<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
----------------------
For the quarterly period ended September 30, 1995
------------------
TEEKAY SHIPPING CORPORATION
(Formerly Viking Star Shipping Inc.)
(Exact name of Registrant as specified in its charter)
Tradewinds Building, Sixth Floor
Bay Street, P.O. Box SS-6293,
Nassau, The Bahamas
(Address of principal executive office)
----------------------
[Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.]
Form 20-F X Form 40-F
----- -----
[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.]
Yes No X
----- -----
[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):82-__________ ]
Page 1 of 19
<PAGE> 2
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(FORMERLY VIKING STAR SHIPPING INC.)
REPORT ON FORM 6-K FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1995
INDEX
<TABLE>
<CAPTION>
PART I: FINANCIAL INFORMATION PAGE
----
<S> <C>
Item 1. Financial Statements
Consolidated Statements of Income
and Retained Earnings for the three and six months
ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Balance Sheets -
September 30, 1995 and March 31, 1995 . . . . . . . . . . . . . . . . . . . 4
Consolidated Statements of Cash Flows
for the six months ended September 30, 1995
and 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Notes to Consolidated Financial
Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . . . . . . . . . . . . . 14
PART II: OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
</TABLE>
2
<PAGE> 3
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(Formerly Viking Star Shipping Inc.)
CONSOLIDATED STATEMENTS OF INCOME
AND RETAINED EARNINGS
(in thousands of U.S. dollars)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------- ----------------
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
1995 1994 1995 1994
---- ---- ---- ----
$ (UNAUDITED) $ $ (UNAUDITED) $
--- ----------- --- --- ----------- ---
<S> <C> <C> <C> <C>
REVENUES
Voyage revenues 81,660 83,619 160,944 162,771
Voyage expenses 21,656 23,172 43,452 42,515
- ------------------------------------------------------------------------------------------------------
Net voyage revenue 60,004 60,447 117,492 120,256
- ------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
Vessel operating expenses 16,829 19,534 33,496 38,446
Depreciation and amortization (note 2) 20,077 24,483 40,956 48,238
General and administrative 4,548 4,130 8,812 8,146
- ------------------------------------------------------------------------------------------------------
Income from vessel operations 18,550 12,300 34,228 25,426
- ------------------------------------------------------------------------------------------------------
OTHER ITEMS
Interest expense (15,729) (16,172) (31,230) (31,364)
Interest income 1,635 1,406 3,182 2,903
Other income (note 9) 4,318 3,264 3,851 1,018
- ------------------------------------------------------------------------------------------------------
(9,776) (11,502) (24,197) (27,443)
- ------------------------------------------------------------------------------------------------------
Net income (loss) 8,774 798 10,031 (2,017)
Retained earnings, beginning of the
period 407,804 397,364 406,547 400,179
Exchange of redeemable preferred stock
(note 7) (60,000) (60,000)
- ------------------------------------------------------------------------------------------------------
RETAINED EARNINGS, END OF THE PERIOD 356,578 398,162 356,578 398,162
======================================================================================================
Net income (loss) per common share
(note 7) $ 0.34 $ 0.04 $ 0.46 $ (0.11)
Weighted average number of
common shares outstanding (note 7) 25,689,358 18,000,000 21,865,688 18,000,000
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
3
<PAGE> 4
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(Formerly Viking Star Shipping Inc.)
CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
<TABLE>
<CAPTION>
AT SEPTEMBER 30, 1995 AT MARCH 31, 1995
--------------------- -----------------
$ $
--- ---
(UNAUDITED)
-----------
<S> <C> <C>
ASSETS
CURRENT
Cash 60,465 16,500
Marketable securities (note 9) 48,802 69,239
Restricted cash 3,623 7,634
Accounts receivable
-trade 20,948 16,875
-vessel sale 17,283
-other 2,812 3,271
Prepaid expenses and other assets 13,574 13,273
- ------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 150,224 144,075
- ------------------------------------------------------------------------------------------------------
VESSELS AND EQUIPMENT (notes 2, 5, 6 and 10)
At cost, less accumulated depreciation of $343,838
(March 31, 1995 - $312,281) 1,152,171 1,142,972
Acquired under capital lease, less accumulated amortization
of $398 49,813
Advances on vessels 5,066
- ------------------------------------------------------------------------------------------------------
TOTAL VESSELS AND EQUIPMENT 1,201,984 1,148,038
- ------------------------------------------------------------------------------------------------------
Investment in 50% owned company 4,468 3,758
Other assets 9,240 10,603
- ------------------------------------------------------------------------------------------------------
1,365,916 1,306,474
======================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT
Accounts payable 10,542 11,480
Accrued liabilities 12,542 13,054
Current portion of long-term debt (notes 5 and 8) 58,906 74,479
Current portion of capital lease obligation (notes 6 and 8) 2,709
- ------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 84,699 99,013
- ------------------------------------------------------------------------------------------------------
Long-term debt (notes 5 and 8) 652,969 768,395
Capital lease obligation (notes 6 and 8) 41,200
- ------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 778,868 867,408
- ------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Capital stock (note 7) 230,613 33,001
Retained earnings 356,578 406,547
Less net unrealized loss on marketable securities 143 482
- ------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 587,048 439,066
- ------------------------------------------------------------------------------------------------------
1,365,916 1,306,474
======================================================================================================
</TABLE>
Commitments and contingencies (note 8).
The accompanying notes are an integral part of the consolidated financial
statements.
