Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q4 2020 Earnings Presentation
16 slides from Teekay Tankers's earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter and Annual 2020 Earnings Presentation
Teekay Tankers Fourth Quarter and Annual 2020 Earnings Presentation February 25, 2021
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 Financial Results Strong Balance Sheet Commercial Activity Q4-20 adjusted net loss(1) of Reduced net debt(2) by $419M, or Weak spot market offset by 20% of $(40.7)M, or $(1.21) per share, 45%, in 2020 to $510 million and Q4-20 days on fixed-rate compared to adjusted net income of n
Slide 4: Weak Spot Tanker Rate Environment
Weak Spot Tanker TNK Q4-20 Rates Benchmark Mid-Size Tanker Spot Rates Rate Environment Spot Rate Total Rate (Incl TCs) Suezmax Aframax Spot rates impacted by the 20 90 following in Q4-20: $18,200 18 80 • 2nd wave of COVID-19 and slowdown in oil demand growth 16 70 • OPEC+ supply constraint 14 ‘000 U
Slide 5: Q1-21 To-Date Charter Rates
Q1-21 To-Date Charter Charter Rates Rates 25,000 Combined spot and fixed rate 20,000 $18,900 $18,200 time charters for Q1-21: Rate ($/day) • 75% of Suezmax days fixed at an 15,000 $13,200 average rate of $18,900 per day $11,400 $10,000 $10,600 • 73% of Aframax days fixed at an 10,000 average rate of
Slide 6: Catalysts for a Tanker Market Recovery
Catalysts for a Tanker Global Oil Demand / Supply Tanker Fleet Growth Market Recovery Deliveries Scrapping Net Growth (% of Fleet) Demand Supply Improved supply and demand 104 40 8% conditions from 2H-2021, though 5.9% timing is uncertain 102 30 5.8% 6% 100 4.7% Tanker Demand: Million Barrels per Da
Slide 7: Year in Review: Established Resilient Financial Foundation
Year in Review: Established Resilient Financial Foundation Key Accomplishments in 2020 Operated well during COVID- Secured Refinancings and Reduced 19 pandemic Cost of Capital Transformed balance sheet • $277M generated, highest in TNK history Record Free Cash Flows(1) • Completed $600M of refin
Slide 8: Appendix
Appendix 8
Slide 9: Debt Repayment Profile
Debt Repayment Profile No Debt Maturities Until 2023 Debt Repayment Profile(1,2) 300 Liquidity of $373M as of December 31, 2020 200 $ Millions Expect to finance with existing liquidity and potentially a 148 new long-term debt facility 100 57 34 64 32 34 33 0 2021 2022 2023 2024 Scheduled Repayments
Slide 10: Fleet Employment – In-Charters
200 Fleet Employment – In-Charters(1) 150 Ship Days 100 50 - Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Aframax/LR2 Days 165 91 68 - - - - 92 90 Aframax/LR2 Rates 21,577 21,000 21,000 - - - - 18,700 18,700 Aframax/LR2 Days (1) Based on existing charters excluding extensi
Slide 11: Fleet Employment – Out-Charters
500 Fleet Employment – 450 Out-Charters(1) 400 350 Ship Days 300 250 200 150 100 50 - Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Suezmax Days 450 132 - - - - - - - Aframax/LR2 Days 366 301 276 188 180 103 - - - Suezmax Rates 45,600 45,174 - - - - - - - Aframax/LR2 Rates
Slide 12: Q1-21 Outlook
Q1-21 Outlook Income Statement Item Q1-21 Outlook(1) (expected changes from Q4-20) Increase of approximately 20 net revenue days, primarily due to fewer dry dockings in Q1-21 compared to Q4-20, partially offset by the redelivery of three in-chartered vessels in Q4-20 and early Q1-21 as well as fewer
Slide 13: Adjusted Net (Loss) Income
Adjusted Net (Loss) (In thousands of U.S. dollars) Income(1) Q4-2020 Q3-2020 Q4-20 vs Q3-20 Statement Item (unaudited) (unaudited) Variance Comments Revenues 126,992 170,056 (43,064) Decrease primarily due to lower overall spot TCE rates in Q4-20, as well as more scheduled dry dockings and off-hire
Slide 14: Consolidated Adjusted Statement of Loss
Consolidated Adjusted Statement of (In thousands of U.S. dollars) Loss Q4-20 Statement Item As Reported Appendix A Reclassification for As Adjusted Items(1) Realized Gain/ Loss on Derivatives Revenues 127,802 - (810) 126,992 Voyage expenses (58,649) - - (58,649) Vessel operating expenses (41,030) -
Slide 15: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2021 (E) June 30, 2021 (E) September 30, 2021 (E) December 31, 2021 (E) Total 2021 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 Ta
Slide 16: Slide 16