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<SEC-DOCUMENT>0000911971-03-000023.txt : 20030425
<SEC-HEADER>0000911971-03-000023.hdr.sgml : 20030425
<ACCEPTANCE-DATETIME>20030425170046
ACCESSION NUMBER:		0000911971-03-000023
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030425
FILED AS OF DATE:		20030425

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TEEKAY SHIPPING CORP
		CENTRAL INDEX KEY:			0000911971
		STANDARD INDUSTRIAL CLASSIFICATION:	DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT [4412]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			C5
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12874
		FILM NUMBER:		03665207

	BUSINESS ADDRESS:	
		STREET 1:		TK HOUSE, BAYSIDE EXECUTIVE PARK
		STREET 2:		WEST BAY ST & BLAKE RD, PO BOX AP-59213
		CITY:			NASSAU BAHAMAS
		STATE:			C5
		ZIP:			00000
		BUSINESS PHONE:		8093228020

	MAIL ADDRESS:	
		STREET 1:		1 BENTALL CENTRE,STE 1400,505 BURRARD ST
		STREET 2:		VANCOUVER, BRITISH COLUMBIA
		CITY:			CANADA V7X 1M5
		STATE:			A6
		ZIP:			00000

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VIKING STAR SHIPPING INC
		DATE OF NAME CHANGE:	19930914
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>form6k_042503.htm
<DESCRIPTION>FORM 6K DATED APRIL 25, 2003
<TEXT>
<HTML>
<HEAD>
<TITLE>TEEKAY SHIPPING CORPORATION</TITLE>
</HEAD>
<BODY>
<H1 ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=5>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</FONT></H1>

<H1 ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=3><u><B>WASHINGTON, D.C. 20549</B></u>
</FONT>
</H1>

<BR>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>FORM 6-K</FONT></H1>

<P ALIGN=CENTER>Report of Foreign Private Issuer</P>
<P ALIGN=CENTER>Pursuant to Rule 13a-16 or 15d-16 of<BR>
the Securities Exchange Act of 1934</P>

<hr width=15% size=1 noshade>

                                   <P ALIGN=CENTER>Date of report:  April 25, 2003<BR>
<BR>
                                            <FONT SIZE=4><B>TEEKAY SHIPPING CORPORATION</B></FONT><BR>
                              (Exact name of Registrant as specified in its charter)<BR>
<BR>
                                                     TK House<BR>
                                              Bayside Executive Park<BR>
                                           West Bay Street &amp; Blake Road<BR>
                                        P.O. Box AP-59213, Nassau, Bahamas<BR>
                                      (Address of principal executive office)<BR></P>

<hr width=15% size=1 noshade>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.]</P>

<P ALIGN=CENTER>Form 20-F&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Form 40- F&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[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.]</P>

<P ALIGN=CENTER>Yes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule
12g3-2(b):82-<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>]</P>
<BR>
<BR>
<BR>
<BR>
<BR>

<P><B>Item 1 - Information Contained in this Form 6-K Report</B></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR>
<TD WIDTH=5% ALIGN=CENTER></TD>
<TD WIDTH=95%>Attached as Exhibit I is a copy of an announcement of Teekay Shipping Corporation (the &#147;Company&#148;), dated
April 23, 2003.</TD>
</TR>
</TABLE>
<BR>
<BR>
<p>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.</p>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>SIGNATURES</FONT></H1>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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.
</P>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR>
<TD WIDTH=45% VALIGN=MIDDLE>
Date:    April 25, 2003
</TD>
<TD WIDTH=55% VALIGN=TOP>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TEEKAY SHIPPING CORPORATION
<BR>
<BR>
<BR>
<BR>
By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>/s/ Peter S. Antturi&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peter S. Antturi<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President and Chief Financial Officer<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Financial and Accounting Officer)<BR>
</TD>
</TR>
</TABLE>
<BR>
<BR>
<BR>
<BR>
<BR>
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B>EXHIBIT I</B></FONT></P><BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=4><B>TEEKAY SHIPPING CORPORATION</B></FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=3>
TK House, Bayside Executive Park, West Bay Street &amp; Blake Road <BR>
P.O. Box AP-59213,
Nassau, Bahamas</FONT></P>

