Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Date of report: February 20, 2003
TEEKAY SHIPPING CORPORATION
(Exact name of Registrant as specified in its charter)
TK House
Bayside Executive Park
West Bay Street & Blake Road
P.O. Box AP-59213, Nassau, Bahamas
(Address of principal executive office)
[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.]
Form 20-F X Form 40- F
[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.]
Yes No X
[If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- ]
Item 1 - Information Contained in this Form 6-K Report
| Attached as Exhibit I is a copy of an announcement of Teekay Shipping Corporation (the “Company”), dated February 19, 2003. |
THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT OF THE COMPANY ON FORM F-3 FILED WITH THE COMMISSION ON OCTOBER 4, 1995.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: February 20, 2003 |
TEEKAY SHIPPING CORPORATION
By: /s/ Peter S. Antturi Peter S. Antturi Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
EXHIBIT I
TEEKAY SHIPPING CORPORATION
TK House, Bayside Executive Park, West Bay Street & Blake Road
P.O. Box AP-59212,
Nassau, Bahamas
Nassau, The Bahamas – February 19, 2003 – Teekay Shipping Corporation today reported net income of $33.1 million, or $0.82 per share, for the quarter ended December 31, 2002, compared to net income of $31.2 million, or $0.78 per share, for the quarter ended December 31, 2001. Net voyage revenues for the quarter were $155.1 million, compared to $152.2 million recorded in the same period in 2001, while income from vessel operations increased to $48.6 million from $46.1 million.
Net income for the year ended December 31, 2002 was $53.4 million, or $1.33 per share, compared to $336.5 million, or $8.31 per share, for the year ended December 31, 2001. The results for the year ended December 31, 2001 included a $10.2 million, or $0.25 per share, gain on the sale of three 50%-owned vessels. There were no vessel sales during the year ended December 31, 2002. Net voyage revenues for the year ended December 31, 2002 were $543.9 million, compared to $789.5 million in the prior year, while income from vessel operations decreased to $119.3 million from $383.5 million.
The following key indicators serve to highlight changes in operating performance:
________________________________________________________________________________________________________________________
Three Months Three Months Three Months
Ended Ended Ended Years Ended
December 31, September 30, December 31 December 31,
_____________________
2002 2002 2001 2002 2001
________________________________________________________________________________________________________________________
International Tanker Fleet:
Revenue-generating ship-days 5,186 4,881 5,093 19,711 20,154
TCE per revenue-generating ship-day $20,562 $16,175 $21,203 $18,205 $30,542
TCE per calendar-ship-day $18,689 $13,772 $18,790 $15,951 $27,281
Vessel operating expense per calendar-ship-day $5,213 $5,616 $5,529 $5,496 $5,374
Operating cash flow per calendar-ship-day $10,659 $5,528 $11,029 $7,774 $19,747
Oil/Bulk/Ore (“OBO”) Fleet:
Revenue-generating ship-days 658 650 611 2,618 2,485
TCE per revenue-generating ship-day $14,704 $11,455 $11,041 $13,167 $16,856
TCE per calendar-ship-day $12,500 $9,565 $8,605 $11,215 $13,632
Vessel operating expense per calendar-ship-day $6,678 $6,221 $6,378 $6,359 $6,246
Operating cash flow per calendar-ship-day $2,196 $24 -$378 $1,554 $5,195
UNS Fleet:
Calendar-ship-days 1,148 1,104 1,104 4,424 3,470
Operating cash flow per calendar-ship-day $16,624 $13,544 $14,928 $14,902 $15,905
Australian Fleet:
Calendar-ship-days 460 460 460 1,825 1,716
Operating cash flow per calendar-ship-day $14,821 $14,656 $16,643 $15,081 $15,583
_________________________________________________________________________________________________________________________
The tanker market improved during the fourth quarter of 2002 due to an increase in tanker demand combined with continued tight tanker supply following the sinking of the tanker Prestige in November 2002. Global oil demand, an underlying driver of tanker demand, rose by 2.0 million barrels per day (mb/d) to 78.7 mb/d in the fourth quarter of 2002, compared to third quarter levels, primarily due to seasonal factors and the shutdown of nuclear power plants in Japan. Global oil production increased by 1.3 mb/d to 77.9 mb/d in the fourth quarter of 2002, compared to third quarter levels. The general strike in Venezuela disrupted oil exports and reduced Venezuela’s output from 3.4 mb/d in November 2002 to 0.9 mb/d in December 2002. This resulted in the replacement of short-haul crude supplies with long-haul supplies to meet the production shortfall, increasing tanker tonne-mile demand in the fourth quarter. The sinking of the Prestige, a 26-year-old vessel, contributed to increased charterer discrimination against older vessels, resulting in an increased demand for more modern vessels.
