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Teekay Corporation Reports Fourth Quarter and Annual 2015 Results

Highlights

- Generated consolidated cash flow from vessel operations of $401.4 million and $1.4 billion in the fourth quarter and fiscal year 2015, respectively, increases of 30 percent and 35 percent from the same periods of the prior year.

- Generated adjusted net income attributable to shareholders of $29.8 million, or $0.41 per share, and $68.1 million, or $0.94 per share, in the fourth quarter and fiscal year 2015, respectively, compared to $30.7 million, or $0.42 per share, and $1.5 million, or $0.02 per share, in the same periods of the prior year.

- Declared fourth quarter 2015 cash dividend of $0.055 per share.


/EINPresswire.com/ -- HAMILTON, BERMUDA -- (Marketwired) -- 02/18/16 -- Teekay Corporation (Teekay or the Company) (NYSE: TK) today reported financial and operating results for the fourth quarter and fiscal year 2015. These results include the Company's three publicly-listed subsidiaries (Teekay Offshore Partners L.P. (Teekay Offshore) (NYSE: TOO), Teekay LNG Partners L.P. (Teekay LNG) (NYSE: TGP), and Teekay Tankers Ltd. (Teekay Tankers) (NYSE: TNK)) (collectively, the Daughter Entities), all of which are consolidated in the Company's financial statements, and all remaining subsidiaries of the Company are referred to in this release as Teekay Parent. Please refer to the fourth quarter and fiscal year 2015 earnings releases of Teekay LNG, Teekay Offshore and Teekay Tankers, which are available on the Company's website at www.teekay.com, for additional information on their respective results.

Summary Financial Information

                    
                    ----------------------------------------------------------------------------
                                                   Three Months Ended           Year Ended
                    (in thousands of U.S.
                     dollars, except per      December September  December   December  December
                     share amounts)           31, 2015  30, 2015  31, 2014   31, 2015  31, 2014
                    ----------------------------------------------------------------------------
                    
                    TEEKAY CORPORATION
                     CONSOLIDATED
                    
                    Revenues                   700,106   611,617   544,989  2,450,382 1,993,920
                    Cash Flow from Vessel
                     Operations (CFVO) (1)     401,396   341,342   308,228  1,415,794 1,049,202
                    Adjusted Net Income (1)     29,808     2,833    30,670     68,077     1,473
                    Adjusted Net Income per
                     share (1)                    0.41      0.04      0.42       0.94      0.02
                    GAAP Net Income (Loss)      38,238   (12,235)  (13,656)    82,151   (54,757)
                    GAAP Net Income (Loss)
                     per share                    0.53     (0.17)    (0.19)      1.13     (0.76)
                    
                    TEEKAY PARENT
                    
                    Teekay Parent GPCO Cash
                     Flow (1)                    8,871    53,797    41,491    142,197   159,153
                    Teekay Parent OPCO Cash
                     Flow (1)                       58     6,029     3,530      7,544   (73,148)
                    Total Teekay Parent Free
                     Cash Flow (1)               8,929    59,826    45,021    149,741    86,005
                    Total Teekay Parent Free
                     Cash Flow per share (1)      0.12      0.82      0.62       2.05      1.20
                    Declared Dividend per
                     share                       0.055      0.55   0.31625      1.471     1.265
                    
                    (1)  These are non-GAAP measures. Please refer to "Definitions and Non-GAAP
                         Measures" on Page 6 and the Appendices to this release for definitions
                         of these terms and reconciliations of these non-GAAP financial measures
                         as used in this release to the most directly comparable financial
                         measures under United States generally accepted accounting principles
                         (GAAP). Please refer to Page 8 for a summary of Teekay Parent Free Cash
                         Flow.
                    
                    

CEO Commentary

"Despite the challenging macro energy environment affecting our customers, the Teekay Group generated strong cash flow growth during the fourth quarter and fiscal year of 2015 and recorded the highest fiscal year adjusted earnings since 2008, highlighting our diversified business model and our integral role in our customers' oil and gas production logistics chains," commented Peter Evensen, Teekay Corporation's President and Chief Executive Officer. "The strong cash flow growth and earnings were driven mainly by the delivery and acquisition of various growth projects during 2015, including our largest FPSO project to date, the Knarr FPSO, tanker fleet growth and the highest spot tanker rates in seven years."

Mr. Evensen added "Teekay Offshore and Teekay LNG continue to operate with high fleet utilization, generating stable cash flows supported by large portfolios of fee-based contracts with high quality counterparties, while Teekay Tankers recorded one of its strongest years ever and implemented a new variable dividend policy."

"The decision in December to temporarily reduce Teekay Corporation's dividend was a direct result of temporary cash distribution reductions by our two MLPs, Teekay Offshore and Teekay LNG. It was a difficult decision and was caused by the inability of both MLPs to access competitively priced capital in the current negative capital market environment and was not caused by a shortfall in the cash flows of our operating businesses," Mr. Evensen continued. "We believe the reductions are in the best interests of long-term investors as the reallocation of a significant portion of our internally generated cash flows will be used to fund our profitable growth projects scheduled to deliver over the next several years and which we expect will result in higher available distributable cash flow per unitholder at each MLP."

"Looking ahead to 2016, despite the anticipated redelivery of Teekay Offshore's Varg FPSO after operating on the Varg field for almost 18 years, the Teekay Group's operating cash flows are expected to remain relatively strong supported by high fleet utilization, the delivery of various growth projects in 2016 and the continued strength in the conventional tanker market. In addition, we are focusing on project execution, operational efficiencies and securing required financings for our two MLPs."

Business Outlook for 2016 and 2017

The Company plans to host a conference call on Thursday, February 18, at 2:00 p.m. (ET) to discuss the results contained in this news release as well as its business outlook, which includes additional forecasted cash flows for the Company's two master limited partnerships for 2016 and 2017. A copy of the Fourth Quarter 2015 Earnings and Business Outlook Presentation, which will be discussed during this conference call, is available at http://media3.marketwire.com/docs/1043446p.pdf.

Summary of Results

Teekay Corporation Consolidated

The Company's consolidated cash flow from vessel operations (CFVO) increased to $401.4 million for the quarter ended December 31, 2015, compared to $308.2 million for the same period of the prior year, primarily due to higher cash flows from Teekay Offshore related to the charter contract commencements for the Petrojarl Knarr (Knarr) FPSO unit and the Arendal Spirit Unit for Maintenance and Safety (UMS), the acquisition of six long-distance towing and offshore installation vessels in 2015 and a production bonus recorded in the fourth quarter of 2015 relating to the Voyageur Spirit FPSO unit. In addition, cash flows from Teekay Tankers increased as a result of its acquisition of 17 modern conventional tankers in 2015, the expansion of its chartered-in tanker portfolio in 2014 and 2015, and higher spot tanker rates.

The Company's consolidated adjusted net income attributable to shareholders decreased slightly to $29.8 million, or $0.41 per share, during the quarter ended December 31, 2015, compared to $30.7 million, or $0.42 per share, for the same period of the prior year.

On a GAAP basis, the Company's consolidated net income was $38.2 million, or $0.53 per share, for the quarter ended December 31, 2015, compared to net loss of $13.7 million, or $0.19 per share, for the same period of the prior year.

Teekay Parent

Teekay Parent GPCO Cash Flow, which includes distributions and dividends received by Teekay Parent from Teekay's publicly-listed subsidiaries in the following quarter less Teekay Parent's corporate general and administrative expenses was $8.9 million for the quarter ended December 31, 2015, compared to $41.5 million for the same period of the prior year. The distributions and dividends received from Teekay's publicly-listed subsidiaries for the quarter ended December 31, 2015 decreased to $13.0 million, compared to $45.3 million for the same period of the prior year, primarily due to the reductions in quarterly general partner and limited partner cash distributions received from Teekay Offshore and Teekay LNG as a result of the temporary reduction in cash distributions on Teekay Offshore's and Teekay LNG's common units, partially offset by an increase in cash dividends received from Teekay Tankers as a result of the implementation of its new variable dividend policy whereby Teekay Tankers intends to pay out 30 to 50 percent of its quarterly adjusted net income. For the fourth quarter of 2015, Teekay Tankers declared and paid a dividend of $0.12 per share, an increase of 300 percent from the previous quarter.

Teekay Parent OPCO Cash Flow, which includes cash flow attributable to assets directly-owned by, or chartered-in to, Teekay Parent, net of interest expense and drydock expenditures, decreased to approximately breakeven for the quarter ended December 31, 2015, from $3.5 million for the same period of the prior year. The decrease is primarily due to the timing of drydocking expenditures for the Shoshone Spirit Very Large Crude Carrier (VLCC) and two chartered-in shuttle tankers, the Petronordic and Petroatlantic, and lower annual incentive-based revenues recognized as a result of lower oil prices relating to the Hummingbird Spirit and Foinaven floating production, storage and offloading (FPSO) units, partially offset by lower operating costs as a result of the sale of the Petrojarl I FPSO unit to Teekay Offshore in December 2014.

Total Teekay Parent Free Cash Flow, which is the total of GPCO and OPCO cash flows, was $8.9 million during the fourth quarter of 2015, compared to $45.0 million for the same period of the prior year. Please refer to Page 8 of this release for additional information about Teekay Parent Free Cash Flow.

On January 20, 2016, the Company declared a cash dividend on its common stock of $0.055 per share for the quarter ended December 31, 2015. The cash dividend is payable on February 18, 2016 to all shareholders of record on February 5, 2016.

Summary Results of Daughter Entities

Teekay Offshore Partners

Teekay Offshore's distributable cash flow(1) increased during the quarter ended December 31, 2015 compared to the same period of the prior year, primarily due to the acquisition of the Knarr FPSO unit in July 2015, the acquisition of six long-distance towing and offshore installation vessels during the first seven months of 2015, the commencement of the Arendal Spirit UMS charter contract in early-June 2015 and the Voyageur Spirit FPSO unit's production bonus recorded in the fourth quarter of 2015. These increases were partially offset by the expiration of two shuttle tanker contracts in the second quarter of 2015 and the sale of two conventional tankers in the fourth quarter of 2015. Please refer to Teekay Offshore's fourth quarter and fiscal year 2015 earnings release for additional information on the financial results for this entity.

Teekay LNG Partners

Teekay LNG's distributable cash flow(1) decreased during the quarter ended December 31, 2015 compared to the same period of the prior year, primarily due to the termination of the charter contract for Teekay LNG's 52 percent-owned Magellan Spirit liquefied natural gas (LNG) carrier in March 2015 (which termination Teekay LNG's joint venture with Marubeni Corporation is currently disputing), the scheduled expiration of the charter contract for Teekay LNG's 52 percent-owned Methane Spirit LNG carrier in March 2015, and lower capitalized distributions relating to equity financing of newbuildings as a result of the temporary reduction in cash distributions on its common units. These decreases were partially offset by the lower interest expense resulting from the December 2014 termination of capital leases for, and the subsequent refinancing of, three 70 percent-owned LNG carriers (the RasGas II LNG Carriers), higher cash flows from Teekay LNG's Exmar LPG BVBA joint venture and higher revenue from the Teide Spirit Suezmax tanker. Please refer to Teekay LNG's fourth quarter and fiscal year 2015 earnings release for additional information on the financial results for this entity.

Teekay Tankers

Teekay Tankers' free cash flow(2) increased during the quarter ended December 31, 2015 compared to the same period of the prior year, primarily due to higher average spot tanker rates earned and an increase in fleet size related to the acquisition of 17 modern conventional tankers in 2015 and expansion of its chartered-in tanker portfolio in 2014 and 2015. Please refer to Teekay Tankers' fourth quarter and fiscal year 2015 earnings release for additional information on the financial results for this entity.

                    
                    (1)  Distributable cash flow is a non-GAAP financial measure used by certain
                         investors to measure the financial performance of Teekay Offshore,
                         Teekay LNG and other master limited partnerships. Please see Appendix B
                         to each of Teekay Offshore's and Teekay LNG's fourth quarter and fiscal
                         year 2015 earnings releases for reconciliations of Teekay Offshore's
                         and Teekay LNG's distributable cash flows to the most directly
                         comparable financial measures under GAAP.
                    
