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

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 SECOND QUARTER RESULTS

Highlights

•

Second quarter 2011 cash flow from vessel operations of $148.8 million.

•

Second quarter 2011 adjusted net loss attributable to stockholders of Teekay of $36.3 million, or $0.51 per share (excluding specific items which increased GAAP net loss by $60.2 million, or $0.85 per share).

•

In June 2011, Teekay Corporation was awarded a new long-term FPSO contract for the Knarr field in the North Sea, scheduled to commence in early 2014.

•

Total consolidated liquidity of $1.9 billion as at June 30, 2011, of which $850 million was at Teekay Parent.

•

As at August 10, 2011, 4.4 million ($144 million) of Teekay Corporation shares repurchased under existing $200 million authorization.

Hamilton, Bermuda, August 11, 2011 — Teekay Corporation (Teekay or the Company) (NYSE: TK) today reported an adjusted net loss attributable to stockholders of Teekay⁽¹⁾ of $36.3 million, or $0.51 per share, for the quarter ended June 30, 2011, compared to an adjusted net loss attributable to the stockholders of Teekay of $26.1 million, or $0.36 per share, 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 loss by $60.2 million (or $0.85 per share) for the three months ended June 30, 2011 and increasing GAAP net loss by $127.1 million (or $1.74 per share) for the three months ended June 30, 2010, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, a net loss attributable to the stockholders of Teekay of $96.5 million, or $1.36 per share, for the quarter ended June 30, 2011, compared to net loss attributable to the stockholders of Teekay of $153.1 million, or $2.10 per share, for the same period of the prior year. Net revenues⁽²⁾ for the second quarter of 2011 were $433.0 million, compared to $485.9 million for the same period of the prior year.

For the six months ended June 30, 2011, the Company reported an adjusted net loss attributable to stockholders of Teekay⁽¹⁾ of $64.1 million, or $0.90 per share, compared to adjusted net loss attributable to the stockholders of Teekay of $30.0 million, or $0.41 per share, for the six months ended June 30, 2010. 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 $62.0 million (or $0.87 per share) for the six months ended June 30, 2011 and increasing GAAP net loss by $137.2 million (or $1.88 per share) for the six months ended June 30, 2010, 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 $126.1 million, or $1.77 per share, for the six months ended June 30, 2011, compared to net loss attributable to the stockholders of Teekay of $167.2 million, or $2.29 per share, for the six months ended June 30, 2010. Net revenues⁽²⁾ for the six months ended June 30, 2011 were $875.9 million, compared to $986.2 million for the same period of the prior year.

On July 5, 2011, the Company declared a cash dividend on its common stock of $0.31625 per share for the quarter ended June 30, 2011. The cash dividend was paid on July 29, 2011, to all shareholders of record on July 15, 2011.

“We successfully concluded two of our business development projects in the second quarter, signing important contracts in both our FPSO and shuttle tanker businesses,” commented Peter Evensen, Teekay Corporation’s President and Chief Executive Officer. “In June, we entered into a new FPSO contract with BG Group plc to service the Knarr oil and gas field in the North Sea, commencing in early 2014, and our daughter company Teekay Offshore Partners entered into a new shuttle tanker contract with another subsidiary of BG in Brazil to charter four newbuilding shuttle tankers, beginning in mid- to late-2013.”

“Teekay’s diversified business model continues to be an important source of differentiation and fixed-rate cash flows, with the two new FPSO and shuttle contracts together adding approximately $2.7 billion of forward fixed-rate revenues to our existing portfolio of approximately $12 billion of forward fixed-rate revenues,” Mr. Evensen continued. “In addition to the attractive near- and long-term opportunities in our offshore business, we have also benefited from a strengthening market and enhanced project activity in the LNG sector. During the second quarter, the increased level of LNG shipping demand enabled us to secure new short-term charters for two of our smaller LNG carriers, the Arctic Spirit and Polar Spirit, at attractive rates and we have been actively pursuing new project opportunities in both LNG transportation and floating regasification. With the pace of tanker supply growth acting as a drag on spot tanker rates, Teekay Parent continued to reduce its exposure to the spot tanker market through the redeliveries of time-chartered in vessels and tactical fleet management. During the second quarter, Teekay Parent redelivered three spot-traded, time-chartered in vessels upon the expiry of their contracts and expects to redeliver an additional five time-chartered in vessels during the remainder of 2011. Our strong in-house chartering operation has also provided us with opportunities to time-charter out vessels on a short-term basis at rates exceeding the current spot market levels.”

