UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the quarterly period ended February 28, 2011

Commission file number 1- 12874

TEEKAY CORPORATION

(Exact name of Registrant as specified in its charter)

4^th Floor, Belvedere Building
69 Pitts Bay Road
Hamilton, HM 08 Bermuda
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F þ            Form 40- F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).

Yes o            No þ

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).

Yes o            No þ

 

 

		TEEKAY CORPORATION 4th Floor, Belvedere Building, 69 Pitts Bay Road Hamilton, HM 08, Bermuda

EARNINGS RELEASE

TEEKAY CORPORATION
REPORTS FOURTH QUARTER AND ANNUAL RESULTS

Highlights

•		Fourth quarter 2010 cash flow from vessel operations of $157.3 million, up 22 percent from the same period of the prior year.
•		Fourth quarter 2010 adjusted net loss attributable to stockholders of Teekay of $37.8 million, or $0.51 per share (excluding specific items which increased GAAP net income by $123.7 million, or $1.67 per share).
•		Completed $520 million of asset sales to Teekay Offshore and Teekay Tankers during the fourth quarter.
•		In January 2011, offered to sell remaining 49 percent interest in Teekay Offshore Operating L.P. (OPCO) to Teekay Offshore.
•		Further reduced Teekay Parent’s net debt to $338 million as at December 31, 2010.
•		Total consolidated liquidity of $2.4 billion as at December 31, 2010.
•		As at February 23, 2011, 1.36 million ($44 million) of Teekay Corporation shares repurchased under existing $200 million authorization.

Hamilton, Bermuda, February 24, 2011 — Teekay Corporation (Teekay or the Company) (NYSE: TK) today reported an adjusted net loss attributable to stockholders of Teekay⁽¹⁾ of $37.8 million, or $0.51 per share, for the quarter ended December 31, 2010, compared to an adjusted net loss of $33.3 million, or $0.45 per share, attributable to the stockholders of Teekay for the same period of the prior year. Adjusted net loss attributable to stockholders of Teekay excludes a number of specific items that had the net effect of increasing GAAP net income by $123.7 million (or $1.67 per share) for the three months ended December 31, 2010 and increasing GAAP net income by $63.1 million (or $0.85 per share) for the three months ended December 31, 2009, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, net income attributable to the stockholders of Teekay of $85.9 million, or $1.16 per share, for the quarter ended December 31, 2010, compared to net income attributable to the stockholders of Teekay of $29.8 million, or $0.40 per share, for the same period of the prior year. Net revenues⁽²⁾ for the fourth quarter of 2010 were $444.3 million, compared to $453.8 million for the same period of the prior year.

For the year ended December 31, 2010, the Company reported an adjusted net loss attributable to stockholders of Teekay⁽¹⁾ of $121.0 million, or $1.67 per share, compared to adjusted net loss attributable to the stockholders of Teekay of $87.5 million, or $1.20 per share, for the year ended December 31, 2009. Adjusted net loss attributable to stockholders of Teekay excludes a number of specific items that had the net effect of increasing GAAP net loss by $146.2 million (or $2.00 per share) for the year ended December 31, 2010 and increasing GAAP net income by $215.9 million (or $2.96 per share) for the year ended December 31, 2009, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, net loss attributable to the stockholders of Teekay of $267.3 million, or $3.67 per share, for the year ended December 31, 2010, compared to net income attributable to the stockholders of Teekay of $128.4 million, or $1.76 per share, for the year ended December 31, 2009. Net revenues⁽²⁾ for the year ended December 31, 2010 were $1,823.8 million, compared to $1,878.0 million for the prior year.

On January 5, 2011, the Company declared a cash dividend on its common stock of $0.31625 per share for the quarter ended December 31, 2010. The cash dividend was paid on January 28, 2011, to all shareholders of record on January 14, 2011.

(1)

Adjusted net income (loss) attributable to stockholders of Teekay is a non-GAAP financial measure. Please refer to Appendix A to this release for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable financial measure under United States generally accepted accounting principles (GAAP).

(2)

Net revenues represents revenues less voyage expenses, which comprise all expenses relating to certain voyages, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. Net revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see the Company’s web site at www.teekay.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable financial measure under GAAP.

“Improved results in our offshore business more than offset the effect of the further weakening in spot tanker rates which characterized most of the fourth quarter,” commented Bjorn Moller, Teekay Corporation’s President and Chief Executive Officer. “Following the completion of seasonal maintenance in our FPSO and shuttle tanker fleets late in the third quarter, we saw a strong performance in all of our fixed-rate businesses, producing increased cash flow from vessel operations”. Mr. Moller continued, “Despite strong tanker demand, excess global tanker supply has prevented the normal seasonal rally in spot rates this winter, and, based on the sizeable number of deliveries scheduled this year, we expect further volatility in the spot tanker market throughout 2011.”

“In the current tanker market, our diversified, predominantly fixed-rate business model has proved to be a significant advantage. Looking back at 2010, we are pleased with the performance of our fixed-rate businesses, with over $660 million of fixed-rate cash flow from vessel operations generated, an 18 percent increase over the previous year,” said Mr. Moller. “Teekay’s strong operating reputation and project expertise continue to be a source of value creation. This is exemplified by the significant momentum we are seeing in our offshore business where the award of the Tiro Sidon FPSO contract in Brazil and the successful restructuring of certain major North Sea contracts are expected to drive continued growth in our base of fixed-rate cash flows. In addition, we have continued to manage our costs and reduce our exposure to the volatile spot tanker market through redelivery of in-charters, out-chartering of spot traded vessels and the sale of spot assets.”