                    (2)  Free cash flow (FCF) represents net income, plus depreciation and
                         amortization, unrealized losses from derivatives, non-cash items, FCF
                         from the equity accounted investments and any write-offs or other non-
                         recurring items, less unrealized gains from derivatives, equity income
                         from the equity accounted investments, net income attributable to the
                         Entities under Common Control and other non-cash items. Please see
                         Appendix B to Teekay Tankers' fourth quarter and fiscal year 2015
                         earnings release for a reconciliation of free cash flow (a non-GAAP
                         measure) to the most directly comparable financial measure under GAAP.
                    
                    

Recent Transactions

Teekay Parent

During the fourth quarter of 2015, Teekay Parent secured a 12 month charter-out contract for the Shoshone Spirit VLCC at $49,000 per day, which expires in December 2016.

Teekay Offshore

Teekay Offshore completed the sale of two conventional tankers and has entered into an agreement to sell its remaining two conventional tankers for aggregate sales proceeds of approximately $130 million. The first two conventional tankers, the SPT Explorer and Navigator Spirit, were sold to Teekay Tankers in mid-December 2015 and the two remaining conventional tankers, the Kilimanjaro Spirit and Fuji Spirit, are expected to be delivered to a third party in March 2016. After repaying existing debt secured by these assets and the novation of an existing $50 million revolving credit facility to Teekay Tankers, these transactions are expected to add approximately $60 million to Teekay Offshore's liquidity position.

In November 2015, Teekay Offshore received a termination notice for the Petrojarl Varg (Varg) FPSO charter contract from the charterer Repsol S.A. (Repsol), formerly Talisman Energy, based on a termination right that is specific to the Varg FPSO contract. Following discussions with the charterer, Teekay Offshore currently expects the Varg FPSO to be redelivered to Teekay Offshore in August 2016. Teekay Offshore is currently pursuing various redeployment opportunities for the Varg FPSO, a unit which meets the strict Norwegian petroleum industry (NORSOK) standards.

Teekay LNG

In December 2015, a joint venture consisting of Teekay LNG, Samsung C&T (Samsung) and Gulf Investment Corporation (GIC) finalized a 20-year contract with the Government of the Kingdom of Bahrain to develop an LNG receiving and regasification terminal in Bahrain for start-up in mid-2018. The project will include a floating storage unit (FSU), an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility and an onshore nitrogen production facility. The project is expected to have a capacity of 800 million standard cubic feet per day and will be owned and operated through a new joint venture owned by National Oil & Gas Authority (30%), Teekay LNG (30%), Samsung (20%) and GIC (20%). Teekay LNG will provide the project with the FSU, modifying one of its previously unchartered MEGI LNG carrier newbuildings, under a 20-year charter contract to the joint venture. The project, not including the FSU to be time chartered from Teekay LNG, project management and development, financing and other costs, is expected to cost the joint venture approximately $655 million, which is expected to be funded through a combination of equity capital and project finance through a consortium of regional and international banks.

During the fourth quarter of 2015, Teekay LNG's first MEGI LNG carrier newbuilding completed sea trials with the second vessel scheduled to commence sea trials late in the first quarter of 2016. These vessels will commence their respective five-year fee-based charter contracts with Cheniere Energy in March and the third quarter of 2016, respectively, and are expected to earn total annual cash flow from vessel operations and distributable cash flow of $50 million and $30 million. In early-February 2016, Teekay LNG secured a 10-year, $360 million long-term lease facility to finance these two LNG carriers.

Teekay LNG owns two 52 percent-owned LNG carriers, the Marib Spirit and Arwa Spirit, through its joint venture with Marubeni Corporation that are currently on long-term charters expiring in 2029 to the Yemen LNG project (YLNG), a consortium led by Total SA. Due to the political situation in Yemen, YLNG decided to temporarily close the LNG plant in 2015. As a result of a possible extended plant closing, Teekay LNG's joint venture agreed to a temporary deferral of a significant portion of the charter payments for the two LNG carriers during 2016. Upon future resumption of the LNG plant in Yemen, it is expected that YLNG will repay the deferred amounts in full over a period of time to be agreed upon.

In February 2016, Teekay LNG's Exmar LPG joint venture took delivery of the sixth of its 12 LPG carrier newbuildings, which will commence a five-year charter with Statoil ASA.

Teekay Tankers

During the fourth quarter of 2015, Teekay Tankers built on its recent ship-to-ship transfer acquisition of SPT Inc. and expanded its U.S. Gulf presence through the acquisition and chartering-in of three purpose-built Lightering Aframax tankers. On December 18, 2015, Teekay Tankers acquired two Lightering Aframax tankers, the SPT Explorer and Navigator Spirit, from Teekay Offshore for an aggregate purchase price of $80 million and chartered-in the third Lightering Aframax tanker for a firm contract period of five years, which is scheduled to deliver between February and March 2016.

In January 2016, Teekay Tankers completed a new five-year $900 million long-term debt facility, which was 1.4 times oversubscribed. The new facility includes term loan and revolving credit facility components which were used to refinance 36 of Teekay Tankers' existing vessels, including 17 vessels acquired during 2015 that were secured by Teekay Tankers' two bridge loan facilities that matured in early-2016, and Teekay Tankers' main corporate revolving credit facility which would have otherwise expired in 2017. This new facility extends Teekay Tankers' debt maturity profile and provides financial flexibility in the future.

Liquidity

As at December 31, 2015, Teekay Parent had total liquidity of $234.5 million (consisting of $221.0 million of cash and cash equivalents and $13.5 million of undrawn revolving credit facilities) and, on a consolidated basis, Teekay Corporation had total liquidity of approximately $860.7 million (consisting of $678.4 million of cash and cash equivalents and $182.3 million of undrawn revolving credit facilities).

Definitions and Non-GAAP Measures

This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the U.S. Securities and Exchange Commission. These non-GAAP financial measures, which include Cash Flow From Vessel Operations, Adjusted Net Income Attributable to Shareholders, Teekay Parent Free Cash Flow, and Net Interest Expense, are intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP. In addition, these measures do not have standardized meanings, and may not be comparable to similar measures presented by other companies. The Company believes that certain investors use this information to evaluate the Company's financial performance.

Teekay Parent Financial Measures

Teekay Parent Free Cash Flow represents the sum of (a) distributions received as a result of ownership interests in its publicly-traded subsidiaries (Teekay LNG, Teekay Offshore, and Teekay Tankers) net of Teekay Parent's corporate general and administrative expenditures in the respective period (collectively, Teekay Parent GPCO Cash Flow) plus (b) CFVO attributed to Teekay Parent's directly-owned and chartered-in assets, less Teekay Parent's net interest expense and drydock expenditures in the respective period (collectively, Teekay Parent OPCO Cash Flow). Net interest expense includes interest expense, interest income and realized gains and losses on interest rate swaps. Please refer to Page 8 and Appendices B, C and D of this release for further details and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures reflected in the Company's consolidated financial statements.

Consolidated Financial Measures

Cash flow from vessel operations (CFVO) represents income from vessel operations before depreciation and amortization expense, amortization of in-process revenue contracts, vessel write-downs, gains or losses on the sale of vessels and adjustments for direct financing leases to a cash basis, but includes realized gains or losses on the settlement of foreign currency forward contracts and a derivative charter contract. CFVO - Consolidated represents CFVO from vessels that are consolidated on the Company's financial statements. CFVO - Equity Investments represents the Company's proportionate share of CFVO from its equity-accounted vessels and other investments. CFVO is a non-GAAP financial measure used by certain investors to measure the financial performance of companies. Please refer to Appendices C and D of this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures reflected in the Company's consolidated financial statements.

Adjusted net income attributable to shareholders excludes from net income items of income or loss that are typically excluded by securities analysts in their published estimates of the Company's financial results. The Company believes that certain investors use this information to evaluate the Company's financial performance. Please refer to Appendix A of this release for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure reflected in the Company's consolidated financial statements.

Conference Call

The Company plans to host a conference call on Thursday, February 18, 2016 at 2:00 p.m. (ET) to discuss its results for the fourth quarter and fiscal year 2015 as well as its business outlook. An accompanying investor presentation will be available on Teekay's website at www.teekay.com prior to the start of the call. All shareholders and interested parties are invited to listen to the live conference call by choosing from the following options:

                    
                    --  By dialing (800) 499-4035 or (416) 204-9269, if outside North America,
                        and quoting conference ID code 6610943.
                    --  By accessing the webcast, which will be available on Teekay's website at
                        www.teekay.com (the archive will remain on the website for a period of
                        30 days).
                    
                    

The conference call will be recorded and available until Thursday, March 3, 2016. This recording can be accessed following the live call by dialing (888) 203-1112 or (647) 436-0148, if outside North America, and entering access code 6610943.

About Teekay

Teekay Corporation operates in the marine midstream space through its ownership of the general partners and a portion of the outstanding limited partner interests in Teekay LNG Partners L.P. (NYSE: TGP) and Teekay Offshore Partners L.P. (NYSE: TOO). The general partners own all of the outstanding incentive distribution rights of these entities. In addition, Teekay has a controlling ownership interest in Teekay Tankers Ltd. (NYSE: TNK) and directly owns a fleet of vessels. The combined Teekay entities manage and operate consolidated assets of over $13 billion, comprised of approximately 220 liquefied gas, offshore, and conventional tanker assets. With offices in 15 countries and approximately 7,700 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies.

Teekay's common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".

                    
                    Teekay Parent Free Cash Flow
                    (in thousands of U.S. dollars, except share and per share data)
                    (unaudited)
                    
                    ----------------------------------------------------------------------------
                                                               Three Months Ended
                                                   December   September        June       March
                                                   31, 2015    30, 2015    30, 2015    31, 2015
                    ----------------------------------------------------------------------------
                    TEEKAY PARENT GPCO CASH FLOW
                    Daughter Entities
                     distributions to Teekay
                     Parent (1)
                      Limited Partner interests
                       (2)
                        Teekay LNG                    3,529      17,646      17,646      17,646
                        Teekay Offshore               4,203      21,399      12,819      12,819
                      GP interests
                        Teekay LNG                      227       8,761       8,684       8,653
                        Teekay Offshore                 240       8,407       5,264       5,264
                      Other Dividends
                        Teekay Tankers (2)(3)         4,846       1,212         881         881
                    ----------------------------------------------------------------------------
                    Total Daughter Entity
                     Distributions                   13,045      57,425      45,294      45,263
                    Less:
                      Corporate general and
                       administrative expenses       (4,174)     (3,628)     (4,139)     (6,889)
                    ----------------------------------------------------------------------------
                    Total Parent GPCO Cash Flow       8,871      53,797      41,155      38,374
                    ----------------------------------------------------------------------------
                    
                    TEEKAY PARENT OPCO CASH FLOW
                    Teekay Parent cash flow from
                     vessel operations (4)
                      Owned Conventional Tankers      2,418       2,422       4,628       4,291
                      In-Chartered Conventional
                       Tankers                         (561)     (1,385)     (1,501)     (2,476)
                      FPSOs                          15,373      (4,071)     31,698       7,487
                      Other (5)(6)                    3,605      22,765       2,326       1,381
                    ----------------------------------------------------------------------------
                    Total (7)                        20,835      19,731      37,151      10,683
                    Less:
                      Net interest expense (8)      (15,708)    (13,656)    (28,635)    (17,534)
                      Dry docking expenditures       (5,069)        (46)       (208)          -
                    ----------------------------------------------------------------------------
                    Teekay Parent OPCO Cash Flow         58       6,029       8,308      (6,851)
                    ----------------------------------------------------------------------------
                    
                    TOTAL TEEKAY PARENT FREE
                     CASH FLOW                        8,929      59,826      49,463      31,523
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    Total Teekay Parent Free
                     Cash Flow per share               0.12        0.82        0.68        0.43
                    ----------------------------------------------------------------------------
                    
                    Declared dividend per share       0.055        0.55        0.55     0.31625
                    ----------------------------------------------------------------------------
                    
                    Coverage Ratio (9)                2.18x       1.49x       1.24x       1.36x
                    ----------------------------------------------------------------------------
                    