“Finally, market opportunities have enabled us to make good progress under our $200 million share repurchase authorization,” Mr. Evensen continued. “Since we last reported on May 12^th, we have repurchased $62 million of stock, bringing our total repurchase to date to $144 million.”

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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 June 30, 2011
		(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			201,573				91,562				30,878				164,457				(55,437	)			433,033
Vessel operating expense			75,197				23,388				10,852				65,280				—				174,717
Time-charter hire expense			18,182				—				—				90,669				(55,437	)			53,414
Depreciation and amortization			46,163				22,171				10,793				26,109				—				105,236
Cash flow from vessel operations(1)(2)			95,171				63,130				17,895				(27,425	)(3)			—				148,771
Net debt(4)			1,758,491				1,402,638				333,234				717,501				—				4,211,864

		Three Months Ended June 30, 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			191,889				91,353				35,785				207,754				(40,919	)			485,862
Vessel operating expense			61,108				22,041				10,551				57,092				—				150,792
Time-charter hire expense			23,424				—				—				92,883				(40,919	)			75,388
Depreciation and amortization			47,924				22,407				11,333				29,570				—				111,234
Cash flow from vessel operations(1)(2)			89,053				65,428				19,062				21,521	(3)			—				195,064
Net debt(4)			1,520,865				1,501,521				316,775				555,426				—				3,894,587

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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 fleet of 40 shuttle tankers (including five chartered-in vessels, and four committed newbuildings), two floating, production, storage and offloading (FPSO) units, five floating, storage and offtake (FSO) units and 10 conventional oil tankers. Teekay Offshore also has the right to participate in certain other FPSO and vessel opportunities. As at June 30, 2011, Teekay Parent owned a 37.6 percent interest in Teekay Offshore (including the 2 percent sole general partner interest).

Cash flow from vessel operations from Teekay Offshore increased to $95.2 million in the second quarter of 2011, from $89.1 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 on October 1, 2010, higher revenues relating to the amended Statoil master agreement effective September 2010, which includes the earnings from the Amundsen Spirit and the Nansen Spirit shuttle tanker newbuildings, and lower time-charter hire expenses resulting from re-delivery of two in-chartered vessels. This was partially offset by lower revenue resulting from fewer revenue days from vessels operating under contracts of affreightment and higher vessel operating expenses in the shuttle tanker fleet, as well as the sale of the Karratha Spirit FSO unit during the first quarter of 2011.

In June 2011, Teekay Offshore entered into a new contract with a subsidiary of BG Group plc (BG) to provide shuttle tanker services in Brazil. The contract involves the time-charter out of four Suezmax newbuilding shuttle tankers to be constructed by Samsung Heavy Industries for a total delivered cost of approximately $480 million. Upon their scheduled delivery in mid- to late-2013, the vessels will commence operations under 10-year time-charter contracts which include certain contract extension and vessel purchase options. In July 2011, Teekay Offshore sold 0.7 million common units in a private placement for net proceeds of $20.4 million (including the general partners’ contribution), which were used to partially finance the shipyard installments relating to the four newbuilding shuttle tankers.

For the second quarter of 2011, Teekay Offshore’s quarterly distribution was $0.50 per unit. The cash distribution received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay Offshore totaled $13.4 million for the second quarter of 2011, as detailed in Appendix D to this release.

In early August 2011, Teekay Offshore sold its 1993-built conventional Aframax tanker, Scotia Spirit, to a third party for net proceeds of $8.3 million.

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, three LPG/Multigas carriers and 11 conventional tankers. In addition, Teekay LNG has agreed to acquire one newbuilding LPG carrier from a subsidiary of IM Skaugen (Skaugen) in 2011, one newbuilding Multigas carrier from Teekay Parent in 2011 and a 33 percent interest in four newbuilding LNG carriers from Teekay Parent in 2011 through early 2012, upon their respective delivery dates. Teekay Parent currently owns a 43.6 percent interest in Teekay LNG (including the 2 percent sole general partner interest).

Cash flow from vessel operations from Teekay LNG during the second quarter of 2011 decreased to $63.1 million from $65.4 million in the same period of the prior year. This decrease was primarily due to the sale of the Dania Spirit LPG carrier in November 2010 and an increase in off-hire days in the second quarter of 2011 relating to scheduled drydockings, partially offset by the earnings from the Multigas carrier acquired in mid-June 2011, which commenced a 15-year fixed-rate charter to Skaugen.