The International Energy Agency (“IEA”) reported annual global oil demand growth of 0.5% during 2002 and, as of February 12, 2003, was forecasting oil demand of 78.0 mb/d for 2003, a 1.5% increase over 2002.
The size of the world tanker fleet increased to 307.5 million deadweight tonnes (“mdwt”) as of December 31, 2002, up 1.1% from the end of the previous quarter. A total of 3.2 mdwt was sold for demolition in the fourth quarter, compared to 4.0 mdwt in the previous quarter, while deliveries of tanker newbuildings during the fourth quarter totalled 6.9 mdwt, up from 5.6 mdwt in the previous quarter. Overall for 2002, the world tanker fleet grew by 2.8 mdwt, or 0.9%, compared to the end of 2001.
As of December 31, 2002, the world tanker orderbook was 60.5 mdwt, representing 19.7% of the of the total world tanker fleet, compared to 60.4 mdwt, or 19.8%, at the end of the previous quarter and down from 63.1 mdwt, or 20.7%, as of December 31, 2001. The Aframax tanker orderbook as of December 31, 2002 remained unchanged from the previous quarter, consisting of 131 ships, or 20.4% of the world Aframax fleet, compared to 121 ships, or 19.2%, as of December 31, 2001.
As of December 31, 2002, the Teekay fleet (excluding vessels managed for third parties) consisted of 102 vessels, including five time-chartered-in Aframax tankers and twelve newbuilding tankers on order. On November 19, 2002, Teekay took delivery of an Aframax shuttle tanker newbuilding, which commenced a long-term charter for eight years. In addition, during the fourth quarter, Teekay entered into a long-term bareboat in-charter for an Aframax newbuilding expected to deliver in the fourth quarter of 2003.
The following is a summary of the Teekay fleet as of December 31, 2002:
_____________________________________________________________________________________________________________________
Type Number Dwt
_____________________________________________________________________________________________________________________
International Tanker Fleet:
100%-owned Aframaxes 53 5,298,700
Time-chartered-in Aframaxes 5 515,800
Newbuilding Aframaxes on order 7 789,000
Newbuilding Suezmaxes on order 3 456,000
Suezmax (1) 2 302,000
VLCC 1 280,700
OBO Fleet (2) 8 625,900
Australian Fleet 5 381,900
UNS Fleet:
Shuttle Tankers (3) 16 1,587,400
Newbuilding Shuttle Tankers on order 2 239,500
_____________________________________________________________________________________________________________________
Total: 102 10,476,900
_____________________________________________________________________________________________________________________
(1) Includes one 50%-owned Suezmax tanker.
(2) Includes one 67%-owned OBO carrier and one 52%-owned OBO carrier.
(3) Includes six shuttle tankers of which Teekay’s ownership interest ranges from 50% to 89%.
On December 16, 2002, Teekay and Statoil ASA announced a definitive agreement under which Teekay will acquire Statoil’s wholly-owned shipping company, Navion ASA, on a debt free basis, for approximately US $800 million in cash. As previously announced, this transaction is expected to close in the second quarter of 2003.
On February 18,2003, Teekay announced that it had completed the sale of its 7.25% Premium Equity Participating Security Units (PEPS Units) pursuant to its currently effective universal shelf registration statement. The sale consisted of 5,750,000 PEPS Units, including 750,000 PEPS Units issued in connection with the exercise by the underwriters' of their over-allotment option. Teekay received gross proceeds of $143.75 million from the sale. Proceeds from the offering may be used to finance potential acquisitions and for general corporate purposes, including capital expenditures, working capital, and the repayment of debt.
Teekay Shipping Corporation is a leading provider of international crude oil and petroleum product transportation services through the world’s largest fleet of medium-sized oil tankers. Headquartered in Nassau, Bahamas, with offices in 11 other countries, Teekay employs more than 4,100 seagoing and shore-based staff around the world. The Company’s fleet has earned a reputation for safety and excellence in providing transportation services to major oil companies, oil traders and government agencies worldwide.
Teekay's common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".