                    Weighted-average number of
                     common shares - Basic       72,708,463  72,706,285  72,697,121  72,549,068
                    ----------------------------------------------------------------------------
                    
                    
                    ----------------------------------------------------------------------------
                                                               Three Months Ended
                                                   December   September        June       March
                                                   31, 2014    30, 2014    30, 2014    31, 2014
                    ----------------------------------------------------------------------------
                    TEEKAY PARENT GPCO CASH FLOW
                    Daughter Entities
                     distributions to Teekay
                     Parent (1)
                      Limited Partner interests
                       (2)
                        Teekay LNG                   17,646      17,439      17,439      17,439
                        Teekay Offshore              12,819      12,819      12,819      12,819
                      GP interests
                        Teekay LNG                    8,650       7,883       7,883       7,568
                        Teekay Offshore               5,262       4,880       4,880       4,868
                      Other Dividends
                        Teekay Tankers (2)(3)           881         756         629         629
                    ----------------------------------------------------------------------------
                    Total Daughter Entity
                     Distributions                   45,258      43,777      43,650      43,323
                    Less:
                      Corporate general and
                       administrative expenses       (3,767)     (4,068)     (3,362)     (5,658)
                    ----------------------------------------------------------------------------
                    Total Parent GPCO Cash Flow      41,491      39,709      40,288      37,665
                    ----------------------------------------------------------------------------
                    
                    TEEKAY PARENT OPCO CASH FLOW
                    Teekay Parent cash flow from
                     vessel operations (4)
                      Owned Conventional Tankers      1,549         277         855       4,490
                      In-Chartered Conventional
                       Tankers                       (5,067)     (4,441)     (4,818)     (2,819)
                      FPSOs                          18,077     (10,027)    (25,700)    (13,906)
                      Other (5)(6)                    7,679       5,021       9,748      12,408
                    ----------------------------------------------------------------------------
                    Total (7)                        22,238      (9,170)    (19,915)        173
                    Less:
                      Net interest expense (8)      (15,056)    (13,000)    (15,015)    (16,151)
                      Dry docking expenditures       (3,652)     (2,673)       (378)       (549)
                    ----------------------------------------------------------------------------
                    Teekay Parent OPCO Cash Flow      3,530     (24,843)    (35,308)    (16,527)
                    ----------------------------------------------------------------------------
                    
                    TOTAL TEEKAY PARENT FREE
                     CASH FLOW                       45,021      14,866       4,980      21,138
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    Total Teekay Parent Free
                     Cash Flow per share               0.62        0.21        0.07        0.30
                    ----------------------------------------------------------------------------
                    
                    Declared dividend per share     0.31625     0.31625     0.31625     0.31625
                    ----------------------------------------------------------------------------
                    
                    Coverage Ratio (9)                1.96x       0.66x       0.22x       0.95x
                    ----------------------------------------------------------------------------
                    
                    Weighted-average number of
                     common shares - Basic       72,498,974  72,393,072  72,036,526  71,328,577
                    ----------------------------------------------------------------------------
                    
                    (1)  Daughter dividends and distributions for each quarter consist of the
                         amount of dividends and distributions received by Teekay Parent in the
                         following quarter.
                    (2)  Common share/unit dividend/distribution cash flows to Teekay Parent are
                         based on Teekay Parent's ownership on the ex-dividend date for the
                         respective publicly-traded subsidiary and period as follows:
                    
                    
                                                             Three Months Ended
                                                 December    September         June        March
                                                 31, 2015     30, 2015     30, 2015     31, 2015
                    Teekay LNG Partners
                    Distribution per common
                     unit                     $    0.1400  $    0.7000  $    0.7000  $    0.7000
                    Common units owned by
                     Teekay Parent             25,208,274   25,208,274   25,208,274   25,208,274
                    ----------------------------------------------------------------------------
                    Total distribution        $ 3,529,158  $17,645,792  $17,645,792  $17,645,792
                    
                    Teekay Offshore Partners
                    Distribution per common
                     unit                     $    0.1100  $    0.5600  $    0.5384  $    0.5384
                    Common units owned by
                     Teekay Parent             38,211,772   38,211,772   23,809,468   23,809,468
                    ----------------------------------------------------------------------------
                    Total distribution        $ 4,203,295  $21,398,592  $12,819,018  $12,819,018
                    
                    Teekay Tankers Ltd.
                    Dividend per share        $      0.12  $      0.03  $      0.03  $      0.03
                    Shares owned by Teekay
                     Parent (3)                40,387,231   40,387,231   29,364,141   29,364,141
                    ----------------------------------------------------------------------------
                    Total dividend            $ 4,846,468  $ 1,211,617  $   880,924  $   880,924
                    
                                                             Three Months Ended
                                                 December    September         June        March
                                                 31, 2014     30, 2014     30, 2014     31, 2014
                    Teekay LNG Partners
                    Distribution per common
                     unit                     $    0.7000  $    0.6918  $    0.6918  $    0.6918
                    Common units owned by
                     Teekay Parent             25,208,274   25,208,274   25,208,274   25,208,274
                    ----------------------------------------------------------------------------
                    Total distribution        $17,645,792  $17,439,084  $17,439,084  $17,439,084
                    
                    Teekay Offshore Partners
                    Distribution per common
                     unit                     $    0.5384  $    0.5384  $    0.5384  $    0.5384
                    Common units owned by
                     Teekay Parent             23,809,468   23,809,468   23,809,468   23,809,468
                    ----------------------------------------------------------------------------
                    Total distribution        $12,819,018  $12,819,018  $12,819,018  $12,819,018
                    
                    Teekay Tankers Ltd.
                    Dividend per share        $      0.03  $      0.03  $      0.03  $      0.03
                    Shares owned by Teekay
                     Parent (3)                29,364,141   25,197,475   20,976,530   20,976,530
                    ----------------------------------------------------------------------------
                    Total dividend            $   880,924  $   755,924  $   629,296  $   629,296
                    
                    (3)  Includes Class A and Class B shareholdings.
                    (4)  Please refer to Appendix C for additional financial information on
                         Teekay Parent's cash flow from vessel operations.
                    (5)  Includes $1.6 million, $0.7 million, $1.0 million, $0.5 million and
                         $0.8 million for the three months ended December 31, 2015, September
                         30, 2015, June 30, 2015, December 31, 2014 and September 30, 2014,
                         respectively, relating to 50 percent of the CFVO from Teekay Parent's
                         conventional tanker commercial management and technical management
                         operations (Tanker Operations). Teekay Tankers owns the remaining 50%
                         of the Tanker Operations.
                    (6)  Includes $3.2 million of fees earned from managing vessel transactions
                         for Tanker Investment Ltd. (TIL) and $13.9 million of business
                         development fees received from Teekay Offshore in connection with the
                         Knarr FPSO, UMS and towage transactions for the three months ended
                         September 30, 2015.
                    (7)  Excludes corporate general and administrative expenses relating to
                         GPCO.
                    (8)  Excludes realized losses on an interest rate swap related to the debt
                         facility secured by the Knarr FPSO unit up to commencement of
                         operations on March 9, 2015 of $3.3 million, $5.3 million and $4.1
                         million for the three months ended March 31, 2015, December 31, 2014
                         and September 30, 2014, respectively. Please see Appendix D to this
                         release for a reconciliation of this non-GAAP measure as used in this
                         release to the most directly comparable GAAP financial measure.
                    (9)  Coverage ratio is calculated by dividing the Teekay Parent free cash
                         flow per share by the declared dividend per share.
                    
                    

                    
                    Teekay Corporation
                    Summary Consolidated Statements of Income (Loss)
                    (in thousands of U.S. dollars, except share and per share data)
                    
                    
                    ----------------------------------------------------------------------------
                                             Three Months Ended                Year Ended
                                       December   September    December    December    December
                                       31, 2015    30, 2015    31, 2014    31, 2015    31, 2014
                                    (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
                    ----------------------------------------------------------------------------
                    Revenues            700,106     611,617     544,989   2,450,382   1,993,920
                    
                    Voyage expenses     (36,292)    (29,935)    (25,213)   (115,787)   (127,847)
                    Vessel operating
                     expenses          (244,810)   (213,656)   (200,333)   (844,039)   (809,319)
                    Time-charter
                     hire expense       (40,267)    (43,021)    (24,315)   (138,548)    (67,219)
                    Depreciation and
                     amortization      (137,785)   (130,812)   (109,238)   (509,500)   (422,904)
                    General and
                     administrative
                     expenses           (32,478)    (29,022)    (34,509)   (133,184)   (140,917)
                    Asset
                     impairments (1)    (55,645)          -           -     (71,641)     (4,759)
                    Loan loss
                     recoveries (2)           -           -           -           -       2,521
                    (Loss) gain on
                     sale of vessels
                     and equipment         (177)          -       2,839       1,466      13,509
                    Restructuring
                     charges             (1,639)     (3,994)     (6,766)    (14,017)     (9,826)
                    ----------------------------------------------------------------------------
                    Income from
                     vessel
                     operations         151,013     161,177     147,454     625,132     427,159
                    
                    Interest expense    (66,285)    (62,450)    (57,334)   (242,469)   (208,529)
                    Interest income       1,098       2,161       1,465       5,988       6,827
                    Realized and
                     unrealized gain
                     (loss) on
                     derivative
                     instruments (3)     27,101    (109,667)   (103,304)   (102,200)   (231,675)
                    Equity income
                     (4)                 27,226      14,995      25,417     102,871     128,114
                    Income tax
                     recovery
                     (expense)           18,974      (2,450)     (1,071)     16,767     (10,173)
                    Foreign exchange
                     gain (loss)          2,117     (20,218)     (3,126)     (2,195)     13,431
                    Other - net           1,744        (164)     (6,998)      1,566      (1,152)
                    ----------------------------------------------------------------------------
                    Net income
                     (loss)             162,988     (16,616)      2,503     405,460     124,002
                    Less: Net
                     (income) loss
                     attributable to
                     non-controlling
                     interests         (124,750)      4,381     (16,159)   (323,309)   (178,759)
                    ----------------------------------------------------------------------------
                    Net income
                     (loss)
                     attributable to
                     shareholders of
                     Teekay
                     Corporation         38,238     (12,235)    (13,656)     82,151     (54,757)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    Income (loss)
                     per common
                     share of Teekay
                      - Basic       $      0.53 $     (0.17)$     (0.19)$      1.13 $     (0.76)
                      - Diluted     $      0.52 $     (0.17)$     (0.19)$      1.12 $     (0.76)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    Weighted-average
                     number of
                     common shares
                     outstanding
                      - Basic        72,708,463  72,706,285  72,498,974  72,665,783  72,066,008
                      - Diluted      72,886,260  72,706,285  72,498,974  73,190,564  72,066,008
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    (1)  The Company recognized asset impairments of $55.6 million for the three
                         months ended December 31, 2015 relating to the write-downs of two
                         2000s-built conventional tankers and five 1990s-built shuttle tankers
                         owned by Teekay Offshore to their estimated fair values, using
                         appraised values. The write-down of the two conventional tankers was
                         the result of the expected sale of the vessels and the vessels were
                         classified as held for sale on Teekay Offshore's consolidated balance
                         sheet as at December 31, 2015. The write-down of the five shuttle
                         tankers, which have an average age of 17.5 years, was the result of
                         changes in Teekay Offshore's expectations of their future
                         opportunities, primarily due to their advanced age. While Teekay
                         Offshore expects four of the five vessels to continue to actively trade
                         as shuttle tankers over the near-term and the fifth vessel to actively
                         trade in the conventional tanker market, Teekay Offshore anticipates
                         fewer opportunities for alternative usage and increased age
                         discrimination over time. Results for the year ended December 31, 2015
                         also include the write-down of two 1990s-built shuttle tankers owned by
                         Teekay Offshore. The write-down of one of these shuttle tankers was a
                         result of the expected sale of the vessel and the vessel was classified
                         as held for sale as at December 31, 2015 and the write-down of the
                         second shuttle tanker was a result of a change in the operating plan of
                         the vessel. The Company recognized asset impairments of $4.8 million
                         for the year ended December 31, 2014 related to the impairment of one
                         1990s-built shuttle tanker owned by Teekay Offshore.
                    (2)  The Company recovered $2.5 million during the year ended December 31,
                         2014 related to a receivable for an FPSO front-end engineering and
                         design study (FEED) completed in 2013, which was previously provided
                         for.
                    (3)  Realized and unrealized (losses) gains related to derivative
                         instruments that are not designated as hedges for accounting purposes
                         are included as a separate line item in the statements of income
                         (loss). The realized losses relate to the amounts the Company actually
                         paid to settle such derivative instruments and the unrealized gains
                         (losses) relate to the change in fair value of such derivative
                         instruments, as detailed in the table below:
                    
