Hamilton, Bermuda, October 1, 2009 - Teekay Corporation (Teekay or the Company) announced that its Board of Directors has voted to declare a cash dividend on its common stock of $0.31625 per share, payable on October 30, 2009 to all shareholders of record as at October 16, 2009.
“Teekay’s stable quarterly dividend payments, even with the weak spot tanker rates we are currently experiencing, are a reflection of our substantial long-term fixed-rate cash flows,” commented Bjorn Moller, Teekay Corporation’s President and Chief Executive Officer. “The distributions we currently receive from our MLP daughter companies, Teekay LNG Partners and Teekay Offshore Partners, alone are sufficient to cover our dividend each quarter.” Mr. Moller continued, “In addition to our stable cash flows, Teekay is well-positioned financially with consolidated liquidity of $2.8 billion, including over $750 million of pre-arranged financing for our remaining capital expenditure commitments, and a favorable debt profile with no significant near-term debt maturities and no covenant concerns. We have continued to enhance Teekay’s financial strength and flexibility through cost reductions and de-leveraging of our balance sheet. During the past year, we have reduced our overhead and vessel operating expenses by approximately 20 percent and 7 percent, respectively. Asset sales to our daughter companies in the third quarter, which included the dropdown of the Petrojarl Varg FPSO to Teekay Offshore Partners and the two Tangguh LNG carriers to Teekay LNG Partners, have resulted in further deleveraging at the Teekay parent company level, in addition to the over $300 million net debt reduction achieved in the previous four quarters.”
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 165 vessels, offices in 16 countries and 6,700 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