarter of 2010.

On February 22, 2011, Teekay Parent invested $70 million in a 3-year first priority mortgage loan secured by a 2011-built Very Large Crude Carrier (VLCC) owned by an Asia-based shipping company. The loan earns interest at a rate of 9 percent per annum.

On March 8, 2011, Teekay Parent sold its remaining 49 percent interest in OPCO to Teekay Offshore for a combination of $175 million in cash (less $15 million in distributions made by OPCO to Teekay between December 31, 2010 and the date of acquisition) and 7.6 million common units and associated General Partner interest in Teekay Offshore in a private placement.

In March 2011, Teekay Parent agreed to sell its 33 percent interest in the four Angola newbuilding LNG carriers to Teekay LNG upon their respective deliveries in 2011 through early 2012.

In April 2011, Teekay Parent entered into short-term fixed-rate contracts for the Arctic Spirit and Polar Spirit, which are chartered-in from Teekay LNG. Initial contract durations are for six and four months, respectively, and the Arctic Spirit contract includes two one-year options to extend at the charterer's option.

Tanker Market

While average crude tanker freight rates improved slightly in the first quarter of 2011, they remained generally weak due primarily to an oversupply of vessels relative to demand. Rising bunker costs throughout the course of the first quarter also had a negative impact on tanker earnings. However, a number of factors led to a gradual improvement in tanker rates during the course of the quarter. In the Atlantic, severe ice conditions in the Baltic coupled with disruption to Libyan oil supply as a result of political unrest, led to volatility in European crude tanker rates, particularly in February. The decline in Libyan production also prompted OPEC to increase crude oil production, adding to tanker tonne-mile demand. In the Pacific, the devastating earthquake in Japan on March 11th led to an increase in fuel and crude oil imports for power generation, which provided support to Pacific Aframax rates in March and April.

The world tanker fleet grew by 6.5 million deadweight tonnes (mdwt), or 1.4 percent, during the first quarter of 2011 compared to 5.2 mdwt, or 1.2 percent, in the same period last year. There has been a notable increase in charterer discrimination against first generation double-hull tankers with a small number of early 1990s-built vessels sold for scrap in the early part of this year. In combination with the current weakness in spot tanker rates, the rising trend in scrap steel prices may lead to an increase in scrapping later in 2011.

According to the International Energy Agency (IEA), global oil demand is expected to reach 89.4 million barrels per day (mb/d) in 2011, an increase of 1.4 mb/d, or 1.6 percent, from 2010 as global GDP is projected to grow by 4.4 percent in 2011. Growth in global oil demand in 2011 is expected to arise entirely from non-OECD countries, in particular China where oil demand grew by 10 percent year-on-year in the first quarter of 2011.

Teekay Parent Conventional Tanker Fleet Performance

The following table highlights the operating performance of Teekay Parent owned and in-chartered conventional tankers participating in the Company's commercial tonnage pools and vessels on period out-charters with an initial term greater than one year, measured in net revenues per revenue day or time-charter equivalent (TCE) rates:


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                                              Three Months Ended            

                                       March 31,  December 31,     March 31,
                                            2011          2010          2010
                                  ------------------------------------------
                                  ------------------------------------------
Suezmax                                                                     
Gemini Suezmax Pool average spot                                            
 TCE rate (1)                       $     18,671  $     15,564  $     31,940
Spot revenue days (2)(3)                     659           398           609
Average time-charter rate (4)(5)    $     27,250  $     24,620  $     27,385
Time-charter revenue days (3)(4)             401           736           962

Aframax                                                                     
Teekay Aframax Pool average spot                                            
 TCE rate (1)(6)(7)                 $     16,299  $     12,659  $     17,824
Spot revenue days (2)(3)                   1,526         1,324         1,797
Average time-charter rate(5)        $     23,642  $     22,944  $     26,131
Time-charter revenue days(3)                 723           889         1,070

LR2                                                                         
Taurus LR2 Pool average spot TCE                                            
 rate(1)                            $     14,990  $     13,867  $     15,998
Spot revenue days (2)(3)                     450           394           360