<H2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif">EARNINGS RELEASE</FONT></H2>
<BR> <HR><CENTER><B>TEEKAY SHIPPING CORPORATION<BR>
REPORTS FIRST QUARTER RESULTS</B></CENTER>
<HR>
<BR>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>1st Quarter Highlights</U></FONT></H2>

<ul>
<li>Net income of $53.6 million, or $1.32 per share (net of $31.7 million or $0.78 per share in non-cash write-downs)
<li>International Fleet TCE earnings of $33,873 per day
<li>Income from vessel operations of $103.5 million
<li>Completed acquisition of Navion ASA on April 7, 2003
</ul>
<BR>
<P>Nassau, The Bahamas,  April 23, 2003 - Teekay Shipping  Corporation today reported net income of $53.6 million, or $1.32 per share, for
the quarter ended March 31, 2003,  compared to net income of $15.7 million,  or $0.39 per share,  for the quarter ended March 31, 2002.
The results for the quarter  ended March 31, 2003 included a $26.8  million,  or $0.66 per share,  write-down in the carrying  value of
certain older vessels,  including three vessels sold in April 2003, and a $4.9 million, or $0.12 per share,  write-down in the carrying
value of certain marketable  securities.  Excluding these non-cash charges,  the Company would have had net income of $85.3 million, or
$2.10 per share,  for the quarter ended March 31, 2003.  Net voyage  revenues for the quarter were $212.9  million,  compared to $136.2
million recorded in the same period in 2002, while income from vessel operations increased to $103.5 million from $32.8 million.
The following key indicators serve to highlight changes in operating performance:</P>
<BR>
<pre>
- ----------------------------------------------------------------------------------------------------------------------------------------
<B>                                                   Three Months Ended        Three Months Ended       Three Months Ended
                                                        March 31,                December 31,              March 31,
                                                          2003                      2002                     2002</B>
- ----------------------------------------------------------------------------------------------------------------------------------------
<B>International Tanker Fleet:</B>
Revenue-generating ship-days                              4,731                      5,186                     4,864
TCE per revenue-generating ship-day                     $33,873                    $20,562                   $18,862
TCE per calendar-ship-day                               $29,609                    $18,689                   $16,679
Vessel operating expense per calendar-ship-day           $5,645                     $5,213                    $5,511
Operating cash flow per calendar-ship-day               $21,010                    $10,659                    $8,573

<B>Oil/Bulk/Ore (&#147;OBO&#148;) Fleet:</B>
Revenue-generating ship-days                                684                        658                       633
TCE per revenue-generating ship-day                     $19,620                    $14,704                   $11,406
TCE per calendar-ship-day                               $17,775                    $12,500                    $9,450
Vessel operating expense per calendar-ship-day           $6,258                     $6,678                    $5,901
Operating cash flow per calendar-ship-day                $8,116                     $2,196                      $684

<B>UNS Fleet:</B>
Calendar-ship-days                                        1,249                      1,148                     1,080
Operating cash flow per calendar-ship-day               $14,697                    $16,624                   $14,984

<B>Australian Fleet:</B>
Calendar-ship-days                                          450                        460                       450
Operating cash flow per calendar-ship-day               $14,446                    $14,821                   $15,780
- ----------------------------------------------------------------------------------------------------------------------------------------
</PRE>
<BR>
<BR>
<BR>
<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Tanker Market</U></FONT></H2>

<P>Tanker rates continued to strengthen  during the first quarter of 2003,  primarily  driven by increased oil  production,  shifts in oil
production sources, and heightened charterer  discrimination against older tonnage.  Global oil supply rose to 79.0 million barrels per
day (&#147;mb/d&#148;) in the first  quarter of 2003  compared to 77.9 mb/d in the previous  quarter and 76.1 mb/d in the first  quarter of 2002.
In addition,  tanker ton-mile demand  increased as long-haul oil  transportation  from the Middle East replaced  disrupted oil supplies
from Venezuela, Nigeria and Iraq.</P>

