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Teekay Shipping Corporation DnB Markets International Shipping Seminar Oslo, Norway Teekay Shipping Corporation Teekay Shipping Corporation DnB Markets International DnB Markets International Shipping Seminar Shipping Seminar Oslo, Norway Oslo, Norway

September 25, 2003 September 25, 2003

Teekay Shipping Corporation 2

Forward Looking Statements Forward Looking Statements

This document 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 regarding anticipated EBITDA associated valuation multiple for the Company’s long- term fixed-rate contract segment, the valuation of the Company, tanker charter rates, and the balance of supply and demand in the crude tanker market. 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

• il 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; the rate of growth of the long-term fixed-rate contract segment of our business; changes in the typical seasonal variations in tanker charter rates, and changes in the offshore production of oil.

Teekay Shipping Corporation 3

• The world’s leading marine oil transportation

franchise, founded in 1973

• Global organization with 4,200 employees in 15
• ffices and onboard 147 vessels
• Leading industry consolidator; more than tripled in

size since 1998

• Growing cash generating power – mid-cycle EBITDA
• f $480 million or $9.50 CEPS equating to $4.40

EPS on an annualized basis for 2004

Teekay Shipping Corporation Teekay Shipping Corporation

Teekay Shipping Corporation 4

Teekay is an Integrated Logistics Teekay is an Integrated Logistics Provider Provider

Owned Ships Time Chartered-in Ships Managed Ships Long-term Fixed- rate time charter COA Spot Charter / Short Term T/C Offshore Loading Conventional Tankers Traditional Ship Owners

TEEKAY

Logistics / Outsourcing

Tailored mix of fixed-rate and market related pricing

Floating Storage and Offtake

103 Ships * 44 Ships 21 Ships

*Includes newbuild vessels on order

Teekay Shipping Corporation 5

• 1.00

2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 $26,000 $28,000 $30,000 Aframax Rates ($ per day) Earnings Per Share ($) FY1999 FY 2002 6 Months 2003 Proforma 2004 *

Increasing earnings power Declining net income break-even TCE rate Growing

• perating

leverage

Growing Earnings Power Growing Earnings Power

2004: Spot Rate Increase $1,000 TCE/day

EPS Increase $0.70/year

* Proforma to include most recent transactions

Teekay Shipping Corporation 6

Unique Unique Blend of Blend of Financial Stability Financial Stability and Operating and Operating Leverage Leverage

Teekay has two complementary businesses: 1. Growing Profitable Long-term Contract Business

• Shuttle Tankers
• Offshore Marine
• Fixed Rate Conventional Tankers

2. Leading Spot Tanker Franchise

Teekay Shipping Corporation 7

Predictable & Stable Earnings Predictable & Stable Earnings

EBITDA from Fixed-rate Long-term Contracts

20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 1998 1999 2000 2001 2002 2003 2004 *

($) millions

Shuttle Tankers Fixed Rate Conventional Tankers Offshore

Average contract length approximately 7 years Average ROE > 20%

* Annualized basis

Teekay Shipping Corporation 8

The World Leader in The World Leader in Offshore Loading Offshore Loading

• Approximately half of Teekay’s

capital is now invested in “floating pipelines”

• Navion - the leading offshore loading

logistics provider

• UNS - the leading shuttle tanker time-

charter entity

• Significant long-term stable cash flow
• High profitability

Teekay Shipping Corporation 9

• Barriers to Entry
• No spot market
• No speculative newbuilding ordering
• Operational know-how is critical
• Economies of scale required for efficient

scheduling

• Sophisticated technology
• Low Threat of Substitution
• Viewed as integral part of the offshore oil

production system

• Pipelines are costly and less viable for

deepwater production

• New, smaller marginal fields are well

suited to shuttle transportation

Attractive Attractive Market Market Characteristics Characteristics

The North Sea

Refineries Refineries

Oil& Gas fields Shuttle tanker traffic

Marginal fields & deepwater exploration Refineries

Teekay Shipping Corporation 10

Significant Growth Potential in Significant Growth Potential in Offshore Oil Offshore Oil

