October 8, 2003

Teekay ups dividend

Teekay Shipping Corporation (NYSE:TK) is to increase its quarterly dividend by 16 percent to $0.25 per share.

In recent years, Teekay has substantially grown its long-term fixed-rate contract business to complement its conventional spot tanker business. With the acquisition of Navion AS in April 2003, Teekay's annualized operating cash flow from its fixed-rate segment has increased to approximately $225 million and is expected to rise further to approximately $280 million by the fourth quarter of 2004 upon the commencement of new projects already announced. This is in addition to the significant operating cash flow generated by the company's leading spot tanker business.

"Over the past few years," noted President and CEO Bjorn Moller, "we have focused on transforming the Company from a regional operator of mid-size tankers to a world leader in marine oil transportation. A key component has been the growth of our long-term fixed-rate business, which now provides both a large stable base of cash flow and an increase in our earnings power throughout the shipping cycle. As a result, we are pleased to be able to increase the dividends to our shareholders."

Since Teekay's initial public offering in 1995, the company has paid a consistent quarterly dividend of $0.215 per share.

Teekay transports more than 10 percent of the world's sea-borne oil and employs more than 4,200 seagoing and shore-based staff around the world.

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