Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2010 Earnings Presentation
13 slides from Teekay Tankers's earnings presentation, May 13, 2010
Slide 1: Q1 2010 Earnings Presentation
TEEKAY TANKERS LTD. Q1 2010 Earnings Presentation May 13, 2010 www.teekaytankers.com
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 f Declared dividend of $0.37 per share, up 42% from $0.26 per share paid in the previous quarter f Payable on May 28 to all shareholders of record on May 21 f Earned average TCE rates of $17,624 per day on the spot Aframax fleet and $32,032 per day on the spot Suezmax fleet f Earne
Slide 4: Highlights from Recent Accretive Transactions
Highlights from Recent Accretive Transactions f Acquired three vessels, two of which are on fixed-rate charters, for total price of $168.7m, and sold the Falster Spirit for ~$17m Ship Name Built Type Total Charter Charter Time-charter Value Type Expiry rate Acquired Yamuna Spirit 2002 Suezmax $61.9m
Slide 5: Transactions Strengthen Financial Position
Transactions Strengthen Financial Position f Increases percentage of fleet trading fixed-rate from 55% to 64% for 2010 f Reduces leverage (net debt to capitalization) from 59% at Mar. 31, 2010 to ~45% pro-forma for the transactions and associated equity offering f Sponsor, Teekay Corp. contributed $
Slide 6: New ships in-line with tactically managed fleet mix
New ships in-line with tactically managed fleet mix Name Y/ Built Dwt Fleet Coverage Matterhorn Spirit 2005 114,800 (by Revenue Days) Kaveri Spirit 2005 149,985 Trading in Fixed Spot Teekay Pools Ashkini Spirit 2003 165,200 2010E 60% 40% Kanata Spirit 1999 113,000 2011E 34% 66% Sotra Spirit 1995 95,
Slide 7: Updated Calc. of TNK's 2010 Illustrative Dividend Estimate
Updated Calc. of TNK’s 2010 Illustrative Dividend Estimate (run-rate basis) f Fixed rate revenues cover all 2010 costs and reserves, with an additional $0.31 per share available for payout as dividends f In addition, all revenues from spot fleet available to be paid out to shareholders f New illustr
Slide 8: Spot Traded Fleet Provides Significant Operating Leverage
Spot Traded Fleet Provides Significant Operating Leverage f Every $5,000 per day in spot TCE provides an additional $0.22 per share to annual dividend Dividend Illustrative 2010 Dividend Run-rate Yield 17% $2.00 Previous Illustrative Annualized Dividend Annual Dividend 15% $1.80 Pro Forma Illustrati
Slide 9: Q2 2010 Dividend Matrix
Q2 2010 Dividend Matrix f Current tanker rates exceed rates experienced in last 6 weeks f Estimated dividend for Q2 positively impacted by acquisitions Q2-2010 Estimated Suezmax Spot Rate Assumption (TCE per day) Dividend Per Share $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $10,000 0.22 0.24 0.
Slide 10: Spot Tanker Rates Have Been Firming
Spot Tanker Rates Have Been Firming 55,000 Suezmax Aframax 50,000 45,000 40,000 35,000 USD / Day 30,000 25,000 20,000 15,000 10,000 5,000 0 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 to date Source : Clarksons 10 www.teekaytankers.com
Slide 11: Strongest Oil Demand Growth Since 2004
Strongest Oil Demand Growth Since 2004 Non-OECD Driving Oil Demand Growth Oil Market Fundamentals 3.0 OECD China f 2010 expected to be the strongest year for oil 2.5 Other Non-OECD Total Demand Grow th 2.0 demand growth since 2004 led by non-OECD. Million Barrels Per Day 1.5 1.0 0.5 f 16% yr-on-yr i
Slide 12: Tanker Fleet Growth Tempered By Increased Scrapping
Tanker Fleet Growth Tempered By Increased Scrapping Tanker Removals on the Rise Tanker Supply Update Tanker Removals Scrap Price f 2010 ytd fleet growth tempered by increase in 8.0 500 tanker scrapping / removals – single hull 7.0 450 phase-out is a key catalyst. Million Deadweight USD per ldt 6.0 4
Slide 13: 2010 Tanker Fleet Utilization Outlook
2010 Tanker Fleet Utilization Outlook 94% 94% 2010 2010 Base Case Recovery Case +/- 2% 92% 92% +1% Fleet Utilization Fleet Utilization 90% 90% +1.5% +0.5% 88% +0.5% 88% +0.5% 86% Upside Potential + 6% 86% 86% 84% 84% Source: IMF / IEA / CRS / Platou / Internal estimates 82% 82% 2010 (E) (1) Stronger