Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q4 2014 Earnings Presentation
12 slides from Teekay Tankers's earnings presentation, Feb 19, 2015
Slide 1: Teekay Tankers Fourth Quarter and Fiscal 2014 Earnings Presentation
TEEKAY TEEKAY TEEKAY TANKERS FOURTH QUARTER AND FISCAL 2014 EARNINGS PRESENTATION February 19, 2015
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: the crude oi
Slide 3: Recent Highlights
Recent Highlights • Financial Results ○ Reported adjusted net income of $18.6 million, or $0.21 per share, up from $2.6 million, or $0.03 per share in Q3-14 ○ Reported adjusted net income of $33.9 million, or $0.39 per share, in FY2014 compared to adjusted net loss of $16.3 million, or $0.20 per sha
Slide 4: Recent Fleet Acquisitions
Recent Fleet Acquisitions In December 2014, Teekay Tankers acquired 4 LR2s and 1 Aframax tanker • Aggregate purchase price of $230 million, funded with a combination of equity and debt financing ○ Completed a $125 million equity offering in December 2014, including $20 million to Teekay Corporation
Slide 5: Strategic Actions are Rewarding Shareholders
Strategic Actions are Rewarding Shareholders Additional spot exposure in a rising market is maximizing returns TNK Fleet Employment Mix TNK FCF1 Per Share Spot Rate Sensitivity 18,000 85% 90% $2.50 Current Average Aframax Spot Rate = $30,000/day 16,000 80% 14,000 64% 70% $2.00 Spot Exposure Operatin
Slide 6: 2014/15 Winter Rally
2014/15 Winter Rally Strong tanker demand driven by an increase in global oil movements • Average mid-size tanker rates in Q4-2014 were the highest since Q4-2008 • Increased commercial and strategic stock-building drove up tanker demand • Higher refinery throughput as refiners took advantage of posi
Slide 7: Positive Impact of Low Oil Prices on Tanker Earnings
Positive Impact of Low Oil Prices on Tanker Earnings Low oil prices expected to persist through 1H-2015 • Increased earnings: each $10 drop per barrel in the price of oil is equivalent to $2,400 per day in bunker fuel savings • Improved refining margins leads to greater refinery throughput • Potenti
Slide 8: Changing Tanker Routes Increases Voyage Distances
Changing Tanker Routes Increases Voyage Distances Increased flow of crude oil from the Atlantic to Pacific Source: Clarksons 8
Slide 9: Q1-15 Spot Earnings Update
Q1-15 Spot Earnings Update • Overall, average spot bookings for Q1-15 to-date are higher than Q4-14 based on approximately 60% and 80% of days booked in the quarter for Suezmax/Aframax and LR2 segments, respectively. $40,000 $39,000 $35,000 $30,000 $30,000 $26,600 $25,700 $26,000 $25,000 $22,100 $21
Slide 10: Appendix
APPENDIX 10
Slide 11: Fleet Employment Profile
Fleet Employment Profile In-Charter Portfolio (1) Aframax $12,000 Optional Period Aframax $15,600 Optional Period Aframax $15,750 Optional Period Aframax $15,600 Aframax $17,100 Optional Period Aframax $18,600 Aframax $18,500 Optional Period Aframax $18,900 LR2 $16,400 Optional Period LR2 $15,000 Op
Slide 12: TNK 2015 Drydock & Offhire Schedule
TNK 2015 Drydock & Offhire Schedule March 31, 2015 (E) June 30, 2015 (E) September 30, 2015 (E) December 31, 2015 (E) Total 2015 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 25 1 25 1