MR                                                                          
MR product tanker average spot TCE                                          
 rate(1)                                       -             -  $      9,729
Spot revenue days (2)(3)                       -             -           135
Average product tanker time-                                                
 charter rate(5)                    $     26,011  $     25,632  $     26,312
Time-charter revenue days(3)                 270           237           371
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(1)   Average spot rates include short-term time-charters and fixed-rate    
      contracts of affreightment that are initially under a year in duration
      and third-party vessels trading in the pools.                         
(2)   Spot revenue days include total owned and in-chartered vessels in the 
      Teekay Parent fleet, but exclude pool vessels commercially managed on 
      behalf of third parties. Suezmax spot revenue days exclude four       
      vessels on back-to-back spot in-charter.                              
(3)   Average time-charter rates are adjusted to reflect the vessel-        
      equivalent number of days in the respective period that any synthetic 
      time-charters (STCs) or forward freight agreements (FFAs) were in     
      effect. For vessel classes in which STCs and FFAs are in effect, a    
      corresponding reduction in spot revenue days is made in each of the   
      respective periods.                                                   
(4)   Includes one VLCC on time-charter until March 11, 2011 at a TCE rate  
      of $47,000 per day.                                                   
(5)   Average time-charter rates include realized gains and losses of STCs  
      and FFAs, bunker hedges, short-term time-charters, and fixed-rate     
      contracts of affreightment that are initially one year in duration or 
      greater.                                                              
(6)   Excludes vessels greater than 15 years-old.                           
(7)   Including items outside of the pool (vessels greater than 15 years-old
      and realized results of bunker hedging STCs and FFAs), the average    
      Teekay Aframax spot TCE rate was $12,584 per day, $11,460 per day and 
      $19,443 per day for the three months ended March 31, 2011, December   
      31, 2010 and March 31, 2010, respectively.                            

Fleet List

As at May 1, 2011, Teekay's consolidated fleet consisted of 149 vessels, including chartered-in vessels, newbuildings under construction but excluding vessels managed for third parties, as summarized in the following table:


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                                          Number of Vessels(1)              
                            ------------------------------------------------
                            ------------------------------------------------
                                   Owned  Chartered-in Newbuildings /       
                                 Vessels       Vessels    Conversions  Total
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Teekay Parent Fleet                                                         
  Spot-rate:                                                                
----------------------------                                                
  Aframax Tankers (2)                  -            10              -     10
  Suezmax Tankers                      5             3              -      8
  VLCC Tankers                         -             1              -      1
  LR2 Product Tankers                  2             1              -      3
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  Total Teekay Parent Spot                                                  
   Fleet                               7            15              -     22
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  Fixed-rate:                                                               
----------------------------                                                
  Aframax Tankers (2)                  3             4              -      7
  Suezmax Tankers                      3             1              -      4
  MR Product Tankers                   4             -              -      4
  LNG Carriers (3)                     -             -              -      -
  Shuttle Tankers (4)                  -             -              1      1
  FPSO Units                           3             -              1      4
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  Total Teekay Parent Fixed-                                                
   rate Fleet                         13             5              2     20
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  Total Teekay Parent Fleet           20            20              2     42
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Teekay Offshore Fleet                 48             5              1     54

Teekay LNG Fleet                      30             -              7     37

Teekay Tankers Fleet                  15             -              1     16

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Total Teekay Consolidated                                                   
 Fleet                               113            25             11    149
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(1)   Excludes vessels managed on behalf of third parties.                  
(2)   Excludes nine vessels chartered-in from Teekay Offshore Partners.     
(3)   Excludes two LNG carriers chartered-in from Teekay LNG.               
(4)   Excludes two shuttle tankers chartered-in from Teekay Offshore.       

Liquidity and Capital Expenditures

As at March 31, 2011, Teekay had consolidated liquidity of $2.2 billion, consisting of $567.3 million cash and approximately $1.6 billion of undrawn revolving credit facilities, of which $1.1 billion, consisting of $351.0 million cash and $700.9 million of undrawn revolving credit facilities, is attributable to Teekay Parent. Including pre-arranged newbuilding financing, Teekay's total consolidated liquidity was approximately $2.6 billion.

The Company's remaining capital commitments relating to its portion of newbuildings and conversions were as follows as at March 31, 2011:


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(in millions)                   2011      2012      2013      2014     Total
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Teekay Offshore                    -         -         -         -         -
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Teekay LNG                 $      34         -         -         - $      34
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Teekay Tankers                     - $      20 $      20         - $      40
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Teekay Parent              $     457 $     108         -         - $     565
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Total Teekay Corporation                                                    
 Consolidated              $     491 $     128 $      20         - $     639
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As indicated above, the Company had total capital expenditure commitments pertaining to newbuildings and conversions of approximately $639 million remaining as at March 31, 2011, with pre-arranged financing for approximately $408 million of this amount. The Company expects to obtain debt financing for the Petrojarl Cidade de Itajai FPSO conversion and the VLCC newbuilding (through Teekay Tankers' joint venture with Wah Kwong).

Share Repurchase Program

In October 2010, the Company announced its intention to commence repurchasing shares under the Company's $200 million share repurchase authorization. As of May 11, 2011, the Company had repurchased 2.5 million shares under the Company's existing authorization representing a total cost of $82 million. Shares will be repurchased in the open market at times and prices considered appropriate by the Company. The timing of any purchase and the exact number of shares to be purchased will be dependent on market conditions.

Availability of 2010 Annual Report

Teekay filed its 2010 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (SEC) on April 14, 2011. Copies of this report are available on the Teekay web site, under "SEC Filings", at www.teekay.com. Shareholders may request a printed copy of this Annual Report, including the complete audited financial statements, free of charge by contacting Teekay's Investor Relations.