In April 2011, Teekay LNG completed a public offering of 4.3 million common units, which provided net proceeds to the partnership of approximately $162 million. The net proceeds from the offering were used to repay a portion of the partnership’s revolving credit facilities, which may be redrawn in the future to fund the equity component of the partnership’s purchase of the 33 percent interest in the four Angola LNG carrier newbuildings, the remaining two Skaugen LPG/Multigas carriers, as well as fund other potential acquisitions.

For the second quarter of 2011, Teekay LNG’s quarterly distribution was $0.63 per unit. The cash distribution received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay LNG totaled $19.1 million for the second quarter of 2011, as detailed in Appendix D to this release.

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Teekay Tankers Ltd.

Teekay Tankers’ fleet includes 11 Aframax tankers and six Suezmax tankers (including two in-chartered Aframax tankers). In addition, Teekay Tankers owns a 50 percent interest in a VLCC newbuilding scheduled to deliver in April 2013 and has invested $115 million in three-year, first-priority mortgage loans secured by two VLCC newbuildings which yield an average of 10 percent per annum. Of the 17 vessels currently in operation, 10 are, or will be, 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. Teekay Parent currently owns a 26.0 percent interest in Teekay Tankers (including 100 percent of the outstanding Class B common shares, which together with its current ownership of Class A common shares, provides Teekay voting control of Teekay Tankers).

Cash flow from vessel operations from Teekay Tankers decreased to $17.9 million in the second quarter of 2011, from $19.1 million in the same period of the prior year, primarily due to lower average realized tanker rates for its time-charter and spot fleets during the second quarter of 2011, and an increase in operating expenses mainly related to higher repairs and maintenance costs compared to the same period of the prior year.

On August 10, 2011, Teekay Tankers declared a second quarter 2011 dividend of $0.21 per share which will be paid on August 26, 2011 to all shareholders of record on August 19, 2011. Based on its ownership of Teekay Tankers Class A and Class B shares, the dividend to be paid to Teekay Parent will total $3.4 million for the second quarter of 2011.

Teekay Tankers recently time-chartered in two Aframax tankers for firm periods of six and four months, respectively, with options to extend up to an additional 18 and 16 months, respectively. Teekay Tankers also recently time-chartered out two of its owned Aframax tankers, each for a period of 12 months, at rates approximately $3,000 per day higher than the rates for the firm periods of the two time-chartered in vessels. The combined result of these charter transactions will be accretive to Teekay Tankers’ dividend for the firm period of the two time-chartered in contracts and provide further potential upside through in-charter extension options. Teekay Tankers’ currently has fixed-rate contract coverage of approximately 60 percent for the second half of 2011 and 36 percent for fiscal 2012.

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 August 1, 2011, this included 17 conventional tankers, one shuttle tanker, and three FPSO units. In addition, Teekay Parent currently has under construction or conversion two FPSO units. In addition, as at August 10, 2011, Teekay Parent had 26 chartered-in conventional tankers (including eight vessels owned by its subsidiaries), two chartered-in LNG carriers owned by Teekay LNG and two chartered-in shuttle tankers owned by Teekay Offshore.

In the second quarter of 2011, Teekay Parent generated negative cash flow from vessel operations of $27.4 million, compared to positive cash flow from vessel operations of $21.5 million in the same period of the prior year. The decrease in cash flow is primarily due to the sale of vessels, including the Cidade de Rio das Ostras FPSO unit to Teekay Offshore in October 2010, one Suezmax tanker and one Aframax tanker to Teekay Tankers during November 2010, a non-recurring $29 million retroactive component of revenue recognized in the second quarter of 2010 related to the signing of the Foinaven FPSO contract amendment, and a decrease in average realized spot tanker rates for the second quarter of 2011 compared to the same period in the prior year.

In April 2011, Teekay Parent entered into short-term fixed-rate contracts for the Arctic Spirit and Polar Spirit LNG carriers, which are time-chartered in from Teekay LNG on a long-term basis. Teekay Parent’s time-charter out contracts for these vessels are for six and four months, respectively, and the Arctic Spirit contract includes two one-year options to extend at the charterer’s option.