Mr. Moller added, “Teekay enters 2011 financially strong, with net debt of only $338 million and liquidity of $1.2 billion at the parent company level. Our balance sheet strength and our generation of stable cash flows allow us to pursue selective growth opportunities through investments in offshore and other business areas that generate attractive returns. This ability is further enhanced by the proceeds we receive from the sale of assets to our daughter companies. As a result of our financial strength, we also found room to return capital to shareholders. Since November 2010, we have repurchased $44 million of our shares under our existing $200 million authorization.”

-more-

Operating Results

The following tables highlight certain financial information for each of Teekay’s four publicly-listed entities: Teekay Offshore Partners L.P. (Teekay Offshore) (NYSE: TOO), Teekay LNG Partners L.P. (Teekay LNG) (NYSE: TGP), Teekay Tankers Ltd. (Teekay Tankers) (NYSE: TNK) and Teekay, excluding results attributed to Teekay Offshore, Teekay LNG and Teekay Tankers, referred to herein as Teekay Parent. A brief description of each entity and an analysis of its respective financial results follow the tables below. Please also refer to the “Fleet List” section below and Appendix B to this release for further details.

		Three Months Ended December 31, 2010
		(unaudited)
		Teekay																				Teekay
		Offshore				Teekay LNG				Teekay				Teekay				Consolidation				Corporation
(in thousands of U.S. dollars)		Partners LP				Partners LP				Tankers Ltd.				Parent				Adjustments				Consolidated
Net revenues			203,112				96,831				29,615				157,323				(42,603	)			444,278
Vessel operating expense			77,344				20,545				11,383				56,378				—				165,650
Time-charter hire expense			20,981				—				—				79,531				(42,603	)			57,909
Depreciation and amortization			50,230				22,658				11,222				27,937				—				112,047
Cash flow from vessel operations(1)(2)			94,401				68,345				16,262				(21,674	)(3)			—				157,334
Net debt(4)			1,550,657				1,484,056				441,578				337,888				—				3,814,179

		Three Months Ended December 31, 2009
		(unaudited)
		Teekay																				Teekay
		Offshore				Teekay LNG				Teekay				Teekay				Consolidation				Corporation
(in thousands of U.S. dollars)		Partners LP				Partners LP				Tankers Ltd.				Parent				Adjustments				Consolidated
Net revenues			190,895				95,278				34,457				177,326				(44,137	)			453,819
Vessel operating expense			68,926				24,770				13,090				62,424				—				169,210
Time-charter hire expense			28,141				—				—				97,074				(44,137	)			81,078
Depreciation and amortization			48,769				22,294				11,722				32,535				—				115,320
Cash flow from vessel operations(1)(2)			73,230				59,730				14,528				(18,678	)(3)			—				128,810
Net debt(4)			1,573,867				1,419,252				294,796				877,705				—				4,165,620

-more-

Teekay Offshore Partners L.P.

Teekay Offshore is an international provider of marine transportation, oil production and storage services to the offshore oil industry. Through its 51 percent ownership interest in Teekay Offshore Operating L.P. (OPCO), Teekay Offshore operates a fleet of 34 shuttle tankers (including five chartered-in vessels and one newbuilding under construction), four floating storage and offtake (FSO) units and 11 conventional oil tankers. Teekay Offshore also has direct ownership interests in two shuttle tankers, two FSO units, and two floating, production, storage and offloading (FPSO) units, and has the right to participate in certain other FPSO and other vessel opportunities. As at December 31, 2010, Teekay Parent directly owned the remaining 49 percent interest in OPCO, as well as a 28.3 percent interest in Teekay Offshore (including the 2 percent sole general partner interest).

Cash flow from vessel operations from Teekay Offshore increased to $94.4 million in the fourth quarter of 2010, from $73.2 million in the same period of the prior year. This increase was primarily due to the acquisition from Teekay of the Cidade de Rio das Ostras FPSO unit and the acquisition of the Amundsen Spirit on October 1, 2010 (as described below), the acquisition of the Falcon Spirit FSO from Teekay Parent in April 2010, and higher voyage revenue from the commencement of the amended Statoil master agreement effective September 2010, partially offset by higher vessel operating expenses due to certain unscheduled repairs and the extension of seasonal repair activities from the previous quarter.

On October 1, 2010, Teekay Offshore completed the acquisition of the Cidade de Rio das Ostras FPSO unit from Teekay, which is on a long-term charter with Petroleo Brasileiro SA (Petrobras), for a purchase price of $157.8 million (excluding working capital). In addition, OPCO acquired on October 1, 2010 and December 10, 2010, respectively, the newbuilding shuttle tankers, the Amundsen Spirit and the Nansen Spirit, from Teekay for $129.0 million per vessel (excluding working capital). OPCO has also agreed to acquire the newbuilding shuttle tanker, the Peary Spirit, from Teekay for approximately $133 million upon the commencement of its time-charter contract in July 2011.

In November 2010, Teekay Offshore issued NOK 600 million in senior unsecured bonds that mature in November 2013 in the Norwegian bond market. The aggregate principal amount of the bonds have been swapped to U.S. dollars, to an equivalent amount of approximately $98.5 million, and all interest payments have been swapped into a U.S. dollar floating-rate coupon of LIBOR plus 5.04 percent. The proceeds from the bond issuance were used to repay a portion of Teekay Offshore’s outstanding debt under its revolving credit facilities.

During December 2010, Teekay Offshore completed a follow-on equity offering of 6.44 million common units, which provided net proceeds to the Partnership of $175.2 million (including 840,000 units from the underwriters’ over-allotment option exercised in full and the general partner’s contribution). The net proceeds from the offering were applied towards repaying a portion of outstanding debt under the Partnership’s revolving credit facilities, which may be later redrawn for general partnership purposes, including funding acquisitions.

