Teekay Acquires Spanish LNG and Oil Shipping Company

Tuesday, March 16, 2004
Teekay Shipping Corporation has entered into a definitive agreement to acquire Naviera F. Tapias S.A. Teekay has also entered into an agreement with the shareholders of Tapias to establish a 50/50 joint venture that will pursue new business in the oil and gas shipping sectors, focusing specifically on the Spanish market. The Tapias acquisition will establish Teekay's presence in LNG shipping, one of the fastest growing sectors of sea-borne energy transportation. It will position the Company as a key supplier of LNG shipping to Spain, the world's third largest importer of LNG, and provide a strategic growth platform for Teekay. As a major provider of crude oil transportation to Spain, the acquisition of Tapias will also extend Teekay's leading position in the crude oil tanker sector.

Tapias has established itself as a high quality operator with a modern fleet of LNG carriers and crude oil tankers. Its LNG fleet consists of four vessels, including two newbuildings scheduled for delivery in the second half of 2004. All four vessels are contracted under long-term fixed-rate charters to major Spanish energy companies. Tapias' conventional crude oil tanker fleet consists of nine Suezmax tankers, including three newbuildings scheduled for delivery in 2004 and 2005. Five of these vessels are contracted under long-term fixed-rate charters with a major Spanish oil company. The average remaining terms of these LNG and Suezmax charter contracts are approximately 21 and 18 years, respectively. The other four Suezmax tankers, two of which are currently trading under short-term contracts, are expected to join Teekay's spot tanker fleet during the next 18 months. "We are excited about the strategic benefits this acquisition provides to Teekay: it accelerates our entry into the high growth LNG shipping market in a profitable but low risk manner; it significantly increases our cash flow from vessel operations stemming from long-term, fixed-rate contracts; and it provides us with further operating leverage to the spot tanker market at an opportune time," said Bjorn Moller, President and Chief Executive Officer of Teekay. "We are also excited about the growth opportunities for our new joint venture with the existing shareholders of Tapias. This venture will focus on leveraging Teekay's strong balance sheet and large, high-quality fleet in combination with Tapias' leading market position and strong growth prospects in Spain." Teekay will acquire Tapias for a total enterprise value of approximately $810 million through a combination of cash, and the assumption of existing debt. In addition, Teekay will assume approximately $540 million in newbuilding commitments, most of which is expected to be fully debt financed prior to the vessel deliveries, thereby requiring a relatively small total cash outlay by the Company. Teekay expects the acquisition to be immediately accretive to earnings and to provide cash flow from vessel operations of approximately $85 million in 2004 (on an annualized basis), $120 million in 2005 and $125 million annually thereafter, following delivery of the newbuildings. Mr. Moller added, "Tapias' long-term charter contracts with financially strong customers will add significantly to Teekay's fixed-rate segment. We anticipate that the acquisition will further increase Teekay's annualized cash flow from vessel operations from long-term fixed-rate contracts to approximately $400 million by the end of 2005." The transaction, which is subject to customary closing conditions, is expected to close by April 30, 2004.

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

MARAD to Host Meeting on Proposed Delfin LNG License

MARAD Announces Public Scoping Meetings for Proposed Delfin Liquefied Natural Gas Deepwater Port Export Facility.   On July 29, the Maritime Administration

Substantial Demand Underscores Need for TIGER Grants

U.S. Transportation Secretary Anthony Foxx has announced that applications to the U.S. Department of Transportation for its seventh round of Transportation Investment

Maritime Museum Christens San Salvador Replica

The Spanish ship San Salvador is the embodiment of California’s origin story. The ship’s voyage in 1542, with Juan Rodríguez Cabrillo at the helm, established California

Bulk Carrier Trends

ClassNK Releases Guidelines for CNG Carriers

Classification society ClassNK has released its Guidelines for Compressed Natural Gas (CNG) Carriers.   Global economic and population growth is bringing about

Asia Dry Bulk-Capesize Rates Could Soften

Capesize market "overheated" as rates near eight-month highs; optimism for a busier fourth quarter looms. Freight rates for capesize bulk carriers are likely

Vale Sells Four 'ValeMax' Bulkers to China Merchants

Brazilian mining company Vale SA said on Thursday that it expects to receive $448 million from the sale of four dry-bulk iron ore ships to China's state-owned China

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1324 sec (8 req/sec)