On June 30, 2011, Teekay Parent entered into an agreement with BG to charter a newbuilding FPSO unit for the Knarr oil and gas field located in the North Sea. The newbuilding FPSO unit is scheduled to deliver in the first quarter of 2014 and will commence operations for a firm period of either six or ten years plus extension options for a total period of up to 20 years. BG has until the end of 2012 to decide on the firm period of the charter contract.

In July 2011, Teekay Parent took delivery of the Scott Spirit shuttle tanker newbuilding, the fourth and final vessel in the “Explorer” class of shuttle tankers which includes the Amundsen Spirit, Peary Spirit and Nansen Spirit sold to Teekay Offshore in late 2010 through mid-2011.

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Tanker Market

Crude tanker freight rates weakened during the second quarter and into the third quarter of 2011 due to a combination of tanker supply growth, geopolitical factors, and seasonal factors. The tanker market continues to be affected by an oversupply of vessels relative to demand, which is dragging down tanker rates. In addition, the loss of Libyan crude oil production due to political unrest had a negative impact on Aframax rates in the Mediterranean, while North Sea production was impacted by a series of unplanned oilfield shutdowns. Tanker rates were further affected by seasonal refinery maintenance programs and the onset of summer oilfield maintenance in the North Sea.

The world tanker fleet grew by a net 13.8 million deadweight tonnes (mdwt), or 3.1 percent, in the first half of 2011 compared to a net increase of 10.6 mdwt, or 2.5 percent, in the same period last year. A combination of weak spot tanker freight rates and relatively high demolition prices have led to 7.3 mdwt of tanker removals through the first half of 2011, which has helped dampen tanker fleet growth. With increasing customer discrimination toward older double hull tankers on the rise, we expect this level of scrapping to persist through the second half of the year. In addition, new tanker ordering has remained virtually non-existent, with only 3.5 mdwt ordered since the start of the year. If this level of ordering continues for the rest of the year, it will be the lowest annual level of new tanker orders since 1985.

The International Energy Agency (IEA) is forecasting global oil demand of 89.5 million barrels per day (mb/d) in 2011, an increase of 1.2 mb/d from 2010 levels. The IEA also recently released its outlook for 2012 in which it calls for global oil demand growth of 1.5 mb/d, which is primarily driven by expected continued demand growth in China.

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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
		June 30,				March 31,				June 30,
		2011				2011				2010
Suezmax
Gemini Suezmax Pool average spot TCE rate (1)		$	17,461			$	18,761			$	30,937
Spot revenue days (2)(3)			586				659				542
Average time-charter rate (4)(5)		$	24,464			$	27,250			$	27,079
Time-charter revenue days (3)(4)			364				401				739
Aframax
Teekay Aframax Pool average spot TCE rate (1)(6)(7)		$	16,348			$	16,299			$	19,928
Spot revenue days (2)(3)			1,349				1,526				1,570
Average time-charter rate (5)		$	23,662			$	23,642			$	24,513
Time-charter revenue days (3)			727				723				1,072
LR2
Taurus LR2 Pool average spot TCE rate (1)		$	15,509			$	14,490			$	15,257
Spot revenue days (2)(3)			453				450				361
MR
MR product tanker average spot TCE rate (1)			—				—			$	9,721
Spot revenue days (2)(3)			—				—				151
Average product tanker time-charter rate (5)		$	30,869			$	26,011			$	26,752
Time-charter revenue days (3)			407				270				269

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Fleet List

As at August 10, 2011, Teekay’s consolidated fleet consisted of 152 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
Spot-rate:
Aframax Tankers(2)			—				10				—				10
Suezmax Tankers			5				1				—				6
LR2 Product Tankers			2				1				—				3
Total Teekay Parent Spot Fleet			7				12				—				19
Fixed-rate:(3)
Aframax Tankers(2)			3				3				—				6
Suezmax Tankers			3				1				—				4
LR2 Product Tankers			1				—				—				1
MR Product Tankers			3				2				—				5
Shuttle Tankers (4)			1				—				—				1
FPSO Units			3				—				2				5
Total Teekay Parent Fixed-rate Fleet			14				6				2				22
Total Teekay Parent Fleet			21				18				2				41
Teekay Offshore Fleet			48				5				4				57
Teekay LNG Fleet			31				—				6				37
Teekay Tankers Fleet			15				1				1				17
Total Teekay Consolidated Fleet			115				24				13				152

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Liquidity and Capital Expenditures

As at June 30, 2011, Teekay had consolidated liquidity of $1.9 billion, consisting of $497.5 million cash and approximately $1.4 billion of undrawn revolving credit facilities, of which $850.3 million, consisting of $247.8 million cash and $602.5 million of undrawn revolving credit facilities, is attributable to Teekay Parent. Including pre-arranged newbuilding financing, Teekay’s total consolidated liquidity was approximately $2.2 billion, of which approximately $1.1 billion is attributable to Teekay Parent.