• Rapid growth in deepwater exploration
• Upside in core North Sea market

Improving extraction technology Tax incentives New discoveries

• Upside in core Brazil market

Teekay will have 6 shuttle tankers on long term contract with

Transpetro by mid-2004

Production profile favors Shuttle Tanker technology Transpetro’s Shuttle Tanker fleet is aging

• New frontiers emerging

East coast of Canada Gulf of Mexico

Teekay Shipping Corporation 11

Unique Unique Blend of Blend of Financial Stability Financial Stability and Operating and Operating Leverage Leverage

Teekay has two complementary businesses:

• 1. Growing Long-term Contract Business
• 2. Leading Spot Tanker Franchise
• Conventional
• Lightering

Teekay Shipping Corporation 12

Superior Cash Flow Generation Superior Cash Flow Generation from Spot Business from Spot Business

100 200 300 400 500 600 700 800 Low-cycle ($13,000/day) Mid-cycle ($18,000/day) High-cycle ($27,500/day)

($) millions

Fixed-Rate EBITDA Spot-based EBITDA

Spot Rate Increase $1,000 TCE/day EBITDA Increase $30 million annually and EPS increase by $0.70 * Proforma 2004 EBITDA annualized

Floor

Proforma 2004 EPS $0.90 $4.40 $11.05

Teekay Shipping Corporation 13

Pre Pre-

• eminent Market Position

eminent Market Position

• Largest Spot Operator of Medium-Sized Tankers
• 60 owned vessels*
• 30 chartered-in vessels*
• 7 commercially managed vessels
• Uniform, Interchangeable Fleet
• Unique Global Organization
• Biggest portfolio of strategic contracts with blue chip

customers High Capacity Utilization + Scale = Unique Competitive Advantage

*Includes newbuild vessels on order

Teekay Shipping Corporation 14

10 20 30 40 50 60 70 80

Teekay MISC GenMar OSG Tanker Pacific

# of Aframax tankers

World’s Largest Operator of World’s Largest Operator of Spot Aframax Tankers Spot Aframax Tankers

Teekay Shipping Corporation 15

Profitable Throughout the Cycle Profitable Throughout the Cycle

*Proforma based on current fleet plus 2004 newbuilding deliveries. Note: See appendix for explanation and reconciliation of EBITDA

Effect of Teekay’s Successful Growth Strategy

1998 1999 2001 Average Market Low Market High Market Teekay Actual Aframax TCE Rates $19,000/day $13,000/day $27,500/day Actual Net Income $71 Million ($20 Million) $337 Million Proforma Net Income* $207 Million $37 Million $448 Million Actual EPS $1.96 ($0.61) $8.31 Proforma EPS* $5.10 $0.90 $11.05 Actual EBITDA $210 Million $96 Million $539 Million Proforma EBITDA* $507 Million $337 Million $748 Million

Teekay Shipping Corporation 16

Teekay’s Teekay’s Software Value Software Value

Teekay’s integrated structure creates value in excess of its hardware

Global Business Development Team Project / Technical Management Skills and Expertise Trusted Long Term Financial and Operating Partner

VALUE ADDED SERVICE OFFERINGS

Teekay Shipping Corporation 17

HOW SHOULD THE NEWLY TRANSFORMED TEEKAY BE VALUED?

Teekay Shipping Corporation 18

Valuation Method #1 Valuation Method #1

Multiple of Fixed Multiple of Fixed-

• Rate EBITDA + Book Value of Spot Fleet

Rate EBITDA + Book Value of Spot Fleet

$63.20

Combined Teekay Equity Value per share

At the current stock price of under $45, the market is far from recognizing the value of Teekay’s two businesses even using conservative valuation metrics

In millions (except per share data) Balance Sheet data as at June 30, 2003

Fixed-rate segment EBITDA * 280 Book value of spot fleet + JVs 1,370 Multiple ** x 9 Total fixed-rate inherent enterprise value 2,520 less: pro rata share of net debt (732) less: pro rata share of net debt (630) Equity value of fixed-rate business 1,788 Equity value of spot business 740 Shares outstanding (millions) 40 Shares outstanding (millions) 40 Fixed-rate segment equity value per share $44.71 Spot segment equity value per share $18.49