The Company plans to host a conference call at 11:00 a.m. EDT (8:00 a.m. PDT) on February 20, 2003, to discuss the results for the quarter. All shareholders and interested parties are invited to listen to the live conference call through www.teekay.com. A recording of the call will be available until February 27, 2003 by dialing (719) 457-0825, access code 463361, or via the Company’s Web site until March 20, 2003.
Three Months Three Months Three Months
Ended Ended Ended Years Ended
December 31, September 30, December 31, December 31,
2002 2002 2001 2002 2001
(unaudited) (unaudited) (unaudited)
NET VOYAGE REVENUES
Voyage revenues 222,835 184,927 213,146 783,327 1,039,056
Voyage expenses 67,691 62,166 60,925 239,455 249,562
------------------------------------ ------------------ ----------------- ----------------- ------------- -------------
Net voyage revenues 155,144 122,761 152,221 543,872 789,494
------------------------------------ ------------------ ----------------- ----------------- ------------- -------------
OPERATING EXPENSES
Vessel operating expenses 40,620 44,365 41,427 168,035 154,831
Time-charter hire expense 12,309 11,430 14,542 49,949 66,019
Depreciation and amortization 39,160 37,295 36,810 149,296 136,283
General and administrative 14,422 14,330 13,326 57,246 48,898
------------------------------------ ------------------ ----------------- ----------------- ------------- -------------
106,511 107,420 106,105 424,526 406,031
------------------------------------ ------------------ ----------------- ----------------- ------------- -------------
Income from vessel operations 48,633 15,341 46,116 119,346 383,463
------------------------------------ ------------------ ----------------- ----------------- ------------- -------------
OTHER ITEMS
Interest expense (14,120) (14,675) (15,305) (57,974) (66,249)
Interest income 803 898 1,329 3,494 9,196
Other (loss) income (2,210) (921) (943) (11,475) 10,108
------------------------------------ ------------------ ----------------- ----------------- ------------- -------------
(15,527) (14,698) (14,919) (65,955) (46,945)
------------------------------------ ------------------ ----------------- ----------------- ------------- -------------
Net income 33,106 643 31,197 53,391 336,518
------------------------------------ ------------------ ----------------- ----------------- ------------- -------------
Earnings per common share
- Basic $0.83 $0.02 $0.79 $1.35 $8.48
- Diluted $0.82 $0.02 $0.78 $1.33 $8.31
------------------------------------ ------------------ ----------------- ----------------- ------------- -------------
Weighted-average number of common
shares outstanding
- Basic 39,668,835 39,667,088 39,732,985 39,630,997 39,706,799
- Diluted 40,273,565 40,229,966 40,244,186 40,252,396 40,488,222
------------------------------------ ------------------ ----------------- ----------------- ------------- -------------
As at December 31, As at December 31,
2002 2001
ASSETS
Cash and cash equivalents 284,625 174,950
Other current assets 178,933 92,519
Marketable securities – long-term 13,630 16,026
Vessels and equipment 1,928,488 1,925,844
Advances on newbuilding contracts 138,169 117,254
Other assets 90,472 54,109
Goodwill 89,189 87,079
-------------------------------------------------------------------- ------------------------- -----------------------
Total Assets 2,723,506 2,467,781
-------------------------------------------------------------------- ------------------------- -----------------------
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities 105,950 75,495
Current portion of long-term debt 83,605 51,830
Long-term debt 1,047,217 883,872
Other long-term liabilities 44,512 39,407
Minority interest 20,324 18,977
Stockholders’ equity 1,421,898 1,398,200
-------------------------------------------------------------------- ------------------------- -----------------------
Total Liabilities and Stockholders’ Equity 2,723,506 2,467,781
-------------------------------------------------------------------- ------------------------- -----------------------
Years Ended
December 31,
2002 2001
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
-------------------------------------------------------------------- ------------------------- ----------------------
Net cash flow from operating activities 214,444 520,150
-------------------------------------------------------------------- ------------------------- ----------------------
FINANCING ACTIVITIES
Net proceeds from long-term debt 255,185 688,381
Scheduled repayments of long-term debt (51,830) (72,026)
Prepayments of long-term debt (8,000) (751,738)
Other (32,351) (35,505)
-------------------------------------------------------------------- ------------------------- ----------------------
Net cash flow from financing activities 163,004 (170,888)
-------------------------------------------------------------------- ------------------------- ----------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (135,650) (184,983)
