Welcome to Teekay Corporation's First Quarter 2021 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. [Operator Instructions] As a reminder, this call is being recorded. Now for opening remarks and introductions, I would 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, www.teekay.com, where you'll find a copy of the first quarter of 2021 earnings presentation. Teekay's President and CEO, Kenneth Hvid; and Teekay's CFO, Vince Lok will review this presentation during today's conference call. Please allow me to remind you, that our discussion today contains forward-looking statements. Actual results may differ materially from 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 first quarter of 2021 earnings release and earnings presentation available on our website. I'll now turn the call over to Vince to begin.

Thanks, Ryan. Good morning, everyone, and thank you for joining us today for Teekay Corporation's first quarter 2021 earnings conference call. We hope that you and your families are all safe and healthy. Before I hand the call over to Kenneth, I will briefly review our financial results for the first quarter of 2021, starting with our recent highlights on slide three of the presentation. In the first quarter, we reported consolidated adjusted net income of $11 million or $0.11 per share, up from $3 million or $0.03 per share in the prior quarter. We also generated total adjusted EBITDA of $202 million, up slightly from the previous quarter. Compared to Q4, we recorded higher results in each of our entities, supported by our large portfolio of long-term contracts in our gas shipping business, higher spot tanker rates in our oil shipping business and higher revenues from our marine services business in Australia. All of this, despite the continued weakness in the spot conventional tanker market. Looking ahead, we are expecting the second quarter to be lower than the first quarter, mainly due to a heavy dry dock schedule in both our gas and tanker fleets, certain non-recurring items in the first quarter and the recent expiration of fixed rate charters in our tanker fleet that were locked in last year at higher rates. For guidance on our second quarter results, please refer to the appendix of this presentation. Since reporting earnings in February, we have made significant positive progress towards the strategic objective of winding down our FPSO segment, which we expect will result in a material reduction in our total asset retirement obligations in the second quarter. Kenneth will discuss this in more detail on the next slide. Over the last couple of quarters, we discussed our ESG strategy and we are now excited to have published our 11th consecutive Teekay Group sustainability report last month, which aligns with global frameworks such as GRI and SASB. We have included a link to our latest sustainability report on this slide and it is also available on our website. With that, I will turn it over to Kenneth.

Thank you, Vince, and good morning, everyone. Turning to slide four of the presentation. And as Vince just mentioned, we have made good progress on winding down our FPSO segment. Starting with the Banff. As highlighted last quarter, we have successfully completed phase one of our decommissioning project with net costs below budget. With respect to the recycling of the Banff, our Q1 cost came in lower than expected, as the repositioning of the unit to its recycling yard was delayed while awaiting regulatory approvals. However, we are pleased to say that the unit departed by tow for its final voyage from the UK on May the 2 and was safely handed over to the mass recycling shipyard in Denmark on May the 11, where it will be recycled in accordance with the EU Ship Recycling Regulation over the next several months. As such, in Q2, we expect to incur approximately $5 million to $6 million of costs relating to the towage and initial milestone payments to the recycling yard, which represents the most part of our remaining cost associated with the unit, with only minimal cost expected to be incurred after Q2. Separately, in April, we entered into a conditional agreement with CNR, whereby the customer will take over our remaining Phase 2 decommissioning responsibilities on the Banff field, which when finalized will effectively conclude and eliminate our remaining obligations related to the Banff field after over 20 years of successful operations. This agreement should enable CNR to achieve synergies when combining this with their own existing subsea decommissioning work scopes. The agreement remains subject to various conditions precedent that need to be met by June 1, including confirmation from the UK regulatory authorities that Teekay has completed all of its obligations in relation to Phase 1 of the…

[Operator Instructions] Our first question comes from Sandy Burns with Stifel.

Hi, good morning everyone and nice start to the year. Just two questions specific to the parent results. One, cash went down I think it was about $12 million or so. I was wondering if -- I know there was no interest payment on the bond. So maybe if you could explain what was going on there? And then also in the parent-only disclosure you mentioned other income was about $4 million like a bit higher than last year and the slight loss that you had in the fourth quarter. If there was -- if you could give a little more color on what was driving that? Thank you.

Sure Sandy. Yes. First on your first question, the cash goes up and down from time to time sometimes just due to working capital changes. If you look at our liquidity at March 31, of $183 million, I think that's actually slightly higher than what it was at December 31. So no material changes were there really. In terms of your second question, yes, we did receive some additional or generate additional revenue from our marine services business in Australia which is a big part of that increase to $4 million this quarter. About $3.5 million of that is, I would call more nonrecurring because it was a completion payment relating to an end of a successful project. So I think going forward we'll probably expect that number to come down on a run rate basis a little bit. But nevertheless, it was a very successful project.

Right. Okay. Great. Great. And right the liquidity improvement was a nice positive as well. Great. Thank you and good luck for everything.

Thanks.

I am showing no further questions at this time. I would now like to turn the call back over to the company for closing remarks.

Well thank you very much for tuning in today. We look forward to discussing our tanker and gas results in our two upcoming calls a little bit later this morning and we look forward to reporting back to you next quarter. Stay safe everyone.

Thank you. Ladies and gentlemen this concludes today's teleconference. You may now disconnect.