                    

                    
                    
                    ----------------------------------------------------------------------------
                                             Three Months Ended                Year Ended
                                       December   September    December    December    December
                                       31, 2015    30, 2015    31, 2014    31, 2015    31, 2014
                    ----------------------------------------------------------------------------
                    
                    Realized losses
                     relating to:
                      Interest rate
                       swaps            (26,084)    (26,858)    (33,072)   (108,036)   (125,424)
                      Termination of
                       interest rate
                       swap
                       agreements             -     (10,876)     (2,319)    (10,876)     (1,319)
                      Foreign
                       currency
                       forward
                       contracts         (5,697)     (6,250)     (2,828)    (21,607)     (4,436)
                    ----------------------------------------------------------------------------
                                        (31,781)    (43,984)    (38,219)   (140,519)   (131,179)
                    ----------------------------------------------------------------------------
                    Unrealized gains
                     (losses)
                     relating to:
                      Interest rate
                       swaps             58,079     (60,682)    (53,111)     37,723     (86,045)
                      Foreign
                       currency
                       forward
                       contracts          1,317      (4,792)    (14,154)       (418)    (16,926)
                      Stock purchase
                       warrants            (514)       (209)      2,180       1,014       2,475
                    ----------------------------------------------------------------------------
                                         58,882     (65,683)    (65,085)     38,319    (100,496)
                    ----------------------------------------------------------------------------
                    Total realized
                     and unrealized
                     gains (losses)
                     on non-
                     designated
                     derivative
                     instruments         27,101    (109,667)   (103,304)   (102,200)   (231,675)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    (4)  The Company's proportionate share of items within equity income as
                         identified in Appendix A of this release is detailed in the table
                         below. By excluding these items from equity income, the Company
                         believes the resulting adjusted equity income is a normalized amount
                         that can be used to evaluate the financial performance of the Company's
                         equity accounted investments. Adjusted equity income is a non-GAAP
                         measure.
                    
                    
                    ----------------------------------------------------------------------------
                                              Three Months Ended               Year Ended
                                        December   September    December   December    December
                                        31, 2015    30, 2015    31, 2014   31, 2015    31, 2014
                    ----------------------------------------------------------------------------
                    
                    Equity income         27,226      14,995      25,417    102,871     128,114
                    Proportionate
                     share of
                     unrealized
                     (gains) losses
                     on derivative
                     instruments          (6,465)     13,568       2,082     (5,898)     (1,132)
                    Dilution gain on
                     share issuance
                     by TIL                    -           -           -          -      (4,108)
                    Other(i)               2,537      (8,700)          -     (2,740)    (16,923)
                    ----------------------------------------------------------------------------
                    Equity income
                     adjusted for
                     items in
                     Appendix A           23,298      19,863      27,499     94,233     105,951
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    i.  Includes (a) loss on sale of an LPG carrier owned by Teekay LNG's Exmar
                        LPG BVBA joint venture, (b) Teekay Parent's share of unrealized foreign
                        exchange loss in Sevan Marine ASA and (c) severance costs in the Gemini
                        Tankers LLC joint venture for the three months ended December 31, 2015.
                        Includes the gain on sale of SPT subsidiaries to Teekay Tankers in the
                        ship-to-ship transfer joint venture for the three months ended September
                        30, 2015. Includes unrealized foreign exchange losses and restructuring
                        charges in Sevan Marine ASA and cumulative cost pass-through adjustments
                        in Teekay LNG's Angola LNG project for the year ended December 31, 2015.
                        Includes net gains on sale of vessels in Teekay LNG's Exmar LPG BVBA
                        joint venture for the year ended December 31, 2014.
                    
                    
                    Teekay Corporation
                    Summary Consolidated Balance Sheets
                    (in thousands of U.S. dollars)
                    
                                                             As at          As at          As at
                                                      December 31,  September 30,   December 31,
                                                              2015           2015           2014
                                                       (unaudited)    (unaudited)    (unaudited)
                    ASSETS
                    Cash and cash equivalents -
                     Teekay Parent                         221,021        303,889        232,330
                    Cash and cash equivalents -
                     Teekay LNG                            102,481        154,173        159,639
                    Cash and cash equivalents -
                     Teekay Offshore                       258,473        251,058        252,138
                    Cash and cash equivalents -
                     Teekay Tankers                         96,417         80,579        162,797
                    Other current assets                   497,362        466,754        473,872
                    Restricted cash - Teekay Parent          3,528         30,961         26,594
                    Restricted cash - Teekay LNG           111,519         70,196         45,997
                    Restricted cash - Teekay
                     Offshore                               60,520         49,350         46,760
                    Restricted cash - Teekay
                     Tankers                                   870            915              -
                    Assets held for sale(1)                 55,450         15,092              -
                    Vessels and equipment - Teekay
                     Parent                                748,963        764,135        809,184
                    Vessels and equipment - Teekay
                     LNG                                 1,683,292      1,696,281      1,751,583
                    Vessels and equipment - Teekay
                     Offshore                            4,348,535      4,579,915      3,010,689
                    Vessels and equipment - Teekay
                     Tankers                             1,767,925      1,589,297        828,291
                    Advances on newbuilding
                     contracts and conversion costs        817,878        726,265      1,706,500
                    Derivative assets                       17,924         13,771         14,415
                    Investment in equity accounted
                     investees                             905,159        876,383        873,421
                    Investment in direct financing
                     leases                                684,129        690,437        704,953
                    Other assets(2)                        399,322        399,432        417,290
                    Intangible assets                      111,909        117,474         94,666
                    Goodwill                               168,571        168,571        168,571
                    ----------------------------------------------------------------------------
                    Total assets                        13,061,248     13,044,928     11,779,690
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    LIABILITIES AND EQUITY
                    Accounts payable and accrued
                     liabilities                           476,490        470,687        480,049
                    Current portion of long-term
                     debt - Teekay Parent(2)               245,949        342,878        188,003
                    Current portion of long-term
                     debt - Teekay LNG(2)                  198,448        227,052        158,175
                    Current portion of long-term
                     debt - Teekay Offshore(2)             470,589        453,651        249,671
                    Current portion of long-term
                     debt - Teekay Tankers(2)              163,776        473,859         41,333
                    Long-term debt - Teekay
                     Parent(2)                             610,449        633,849      1,494,031
                    Long-term debt - Teekay LNG(2)       1,859,888      1,811,693      1,812,356
                    Long-term debt - Teekay
                     Offshore(2)                         2,893,285      2,864,036      2,158,925
                    Long-term debt - Teekay
                     Tankers(2)                          1,000,829        544,361        613,032
                    Derivative liabilities                 681,623        760,745        626,139
                    In-process revenue contracts           150,799        157,969        173,412
                    Other long-term liabilities            352,378        394,961        383,089
                    Redeemable non-controlling
                     interest                              255,671        260,298         12,842
                    Equity:
                      Non-controlling interests          2,782,049      2,745,323      2,290,305
                      Shareholders of Teekay               919,025        903,566      1,098,328
                    ----------------------------------------------------------------------------
                    Total liabilities and equity        13,061,248     13,044,928     11,779,690
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    Net Debt - Teekay Parent(3)            631,849        641,877      1,423,110
                    Net Debt - Teekay LNG(3)             1,844,336      1,814,376      1,764,895
                    Net Debt - Teekay Offshore(3)        3,044,881      3,017,279      2,109,698
                    Net Debt - Teekay Tankers(3)         1,067,318        936,726        491,568
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    (1)  In connection with the expected sale of two conventional tankers by
                         Teekay Offshore, the vessels and related equipment of $50.5 million
                         were classified as held for sale as at December 31, 2015. In connection
                         with the expected sale of an older shuttle tanker by Teekay Offshore,
                         the vessel and related equipment of $5.0 million were classified as
                         held for sale as at December 31, 2015 and September 30, 2015. In
                         connection with the expected sale of a conventional tanker by Teekay
                         Tankers, the vessel and related equipment of $10.1 million were
                         classified as held for sale as at September 30, 2015.
                    (2)  Prior period information relating to debt issuance costs has been
                         retrospectively adjusted due to the adoption of Accounting Standards
                         Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (or
                         ASU 2015-03). As a result of adopting ASU 2015-03, non-current assets,
                         total assets and total liabilities and equity decreased by $91.7
                         million (December 31, 2015), $92.1 million (September 30, 2015) and
                         $84.5 million (December 31, 2014), current portion of long-term debt
                         decreased by $25.6 million (December 31, 2015), $26.0 million
                         (September 30, 2015) and $21.4 million (December 31, 2014), and long-
                         term debt decreased by $66.1 million (December 31, 2015), $66.0 million
                         (September 30, 2015) and $63.1 million (December 31, 2014).
                    (3)  Net debt is a non-GAAP measure and represents current and long-term
                         debt less cash and cash equivalents and, if applicable, restricted
                         cash.
                    
                    Teekay Corporation
                    Summary Consolidated Statements of Cash Flows
                    (in thousands of U.S. dollars)
                    
                    
                                                                             Year Ended
                                                                     December 31,  December 31,
                                                                             2015          2014
                                                                      (unaudited)   (unaudited)
                    Cash and cash equivalents provided by (used for)
                    OPERATING ACTIVITIES
                    ----------------------------------------------------------------------------
                    Net operating cash flow                               770,328       446,317
                    ----------------------------------------------------------------------------
                    
                    FINANCING ACTIVITIES
                    Net proceeds from long-term debt                    2,452,878     3,365,045
                    Prepayments of long-term debt                        (554,831)   (1,331,469)
                    Scheduled repayments of long-term debt             (1,044,715)   (1,770,437)
                    (Increase) decrease in restricted cash                (21,005)      380,953
                    Net proceeds from equity issuances of
                     subsidiaries                                         575,349       452,061
                    Equity contribution by joint venture partner            5,500        27,267
                    Issuance of common stock upon exercise of stock
                     options                                                1,217        55,165
                    Distribution from subsidiaries to non-
                     controlling interests                               (360,392)     (360,820)
                    Cash dividends paid                                  (125,881)      (91,004)
                    Other                                                  (3,682)            -
                    ----------------------------------------------------------------------------
                    Net financing cash flow                               924,438       726,761
                    ----------------------------------------------------------------------------
                    
                    INVESTING ACTIVITIES
                    Expenditures for vessels and equipment             (1,799,601)     (994,931)
                    Proceeds from sale of vessels and equipment            20,472       180,638
                    Purchase of SPT                                       (46,961)            -
                    Investment in equity accounted investments            (40,595)      (79,602)
                    Repayments from (advances to) equity accounted
                     investees                                             53,173       (87,130)
                    Increase in restricted cash                           (34,290)            -
                    Direct financing lease payments received               20,824        22,856
                    Investment in CVI Ocean Transportation II Inc.              -       (25,000)
                    Other                                                   3,700         2,335
                    ----------------------------------------------------------------------------
                    Net investing cash flow                            (1,823,278)     (980,834)
                    ----------------------------------------------------------------------------
                    
                    (Decrease) increase in cash and cash equivalents     (128,512)      192,244
                    Cash and cash equivalents, beginning of the year      806,904       614,660
                    ----------------------------------------------------------------------------
                    Cash and cash equivalents, end of the year            678,392       806,904
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    Teekay Corporation
                    Appendix A - Specific Items Affecting Net Income (Loss)
                    (in thousands of U.S. dollars, except per share data)
                    