In January 2011, Teekay Offshore received an offer to acquire from Teekay the remaining 49 percent interest in OPCO for a combination of $175 million in cash and the remainder in the form of new Teekay Offshore limited partner and general partner units. The offer is currently being reviewed by the Board of Directors of Teekay Offshore’s general partner and its Conflicts Committee. If concluded, the acquisition will increase Teekay Offshore’s ownership of OPCO to 100 percent. Teekay Offshore does not expect to issue additional common units to the public to finance this transaction.

For the fourth quarter of 2010, Teekay Offshore’s quarterly distribution was $0.475 per unit. As a result, the cash distribution received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay Offshore totaled $8.5 million for the fourth quarter of 2010, as detailed in Appendix D to this release.

Teekay LNG Partners L.P.

Teekay LNG provides liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil marine transportation services under long-term, fixed-rate charter contracts with major energy and utility companies through its current fleet of 17 LNG carriers, two LPG carriers and 11 conventional tankers. In addition, Teekay LNG has agreed to take delivery of one newbuilding LPG carrier from a subsidiary of IM Skaugen (Skaugen) and two newbuilding LPG/Multigas carriers from Teekay Parent in 2011. Teekay Parent currently owns a 46.8 percent interest in Teekay LNG (including the two percent sole general partner interest).

-more-

Cash flow from vessel operations from Teekay LNG during the fourth quarter of 2010, increased to $68.3 million from $59.7 million in the same period of the prior year. This increase was primarily due to the acquisition of two Suezmax tankers and one Handymax Product tanker from Teekay Parent, higher profit sharing revenue of $1.7 million from certain of Teekay LNG’s Suezmax vessels, and lower vessel operating expenses in the fourth quarter of 2010 due to the timing of certain maintenance expenditures.

In November 2010, Teekay LNG acquired a 50 percent interest in the 2005-built Excelsior, a specialized gas carrier which can both transport and regasify LNG onboard, and a 50 percent interest in the 2002-built Excalibur, a conventional LNG carrier, from Belgium-based shipping group Exmar NV for a total purchase price of approximately $72.5 million net of assumed debt. Both vessels are on long-term, fixed-rate charter contracts to Excelerate Energy L.P., a leading provider of LNG offshore solutions, for firm periods until 2022 and 2025, respectively.

In November 2010, Teekay LNG sold the 2000-built LPG carrier Dania Spirit to a third party for proceeds of $21.5 million, which resulted in a gain of approximately $4.3 million.

In February 2011, Teekay LNG received an offer from Teekay to acquire its one-third interest in four Angola LNG newbuildings, which will be chartered-out to a consortium which includes subsidiaries of Chevron, Sonangol, BP, Total and ENI for a period of 20 years upon their delivery in 2011 and 2012. The offer is currently being reviewed by the Board of Directors of Teekay LNG’s general partner and its Conflicts Committee.

For the fourth quarter of 2010, Teekay LNG’s quarterly distribution increased by five percent to $0.63 per unit. As a result, the cash distribution received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay LNG totaled $18.8 million for the fourth quarter of 2010, as detailed in Appendix D to this release.

Teekay Tankers Ltd.

Teekay Tankers currently owns a fleet of nine Aframax tankers and six Suezmax tankers. In addition, Teekay Tankers owns a 50 percent interest in a VLCC newbuilding and has invested $115 million in 3-year first priority mortgage loans secured by two VLCC newbuildings which yield an average of 10 percent per annum. Nine of the 15 vessels are currently employed on fixed-rate time charters, generally ranging from one to three years in initial duration, with the remaining vessels trading in Teekay’s spot tanker pools. Based on the existing fleet employment profile, Teekay Tankers has fixed-rate coverage of approximately 57 percent in 2011. Teekay Parent currently owns a 26.0 percent interest in Teekay Tankers (including 100 percent of the outstanding Class B common shares, which with its current ownership of Class A common shares, provides Teekay voting control of Teekay Tankers).

Cash flow from vessel operations from Teekay Tankers increased to $16.3 million in the fourth quarter of 2010, from $14.5 million in the same period of the prior year, primarily due to an increase in Teekay Tankers’ average fleet size and the interest income from its investment in the VLCC mortgage loans, partially offset by lower average realized tanker rates for its time-charter and spot fleets during the fourth quarter, compared to the same period of the prior year.

In October 2010, Teekay Tankers completed an equity offering of 8.6 million Class A common shares (including 395,000 Class A common shares issued upon the exercise of the underwriters’ over-allotment option), raising net proceeds of approximately $100 million.

In November 2010, Teekay Tankers acquired from Teekay Parent one Aframax tanker, the Esther Spirit, and one Suezmax tanker, the Iskmati Spirit, for a total price of $107.5 million.

In February 2011, Teekay Tankers completed an equity offering of 9.9 million Class A common shares (including 1.3 million shares issued upon the exercise of the underwriters’ over-allotment option in full), raising net proceeds of approximately $107 million. Proceeds were used to repay amounts drawn under Teekay Tankers’ revolving credit facility and may be redrawn to complete future vessel acquisitions.

On February 23, 2011, Teekay Tankers declared a fourth quarter 2010 dividend of $0.22 per share payable on March 15, 2011 to all shareholders of record on March 8, 2011. As a result, based on its ownership of Teekay Tankers Class A and Class B shares, the dividend amount payable to Teekay Parent will total $3.5 million for the fourth quarter of 2010.