4
<PAGE> 5
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(Formerly Viking Star Shipping Inc.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
<TABLE>
<CAPTION>
SIX MONTHS ENDED SEPTEMBER 30,
------------------------------
1995 1994
---- ----
$ (UNAUDITED) $
--- ----------- ---
<S> <C> <C>
Cash provided by (used for)
OPERATING ACTIVITIES
Net income (loss) 10,031 (2,017)
Add (deduct) charges to operations not requiring
a payment of cash:
Depreciation and amortization 40,956 48,238
Foreign currency exchange gain (84) (305)
Gain on disposition of assets (3,728) (3,698)
Loss on marketable securities 110 2,719
Equity income (704)
Other 709
Change in non-cash working capital items related to
operating activities (5,402) 6,301
- -------------------------------------------------------------------------------------------------------
NET CASH FLOW FROM OPERATING ACTIVITIES 41,888 51,238
- -------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from long-term debt 223,000
Scheduled repayments of long-term debt (34,880) (44,147)
Prepayments of long-term debt (317,901) (6,533)
Scheduled repayments of capital lease obligation (640)
Decrease (increase) in restricted cash 4,011 (490)
Net proceeds from stock issuance 137,613
Capitalized loan costs (866) (942)
- -------------------------------------------------------------------------------------------------------
NET CASH FLOW FROM FINANCING ACTIVITIES 10,337 (52,112)
- -------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (net of capital
lease financing of $44,550; September 30, 1994 - $0) (47,527) (4,273)
Expenditures for drydocking (4,193) (7,121)
Proceeds from disposition of assets 22,794 4,220
Increase in investment (400)
Proceeds on sale of available-for-sale securities 53,332
Purchases of available-for-sale securities (32,666)
Increase in marketable securities (2,073)
- -------------------------------------------------------------------------------------------------------
NET CASH FLOW FROM INVESTING ACTIVITIES (8,260) (9,647)
- -------------------------------------------------------------------------------------------------------
Increase (decrease) in cash 43,965 (10,521)
Cash, beginning of the period 16,500 38,614
- -------------------------------------------------------------------------------------------------------
CASH, END OF THE PERIOD 60,465 28,093
=======================================================================================================
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
5
<PAGE> 6
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(FORMERLY VIKING STAR SHIPPING INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(ALL TABULAR AMOUNTS STATED IN THOUSANDS OF U.S. DOLLARS)
(INFORMATION AS AT SEPTEMBER 30, 1995, AND FOR THE THREE-MONTH
AND SIX-MONTH PERIODS ENDED SEPTEMBER 30, 1995 AND 1994 IS UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles in the United States and the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures required by generally accepted accounting principles for
complete annual financial statements have been omitted and, therefore,
it is suggested that these interim financial statements be read in
conjunction with the Company's audited financial statements for the
fiscal year ended March 31, 1995. In the opinion of management, these
statements reflect all adjustments (consisting only of normal
recurring accruals), necessary to present fairly, in all material
respects, the Company's consolidated financial position, results of
operations and cash flows for the interim periods presented. The
results of operations for the three-month and six-month periods ended
September 30, 1995 are not necessarily indicative of those for a full
fiscal year.
Certain of the prior period comparative figures have been reclassified
where necessary to conform with the presentation used in the current
period.
2. CHANGE IN ESTIMATE
Effective April 1, 1995, the Company revised its estimates of the
residual values of its vessels. The effect of this change in
estimated residual values was to reduce depreciation expense for the
six-month and three-month periods ended September 30, 1995 by $4.8
million (or $0.22 per common share) and $2.8 million (or $0.11 per
common share), respectively.
3. CASH FLOWS
Cash interest paid during the six-month periods ended September 30,
1995 and 1994 totalled approximately $31,895,000 and $32,421,000,
respectively.
4. INCOME TAXES
The legal jurisdictions of the countries in which the Company and its
subsidiaries are incorporated do not impose income taxes upon
shipping-related activities.
5. LONG-TERM DEBT
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
1995 1995
$ $
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
Revolving Credit Facility 88,000
First Preferred Ship Mortgage Notes (9 5/8%)
U.S. dollar debt due through 2004 151,200 175,000
Floating rate (LIBOR + 1% to 1 1/2%)
U.S. dollar debt due through 2006 472,675 667,874
-----------------------------------------------------------------------------------------------------
711,875 842,874
Less current portion of long-term debt 58,906 74,479
-----------------------------------------------------------------------------------------------------
652,969 768,395
=====================================================================================================
</TABLE>
6
<PAGE> 7
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(FORMERLY VIKING STAR SHIPPING INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(ALL TABULAR AMOUNTS STATED IN THOUSANDS OF U.S. DOLLARS)
(INFORMATION AS AT SEPTEMBER 30, 1995, AND FOR THE THREE-MONTH
AND SIX-MONTH PERIODS ENDED SEPTEMBER 30, 1995 AND 1994 IS UNAUDITED)
5. LONG-TERM DEBT - CONT'D
In May 1995, the Company negotiated a revolving credit facility, (the
"Facility"), with three commercial banks providing for borrowings of
up to $243 million in order to refinance certain of the existing debt
obligations of the Company and to finance vessel acquisitions. The
Facility is collateralized initially by first priority mortgages
granted on fourteen of the Company's Aframax tankers, together with
certain other related collateral, and a guarantee from the Company for
all amounts outstanding under the Facility. The commitment amount
will be reduced in 16 semi-annual instalments commencing six months
after the initial drawdown date, together with a final balloon payment
coincident with the final semi-annual reduction. Interest payments are
based on LIBOR plus a margin ranging from 0.80% to 1.25% which is
dependent on the financial leverage of the Company.
In June 1995, the Company made an initial drawdown on the Facility
in the amount of $223 million and simultaneously prepaid approximately
$204 million in other floating rate debt.
In July 1995, using part of the proceeds from the initial public
offering, the Company prepaid $135 million of the Facility.
During the first quarter of fiscal 1996, the Company retired $23.8
million of its First Preferred Ship Mortgage Notes, utilizing
approximately $18.5 million of funds available under the Facility.
