Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2017 Earnings Presentation
14 slides from Teekay Tankers's earnings presentation, May 18, 2017
Slide 1: Q1-2017 Earnings Presentation
TEEKAY TANKERS Q1-2017 EARNINGS PRESENTATION May 18, 2017
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 • Q1-17 Financial Results ○ Generated adjusted net income(1) of $7.0 million, or $0.04 per share, and free cash flow(1) of $34.4 million • Dividend of $0.03 per share for Q1-17, consistent with dividend policy • Fleet Developments ○ Signed term sheet for a 12-year sale- leaseback f
Slide 4: Q1-2017 Spot Market Review
Q1-2017 Spot Market Review Rates trending downwards, but higher than the last market downturn 60 Q1 Crude Tanker Earnings 50 $53 Suezmax Aframax $46 $45 ‘000 USD / day 40 $38 $35 $34 $36 $34 30 $30 $28 $26 $27 20 $22 $22 $20 $20 $18 $17 10 $15 $13 $13 $12 0 Source: Clarksons • Q1-17 rates were lowes
Slide 5: Headwinds for Tanker Rates in 2017
Headwinds for Tanker Rates in 2017… …but Atlantic Basin supply increases provide support Mid-Size Tanker Delivery Schedule US Crude Production & Rig Count 60 US Crude Oil Rig Count US Crude Production* 50 9.8 1,600 LR2 9.6 1,400 Number of Rigs # of Vessels 40 Aframax 9.4 1,200 9.2 30 Suezmax 9 1,000
Slide 6: Positive Long-Term Supply Outlook
Positive Long-Term Supply Outlook Small mid-size orderbook from 2018+ and an aging fleet Mid-Size Tanker Fleet and Orderbook Profile 160 Suezmax Orderbook Aframax / LR2 Orderbook 325 Suezmax Fleet Aframax / LR2 Fleet 140 275 59 Number of Vessels 120 26 Number of Vessels 225 15 Years 100 Scrapping 39
Slide 7: Q2-17 Spot Earnings Update
Q2-17 Spot Earnings Update $25,000 $21,900 $20,000 $19,200 $18,900 $18,400 $15,000 $14,700 $15,000 $10,000 $5,000 $0 Suezmax 1 Aframax 2 LR2 Q1-17 Actual Q2-17 to-date Suezmax Aframax LR2 Q2-17 spot ship 1,236 1,081 455 days available Q2-17 % booked 55% 52% 40% to-date (1) Combined average spot TCE
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 - Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Aframax/LR2 Days 331 259 116 90 91 92 92 90 91 92 92 91 91 Aframax/LR2 Rates 18,467 19,591 21,551 22,750 22,750 22,750
Slide 10: Fleet Employment – Out Charters
Fleet Employment – Out Charters1 900 800 700 Ship Days 600 500 400 300 200 100 - Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 (2) VLCC Days 91 92 92 90 81 - - - - - - - - Suezmax Days 546 415 346 198 101 58 - - - - - - - Aframax/LR2 Days 856
Slide 11: Q2-17 Outlook
Q2-17 Outlook Income Statement Item Q2-17 Outlook (expected changes from Q1-17) Decrease of approximately 275 net revenue days in TNK, mainly due to the redeliveries of four in-charters to their ow ners at various times in Q1-17 and Q2-17, changes to vessel employment and the sale of vessels in Q1-1
Slide 12: Consolidated Adjusted Line Items
Consolidated Adjusted Line Items Q1-17 Income Statement Item As Reported Appendix A Reclassification As Items (1) for Realized Adjusted Gain/ Loss on Derivatives Revenues 125,096 - 780 125,876 Loss on sale of vessels (4,427) 4,427 - - Interest expense (7,306) - (440) (7,746) Realized and unrealized
Slide 13: Drydock & Offhire Schedule
Drydock & Offhire Schedule Teekay Tankers March 31, 2017 (A) June 30, 2017 (E) September 30, 2017 (E) December 31, 2017 (E) Total 2017 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 1 29
Slide 14: Bringing Energy to the World
BRINGING ENERGY TO THE WORLD