Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q4 2019 Earnings Presentation
17 slides from Teekay Tankers's earnings presentation, Feb 27, 2020
Slide 1: Teekay Tankers Q4-2019 Earnings Presentation
Teekay Tankers Q4-2019 Earnings Presentation February 27, 2020
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 Results Strengthening our Tanker Market Balance Sheet Total adjusted EBITDA(1) of $131.5 Over $100 million of opportunistic Q4-19 and Q1-20 fixed to-date spot million, up from $27.8 million in Q3- assets sales rates at multi-year highs 19 • 4 Suezmax tankers for $78 Near-term marke
Slide 4: Rates in Q4-19 Highest in Four Years
Rates in Q4-19 the Q4 Average TCEs TCEs (Last 12 Months) Highest in Four Years Suezmax Aframax Suezmax Aframax 45 80 Stronger oil demand during Q4-19 and the removal of 40 $41 70 COSCO vessels from the Suezmax spot rates $39 $140,000 / day on trading fleet due to sanctions 35 11th Oct 2019 tightened
Slide 5: Q1-20 Spot TCEs Update
Q1-20 Spot TCEs 60,000 Update $51,700 Nine out of eleven LR2 vessels are currently trading in $39,100 $40,100 40,000 $38,100 the crude spot market to $33,000 optimize earnings TCE $26,700 $23,600 $24,800 $20,700 20,000 0 (2) (1) Suezmax Aframax LR2 Q1-19 Actual Q4-19 Actual Q1-20 to-date Suezmax Afr
Slide 6: Coronavirus, COSCO Creating Near-Term Headwinds
Coronavirus, COSCO Creating Near-Term Headwinds But underlying supply / Near-Term Medium-Term demand fundamentals remain favorable • Magnitude and duration of Coronavirus • 2 mb/d non-OPEC supply growth in 2020 impact is uncertain: led by the US, Brazil, Guyana and Norway: ▬ Lower Chinese oil demand
Slide 7: TNK Share Price has Substantial Upside Potential in Firm Tanker Market
TNK Share Price has Substantial Upside Potential in Firm 2020 FCF(3,4) Spot Rate 2020 EPS(1,4) Spot Rate Tanker Market Sensitivity Sensitivity $22.50 Expected to generate $800 significant Free Cash flow $20.00 (FCF) based on spot rates $700 seen in Q4-2019 and fixed-to- $17.50 date in Q1-2020 $600 F
Slide 8: Improved Balance Sheet
Improved Balance Debt Repayment Profile(1,2) $450 Sheet $400 Repayments incl. Capital Lease (Pre-refi) Balloon Payments (Pre-refi) $350 Repayments incl. Capital Lease (Post-refi) Balloon Payments (Post-refi) Debt repayment profile based $300 on completed refinancing of 31 $ in millions vessels for $
Slide 9: Executing on our Strategic Priorities
Executing on our Strategic Priorities Recent achievements have created shareholder value and 2020 Strategic Priorities Execution to-date greater financial flexibility • Maintain significant spot exposure • Approximately 85% of the fleet trading in Operating spot market • Opportunistically increase f
Slide 10: Appendix
Appendix 10
Slide 11: In-Charters
500 450 In-Charters1 400 Ship Days 350 300 250 200 150 100 50 - Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Aframax/LR2 Days 394 364 368 368 183 91 68 - Aframax/LR2 Rates 20,909 21,188 21,188 21,188 21,471 21,000 21,000 - Aframax/LR2 Days (1) Based on existing charters excluding
Slide 12: Fleet Employment – Out-Charters
500 Fleet Employment – 450 Out-Charters1 400 Ship Days 350 300 250 200 150 100 50 - Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Suezmax Days 2 455 455 347 98 - - - - Aframax/LR2 Days 73 46 46 46 9 - - - Suezmax Rates 34,240 34,240 35,847 37,010 - - - - (2) Aframax/LR2 Rates 19,56
Slide 13: Q1-20 Outlook
Q1-20 Outlook Income Statement Item Q1-20 Outlook (expected changes from Q4-19)(1) Decrease of approximately 295 net revenue days, mainly due to the sale of three vessels, the redelivery of two chartered-in vessels and fewer calendar days in Q1-20 compared to Q4-19, partially Revenues offset by fewe
Slide 14: Adjusted Net Income (Loss)
Adjusted Net Income (In thousands of U.S. dollars) (Loss)1 Q4-2019 Q3-2019 Statement Item Variance Comments Q4-19 vs Q3-19 (unaudited) (unaudited) Increase primarily due to higher overall spot TCE rates in Q4-19, higher net results from full service Revenues 304,982 182,739 122,243 lightering and th
Slide 15: 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 Q4-19 Items (1) Realized Gain/ Loss on Derivatives Revenues 303,885 - 1,097 304,982 Voyage expenses (102,831) - - (102,831) Vessel operating expenses (51,87
Slide 16: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule March 31, 2020 (E) June 30, 2020 (E) September 30, 2020 (E) December 31, 2020 (E) Total 2020 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 - - 2 60 7 210 - -
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