The Company’s remaining capital commitments relating to its portion of newbuildings and conversions were as follows as at June 30, 2011:

(in millions)		2011				2012				2013				2014				Total
Teekay Offshore			—			$	78			$	323				—			$	401
Teekay LNG		$	34				—				—				—			$	34
Teekay Tankers			—			$	20			$	20				—			$	40
Teekay Parent*		$	455			$	390			$	360				—			$	1,205
Total Teekay Corporation Consolidated		$	489			$	488			$	703				—			$	1,680

As indicated above, the Company had total capital expenditure commitments pertaining to newbuildings and conversions of approximately $1.7 billion remaining as at June 30, 2011, with pre-arranged financing for approximately $290 million of this amount. The Company expects to obtain debt financing for approximately $1.3 billion of the $1.4 billion of remaining unfinanced capital expenditure commitments relating to the Petrojarl Cidade de Itajai FPSO unit, the VLCC newbuilding (through Teekay Tankers’ joint venture with Wah Kwong), the Knarr FPSO newbuilding, and the four shuttle tanker newbuildings that will be time-chartered out to BG.

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 August 10, 2011, the Company had repurchased 4.4 million shares under the Company’s existing authorization, representing a total cost of $144 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 dependent on market conditions.

Conference Call

The Company plans to host a conference call on August 11, 2011 at 11:00 a.m. (ET) to discuss its results for the second quarter of 2011. 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) 711-9538 or (416) 640-5925, if outside North America, and quoting conference ID code 5457560.

•

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, August 18, 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 5457560.

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About Teekay

Teekay Corporation 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 is growing its operations in the offshore oil production, storage and transportation sector through its publicly-listed subsidiary, Teekay Offshore Partners L.P. (NYSE: TOO), continues to expand its significant presence in the liquefied natural gas shipping sector through its publicly-listed subsidiary, Teekay LNG Partners L.P. (NYSE: TGP), and seeks to grow its conventional tanker business through its publicly-listed subsidiary, Teekay Tankers Ltd. (NYSE: TNK). With a fleet of 152 vessels, offices in 16 countries and approximately 6,400 seagoing and shore-based employees, Teekay transports approximately 10 percent of the world’s seaborne oil and its 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

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TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands of U.S. dollars, except share and per share data)

		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
		2011				2011				2010				2011				2010
		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
REVENUES (1)			484,922				488,024				552,229				972,946				1,125,104
OPERATING EXPENSES
Voyage expenses			51,889				45,126				66,367				97,015				138,917
Vessel operating expenses (1)(2)			174,717				161,577				150,792				336,294				305,327
Time-charter hire expense			53,414				63,031				75,388				116,445				154,639
Depreciation and amortization			105,236				105,038				111,234				210,274				219,464
General and administrative (1)(2)			51,273				70,218				50,256				121,491				98,347
Asset impairments/net loss on vessel sales			5,812				3,593				22				9,405				782
Restructuring charges			458				4,961				4,195				5,419				7,978
			442,799				453,544				458,254				896,343				925,454
Income from vessel operations			42,123				34,480				93,975				76,603				199,650
OTHER ITEMS
Interest expense (1)			(33,516	)			(32,794	)			(33,926	)			(66,310	)			(66,078	)
Interest income			2,457				2,465				2,209				4,922				6,483
Realized and unrealized (loss) gain on derivative instruments (1)			(102,140	)			23,257				(219,225	)			(78,883	)			(307,072	)
Income tax (expense) recovery			(2,022	)			(811	)			5,147				(2,833	)			12,454
Equity (loss) income from joint ventures (1)			(6,053	)			6,394				(21,827	)			341				(24,493	)
Foreign exchange (loss) gain			(7,157	)			(20,340	)			27,488				(27,497	)			56,514
Other income (loss) — net			958				94				740				1,052				(8,946	)
Net (loss) income			(105,350	)			12,745				(145,419	)			(92,605	)			(131,488	)
Less: Net loss (income) attributable to non-controlling interests			8,898				(42,402	)			(7,729	)			(33,504	)			(35,662	)
Net loss attributable to stockholders of Teekay Corporation			(96,452	)			(29,657	)			(153,148	)			(126,109	)			(167,150	)
Loss per common share of Teekay
- Basic			($1.36	)			($0.41	)			($2.10	)			($1.77	)			($2.29	)
- Diluted			($1.36	)			($0.41	)			($2.10	)			($1.77	)			($2.29	)
Weighted-average number of common shares outstanding
- Basic			70,935,484				71,946,997				72,961,471				71,438,446				72,875,508
- Diluted			70,935,484				71,946,997				72,961,471				71,438,446				72,875,508

