Teekay Corpation reports 2Q 2015 financial results
Teekay Corporation (Teekay or the Company) (NYSE:TK) reported financial and operating results for the second quarter of 2015. These results include the Company’s three publicly-listed subsidiaries (Teekay Offshore Partners L.P. (Teekay Offshore) (NYSE:TOO), Teekay LNG Partners L.P. (Teekay LNG) (NYSE:TGP), Teekay Tankers Ltd. (Teekay Tankers) (NYSE:TNK)) (collectively, the Daughter Entities), all of which are consolidated in the Company’s financial statements, and all remaining subsidiaries of the Company are referred to in this release as Teekay Parent. Please refer to the second quarter earnings releases of Teekay LNG, Teekay Offshore and Teekay Tankers.
Highlights:
- Second quarter 2015 total Teekay Parent free cash flow of $49.5 million, up $17.9 million, or 57 percent from the first quarter of 2015.
- Implemented new dividend policy: increased second quarter 2015 dividend by 75 percent to $0.55 per share ($2.20 per share annualized) and linking future dividend increases to the growing cash flows from Teekay’s publicly-listed daughter entities.
- Targeting 15 to 20 percent average annual dividend growth over the next three years.
- On July 1, 2015, completed the dropdown sale of the Knarr FPSO to Teekay Offshore for $1.26 billion.
Peter Evensen, Teekay Corporation’s President and Chief Executive Officer comments: “Teekay Parent’s free cash flow increased significantly during the second quarter, supported by a full quarter contribution from the Knarr FPSO prior to its dropdown sale to Teekay Offshore on July 1st, which resulted in a strong coverage ratio for the quarter. Our daughter entities also performed well during the second quarter, with Teekay Offshore and Teekay LNG both reporting strong distributable cash flow and distribution coverage ratios and Teekay Tankers achieving the highest tanker rates in seven years.”
Teekay Corporation established by Torben Karlshoe in 1973 has developed from a regional shipping company into one of the world’s largest marine energy transportation, storage and production companies.
