The recently enacted "American Jobs Creation Act" gives significant tax breaks to a number of U.S. industries--including shipping.

MARINE LOG and BLANK ROME will present a senior level seminar CHANGES IN U.S. TAXATION OF SHIPPING INCOME in Stamford, Conn. on April 5 & 6, 2004

Make sure you know how the new tax rules work!

February 17, 2005

Teekay reports record earnings

Teekay Shipping Corporation (NYSE:TK) has joined the parade of shipping giants reporting record fourth quarter and annual earnings.


  • Highest ever fourth quarter net income of $224.6 million

  • Highest ever annual net income of $757.4 million

  • Record high cash flow from vessel operations of $979.4 million for 2004 and $329.3 million in the fourth quarter

  • Repurchased 3 million shares at an average cost of $42.95 per share

  • Announced filing of registration statement for initial public offering of Teekay LNG Partners L.P.

Teekay Shipping Corporation today reported net income of $224.6 million, or $2.50 per share, for the quarter ended December 31, 2004, compared to net income of $6.6 million, or $0.08 per share, for the quarter ended December 31, 2003. The results for the quarters ended December 31, 2004 and 2003 included a number of specific items that had the net effect of reducing net income by $51.3 million and $72.1 million, respectively. Net voyage revenues for the fourth quarter of 2004 were $556.2 million, compared to $340.6 million for the same period in 2003, and income from vessel operations increased to $295.8 million from $43.8 million.

The results for the current quarter primarily reflect the increase in spot tanker charter rates, which averaged $58,592 per day in the fourth quarter of 2004 for Teekay's spot Aframax fleet, compared to $25,475 per day in the same period last year. In addition, the most recent quarter's results reflect the continued growth of the company's fixed-rate segments, both through the delivery of newbuildings for service under long-term contracts and the acquisition of Naviera F. Tapias S.A. (renamed Teekay Shipping Spain S.L.) on April 30, 2004, partially offset by the sale of certain older spot vessels over the past 12 months.

Teekay Fleet

As at December 31, 2004, Teekay's fleet (excluding vessels managed for third parties) consisted of 154 vessels, including chartered-in vessels and newbuildings on order. During the fourth quarter, as part of its ongoing fleet renewal program, the company sold six of its older tankers and took delivery of two newbuildings, a Suezmax tanker and an LNG carrier, both of which commenced service under 20-year fixed-rate charter contracts.

Earnings Conference Call

The company plans to host a conference call at 11:00 a.m. EST (8:00 a.m. PST) on February 17, 2005, to discuss its results and the outlook for its business activities. All shareholders and interested parties are invited to listen to the live conference call and view the company's earnings presentation through the company's Web site at The presentation will be available on the web site prior to the conference call. A recording of the call will be available until March 16, 2005 via the Company's Web site or by dialing 719-457-0820, access code 319142.


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