Conference Call

The Company plans to host a conference call on May 12, 2011 at 11:00 a.m. (ET) to discuss its results for the first quarter of 2011. An accompanying investor presentation will be available on Teekay's Web site 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) 322-8032 or (416) 640-3406, if outside North America,
    and quoting conference ID code 3037716. 

--  By accessing the webcast, which will be available on Teekay's Web site
    at www.teekay.com (the archive will remain on the Web site for a period
    of 30 days). 

The conference call will be recorded and available until Friday, May 20, 2011. 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 3037716.

About Teekay

Teekay Corporation transports approximately 10 percent of the world's seaborne oil, has built a significant presence in the liquefied natural gas shipping sector through its publicly-listed subsidiary, Teekay LNG Partners L.P. (NYSE:TGP), is further growing its operations in the offshore oil production, storage and transportation sector through its publicly-listed subsidiary, Teekay Offshore Partners L.P. (NYSE:TOO), and continues to expand its conventional tanker business through its publicly-listed subsidiary, Teekay Tankers Ltd. (NYSE:TNK). With a fleet of approximately 150 vessels, 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, helping them seamlessly link their upstream energy production to their downstream processing operations. Teekay's 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 INCOME (LOSS)                            
(in thousands of U.S. dollars, except share and per share data)             
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                            Three Months Ended              
                               ---------------------------------------------
                                    March 31,   December 31,      March 31, 
                               ---------------------------------------------
                                         2011           2010           2010 
                               ---------------------------------------------
                                   (unaudited)    (unaudited)    (unaudited)
----------------------------------------------------------------------------
REVENUES(1)                           488,024        502,709        571,401 
----------------------------------------------------------------------------
OPERATING EXPENSES                                                          
Voyage expenses (1)                    45,126         52,998         72,550 
Vessel operating expenses                                                   
 (1)(2)                               161,577        165,650        154,535 
Time-charter hire expense              63,031         63,342         77,777 
Depreciation and amortization         105,038        112,047        108,230 
General and administrative                                                  
 (1)(2)                                70,218         48,486         48,091 
Asset impairments/net loss on                                               
 vessel sales                           3,593         24,195            760 
Restructuring charges                   4,961          5,178          3,783 
----------------------------------------------------------------------------
                                      453,544        471,896        465,726 
----------------------------------------------------------------------------
Income from vessel operations          34,480         30,813        105,675 
----------------------------------------------------------------------------
OTHER ITEMS                                                                 
Interest expense (1)                  (32,794)       (35,177)       (32,152)
Interest income (1)                     2,465          3,050          4,274 
Realized and unrealized gain                                                
 (loss) on derivative                                                       
 instruments                           23,257        140,715        (87,847)
Income tax (expense) recovery            (811)         2,458          7,307 
Equity income (loss) from joint                                             
 ventures (1)                           6,394         29,246         (2,666)
Foreign exchange (loss) gain          (20,340)         4,186         29,026 
Other income (loss) - net                  94          2,323         (9,686)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income                             12,745        177,614         13,931 
Less: Net (income) attributable                                             
 to non-controlling interests         (42,402)       (91,707)       (27,933)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net (loss) income attributable                                              
 to stockholders of Teekay                                                  
 Corporation                          (29,657)        85,907        (14,002)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Loss) earnings per common                                                  
 share of Teekay                                                            
  - Basic                              ($0.41)         $1.18         ($0.19)
  - Diluted                            ($0.41)         $1.16         ($0.19)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted-average number of                                                  
 common shares outstanding                                                  
  - Basic                          71,946,997     72,717,002     72,788,591 
  - Diluted                        71,946,997     74,076,588     72,788,591 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1)   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 income      
      (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              
                               ---------------------------------------------
                                    March 31,   December 31,      March 31, 
                               ---------------------------------------------
                                         2011           2010           2010 
                               ---------------------------------------------
Realized (losses) gains                                                     
 relating to:                                                               
 Interest rate swaps                  (33,996)       (37,681)       (38,586)
 Interest rate swap resets            (92,672)             -              - 
 Foreign currency forward                                                   
  contracts                                                                 
   Vessel operating expenses            1,216           (654)            33 
   General and administrative                                               
    expenses                              109            543           (356)
 Bunkers, FFAs and other                   49         (6,558)        (2,149)
                               ---------------------------------------------
                                     (125,294)       (44,350)       (41,058)
                               ---------------------------------------------
Unrealized gains (losses)                                                   
 relating to:                                                               
 Interest rate swaps                  141,859        179,103        (45,806)
 Foreign currency forward                                                   
  contracts                             6,707            523         (3,217)
 Bunkers, FFAs and other                  (14)         5,439          2,234 
                               ---------------------------------------------
                                      148,552        185,065        (46,789)
                               ---------------------------------------------
Total realized and unrealized                                               
 gains (losses) on non-                                                     
 designated derivative                                                      
 instruments                           23,258        140,715        (87,847)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

      In addition, equity income (loss) from joint ventures includes net    
      unrealized gains (losses) from non-designated interest rate swaps held
      within the joint ventures of $4.2 million, $23.4 million and ($6.1)   
      million for the three months ended March 31, 2011, December 31, 2010, 
      and March 31, 2010, respectively.                                     