<P>Global oil demand, an underlying driver of tanker demand,  was estimated by the International  Energy Agency (&#147;IEA&#148;) to be 78.4 mb/d in
the first  quarter of 2003,  a decline of 0.3 mb/d  compared to the previous  quarter but 1.8 mb/d higher than in the first  quarter of
2002. As of April 10, 2003, the IEA was forecasting oil demand of 78.0 mb/d for 2003, a 1.5% increase over 2002.
The size of the world tanker fleet  increased to 313.3 million  deadweight  tons (&#147;mdwt&#148;) as of March 31, 2003, up 1.9% from the end of
the previous quarter.  A total of 3.0 mdwt was sold for demolition or otherwise  removed from the fleet in the first quarter,  compared
to 3.9 mdwt in the previous quarter,  while deliveries of tanker  newbuildings  during the first quarter totalled 8.4 mdwt, up from 7.3
mdwt in the previous quarter.</P>

<P>As of March 31, 2003, the world tanker  orderbook was 64.9 mdwt,  representing  20.7% of the total world tanker fleet,  compared
to 59.1 mdwt,  or 19.2%,  at the end of the previous  quarter.  The Aframax  tanker  orderbook as of March 31, 2003 was at 125 ships or
18.9% of the existing fleet, down from 130 ships or 20.3% as of December 31, 2002.</P>

<P>On March 27, 2003, the EU Transport  Council approved  proposed  regulations that would  immediately ban the carriage of &#147;heavy oil&#148; on
single hull vessels in European  waters and accelerate  the phase out of single hull tonnage.  The proposed  regulations  are scheduled
for review in early June 2003 by the EU Parliament,  and if approved as proposed,  it is expected that the regulations  would come into
effect on July 1, 2003. In addition,  the EU has put forward these  regulations to the International  Maritime  Organization for review
at the Marine Environment Protection Committee meeting in July 2003.</P>
<BR>
<BR>
<BR>
<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Teekay Fleet</U></FONT></H2>

<P>As of March 31, 2003,  the Teekay fleet  (excluding  Navion&#146;s fleet and vessels  managed for third  parties)  consisted of 105 vessels,
including five  time-chartered-in  Aframax  tankers and 15 newbuilding  tankers on order.  During the first quarter,  Teekay  exercised
options to order four  additional  high-specification  Aframax  newbuildings  for an  aggregate  cost of  approximately  $155  million,
including  construction  supervision costs and capitalized  interest.  The new vessels will be 115,000 dwt each and are scheduled to be
delivered in 2005. On March 10, 2003,  Teekay took  delivery of an Aframax  shuttle  tanker  newbuilding,  which  commenced a long-term
charter for seven years.</P>

<P>The ALLIANCE  SPIRIT,  a 1989-built  Aframax  tanker,  was declared a  constructive  total loss for  insurance  purposes  following its
grounding on February 1, 2003 off the coast of Algeria  during severe  weather  conditions.  There were no injuries to any crew members
nor was there any pollution as the vessel was not carrying cargo at the time of the incident.</P>

