Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2021 Earnings Presentation
15 slides from Teekay Tankers's earnings presentation, Nov 4, 2021
Slide 1: Teekay Tankers Third Quarter 2021 Earnings Presentation
Teekay Tankers Third Quarter 2021 Earnings Presentation November 4, 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 Balance Sheet Market Activity Strength Total adjusted EBITDA(1) of ($15.8) Pro forma Liquidity of $209 million Weak freight market conditions in million, down from $(6.8) million as at September 30, 2021(2) Q3-21, but a modest improvement in Q2-21 seen in early Q4
Slide 4: Weak Spot Rates in Q3, but Signs of Life at the Start of Q4
Weak Spot Rates in Q3, but Signs of Life Benchmark Crude Tanker Spot Rates Q4-21 Oil Demand Forecast at the Start of Q4 VLCC Suezmax Aframax Fuel Switching Upside (High Case)* Spot tanker rates remained under 25 100.0 Fuel Switching Upside (IEA Base Case) pressure in Q3-21 IEA Forecast • Ongoing OPE
Slide 5: Q4-21 To-Date Spot Rates
Q4-21 To-Date Spot Spot Rates Rates 15,000 10,000 Rate ($/day) 11,600 5,000 10,300 10,200 9,400 6,000 6,800 0 Suezmax Aframax (1) LR2 (2) Q3-2021 Q4-2021 To-Date Suezmax Aframax(1) LR2(2) Q4-21 spot ship 2,283 1,175 904 days available Q4-21 % spot ship days booked 50% 37% 35% to-date (1) Earnings an
Slide 6: Key Indicators Remain on Track For a Tanker Market Recovery
Key Indicators Remain on Track For a Tanker Market Recovery Oil demand is recovering and Q1-21 Earnings Trend Current approaching pre-COVID levels Release (Feb’21) (Feb-Nov) Global Oil Demand Relative to pre- OECD oil inventories are well below 5- year average levels COVID Levels(1) -7.4 mb/d -1.9 m
Slide 7: Strong Financial Foundation
Strong Financial Foundation Pro forma Liquidity & Debt Repayment Profile(1,2,3) $209 million of pro forma liquidity(1) provides financial 250 resilience in weak spot market environment 209 200 Completed sale-leaseback refinancings of eight vessels at 69 lower interest rates $ Millions 150 148 • Refi
Slide 8: Appendix
Appendix 8
Slide 9: Fleet In-Charters
400 Fleet In-Charters(1) 350 300 Ship Days 250 200 150 100 50 - Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Aframax/LR2 Days 230 270 273 276 367 337 273 222 138 91 Aframax/LR2 Rate 17,590 17,700 17,700 17,788 18,061 18,115 18,317 18,394 18,550 18,700 Aframax/LR2 D
Slide 10: Fleet Out-Charters
400 Fleet Out-Charters(1) 350 300 Ship Days 250 200 150 100 50 - Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Aframax/LR2 Days 184 180 103 - - - - - - - Aframax/LR2 Rates 25,625 25,625 24,915 - - - - - - - Aframax/LR2 Days (1) Based on existing charters excluding e
Slide 11: Q4-21 Outlook
Q4-21 Outlook Income Statement Q3-21 in Q4-21 Outlook(1) thousands Item adjusted basis(1) (expected changes from Q3-21) Increase of approximately 110 net revenue days, comprised of an increase of 180 spot days and a reduction of 70 fixed days, primarily due to one in-chartered tanker that was delive
Slide 12: Adjusted Net Loss
(In thousands of U.S. dollars) Adjusted Net Loss(1) Q3-2021 Q2-2021 Statement Item Variance Comments (unaudited) (unaudited) Q3-21 vs Q2-21 Decrease primarily due to lower overall spot TCE rates in Q3-21 and a number of vessels Revenues 115,531 123,332 (7,801) returning from time-charter out contrac
Slide 13: Consolidated Adjusted Statement of Loss
Consolidated Adjusted Statement of (In thousands of U.S. dollars) Loss Statement Item As Reported Appendix A Items Reclassification for As Adjusted Q3-21 (1) Realized Gain/ Loss on Derivatives Revenues 115,890 - (359) 115,531 Voyage expenses (78,335) - - (78,335) Net revenues (2) 37,555 - (359) 37,1
Slide 14: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2021 (A) June 30, 2021 (A) September 30, 2021 (A) December 31, 2021 (E) Total 2021 Total 2022 (E) Total Total Total Total Total Total Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Se
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