Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q4 2017 Earnings Presentation
16 slides from Teekay Tankers's earnings presentation, Feb 22, 2018
Slide 1: Teekay Tankers Q4-2017 Earnings Presentation
TEEKAY TANKERS Q4-2017 EARNINGS PRESENTATION February 22, 2018
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 impact o
Slide 3: Recent Highlights
Recent Highlights • Q4-17 Financial Results ○ Recorded adjusted net loss(1) of $5.9 million, or $0.03 per share, and generated total cash flow from vessel operations(1) of $32.1 million • Declared dividend of $0.03 per share for Q4-17 • Completed strategic merger with Tanker Investments Ltd. (TIL),
Slide 4: Proactively Taking Steps to Further Strengthen Our Balance Sheet
Proactively Taking Steps to Further Strengthen Our Balance Sheet 20182019202020212022 $500 $450 $39 $400 $39 $350 US$, Millions $300 $250 $331 $200 $37 $18 $331 $24 $150 $64 $85 $82 $64 $26 $100 $133 $50 $130 $103 $117 $106 $113 $132 $72 $0 $42 $23 $0 2018 2019 2020 2021 2022 Repayments (Pre-Refi) B
Slide 5: Tanker Rates At A Cyclical Low Point
Tanker Rates At A Cyclical Low Point OPEC production cuts and high fleet growth weighing on rates 50 Annual Average Earnings 35 Earnings (Last 12 Months) Suezmax Aframax Suezmax Aframax 30 40 $42 ‘000 USD / day ‘000 USD / day 25 30 $34 20 20 $25 $25 15 $22 $21 10 10 $14 $13 $14 $12 5 0 0 Source: Cla
Slide 6: Fundamentals Signal a Late-2018 Recovery
Fundamentals Signal a Late-2018 Recovery Lower fleet growth, oil market rebalancing the catalyst for a recovery Tanker Fleet Growth Set to Fall Oil Markets Are Rebalancing Scrapping Deliveries Net Growth (%) 300 100 50 10% 250 OECD oil inventories 90 7.6% 40 8% 200 vs. 5-year average 80 Million Barr
Slide 7: Asset Prices Have Found a Floor
Asset Prices Have Found a Floor A signal that we are at the bottom of the current market cycle Suezmax Asset Prices Aframax Asset Prices 110 90 100 80 90 70 80 Million USD Million USD 70 60 60 50 50 40 40 30 30 Source: Clarksons Source: Clarksons 20 20 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-0
Slide 8: Current Stock Price Offers Significant Leverage to a Market Recovery
Current Stock Price Offers Significant Leverage to a Market Recovery Indexed Net Asset Value Per Share FCF Per Share Spot Rate Sensitivity2 $2.50 300% 250% $2.00 200% $ Per Share $1.50 142% 150% $1.00 100% Mid-cycle rates4 $0.50 50% 0% $0.00 4 Current NAV Mid-cycle NAV 10,000 15,000 20,000 25,000 30
Slide 9: Q1-18 Spot Earnings Update
Q1-18 Spot Earnings Update 30,000 20,000 $16,800 $15,300 $14,300 $13,900 $13,400 $12,700 10,000 - Suezmax 1 Aframax 2 LR2 Q4-17 Actual Q1-18 to-date Suezmax Aframax LR2 Q1-18 spot ship 2,380 1,113 545 days available Q1-18 % booked 63% 60% 50% to-date (1) Combined average spot TCE rate including Suez
Slide 10: Appendix
APPENDIX 10
Slide 11: Fleet Employment – In-Charter
Fleet Employment – In-Charter1 350 300 Ship Days 250 200 150 100 50 - Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Aframax/LR2 Days 90 91 92 92 90 91 92 92 91 91 92 92 60 Aframax/LR2 Rates 22,750 22,750 22,750 22,750 22,750 22,750 22,750 22,
Slide 12: Fleet Employment – Out-Charters
Fleet Employment – Out-Charters1 900 800 700 Ship Days 600 500 400 300 200 100 - Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 VLCC Days (2) 90 81 - - - - - - - - - - - Suezmax Days 315 182 119 - - - - - - - - - - Aframax/LR2 Days 751 627 523
Slide 13: Q1-18 Outlook
Q1-18 Outlook Income Statement Item Q1-18 Outlook (expected changes from Q4-17) Increase of approximately 990 net revenue days in TNK, mainly due to the additional revenue days from a full quarter of operations for the vessels acquired as part of TIL merger. Revenues Refer to Slide 9 for Q1-18 to-da
Slide 14: Consolidated Adjusted Statement of Loss
Consolidated Adjusted Statement of Loss Q4-17 (in thousands of U.S. dollars) Statement Item As Reported Appendix A Reclassification for As Adjusted Items (1) Realized Gain/ Loss on Derivatives Revenues 105,229 - (77) 105,152 Voyage expenses (20,443) - - (20,443) Vessel operating expenses (43,440) -
Slide 15: Drydock & Offhire Schedule
Drydock & Offhire Schedule Teekay Tankers March 31, 2018 (E) June 30, 2018 (E) September 30, 2018 (E) December 31, 2018 (E) Total 2018 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 1 39
Slide 16: Bringing Energy to the World
BRINGING ENERGY TO THE WORLD