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		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
		2011				2011				2010				2011				2010
Realized (losses) gains relating to:
Interest rate swaps			(32,692	)			(33,997	)			(40,634	)			(66,689	)			(79,220	)
Interest rate swap resets			—				(92,672	)			—				(92,672	)			—
Foreign currency forward contracts
Vessel operating expenses			3,337				1,216				(1,037	)			4,553				(1,394	)
General and administrative expenses			221				109				15				330				49
Bunkers, FFAs and other			(7	)			49				(2,207	)			42				(4,356	)
			(29,141	)			(125,295	)			(43,863	)			(154,436	)			(84,921	)
Unrealized (losses) gains relating to:
Interest rate swaps			(73,331	)			141,859				(164,032	)			68,527				(209,838	)
Foreign currency forward contracts			540				6,707				(8,836	)			7,248				(12,053	)
Bunkers, FFAs and other			(208	)			(14	)			(2,494	)			(222	)			(260	)
			(72,999	)			148,552				(175,362	)			75,553				(222,151	)
Total realized and unrealized (losses) gains on non-designated derivative instruments			(102,140	)			23,257				(219,225	)			(78,883	)			(307,072	)

		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
		2011				2011				2010				2011				2010
Vessel operating expenses			(171	)			(179	)			(1,433	)			(350	)			(3,515	)
General and administrative			121				95				(844	)			216				(1,736	)

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

		As at June 30,				As at March 31,				As at December 31
		2011				2011				2010
		(unaudited)				(unaudited)				(unaudited)
ASSETS
Cash and cash equivalents			497,549				567,325				779,748
Other current assets			392,845				414,404				341,777
Restricted cash — current			94,626				92,733				86,559
Restricted cash — long-term			493,970				493,633				489,712
Vessels held for sale			8,300				—				—
Vessels and equipment			6,585,418				6,491,185				6,573,388
Advances on newbuilding contracts /conversions			345,445				261,335				197,987
Derivative assets			104,613				87,594				83,198
Investment in joint ventures			217,584				220,563				207,633
Investment in direct financing leases			473,693				480,248				487,516
Investment in term loans			186,418				186,184				116,014
Other assets			172,044				182,759				188,482
Intangible assets			146,471				151,306				155,893
Goodwill			203,191				203,191				203,191
Total Assets			9,922,167				9,832,460				9,911,098
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities			420,867				421,851				422,109
Other current liabilities			14,500				14,500				59
Current portion of long-term debt			813,909				743,019				543,890
Long-term debt			4,484,097				4,450,725				4,626,308
Derivative liabilities			462,899				376,417				531,235
In process revenue contracts			174,372				185,239				196,106
Other long-term liabilities			215,982				216,435				217,658
Redeemable non-controlling interest			39,604				40,614				41,725
Equity:
Non-controlling interests			1,602,411				1,544,239				1,353,561
Stockholders of Teekay			1,693,526				1,839,421				1,978,447
Total Liabilities and Equity			9,922,167				9,832,460				9,911,098

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

		Six Months Ended
		June 30
		2011				2010
		(unaudited)				(unaudited)
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
Net operating cash flow			7,199				220,314
FINANCING ACTIVITIES
Net proceeds from long-term debt			561,753				833,159
Scheduled repayments of long-term debt			(125,791	)			(110,100	)
Prepayments of long-term debt			(341,783	)			(741,898	)
Increase in restricted cash			(4,353	)			(1,769	)
Repurchase of common stock			(83,660	)			—
Net proceeds from public offerings of Teekay LNG			158,326				—
Net proceeds from public offerings of Teekay Offshore			—				94,491
Net proceeds from public offerings of Teekay Tankers			107,234				103,036
Cash dividends paid			(46,472	)			(46,058	)
Distribution from subsidiaries to non-controlling interests			(101,284	)			(73,736	)
Other			5,171				2,437
Net financing cash flow			129,141				59,562
INVESTING ACTIVITIES
Expenditures for vessels and equipment			(358,607	)			(92,428	)
Proceeds from sale of vessels and equipment			5,055				27,591
Investment in term loans			(70,404	)			—
Loans to joint ventures			(1,881	)			(4,868	)
Other			7,298				8,786
Net investing cash flow			(418,539	)			(60,919	)
(Decrease) increase in cash and cash equivalents			(282,199	)			218,957
Cash and cash equivalents, beginning of the period			779,748				422,510
Cash and cash equivalents, end of the period			497,549				641,467