(2)   The Company has entered into foreign currency forward contracts, which
      are economic hedges of vessel operating expenses and general and      
      administrative expenses. Certain of these forward contracts have been 
      designated as cash flow hedges pursuant to GAAP. Unrealized gains     
      (losses) arising from hedge ineffectiveness from such forward         
      contracts are reflected in vessel operating expenses and general and  
      administrative expenses in the above Summary Consolidated Statements  
      of Income (Loss), as detailed in the table below:                     


                                            Three Months Ended              
                               ---------------------------------------------
                                     March 31    December 31       March 31 
                               ---------------------------------------------
                                         2011           2010           2010 
                               ---------------------------------------------
Vessel operating expenses                (179)           (52)        (2,082)
General and administrative                 95           (162)          (892)





----------------------------------------------------------------------------
----------------------------------------------------------------------------
TEEKAY CORPORATION                                                          
SUMMARY CONSOLIDATED BALANCE SHEET                                          
(in thousands of U.S. dollars)                                              
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                         As at March 31,  As at December 31,
                                    ----------------------------------------
                                                    2011                2010
                                    ----------------------------------------
                                              (unaudited)        (unaudited)
                                    ----------------------------------------
ASSETS                                                                      
Cash and cash equivalents                        567,325             779,748
Other current assets                             414,404             341,777
Restricted cash - current                         92,733              86,559
Restricted cash - long-term                      493,633             489,712
Vessels and equipment                          6,491,185           6,573,388
Advances on newbuilding                                                     
 contracts/conversions                           261,335             197,987
Derivative assets                                 87,594              83,198
Investment in joint ventures                     220,563             207,633
Investment in direct financing                                              
 leases                                          480,248             487,516
Investment in term loans                         186,184             116,014
Other assets                                     182,759             188,482
Intangible assets                                151,306             155,893
Goodwill                                         203,191             203,191
----------------------------------------------------------------------------
Total Assets                                   9,832,460           9,911,098
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND EQUITY                                                      
Accounts payable and accrued                                                
 liabilities                                     421,851             422,109
Other current liabilities                         14,500                  59
Current portion of long-term debt                743,019             543,890
Long-term debt                                 4,450,725           4,626,308
Derivative liabilities                           376,417             531,235
In process revenue contracts                     185,239             196,106
Other long-term liabilities                      216,435             217,658
Redeemable non-controlling interest               40,614              41,725
Equity:                                                                     
 Non-controlling interests                     1,544,239           1,353,561
 Stockholders of Teekay                        1,839,421           1,978,447
----------------------------------------------------------------------------
Total Liabilities and Equity                   9,832,460           9,911,098
----------------------------------------------------------------------------
----------------------------------------------------------------------------



----------------------------------------------------------------------------
----------------------------------------------------------------------------
TEEKAY CORPORATION                                                          
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS                               
(in thousands of U.S. dollars)                                              
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                    Three Months Ended      
                                              ------------------------------
                                                         March 31           
                                              ------------------------------
                                                        2011           2010 
                                              ------------------------------
                                                  (unaudited)    (unaudited)
                                              ------------------------------
Cash and cash equivalents provided by (used for)                           
OPERATING ACTIVITIES                                                        
----------------------------------------------------------------------------
Net operating cash flow                              (84,964)        94,781 
----------------------------------------------------------------------------
FINANCING ACTIVITIES                                                        
Net proceeds from long-term debt                     240,185        762,275 
Scheduled repayments of long-term debt               (69,893)       (40,304)
Prepayments of long-term debt                       (165,407)      (609,928)
Increase in restricted cash                           (4,602)          (428)
Repurchase of common stock                           (19,888)             - 
Net proceeds from the public offering of                                    
 Teekay Offshore                                           -         94,114 
Net proceeds from the public offering of                                    
 Teekay Tankers                                      107,233              - 
Cash dividends paid                                  (23,172)       (22,999)
Distribution from subsidiaries to non-                                      
 controlling interests                               (48,110)       (33,083)
Other                                                  3,862          1,974 
----------------------------------------------------------------------------
Net financing cash flow                               20,208        151,621 
----------------------------------------------------------------------------
INVESTING ACTIVITIES                                                        
Expenditures for vessels and equipment               (83,822)       (44,696)
Proceeds from sale of vessels and equipment            5,055         10,045 
Investment in term loans                             (70,170)             - 
(Advances) loans to joint ventures                    (1,830)           651 
Other                                                  3,100            449 
----------------------------------------------------------------------------
Net investing cash flow                             (147,667)       (33,551)
----------------------------------------------------------------------------
(Decrease) increase in cash and cash                                        
 equivalents                                        (212,423)       212,851 
Cash and cash equivalents, beginning of the                                 
 period                                              779,748        422,510 
----------------------------------------------------------------------------
Cash and cash equivalents, end of the period         567,325        635,361 
----------------------------------------------------------------------------