                    
                    ----------------------------------------------------------------------------
                                               Three Months      Three Months
                                                      Ended             Ended        Year Ended
                                               December 31,     September 30,      December 31,
                                                       2015              2015              2015
                                                (unaudited)       (unaudited)       (unaudited)
                    ----------------------------------------------------------------------------
                                                      $ Per             $ Per             $ Per
                                                 $ Share(1)        $ Share(1)        $ Share(1)
                    Net income (loss) -
                     GAAP basis            162,988           (16,616)          405,460
                    Adjust for: Net
                     (income) loss
                     attributable to non-
                     controlling interests(124,750)            4,381          (323,309)
                    ----------------------------------------------------------------------------
                    Net income (loss)
                     attributable to
                     shareholders of
                     Teekay                 38,238     0.53  (12,235)   (0.17)  82,151     1.13
                    ----------------------------------------------------------------------------
                    Add (subtract)
                     specific items
                     affecting net income:
                      Unrealized (gains)
                       losses from
                       derivative
                       instruments (2)     (65,356)   (0.90)  80,311     1.10  (43,166)   (0.59)
                      Foreign exchange
                       (gains) losses(3)    (7,533)   (0.10)  14,594     0.20  (16,779)   (0.23)
                      Net loss (gain) on
                       sale of vessels(4)    1,415     0.02   (8,700)   (0.12)  (8,928)   (0.12)
                      Asset impairments(5)  55,645     0.76        -        -   71,641     0.99
                      Restructuring
                       charges(6)            1,148     0.02      484     0.01    5,571     0.08
                      Impact of lease
                       termination (7)       1,450     0.02        -        -    1,450     0.02
                      Pre-operational
                       costs (8)             2,138     0.03      426     0.01    7,579     0.10
                      Adjustment to
                       deferred taxes(9)   (18,633)   (0.26)  (5,834)   (0.08) (24,467)   (0.34)
                      Other(10)              1,578     0.02    9,876     0.14   15,560     0.21
                      Non-controlling
                       interests' share of
                       items above(11)      19,718     0.27  (76,089)   (1.05) (22,535)   (0.31)
                    ----------------------------------------------------------------------------
                    Total adjustments       (8,430)   (0.12)  15,068     0.21  (14,074)   (0.19)
                    ----------------------------------------------------------------------------
                    Adjusted net income
                     attributable to
                     shareholders of
                     Teekay                 29,808     0.41    2,833     0.04   68,077     0.94
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    1.  Basic per share amounts.
                    2.  Reflects the unrealized (gains) losses relating to the change in the
                        mark-to-market value of derivative instruments that are not designated
                        as hedges for accounting purposes, including those included in equity
                        income from joint ventures and hedge ineffectiveness from derivative
                        instruments designated as hedges for accounting purposes.
                    3.  Foreign currency exchange (gains) losses primarily relate to the
                        Company's debt denominated in Euros and Norwegian Kroner (NOK) in
                        addition to the unrealized losses (gains) on cross currency swaps used
                        to economically hedge the principal and interest on the NOK bonds.
                        Nearly all of the Company's foreign currency exchange gains and losses
                        are unrealized.
                    4.  Includes the Company's share of the loss on sale of an LPG carrier for
                        the three months and year ended December 31, 2015, gain on sale of the
                        SPT subsidiaries to Teekay Tankers in the ship-to-ship transfer joint
                        venture for the three months ended September 30, 2015 and year ended
                        December 31, 2015, and gain on sale of a shuttle tanker for the year
                        ended December 31, 2015.
                    5.  Please refer to footnote (1) of the summary consolidated statements of
                        income (loss) about the write-down of vessels for the three months and
                        year ended December 31, 2015.
                    6.  Restructuring charges primarily relate to crew redundancy costs.
                    7.  Relates to the capital lease termination for RasGas II LNG Carriers for
                        the three months and year ended December 31, 2015.
                    8.  Includes costs associated with the delivery deferral of the Stavanger
                        Spirit UMS for the three months and year ended December 31, 2015 and
                        currency forward contracts and interest rate swaps related to projects
                        during their pre-operational phases for the three months ended December
                        31, 2015, September 30, 2015 and year ended December 31, 2015.
                    9.  Adjustment to deferred taxes primarily relates to a decrease in the
                        valuation allowance related to certain Norwegian entities and an
                        increase in deferred income tax asset for one of Teekay Offshore's
                        Norwegian tax structures for the three months and year ended December
                        31, 2015 and a net deferred tax recovery related to the acquisition of
                        the Knarr FPSO by Teekay Offshore for the three months ended September
                        30, 2015 and year ended December 31, 2015.
                    10. Other primarily relates to Teekay Parent's share of unrealized foreign
                        exchange losses in Sevan Marine ASA and severance costs in the Gemini
                        Tankers LLC joint venture for the three months and year ended December
                        31, 2015 and realized loss on termination of an interest rate swap for
                        the three months ended September 30, 2015 and year ended December 31,
                        2015.
                    11. The amount identified as "Non-controlling interests' share of items
                        above" in the table above is the cumulative amount of the non-
                        controlling interests' proportionate share of items listed in the table.
                        Items affecting net income include items from the Company's wholly-owned
                        subsidiaries, its consolidated non-wholly-owned subsidiaries and its
                        proportionate share of items from equity accounted investments. The
                        specific items affecting net income are analyzed to determine whether
                        any of the amounts originated from a consolidated non-wholly-owned
                        subsidiary. Each amount that originates from a consolidated non-wholly-
                        owned subsidiary is multiplied by the non-controlling interests'
                        percentage share in this subsidiary to arrive at the non-controlling
                        interests' share of the amount.
                    
                    
                    Teekay Corporation
                    Appendix A - Specific Items Affecting Net Income
                    (in thousands of U.S. dollars, except per share data)
                    
                    

                    
                    
                    ----------------------------------------------------------------------------
                                                         Three Months Ended          Year Ended
                                                          December 31, 2014   December 31, 2014
                                                                (unaudited)         (unaudited)
                    ----------------------------------------------------------------------------
                                                                      $ Per               $ Per
                                                                $  Share(1)         $  Share(1)
                    Net income - GAAP basis                 2,503             124,002
                    Adjust for: Net income attributable
                     to non-controlling interests         (16,159)           (178,759)
                    ----------------------------------------------------------------------------
                    Net loss attributable to
                     shareholders of Teekay               (13,656)    (0.19)  (54,757)    (0.76)
                    ----------------------------------------------------------------------------
                    Add (subtract) specific items
                     affecting net income:
                      Unrealized losses from derivative
                       instruments (2)                     67,167      0.93    99,364      1.38
                      Foreign exchange losses (gains)(3)      342         -   (17,384)    (0.24)
                      Net gain on sale of vessels and
                       loan loss recoveries(4)             (2,839)    (0.04)  (32,954)    (0.46)
                      Asset impairments(5)                      -         -     4,759      0.07
                      Restructuring charges(6)                  -         -     2,818      0.04
                      Formation of TIL(7)                       -         -   (10,948)    (0.15)
                      Loss on bond repurchases              6,839      0.09     7,699      0.11
                      Impact of lease termination (8)      12,978      0.18    12,978      0.18
                      Pre-operational costs (9)             2,609      0.04    15,641      0.22
                      Adjustment to deferred taxes(10)      4,200      0.06     4,200      0.06
                      Other(11)                             7,547      0.10    10,424      0.14
                      Non-controlling interests' share
                       of items above(12)                 (54,517)    (0.75)  (40,367)    (0.57)
                    ----------------------------------------------------------------------------
                    Total adjustments                      44,326      0.61    56,230      0.78
                    ----------------------------------------------------------------------------
                    Adjusted net income attributable to
                     shareholders of Teekay                30,670      0.42     1,473      0.02
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    1.  Basic per share amounts.
                    2.  Reflects the unrealized losses relating to the change in the mark-to-
                        market value of derivative instruments that are not designated as hedges
                        for accounting purposes, including those included in equity income from
                        joint ventures.
                    3.  Foreign currency exchange losses (gains) primarily relate to the
                        Company's debt denominated in Euros and Norwegian Kroner (NOK) in
                        addition to the unrealized losses (gains) on cross currency swaps used
                        to economically hedge the principal and interest on the NOK bonds.
                        Nearly all of the Company's foreign currency exchange gains and losses
                        are unrealized.
                    4.  Includes the gain on sale of a shuttle tanker to Teekay Offshore's 50/50
                        joint venture with Odebrecht, the Company's share of the gain on sale of
                        vessels in the Exmar LPG BVBA joint venture, a net gain on the sale of
                        an office building, a net gain on the sale of six vessels to TIL, and
                        the recovery of FPSO FEED study costs previously provided for the year
                        ended December 31, 2014.
                    5.  Includes the impairment of a shuttle tanker for the year ended December
                        31, 2014.
                    6.  Restructuring charges primarily relate to crew redundancy costs.
                    7.  Relates to the unrealized gain on the TIL stock purchase warrants issued
                        to the Company and Teekay Tankers in connection with TIL's formation and
                        initial funding and a dilution gain on share issuance by TIL.
                    8.  Relates to the capital lease terminations for the RasGas II LNG Carriers
                        for the year ended December 31, 2014.
                    9.  Includes realized losses on interest rate swaps and income taxes related
                        to the Knarr FPSO during its pre-operational phase for the year ended
                        December 31, 2014.
                    10. Adjustment to deferred taxes relates to an increase in the valuation
                        allowance in relation the Banff FPSO for the year ended December 31,
                        2014.
                    11. Other primarily relates to a permanent impairment charge on marketable
                        securities, Norwegian pension termination costs and the write-off of
                        mobilization costs relating to the HiLoad DP unit for the year ended
                        December 31, 2014.
                    12. The amount identified as "Non-controlling interests' share of items
                        above" in the table above is the cumulative amount of the non-
                        controlling interests' proportionate share of items listed in the table.
                        Items affecting net income include items from the Company's wholly-owned
                        subsidiaries, its consolidated non-wholly-owned subsidiaries and its
                        proportionate share of items from equity accounted for investments. The
                        specific items affecting net income are analyzed to determine whether
                        any of the amounts originated from a consolidated non-wholly-owned
                        subsidiary. Each amount that originates from a consolidated non-wholly-
                        owned subsidiary is multiplied by the non-controlling interests'
                        percentage share in this subsidiary to arrive at the non-controlling
                        interests' share of the amount.
                    
                    
                    Teekay Corporation
                    Appendix B - Supplemental Financial Information
                    Summary Statement of Income for the Three Months Ended December 31, 2015
                    (in thousands of U.S. dollars)
                    (unaudited)
                    
                                                        Teekay          Consolidation
                                      Teekay   Teekay  Tankers   Teekay   Adjustments
                                    Offshore      LNG      (1)   Parent           (2)     Total
                    
                    
                    Revenues         339,142  103,642  167,506  114,540       (24,724)  700,106
                    
                    Voyage expenses  (26,607)    (215)  (9,599)    (904)        1,033   (36,292)
                    Vessel
                     operating
                     expenses       (108,920) (24,046) (48,559) (63,285)            -  (244,810)
                    Time-charter
                     hire expense    (15,112)       -  (23,403) (27,470)       25,718   (40,267)
                    Depreciation
                     and
                     amortization    (71,974) (23,002) (25,131) (18,368)          690  (137,785)
                    General and
                     administrative
                     expenses        (14,190)  (5,666)  (6,217)  (6,836)          431   (32,478)
                    Asset
                     impairments     (55,645)       -        -        -             -   (55,645)
                    Gain (loss) on
                     sale of
                     vessels and
                     equipment             -        -      771     (948)            -      (177)
                    Restructuring
                     charges            (276)    (491)       -     (872)            -    (1,639)
                    ----------------------------------------------------------------------------
                    
                    Income (loss)
                     from vessel
                     operations       46,418   50,222   55,368   (4,143)        3,148   151,013
                    
                    Interest
                     expense         (33,013) (10,827)  (7,644) (16,885)        2,084   (66,285)
                    Interest income      203      539       39    2,386        (2,069)    1,098
                    Realized and
                     unrealized
                     gains on
                     derivative
                     instruments      16,478    9,957      497      169             -    27,101
                    Equity income        913   23,588    5,480      331        (3,086)   27,226
                    Equity in
                     earnings of
                     subsidiaries
                     (3)                   -        -        -   51,552       (51,552)        -
                    Income tax
                     recovery
                     (expense)        15,703   (2,431)  (1,653)   7,355             -    18,974
                    Foreign
                     exchange
                     (loss) gain        (827)   5,712      405   (3,146)          (27)    2,117
                    Other - net          825      355       (5)     619           (50)    1,744
                    ----------------------------------------------------------------------------
                    Net income        46,700   77,115   52,487   38,238       (51,552)  162,988
                    Less: Net
                     income
                     attributable
                     to non-
                     controlling
                     interests (4)    (2,829)  (4,891)       -        -      (117,030) (124,750)
                    ----------------------------------------------------------------------------
                    Net income
                     attributable
                     to
                     shareholders/
                     unitholders of
                     publicly-
                     listed
                     entities         43,871   72,224   52,487   38,238      (168,582)   38,238
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    1.  Financial information for Teekay Tankers includes operations of the SPT
                        Explorer and Navigator Spirit from December 18, 2015, the date Teekay
                        Tankers acquired the vessels from Teekay Offshore.
                    2.  Consolidation Adjustments column includes adjustments which eliminate
                        transactions between subsidiaries (a) Teekay Offshore, Teekay LNG and
                        Teekay Tankers and (b) Teekay Parent and results from Tanker Operations.
                    3.  Teekay Corporation's proportionate share of the net earnings of its
                        publicly-traded subsidiaries.
                    4.  Net income attributable to non-controlling interests in the Teekay
                        Offshore and Teekay LNG columns represent the joint venture partners'
                        share of the net income or loss of their respective joint ventures. Net
                        income attributable to non-controlling interest in the Consolidation
                        Adjustments column represents the public's share of the net income of
                        Teekay's publicly-traded subsidiaries.
                    