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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								Six Months Ended
		June 30, 2011								June 30, 2011
		(unaudited)								(unaudited)
						$ Per								$ Per
		$				Share (1)				$				Share (1)
Net loss — GAAP basis			(105,350	)							(92,605	)
Adjust for: Net loss (income) attributable to non-controlling interests			8,898								(33,504	)
Net loss attributable to stockholders of Teekay			(96,452	)			(1.36	)			(126,109	)			(1.77	)
Add (subtract) specific items affecting net loss:
Unrealized losses (gains) from derivative instruments (2)			85,445				1.21				(67,207	)			(0.94	)
Foreign currency exchange loss (3)			7,935				0.11				28,942				0.41
Deferred income tax expense on unrealized foreign exchange gains			3,576				0.05				10,095				0.14
Restructuring charges (4)			458				0.01				5,419				0.08
Asset impairments/net loss on vessel sales			5,812				0.08				9,405				0.13
Adjustments to pension accruals and stock based compensation(5)			—				—				18,102				0.25
Upfront payments related to interest rate swap resets			—				—				92,672				1.30
Other — net(6)			(2,598	)			(0.04	)			(6,232	)			(0.09	)
Non-controlling interests’ share of items above			(40,431	)			(0.57	)			(29,215	)			(0.41	)
Total adjustments			60,197				0.85				61,981				0.87
Adjusted net loss attributable to stockholders of Teekay			(36,255	)			(0.51	)			(64,128	)			(0.90	)

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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								Six Months Ended
		June 30, 2010								June 30, 2010
		(unaudited)								(unaudited)
						$ Per								$ Per
		$				Share (1)				$				Share (1)
Net income — GAAP basis			(145,419	)							(131,488	)
Adjust for: Net income attributable to non-controlling interests			(7,729	)							(35,662	)
Net income attributable to stockholders of Teekay			(153,148	)			(2.10	)			(167,150	)			(2.29	)
Add (subtract) specific items affecting net income:
Unrealized gains from derivative instruments (2)			202,236				2.77				258,100				3.54
Foreign currency exchange (gains) losses (3)			(27,488	)			(0.38	)			(56,514	)			(0.77	)
Deferred income tax recovery on unrealized foreign exchange losses			(10,997	)			(0.15	)			(14,206	)			(0.19	)
Restructuring charge(4)			4,195				0.06				7,978				0.11
Loss on sale of vessels and equipment			22				—				782				0.01
Retroactive component of revenue recognized from contract amendment(5)			(29,200	)			(0.40	)			(59,200	)			(0.81	)
Loss on bond repurchases (8.875 percent notes due 2011)			537				0.01				12,645				0.17
Adjustments to carrying value of certain capitalized drydocking expenditures			2,394				0.03				2,394				0.03
Non-recurring adjustments to tax accruals			6,842				0.09				6,842				0.09
Other(6)			739				0.01				739				0.01
Non-controlling interests’ share of items above			(22,219	)			(0.30	)			(22,387	)			(0.31	)
Total adjustments			127,061				1.74				137,173				1.88
Adjusted net loss attributable to stockholders of Teekay			(26,087	)			(0.36	)			(29,977	)			(0.41	)

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TEEKAY CORPORATION
APPENDIX B — SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY BALANCE SHEET AS AT JUNE 30, 2011
(in thousands of U.S. dollars)
(unaudited)