Six of the Company's subsidiaries, Diamond Spirit Inc., Sebarok Spirit
Inc., VSSI Bulkers Inc., VSSI Deepsea Inc., VSSI Star Inc., and VSSI
Ulsan Inc. ("the Guarantor Subsidiaries") have guaranteed the First
Preferred Ship Mortgage Notes due July 2003 issued by Teekay Shipping
Corporation to a maximum of 95% of the fair value of their net assets.
As of September 30, 1995, the fair value of the net assets of the
Guarantor Subsidiaries approximated $201 million.
Condensed financial information regarding the Company, the Guarantor
Subsidiaries and non-guarantor subsidiaries of the Company is set out
on Schedule A of these consolidated financial statements.
6. CAPITAL LEASE OBLIGATION
On August 7, 1995, the Company took delivery of a bareboat hire
purchased vessel which is accounted for as a capital lease.
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
1995 1995
$ $
------------------------------------------------------------------------------------------------------
<S> <C>
Floating rate (LIBOR + 1.25%)
U.S. dollar capital lease due through 2008 43,909
Less current portion of capital lease obligation 2,709
------------------------------------------------------------------------------------------------------
41,200
======================================================================================================
</TABLE>
The Company holds a purchase option on this vessel which is
exercisable, at the Company's discretion, on any monthly lease payment
date at a price equal to the unpaid principal balance of the capital
lease obligation outstanding as at the date the purchase option is
exercised.
7
<PAGE> 8
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(FORMERLY VIKING STAR SHIPPING INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(ALL TABULAR AMOUNTS STATED IN THOUSANDS OF U.S. DOLLARS)
(INFORMATION AS AT SEPTEMBER 30, 1995, AND FOR THE THREE-MONTH
AND SIX-MONTH PERIODS ENDED SEPTEMBER 30, 1995 AND 1994 IS UNAUDITED)
7. CAPITAL STOCK
AUTHORIZED
<TABLE>
<S> <C>
25,000,000 Preferred Stock with a par value of $1 each.
125,000,000 Common Stock with no par value
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
Common Thousands Preferred Thousands
Issued and outstanding Stock of shares Stock of shares
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance March 31, 1994 and 1995 $33,000 36,000 $1 600
May 15, 1995 1-for-2 Reverse Common
Stock Split (18,000)
July 19, 1995 Initial Public Offering
6,900,000 million shares @ $21.50 per share
of Common Stock (net of share issue costs) 137,613 6,900
July 19, 1995 Exchange of Redeemable Preferred
Stock for 2,790,698 shares of Common Stock 60,000 2,791 (1) (600)
------------------------------------------------------------------------------------------------------
Balance September 30, 1995 $230,613 27,691 0 0
======================================================================================================
</TABLE>
Effective May 15, 1995, the Company completed a reverse stock split of
its Common Stock on a 1 for 2 basis, effectively changing its
outstanding Common Stock from 36 million to 18 million shares.
On July 19, 1995, the Company completed its initial public offering of
6,900,000 shares of its Common Stock. The Company's Common Stock was
initially offered at a price of $21.50 per share, resulting in
aggregate net proceeds to the Company of approximately $137.6 million.
$135 million of the net proceeds from the offering was used to reduce
the amounts outstanding under the Company's revolving credit facility.
In conjunction with the completion of the initial public offering, the
Company exchanged all of its outstanding Redeemable Preferred Stock for
2,790,698 shares of Common Stock. The Company has reserved 2,148,571
shares of Common Stock for issuance upon exercise of options granted
pursuant to the Company's 1995 Stock Option Plan, of which options to
purchase up to 796,750 shares of Common Stock, at an exercise price of
$21.50 per share, were granted concurrent with the consummation of the
offering.
Net income (loss) per common share is based upon the weighted average
number of common shares outstanding during each period, after giving
effect to the 1 for 2 reverse stock split. Stock options have not been
included in the computation of net income (loss) per common share since
their effect thereon would not be material.
8
<PAGE> 9
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(FORMERLY VIKING STAR SHIPPING INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(ALL TABULAR AMOUNTS STATED IN THOUSANDS OF U.S. DOLLARS)
(INFORMATION AS AT SEPTEMBER 30, 1995, AND FOR THE THREE-MONTH
AND SIX-MONTH PERIODS ENDED SEPTEMBER 30, 1995 AND 1994 IS UNAUDITED)
8. COMMITMENTS AND CONTINGENCIES
As at September 30, 1995, the Company was committed to a series of
interest rate swap agreements whereby $175 million of the Company's
floating rate debt was swapped with fixed rate obligations having an
average remaining term of 4.5 months. The swap agreements expire
between October 1995 and April 1996. These arrangements effectively
change the Company's interest rate exposure on $175 million of debt
from a floating LIBOR rate to an average fixed rate of 5.68%. The
Company is exposed to credit loss in the event of non-performance by
the counter parties to the interest rate swap agreements; however, the
Company does not anticipate non-performance by any of the counter
parties.
As at September 30, 1995, the Company was a party to interest rate cap
contracts which effectively limit the interest rate exposure on $200
million of the Company's floating rate debt to a maximum of 8%. $100
million of the contracts became effective on February 24, 1995; the
remaining $100 million of contracts became effective on October 2,
1995. All of the contracts expire on April 1, 1997. The premiums paid
by the Company have been recorded at cost and are being amortized over
the lives of the individual contracts. Receipts, if any, under the
interest rate cap contracts are reflected as adjustments to interest
expense since the contracts are designated as hedges in connection with
long-term debt obligations.
As at September 30, 1995, the Company was committed to foreign exchange
contracts for the forward purchase of approximately Japanese Yen 1
billion and Singapore dollars 472,000 for U.S. dollars, at an average
rate of Japanese Yen per 95.18 U.S. dollar and Singapore dollar 1.40
per U.S. dollar, respectively. Of these, contracts for Japanese Yen
850 million are attributable to a hedge in connection with the
Company's 50% portion of a Japanese Yen-denominated-long-term debt
obligation held in Viking Consolidated Shipping Corp., a joint venture
in which the Company has a 50% interest. Foreign exchange gains and
losses, if any, arising from these contracts are reflected as
adjustments to the Company's equity in the results of Viking
Consolidated Shipping Corp. The remaining foreign exchange contracts
are for the purpose of hedging accounts payable and accrued
liabilities.