----------------------------------------------------------------------------
                            TEEKAY CORPORATION                              
            APPENDIX A - SPECIFIC ITEMS AFFECTING NET (LOSS) INCOME  
              (in thousands of U.S. dollars, except per share data)    

Set forth below is a reconciliation of the Company's unaudited adjusted net 
(loss) income attributable to the 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 (loss) income 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      Three Months Ended
                            ------------------------------------------------
                                      March 31, 2011          March 31, 2010
                            ------------------------------------------------
                                         (unaudited)             (unaudited)
                                              $ Per                   $ Per
                                       $    Share(1)           $    Share(1)
----------------------------------------------------------------------------
Net income - GAAP basis           12,745                  13,931            
Adjust for: Net income                                                      
 attributable to non-                                                       
 controlling interests           (42,402)                (27,933)           
----------------------------------------------------------------------------
Net loss attributable to                                                    
 stockholders of Teekay          (29,657)      (0.41)    (14,002)     (0.19)
Add (subtract) specific                                                     
 items affecting net loss:                                                  
Unrealized (gains) losses                                                   
 from derivative instruments                                                
 (2)                            (152,652)      (2.12)     55,864       0.77
Foreign currency exchange                                                   
 losses (gains) (3)               21,007        0.29     (29,026)     (0.40)
Deferred income tax expense                                                 
 (recovery) on unrealized                                                   
 foreign exchange gains                                                     
 (losses)                          6,519        0.09      (3,209)     (0.04)
Restructuring charges (4)          4,961        0.07       3,783       0.05
Loss on sale of vessels and                                                 
 equipment and asset                                                        
 impairments                       3,593        0.05         760       0.01
Adjustments to pension                                                      
 accruals and stock-based                                                   
 compensation (5)                 18,102        0.25           -          -
Revenue recognized on                                                       
 signing of contract                                                        
 amendment (6)                         -           -     (30,000)     (0.41)
Loss on bond repurchase                                                     
 (8.875 percent notes due                                                   
 2011)                                 -           -      12,108       0.17
Upfront payments related to                                                 
 interest rate swap resets        92,672        1.29           -           -
Other - net(7)                    (3,634)      (0.05)          -           -
Non-controlling interests'                                                  
 share of items above             11,216        0.15        (168)     (0.01)
----------------------------------------------------------------------------
Total adjustments                  1,784        0.02      10,112       0.14
----------------------------------------------------------------------------
Adjusted net loss                                                           
 attributable to                                                            
 stockholders of Teekay          (27,873)      (0.39)     (3,890)     (0.05)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(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 deferred tax liability        
      denominated in Norwegian Kroner. Nearly all of the Company's foreign  
      currency exchange gains and losses are unrealized.                    
(4)   Restructuring charges relate to crew changes, reflagging of certain   
      vessels and global staffing changes.                                  
(5)   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.           
(6)   Reflects the retroactive component of revenue recognized in the first 
      quarter of 2010 related to the signing of the Foinaven FPSO contract  
      amendment on March 30, 2010.                                          
(7)   Relates to non-recurring adjustments to tax accruals.                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             TEEKAY CORPORATION                             
               APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION              
                 SUMMARY BALANCE SHEET AS AT MARCH 31, 2011                 
                       (in thousands of U.S. dollars)                       
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                 (unaudited)                                
                                                        Consoli-            
                                                          dation
               Teekay     Teekay     Teekay    Teekay    Adjust-   
             Offshore        LNG    Tankers    Parent      ments       Total
          ------------------------------------------------------------------
ASSETS                                                                      
Cash and                                                                    
 cash                                                                       
 equiv-                                                                  
 alents       123,422     72,612     20,268   351,023          -     567,325
Other                                                                       
 current                                                                    
 assets       116,163     23,448     11,615   263,178          -     414,404
Restricted                                                                  
 cash                                                                       
 (current                                                                   
 & non-                                                                     
 current)           -    581,926          -     4,440          -     586,366
Vessels                                                                     
 and                                                                        
 equipment  2,218,025  1,922,164    746,980 1,604,016          -   6,491,185
Advances                                                                    
 on                                                                         
 newbuild-                                                                  
 ing                                                                        
 contracts                                                                  
 /conver-                                                                  
 sions         53,670     80,933          -   126,732          -     261,335
Derivative                                                                  
 assets        21,813     50,688          -    15,093          -      87,594
Investment                                                                  
 in joint                                                                   
 ventures           -    180,868         45    39,650          -     220,563
Investment                                                                  
 in direct                                                                  
 financing                                                                  
 leases        65,726    414,327          -       195          -     480,248
Investment                                                                  
 in term                                                                    
 loans              -          -    116,184    70,000          -     186,184
Other                                                                       
 assets        19,286     32,389     11,621   119,463          -     182,759
Advances                                                                    
 to                                                                         
 affil-                                                                  
 iates          9,460      7,238     14,056   (30,754)         -           -
Equity                                                                      
 invest-                                                                  
 ment in                                                               
 subsid-                                                                  
 iaries             -          -          -   476,753   (476,753)          -
Intangibles                                                                 
 and                                                                      
 goodwill     154,096    156,894     13,310    30,197          -     354,497
          ------------------------------------------------------------------
TOTAL                                                                       
 ASSETS     2,781,661  3,523,487    934,079 3,069,986   (476,753)  9,832,460
          ------------------------------------------------------------------
          ------------------------------------------------------------------
LIABILITIES                                                                 
 AND                                                                      
 EQUITY                                                                     
Accounts                                                                    
 payable                                                                    
 and                                                                        
 accrued                                                                    
 liabil-                                                                  
 ities        101,491     53,594     13,434   253,332          -     421,851
Other                                                                       
 current                                                                    
 liabil-                                                                  
 ities         14,500          -          -         -          -      14,500
Advances                                                                    
 from                                                                       
 affil-                                                                  
 iates         84,501    132,210      6,571  (223,282)         -           -
Current                                                                     
 portion                                                                    
 of long-                                                                   
 term debt    137,468    557,567      1,800    46,184          -     743,019
Long-term                                                                   
 debt       1,667,768  1,600,770    348,778   833,409          -   4,450,725
Derivative                                                                  
 liabil-                                                                  
 ities        144,200    167,364     16,886    47,967          -     376,417
In-process                                                                  
 revenue                                                                    
 contracts          -          -        323   184,916          -     185,239
Other                                                                       
 long-term                                                                  
 liabil-                                                                  
 ities         19,794    106,563      2,883    87,195          -     216,435
Redeemable                                                                  
 non-                                                                       
 control-                                                                  
 ling                                                                       
 interest      40,614          -          -         -          -      40,614
Equity:                                                                     
Non-                                                                        
 control-                                                                  
 ling                                                                       
 interests                                                                  
 (1)           47,610     13,768          -       844  1,482,017   1,544,239
Equity                                                                      
 attribu-                                                                  
 table to                                                                   
 stockhold-                                                               
 ers/unit-                                                                  
 holders of                                                                 
 publicly-                                                                  
 listed                                                                     
 entities     523,715    891,651    543,404 1,839,421 (1,958,770)  1,839,421
          ------------------------------------------------------------------
TOTAL                                                                       
 LIABIL-                                                                  
 ITIES AND                                                               
 EQUITY     2,781,661  3,523,487    934,079 3,069,986   (476,753)  9,832,460
          ------------------------------------------------------------------
          ------------------------------------------------------------------
NET                                                                         
 DEBT(2)    1,681,814  1,503,799    330,310   524,130          -   4,040,053
          ------------------------------------------------------------------
          ------------------------------------------------------------------

