Profile: Teekay Corporation (TK.N)

Teekay Corporation (Teekay), incorporated on February 9, 1979, is a provider of international crude oil and petroleum product transportation services. With a fleet of 175 vessels, offices in 17 countries, Teekay provides marine services to the oil and gas companies, helping them link their upstream energy production to their downstream processing operations. The Company operates in four business segments: shuttle tanker and floating storage and off-take (FSO) segment, and floating production, storage and offloading (FPSO) segment; liquefied gas segment; spot tanker segment, and fixed-rate tanker segment. The Company’s shuttle tanker and FSO segment and FPSO segment includes its shuttle tanker operations, FSO units, and its FPSO units, which primarily operate under long-term fixed-rate contracts. As of December 31, 2008, its shuttle tanker fleet, including newbuildings on order, had a total cargo capacity of approximately 4.9 million deadweight tons (dwt). During the year ended December 31, 2008, the Company acquired the remaining 35.3% interest in Teekay Petrojarl ASA.

The Company’s liquefied gas segment includes its liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carriers. All of its LNG and LPG carriers are subject to long-term, fixed-rate time-charter contracts. As of December 31, 2008, this fleet, including newbuildings on order, had a total cargo carrying capacity of approximately 3.1 million cubic meters. As of December 31, 2008, its fleet (excluding vessels managed for third parties) consisted of 186 vessels, including chartered-in vessels and newbuildings on order. As of December 31, 2008, the Company had 22 vessels under construction. Teekay Navion Shuttle Tankers and Offshore and Teekay Petrojarl provides marine transportation, processing and storage services to the offshore oil industry, including shuttle tanker, FSO and FPSO services. Teekay Gas Services provides gas transportation services, primarily under long-term fixed-rate contracts to energy and utility companies. These services include the transportation of LNG and LPG. Teekay Tanker Services is responsible for the commercial management of its conventional crude oil and product tanker transportation services. It offers a range of shipping solutions through its worldwide network of commercial offices.

Shuttle Tanker and FSO Segment and FPSO Segment

The main services its shuttle tanker and FSO segment and its FPSO segment provide to customers include offloading and transportation of cargo from oil field installations to onshore terminals through offshore loading shuttle tankers; floating storage for oil field installations via FSO units, and floating production, processing and storage services through FPSO units. As of December 31, 2008, the Company owned 32 shuttle tankers (including four newbuildings) and chartered-in an additional nine shuttle tankers. As of December 31, 2008, the Company had five FSO units. The major markets for FSO units are Asia, the Middle East, West Africa, South America and the North Sea. At December 31, 2008, the Company had five FPSO units. During 2008, a total of approximately 37% of its net revenues were earned by the vessels in the shuttle tankers and FSO segment and FPSO segment.

Liquefied Gas Segment

The Company’s liquefied gas segment primarily consists of LNG and LPG carriers subject to long-term, fixed-rate time-charter contracts. As of December 31, 2008, the Company had 14 LNG carriers and an additional five newbuilding LNG carriers on order, all of which were scheduled to commence operations upon delivery under long-term fixed-rate time-charters and in which its interests range from 33% to 70%. In addition, as of December 31, 2008, it had six LPG carriers, of which five are under construction. During 2008, approximately 9% of the Company’s net revenues were earned by the vessels in its liquefied gas segment.

Spot Tanker Segment

The Company’s spot tanker segment includes its conventional crude oil tankers and product carriers operating on the spot tanker market or subject to time-charters or contracts of affreightment priced on a spot-market basis or short-term fixed-rate contracts (contracts with an initial term of less than three years). As of December 31, 2008, the Company’s Aframax tankers in this segment had a total cargo capacity of approximately 4.9 million deadweight tons. As of March 1, 2009, 32 of its Aframax tankers operated in the Aframax tanker pool, six of its LR2 tankers operated in the LR2 tanker pool and 14 of its Suezmax tankers operated in the Gemini Pool. During 2008, approximately 43% of its net revenues were earned by the vessels in the spot tanker segment.

Fixed-Rate Tanker Segment

The Company’s fixed-rate tanker segment includes its conventional crude oil and product tankers on long-term fixed-rate time-charter contracts. The vessels in its fixed-rate tanker segment primarily consist of Aframax and Suezmax tankers. During 2008, approximately 11% of its net revenues were earned by the vessels in the fixed-rate tanker segment.