Profile: Teekay Corp (TK.N)
14 Mar 2014
Teekay Corporation (Teekay), incorporated on February 9, 1979, is a provider of international crude oil and gas marine transportation services and it also offer offshore oil production, storage and offloading services, under long-term, fixed-rate contracts. As of December 31, 2011, its fleet consisted of 151 vessels, including chartered-in vessels, and newbuildings/conversions on order. The Company is 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). On November 30, 2011, the Company acquired from Sevan Marine ASA (Sevan) the FPSO unit Sevan Hummingbird (or Hummingbird) and its existing customer contract. In March 2011, it sold its 49% interest in Teekay Offshore Operating L.P. (OPCO) to Teekay Offshore.
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 under long-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 Company’s shuttle tanker and FSO segment and its FPSO segment provides to customers are offloading and transportation of cargo from oil field installations to onshore terminals through dynamically positioned, offshore loading shuttle tankers; floating storage for oil field installations through FSO units, and floating production, processing and storage services through FPSO units. Its shuttle tankers are subject to long-term, fixed-rate time-charter contracts or bareboat charter contracts for a specific offshore oil field, where a vessel is hired for a fixed period of time, or under contracts of affreightment for various fields. As of December 31, 2011, the Company had ownership interests in 36 shuttle tankers (including four newbuildings) and chartered-in an additional four shuttle tankers.
The Company’s FSO units are placed on long-term, fixed-rate time-charters or bareboat charters as an integrated part of the field development plan. As of December 31, 2011, it had ownership interests in five FSO units. The markets for FSO units are Asia, the Middle East, the North Sea, South America and West Africa. 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, 2011, it had ownership interests in nine FPSO units (including one new-building under construction and one unit in conversion). During the year ended December 31, 2011, a total of approximately 55% of its net revenues were earned by the vessels in its shuttle tankers and FSO segment and FPSO segment.
Liquefied Gas Segment
LNG carriers are chartered to carry LNG pursuant to time-charter contracts with durations between 20 and 25 years, and with charter rates payable to the owner on a monthly basis. LNG carriers transport LNG internationally between liquefaction facilities and import terminals. LPG carriers are chartered to carry LPG on time charters of three to five years, on contracts of affreightment or spot voyage charters. LPG carriers range in size from approximately 250 to approximately 85,000 cubic meters. Its liquefied gas segment consists of LNG and LPG carriers subject to long-term, fixed-rate charter contracts. As of December 31, 2011, it had ownership interests in 20 LNG carriers, as well as an additional new-building LNG carrier on order which commenced operations upon delivery in January 2012 under a long-term fixed-rate time-charter in which its interest is 33%. As of December 31, 2011, it had ownership interests in five LPG carriers. During 2011, approximately 15% of its net revenues were earned by the vessels in its liquefied gas segment.
Conventional Tanker 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 less than one year in duration to be short-term. As of December 31, 2011, it participated in three main pooling arrangements. These include an Aframax tanker pool, an LR2 product tanker pool (or the Taurus Pool) and a Suezmax tanker pool (or the Gemini Pool). As of December 31, 2011, 13 of its Aframax tankers operated in the Aframax tanker pool, three of its LR2 tankers operated in the Taurus pool and nine of its Suezmax tankers operated in the Gemini Pool. As of December 31, 2011, its Aframax tanker fleet (excluding Aframax-size shuttle tankers and newbuildings) had an average age of approximately 10 years and its Suezmax tanker fleet (excluding Suezmax-size shuttle tankers and newbuildings) had an average age of approximately five years. During 2011, approximately 9% of its net revenues were earned by the vessels in its spot tanker sub-segment. The vessels in its fixed-rate tanker sub-segment consist of Aframax and Suezmax tankers that are employed on long-term time-charters. During 2011, approximately 21% of its net revenues were earned by the vessels in the fixed-rate tanker sub-segment.
The Company competes with BW Gas, Golar LNG, Kawasaki Kisen Kaisha, Malaysian International Shipping Corporation, Mitsui O.S.K., NYK Line and Qatar Gas Transport.
Belvedere Building, 69 Pitts Bay
HAMILTON BC HM 08