(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 (LOSS) INCOME FOR THE THREE MONTHS ENDED MARCH 31,   
                                    2011                                    
                       (in thousands of U.S. dollars)                       
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                (unaudited)                                 

                                                          Consoli-          
                                                            dation          
                         Teekay   Teekay  Teekay   Teekay  Adjust-          
                       Offshore      LNG Tankers   Parent    ments    Total 
                       -----------------------------------------------------

Revenues                233,771   93,219  31,744  181,146  (51,856) 488,024 
                       -----------------------------------------------------

Voyage expenses          25,465      370     610   18,681        -   45,126 
Vessel operating                                                            
 expenses                75,130   20,807   9,602   56,038        -  161,577 
Time-charter hire                                                           
 expense                 20,270        -       -   94,617  (51,856)  63,031 
Depreciation and                                                            
 amortization            45,570   22,349  10,784   26,335        -  105,038 
General and                                                                 
 administrative          18,730    6,326   2,669   42,493        -   70,218 
Vessel sales              1,071        -       -    2,522        -    3,593 
Restructuring charges     3,924        -       -    1,037        -    4,961 
                       -----------------------------------------------------
Total operating                                                             
 expenses               190,160   49,852  23,665  241,723  (51,856) 453,544 
                       -----------------------------------------------------

Income (loss) from                                                          
 vessel operations       43,611   43,367   8,079  (60,577)       -   34,480 
                       -----------------------------------------------------