The Company has guaranteed vessel loans of Viking Consolidated
Shipping Corp. At September 30, 1995, the guaranteed portions of
these loans amounted to $17.8 million.
9. OTHER INCOME
<TABLE>
<CAPTION>
THREE MONTHS SIX MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
------------------- -------------------
1995 1994 1995 1994
$ $ $ $
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gain on disposition of assets 3,728 3,698 3,728 3,698
Loss on marketable securities (180) (653) (110) (2,719)
Foreign currency exchange gain (loss) (455) (96) (513) 39
Equity in results of 50% owned company 1,278 315 704
Miscellaneous - net (53) 42
-------------------------------------------------------------------------------------------------------
4,318 3,264 3,851 1,018
=======================================================================================================
</TABLE>
9
<PAGE> 10
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(FORMERLY VIKING STAR SHIPPING INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(ALL TABULAR AMOUNTS STATED IN THOUSANDS OF U.S. DOLLARS)
(INFORMATION AS AT SEPTEMBER 30, 1995, AND FOR THE THREE-MONTH
AND SIX-MONTH PERIODS ENDED SEPTEMBER 30, 1995 AND 1994 IS UNAUDITED)
10. SUBSEQUENT EVENTS
Subsequent to September 30, 1995, the Company entered into an
agreement for the sale of a vessel for $6.0 million. This sale, if
consummated will result in a net gain of approximately $5.4 million.
Subsequent to September 30, 1995, the Company entered into an
additional $250 million in interest rate swap agreements with three
commercial banks. These swap agreements have an average life of 3
years, expiring between October 1998 and December 1998, and effectively
change the Company's interest rate exposure on $250 million of debt
from a floating LIBOR rate to an average fixed rate of 5.85%.
Subsequent to September 30, 1995, the Company entered into an
agreement to acquire a 1987-built Aframax tanker, whereby the Company
will time-charter the vessel for a period of one year and then
purchase the vessel for $26.5 million.
10
<PAGE> 11
SCHEDULE A
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(FORMERLY VIKING STAR SHIPPING INC.)
CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS
(IN THOUSANDS OF U.S. DOLLARS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30, 1995
---------------------------------------------------------------------------
TEEKAY
TEEKAY GUARANTOR NON-GUARANTOR SHIPPING CORP.
SHIPPING CORP. SUBSIDIARIES SUBSIDIARIES ELIMINATIONS & SUBSIDIARIERIES
$ $ $ $ $
-------------- ------------ ------------ ------------ -----------------
<S> <C> <C> <C> <C> <C>
Revenues 7,400 133,922 (59,662) 81,660
Operating Expenses 226 4,876 117,697 (59,689) 63,110
---------------------------------------------------------------------------
Income from vessel operations (226) 2,524 16,225 27 18,550
Net interest expense (4,116) (55) (9,923) (14,094)
Equity in net income of subsidiaries 13,068 (11,790) 1,278
Other income 48 147 2,845 3,040
---------------------------------------------------------------------------
Net income (loss) 8,774 2,616 9,147 (11,763) 8,774
Retained earnings, beginning of the
period 407,804 16,737 50,774 (67,511) 407,804
---------------------------------------------------------------------------
Exchange of redeemable preferred stock (60,000) (60,000)
Dividends paid
---------------------------------------------------------------------------
Retained earnings, end of the period 356,578 19,353 59,921 (79,274) 356,578
===========================================================================
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30, 1994
---------------------------------------------------------------------------
TEEKAY
TEEKAY GUARANTOR NON-GUARANTOR SHIPPING CORP.
SHIPPING CORP. SUBSIDIARIES SUBSIDIARIES ELIMINATIONS & SUBSIDIARIES
$ $ $ $ $
-------------- ------------ ------------ ------------ -----------------
<S> <C> <C> <C> <C> <C>
Revenues 8,340 137,780 (62,501) 83,619
Operating Expenses 397 6,202 127,212 (62,492) 71,319
---------------------------------------------------------------------------
Income from vessel operations (397) 2,138 10,568 (9) 12,300
Net interest expense (4,401) 130 (10,495) (14,766)
Equity in net income of subsidiaries 5,596 (5,281) 315
Other income 2,949 2,949
---------------------------------------------------------------------------
Net income (loss) 798 2,268 3,022 (5,290) 798
Retained earnings, beginning of the
period 397,364 48,533 81,180 (129,713) 397,364
---------------------------------------------------------------------------
Exchange of redeemable preferred stock
Dividends paid
---------------------------------------------------------------------------
Retained earnings, end of the period 398,162 50,801 84,202 (135,003) 398,162
===========================================================================
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED SEPTEMBER 30, 1995
---------------------------------------------------------------------------
TEEKAY
TEEKAY GUARANTOR NON-GUARANTOR SHIPPING CORP.
SHIPPING CORP. SUBSIDIARIES SUBSIDIARIES ELIMINATIONS & SUBSIDIARIES
$ $ $ $ $
-------------- ------------ ------------ ------------ -----------------
<S> <C> <C> <C> <C> <C>
Revenues 14,592 267,993 (121,641) 160,944
Operating Expenses 697 10,435 238,309 (122,725) 126,716
---------------------------------------------------------------------------
Income from vessel operations (697) 4,157 29,684 1,084 34,228
Net interest expense (7,314) (60) (20,674) (28,048)
Equity in net income of subsidiaries 16,879 (16,175) 704
Other income 1,163 147 1,837 3,147
---------------------------------------------------------------------------
Net income (loss) 10,031 4,244 10,847 (15,091) 10,031
Retained earnings, beginning of the
period 406,547 22,309 84,274 (106,583) 406,547
---------------------------------------------------------------------------
Exchange of redeemable preferred stock (60,000) (60,000)
Dividends paid (7,200) (35,200) 42,400
---------------------------------------------------------------------------
Retained earnings, end of the period 356,578 19,353 59,921 (79,274) 356,578
===========================================================================
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED SEPTEMBER 30, 1994
---------------------------------------------------------------------------
TEEKAY
TEEKAY GUARANTOR NON-GUARANTOR SHIPPING CORP.
