LOWER TANKER CHARTER RATES CUT TEEKAY SHIPPING’S INCOME BY 96%

LOWER TANKER CHARTER RATES CUT TEEKAY SHIPPING’S INCOME BY 96%    Lower tanker time charter rates led Teekay Shipping Corp., the Bahamas-based tanker operator, to report a 96-percent fall in its net income for the second quarter, to $4 million.
   The net result compares with a net income of $96 million in the second quarter of 2001.
   Vessel charter rate per revenue-generating day decreased to $17,051 in the latest quarter, down 48 percent from the level reported in the second quarter of last year.
   Teekay’s voyage revenues for the second quarter were $187 million, 32 percent less than the $276 million recorded in the same period last year, while income from vessel operations decreased to $23 million, from $110 million.
   “The results for the current quarter reflect low tanker charter rates throughout the quarter,” Teekay said.
   The New York Stock Exchange-listed company said that rates decreased as slow world economic growth and seasonal weakness in oil demand contributed to the extension of OPEC production cutbacks implemented over the past 18 months.
   “In addition, Iraq suspended its crude oil exports for 30 days and a general strike in Venezuela led to a disruption in their oil exports,” Teekay reported. “As a result, OPEC crude oil production fell to 24.3 million barrels per day in the second quarter, its lowest level since 1993.”
   For the six months ended June 30, the company’s net income fell to $20 million from $241 million in the first half of 2001. Voyage revenues decreased to $376 million, from $584 million, while income from vessel operations was cut to $55 million, from $266 million.
   As of June 30, the Teekay fleet, excluding vessels managed for third parties, consisted of 88 vessels, and the company has eight new tankers on order.
   Teekay reported that the size of the world tanker fleet declined to 302 million deadweight tons as of June 30, 2002, down 0.4 percent from the end of the first quarter