<P>The following is a summary of the Teekay fleet as of March 31, 2003:</P>

<PRE>
- ----------------------------------------------------------------------------------------------------------------------------------------
    <B>Type                                                Number                                             Dwt</B>
- ----------------------------------------------------------------------------------------------------------------------------------------
    International Tanker Fleet:
        100%-owned Aframaxes                              52                                            5,201,600
        Time-chartered-in Aframaxes                        5                                              515,800
        Newbuilding Aframaxes on order                    11                                            1,249,000
        Newbuilding Suezmaxes on order                     3                                              456,000
        VLCC                                               1                                              280,700
    OBO Fleet (1)                                          8                                              625,900
    Australian Fleet                                       5                                              381,900
    UNS Fleet:
        Shuttle Tankers (2)                               19                                            1,981,400
        Newbuilding Shuttle Tankers on order               1                                              147,500
- ----------------------------------------------------------------------------------------------------------------------------------------
    <B>Total:</B>                                               105                                           10,839,800
- ----------------------------------------------------------------------------------------------------------------------------------------
</PRE>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(1) Includes one 67%-owned OBO carrier and one 52%-owned OBO carrier.<BR>
(2) Includes seven shuttle tankers of which Teekay&#146;s ownership interest ranges from 50% to 89%.</FONT></P>
<BR>
<P>In April 2003,  Teekay sold the TEEKAY FULMAR, a 1983-built  Aframax OBO carrier,  the CLARE SPIRIT, a 1986-built  Aframax tanker,  and
the SHANNON  SPIRIT a 1987-built  Aframax  tanker.  Of the total vessel  write-down  of $26.8  million  included in the results for the
quarter ended March 31, 2003, $13.9 million related to these three vessels.</P>
<BR>
<BR>
<BR>
<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Other Highlights</U></FONT></H2>

<P>On April 7, 2003,  Teekay  successfully  completed its acquisition of Navion ASA, the wholly-owned  shipping  subsidiary of Statoil ASA
(NYSE:  STO, OSE:  STL),  on a debt free basis,  for  approximately  $800 million in cash. In  accordance  with  accounting  principles
generally  accepted in the United  States,  Navion&#146;s  results will be  consolidated  with Teekay&#146;s  commencing  from April 7, 2003 (the
closing date); however, the effective date of the transaction (i.e. the date economic benefit was transferred) was January 1, 2003.</P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>About Teekay</U></FONT></H2>

<P>Teekay Shipping  Corporation is a leading provider of international  crude oil and petroleum  product  transportation  services through
the world&#146;s  largest fleet of  medium-sized  oil tankers.  With offices in 12 countries,  Teekay  employs more than 4,200  seagoing and
shore-based  staff around the world. The Company&#146;s fleet has earned a reputation for safety and excellence in providing  transportation
services to major oil companies, oil traders and government agencies worldwide.</p>

<P>Teekay&#146;s common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".</P>

<P>The  Company  plans to host a  conference  call at 11:00 a.m.  EDT (8:00 a.m.  PDT) on April 24,  2003,  to discuss the results for the
quarter.  All  shareholders  and  interested  parties are  invited to listen to the live  conference  call  through  <u>www.teekay.com</u>.  A
recording of the call will be available  until May 1, 2003 by dialing  (719)  457-0820,  access code 410005,  or via the  Company&#146;s Web
site until May 24, 2003.</P>
<BR>
<BR>
<BR>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Use of Non-GAAP Financial Information </u></FONT></H2>

<P>Teekay provides certain non-GAAP financial measures as additional  information  relating to its operating results.  Teekay&#146;s management
believes that the presentation of these measures provides useful information to investors  regarding certain  additional  financial and
business  trends  relating to its  financial  condition and results of  operations.  These  measures are not in accordance  with, or an
alternative to,  generally  accepted  accounting  principles and may be different from non-GAAP  measures used by other  companies.  In
addition to GAAP  financial  measures,  Teekay has presented in this earnings  release net income and diluted  earnings per share on an
adjusted basis,  excluding write-downs in the carrying value of certain vessels and marketable securities (see attached  reconciliation
schedule).</P>

                                            <CENTER>Contact: Investor Relations<BR>
                                               Attn: Jerome Holland<BR>
                                                  (604) 844-6654<BR>
                                             Web site: <u>www.teekay.com</u></CENTER>
<BR>
<BR>
<BR>
<BR>
<BR>
<HR><CENTER><B>
SUMMARY CONSOLIDATED STATEMENTS OF INCOME</B><BR>
(in thousands of U.S. dollars, except share and per share data)</CENTER>
<HR>