Expenditures for drydocking (34,913) (20,064)
Deposit for the purchase of Navion ASA (76,000) -
Expenditure for the purchase of Ugland Nordic Shipping AS - (176,453)
Investment in joint venture (26,000) -
Other 4,790 25,888
-------------------------------------------------------------------- ------------------------- ----------------------
Net cash flow from investing activities (267,773) (355,612)
-------------------------------------------------------------------- ------------------------- ----------------------
Increase (decrease) in cash and cash equivalents 109,675 (6,350)
Cash and cash equivalents, beginning of the period 174,950 181,300
-------------------------------------------------------------------- ------------------------- ----------------------
Cash and cash equivalents, end of the period 284,625 174,950
-------------------------------------------------------------------- ------------------------- ----------------------
Three Months Ended December 31, 2002
(unaudited)
International OBO UNS Australian Total
Tanker Fleet Fleet* Fleet Fleet Fleet
--------------------------------------- --------------- ------------- --------------- --------------- ---------------
Net voyage revenues 103,087 13,642 26,366 12,049 155,144
Vessel operating expenses 26,367 4,915 5,229 4,109 40,620
Time-charter hire expense 7,867 4,442 - - 12,309
Depreciation and amortization 25,664 2,187 8,694 2,615 39,160
--------------------------------------- --------------- ------------- --------------- --------------- ---------------
Three Months Ended September 30, 2002
(unaudited)
International OBO UNS Australian Total
Tanker Fleet Fleet* Fleet Fleet Fleet
--------------------------------------- --------------- ------------- --------------- --------------- ---------------
Net voyage revenues 76,064 10,627 24,388 11,682 122,761
Vessel operating expenses 28,435 4,579 7,469 3,882 44,365
Time-charter hire expense 7,843 3,587 - - 11,430
Depreciation and amortization 24,467 1,987 8,279 2,562 37,295
--------------------------------------- --------------- ------------- --------------- --------------- ---------------
Three Months Ended December 31, 2001
(unaudited)
International OBO UNS Australian Total
Tanker Fleet Fleet* Fleet Fleet Fleet
--------------------------------------- --------------- ------------- --------------- --------------- ---------------
Net voyage revenues 104,396 10,829 24,712 12,284 152,221
Vessel operating expenses 27,475 4,694 5,568 3,690 41,427
Time-charter hire expense 10,046 4,496 - - 14,542
Depreciation and amortization 23,515 1,642 9,504 2,149 36,810
--------------------------------------- --------------- ------------- --------------- --------------- ---------------
Year Ended December 31, 2002
International OBO UNS Australian Total
Tanker Fleet Fleet* Fleet Fleet Fleet
--------------------------------------- --------------- ------------- --------------- --------------- ---------------
Net voyage revenues 346,900 51,005 98,377 47,590 543,872
Vessel operating expenses 109,386 18,567 24,310 15,772 168,035
Time-charter hire expense 31,693 18,256 - - 49,949
Depreciation and amortization 97,640 7,767 33,618 10,271 149,296
--------------------------------------- --------------- ------------- --------------- --------------- ---------------
Year Ended December 31, 2001
International OBO UNS Australian Total
Tanker Fleet Fleet* Fleet** Fleet Fleet
--------------------------------------- --------------- ------------- --------------- --------------- ---------------
Net voyage revenues 598,538 67,395 80,053 43,508 789,494
Vessel operating expenses 105,519 18,239 17,815 13,258 154,831
Time-charter hire expense 38,430 27,589 - - 66,019
Depreciation and amortization 92,737 5,384 30,161 8,001 136,283
--------------------------------------- --------------- ------------- --------------- --------------- ---------------
* Time-charter hire expense for the OBO Fleet represents the minority pool participants’ share of the OBO
pool’s net voyage revenues.
** Represents results for the period from March 6, 2001 to December 31, 2001.
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 charter rates, the balance of supply and demand in the crude tanker market, and the expected closing of Teekay’s acquisition of Navion ASA. 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 and petroleum products, 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 impacting overall tanker tonnage requirements; changes in applicable industry regulations; changes in the typical seasonal variations in tanker charter rates; the potential inability to close the Navion transaction; and other factors discussed in Teekay’s Report on Form 20-F for the fiscal year ended December 31, 2001 and subsequent SEC filings, including the Rule 424(B) prospectus supplement filed with the SEC on February 14, 2003.