Teekay Corporation Ltd.

Welcome to TK Corporation's fourth quarter and fiscal 2020 earnings results conference call. During the call, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question and answer session. At that time, if you have a question, participants will be asked to press star 1 to register for a question. For assistance during the call, please press star 0 on your touchtone phone. As a reminder, this call is being recorded. Now for opening remarks and introductions, I would now like to turn the call over to the company. Please go ahead.

Before we begin, I'd like to direct all participants to our website at www.tk.com, where you'll find a copy of the fourth quarter and annual 2020 earnings presentation. Kenneth and Vince will review this presentation during today's conference call. Please allow me to remind you that our discussion today contains forward-looking statements. After results may differ materially from the results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the fourth quarter and annual 2020 earnings release and earnings presentation available on our website. I'll now turn the call over to Vince Locke, TK Corporation's Group CFO, to begin.

Thanks, Ryan. Hello, everyone, and thank you for joining us today for TK Corporation's Fourth Quarter and Annual 2020 Earnings Conference Call. We hope that you and your families are all healthy and safe. Before I hand the call over to Kenneth, I will briefly review our financial results for the fourth quarter and fiscal 2020, as well as how we have strengthened our financial foundation across the TK Group over the past several years. Starting with our recent highlights on slide three of the presentation. In the fourth quarter of 2020, we reported our fifth consecutive quarterly adjusted profit with consolidated adjusted net income of 3 million or 3 cents per share compared to adjusted net income of 50 million or 15 cents per share in the prior quarter. We also generated total adjusted EBITDA of 201 million compared to 227 million in the previous quarter. Compared to Q3, Q4 included strong adjusted results from TK Parent and TK LNG while TK Tanker's results reflected the recent weakness in the tanker market. Despite an unprecedented year marked by continuous volatility across the energy markets, our gas business reported its highest ever adjusted net income and our tanker business reported its best year ever from a free cashflow perspective. For the full year of 2020, We reported consolidated adjusted net income of $83 million or $0.82 per share compared to the prior year's adjusted net loss of $19 million or $0.19 per share. And we increased our total adjusted EBITDA to $1.1 billion, up nearly 15% over 2019. Compared to the prior year, our stronger results this year can be attributed to higher adjusted earnings in each of our main businesses. With its growth program completed in early 2020, TK LNG generated strong earnings this year, supported by the stable cash flows from its diversified portfolio of long-term contracts. TK Tankers, through its spot exposure, benefited from an extraordinary surge in tanker demand in the first half of 2020, and its well-timed fixed-rate charters secured during that period at attractive levels. and TK Parents' results improved due to the new Foyne Haven FPSO contract entered into in March 2020, higher cash flows from the Hummingbird FPSO and lower net G&A and interest expense, partially offset by lower earnings from the Banff FPSO, which ceased production and commenced decommissioning in June 2020, which Kenneth will discuss in more detail later in the presentation. Looking ahead, We are expecting the first quarter results to be more or less in line with the fourth quarter. TKLNG is expected to have another strong quarter while the weak tanker market continues to weigh on TKTanker's results. For guidance on our first quarter results, please refer to the appendix of this presentation. Turning to the balance sheet, we have continued to prioritize balance sheet strength and made significant progress in that effort. With cash flows from operations and proceeds from asset sales, over the past year, we have reduced our proportionate net debt by over $1 billion, or 16%. Lastly, we have also increased our total consolidated liquidity by over $300 million to approximately $1 billion as of December 31st. Turning to slide four, the TK Group's multi-year plan towards building a strong financial foundation is coming into fruition. which is reflected in these charts. Looking at the two charts on the left, with the completion of TGP's $3.5 billion new build program in early 2020 and the strength in the tanker market, we increased our total adjusted EBITDA by 40% over the past two years to $1.1 billion, which equates to a KGAR of over 18%. Importantly, this increase includes a 41% increase in our stable gas cash flows that are supported by long-term contracts. We have also steadily improved our profitability when you compare our consolidated adjusted net income of 83 million in 2020 to the adjusted net loss of 53 million in 2018. We funded a lot of our growth with debt during this period, resulting in our proportionate net debt peaking in 2019 as can be seen in the chart on the top right. But since then, and as mentioned earlier, we have decreased our proportionate debt by over $1 billion, which has built significant equity value and reduced our interest expense across the group. Looking at the chart on the bottom right, the combination of the increase in our cash flows and the reduction in net debt has resulted in a significant decline in our financial leverage. from 7.9 times in 2018 to 4.8 times at the end of 2020 on a proportionate net debt to adjusted EBITDA basis. Lastly, although not reflected in these charts, in addition to our strong liquidity position over $1 billion, we currently have no significant debt maturities in 2021 and no committed growth CapEx. All these key areas have led to a stronger foundation across the group. which we believe provides significant financial and strategic flexibility going forward. With that, I will now turn the call over to Kenneth.