<PRE>
- --------------------------------------------------------------------------------------------------------------------------------------------
<B>                                           <U>Three Months Ended</U>              <U>Three Months Ended</U>              <U>Three Months Ended</U>
                                                <U>March 31,</U>                       <U>December 31,</U>                    <U>March 31,</U>
                                                    <U>2003</U>                            <U>2002</U>                            <U>2002</U>
                                               <U>(unaudited)</U>                     <U>(unaudited)</U>                     <U>(unaudited)</U></B>
- --------------------------------------------------------------------------------------------------------------------------------------------

<B>NET VOYAGE REVENUES</B>
Voyage revenues                                    282,232                         222,835                         188,630
Voyage expenses                                     69,334                          67,691                          52,471
- --------------------------------------------------------------------------------------------------------------------------------------------
Net voyage revenues                                212,898                         155,144                         136,159
- --------------------------------------------------------------------------------------------------------------------------------------------
<B>OPERATING EXPENSES</B>
Vessel operating expenses                           42,646                          40,620                          40,387
Time-charter hire expense                           12,911                          12,309                          12,714
Depreciation and amortization                       39,130                          39,160                          36,078
General and administrative                          14,727                          14,422                          14,167
- --------------------------------------------------------------------------------------------------------------------------------------------
                                                   109,414                         106,511                         103,346
- --------------------------------------------------------------------------------------------------------------------------------------------
Income from vessel operations                      103,484                          48,633                          32,813
- --------------------------------------------------------------------------------------------------------------------------------------------
<B>OTHER ITEMS</B>
Interest expense                                   (14,386)                        (14,120)                        (14,701)
Interest income                                        846                             803                             792
Write-down of vessels                              (26,792)                              -                               -
Other loss                                          (9,573)                         (2,210)                         (3,213)
- --------------------------------------------------------------------------------------------------------------------------------------------
                                                   (49,905)                        (15,527)                        (17,122)
- --------------------------------------------------------------------------------------------------------------------------------------------
Net income                                          53,579                          33,106                          15,691
============================================================================================================================================
Earnings per common share
- - Basic                                              $1.35                           $0.83                           $0.40
- - Diluted                                            $1.32                           $0.82                           $0.39
- --------------------------------------------------------------------------------------------------------------------------------------------
Weighted-average number of
common shares outstanding
- - Basic                                         39,740,399                      39,668,835                      39,554,461
- - Diluted                                       40,451,189                      40,273,565                      40,254,683
============================================================================================================================================
</pre>
<BR>
<BR>
<BR>
<HR><CENTER><B>SUMMARY CONSOLIDATED BALANCE SHEETS</B><BR>
(in thousands of U.S. dollars)</CENTER>
<HR>

<PRE>
<B>                                                                    <U>As at March 31,</U>                        <U>As at December 31,</U>
                                                                        <U>2003</U>                                      <U>2002</U>
                                                                     <U>(unaudited)</U> </B>
<B>ASSETS</B>
Cash and cash equivalents                                                247,639                                 284,625
Other current assets                                                     119,940                                 102,933
Marketable securities - long-term                                         14,141                                  13,630
Vessels and equipment                                                  1,909,681                               1,928,488
Advances on newbuilding contracts                                        139,915                                 138,169
Other assets                                                             182,146                                 166,472
Goodwill                                                                  90,257                                  89,189
- --------------------------------------------------------------------------------------------------------------------------------------------
<B>Total Assets</B>                                                           2,703,719                               2,723,506
============================================================================================================================================
<B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B>
Accounts payable and accrued liabilities                                  86,839                                 105,950
Current portion of long-term debt                                         92,695                                  83,605
Long-term debt                                                           979,192                               1,047,217
Other long-term liabilities                                               64,565                                  44,512
Minority interest                                                         21,095                                  20,324
Stockholders&#146; equity                                                   1,459,333                               1,421,898
- --------------------------------------------------------------------------------------------------------------------------------------------
<B>Total Liabilities and Stockholders&#146; Equity</B>                             2,703,719                               2,723,506
============================================================================================================================================
</PRE>
<BR>
<BR>
<BR>
<HR><CENTER><B>SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS</B><BR>
(in thousands of U.S. dollars)</CENTER>
<HR>

