Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2015 Earnings Presentation
12 slides from Teekay Tankers's earnings presentation, May 14, 2015
Slide 1: Teekay Tankers Q1-2015 Earnings Presentation
TEEKAY TEEKAY TEEKAY TANKERS Q1-2015 EARNINGS PRESENTATION May 14, 2015
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 • Financial Results ○ Generated adjusted net income1 of $39.0 million, or $0.34 per share, up from $18.6 million, or $0.21 per share, in Q4-14 ○ Generated free cash flow1 of $53.0 million, or $0.46 per share, up from $31.7 million, or $0.35 per share, in Q4-14 • Completed acquisiti
Slide 4: Executing on Teekay Tankers' Strategy
Executing on Teekay Tankers’ Strategy Delivering Shareholder Value TNK Fleet Employment Mix 16,000 85% 90% • In-charter portfolio expanded to 12 14,000 80% 64% vessels 12,000 70% Operating Days Spot Exposure 56% 60% 10,000 ○ Over $21 million of additional profit earned to-date 44% 50% 8,000 40% • Tr
Slide 5: Significant Operating Leverage
Significant Operating Leverage Free cash flow (FCF)1 Uses and FCF Yield2 FCF1 Per Share Spot Rate Sensitivity 12 months ending Q1-16 $0.50 40.0% $3.00 $0.45 Current Average Aframax Spot Rate = $33,000/day 35.0% Cash flow uses per share $2.50 FCF yield (annualized)2 $0.40 Annual $ Per Share 30.0% $0.
Slide 6: Highest Average Q1 Spot Rates Since 2008
Highest Average Q1 Spot Rates Since 2008 Strong spot rates continuing into Q2-2015 • Strong spot rates in Q1-2015 due to firm underlying fundamentals: ○ low fleet growth, ○ high crude oil supply, ○ rising oil demand Stronger Spot Rates Y-o-Y Monthly Spot Tanker Rates Q1-2014 Q1-2015 $120,000 $45,000
Slide 7: Tanker Demand Strength Driven by Fundamentals
Tanker Demand Strength Driven by Fundamentals High crude oil supply and rising oil demand Middle East OPEC Production Global Refinery Throughput 24 10.5 79 Middle East OPEC Saudi Arabia 2014 2015 Mb/d (Middle East OPEC) Mb/d (Saudi Arabia) 23 10.0 78 22 9.5 77 Mb/d 21 9.0 76 20 8.5 75 19 8.0 Source:
Slide 8: Low Fleet Supply Growth into 2017
Low Fleet Supply Growth into 2017 Mid-size tanker fleet growth remains low despite recent orders and conversions Suezmax Fleet Growth Aframax Fleet Growth* Scrapping Forecast Scrapped Delivery Forecast Delivered Net Fleet Growth (% of Fleet) 50 10% 80 8% 40 8% 60 6% 30 6% 40 4% Number of Vessels Num
Slide 9: Q2-15 Spot Rates Remain Counter-seasonally Strong
Q2-15 Spot Rates Remain Counter-seasonally Strong $45,000 $39,400 $40,000 $36,500 $35,000 $32,600 $30,700 $30,000 $29,100 $26,600 $25,700 $24,900 $25,000 $21,900 $20,000 $15,000 $10,000 $5,000 $- Suezmax Aframax RSA LR2 Q4-14 Actual Q1-15 Actual Q2-15 to-date Q2-15 % booked to- 50% 50% 80% date 9
Slide 10: Appendix
APPENDIX 10
Slide 11: Fleet Employment Profile
Fleet Employment Profile In-Charter Portfolio Aframax $15,600 Optional Period Aframax $18,600 Aframax $18,500 Optional Period Aframax $15,750 Optional Period (1) Aframax $12,000 Optional Period Aframax $15,600 Aframax $17,100 $22,000 Aframax $22,000 Optional Period Aframax $18,900 Optional Period LR
Slide 12: TNK 2015 Drydock & Offhire Schedule
TNK 2015 Drydock & Offhire Schedule March 31, 2015 (A) June 30, 2015 (E) September 30, 2015 (E) December 31, 2015 (E) Total 2015 Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Offhire Offhire Offhire Offhire Offhire Drydocked Drydocked Drydocked Drydocked Drydocked Segment Day