Teekay Corporation Announces New Australian Government Contract

Rhea-AI Summary

Teekay Corporation (NYSE:TK) has secured a six-year contract with the Australian Government Department of Defence to provide marine services for five vessels, including options for an additional ten years. Commencing in November 2021, the contract involves ship management services such as crewing, training, maintenance, and supply support. This partnership enhances Teekay's asset-lite services and strengthens its strategic relationship with the Australian Government. With this addition, Teekay will manage a total of nine Australian vessels, creating growth opportunities for its marine services business.

Positive

• Secured a six-year contract with the Australian Government for marine services.
• Options to extend the contract for an additional ten years.
• Enhances Teekay's asset-lite services segment.
• Strengthens strategic relationship with the Australian Government.

Negative

• Potential risks regarding contract start-up delays.
• Higher than expected costs and expenses could impact profitability.
• Possibility of early termination of the contract affecting revenue.

HAMILTON, Bermuda, Sept. 07, 2021 (GLOBE NEWSWIRE) -- Teekay Corporation (Teekay or the Company) (NYSE:TK) announces that it has entered into a contract with the Australian Government Department of Defence to provide marine services for five Australian Government vessels for a firm period of six years, with options to extend for up to an additional 10 years. Under the contract, which is expected to commence in November 2021, Teekay will provide ship management services, including crewing and training, operating, engineering, maintenance, and supply support.

“This is another example of how we can generate value from the Teekay franchise and allows us to expand our asset-lite services segment,” commented Kenneth Hvid, Teekay’s President and CEO. “In addition, this contract further builds on our strategic relationship with the Australian Government, where we will now provide services for a total of nine Australian Government vessels, and it provides a solid foundation from which to further grow this business.”

About Teekay

Teekay is a leading provider of international crude oil and gas marine transportation services. Teekay provides these services primarily through its directly-owned fleet and its controlling ownership interests in Teekay LNG Partners L.P. (NYSE:TGP), one of the world’s largest independent owners and operators of LNG carriers, and Teekay Tankers Ltd. (NYSE:TNK), one of the world’s largest owners and operators of mid-sized crude tankers. The consolidated Teekay entities manage and operate total assets under management of approximately $9 billion, comprised of more than 130 liquefied gas carriers, conventional tankers, and other marine assets. With offices in 10 countries and approximately 5,350 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services primarily to the world’s leading oil and gas companies.

Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.

For Investor Relations
enquiries contact:

Ryan Hamilton
Tel: +1 (604) 609-2963
Website: www.teekay.com

Forward Looking Statement

This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements, among other things, regarding: the timing of contract start-up; the duration of the contract; the expected value from the contract; and future growth of the Company’s marine services business.

The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: higher than expected costs and expenses; delays in contract start-up; early termination of the contract; the future demand for such marine services; and other factors discussed in Teekay’s filings from time to time with the SEC, including its Annual Report on Form 20-F for the fiscal year ended December 31, 2020. Teekay expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Teekay’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

FAQ

What is the new contract Teekay Corporation has secured with the Australian Government?

Teekay Corporation has secured a six-year contract to provide marine services for five Australian Government vessels.

When will the contract with the Australian Government commence?

The contract is expected to commence in November 2021.

What services will Teekay provide under the new Australian Government contract?

Teekay will provide ship management services including crewing, training, maintenance, and supply support.

How does this contract impact Teekay’s business growth?

This contract enhances Teekay's asset-lite services segment and strengthens its relationship with the Australian Government, providing growth opportunities.

What are the risks associated with Teekay's new contract?

Risks include potential delays in contract start-up, higher costs, and possible early termination.