Slide 1: Teekay Group First Quarter 2025 Earnings Presentation
Teekay Group First Quarter 2025 Earnings Presentation May 8, 2025 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements included in this presentation, other than stateme
Slide 3: Teekay Group Q1-25 Highlights
Teekay Group Q1-25 Highlights Q1-24 vs. Q1-25 Spot Rates Another strong quarter with opportunistic vessel sales and 47,300 48,800 disciplined fleet reinvestment Teekay Tankers Financials: 26,800 27,800 GAAP Net GAAP Adj. Net Adj. FCF(1) Income EPS Income(1) EPS(1) (2) Suezmax Aframax / LR2 $76.0 mil
Slide 4: Spot Market Update
Spot Market Update Mid-Size Tanker Spot Rates(1) Sharp uptick in spot rates since the start of the year (2) 5-year range FCF Breakeven 2024 2025 • After a sluggish start to the year, mid-size tanker spot rates 100 have increased to the highest level since Q1-2024 90 80 • Longer voyage distances due
Slide 5: Strong Export Volumes and Longer Distances
Strong Export Volumes and Longer Distances Mid-size tanker tonne-miles the highest in 18 months during March 2025 Suezmax liftings of Kazakh crude from the CPC terminal at a record Aframax loadings from TMX (Vancouver) at a record high 30 cargos in high in March 2025 with high volumes to Asia March
Slide 6: Oil Market Appears Supportive in the Near-Term
Oil Market Appears Supportive in the Near-Term Falling oil prices leading to lower bunker fuel costs and potential re-stocking of oil inventories Oil prices fell to a 4-year low at the start of May 2025 with the potential OECD oil inventories (industry + government) are at the bottom of the for a co
Slide 7: Medium-Term Market Dynamics
Medium-Term Market Dynamics Oil demand expected to grow in 2025/26 but multiple factors clouding the medium-term outlook Global economy Tariffs / trade wars may impact global economic and oil demand growth USTR Proposal Manageable impact on the oil and tanker markets compared to initial proposal Geo
Slide 8: Fleet Supply Outlook Remains Supportive
Fleet Supply Outlook Remains Supportive Slowdown in newbuild ordering and rapidly aging fleet limits net fleet growth through 2028 The pace of new tanker contracting has fallen since mid-2024 due to Size of the mid-size tanker orderbook is balanced by the number of increased market uncertainty(1) sh
Slide 9: Strong Cash Flow Generation, Patient Fleet Renewal
FCF(4) Break-even Declining Over Strong Cash Flow Generation, Time Patient Fleet Renewal $21,300 $16,800 Low cash flow break-even levels, strong balance sheet, $14,600 $13,200 and high operating leverage • Low fleet FCF break-even of approximately $13,200 per day(1)(2) • Significant potential FCF ge
Slide 10: Q&A
Q&A 10
Slide 11: Appendix
Appendix 11
Slide 12: Teekay Corporation Q1-25 Highlights
Teekay Corporation Q1-25 Highlights GAAP Net Income GAAP EPS $14.9 million $0.17 per share • Declared a special dividend of $1.00 per share payable in July 2025 • Repurchased $4.2 million worth of its outstanding common shares at an average price of $6.69 per share • Current sum-of-the-parts (SOTP)
Slide 13: Fleet In-charters
Fleet In-charters 300 $40 ,000 $35 ,000 250 $30 ,000 200 $25 ,000 Ship Days 150 $20 ,000 $15 ,000 100 $10 ,000 50 $5, 000 0 $0 Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax S
Slide 14: Fleet Out-charters
Fleet Out-charters 70 $60 ,000 60 $50 ,000 50 $40 ,000 40 Ship Days $30 ,000 30 $20 ,000 20 $10 ,000 10 0 $0 Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Sue
Slide 15: Adjusted Net Income
Adjusted Net Income(1) Q1-25 vs. Q4-24 (In thousands of U.S. dollars) Q1-2025 Q4-2024 Statement Item Variance Comments (unaudited) (unaudited) (2) Revenues 231,639 228,483 3,156 Voyage expenses (86,867) (94,934) 8,067 Net revenues (3) 144,772 133,549 11,223 Increase primarily due to the acquisition
Slide 16: Q2-25 Outlook
Q2-25 Outlook Q1-25 in Q2-25 Outlook(1) thousands Income Statement Item adjusted basis(1) (expected changes from Q1-25) Decrease of approximately 451 net revenue days, consisting of a decrease of 423 spot days and a decrease of 28 fixed days, primarily due to the sales of six tankers between Q1-25 a
Slide 17: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income Q1-25 (In thousands of U.S. dollars) Statement Item As Reported Appendix A Items As Adjusted (1) Total revenues 231,639 - 231,639 Voyage expenses (86,867) - (86,867) Net revenues (2) 144,772 - 144,772 Vessel operating expenses (61,168) - (61,168) Charter hir
Slide 18: Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Free Cash Flow (In thousands of U.S. dollars) Free cash flow (FCF) represents Three Months net income, plus depreciation and Ended amortization, loss on sale of March 31, assets, unrealized losses from 2025 derivatives and marketable (unaudited) securitie
Slide 19: Dry-dock & Off-hire Schedule
Dry-dock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2025 (A) June 30, 2025 (E) September 30, 2025 (E) December 31, 2025 (E) Total 2025 (E) 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 Sp