-more-

Teekay Parent

In addition to its equity ownership interests in Teekay Offshore, Teekay LNG and Teekay Tankers, Teekay Parent directly owns a substantial fleet of vessels. As at February 1, 2011, this included 17 conventional tankers and three FPSO units. In addition, Teekay Parent owns one FPSO, two Aframax shuttle tanker newbuildings, and a 33 percent interest in four newbuilding LNG carriers, all of which are currently under construction or conversion. In addition, as at February 1, 2011, Teekay Parent had 29 chartered-in conventional tankers (including nine vessels owned by its subsidiaries), two chartered-in LNG carriers owned by Teekay LNG and two chartered-in shuttle tankers owned by OPCO.

For the fourth quarter of 2010, Teekay Parent’s negative cash flow from vessel operations was $21.7 million, compared to negative cash flow from vessel operations of $18.7 million in the same period of the prior year. The decrease in cash flow is primarily due to the sale of the Cidade de Rio das Ostras FPSO unit to Teekay Offshore in October 2010, two Suezmax tankers and one Handymax Product tanker to Teekay LNG in March 2010, two Suezmax tankers and one Aframax tanker to Teekay Tankers in April and May 2010, the sale of one Aframax tanker and one Suezmax tanker to Teekay Tankers in November 2010 and a decrease in average realized spot tanker rates for the fourth quarter of 2010 compared to the fourth quarter of 2009. These factors were partially offset by higher revenues relating to the Petrojarl Foinaven FPSO contract amendment in March 2010 and a $17.5 million decrease in time-charter hire expense in the fourth quarter of 2010 compared to the same period of the prior year.

During the fourth quarter of 2010, Teekay Parent sold the Cidade de Rio das Ostras FPSO unit to Teekay Offshore and the Amundsen Spirit and Nansen Spirit shuttle tanker newbuildings to OPCO for total proceeds of approximately $416 million. Teekay Offshore also agreed to acquire an additional newbuilding shuttle tanker, the Peary Spirit, for approximately $133 million upon the commencement of its time-charter contract in July 2011.

In October 2010, Teekay Parent announced that it had signed a long-term contract with Petrobras to provide a FPSO unit for the Tiro and Sidon fields located in the Santos Basin offshore Brazil. The contract with Petrobras will be serviced by a newly converted FPSO unit, named the Petrojarl Cidade de Itajai, which is currently under conversion from an existing Aframax tanker. The converted FPSO is scheduled to deliver in the second quarter of 2012, when it will commence operations under a nine-year, fixed-rate time-charter contract to Petrobras with six additional one-year extension options. Pursuant to the omnibus agreement, Teekay Parent is obligated to offer to Teekay Offshore its interest in this FPSO unit at Teekay Parent’s fully built-up cost within 365 days after the commencement of its charter with Petrobras.

In November 2010, Teekay Parent sold one Aframax tanker, the Esther Spirit, and one Suezmax tanker, the Iskmati Spirit, to Teekay Tankers for a total price of $107.5 million.

On February 22, 2011, Teekay Parent agreed to invest $70 million in a 3-year first priority mortgage loan secured by a 2011-built Very Large Crude Carrier (VLCC) owned by an Asia-based shipping company. The loan will earn an interest rate of 9 percent per annum.

Tanker Market

Average crude tanker freight rates during the fourth quarter of 2010 remained weak, despite relatively strong tanker demand. This was primarily the result of an oversupply of vessels, caused by a net fleet growth during 2010 and compounded by the return of vessels previously used for temporary floating storage. This imbalance between tanker supply and demand prevented the typical winter rally in rates from occurring, although a short-lived strengthening of rates was experienced towards the end of the quarter when cold winter weather in Europe and North America led to an increase in both oil demand and weather related transit delays. In the first quarter of 2011 to date, tanker rates have remained at relatively weak levels. Rising bunker fuel prices during the fourth quarter of 2010 and continuing into 2011 have adversely impacted spot tanker earnings.

During 2010, the world tanker fleet grew by 19.7 million deadweight tones (mdwt), or approximately 4.6 percent, compared to 28.8 mdwt, or 7.1 percent, in 2009. A total of 41.2 mdwt of new vessel capacity was delivered into the fleet, offset by tanker removals which increased to 21.4 mdwt in 2010, the highest annual figure since 2003, primarily due to the regulatory phase-out of single hull tankers and the conversion of tankers for use in dry bulk or offshore projects. The tanker delivery schedule for 2011 is similar to 2010. However, with the phase-out of single hull tankers now largely complete, the scope for scrapping in 2011 is expected to focus on first generation double hull tankers, which face increasing age discrimination from customers.

-more-

Global oil demand in 2010 grew by 2.8 million barrels per day (mb/d), or 3.3 percent, the highest figure since 2004. As a result, 2010 tanker demand is estimated to have grown by approximately 7 percent. In January 2011, the International Monetary Fund (IMF) raised its forecast for 2011 global economic growth to 4.4 percent, up from 4.2 percent previously, based on strength in developing and emerging economies. As a result, the International Energy Agency (IEA) has raised its global oil demand forecast for 2011 to 89.3 mb/d, an increase of 1.5 mb/d, or 1.7 percent, from 2010.

Teekay Parent Conventional Tanker Fleet Performance

The table below highlights the operating performance of Teekay Parent’s owned and in-chartered conventional tankers participating in the Company’s commercial tonnage pools and vessels on period out-charters with an initial term greater than one year, measured in net revenues per revenue day or time-charter equivalent (TCE) rates. Revenue days represent the total number of vessel calendar days less off-hire days associated with major repairs, drydockings, or mandated surveys.