                    
                    Teekay Corporation
                    Appendix B - Supplemental Financial Information
                    Summary Statement of Income for the Year Ended December 31, 2015
                    (in thousands of U.S. dollars)
                    (unaudited)
                    
                    ----------------------------------------------------------------------------
                                                                                         Teekay
                                                           Teekay         Teekay        Tankers
                                                         Offshore            LNG            (1)
                    ----------------------------------------------------------------------------
                    
                    
                    Revenues                            1,229,413        397,991        504,347
                    
                    Voyage expenses                       (98,006)        (1,146)       (19,566)
                    Vessel operating expenses            (378,480)       (94,101)      (130,775)
                    Time-charter hire expense             (51,750)             -        (77,799)
                    Depreciation and amortization        (274,599)       (92,253)       (71,429)
                    General and administrative
                     expenses                             (72,613)       (25,118)       (16,694)
                    Asset impairments                     (71,641)             -              -
                    Gain (loss) on sale of vessels
                     and equipment                          1,643              -            771
                    Restructuring charges                    (568)        (4,001)        (4,772)
                    ----------------------------------------------------------------------------
                    
                    Income (loss) from vessel
                     operations                           283,399        181,372        184,083
                    
                    Interest expense                     (122,838)       (43,259)       (16,987)
                    Interest income                           633          2,501            106
                    Realized and unrealized losses
                     on derivative instruments            (73,704)       (20,022)        (1,598)
                    Equity income                           7,672         84,171         14,411
                    Equity in earnings of
                     subsidiaries (3)                           -              -              -
                    Income tax recovery (expense)          21,357         (2,722)        (3,336)
                    Foreign exchange (loss) gain          (17,467)        13,943            253
                    Other - net                             1,091          1,526             (5)
                    ----------------------------------------------------------------------------
                    Net income                            100,143        217,510        176,927
                    Less: Net income attributable
                     to non-controlling interests
                     (4)                                  (13,911)       (16,627)             -
                    ----------------------------------------------------------------------------
                    Net income attributable to
                     shareholders/ unitholders of
                     publicly-listed entities              86,232        200,883        176,927
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    Teekay Corporation
                    Appendix B - Supplemental Financial Information
                    Summary Statement of Income for the Year Ended December 31, 2015
                    (in thousands of U.S. dollars)
                    (unaudited)
                    
                    ----------------------------------------------------------------------------
                                                                   Consolidation
                                                           Teekay    Adjustments
                                                           Parent            (2)          Total
                    ----------------------------------------------------------------------------
                    
                    
                    Revenues                              419,166       (100,535)     2,450,382
                    
                    Voyage expenses                        (1,607)         4,538       (115,787)
                    Vessel operating expenses            (240,683)             -       (844,039)
                    Time-charter hire expense            (113,417)       104,418       (138,548)
                    Depreciation and amortization         (71,909)           690       (509,500)
                    General and administrative
                     expenses                             (18,176)          (583)      (133,184)
                    Asset impairments                           -              -        (71,641)
                    Gain (loss) on sale of vessels
                     and equipment                           (948)             -          1,466
                    Restructuring charges                  (2,654)        (2,022)       (14,017)
                    ----------------------------------------------------------------------------
                    
                    Income (loss) from vessel
                     operations                           (30,228)         6,506        625,132
                    
                    Interest expense                      (64,492)         5,107       (242,469)
                    Interest income                         7,840         (5,092)         5,988
                    Realized and unrealized losses
                     on derivative instruments             (6,876)             -       (102,200)
                    Equity income                           3,415         (6,798)       102,871
                    Equity in earnings of
                     subsidiaries (3)                     171,333       (171,333)             -
                    Income tax recovery (expense)           1,468              -         16,767
                    Foreign exchange (loss) gain              754            322         (2,195)
                    Other - net                            (1,063)            17          1,566
                    ----------------------------------------------------------------------------
                    Net income                             82,151       (171,271)       405,460
                    Less: Net income attributable
                     to non-controlling interests
                     (4)                                        -       (292,771)      (323,309)
                    ----------------------------------------------------------------------------
                    Net income attributable to
                     shareholders/ unitholders of
                     publicly-listed entities              82,151       (464,042)        82,151
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    1.  Financial information for Teekay Tankers includes operations of the SPT
                        Explorer and Navigator Spirit from December 18, 2015, the date Teekay
                        Tankers acquired the vessels from Teekay Offshore.
                    2.  Consolidation Adjustments column includes adjustments which eliminate
                        transactions between subsidiaries (a) Teekay Offshore, Teekay LNG and
                        Teekay Tankers and (b) Teekay Parent and results from Tanker Operations.
                    3.  Teekay Corporation's proportionate share of the net earnings of its
                        publicly-traded subsidiaries.
                    4.  Net income attributable to non-controlling interests in the Teekay
                        Offshore and Teekay LNG columns represent the joint venture partners'
                        share of the net income or loss of their respective joint ventures. Net
                        income attributable to non-controlling interest in the Consolidation
                        Adjustments column represents the public's share of the net income of
                        Teekay's publicly-traded subsidiaries.
                    
                    Teekay Corporation
                    Appendix C - Supplemental Financial Information
                    Teekay Parent Summary Operating Results
                    For the Three Months Ended December 31, 2015
                    (in thousands of U.S. dollars)
                    (unaudited)
                    
                    ----------------------------------------------------------------------------
                                                            Owned   In-Chartered
                                                     Conventional   Conventional
                                                          Tankers        Tankers          FPSOs
                    ----------------------------------------------------------------------------
                    
                    
                    Revenues                                3,494         11,161         80,947
                    
                    Voyage expenses                          (118)          (282)           115
                    Vessel operating expenses                (862)        (2,824)       (50,300)
                    Time-charter hire expense                   -         (8,192)        (8,440)
                    Depreciation and amortization            (713)             -        (17,768)
                    General and administrative
                     expenses                                 (96)          (424)        (3,677)
                    Loss on sale of vessels and
                     equipment                                  -              -           (948)
                    Restructuring charges                       -              -              -
                    ----------------------------------------------------------------------------
                    Income (loss) from vessel
                     operations                             1,705           (561)           (71)
                    ----------------------------------------------------------------------------
                    
                    Reconciliation of income (loss)
                     from vessel operations to cash
                     flow from vessel operations
                    
                    Income (loss) from vessel
                     operations                             1,705           (561)           (71)
                    Depreciation and amortization             713              -         17,768
                    Loss on sale of vessels and
                     equipment                                  -              -            948
                    Amortization of in-process
                     revenue contracts and other                -              -         (1,483)
                    Realized losses from the
                     settlements of non-designated
                     derivative instruments                     -              -         (1,789)
                    ----------------------------------------------------------------------------
                    CFVO - Consolidated(2)                  2,418           (561)        15,373
                    CFVO - Equity Investments(3)            3,307              -           (779)
                    ----------------------------------------------------------------------------
                    CFVO - Total                            5,725           (561)        14,594
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    ----------------------------------------------------------------------------
                                                                                         Teekay
                                                                       Corporate         Parent
                                                        Other (1)            G&A          Total
                    ----------------------------------------------------------------------------
                    
                    
                    Revenues                               18,938              -        114,540
                    
                    Voyage expenses                          (619)             -           (904)
                    Vessel operating expenses              (9,299)             -        (63,285)
                    Time-charter hire expense             (10,838)             -        (27,470)
                    Depreciation and amortization             113              -        (18,368)
                    General and administrative
                     expenses                               1,535         (4,174)        (6,836)
                    Loss on sale of vessels and
                     equipment                                  -              -           (948)
                    Restructuring charges                    (872)             -           (872)
                    ----------------------------------------------------------------------------
                    Income (loss) from vessel
                     operations                            (1,042)        (4,174)        (4,143)
                    ----------------------------------------------------------------------------
                    
                    Reconciliation of income (loss)
                     from vessel operations to cash
                     flow from vessel operations
                    
                    Income (loss) from vessel
                     operations                            (1,042)        (4,174)        (4,143)
                    Depreciation and amortization            (113)             -         18,368
                    Loss on sale of vessels and
                     equipment                                  -              -            948
                    Amortization of in-process
                     revenue contracts and other            3,186              -          1,703
                    Realized losses from the
                     settlements of non-designated
                     derivative instruments                     -              -         (1,789)
                    ----------------------------------------------------------------------------
                    CFVO - Consolidated(2)                  2,031         (4,174)        15,087
                    CFVO - Equity Investments(3)            1,378              -          3,906
                    ----------------------------------------------------------------------------
                    CFVO - Total                            3,409         (4,174)        18,993
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    1.  Includes the results of two chartered-in LNG carriers owned by Teekay
                        LNG and two chartered-in FSO units owned by Teekay Offshore.
                    2.  In addition to the CFVO generated by its directly owned and chartered-in
                        assets, Teekay Parent also receives cash dividends and distributions
                        from its publicly-traded subsidiaries. For the three months ended
                        December 31, 2015, Teekay Parent received cash distributions and
                        dividends from these subsidiaries totaling $13.0 million. The
                        distributions and dividends received by Teekay Parent include, among
                        others, those made with respect to its general partner interests in
                        Teekay Offshore and Teekay LNG. Please refer to Teekay Parent's free
                        cash flow summary on Page 8 of this release for further details.
                    3.  Please see Appendix D to this release for a reconciliation of this non-
                        GAAP measure as used in this release to the most directly comparable
                        GAAP financial measure.
                    