SHIPPING CORP. SUBSIDIARIES SUBSIDIARIES ELIMINATIONS & SUBSIDIARIES
$ $ $ $ $
-------------- ------------ ------------ ------------ -----------------
<S> <C> <C> <C> <C> <C>
Revenues 16,223 268,446 (121,898) 162,771
Operating Expenses 801 12,442 246,121 (122,019) 137,345
---------------------------------------------------------------------------
Income from vessel operations (801) 3,781 22,325 121 25,426
Net interest expense (8,659) 285 (20,087) (28,461)
Equity in net income of subsidiaries 7,443 (7,443)
Other income 1,018 1,018
---------------------------------------------------------------------------
Net income (loss) (2,017) 4,066 3,256 (7,322) (2,017)
Retained earnings, beginning of the
period 400,179 46,735 80,946 (127,681) 400,179
---------------------------------------------------------------------------
Exchange of redeemable preferred stock
Dividends paid
---------------------------------------------------------------------------
Retained earnings, end of the period 398,162 50,801 84,202 (135,003) 398,162
===========================================================================
</TABLE>
_________________
(See Note 5)
11
<PAGE> 12
SCHEDULE A
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(FORMERLY VIKING STAR SHIPPING INC.)
CONDENSED BALANCE SHEETS
(IN THOUSANDS OF U.S. DOLLARS)
<TABLE>
<CAPTION>
AS AT SEPTEMBER 30, 1995
-----------------------------------------------------------------------
TEEKAY
TEEKAY GUARANTOR NON-GUARANTOR SHIPPING CORP.
SHIPPING CORP. SUBSIDIARIES SUBSIDIARIES ELIMINATIONS & SUBSIDIARIES
$ $ $ $ $
------------- ------------ ------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash 131 6,607 53,727 60,465
Restricted cash 3,623 3,623
Other current assets 82 1,165 84,979 (90) 86,136
------------------------------------------------------------------------
Total current assets 213 7,772 142,329 (90) 150,224
Vessels and equipment (net) 144,439 1,057,545 1,201,984
Advances due from subsidiaries 509,850 (509,850)
Other assets (principally
investments in subsidiaries) 231,281 4,665 (222,238) 13,708
------------------------------------------------------------------------
741,344 152,211 1,204,539 (732,178) 1,365,916
========================================================================
LIABILITIES & STOCKHOLDERS'
EQUITY
Current liabilities 3,096 1,099 80,597 (93) 84,699
Long-term debt 151,200 501,769 652,969
Capital lease obligation 41,200 41,200
Due to parent 515,335 (515,335)
------------------------------------------------------------------------
Total liabilities 154,296 1,099 1,138,901 (515,428) 778,868
------------------------------------------------------------------------
Stockholders' Equity
Capital stock 230,613 6 5,723 (5,729) 230,613
Contributed capital 131,753 (131,753)
Retained earnings 356,578 19,353 59,921 (79,274) 356,578
Less net unrealized loss on marketable
securities 143 143
------------------------------------------------------------------------
Total stockholders' equity 587,048 151,112 65,644 (216,756) 587,048
------------------------------------------------------------------------
741,344 152,211 1,204,545 (732,184) 1,365,916
========================================================================
</TABLE>
<TABLE>
<CAPTION>
AS AT MARCH 31, 1995
------------------------------------------------------------------------
TEEKAY
TEEKAY GUARANTOR NON-GUARANTOR SHIPPING CORP.
SHIPPING CORP. SUBSIDIARIES SUBSIDIARIES ELIMINATIONS & SUBSIDIARIES
$ $ $ $ $
-------------- ------------ ------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash 97 6,856 9,547 16,500
Restricted cash 7,634 7,634
Other current assets 180 1,287 118,685 (211) 119,941
------------------------------------------------------------------------
Total current assets 277 8,143 135,866 (211) 144,075
Vessels and equipment (net) 162,812 985,226 1,148,038
Advances due from subsidiaries 354,330 (354,330)
Other assets (principally
investments in subsidiaries) 264,302 4,935 (254,876) 14,361
------------------------------------------------------------------------
618,909 170,955 1,126,027 (609,417) 1,306,474
========================================================================
LIABILITIES & STOCKHOLDERS'
EQUITY
Current liabilities 4,843 2,214 92,142 (186) 99,013
Long-term debt 175,000 593,395 768,395
Capital lease obligation
Due to parent 358,223 (358,223)
------------------------------------------------------------------------
Total liabilities 179,843 2,214 1,043,760 (358,409) 867,408
------------------------------------------------------------------------
Stockholders' Equity
Capital stock 33,001 11 5,922 (5,933) 33,001
Contributed capital 138,492 (138,492)
Retained earnings 406,547 30,238 76,345 (106,583) 406,547
Less net unrealized loss on marketable
securities 482 482
------------------------------------------------------------------------
Total stockholders' equity 439,066 168,741 82,267 (251,008) 439,066
------------------------------------------------------------------------
618,909 170,955 1,126,027 (609,417) 1,306,474
========================================================================
</TABLE>
_________________
(See Note 5)
12
<PAGE> 13
SCHEDULE A
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(FORMERLY VIKING STAR SHIPPING INC.)
