May 13, 2021
On May 13, Teekay Corporation, Teekay Tankers, and Teekay LNG Partners, released Q1-2021 earnings results.
Compared to the previous quarter, Teekay recorded higher results from each of our business entities, supported by our large portfolio of long-term contracts in our gas shipping business, higher spot tanker rates in our oil shipping business, and higher non-recurring revenues from our marine services business in Australia. Since reporting earnings in February, Teekay has made significant positive progress toward our strategic objective of winding down our FPSO segment, which we expect will result in a material reduction of our total asset retirement obligations in the second quarter.
Teekay Tankers have maintained a strong balance sheet which has enabled us to continue reducing our overall cost of capital on an opportunistic basis. With a strong financial position and high operating leverage, we believe that Teekay Tankers is well-positioned to weather the current market challenges and benefit from an anticipated tanker market recovery.
Teekay LNG continues to generate strong earnings and cash flows from its diversified portfolio of long-term contracts. The unique tailwinds in the global LNG industry provide a strong outlook for our business in 2021 and beyond and we believe the steps we are taking today to further strengthen our financial foundation will position us well for the future.
Looking ahead, Teekay continues to see a strong correlation between global vaccination programs and the increase in oil demand which we estimate to be approximately 5% lower currently compared to pre-pandemic levels.
As the world recovers from the COVID-19 pandemic, we expect the demand for oil and gas and related transportation services to gradually return to 2019 levels, which we believe will be positive for our core gas and oil shipping businesses, and for the Teekay Group overall.
We would like to acknowledge the continuous dedication and perseverance of all our seafarers and onshore colleagues during these challenging times. We are truly proud of all our colleagues for their commitment to providing safe and uninterrupted services to our customers as we continue to recover from COVID-19.
Below you will find the highlights from our earnings results. For detailed information, visit our Investor pages: $TK, $TGP, $TNK.