                    
                    Teekay Corporation
                    Appendix D - Reconciliation of Non-GAAP Financial Measures
                    Cash Flow from Vessel Operations - Consolidated
                    (in thousands of U.S. dollars)
                    (unaudited)
                    
                    ----------------------------------------------------------------------------
                                                                Three Months Ended
                                                     December 31,  September 30,   December 31,
                                                             2015           2015           2014
                    ----------------------------------------------------------------------------
                    
                    Income from vessel operations         151,013        161,177        147,454
                    Depreciation and amortization         137,785        130,812        109,238
                    Amortization of in process
                     revenue contracts and other           (6,488)        (6,777)        (9,561)
                    Realized losses from the
                     settlements of non-designated
                     derivative instruments                (5,295)        (5,824)        (2,828)
                    Loss (gain) on sale of vessels
                     and equipment                            177              -         (2,839)
                    Asset impairments                      55,645              -              -
                    Cash flow from time-charter
                     contracts(1), net of revenue
                     accounted for as direct
                     finance leases                         6,586          6,620          5,675
                    ----------------------------------------------------------------------------
                    CFVO - Consolidated                   339,423        286,008        247,139
                    CFVO - Equity Investments (see
                     Appendix D)                           61,973         55,334         61,089
                    ----------------------------------------------------------------------------
                    CFVO - Total                          401,396        341,342        308,228
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    ----------------------------------------------------------------------------
                                                                            Year Ended
                                                                    December 31,   December 31,
                                                                            2015           2014
                    ----------------------------------------------------------------------------
                    
                    Income from vessel operations                        625,132        427,159
                    Depreciation and amortization                        509,500        422,904
                    Amortization of in process revenue contracts
                     and other                                           (33,226)       (43,289)
                    Realized losses from the settlements of non-
                     designated derivative instruments                   (20,008)        (4,437)
                    Asset impairments                                     71,641          4,759
                    Gain on sale of vessels and equipment                 (1,466)       (13,509)
                    Loan loss recoveries                                       -         (2,521)
                    Cash flow from time-charter contracts(1), net
                     of revenue accounted for as direct finance
                     leases                                               24,429         19,636
                    ----------------------------------------------------------------------------
                    CFVO - Consolidated                                1,176,002        810,702
                    CFVO - Equity Investments (see Appendix D)           239,792        238,500
                    ----------------------------------------------------------------------------
                    CFVO - Total                                       1,415,794      1,049,202
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    1.  Teekay LNG's charter contracts for two of its Suezmax tankers, the
                        Bermuda Spirit and Hamilton Spirit, were amended in 2012, which had the
                        effect of reducing the daily charter rates by $12,000 per day for a
                        duration of 24 months ended September 30, 2014. The cash impact of the
                        change in hire rates is not fully reflected in Teekay LNG's statements
                        of income and comprehensive income as the change in the lease payments
                        is being recognized on a straight-line basis over the term of the lease.
                    
                    
                    Teekay Corporation
                    Appendix D - Reconciliation of Non-GAAP Financial Measures
                    Cash Flow from Vessel Operations - Equity Accounted Vessels
                    (in thousands of U.S. dollars)
                    (unaudited)
                    
                    ----------------------------------------------------------------------------
                                                         Three Months Ended
                                     December 31, 2015   September 30, 2015  December 31, 2014
                    ----------------------------------------------------------------------------
                                           At Company's        At Company's        At Company's
                                              Portion(1           Portion(2           Portion(3
                                         100%         )      100%         )      100%         )
                    ----------------------------------------------------------------------------
                    
                    
                    Revenues          270,717   105,188   244,551    98,043   277,894   120,796
                    Vessel and other
                     operating
                     expenses        (108,285)  (41,579) (108,402)  (42,720) (138,084)  (59,493)
                    Depreciation and
                     amortization     (48,511)  (20,547)  (38,840)  (16,378)  (33,638)  (14,815)
                    (Loss) gain on
                     sale of vessels   (2,455)   (1,228)   16,822     8,410         -         -
                    ----------------------------------------------------------------------------
                    Income from
                     vessel
                     operations of
                     equity
                     accounted
                     vessels          111,466    41,834   114,131    47,355   106,172    46,488
                    Interest expense  (29,199)  (11,932)  (30,715)  (12,539)  (25,280)  (10,806)
                    Realized and
                     unrealized gain
                     (loss) on
                     derivative
                     instruments        3,329       597   (43,485)  (17,874)  (21,195)   (7,497)
                    Other - net          (394)     (243)     (173)       86    (7,543)   (3,112)
                    ----------------------------------------------------------------------------
                    Net income of
                     equity
                     accounted
                     vessels           85,202    30,256    39,758    17,028    52,154    25,073
                      Pro forma
                       equity loss
                       from Tanker
                       Operations           -    (3,030)        -    (2,033)        -       344
                    ----------------------------------------------------------------------------
                    Equity income of
                     equity
                     accounted
                     vessels           85,202    27,226    39,758    14,995    52,154    25,417
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    Income from
                     vessel
                     operations of
                     equity
                     accounted
                     vessels          111,466    41,834   114,131    47,355   106,172    46,488
                    Depreciation and
                     amortization      48,511    20,547    38,840    16,378    33,638    14,815
                    Loss (gain) on
                     sale of vessels    2,455     1,228   (16,822)   (8,410)        -         -
                    Cash flow from
                     time-charter
                     contracts, net
                     of revenue
                     accounted for
                     as direct
                     finance lease      8,631     3,135     8,551     3,102     7,937     2,884
                    Amortization of
                     in-process
                     revenue
                     contracts and
                     other             (3,176)   (1,623)   (3,176)   (1,623)   (4,047)   (2,058)
                    ----------------------------------------------------------------------------
                    Cash flow from
                     vessel
                     operations of
                     equity
                     accounted
                     vessels(4)       167,887    65,121   141,524    56,802   143,700    62,129
                      Pro forma CFVO
                       from Tanker
                       Operations(5)        -    (3,148)        -    (1,468)        -    (1,040)
                    ----------------------------------------------------------------------------
                    Cash flow from
                     vessel
                     operations of
                     equity
                     accounted
                     vessels(4)       167,887    61,973   141,524    55,334   143,700    61,089
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    1.  The Company's proportionate share of its equity accounted vessels and
                        other investments ranges from 18 percent to 52 percent.
                    2.  The Company's proportionate share of its equity accounted vessels and
                        other investments ranges from 16 percent to 52 percent.
                    3.  The Company's proportionate share of its equity accounted vessels and
                        other investments ranges from 13 percent to 52 percent.
                    4.  CFVO from equity accounted vessels represents the Company's
                        proportionate share of CFVO from its equity accounted vessels and other
                        investments.
                    5.  Pro forma CFVO from Tanker Operations represents the Company's 100
                        percent CFVO from Tanker Operations as Teekay Parent and Teekay Tankers
                        each account for their 50 percent interest in Tanker Operations as an
                        equity-accounted investment. Upon consolidation of Teekay Tankers into
                        Teekay, the results of Tanker Operations are accounted for on a
                        consolidated basis.
                    
                    
                    Teekay Corporation
                    Appendix D - Reconciliation of Non-GAAP Financial Measures
                    Cash Flow from Vessel Operations - Equity Accounted Vessels
                    (in thousands of U.S. dollars)
                    (unaudited)
                    
                    ----------------------------------------------------------------------------
                                                                    Year Ended
                                                       December 31, 2015      December 31, 2014
                    ----------------------------------------------------------------------------
                                                          At   Company's         At   Company's
                                                        100%  Portion(1)       100%  Portion(2)
                    ----------------------------------------------------------------------------
                    
                    
                    Revenues                       1,039,015     419,335  1,064,890     473,150
                    Vessel and other operating
                     expenses                       (436,741)   (178,266)  (540,523)   (234,886)
                    Depreciation and amortization   (160,207)    (69,103)  (132,785)    (61,361)
                    Gain on sale of vessels           14,367       7,182     33,846      16,923
                    ----------------------------------------------------------------------------
                    Income from vessel operations
                     of equity accounted vessels     456,434     179,148    425,428     193,826
                    Interest expense                (115,777)    (47,799)   (96,953)    (42,672)
                    Realized and unrealized loss
                     on derivative instruments       (37,443)    (14,790)   (59,839)    (21,200)
                    Dilution gain on share
                     issuance by TIL                       -           -          -       4,108
                    Other - net                      (13,513)     (5,863)   (11,044)     (4,636)
                    ----------------------------------------------------------------------------
                    Net income of equity accounted
                     vessels                         289,701     110,696    257,592     129,426
                      Pro forma equity loss from
                       Tanker Operations                   -      (7,825)         -      (1,312)
                    ----------------------------------------------------------------------------
                    Equity income of equity
                     accounted vessels               289,701     102,871    257,592     128,114
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    Income from vessel operations
                     of equity accounted vessels     456,434     179,148    425,428     193,825
                    Depreciation and amortization    160,207      69,103    132,785      61,361
                    Gain on sale of vessels          (14,367)     (7,182)   (33,846)    (16,923)
                    Cash flow from time-charter
                     contracts, net of revenue
                     accounted for as direct
                     finance lease                    34,062      12,381     30,616      11,102
                    Amortization of in-process
                     revenue contracts and other     (14,030)     (7,153)   (16,321)     (8,295)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations of equity
                     accounted vessels(3)            622,306     246,297    538,662     241,070
                      Pro forma CFVO from Tanker
                       Operations(4)                       -      (6,505)         -      (2,570)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations of equity
                     accounted vessels(3)            622,306     239,792    538,662     238,500
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    1.  The Company's proportionate share of its equity accounted vessels and
                        other investments ranges from 16 percent to 52 percent during the year.
                    2.  The Company's proportionate share of its equity accounted vessels and
                        other investments ranges from 13 percent to 52 percent.
                    3.  CFVO from equity accounted vessels represents the Company's
                        proportionate share of CFVO from its equity accounted vessels and other
                        investments.
                    4.  Pro forma CFVO from Tanker Operations represents the Company's 100
                        percent CFVO from Tanker Operations as Teekay Parent and Teekay Tankers
                        each account for their 50 percent interest in Tanker Operations as an
                        equity-accounted investment. Upon consolidation of Teekay Tankers into
                        Teekay, the results of Tanker Operations are accounted for on a
                        consolidated basis.
                    
                    
                    Teekay Corporation
                    Appendix D - Reconciliation of Non-GAAP Financial Measures
                    Cash Flow from Vessel Operations - Teekay Parent
                    (in thousands of U.S. dollars)
                    (unaudited)
                    
                    ----------------------------------------------------------------------------
                                                       Three Months Ended September 30, 2015
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                            Owned   In-chartered
                                                     Conventional   Conventional
                                                          Tankers        Tankers          FPSOs
                    ----------------------------------------------------------------------------
                    
                    Teekay Parent income (loss)
                     from vessel operations                 1,709         (1,385)       (18,012)
                    Depreciation and amortization             713              -         17,610
                    Amortization of in-process
                     revenue contracts and other                -              -         (1,483)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                                -              -         (2,186)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent             2,422         (1,385)        (4,071)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    
                    ----------------------------------------------------------------------------
                                                       Three Months Ended September 30, 2015
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                                                         Teekay
                                                                       Corporate         Parent
                                                            Other            G&A          Total
                    ----------------------------------------------------------------------------
                    
                    Teekay Parent income (loss)
                     from vessel operations                22,567         (3,628)         1,251
                    Depreciation and amortization            (210)             -         18,113
                    Amortization of in-process
                     revenue contracts and other             (326)             -         (1,809)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                                -              -         (2,186)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent            22,031         (3,628)        15,369
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    ----------------------------------------------------------------------------
                                                          Three Months Ended June 30, 2015
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                            Owned   In-chartered
                                                     Conventional   Conventional
                                                          Tankers        Tankers          FPSOs
                    ----------------------------------------------------------------------------
                    
                    
                    Teekay Parent income (loss)
                     from vessel operations                 3,915         (1,501)         8,677
                    Depreciation and amortization             713              -         35,298
                    Amortization of in-process
                     revenue contracts and other                -              -        (10,619)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                                -              -         (1,658)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent             4,628         (1,501)        31,698
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    
                    ----------------------------------------------------------------------------
                                                         Three Months Ended June 30, 2015
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                                                         Teekay
                                                                       Corporate         Parent
                                                            Other            G&A          Total
                    ----------------------------------------------------------------------------
                    
                    
                    Teekay Parent income (loss)
                     from vessel operations                 1,480         (4,139)         8,432
                    Depreciation and amortization            (112)             -         35,899
                    Amortization of in-process
                     revenue contracts and other                -              -        (10,619)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                                -              -         (1,658)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent             1,368         (4,139)        32,054
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    ----------------------------------------------------------------------------
                                                         Three Months Ended March 31, 2015
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                            Owned   In-chartered
                                                     Conventional   Conventional
                                                          Tankers        Tankers          FPSOs
                    ----------------------------------------------------------------------------
                    
                    ----------------------------------------------------------------------------
                    
                    Teekay Parent income (loss)
                     from vessel operations                 3,578         (2,476)        (8,139)
                    Depreciation and amortization             713              -         21,259
                    Amortization of in-process
                     revenue contracts and other                -              -         (3,457)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                                -              -         (2,176)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent             4,291         (2,476)        (7,487)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    
                    ----------------------------------------------------------------------------
                                                         Three Months Ended March 31, 2015
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                                                         Teekay
                                                                       Corporate         Parent
                                                            Other            G&A          Total
                    ----------------------------------------------------------------------------
                    