SCHEDULE A
CONDENSED STATEMENTS OF CASH FLOWS
(IN THOUSANDS OF U.S. DOLLARS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED SEPTEMBER 30, 1995
---------------------------------------------------------------------------------
TEEKAY
TEEKAY GUARANTOR NON-GUARANTOR SHIPPING CORP
SHIPPING CORP. SUBSIDIARIES SUBSIDIARIES ELIMINATIONS & SUBSIDIARIES
$ $ $ $ $
--------------- ------------ -------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
Cash provided by (used for)
OPERATING ACTIVITIES
---------------------------------------------------------------------------------
Net cash flow from operating activities (8,625) 7,658 42,855 41,888
---------------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from long-term debt 223,000 223,000
Repayments of long-term debt (22,580) (330,201) (352,781)
Repayments of capital lease obligations (640) (640)
Net proceeds from stock issuance 137,613 137,613
Other (155,520) (7,200) 165,865 3,145
Financing activities of discontinued
operations
---------------------------------------------------------------------------------
Net cash flow from financing activities (40,487) (7,200) 58,024 10,337
---------------------------------------------------------------------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (168) (51,552) (51,720)
Proceeds from disposition of assets 22,794 22,794
Other 49,146 431 (28,911) 20,666
Investing activities of discontinued operations
---------------------------------------------------------------------------------
Net cash flow from investing activities 49,146 263 (57,669) (8,260)
---------------------------------------------------------------------------------
Increase (decrease) in cash 34 721 43,210 43,965
Cash (deficiency), beginning of the period 97 5,886 16,500 16,500
---------------------------------------------------------------------------------
Cash (deficiency), end of the period 131 6,607 59,710 60,465
=================================================================================
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED SEPTEMBER 30, 1994
---------------------------------------------------------------------------------
TEEKAY
TEEKAY GUARANTOR NON-GUARANTOR SHIPPING CORP
SHIPPING CORP. SUBSIDIARIES SUBSIDIARIES ELIMINATIONS & SUBSIDIARIES
$ $ $ $ $
--------------- ------------ -------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
Cash provided by (used for)
OPERATING ACTIVITIES
---------------------------------------------------------------------------------
Net cash flow from operating activities (8,961) 9,095 51,104 51,238
---------------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from long-term debt
Repayments of long-term debt (50,680) (50,680)
Repayments of capital lease obligations
Net proceeds from stock issuance
Other 8,878 (10,310) (1,432)
Financing activities of discontinued
operations
---------------------------------------------------------------------------------
Net cash flow from financing activities 8,878 0 (60,990) (52,112)
---------------------------------------------------------------------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (472) (10,922) (11,394)
Proceeds from disposition of assets 4,220 4,220
Other (462) 62 (2,073) (2,473)
Investing activities of discontinued operations
---------------------------------------------------------------------------------
Net cash flow from investing activities (462) (410) (8,775) (9,647)
---------------------------------------------------------------------------------
Increase (decrease) in cash (545) 8,685 (18,661) (10,521)
Cash (deficiency), beginning of the period (242) 13,736 25,120 38,614
---------------------------------------------------------------------------------
Cash (deficiency), end of the period (787) 22,421 6,459 28,093
=================================================================================
</TABLE>
_________________
(See Note 5)
13
<PAGE> 14
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(FORMERLY VIKING STAR SHIPPING INC.)
SEPTEMBER 30, 1995
PART I - FINANCIAL INFORMATION
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
GENERAL
Teekay Shipping Corporation (the "Company") is a leading provider of
international crude oil and petroleum product transportation services through
its fleet of 41 predominantly Aframax tankers (including two vessels 50% owned
through a joint venture). The charter rates that the Company is able to obtain
for these services are determined in a competitive global tanker charter
market. Historically, the tanker industry has been cyclical, experiencing
volatility in profitability and asset values resulting from changes in the
supply of and demand for vessel capacity. The Company's future operating
results will be subject to the cyclical nature of the tanker industry.
The Company operates its tankers in markets that have historically exhibited
seasonal variations in demand and, therefore, charter rates. Tanker markets are
typically stronger in the winter months as a result of increased oil
consumption in the northern hemisphere. In addition, unpredictable weather
patterns in the winter months tend to disrupt vessel scheduling. The oil price
volatility resulting from these factors has also historically led to increased
oil trading activities. As a result, revenues have usually been stronger for
the Company in its third and fourth fiscal quarters.
THREE MONTHS ENDED SEPTEMBER 30, 1995 VERSUS THREE MONTHS ENDED SEPTEMBER 30,
1994
Operating results for the second quarter of fiscal 1996 reflected the
improvement in average time charter equivalent ("TCE") rates experienced by the
Company's fleet during the past 12 months. Despite a 9.3% decrease in the
average size of the Company's fleet of 100%-owned vessels from 43 in the second
quarter of fiscal 1995 to 39 in the second quarter of fiscal 1996, voyage
revenues decreased by only 2.3% to $81.7 million from $83.6 million. Net
voyage revenue was down only 0.7%, to $60.0 million in the second quarter of
fiscal 1996 from $60.4 million in the second quarter of fiscal 1995. This
reflects an improvement in TCE rates, as well as the increased capacity and
fuel efficiency associated with the Company's newer fleet. The Company expects
to complete the sale of its last mid-1970s built tanker during the third
quarter of fiscal 1996. The disposal of these older and less efficient vessels
over the past two years has reduced the Company's fleet size and therefore
reduced operating expenses, but has not reduced net voyage revenues to the same
degree.
14
<PAGE> 15
Vessel operating expenses decreased 13.8% to $16.8 million in the second
quarter of fiscal 1996 from $19.5 million in the second quarter of fiscal 1995.
This is a function of the reduced fleet size, as well as the result of a stable
operating cost environment.
