Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2014 Earnings Presentation
10 slides from Teekay Tankers's earnings presentation, Nov 6, 2014
Slide 1: Third Quarter 2014 Earnings Presentation
TEEKAY TEEKAY TEEKAY TANKERS THIRD QUARTER 2014 EARNINGS PRESENTATION November 6, 2014
Slide 2: Forward Looking Statements
Forward Looking Statements 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: the crude oi
Slide 3: Recent Highlights
Recent Highlights • Q3-14 Results ○ Reported adjusted net income of $2.6 million or $0.03 per share ○ Generated Cash Available for Distribution (CAD)(1) of $0.19 per share ○ Declared quarterly fixed dividend of $0.03 per share • On August 1, 2014, completed the acquisition of a 50% interest in Teeka
Slide 4: Increasing Earnings Power
Increasing Earnings Power Additional spot exposure better positions TNK for a tanker market recovery TNK Fleet Employment Mix TNK CAD Per Share Spot Rate Sensitivity 16,000 82% 90% $2.50 14,000 80% 64% 70% $2.00 12,000 Spot Exposure Operating Days 56% 60% $ per share 10,000 $1.50 44% 50% 8,000 40% 6
Slide 5: Stronger Crude Tanker Rates
Stronger Crude Tanker Rates Strongest Q3 tanker rates since 2008 Tanker Rates: January – October Q3-13 vs Q3-14 Earnings 70 25 Aframax Suezmax 60 20 50 $’000 / day $‘000 / Day 15 40 10 30 5 20 *average mid-sized tankers 10 0 2013 2014 Source: Clarksons Source: Clarksons • Q3-14 earnings improved as
Slide 6: Positive Impact of Oil Prices on Tanker Earnings
Positive Impact of Oil Prices on Tanker Earnings Brent Price vs. Spot Tanker Rates • Prices for Brent oil benchmark lowest Average Mid-Sized Tanker Rates Brent 60 140 since November 2010 as supply 50 120 currently outpaces demand 40 100 • Price decline driven by glut of light sweet crude in the Atla
Slide 7: Winter Rally Expected to Support Q4 Rates
Winter Rally Expected to Support Q4 Rates Increased demand in winter should result in higher spot rates Global Oil Demand Seasonal Winter Spike Expected 94 50 *average mid-sized tanker rates 93.5 45 40 93 Million bbl / day 35 $'000 / day 92.5 30 92 25 91.5 20 15 91 10 90.5 5 Q1-14 Q2-14 Q3-14 Q4-14E
Slide 8: Q4-14 Spot Earnings Update
Q4-14 Spot Earnings Update Overall, average spot bookings for Q4-14 to-date are higher than Q4-13 based on approximately 50%, 40%, and 60% of days booked in the quarter for Suezmax, Aframax, and LR2 segments, respectively. $30,000 $25,000 $22,100 $21,100 $20,000 $17,300 $20,500 $15,200 $18,000 $17,2
Slide 9: Appendix
APPENDIX 9
Slide 10: TNK 2014 & 2015 Drydock Schedule
TNK 2014 & 2015 Drydock Schedule March 31, 2014 (A) June 30, 2014 (A) September 30, 2014 (A) December 31, 2014 (E) Total 2014 Total 2015 Total Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Vessels Offhire Offhire Offhire Offhire Offhire Offhire Drydocked Drydocked Drydocked D