		Teekay				Teekay				Teekay				Teekay				Consolidation
		Offshore				LNG				Tankers				Parent				Adjustments				Total
ASSETS
Cash and cash equivalents			158,644				74,508				16,566				247,831				—				497,549
Other current assets			105,883				16,955				8,028				261,979				—				392,845
Restricted cash (current & non-current)			—				585,543				—				3,053				—				588,596
Vessels held for sale			8,300				—				—				—				—				8,300
Vessels and equipment			2,302,667				1,962,794				737,096				1,582,861				—				6,585,418
Advances on newbuilding contracts/conversions			44,589				40,835				—				260,021				—				345,445
Derivative assets			25,913				67,529				—				11,171				—				104,613
Investment in joint ventures			—				184,229				68				33,287				—				217,584
Investment in direct financing leases			60,722				412,828				—				143				—				473,693
Investment in term loans			—				—				116,418				70,000				—				186,418
Other assets			17,613				31,978				11,547				110,906				—				172,044
Advances to affiliates			24,655				3,157				14,604				(42,416	)			—				—
Equity investment in subsidiaries			—				—				—				473,109				(473,109	)			—
Intangibles and goodwill			152,316				154,612				13,310				29,424				—				349,662
TOTAL ASSETS			2,901,302				3,534,968				917,637				3,041,369				(473,109	)			9,922,167
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities			90,121				59,847				13,396				257,503				—				420,867
Other current liabilities			14,500				—				—				—				—				14,500
Advances from affiliates			120,990				83,721				1,967				(206,678	)			—				—
Current portion of long-term debt			202,677				561,591				1,800				47,841				—				813,909
Long-term debt			1,714,458				1,501,098				348,000				920,541				—				4,484,097
Derivative liabilities			171,049				201,435				19,743				70,672				—				462,899
In-process revenue contracts			—				—				254				174,118				—				174,372
Other long-term liabilities			21,972				107,580				3,185				83,245				—				215,982
Redeemable non-controlling interest			39,604				—				—				—				—				39,604
Non-controlling interests (1)			46,740				13,173				—				601				1,541,897				1,602,411
Equity attributable to stockholders/ unitholders of publicly-listed entities			479,191				1,006,523				529,292				1,693,526				(2,015,006	)			1,693,526
TOTAL LIABILITIES AND EQUITY			2,901,302				3,534,968				917,637				3,041,369				(473,109	)			9,922,167
NET DEBT (2)			1,758,491				1,402,638				333,234				717,501				—				4,211,864

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TEEKAY CORPORATION
APPENDIX B — SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2011
(in thousands of U.S. dollars)
(unaudited)

		Teekay				Teekay				Teekay				Teekay				Consolidation
		Offshore				LNG				Tankers				Parent				Adjustments				Total
Revenues			234,145				92,247				31,427				182,540				(55,437	)			484,922
Voyage expenses			32,572				685				549				18,083				—				51,889
Vessel operating expenses			75,197				23,388				10,852				65,280				—				174,717
Time-charter hire expense			18,182				—				—				90,669				(55,437	)			53,414
Depreciation and amortization			46,163				22,171				10,793				26,109				—				105,236
General and administrative			18,157				6,535				2,131				24,450				—				51,273
Asset impairments/net loss (gain) on vessel sales			8,194				—				—				(2,382	)			—				5,812
Restructuring charges			—				—				—				458				—				458
Total operating expenses			198,465				52,779				24,325				222,667				(55,437	)			442,799
Income (loss) from vessel operations			35,680				39,468				7,102				(40,127	)			—				42,123
Net interest expense			(8,740	)			(10,438	)			(1,030	)			(10,851	)			—				(31,059	)
Realized and unrealized loss on derivative instruments			(38,720	)			(27,329	)			(4,387	)			(31,704	)			—				(102,140	)
Income tax (expense) recovery			(3,037	)			(119	)			—				1,134				—				(2,022	)
Equity income (loss) from joint ventures			—				3,447				(1	)			(9,499	)			—				(6,053	)
Equity income of subsidiaries (1)			—				—				—				(6,945	)			6,945				—
Foreign exchange gain (loss)			367				(8,859	)			(6	)			1,341				—				(7,157	)
Other — net			1,159				141				(236	)			(106	)			—				958
Net (loss) income			(13,291	)			(3,689	)			1,442				(96,757	)			6,945				(105,350	)
Less: Net loss (income) attributable to non-controlling interests (2)			1,188				(8,642	)			—				305				16,047				8,898
Net (loss) income attributable to stockholders/unitholders of publicly-listed entities			(12,103	)			(12,331	)			1,442				(96,452)				22,992				(96,452	)
CASH FLOW FROM VESSEL OPERATIONS (3)			95,171				63,130				17,895				(27,425	)(4)			—				148,771