UPDATE 2-Teekay Q4 adj. profit up; sees demand to remain subdued

* Adjusted shr $0.73, inline with estimates * Net revenue up 23 pct * Spot tanker segment helps

* Sees tanker demand remaining subdued for rest of 2009

(Recasts to add CEO comments from conference, background, update share movement)

By Hezron Selvi

June 4 (Reuters) - Teekay Corp (TK.N), whose tanker ships transport crude oil and other petroleum products, reported higher adjusted quarterly earnings helped mainly by a significant jump in revenue from the spot tanker segment.

"In the short term the play on the oil price contango has led to a reported 100 million barrels of oil currently being stored on vessels adding temporary tanker demand," Chief Executive Bjorn Moller said in a conference call with analyst.

Oil companies are storing a record volume of oil at sea in giant tankers as world crude supply outstrips demand.

The volume of oil stored at sea has risen to record levels because the price of oil for use now is well below the value of oil for future delivery -- a market structure known as contango, typical of a bear market. [ID:nLU208217]

Although Teekay benefitted from the spot market, the company said it has reduced its spot market exposure through a number of additional fixed-rate charters as it expects the tanker market to remain challenging for the rest of the year.

"We expect tanker demand to remain subdued for the rest of 2009," Moller said in the call.

He also said he expects scrapping of ships to rise substantially if today's spot rates continue for few more quarters.

However, the company is a little more positive about 2010.

"It's too early to call the turning point in the market but see reason for optimism that the tanker market should improve next year," Moller said.

He believes that the impact of global economic stimulus packages in major economies coupled with energy prices that are well below the levels that led to demand destruction should lead to oil demand growth next year. "Any reinstatement of OPEC output to meet returning oil demand would result in significant growth in tanker demand," he added.

ADJUSTED PROFIT UP

For the fourth quarter, the company posted a net loss of $660.8 million, or $9.12 a share, compared with a net loss of $114.8 million, or $1.55 a share, a year earlier.