Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2020 Earnings Presentation
19 slides from Teekay Tankers's earnings presentation, Aug 13, 2020
Slide 1: Teekay Tankers Q2-2020 Earnings Presentation
Teekay Tankers Q2-2020 Earnings Presentation August 13, 2020
Slide 2: Forward Looking Statement
Forward Looking This presentation contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of Statement 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 Q2-20 Results Strengthening our COVID-19 Update Balance Sheet Total adjusted EBITDA(1) of $124.2 Generated $125.8 million of free Ongoing efforts to safely change-out million, up $88.0 million from Q2-19 cash flow(1) in Q2-20 our overdue seafarers Adjusted net income(1) of $80.7 •
Slide 4: Third Consecutive Quarter of Strong Spot Rates
Third Consecutive Quarter of Strong Spot Mid-Size Tanker Spot Rates Rates in Q2-20 100 Suezmax Aframax Tanker spot rates remained firm in Q2-20 driven by: 90 • Elevated crude trade at the start of 80 the quarter due to Saudi Arabia / Russia price war 70 ‘000 USD / day • Floating storage demand, whic
Slide 5: Q3-20 Spot Rates and Fixed Charters
Spot Rates Q3-20 Charter rates 60,000 Fixed rates charters(1) $46,500 • Currently, 23% of fleet fixed at weighted average rate of 40,000 TCE $39,100 per day $29,600 $29,600 Combined spot and fixed rate $24,800 charters for Q3-20: 20,000 $16,300 $15,600 $14,900 $14,700 • 73% of Suezmax days fixed at
Slide 6: Opposing Tanker Demand / Supply Forces Over the Next 12-18 Months
Opposing Tanker Demand / Supply Forces Over the Next Global Oil Market Balance Crude Tanker Floating Storage(1) 12-18 Months 105 12.0 250 Aframax Suezmax VLCC Rising oil demand and supply 10.0 counterbalanced by ships returning from storage 100 8.0 200 Tanker demand set to improve gradually from 2H-
Slide 7: Positive Fleet Supply Fundamentals vs. Potential Scrap Candidates
Positive Fleet Supply Tanker Orderbook (% of Fleet) Mid-Size(1) Tanker Orderbook Fundamentals vs. Potential Scrap Candidates 50% 400 Tanker orderbook at a 20+ year low with significant 45% phase-out potential in the 350 18-20 years coming years 40% 35% 300 140 mid-size vessels on order 15-17 years v
Slide 8: Balance Sheet Transformation
Balance Sheet Transformation FCF(1) last 12 months of Q2-19 Q2-20 Change $381M Balance sheet significantly strengthened in the last four Net Debt $994M $549M -$445M ✓ quarters Time charter-out contracts Net Debt to Cap 51.2% 31.5% -19.7% ✓ secured during market peaks lowers spot fleet free cash flow
Slide 9: Appendix
Appendix 9
Slide 10: Significant Operating Leverage
Significant Operating Leverage FCF(1)(2) Spot Rate Sensitivity Next-12-Months(4) $800 $700 $600 $ in millions $500 $400 Q2-2020 Avg TCE $300 $200 $100 Q3-2020 Avg fixed to-date TCE $0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 Average Mid-Sized Spot Rates(3) (
Slide 11: Proforma Debt Repayment Profile
Proforma Debt Repayment Profile No Debt Maturities Until Proforma Debt Repayment Profile(1,2,3) 2023 250 200 148 150 $ Millions 100 34 50 88 74 38 41 17 0 2H-2020 2021 2022 2023 2024 Repayments incl. Capital Leases Balloon Payments (1) Proforma for new 3-year, $67 million term loan to refinance debt
Slide 12: NAV Breakdown
NAV Breakdown Net Asset Value (NAV) / share FMV FMV FMV FMV No. Type Year Built No. Type Year Built (2020) (2019) (2020) (2019) 1 Suezmax 2003 Sold 16.0 31 Aframax 2003 11.0 13.0 August August 2 Suezmax 2003 Sold 16.0 32 Aframax 2004 13.0 15.0 2020 2019 3 Suezmax 2003 Sold 16.0 33 Aframax 2004 13.0
Slide 13: Fleet Employment – In-Charters
500 Fleet Employment – In-Charters(1) 400 Ship Days 300 200 100 - Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Aframax/LR2 Days 368 368 183 91 68 - - - - Aframax/LR2 Rates 21,188 21,188 21,471 21,000 21,000 - - - Aframax/LR2 Days (1) Based on existing charters excluding ex
Slide 14: Fleet Employment – Out-Charters
1,000 Fleet Employment – 900 Out-Charters(1) 800 Ship Days 700 600 500 400 300 200 100 - Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Suezmax Days 903 573 450 122 - - - - - Aframax/LR2 Days 322 322 279 210 184 184 180 103 - Suezmax Rates 42,865 44,312 45,600 45,189 - - - -
Slide 15: Q3-20 Outlook
Q3-20 Outlook Income Statement Item Q3-20 Outlook(1) (expected changes from Q2-20) Decrease of approximately 210 net revenue days, mainly due to more scheduled dry dockings in Q3-20 compared to Q2- 20, partially offset by more calendar days in Q3-20. Revenues Refer to Slide 5 for Q3-20 booked to-dat
Slide 16: Adjusted Net Income
Adjusted Net (In thousands of U.S. dollars) Income(1) Q2-2020 Q1-2020 Statement Item Variance Comments (unaudited) (unaudited) Q2-20 vs Q1-20 Revenues 246,292 341,851 (95,559) Decrease primarily due to lower overall spot TCE rates in Q2-20, the sale of three vessels in Q1-20, the sale of the non-US
Slide 17: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of (In thousands of U.S. dollars) Income Statement Item As Reported Appendix A Reclassification for As Adjusted Q2-20 Items (1) Realized Gain/ Loss on Derivatives Revenues 246,492 - (200) 246,292 Voyage expenses (61,558) - - (61,558) Vessel operating expenses (46,218)
Slide 18: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2020 (A) June 30, 2020 (A) September 30, 2020 (E) December 31, 2020 (E) Total 2020 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 Ta
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