* Commencing Q3-2004 annualized ** Based on inherent MLP multiples

FIXED-RATE SEGMENT SPOT SEGMENT

Teekay Shipping Corporation 19

45% 50% 60% 70% 80% 90% 100% 110% 120% 8 37.36 39.07 42.49 45.92 49.35 52.77 56.20 59.62 63.05 9 44.36 46.07 49.49 52.92 56.35 59.77 63.20 66.62 70.05 10 51.36 53.07 56.49 59.92 63.35 66.77 70.20 73.62 77.05 % of Spot Book Value Stock Price Matrix Fixed Rate Segment EBITDA Multiple

Share Value Matrix Share Value Matrix

Value Gap of ~42%

• r $18.84 per share

Teekay Shipping Corporation 20

Valuation Method #2 Valuation Method #2

Multiple of Total EBITDA Multiple of Total EBITDA

Teekay’s shares are presently trading at EBITDA multiples well behind its peers, yet has greater stable long-term cash flows and visibility

Source: TEV / EBITDA 2004 data from Jefferies Tanker Weekly dated Sept. 22, 2003

TEV / EBITDA 2004 7.3x 7.1x 6.9x 6.7x 6.0x 5.8x 5.7x 5.1x 5.0x 1 2 3 4 5 6 7 8 9 T e e k a y * T O R M F r

• n

t l i n e O S G O M I T s a k

• s

S t e l m a r G e n e r a l M a r i t i m e T e e k a y

Teekay multiple based on 9x fixed- rate EBITDA and 6x spot EBITDA

Value Gap of $36 per share

Teekay Shipping Corporation 21

Investment Investment Highlights Highlights

• The largest crude oil tanker company measured by

market capitalization, enterprise value, and fleet size

• An integrated logistics provider, not just an owner
• Financial strength to pursue continued profitable

growth

• Profitable throughout the cycle; large base of long-

term fixed-rate business coupled with significant spot market upside

• Market has not yet recognized the value of the newly

transformed Teekay

Teekay Shipping Corporation 22

• EBITDA represents net income (loss) before interest expense, income tax expense,

depreciation and amortization expense, minority interest, foreign exchange gains (losses) and gains (losses) on disposition of assets. EBITDA is included because such data is used by certain investors to measure a company's financial performance. EBITDA is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Company's performance required by accounting principles generally accepted in the United States.

• The following table reconciles the Company's Income from vessel operations with EBITDA for

the periods presented on slide 7:

Appendix Appendix – – EBITDA Reconciliation EBITDA Reconciliation

Year Ended Year Ended Year Ended Reconciliation of EBITDA from fixed-rate December 31, 2000 Decmber 31, 2001 December 31, 2002 long-term contracts ($000s) Actual Income from vessel operations 16,622 49,615 56,863 Depreciation and Amortization 7,020 37,024 43,889 EBITDA 23,642 86,639 100,752 Year Ended Year Ended December 31,2003 December 31, 2004 Projection Income from vessel operations 130,000 185,000 Depreciation and Amortization 70,000 95,000 EBITDA 200,000 280,000

Teekay Shipping Corporation 23

• EBITDA represents net income (loss) before interest expense, income tax expense,

depreciation and amortization expense, minority interest, foreign exchange gains (losses) and gains (losses) on disposition of assets. EBITDA is included because such data is used by certain investors to measure a company's financial performance. EBITDA is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Company's performance required by accounting principles generally accepted in the United States.

• The following table reconciles the Company's net income (loss) with EBITDA for the periods

presented on slide 15:

Appendix Appendix – – EBITDA Reconciliation EBITDA Reconciliation

Year Ended Nine Months Ended Year Ended March 31, 1999 December 31, 1999 December 31, 2001 Reconciliation of EBITDA Actual Net income (loss) 70,504 (19,595) 336,518 Interest expense 56,269 44,996 66,249 Income tax expense 1,500 6,963 Depreciation and amortization 94,941 68,299 136,283 Other (12,132) 675 (6,689) EBITDA 209,582 95,875 539,324 Projection Net income 207,000 37,000 448,000 Interest expense 88,000 88,000 88,000 Income tax expense 12,000 12,000 12,000 Depreciation and amortization 200,000 200,000 200,000 EBITDA 507,000 337,000 748,000