                    ----------------------------------------------------------------------------
                    
                    Teekay Parent income (loss)
                     from vessel operations                   937         (6,889)       (12,989)
                    Depreciation and amortization            (113)             -         21,859
                    Amortization of in-process
                     revenue contracts and other              570              -         (2,887)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                                -              -         (2,176)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent             1,394         (6,889)         3,807
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    ----------------------------------------------------------------------------
                                                        Three Months Ended December 31, 2014
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                            Owned   In-chartered
                                                     Conventional   Conventional
                                                          Tankers        Tankers          FPSOs
                    ----------------------------------------------------------------------------
                    
                    
                    Teekay Parent income (loss)
                     from vessel operations                   836         (5,067)         4,381
                    Depreciation and amortization             713              -         20,854
                    Loss on sale of vessels and
                     equipment                                  -              -            282
                    Amortization of in-process
                     revenue contracts and other                -              -         (5,943)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                                -              -         (1,497)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent             1,549         (5,067)        18,077
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    
                    ----------------------------------------------------------------------------
                                                       Three Months Ended December 31, 2014
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                                                         Teekay
                                                                       Corporate         Parent
                                                            Other            G&A          Total
                    ----------------------------------------------------------------------------
                    
                    
                    Teekay Parent income (loss)
                     from vessel operations                 7,272         (3,767)         3,655
                    Depreciation and amortization            (113)             -         21,454
                    Loss on sale of vessels and
                     equipment                                  -              -            282
                    Amortization of in-process
                     revenue contracts and other                -              -         (5,943)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                                -              -         (1,497)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent             7,159         (3,767)        17,951
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    ----------------------------------------------------------------------------
                                                       Three Months Ended September 30, 2014
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                            Owned   In-chartered
                                                     Conventional   Conventional
                                                          Tankers        Tankers          FPSOs
                    ----------------------------------------------------------------------------
                    
                    Teekay Parent (loss) income
                     from vessel operations                  (447)        (4,441)       (23,208)
                    Depreciation and amortization             713              -         21,145
                    Gain on sale of vessels and
                     equipment                                  -              -         (1,217)
                    Amortization of in-process
                     revenue contracts and other                -              -         (6,580)
                    Realized gains (losses) from
                     the settlements of non-
                     designated foreign currency
                     derivative instruments                    11              -           (167)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent               277         (4,441)       (10,027)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    
                    ----------------------------------------------------------------------------
                                                       Three Months Ended September 30, 2014
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                                                         Teekay
                                                                       Corporate         Parent
                                                            Other            G&A          Total
                    ----------------------------------------------------------------------------
                    
                    Teekay Parent (loss) income
                     from vessel operations                12,083         (4,068)       (20,081)
                    Depreciation and amortization            (542)             -         21,316
                    Gain on sale of vessels and
                     equipment                             (7,285)             -         (8,502)
                    Amortization of in-process
                     revenue contracts and other                -              -         (6,580)
                    Realized gains (losses) from
                     the settlements of non-
                     designated foreign currency
                     derivative instruments                     -              -           (156)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent             4,256         (4,068)       (14,003)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    ----------------------------------------------------------------------------
                                                          Three Months Ended June 30, 2014
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                            Owned   In-chartered
                                                     Conventional   Conventional
                                                          Tankers        Tankers          FPSOs
                    ----------------------------------------------------------------------------
                    
                    
                    Teekay Parent (loss) income
                     from vessel operations                  (161)        (4,818)       (34,843)
                    Depreciation and amortization             710              -         18,296
                    Loan loss recoveries                        -              -         (2,521)
                    Loss on sale of vessels and
                     equipment                                340              -              -
                    Amortization of in-process
                     revenue contracts and other                -              -         (6,580)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                              (34)             -            (52)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent               855         (4,818)       (25,700)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    
                    ----------------------------------------------------------------------------
                                                         Three Months Ended June 30, 2014
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                                                         Teekay
                                                                       Corporate         Parent
                                                            Other            G&A          Total
                    ----------------------------------------------------------------------------
                    
                    
                    Teekay Parent (loss) income
                     from vessel operations                 9,810         (3,362)       (33,374)
                    Depreciation and amortization             (62)             -         18,944
                    Loan loss recoveries                        -              -         (2,521)
                    Loss on sale of vessels and
                     equipment                                  -              -            340
                    Amortization of in-process
                     revenue contracts and other                -              -         (6,580)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                                -              -            (86)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent             9,748         (3,362)       (23,277)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    ----------------------------------------------------------------------------
                                                         Three Months Ended March 31, 2014
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                            Owned   In-chartered
                                                     Conventional   Conventional
                                                          Tankers        Tankers          FPSOs
                    ----------------------------------------------------------------------------
                    
                    Teekay Parent income (loss)
                     from vessel operations                 4,510         (2,819)       (25,135)
                    Depreciation and amortization              80              -         18,335
                    Loss on sale of vessels and
                     equipment                                162              -              -
                    Amortization of in-process
                     revenue contracts and other                -              -         (6,580)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                             (262)             -           (526)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent             4,490         (2,819)       (13,906)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    
                    ----------------------------------------------------------------------------
                                                         Three Months Ended March 31, 2014
                                                                    (unaudited)
                    ----------------------------------------------------------------------------
                    
                                                                                         Teekay
                                                                       Corporate         Parent
                                                            Other            G&A          Total
                    ----------------------------------------------------------------------------
                    
                    Teekay Parent income (loss)
                     from vessel operations                12,465         (5,658)       (16,638)
                    Depreciation and amortization             (57)             -         18,358
                    Loss on sale of vessels and
                     equipment                                  -              -            162
                    Amortization of in-process
                     revenue contracts and other                -              -         (6,580)
                    Realized losses from the
                     settlements of non-designated
                     foreign currency derivative
                     instruments                                -              -           (788)
                    ----------------------------------------------------------------------------
                    Cash flow from vessel
                     operations - Teekay Parent            12,408         (5,658)        (5,486)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    Teekay Corporation
                    Appendix D - Reconciliation of Non-GAAP Financial Measures
                    Net Interest Expense - Teekay Parent
                    (in thousands of U.S. dollars)
                    (unaudited)
                    
                    ----------------------------------------------------------------------------
                                                               Three Months Ended
                                                 December 31, September 30,  June 30, March 31,
                                                         2015          2015      2015      2015
                    ----------------------------------------------------------------------------
                    Interest expense                  (66,285)      (62,450)  (62,388)  (51,346)
                    Interest income                     1,098         2,161     1,199     1,530
                    ----------------------------------------------------------------------------
                    Interest expense net of
                     interest income -
                     consolidated                     (65,187)      (60,289)  (61,189)  (49,816)
                    Less:
                      Non-Teekay Parent interest
                       expense net of interest
                       income                         (50,688)      (47,925)  (38,215)  (34,753)
                    ----------------------------------------------------------------------------
                    Interest expense net of
                     interest income - Teekay
                     Parent                           (14,499)      (12,364)  (22,974)  (15,063)
                    Add:
                      Teekay Parent realized
                       losses on interest rate
                       swaps (1)                       (1,209)       (1,292)   (5,661)   (2,471)
                    ----------------------------------------------------------------------------
                    Net interest expense - Teekay
                     Parent                           (15,708)      (13,656)  (28,635)  (17,534)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    
                    ----------------------------------------------------------------------------
                                                               Three Months Ended
                                                 December 31, September 30,  June 30, March 31,
                                                         2014          2014      2014      2014
                    ----------------------------------------------------------------------------
                    Interest expense                  (57,334)      (52,206)  (49,656)  (49,333)
                    Interest income                     1,465         2,786       793     1,783
                    ----------------------------------------------------------------------------
                    Interest expense net of
                     interest income -
                     consolidated                     (55,869)      (49,420)  (48,863)  (47,550)
                    Less:
                      Non-Teekay Parent interest
                       expense net of interest
                       income                         (42,279)      (37,944)  (38,088)  (35,135)
                    ----------------------------------------------------------------------------
                    Interest expense net of
                     interest income - Teekay
                     Parent                           (13,590)      (11,476)  (10,775)  (12,415)
                    Add:
                      Teekay Parent realized
                       losses on interest rate
                       swaps (1)                       (1,466)       (1,524)   (4,240)   (3,736)
                    ----------------------------------------------------------------------------
                    Net interest expense - Teekay
                     Parent                           (15,056)      (13,000)  (15,015)  (16,151)
                    ----------------------------------------------------------------------------
                    ----------------------------------------------------------------------------
                    
                    
                    (1)  Realized losses on interest rate swaps exclude realized losses of $3.3
                         million, $5.3 million and $4.1 million for the three months ended March
                         31, 2015, December 31, 2014 and September 30, 2014, respectively, on
                         the interest rate swap related to the debt facility secured by the
                         Knarr FPSO and exclude a realized gain on the termination of a swap
                         agreement of $1.0 million for the three months ended March 31, 2014.
                    
                    

Forward-Looking Statements

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: Teekay Offshore's and Teekay LNG's use of internally generated cash flow to contribute to the funding of growth projects, including the impact on their future available distributable cash flow per unit; the potential for future dividend and distribution changes by Teekay Parent or any of the Daughter Entities; the impact of growth projects on Teekay Group's future cash flows; future tanker market fundamentals; the Teekay Group's focus on project execution, driving operating efficiencies, securing required financings for Teekay Offshore and Teekay LNG, and redeploying its existing assets rather than on new growth projects; the pending sale of Teekay Offshore's two conventional tankers, including the impact on future liquidity; the expected redelivery date and potential redeployment of the Varg FPSO; the timing of newbuilding deliveries and the Bahrain project start-up and timing of commencement of related contracts; the capacity, total cost and financing for the Bahrain project; the outcome of Teekay LNG's dispute over the Magellan Spirit charter contract termination; the expected annual CFVO and distributable cash flow from Teekay LNG's two MEGI LNG carriers for Cheniere Energy; any recovery of deferred charter amounts relating to Teekay LNG's two 52 percent owned LNG carriers on charter to the Yemen LNG project, and any recommencement of such project; Teekay Tankers' future dividend payout ratio; and the impact on Teekay Tankers' debt maturity profile and financial flexibility as a result of the new $900 million long-term debt facility. 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, petroleum products, LNG and LPG, either generally or in particular regions; greater or less than anticipated levels of newbuilding orders or greater or less than anticipated rates of vessel scrapping; changes in trading patterns significantly affecting overall vessel tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates; changes in the offshore production of oil or demand for shuttle tankers, FSOs, FPSOs, UMS, and towage vessels; changes in oil production and the impact on the Company's tankers and offshore units;

fluctuations in global oil prices; trends in prevailing charter rates for the Company's vessels and offshore unit contract renewals; the potential for early termination of long-term contracts and inability of the Company to renew or replace long-term contracts; the inability of charterers to make future charter payments; potential shipyard and project construction delays, newbuilding specification changes or cost overruns; costs relating to projects; potential delays in the sale of Teekay Offshore's two conventional tankers; failure by Teekay Offshore to secure a contract for the Varg FPSO; delays in commencement of operations of FPSO and FSO units at designated fields; changes in the Company's expenses; factors affecting the outcome of Teekay LNG's dispute over the Magellan Spirit; factors affecting the resumption of the LNG plant in Yemen; the inability of Teekay LNG to collect the deferred charter payments from the Yemen LNG project; the Company and its publicly-traded subsidiaries' ability to raise adequate financing for existing growth projects, to refinance future debt maturities and for other financing requirements; the amount of future cash distributions by the Company's Daughter Entities to the Company, including any failure of the respective Board of Directors of the general partners of Teekay Offshore and Teekay LNG to approve future cash distribution increases; failure by the Company's Board of Directors to approve future dividend increases; Teekay Tankers actual dividend payout ratio determined by its Board of Directors; conditions in the United States capital markets; and other factors discussed in Teekay's filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2014 and Form 6-K for the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Contacts:
Ryan Hamilton
Investor Relations enquiries
+1 (604) 844-6654
www.teekay.com


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