Depreciation and amortization decreased 18.0% to $20.1 million in the second
quarter of fiscal 1996 from $24.5 million in the second quarter of fiscal 1995,
again a function of the reduction in fleet size, and as a result of a revision
to estimates of residual values of the Company's vessels. This change in
estimate had the effect of reducing depreciation expense by approximately $2.8
million in the second quarter of fiscal 1996. Depreciation and amortization
expense included amortization of drydocking costs of $2.0 million in the
second quarter of fiscal 1996 and $2.7 million in the second quarter of fiscal
1995.
General and administrative expenses increased 10.1% to $4.5 million in the
second quarter of fiscal 1996 from $4.1 million in the second quarter of fiscal
1995, primarily as a result of costs associated with the acquisition of Teekay
Shipping Limited in March, 1995.
The combination of improved TCE rates, a more modern and efficient fleet,
and stable costs, resulted in a 51.2% increase in income from vessel operations
to $18.6 million in the second quarter of fiscal 1996 from $12.3 million in the
second quarter of fiscal 1995.
A reduction in debt levels caused interest expense to decrease 2.7% to $15.7
million in the second quarter of fiscal 1996 from $16.2 million in the second
quarter of fiscal 1995. As of September 30, 1995, the Company had a total of
$755.8 million in debt and capital lease obligations, down from $894.8 million
a year earlier. Interest income was $1.6 million in the second quarter of
fiscal 1996, up from $1.4 million in the second quarter of fiscal 1995 as a
result of higher cash and marketable securities balances.
Other income totalled $4.3 million in the second quarter of fiscal 1996,
including a $3.7 million gain on the sale of a vessel. Other income in the
second quarter of fiscal 1995 totalled $3.3 million, and also included a $3.7
million gain on the sale of a vessel. Both of these vessels were mid-1970s
built Aframax tankers which are nearing the end of their useful lives.
SIX MONTHS ENDED SEPTEMBER 30, 1995 VERSUS SIX MONTHS ENDED SEPTEMBER 30, 1994
Despite a 9.3% decrease in average size of the Company's fleet of 100%-owned
vessels from 43 to 39, voyage revenues decreased by only 1.1% to $160.9
million in the first half of fiscal 1996 from $162.8 million in the first half
of fiscal 1995, and net voyage revenue was down 2.3%, to $117.5 million from
$120.3 million. This reflects an improvement in tanker charter market
conditions, as well as the increased capacity and fuel efficiency associated
with a more modern fleet.
Vessel operating expenses decreased 12.9% to $33.5 million in the first half of
fiscal 1996 from $38.4 million in the first half of fiscal 1995, a result of
the decline in fleet size as well as the result of a stable operating cost
environment.
Depreciation and amortization decreased 15.1% to $41.0 million in the first
half of fiscal 1996 from $48.2 million in the first half of fiscal 1995, due to
the decline in fleet size and a revision to estimates of residual values of the
Company's vessels. This change in estimate had the effect of reducing
depreciation expense by approximately $4.8 million in the first half of fiscal
1996. Depreciation and amortization expense included amortization of
drydocking costs of $4.2 million in the first half of fiscal 1996 and $5.0
million in the first half of fiscal 1995.
General and administrative expenses increased 8.2% to $8.8 million in the first
half of fiscal 1996 from $8.1 million in the first half of fiscal 1995 primarly
as a result of the acquisition of Teekay Shipping Limited in March, 1995.
15
<PAGE> 16
As a result of the above, income from vessel operations increased 34.6% to
$34.2 million in the first half of fiscal 1996 from $25.4 million in the first
half of fiscal 1995.
Interest expense remained virtually unchanged at $31.2 million in the first
half of fiscal 1996, compared to $31.4 million in the first half of fiscal
1995. A continued decline in the Company's total debt and a reduction in the
Company's average credit spread on commercial bank borrowings were offset by
the increase in short-term interest rates during 1994. Changes in market
interest rates have had a delayed effect on interest expense, as rates on the
Company's floating rate debt are set in advance, for three to six month periods.
Interest income increased 9.6% to $3.2 million in the first half of fiscal 1996
from $2.9 million in the first half of fiscal 1995 as a result of higher cash
and marketable securities balances.
Other income during the first half of fiscal 1996 was $3.9 million, consisting
primarily of a $3.7 million gain on sale of a vessel. Other income during the
first half of fiscal 1995 was $1.0 million, consisting primarily of a $3.7
million gain on the sale of a vessel, offset by a $2.7 million loss on
marketable securities.
The following table illustrates the relationship between fleet size (measured
in ship-days), time charter equivalent ("TCE") per revenue-generating ship-day
performance, and operating results per calendar ship-day:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
SEPT 30/95 SEPT 30/94 SEPT 30/95 SEPT 30/94
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Calendar ship-days 3,603 3,955 7,080 7,868
Non-revenue days 188 217 345 459
----------------------------------------------------------------------------------------------
Revenue-generating ship-days (A) 3,415 3,738 6,735 7,409
----------------------------------------------------------------------------------------------
Net voyage revenue $ 60.0m $ 60.4m $ 117.5m $ 120.3m
Add back: commissions 1.4m 1.3m 2.6m 2.5m
----------------------------------------------------------------------------------------------
Net voyage revenue before
commissions (B) $ 61.4m $ 61.7m $ 120.1m $ 122.8m
----------------------------------------------------------------------------------------------
TCE per revenue-generating
ship-day (B/A) $ 17,979 $ 16,518 $ 17,828 $ 16,575
----------------------------------------------------------------------------------------------
Operating results per calendar ship-day:
Net voyage revenue $ 16,653 $ 15,284 $ 16,596 $ 15,284
Vessel operating expense 4,671 4,939 4,731 4,886
General and Administrative
expense 1,262 1,044 1,245 1,035
Drydocking expense 570 689 590 631
----------------------------------------------------------------------------------------------
Operating cash flow per
calendar ship-day $ 10,150 $ 8,612 $ 10,030 $ 8,732
==============================================================================================
</TABLE>
The decrease in calendar ship-days in the second quarter and first half of
fiscal 1996, is a result of the disposal of older Aframax tankers as part
of the Company's ongoing fleet modernization program.
