Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2010 Earnings Presentation
10 slides from Teekay Tankers's earnings presentation, Aug 12, 2010
Slide 1: Q2 2010 Earnings Presentation
Q2 2010 Earnings Presentation August 12, 2010
Slide 2: Safe Harbor
Safe Harbor This presentation 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: tanker market fundamentals,
Slide 3: Recent Highlights
Recent Highlights » Declared a dividend of $0.34 per share • Payable on August 27th to all shareholders of record on August 20th » Earned average TCE rates of $18,929 per day on the spot Aframax fleet and $30,942 per day on the spot Suezmax fleet » Earned adjusted net income of $7.6 million, or $0.1
Slide 4: Recent Investments Have Added to Fixed-Rate Coverage
Recent Investments Have Added to Fixed-Rate Coverage……. Name Y/ Built Dwt Matterhorn Spirit 2005 114,800 Coverage (by Revenue Days) Kaveri Spirit 2005 149,985 Trading in Fixed Spot Ashkini Spirit 2003 165,200 Teekay Pools 2H2010 66% 34% Kanata Spirit 1999 113,000 2011E 43% 57% Sotra Spirit 1995 95,4
Slide 5: Annual Dividend
…..And Raised Dividend Floor While Maintaining Operating Leverage » At Aframax and Suezmax spot rates of $15,000 and $25,000 per day, respectively, TNK could pay an illustrative dividend of $1.20 per share over the next 4 quarters » Every $5,000 per day increase in spot TCE provides an additional $0
Slide 6: Q3 2010 Dividend Matrix
Q3 2010 Dividend Matrix » Tanker rates currently below those experienced at the beginning of this quarter • Due primarily to seasonal/short-term factors » TNK partially insulated with 69% fixed coverage in Q3 » Estimated Q3 2010 dividend positively impacted by recent investments Q3-2010 Estimated Di
Slide 7: Global Economic Recovery Spurs Oil Demand Growth
Global Economic Recovery Spurs Oil Demand Growth GDP vs. Oil Demand Growth f Global oil demand growth highly correlated to 3.0 Global Oil Demand Growth 7% the global economy Global GDP Growth 6% 2.0 Million Barrels Per Day 5% f The IMF has upgraded its 2010 global GDP % GDP Growth 1.0 4% growth outl
Slide 8: Tanker Demand Fundamentals Improving
Tanker Demand Fundamentals Improving Winter Demand Highest Since 2007 / 08 Record Chinese Oil Imports Driving The Market 88.0 f 1H-10 Chinese crude imports up ~30% from 87.5 87.3 87.0 the same period of last year mb/d mb/d f Tonne-mile demand up ~35% Million Barrels Per Day 86.0 85.0 f US demand up
Slide 9: Global Tanker Fleet On Track For ~5% Growth in 2010
Global Tanker Fleet On Track For ~5% Growth in 2010 Deliveries Removals Delivery Forecast Removal Forecast Fleet Growth (RHS) 50.0 8% 40.0 7% 30.0 6% % Fleet Growth Million DWT 20.0 5% 10.0 4% 0.0 3% -10.0 2% -20.0 1% -30.0 0% 2005 2006 2007 2008 2009 2010E* Source: Clarksons f 22.5 mdwt of tankers
Slide 10: Teekay Group 2010 Investor Day
Teekay Group 2010 Investor Day 10