Profile: Teekay Corp (TK.N)
24 Apr 2015
Teekay Corporation (Teekay), incorporated on February 9, 1979, a Bermuda-based company, is a provider of international crude oil and gas marine transportation services in Bermuda and internationally. It also offers offshore oil production, storage and offloading services, underLong-term, fixed-rate contracts. As of September 30, 2014, its fleet consisted of over 190 vessels, including chartered-in vessels, and newbuildings/conversions on order but excluding vessels managed for third parties. The Company has divided its operations into four areas: the shuttle tanker and floating storage and off-take (FSO) segment (included in its Teekay Shuttle and Offshore business unit), the floating, production, storage and offloading (FPSO) segment (included in its Teekay Petrojarl business unit), the liquefied gas segment (included in its Teekay Gas Services business unit), and the conventional tanker segment, consisting of the spot tanker sub-segment and fixed-rate tanker sub-segment (both included in its Teekay Tanker Services business unit). The Company’s publicly-listed subsidiaries include Teekay Offshore Partners L.P. (Teekay Offshore), Teekay LNG Partners L.P. (Teekay LNG) and Teekay Tankers Ltd. (Teekay Tankers).
The Company’s shuttle tanker and FSO segment and its FPSO segment include its shuttle tanker operations, FSO units, and its FPSO units, which operates underLong-term fixed-rate contracts. As of December 31, 2011, its shuttle tanker fleet, including new-buildings on order, had a total cargo capacity of approximately five million deadweight tons. Its liquefied gas segment includes its liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carriers. As of December 31, 2011, this fleet, including new-buildings on order, had a total cargo carrying capacity of approximately 3.3 million cubic meters. Its conventional tanker segment includes its conventional crude oil tankers and product carriers. Its spot tanker sub-segment consists of crude oil tankers and product tankers operating in the spot-tanker market. Its Aframax, Suezmax, and product tankers are the vessels included in the spot tanker sub-segment. Its fixed-rate tanker sub-segment includes its conventional crude oil and product tankers on fixed-rate time-charter contracts with an initial duration of at least one year.
Shuttle Tanker and FSO Segment and FPSO Segment
The main services that the Company’s Shuttle Tanker and FSO segment, and its FPSO segment provide to customers are offloading and transportation of cargo from oil field installations to onshore terminals through offshore loading shuttle tankers; floating storage for oil field installations through FSO units; and floating production, processing, and storage services through FPSO units. Shuttle Tankers: As of December 31, 2013, the Company had ownership interests in 32 shuttle tankers and chartered-in an additional 3 shuttle tankers. FSO Units: FSO units provide on-site storage for oil field installations that have no storage facilities or that require supplemental storage. The Company’s FSO units are placed onLong-term, fixed-rate time-charters or bareboat charters as an integrated part of the field development plan. As of December 31, 2013, it had ownership interests in five FSO units and one tanker being converted into a FSO unit. The major markets for FSO units are South East Asia, West Africa, Northern Europe, the Mediterranean, and South West Asia/the Middle East. FPSO Units: FPSO units are offshore production facilities that are ship-shaped or cylindrical-shaped and store processed crude oil in tanks located in the hull of the vessel. FPSO units are used as production facilities to develop marginal oil fields or deepwater areas remote from existing pipeline infrastructure. As of December 31, 2013, the Company had ownership interests in 10 FPSO units (including 1 unit under construction). During the year ended December 31, 2013, a total of approximately 61% of its net revenues were earned by the vessels in its shuttle tankers and FSO segment and FPSO segment.
Liquefied Gas Segment
This segment includes the Company’s LNG and LPG carriers. LNG carriers are chartered to carry LNG pursuant to time-charter contracts, where a vessel is hired for a fixed period of time. LPG carriers are primarily chartered to carry LPG on time-charters, on contracts of affreightment or spot voyage charters. As of December 31, 2013, the Company had ownership interests in 29 LNG carriers, as well as 5 additional newbuilding LNG carriers on order. In addition, it had ownership of 5 LPG carriers and part ownership, through its joint venture agreement with Belgium-based Exmar NV, in another 11 LPG carriers, 12 newbuilding LPG carriers on order, and 5 chartered-in LPG carriers. During 2013, approximately 17% of its net revenues were earned by the vessels in its liquefied gas segment.
Conventional Tanker Segment
This segment includes the Company’s conventional crude oil tankers and product carriers. Spot Tanker Sub-Segment: The Company’s spot tanker sub-segment consists of conventional crude oil tankers and product tankers operating in the spot-tanker market or subject to time-charters or contracts of affreightment that are priced on a spot-market basis or are short-term, fixed-rate contracts. It considers contracts that have an original term of approximately one year in duration to be short-term. As of December 31, 2013, the Company participated in three main pooling or revenue sharing commercial management arrangements. These include an Aframax tanker revenue sharing commercial management arrangement (the Aframax RSA), an LR2 tanker pool (the Taurus Pool), and a Suezmax tanker pool (the Gemini Pool). 9 of the Company’s Aframax tankers operated in the Aframax RSA, 3 of its LR2 tankers operated in the Taurus Pool, and 12 of its Suezmax tankers operated in the Gemini Pool. During 2013, approximately 7% of its net revenues were earned by the vessels in its spot tanker sub-segment. Fixed-Rate Tanker Sub-Segment: The vessels in the Company’s fixed-rate tanker sub-segment primarily consist of Aframax and Suezmax tankers that are employed onLong-term time-charters. During 2013, approximately 15% of its net revenues were earned by the vessels in the fixed-rate tanker sub-segment.
Belvedere Building, 69 Pitts Bay
HAMILTON HM 08