<PRE>
<B>                                                                                   <U>Three Months Ended March 31,</U>
                                                                           <U>2003</U>                                    <U>2002</U>
Cash and cash equivalents provided by (used for)                      <U>(unaudited)</U>                              <U>(unaudited)</U></B>

<B>OPERATING ACTIVITIES</B>
- --------------------------------------------------------------------------------------------------------------------------------------------
<B>Net cash flow from operating activities</B>                                   89,090                                   49,071
- --------------------------------------------------------------------------------------------------------------------------------------------

<B>FINANCING ACTIVITIES</B>
Net proceeds from long-term debt                                         155,733                                    9,630
Scheduled repayments of long-term debt                                   (19,258)                                  (8,761)
Prepayments of long-term debt                                           (200,000)                                       -
Other                                                                     (6,796)                                 (11,387)
- --------------------------------------------------------------------------------------------------------------------------------------------
<B>Net cash flow from financing activities</B>                                  (70,321)                                 (10,518)
- --------------------------------------------------------------------------------------------------------------------------------------------

<B>INVESTING ACTIVITIES</B>
- --------------------------------------------------------------------------------------------------------------------------------------------
Expenditures for vessels and equipment                                   (62,891)                                 (13,869)
Expenditures for drydocking                                               (5,019)                                  (3,858)
Proceeds from disposition of assets                                       18,000                                        -
Other                                                                     (5,845)                                   4,886
- --------------------------------------------------------------------------------------------------------------------------------------------
<B>Net cash flow from investing activities</B>                                  (55,755)                                 (12,841)
- --------------------------------------------------------------------------------------------------------------------------------------------

<B>(Decrease) increase in cash and cash equivalents</B>                         (36,986)                                  25,712
Cash and cash equivalents, beginning of the period                       284,625                                  174,950
- --------------------------------------------------------------------------------------------------------------------------------------------
<B>Cash and cash equivalents, end of the period</B>                             247,639                                  200,662
============================================================================================================================================
</PRE>
<BR>
<BR>
<BR>

<HR><CENTER><B>TEEKAY SHIPPING CORPORATION<BR>
SUPPLEMENTAL INFORMATION</B><BR>
(in thousands of U.S. dollars)</CENTER>
<HR>

<pre>
<B>                                                <U>Three Months Ended March 31, 2003</U>
                                                          <U>(unaudited)</U>

                            <U>International</U>            <U>OBO</U>                 <U>UNS</U>              <U>Australian</U>             <U>Total</U>
                             <U>Tanker Fleet</U>          <U>Fleet*</U>              <U>Fleet</U>                <U>Fleet</U>                <U>Fleet</U></B>
- ------------------------ -------------------- ------------------- ------------------- ------------------- --------------------
Net voyage revenues             155,445             18,023              27,334              12,096              212,898
Vessel operating expenses        27,107              4,506               6,560               4,473               42,646
Time-charter hire expense         7,686              5,225                   -                   -               12,911
Depreciation and
   amortization                  24,931              1,936               9,704               2,559               39,130
- ------------------------ -------------------- ------------------- ------------------- ------------------- --------------------

<B>                                              <U>Three Months Ended December 31, 2002</U>
                                                          <U>(unaudited)</U>

                            <U>International</U>            <U>OBO</U>                 <U>UNS</U>              <U>Australian</U>             <U>Total</U>
                             <U>Tanker Fleet</U>          <U>Fleet*</U>              <U>Fleet</U>                <U>Fleet</U>                <U>Fleet</U></B>
- ------------------------ -------------------- ------------------- ------------------- ------------------- --------------------
Net voyage revenues             103,087             13,642              26,366              12,049              155,144
Vessel operating expenses        26,367              4,915               5,229               4,109               40,620
Time-charter hire expense         7,867              4,442                   -                   -               12,309
Depreciation and
   amortization                  25,664              2,187               8,694               2,615               39,160
- ------------------------ -------------------- ------------------- ------------------- ------------------- --------------------
</pre>
<BR>
<BR>
<BR>