		Three Months Ended
		December 31,				September 30,				December 31,
		2010				2010				2009
Suezmax
Gemini Suezmax Pool average spot TCE rate (1)		$	15,564			$	18,676			$	21,109
Spot revenue days (2)(3)			398				461				903
Average time-charter rate (4)(5)		$	24,620			$	29,145			$	30,947
Time-charter revenue days (3)(4)			736				736				735
Aframax
Teekay Aframax Pool average spot TCE rate (1)(6)(7)		$	12,659			$	13,770			$	13,963
Spot revenue days (2)(3)			1,324				1,223				1,962
Average time-charter rate (5)		$	22,944			$	22,858			$	26,282
Time-charter revenue days (3)			889				1,084				1,085
LR2
Taurus LR2 Pool average spot TCE rate (1)		$	13,867			$	15,451			$	15,448
Spot revenue days (2)(3)			394				368				368
MR
MR product tanker average spot TCE rate (1)			—				—			$	9,746
Spot revenue days (2)(3)			—				—				108
Average product tanker time-charter rate (5)		$	25,632			$	28,269			$	26,287
Time-charter revenue days (3)			237				315				465

-more-

Fleet List

As at February 1, 2011, Teekay’s consolidated fleet consisted of 150 vessels, including chartered-in vessels and newbuildings under construction/conversion, but excluding vessels managed for third parties, as summarized in the following table:

		Number of Vessels(1)
		Owned				Chartered-in				Newbuildings /
		Vessels				Vessels				Conversions				Total
Teekay Parent Fleet(2)
Spot-rate:
Aframax Tankers(3)			—				9				—				9
Suezmax Tankers			5				3				—				8
LR2 Product Tankers			3				1				—				4
Total Teekay Parent Spot Fleet			8				13				—				21
Fixed-rate:
Aframax Tankers(3)			3				5				—				8
Suezmax Tankers			3				1				—				4
VLCC Tankers			—				1				—				1
MR Product Tankers			3				—				—				3
LNG Carriers(4)			—				—				4				4
Shuttle Tankers(5)			—				—				1				1
FPSO Units			3				—				1				4
Total Teekay Parent Fixed-rate Fleet			12				7				6				25
Total Teekay Parent Fleet			20				20				6				46
Teekay Offshore Fleet			49				5				1				55
Teekay LNG Fleet			30				—				3				33
Teekay Tankers Fleet			15				—				1				16
Total Teekay Consolidated Fleet			114				25				11				150

-more-

Liquidity and Capital Expenditures

As at December 31, 2010, Teekay had consolidated liquidity of $2.4 billion, consisting of $779.7 million cash and approximately $1.6 billion of undrawn revolving credit facilities, of which $1.2 billion, consisting of $519.7 million cash and $701.8 million of undrawn revolving credit facilities, is attributable to Teekay Parent. Including pre-arranged newbuilding financing, Teekay’s total consolidated liquidity was approximately $2.9 billion.

The Company’s remaining capital commitments relating to its portion of newbuildings and conversions were as follows as at December 31, 2010:

(in millions)		2011				2012				2013				2014				Total
Teekay Offshore		$	92				—				—				—			$	92
Teekay LNG		$	34				—				—				—			$	34
Teekay Tankers			—			$	20			$	20				—			$	40
Teekay Parent		$	493			$	108				—				—			$	601
Total Teekay Corporation Consolidated		$	619			$	128			$	20				—			$	767

As indicated above, the Company had total capital expenditure commitments pertaining to newbuildings and conversions of approximately $767 million remaining as at December 31, 2010, with pre-arranged financing for approximately $452 million of this amount. The Company expects to obtain debt financing for the Petrojarl Cidade de Itajai FPSO and the VLCC newbuilding through Teekay Tankers’ joint venture with Wah Kwong.

Share Repurchase Program

In October 2010, the Company announced its intention to commence repurchasing shares under the Company’s $200 million share repurchase authorization. As of February 23, 2011, the Company had repurchased 1.36 million shares under the Company’s existing authorization representing a total cost of $44 million. Shares will be repurchased in the open market at times and prices considered appropriate by the Company. The timing of any purchase and the exact number of shares to be purchased will be dependant on market conditions.

Conference Call

The Company plans to host a conference call on February 24, 2011 at 11:00 a.m. (ET) to discuss its results for the fourth quarter and fiscal 2011. An accompanying investor presentation will be available on Teekay’s Web site 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) 322-2356 or (416) 640-5926, if outside North America, and quoting conference ID code 4073995.
•		By accessing the webcast, which will be available on Teekay’s Web site at www.teekay.com (the archive will remain on the Web site for a period of 30 days).

The conference call will be recorded and available until Friday, March 4, 2011. 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 4073995.

-more-

About Teekay

Teekay Corporation transports more than 10 percent of the world’s seaborne oil, has built a significant presence in the liquefied natural gas shipping sector through its publicly-listed subsidiary, Teekay LNG Partners L.P. (NYSE: TGP), is further growing its operations in the offshore oil production, storage and transportation sector through its publicly-listed subsidiary, Teekay Offshore Partners L.P. (NYSE: TOO), and continues to expand its conventional tanker business through its publicly-listed subsidiary, Teekay Tankers Ltd. (NYSE: TNK). With a fleet of approximately 150 vessels, offices in 16 countries and approximately 6,400 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world’s leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. Teekay’s reputation for safety, quality and innovation has earned it a position with its customers as The Marine Midstream Company.

Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.