TCE per revenue-generating ship-day increased 8.8% in the second quarter and
7.6% in the first half of fiscal 1996 over the comparable prior periods,
reflecting the improvement in charter market conditions as well as the
increased capacity and fuel efficiency of a more modern fleet.
16
<PAGE> 17
Total expenses, including drydocking and general and administrative expenses,
were relatively constant on a per-day basis throughout the periods shown above.
Therefore, the increases in TCE per revenue-generating ship-day caused
operating cash flow per calendar ship-day to increase by 17.9% in the second
quarter and 14.9% in the first half of fiscal 1996.
LIQUIDITY AND CAPITAL RESOURCES
The liquidity requirements of the Company relate to servicing its debt, funding
the equity portion of investments in vessels, funding working capital and
maintaining cash reserves against fluctuations in operating cash flow. Net
cash flow generated by operations has historically been the main source of
liquidity for the Company. Additional sources of liquidity have included
proceeds from asset sales and refinancings.
During the current fiscal year, the Company has undertaken further steps to
improve its financial position and liquidity. During the first quarter,
the Company refinanced certain of its existing term debt as well as
$23.8 million of First Preferred Ship Mortgage Notes with a new $223 million
corporate revolving credit facility at improved rates and credit terms.
The revolving credit facility also provided an additional $20 million of
liquidity to the Company. In July 1995, the Company received $137.6 million
net proceeds from its initial public offering of common stock, thereby further
boosting liquidity and reducing debt through a $135 million reduction in the
amount outstanding under the revolving credit facility.
Net cash flow from operations decreased to $41.9 million in the first half of
fiscal 1996 from $51.2 million during the first half of fiscal 1995. The
decrease was mainly caused by an increase in non-cash working capital balances,
partially offset by higher income from operations.
One vessel was sold during the second quarter of fiscal 1996, resulting in net
proceeds of $5.6 million. In addition, the Company received $17.3 million in
the first quarter of fiscal 1996 as a result of a vessel sale and the receipt
of proceeds from vessel sales receivable at the end of fiscal 1995.
Subsequent to September 30, 1995, the Company entered into an agreement for the
sale of a vessel for $6.0 million. This sale, if consummated, will result in
a net gain of approximately $5.4 million.
The Company took delivery of two modern second-hand Aframax tankers and one
newbuilding during the first half of fiscal 1996, as replacements for older
tankers recently sold, resulting in expenditures of $46.9 million net of
capital lease financing of $44.6 million. Subsequent to September 30, 1995, the
Company entered into an agreement to acquire a 1987-built Aframax tanker,
whereby the Company will time-charter the vessel for a period of one year and
then purchase the vessel for $26.5 million. The Company intends to finance this
purchase by using existing cash balances or credit lines.
The Company has outstanding a number of interest rate swap agreements with
commercial banks covering a total notional principal amount of $175 million as
at September 30, 1995. The agreements expire between October 1995 and April
1996 and have an average remaining life of 4.5 months. These agreements
effectively change the Company's interest rate exposure on $175 million of debt
from a floating LIBOR rate to an average fixed rate of 5.68%. Subsequent to
September 30, 1995, the Company entered into an additional $250 million in
interest rate swap agreements with three commercial banks. These new swap
agreements have an average life of 3 years, expiring between October 1998 and
December 1998, and effectively change the Company's interest rate exposure on
$250 million of debt from a floating LIBOR rate to an average fixed rate of
5.85%. The Company also has outstanding $200 million of interest rate caps
with a strike price of 8.00% vs. 3 month LIBOR. These caps expire in
April 1997.
During the first half of fiscal 1996, the Company's total liquidity, including
cash, marketable securities and undrawn lines of credit, increased from $85.7
million as of March 31, 1995 to $244.3 million as of September 30, 1995.
17
<PAGE> 18
TEEKAY SHIPPING CORPORATION AND SUBSIDIARIES
(FORMERLY VIKING STAR SHIPPING INC.)
SEPTEMBER 30, 1995
PART II: OTHER INFORMATION
Item 1 - Legal Proceedings
Item 2 - Changes in Securities
Item 3 - Defaults Upon Senior Securities
Item 4 - Submission of Matters to a Vote of Security Holders
Item 5 - Other Information
Item 6 - Exhibits and Reports on Form 6-K
a. Exhibits
27.1 Financial Data Schedule
b. Reports on Form 6-K
THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO THE
REGISTRATION STATEMENT OF THE COMPANY ON FORM F-3 FILED WITH THE COMMISSION ON
OCTOBER 4, 1995.
18
<PAGE> 19
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TEEKAY SHIPPING CORPORATION
Date: November 9, 1995 By: /s/ Anthony Gurnee
------------------- ------------------------------------------
Anthony Gurnee,
Vice-President and Chief Financial Officer
19
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM TEEKAY
SHIPPING CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 60,465
<SECURITIES> 48,802
<RECEIVABLES> 20,948
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 150,224
<PP&E> 1,546,220
<DEPRECIATION> 344,236
<TOTAL-ASSETS> 1,365,916
<CURRENT-LIABILITIES> 84,699
<BONDS> 694,169
<COMMON> 230,613
0
0
<OTHER-SE> 356,435
<TOTAL-LIABILITY-AND-EQUITY> 1,365,916
<SALES> 0
<TOTAL-REVENUES> 160,944
<CGS> 0
<TOTAL-COSTS> 43,452
<OTHER-EXPENSES> 83,264
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 31,230
<INCOME-PRETAX> 10,031
<INCOME-TAX> 0
<INCOME-CONTINUING> 10,031
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,031
<EPS-PRIMARY> 0.46
<EPS-DILUTED> 0.46
</TABLE>
