Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q4 2011 Earnings Presentation
13 slides from Teekay Tankers's earnings presentation, Feb 23, 2012
Slide 1: Teekay Tankers Fourth Quarter and Fiscal 2011 Earnings Presentation
Teekay Tankers Fourth Quarter and Fiscal 2011 Earnings Presentation February 23, 2012
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: tanker marke
Slide 3: Recent Highlights
Recent Highlights » Declared a dividend of $0.11 per share for Q4-11, the 17th consecutive quarterly dividend, for a cumulative total of $6.87 per share since IPO » Adjusted net loss of $1.3 million1 ($0.02 per share) in Q4-11 and generated $9.3 million ($0.15 per share) of Cash Available for Distri
Slide 4: FY2011 Highlights
FY2011 Highlights TNK Core Business Strategies: • Maximize Dividend by Tactically » Declared total dividends for 2011 totaling $46m, Managing Mix of Spot and or $0.72 per share Charter Contracts » Finished the year financially strong and well positioned for significant fleet growth with current • Ex
Slide 5: 2011: Tanker Demand Growth 2% vs. Tanker Supply Growth 6%
2011: Tanker Demand Growth 2% vs. Tanker Supply Growth 6% Macro Global economic headwinds including the European debt crisis and after effects of the devastating Japanese earthquake. Tanker Demand US seaborne crude oil imports the lowest since 1996 as a result of demand destruction, higher imports f
Slide 6: Return of Rate Volatility in Winter 2011 / 12
Return of Rate Volatility in Winter 2011 / 12 Source: Clarksons » Increase in Turkish Straits transit delays / weather delays in the US Gulf » Return of Libyan oil exports a positive for Aframax / Suezmax demand in the MED » Strong level of Chinese crude oil imports ahead of Chinese New Year Expect
Slide 7: Demand is the Wild Card for 2012
Demand is the Wild Card for 2012 2012 Oil Demand Estimates Uncertain Demand Outlook » 2012 oil demand estimates range from 0.8 mb/d (IEA) to 1.7 mb/d (CS). » Developed world economy a key determinant – recession or rebound? » Filling of Chinese SPR could add to demand during 2012 Brent-Dubai Oil Spr
Slide 8: Supply Side Concerns Are Easing
Supply Side Concerns Are Easing Shrinking Tanker Orderbook Pace of New Orders at Historic Lows » 7.5 mdwt of new tanker orders placed Source: Clarksons since the start of 2011. » 2011 saw the lowest level of new tanker orders since 1995. » Orderbook as a percentage of the fleet the lowest since 2000
Slide 9: Improved Fundamentals From end-2012 / 2013
Improved Fundamentals From end-2012 / 2013 Demand Range Supply Range Source: Platou / Internal estimates Global Floating Slowdown in Moving towards Tanker market recession; storage demand; balance by end recovery on of 2012 – accelerating steadied the fleet growth the back of economy / fleet growth
Slide 10: Fleet Employment – Fixed vs. Spot
Fleet Employment – Fixed vs. Spot Name Y/ Built Dwt Coverage Kaveri Spirit 2004 149,985 Ashkini Spirit 2003 165,200 Trading in Fixed Spot Iskmati Spirit 2003 165,209 Teekay Q1-12E 58% 42% Erik Spirit 2005 115,500 Pools . 2012E 47% 53% Nassau Spirit 1999 107,100 Kareela Spirit 1999 113,100 Time-chart
Slide 11: Q1-12 Dividend Matrix
Q1-12 Dividend Matrix » For Q1-12 to-date, average spot bookings are up from the previous quarter (based on ~2/3 days booked) • Aframax: $13,000 per day (vs. $8,542 per day in Q4-11) • Suezmax: $21,000 per day (vs. $12,922 per day in Q4-11) Q1 2012 Dividend Suezmax Spot Rate Assumption (TCE per day)
Slide 12: TNK Capital Structure Provides Enhanced Dividend Payments in Weak Tanker Market
TNK Capital Structure Provides Enhanced Dividend Payments in Weak Tanker Market » Low average cost of debt: 3.7% » No financial covenant concerns – only requirement to maintain liquidity equivalent to 5% of total debt, or minimum of $35m » Minimal principal repayments until 2017 Total Liquidity $400
Slide 13: 2012 Priority is to Deploy Capital Profitably
2012 Priority is to Deploy Capital Profitably » Use of proceeds from February 2012 capital raise was to pay down revolver, however, our intention is to invest this capital on accretive growth » Preferences: • Core Aframax and Suezmax franchises • Consider expansion into product tanker market 13