<HR><CENTER><B>TEEKAY SHIPPING CORPORATION<BR>
SUPPLEMENTAL INFORMATION - CONTINUED</B><BR>
(in thousands of U.S. dollars)</CENTER>
<HR>

<pre>
<B>                                                <U>Three Months Ended March 31, 2002</U>
                                                          <U>(unaudited)</U>

                            <U>International</U>            <U>OBO</U>                 <U>UNS</U>              <U>Australian</U>             <U>Total</U>
                             <U>Tanker Fleet</U>          <U>Fleet*</U>              <U>Fleet</U>                <U>Fleet</U>                <U>Fleet</U></B>
- ------------------------ -------------------- ------------------- ------------------- ------------------- --------------------
Net voyage revenues              88,918             11,353              24,105              11,783              136,159
Vessel operating expenses        26,784              4,249               5,717               3,637               40,387
Time-charter hire expense         8,165              4,549                   -                   -               12,714
Depreciation and
amortization                     23,569              1,614               8,354               2,541               36,078
- ------------------------ -------------------- ------------------- ------------------- ------------------- --------------------
</pre>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>* Time-charter hire expense for the OBO Fleet represents the minority pool participants&#146; share of the OBO pool&#146;s net voyage revenues.
</font></p>
<BR>
<BR>
<BR>

<HR><CENTER><B>TEEKAY SHIPPING COPORATION<BR>
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES</B><BR>
(in thousands of U.S. dollars, except per share data)</CENTER>
<HR>

<pre>
<B>                                                                                                  <U>Three Months Ended March 31,</U>
                                                                                                              <U>2003</U>
                                                                                                                <U>$</U> </B>
- ------------------------------------------------------------------------------------------------------------------------------------
GAAP Net income, as reported                                                                                53,579
Write-down in carrying value of vessels                                                                     26,792
Write-down in carrying value of marketable securities                                                        4,910
- ------------------------------------------------------------------------------------------------------------------------------------
<B>Net income, as adjusted</B>                                                                                     85,281
- ------------------------------------------------------------------------------------------------------------------------------------
GAAP diluted earnings per share, as reported                                                                  1.32
Write-down in carrying value of vessels                                                                       0.66
Write-down in carrying value of marketable securities                                                         0.12
- ------------------------------------------------------------------------------------------------------------------------------------
<B>Diluted earnings per share, as adjusted</B>                                                                       2.10
- ------------------------------------------------------------------------------------------------------------------------------------
</pre>

<BR>
<BR>
<BR>
<BR>
<HR>
<CENTER><B>
                                              FORWARD LOOKING STATEMENTS
</B></CENTER>
<HR>

<P>This release contains  forward-looking  statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended), which
reflect  management&#146;s  current views with respect to certain  future  events and  performance,  including  statements  regarding  tanker
charter  rates,  the  balance  of supply  and  demand in the crude  tanker  market,  newbuilding  deliveries;  and  applicable  industry
regulations.  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:  changes in
production of or demand for oil and petroleum  products,  either  generally or in particular  regions;  greater or less than anticipated
levels of tanker  newbuilding  orders or greater  or less than  anticipated  rates of tanker  scrapping;  changes  in  trading  patterns
significantly  impacting  overall  tanker  tonnage  requirements;  changes in applicable  industry  regulations;  changes in the typical
seasonal  variations in tanker charter rates;  changes in the offshore production of oil; and other factors discussed in Teekay&#146;s Report
on Form 20-F for the fiscal year ended  December 31, 2002 and subsequent SEC filings,  including the Rule 424(B)  prospectus  supplement
filed with the SEC on February 14, 2003.</P>





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