Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2016 Earnings Presentation
14 slides from Teekay Tankers's earnings presentation, Nov 3, 2016
Slide 1: Teekay Tankers Q3-2016 Earnings Presentation
TEEKAY TANKERS Q3-2016 EARNINGS PRESENTATION November 3, 2016
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: crude oil an
Slide 3: Recent Highlights
Recent Highlights • Q3-16 Financial Results ○ Generated adjusted net loss(1) of $1.5 million, or $0.01 per share, and free cash flow(1) of $26.6 million • Dividend of $0.03 per share for Q3-16, consistent with dividend policy • Agreed to sell final MR product tanker and two Suezmax tankers for aggre
Slide 4: Rates Rebounding From Q3 Lows
Rates Rebounding From Q3 Lows 2016 Aframax Rates 2016 Suezmax Rates 5-year range 5-year avg. 2016 5-year range 5-year avg 2016 50,000 60,000 50,000 40,000 40,000 30,000 30,000 20,000 20,000 10,000 10,000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Slide 5: Returning Atlantic Supply Supports Mid-Size Rates
Returning Atlantic Supply Supports Mid-Size Rates Nigerian Outages Returning Libyan Crude Oil Production 1.6 Brass River Qua Iboe 0.9 45 1.4 Forcados Bonny Light 0.8 40 Suezmax Rates 1.2 0.7 35 1.0 Libyan government 0.6 30 ‘000 $/day MB/D target by end-2016 MB/D 0.5 25 0.8 0.4 20 0.6 0.3 15 0.2 10 0
Slide 6: Headwinds in 2017…
Headwinds in 2017… …But fundamentals point towards a more positive market in 2018 200 Mid-Size Tanker Fleet Growth Forecast 10% • Above average mid-size tanker fleet growth 160 8% in 2017, but moderating to below average Number of Vessels 120 6% levels again in 2018 % Fleet Growth 80 4% 40 2% o Low
Slide 7: Q4-16 Spot Earnings Update
Q4-16 Spot Earnings Update $30,000 $19,800 $20,000 $17,600 $16,200 $14,900 $15,400 $10,000 $8,600 $- Suezmax1 Aframax 2 LR2 Q3-16 Actual Q4-16 to-date Suezmax Aframax LR2 Q4-16 spot ship 1,646 1,194 466 days available Q4-16 % booked 47% 32% 35% to-date (1) Combined average spot TCE rate including Su
Slide 8: Appendix
APPENDIX 8
Slide 9: Fleet Employment – In Charters
Fleet Employment – In Charters 450 400 350 Ship Days 300 250 200 150 100 50 - Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Aframax Days 438 450 297 259 84 90 91 92 92 90 91 92 92 LR2 Days 92 90 50 - - - - - - - - - - Aframax Rates 19,267 19,
Slide 10: Fleet Employment – Out Charters
Fleet Employment – Out Charters1 700 600 500 Ship Days 400 300 200 100 - Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 VLCC Days 2 92 90 91 92 92 90 81 - - - - - - Suezmax Days 368 288 273 139 92 90 91 58 - - - - - Aframax Days 650 585 542 41
Slide 11: Q4-16 Outlook
Q4-16 Outlook Income Statement Item Q4-16 Outlook (expected changes from Q3-16) Revenues (1) Refer to Slide 7 for Q4-16 to-date spot tanker rates. Vessel operating expenses Expected to be consistent with Q3-16. Time charter hire expense Approximately $1.0 million decrease from the redeliveries of va
Slide 12: Consolidated Adjusted Line Items
Consolidated Adjusted Line Items Income Statement Item As Reported Appendix A Reclassification As Items (1) for Realized Adjusted Gain/ Loss on Derivatives Revenues 104,621 - 1,096 105,717 Asset Impairment (7,766) 7,766 - - Loss on sale of vessel (137) 137 - - Interest expense (6,809) - (1,277) (8,0
Slide 13: Drydock & Offhire Schedule
Drydock & Offhire Schedule Teekay Tankers March 31, 2016 (A) June 30, 2016 (A) September 30, 2016 (A) December 31, 2016 (E) Total 2016 Total 2017 Total Total Total Total Total Total Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Segment Days Day
Slide 14: Bringing Energy to the World
BRINGING ENERGY TO THE WORLD