Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2019 Earnings Presentation
18 slides from Teekay Tankers's earnings presentation, May 23, 2019
Slide 1: Teekay Tankers Q1-2019 Earnings Presentation
Teekay Tankers Q1-2019 Earnings Presentation May 23, 2019
Slide 2: Forward Looking Statement
Forward Looking Statement 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, among other things, statements reg
Slide 3: Recent Highlights
Recent Highlights Q1-19 Results Financing Initiatives Charters Total adjusted EBITDA(1) of Completed previously Chartered-out a Suezmax $63.4 million, up from $63.0 announced sale-leaseback vessel for 6 months at million in Q4-18 relating to two Suezmax $27,500 per day tankers, which increased Adjus
Slide 4: Tanker Rates Resilient in the Face of Near-Term Headwinds
Tanker Rates Resilient in the Face of Near- Q1 Average Earnings Earnings (Last 12 Months) Term Headwinds Suezmax Aframax 50 Suezmax Aframax 40 Best Q1 earnings since 2016; $39 45 Q2 seasonally weaker $36 40 30 35 $31 ‘000 USD / day ‘000 USD / day $28 $27 30 $25 $24 $23 25 20 $22 $19 20 $15 $14 15 $1
Slide 5: Tanker Demand Set To Steady Increase From 2H-2019
Tanker Demand Set To Steady Oil Demand Growth Refinery Throughput Set to Surge Increase From 2H-2019 2.0 86 Change in Demand (mb/d) 1.9 85 1.5 Near-term headwinds 1.6 1.5 84 1.4 expected to give way to 1.4 MB/D 1.3 longer-term tailwinds 1.0 1.1 83 82 0.5 • IMO 2020 expected to be a 81 positive deman
Slide 6: Extended Period Of Low Fleet Growth Ahead
Extended Period Of Low Fleet Growth Suez / Afra Orderbook as % of Fleet Fleet Age Profile (Suez / Afra) Ahead 50% >15 yrs Suez Fleet 40% 10-15 yrs Small orderbook and aging Suez O'book <10 yrs fleet expected to keep fleet 30% Orderbook growth low 20% Afra Fleet 10% Afra O'book 0% 1996 1997 1998 1999
Slide 7: Tanker Fleet Utilization Forecast
Tanker Fleet Tanker Fleet Utilization Forecast Utilization Forecast 12% Demand Supply Fleet Utilization 94% Return to “full” fleet utilization in 2020 93% 10% 92% % Supply / Demand Growth % Fleet Utilization 91% 8% 90% 6% 89% 88% 4% 87% 86% 2% 85% 0% 84% 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 8: Q2-19 Spot Earnings Update
Q2-19 Spot Earnings $21,200 Update 20,000 $17,300 $15,000 $12,750 $12,100 $10,900 10,000 - Suezmax Aframax LR2 Q2-18 Actual Q2-19 to-date Suezmax Aframax LR2 Q2-19 spot ship 2,430 1,752 900 days available Q2-19 % booked 61% 55% 54% to-date (1) Combined average spot TCE rate including Teekay Suezmax
Slide 9: Appendix
Appendix 9
Slide 10: TNK Offers Significant Upside in Tanker Market Recovery
FCF1 Per Share Spot Rate Sensitivity2 TNK Offers Significant Upside in Tanker Market Recovery $1.50 Mid-cycle rates3,4 $ Per Share per annum $1.00 $0.50 $0.00 10,000 15,000 20,000 25,000 30,000 35,000 Average Mid-Sized TCE3 (1) Free cash flow (FCF) represents net income, plus depreciation and amorti
Slide 11: Debt Repayment Profile
Debt Repayment Profile $520 $480 $12 $440 $27 $400 $12 $360 $320 $280 $ Millions $240 $200 $402 $160 $9 $12 $120 $25 $17 $17 $80 $76 $29 $102 $40 2 $46 $25 $31 $- 20191 2020 2021 2022 2023 Balloon Payments Repayments (Loans) Capital Leases Revolver Amort (1) Pro-forma debt repayment profile as at Ma
Slide 12: Fleet Employment – In Charter
700 Fleet Employment – In Charter 600 Ship Days 500 400 300 200 100 - Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Aframax/LR2 Days 455 511 478 364 364 368 368 181 91 41 - Aframax/LR2 Rates 19,000 19,200 20,076 21,188 21,188 21,188 21,188 21,482 21,000 21,0
Slide 13: Fleet Employment – Out-Charters
300 Fleet Employment – Out-Charters1 250 Ship Days 200 150 100 50 - Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Suezmax Days 2 173 49 - - - - - - - - - Aframax/LR2 Days 137 138 118 46 46 46 46 8 - - - Suezmax Rates 22,237 20,415 - - - - - - - - - Aframax/L
Slide 14: Q2-2019 Outlook
Q2-2019 Outlook Income Statement Item Q2-19 Outlook (expected changes from Q1-19) Decrease of approximately 60 net revenue days in TNK, mainly due to more scheduled drydocks in Q2- 19, partially offset by more calendar days in Q2-19 and a full quarter of operation of two chartered-in Revenues vessel
Slide 15: Adjusted Net Income
(In thousands of U.S. dollars) Adjusted Net Income Q1-2019 Q4-2018 Statem ent Item Variance Com m ents (unaudited) (unaudited) Q1-2019 vs Q4-2018 Revenues 232,488 239,997 (7,509) Decrease primarily due to few er full service lightering voyages, partially offset by higher overall spot rates and reimb
Slide 16: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of (In thousands of U.S. dollars) Income Statement Item As Reported Appendix A Reclassification for As Adjusted Q1-2019 Items (1) Realized Gain/ Loss on Derivatives Revenues 232,501 - (13) 232,488 Voyage expenses (97,339) - - (97,339) Vessel operating expenses (54,587
Slide 17: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule Teekay Tankers March 31, 2019 (A) June 30, 2019 (E) September 30, 2019 (E) December 31, 2019 (E) Total 2019 Total Total Total Total Total Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Segment Days Days Days Days Days Spot Tanker 3 10
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