Slide 1: Second Quarter 2012 Earnings Presentation
Second Quarter 2012 Earnings Presentation August 9, 2012
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 • Declared Q2-12 dividend of $0.11 per share ○ Payable on August 27th to all shareholders of record on August 20th • In late-June, completed acquisition of 13 modern conventional tankers from Teekay Corporation • Acquisition and new charter contracts have increased fixed coverage f
Slide 4: Recent Time-Charter Transactions
Recent Time-Charter Transactions • Time-charter out contracts enhance downside protection • In-charters provide operating leverage without capital requirement – preserves balance sheet and liquidity for growth opportunities ○ Options on in-charters provide flexibility to manage fleet exposure Time-c
Slide 5: Teekay Tankers Fleet
Teekay Tankers Fleet Fixed-Rate Coverage (estimated) Name Class Y/Built Nassau Spirit Aframax 1998 Pre- After Acquisition & Kareela Spirit Aframax 1999 Acquisition Recent Charters Everest Spirit Aframax 2004 Esther Spirit Aframax 2004 12 Months Commencing Star Lady Aframax 2005 July 1, 2012 29% 47%
Slide 6: Q3-12 Dividend Outlook
Q3-12 Dividend Outlook • Average spot bookings in Q3 to date are showing segment-specific volatility compared to the previous quarter (based on ~40% days booked) ○ Aframax/LR2: $11,800 per day (vs. $10,600 per day in Q2-12) ○ Suezmax: $14,000 per day (vs. $22,800 per day in Q2-12) Q3-2012 Estimated
Slide 7: Reduced Tanker Demand During Summer Months
Reduced Tanker Demand During Summer Months Suezmax Spot Average Aframax Spot Average LR2 Spot Average 50,000 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 45,000 40,000 35,000 USD / Day 30,000 25,000 20,000 15,000 10,000 5,000 0 Aug-11 Sep-11 Oct-11 Apr-11 Apr-12 May-11 Jul-11 May-12 Jul-12 Mar-11 Nov-11 Dec-
Slide 8: Tanker Market Outlook For 2H-2012
Tanker Market Outlook For 2H-2012 • Seasonally weak summer market is upon us ○ Q3 traditionally the worst quarter for tanker rates ○ Uncertain global economy impacting oil demand ○ Potential for lower OPEC oil production as demand for stockpiling wanes • Stronger winter market fundamentals expected
Slide 9: Expectations For 2013 Demand Have Weakened
Expectations For 2013 Demand Have Weakened Evolution of the EIA’s 2013 Oil Tanker Demand Growth Tanker Fleet Growth Demand Growth Forecast 8% = Reduced Demand Estimate OECD Non-OECD Total 1.6 7% Demand Range Supply Range 1.4 6% 1.2 % Growth MB / Day 1.0 5% 0.8 4% 0.6 0.4 3% 0.2 2% 0.0 -0.2 1% -0.4 0
Slide 10: Zero Aframax / LR2 Fleet Growth Expected in 2013
Zero Aframax / LR2 Fleet Growth Expected in 2013 Aframax / LR2 Fleet Profile Suezmax Fleet Profile 800 400 700 350 Vessels Vessels 600 300 500 250 400 200 300 150 200 100 100 50 0 0 Fleet 0-14 Fleet 15+ Orderbook Fleet 0-14 Fleet 15+ Orderbook years years years years Aframax / LR2 Fleet Growth Suezm
Slide 11: Strong Financial Position
Strong Financial Position • June 30, 2012 total liquidity of approximately $386 million • Low principal repayments through 2016 • No financial covenant concerns ($ millions) NYSE: TNK 11 www.teekaytankers.com
Slide 12: Q2-12 & Q1-12 Adjusted Income Statements
Q2-12 & Q1-12 Adjusted Income Statements Teekay Tankers Ltd. Comparative adjusted income statements For the periods ended Three Months Ended Three Months Ended June 30, 2012 March 31, 2012 A B C A-B-C=D A B C A-B-C=D Earnings Earnings GAAP Net attributable to TNK Adjusted attributable to TNK Adjuste