Teekay Corporation (NYSE:TK) Q1 2020 Earnings Conference Call - Final Transcript

May 21, 2020 • 11:00 am ET

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Teekay Corporation (NYSE:TK) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to Teekay Corporation's First Quarter 2020 Earnings Results Conference Call. [Operator Instructions]

Now, for opening remarks and introduction, I would like to turn the call over to the Company. Please go ahead.

Executive
Ryan Hamilton

Before we begin, I'd like to direct all participants to our website at www.teekay.com where you'll find a copy of the first quarter 2020 earnings presentation. Kenneth and Vince will review this presentation during today's conference call.

Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the first quarter of 2020 earnings release and earnings presentation available on our website.

I'll now turn the call over to Kenneth Hvid, Teekay Corporation's President and CEO, to begin.

Executive
Kenneth Hvid

Thank you, Ryan.

Hello, everyone, and thank you very much for joining us today for Teekay Corporation's first quarter of 2020 earnings conference call. I hope that you and your families are all safe and healthy.

On the call today, I'm joined by Vince Lok, Teekay's Group CFO.

Before we get into our results, I would like to take a moment to thank all of our seafarers and shore-based staff for their extraordinary dedication to maintain business continuity and bringing energy to the world with Teekay's spirit. While COVID-19 is having an unprecedented impact on the world and is clearly a major focus for us, we're truly proud of how our seafarers and onshore colleagues have responded to COVID-19, implementing new standards which focus on the health and well-being of everyone involved in our organization, especially our colleagues at sea, while maintaining consistently safe and efficient operations for our customers. We're also fortunate to be in a position where our operational results are strong so far in 2020 and we have had minimal impacts on our operations due to the pandemic.

Moving to our recent highlights on slide 3 of the presentation. The first quarter of 2020 marked the second consecutive quarterly adjusted profit for Teekay as we recorded consolidated adjusted net income of $25 million or $0.25 per share compared to an adjusted net loss of $13 million or $0.13 per share in the same period last year. We also generated total adjusted EBITDA of $342 million, an increase of $128 million or 59% from the same period in the prior year. As a reminder, the Q1 2019 results included the contribution from the 14% ownership stake in Altera Infrastructure, formerly Teekay Offshore, which was sold in May 2019. It is also important to note that these figures only include $11 million of the $67 million upfront payment received for the Foinaven FPSO contract we entered into in late March. I will touch on the accounting treatment for this in more detail in the presentation.

Our strong results in the first quarter can be attributed to higher earnings in our main businesses. Teekay Tankers