Net interest expense     (8,340) (10,176) (1,146) (10,667)       -  (30,329)
Realized and unrealized                                                     
 gain on derivative                                                         
 instruments             10,840   10,769     453    1,195        -   23,257 
Income tax (expense)                                                        
 recovery                (2,653)    (836)      -    2,678        -     (811)
Equity income (loss)                                                        
 from joint ventrues          -    8,057      (1)  (1,662)       -    6,394 
Equity in earnings of                                                       
 subsidiaries (1)             -        -       -   38,426  (38,426)       - 
Foreign exchange (loss)                                                     
 gain                      (799) (21,033)    (22)   1,514        -  (20,340)
Other - net               1,310     (411)   (272)    (533)       -       94 
                       -----------------------------------------------------
Net income (loss)        43,969   29,737   7,091  (29,626) (38,426)  12,745 
Less: Net (income) loss                                                     
 attributable to non-                                                       
 controlling interests                                                      
 (2)                     (4,085)   4,619       -      (31) (42,905) (42,402)
                       -----------------------------------------------------
Net (loss) income                                                           
 attributable to                                                            
 stockholders/unitholders                                                   
 of publicly-listed                                                      
 entities                39,884   34,356   7,091  (29,657) (81,331) (29,657)
                       -----------------------------------------------------
                       -----------------------------------------------------
CASH FLOW FROM VESSEL                                                       
OPERATIONS(3)(4)         91,995   67,075  18,863  (41,532)       -  136,401 
                       -----------------------------------------------------
                       -----------------------------------------------------

(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 represents income from vessel        
      operations before depreciation and amortization expense, vessel write-
      downs, gains or losses on the sale of vessels 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. 
      Please see the Company's Web site at http://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 cash flow from vessel operations,      
      Teekay Parent also receives cash dividends and distributions from its 
      daughter public companies. For the three months ended March 31, 2011, 
      Teekay Parent received daughter company cash dividends and            
      distributions totaling $36.5 million. The dividends and distributions 
      received by Teekay Parent include those made with respect to its      
      general partner interests in Teekay Offshore and Teekay LNG and its 49
      percent interest in Teekay Offshore Operating L.P., which is          
      controlled by Teekay Offshore, prior to the sale of this interest to  
      Teekay Offshore on March 8, 2011. Please refer to Appendix D to this  
      release for further details.                                          



                             TEEKAY CORPORATION                             
               APPENDIX C - SUPPLEMENTAL FINANCIAL INFORMATION              
                   TEEKAY PARENT SUMMARY OPERATING RESULTS                  
                  FOR THE THREE MONTHS ENDED MARCH 31, 2011                 
                       (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 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.                   


----------------------------------------------------------------------------
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                                       Fixed-                               
                               Spot      rate                         
                            Conven-   Conven-                        Teekay 
                             tional    tional              Other     Parent 
                             Tanker    Tanker      FPSO       (1)     Total 
                          --------------------------------------------------
Revenues                     68,305    36,141    66,512    10,188   181,146 

Voyage expenses              16,955       251         -     1,475    18,681 
Vessel operating expenses     9,568     9,438    36,130       902    56,038 
Time-charter hire expense    63,462    12,613     7,866    10,676    94,617 
Depreciation and                                                            
 amortization                 5,133     5,956    14,562       684    26,335 
General and administrative   10,085     4,158     9,867    18,383    42,493 
Asset impairments/net loss                                                  
 on vessel sales              2,500        22         -         -     2,522 
Restructuring charges             5      (168)        -     1,200     1,037 
                          --------------------------------------------------
Total operating expenses    107,708    32,270    68,425    33,320   241,723 
                          --------------------------------------------------
Income (loss) from vessel                                                   
 operations                 (39,403)    3,871    (1,913)  (23,132)  (60,577)
                          --------------------------------------------------

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

Income (loss) from vessel                                                   
 operations                 (39,403)    3,871    (1,913)  (23,132)  (60,577)
Depreciation and                                                            
 amortization                 5,133     5,956    14,562       684    26,335 
Asset impairments/loss on                                                   
 vessel sales                 2,500        22         -         -     2,522 
Amortization of in process                                                  
 revenue contracts and                                                      
 other                            -         -   (10,798)        -   (10,798)
Unrealized losses from the                                                  
 change in fair value of                                                    
 designated foreign                                                         
 exchange forward                                                           
 contracts                        -       (12)       42         -        30 
Realized gains (losses)                                                     
 from the                                                                   
settlements of non-                                                         
 designated foreign                                                         
exchange forward                                                            
contracts/bunkers/FFAs            -       221       735         -       956 
                          --------------------------------------------------
CASH FLOW FROM VESSEL                                                       
OPERATIONS                  (31,770)   10,058     2,628   (22,448)  (41,532)
                          --------------------------------------------------
                          --------------------------------------------------

(1)   Results of two chartered-in LNG carriers owned by Teekay LNG and one  
      chartered-in FSO unit owned by Teekay Offshore and includes one-time  
      pension retirement payment to the Company's former President and Chief
      Executive Officer and non-cash stock-based compensation adjustments.  