For Investor Relations enquiries contact:
Kent Alekson
Tel: +1 (604) 844-6654

Web site: www.teekay.com

-more-

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 31,				September 30,				December 31,				December 31,				December 31,
		2010				2010				2009				2010				2009
		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
REVENUES(1)			497,276				462,117				522,657				2,068,878				2,172,049
OPERATING EXPENSES
Voyage expenses			52,998				53,719				68,838				245,097				294,091
Vessel operating expenses(1)(2)(3)			165,650				159,570				169,210				630,547				615,764
Time-charter hire expense			57,909				62,188				81,078				259,117				429,321
Depreciation and amortization			112,047				109,194				115,320				440,705				437,176
General and administrative(1)(2)(3)			48,486				46,910				52,018				193,743				198,836
Asset impairments/net loss on vessel sales			24,195				24,173				21,839				49,150				12,629
Restructuring charges			5,178				3,240				2,427				16,396				14,444
			466,463				458,994				510,730				1,834,755				2,002,261
Income from vessel operations			30,813				3,123				11,927				234,123				169,788
OTHER ITEMS
Interest expense(1)			(35,177	)			(34,852	)			(29,943	)			(136,107	)			(141,448	)
Interest income			3,050				3,466				4,105				12,999				19,999
Realized and unrealized gain (loss) on derivative instruments(1)			140,715				(133,241	)			56,980				(299,598	)			140,046
Income tax recovery (expense)			2,458				(8,571	)			(10,715	)			6,340				(22,889	)
Equity income (loss) from joint ventures(1)			29,246				(16,010	)			22,385				(11,257	)			52,242
Foreign exchange gain (loss)			4,186				(28,717	)			18,978				31,983				(20,922	)
Other income (loss) — net			2,323				2,042				3,542				(5,118	)			12,961
Net income (loss)			177,614				(212,760	)			77,259				(166,635	)			209,777
Less: Net (income) loss attributable to non-controlling interests			(91,707	)			26,717				(47,463	)			(100,652	)			(81,365	)
Net income (loss) attributable to stockholders of Teekay Corporation			85,907				(186,043	)			29,796				(267,287	)			128,412
Earnings (loss) per common share of Teekay
- Basic		$	1.18				($2.55	)		$	0.41				($3.67	)		$	1.77
- Diluted		$	1.16				($2.55	)		$	0.40				($3.67	)		$	1.76
Weighted-average number of
common shares outstanding
- Basic			72,717,002				72,982,870				72,590,677				72,862,617				72,549,361
- Diluted			74,076,588				72,982,870				73,599,706				72,862,617				73,058,831

-more-

		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2010				2010				2009				2010				2009
Realized (losses) gains relating to:
Interest rate swaps			(37,681	)			(37,197	)			(36,199	)			(154,098	)			(127,936	)
Foreign currency forward contracts
Vessel operating expenses			(654	)			(818	)			(136	)			(2,866	)			(6,826	)
General and administrative expenses			543				—				78				592				(2,158	)
Bunkers, FFAs and other			(6,558	)			3,000				(5,953	)			(7,914	)			(1,293	)
			(44,350	)			(35,015	)			(42,210	)			(164,286	)			(138,213	)
Unrealized gains (losses) relating to:
Interest rate swaps			179,103				(116,045	)			94,377				(146,780	)			258,710
Foreign currency forward contracts			523				17,837				(430	)			6,307				14,797
Bunkers, FFAs and other			5,439				(18	)			5,243				5,161				4,752
			185,065				(98,226	)			99,190				(135,312	)			278,259
Total realized and unrealized gains (losses) on non-designated derivative instruments			140,715				(133,241	)			56,980				(299,598	)			140,046

		In addition, equity income (loss) from joint ventures includes net unrealized gains (losses) from non-designated interest rate swaps held within the joint ventures of $23.4 million, $(24.6) million and $(10.2) million for the three months ended December 31, 2010, September 30, 2010, and December 31, 2009, respectively, and $(24.7) million and $32.4 million for the year ended December 31, 2010 and December 31, 2009, respectively.
(2)		The Company has entered into foreign currency forward contracts, which are economic hedges of vessel operating expenses and general and administrative expenses. Certain of these forward contracts have been designated as cash flow hedges pursuant to GAAP. Unrealized gains (losses) arising from hedge ineffectiveness from such forward contracts are reflected in vessel operating expenses and general and administrative expenses in the above Summary Consolidated Statements of Income (Loss), as detailed in the table below:

		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2010				2010				2009				2010				2009
Vessel operating expenses			(52	)			94				(520	)			(3,473	)			9,155
General and administrative			(162	)			496				(544	)			(1,402	)			5,760

-more-

TEEKAY CORPORATION
SUMMARY CONSOLIDATED BALANCE SHEET
(in thousands of U.S. dollars)

		As at December 31,				As at September 30,				As at December 31
		2010				2010				2009
		(unaudited)				(unaudited)				(unaudited)
ASSETS
Cash and cash equivalents			779,748				692,454				422,510
Other current assets			341,776				295,663				333,926
Restricted cash — current			86,559				37,639				36,068
Restricted cash — long-term			489,712				646,580				579,243
Vessels held for sale			—				—				10,250
Vessels and equipment			6,573,388				6,557,992				6,697,385
Advances on newbuilding contracts /conversions			197,988				167,386				138,212
Derivative assets			83,198				135,469				48,115
Investment in joint ventures			207,633				125,674				139,790
Investment in direct financing leases			487,516				495,646				512,412
Investment in term loans			116,014				115,775				—
Other assets			188,482				167,845				182,460
Intangible assets			155,893				181,007				213,870
Goodwill			203,191				203,191				203,191
Total Assets			9,911,098				9,822,321				9,517,432
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities			422,109				360,780				365,364
Other current liabilities			59				44				1,294
Current portion of long-term debt			543,890				348,148				272,225
Long-term debt			4,626,308				4,885,229				4,931,216
Derivative liabilities			531,235				773,327				359,479
In process revenue contracts			196,106				207,965				244,360
Other long-term liabilities			217,658				250,370				247,824
Redeemable non-controlling interest			41,725				43,330				—
Equity:
Non-controlling interests			1,353,561				1,052,626				855,580
Stockholders of Teekay			1,978,447				1,900,502				2,240,090
Total Liabilities and Equity			9,911,098				9,822,321				9,517,432