                             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 March 31, 2011, December 31, 2010, September 30, 
2010, June 30, 2010, and March 31, 2010. 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), and its 49 percent ownership     
interest in Teekay Offshore Operating L.P., up to March 8, 2011, 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 March 31, 2011 to the most directly comparable financial 
measure under GAAP please refer to Appendix B or 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 December 31, September 30, June 30, and March 31, 2010, please see the
Company's Web site at http://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                     
                          March 31,       31,       30,  June 30, March 31, 
                          --------------------------------------------------
                               2011      2010      2010      2010      2010 
                          --------------------------------------------------
Teekay Parent cash flow                                                     
 from vessel operations     (41,532)  (21,674)  (29,394)   21,521    35,715 

Daughter company                                                            
 distributions to Teekay                                                    
 Parent (1)                                                                 
  Common shares/units (2)                                                   
    Teekay LNG Partners      15,881    15,881    15,125    15,125    15,125 
    Teekay Offshore                                                         
     Partners                11,181     7,030     7,030     7,030     7,030 
    Teekay Offshore                                                         
     Operating L.P. (OPCO)                                                  
     (3)                          -    15,000    15,000    16,000    20,619 
    Teekay Tankers (4)        4,028     3,545     4,995     5,478     5,962 
                          --------------------------------------------------
    Total                    31,090    41,456    42,150    43,633    48,736 
  General partner interest                                                  
    Teekay LNG Partners       3,176     2,949     2,352     2,352     2,277 
    Teekay Offshore                                                         
     Partners                 2,212     1,485     1,312     1,150     1,150 
                          --------------------------------------------------
    Total                     5,388     4,434     3,664     3,502     3,427 
Total Teekay Parent cash                                                    
 flow before interest and                                                   
 drydock expenditures        (5,054)   24,216    16,420    68,656    87,878 
Less:                                                                       
  Net interest expense (5)  (19,214)  (25,855)  (27,224)  (30,602)  (23,413)
  Drydock expenditures         (287)   (7,474)   (4,174)   (1,949)     (339)
                          --------------------------------------------------
TOTAL TEEKAY PARENT FREE                                                    
 CASH FLOW                  (24,555)   (9,113)  (14,978)   36,105    64,126 
----------------------------------------------------------------------------
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(1)   Cash dividend and distribution cash flows are shown on an accrual     
      basis for dividends and distributions declared for the respective     
      period.                                                               
(2)   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                      
                   March 31,         31,         30,    June 30,   March 31,
                  ----------------------------------------------------------
                        2011        2010        2010        2010        2010
                  ----------------------------------------------------------

Teekay LNG                                                                  
 Partners                                                                   
  Distribution                                                              
   per common                                                               
   unit          $      0.63 $      0.63 $      0.60 $      0.60 $      0.60
  Common units                                                              
   owned by                                                                 
   Teekay Parent  25,208,274  25,208,274  25,208,274  25,208,274  25,208,274
                ------------------------------------------------------------
  Total                                                                     
   distribution  $15,881,213 $15,881,213 $15,124,964 $15,124,964 $15,124,964
Teekay Offshore                                                             
 Partners                                                                   
  Distribution                                                              
   per common                                                               
   unit          $      0.50 $     0.475 $     0.475 $     0.475 $     0.475
  Common units                                                              
   owned by                                                                 
   Teekay Parent  22,362,814  14,800,000  14,800,000  14,800,000  14,800,000
                ------------------------------------------------------------
  Total                                                                     
   distribution  $11,181,407 $ 7,030,000 $ 7,030,000 $ 7,030,000 $ 7,030,000
Teekay Tankers                                                              
  Dividend per                                                              
   share         $      0.25 $      0.22 $      0.31 $      0.34 $      0.37
  Shares owned                                                              
   by Teekay                                                                
   Parent (4)     16,112,244  16,112,244  16,112,244  16,112,244  16,112,244
                ------------------------------------------------------------
  Total dividend $ 4,028,061 $ 3,544,694 $ 4,994,796 $ 5,478,163 $ 5,961,530

(1)   Based on 49 percent interest owned directly by Teekay Parent, prior to
      March 8, 2011.                                                        
(2)   Includes Class A and Class B shareholdings.                           
(3)   Net interest expense includes realized gains and losses on interest   
      rate swaps. Excludes upfront payment of $92.7 million related to      
      interest rate swap resets for the three months ended March 31, 2011.  

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: tanker market fundamentals, including the balance of supply and demand in the tanker market and the impact of seasonal factors on spot tanker charter rates; the redelivery of conventional tankers in-chartered by the Company and the expected impact of these redeliveries on the Company's exposure to the spot tanker market and its cash flow breakeven rate; market conditions and their impact on new contract opportunities and project returns in the offshore business; expectations regarding the award of a new FPSO operating contract in the North Sea; the impact of the spot rate LNG carrier market conditions on the availability of new of long-term LNG carrier charter contracts in the future; the expected total cost of vessels and FPSO units under construction or conversion; scheduled vessel and FPSO unit delivery and conversion dates and commencement of time-charter contracts for these vessels and FPSO units; the Company's future capital expenditure commitments and the financing requirements for such commitments; and the intention of Company management to continue repurchasing shares under the Company's existing $200 million repurchase authorization.

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 their implementation; 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; failure to win future FPSO project contracts, including the potential award of a new FPSO operating contract with a major oil and gas company in the North Sea; changes affecting the offshore tanker market; shipyard production delays and cost overruns; 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, 2010. 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

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