-more-

TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)

		Year Ended
		December 31
		2010				2009
		(unaudited)				(unaudited)
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
Net operating cash flow			411,750				368,251
FINANCING ACTIVITIES
Net proceeds from long-term debt			1,756,453				1,182,941
Scheduled repayments of long-term debt			(250,218	)			(217,703	)
Prepayments of long-term debt			(1,536,587	)			(1,583,852	)
Decrease in restricted cash			30,291				38,953
Repurchase of common stock			(40,111	)			—
Net proceeds from public offerings of Teekay LNG			85,225				158,996
Net proceeds from public offerings of Teekay Offshore			392,944				102,009
Net proceeds from public offerings of Teekay Tankers			202,698				65,556
Cash dividends paid			(92,695	)			(91,747	)
Distribution from subsidiaries to non-controlling interests			(159,808	)			(109,942	)
Other			5,735				2,007
Net financing cash flow			393,927				(452,782	)
INVESTING ACTIVITIES
Expenditures for vessels and equipment			(343,091	)			(495,214	)
Proceeds from sale of vessels and equipment			70,958				219,834
Investment in term loans			(115,575	)			—
Loans to joint ventures			(5,447	)			(1,369	)
Other			(55,284	)			(30,375	)
Net investing cash flow			(448,439	)			(307,124	)
Increase (decrease) in cash and cash equivalents			357,238				(391,655	)
Cash and cash equivalents, beginning of the year			422,510				814,165
Cash and cash equivalents, end of the year			779,748				422,510

-more-

TEEKAY CORPORATION
APPENDIX A — SPECIFIC ITEMS AFFECTING NET INCOME (LOSS)
(in thousands of U.S. dollars, except per share data)

Set forth below is a reconciliation of the Company’s unaudited adjusted net (loss) income attributable to the stockholders of Teekay, a non-GAAP financial measure, to net income (loss) attributable to stockholders of Teekay as determined in accordance with GAAP. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company’s financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Company’s financial results. Adjusted net (loss) income attributable to the stockholders of Teekay is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.

		Three Months Ended								Year Ended
		December 31, 2010								December 31, 2010
		(unaudited)								(unaudited)
						$ Per								$ Per
		$				Share (1)				$				Share (1)
Net income (loss) — GAAP basis			177,614								(166,635	)
Adjust for: Net income attributable to non-controlling interests			(91,707	)							(100,652	)
Net income (loss) attributable to stockholders of Teekay			85,907				1.16				(267,287	)			(3.67)
Add (subtract) specific items affecting net income (loss):
Unrealized (gains) losses from derivative instruments (2)			(208,271	)			(2.82	)			164,854				2.26
Foreign currency exchange gains (3)			(4,186	)			(0.06	)			(31,983	)			(0.44	)
Deferred income tax expense on unrealized foreign exchange gains			1,178				0.02				146				—
Restructuring charges (4)			5,178				0.07				16,396				0.23
Asset impairments/net loss on vessel sales			24,195				0.33				49,150				0.67
Adjustments to pension accruals(5)			(3,723	)			(0.05	)			(3,723	)			(0.05	)
Retroactive component of revenue recognized from contract amendment(6)			—				—				(59,200	)			(0.81	)
Loss on bond repurchases (8.875 percent notes due 2011)			—				—				12,645				0.17
Adjustments to carrying value of certain capitalized drydocking expenditures			—				—				7,092				0.10
Non-recurring adjustments to tax accruals			(2,500	)			(0.03	)			2,415				0.02
Other — net (7)			1,812				0.02				2,551				0.04
Non-controlling interests’ share of items above			62,607				0.85				(14,104	)			(0.19	)
Total adjustments			(123,710	)			(1.67	)			146,239				2.00
Adjusted net loss attributable to stockholders of Teekay			(37,803	)			(0.51)				(121,048	)			(1.67)

-more-

TEEKAY CORPORATION
APPENDIX A — SPECIFIC ITEMS AFFECTING NET INCOME (LOSS)

(in thousands of U.S. dollars, except per share data)

Set forth below is a reconciliation of the Company’s unaudited adjusted net (loss) income attributable to the stockholders of Teekay, a non-GAAP financial measure, to net income (loss) attributable to stockholders of Teekay as determined in accordance with GAAP. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company’s financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Company’s financial results. Adjusted net (loss) income attributable to the stockholders of Teekay is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.

		Three Months Ended								Year Ended
		December 31, 2009								December 31, 2009
		(unaudited)								(unaudited)
						$ Per								$ Per
		$				Share(1)				$				Share(1)
Net income — GAAP basis			77,259								209,777
Adjust for: Net income attributable to non-controlling interests			(47,463	)							(81,365	)
Net income attributable to stockholders of Teekay			29,796				0.40				128,412				1.76
Add (subtract) specific items affecting net income:
Unrealized gains from derivative instruments (2)			(109,908	)			(1.49	)			(328,029	)			(4.49	)
Foreign currency exchange (gains) losses (3)			(18,978	)			(0.26	)			20,922				0.29
Asset impairments/net loss on vessel sales(4)			28,008				0.38				18,798				0.26
Non-recurring adjustments to tax accruals and deferred income tax expense on unrealized foreign exchange gains			19,625				0.27				46,037				0.62
Non-recurring adjustments to recognition of unearned revenue related to direct financing leases			(15,442	)			(0.20	)			(15,442	)			(0.20	)
Restructuring charges(5)			2,427				0.03				14,444				0.20
Other(6)			7,411				0.10				14,230				0.18
Non-controlling interests’ share of items above			23,804				0.32				13,144				0.18
Total adjustments			(63,053	)			(0.85	)			(215,896	)			(2.96	)
Adjusted net loss attributable to stockholders of Teekay			(33,257	)			(0.45	)			(87,484	)			(1.20	)

-more-

TEEKAY CORPORATION
APPENDIX B — SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY BALANCE SHEET AS AT DECEMBER 31, 2010
(in thousands of U.S. dollars)
(unaudited)

		Teekay				Teekay				Teekay				Teekay				Consolidation
		Offshore				LNG				Tankers				Parent				Adjustments				Total
ASSETS
Cash and cash equivalents			166,483				81,055				12,450				519,760				—				779,748
Other current assets			96,021				25,273				13,230				207,252				—				341,776
Restricted cash (current & non-current)			—				572,138				—				4,133				—				576,271
Vessels and equipment			2,247,323				1,940,041				757,437				1,628,587				—				6,573,388
Advances on newbuilding contracts/conversions			52,184				79,535				—				66,269				—				197,988
Derivative assets			11,382				62,283				—				9,533				—				83,198
Investment in joint ventures			—				172,898				24				34,711				—				207,633
Investment in direct financing leases			71,570				415,695				—				251				—				487,516
Investment in term loans			—				—				116,014				—				—				116,014
Other assets			22,652				33,167				14,566				118,097				—				188,482
Advances to affiliates			19,135				6,133				9,486				(34,754	)			—				—
Equity investment in subsidiaries			—				—				—				731,774				(731,774	)			—
Intangibles and goodwill			155,876				159,177				13,310				30,721				—				359,084
TOTAL ASSETS			2,842,626				3,547,395				936,517				3,316,334				(731,774	)			9,911,098
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities			101,287				56,971				12,101				251,750				—				422,109
Other current liabilities			—				—				—				59				—				59
Advances from affiliates			67,390				133,410				5,841				(206,641	)			—				—
Current portion of long-term debt			152,096				343,790				1,800				46,204				—				543,890
Long-term debt			1,565,044				1,793,459				452,228				815,577				—				4,626,308
Derivative liabilities			165,284				199,965				18,848				147,138				—				531,235
In-process revenue contracts			—				—				392				195,714				—				196,106
Other long-term liabilities			21,351				106,477				2,619				87,211				—				217,658
Redeemable non-controlling interest			41,725				—				—				—				—				41,725
Equity:
Non-controlling interests (1)			44,863				9,149				—				875				1,298,674				1,353,561
Equity attributable to stockholders/ unitholders of publicly-listed entities			683,586				904,174				442,688				1,978,447				(2,030,448	)			1,978,447
TOTAL LIABILITIES AND EQUITY			2,842,626				3,547,395				936,517				3,316,334				(731,774	)			9,911,098
NET DEBT (2)			1,550,657				1,484,056				441,578				337,888				—				3,814,179

-more-

TEEKAY CORPORATION
APPENDIX B — SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENT OF INCOME FOR THE THREE MONTHS ENDED DECEMBER 31, 2010
(in thousands of U.S. dollars)
(unaudited)

		Teekay				Teekay				Teekay				Teekay				Consolidation
		Offshore				LNG				Tankers				Parent				Adjustments				Total
Revenues			229,263				97,516				30,160				188,342				(48,005	)			497,276
Voyage expenses			26,151				685				545				31,019				(5,402	)			52,998
Vessel operating expenses			77,344				20,545				11,383				56,378				—				165,650
Time-charter hire expense			20,981				—				—				79,531				(42,603	)			57,909
Depreciation and amortization			50,230				22,658				11,222				27,937				—				112,047
General and administrative			13,394				7,566				1,867				25,659				—				48,486
Asset impairments/net loss (gain) on vessel sales			9,441				(4,340	)			—				19,094				—				24,195
Restructuring charges			—				—				—				5,178				—				5,178
Total operating expenses			197,541				47,114				25,017				244,796				(48,005	)			466,463
Income (loss) from vessel operations			31,722				50,402				5,143				(56,454	)			—				30,813
Net interest expense			(8,353	)			(10,412	)			(1,622	)			(11,740	)			—				(32,127	)
Realized and unrealized gain on derivative instruments			63,863				27,064				4,404				45,384				—				140,715
Income tax recovery (expense)			1,133				(1,524	)			185				2,664				—				2,458
Equity income from joint ventures			—				10,526				—				18,720				—				29,246
Equity income of subsidiaries(1)			—				—				—				89,139				(89,139	)			—
Foreign exchange (loss) gain			(348	)			7,528				(25	)			(2,969	)			—				4,186
Other — net			1,296				89				(312	)			1,250				—				2,323
Net income			89,313				83,673				7,773				85,994				(89,139	)			177,614
Less: Net (income) loss attributable to non-controlling interests(2)			(4,376	)			7,109				—				(87	)			(94,353	)			(91,707	)
Net income attributable to stockholders/unitholders of publicly-listed entities			84,937				90,782				7,773				85,907				(183,492	)			85,907
CASH FLOW FROM VESSEL OPERATIONS(3)			94,401				68,345				16,262				(21,674	)(4)			—				157,334