Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2024 Earnings Presentation
14 slides from Teekay Tankers's earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Earnings Presentation
Teekay Tankers Second Quarter 2024 Earnings Presentation August 1, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements included in this report, other than statements of
Slide 3: Recent Highlights
Recent Highlights Financial Market Commercial Total adjusted EBITDA(1) of $124 Mid-size tanker spot rates remain Sold two 2005-built vessels for million, and adjusted net income(1) strong and stable and continue to $64.8 million of $107 million, or $3.11 per share, outperform other asset classes in
Slide 4: Mid-Size Tanker Spot Rates Remain Strong and Stable
Mid-Size Tanker Spot Rates Remain Strong TNK’s Historical Q2 Average Mid-Size Tanker Rates Monthly Crude Tanker Spot Rates and Stable 65 Suezmax Aframax Fleetwide FCF Breakeven Q2-24 mid-size tanker spot rates 60 averaged above $40,000 / day for 60 the third quarter in a row 55 TMX began operations
Slide 5: Q3-24 To-Date Spot Rates
Q3-24 To-Date Spot Spot Rates Rates 50,000 Eight vessels in-chartered at an 40,000 average rate of $26,800 per day, mark-to-market value of Rate ($ / Day) approximately $53 million(2) 30,000 44,900 43,600 45,300 20,000 40,800 35,000 36,600 10,000 0 Suezmax Aframax / LR2 (1) Q3-2023 Q2-2024 Q3-2024 T
Slide 6: Market Outlook
Oil Supply / Demand Seaborne Oil Trade Tanker Fleet Supply Market Outlook • Global oil demand projected to • TMX pipeline operating at • 2024 on track to be the lowest grow by around 1.5 mb/d in around 300 kb/d (60% capacity) year for new tanker deliveries Supply and demand fundamentals each of 2024
Slide 7: Creating Shareholder Value
Creating Shareholder FCF Per Share Spot Rate Sensitivity Next 12 Months (1,2,3) Value 40% $25.00 52-vessel fleet continuing to create 35% significant shareholder value in strong tanker market 30% $20.00 • 96% of the fleet in the strong spot Last 12 months Annualized FCF Yield Annual FCF/Share Spot R
Slide 8: Appendix
Appendix 8
Slide 9: Ship Days: Fleet In-Charters
Fleet In-Charters 600 35,000 30,000 500 25,000 400 Ship Days 20,000 300 15,000 200 10,000 100 5,000 0 0 Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax / LR
Slide 10: Ship Days: Fleet Out-Charters
Fleet Out-Charters(1) 100 60,000 90 50,000 80 70 40,000 60 Ship Days 50 30,000 40 20,000 30 20 10,000 10 0 0 Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax
Slide 11: Q3-24 Outlook
Q3-24 Outlook Q3-24 Outlook Income Statement Q2-24 in thousands (expected changes from Q2-24) Item Net decrease of approximately 194 net revenue days, consisting of a decrease of 257 spot days and an increase of 63 fixed days, primarily due to more scheduled dry dockings and higher associated off-hi
Slide 12: Adjusted Net Income
Adjusted Net Income(1) (In thousands of U.S. dollars) Q2-2024 Q1-2024 Statement Item Variance Comments Q2-24 vs Q1-24 (unaudited) (unaudited) Revenues 296,590 338,343 (41,753) Voyage expenses (100,097) (116,531) 16,434 (2) Decrease primarily due to lower overall spot TCE rates, more scheduled dry do
Slide 13: Reconciliation of Non-GAAP Financial Measure – Free Cash Flow
Reconciliation of Non- GAAP Financial Measure – Free Cash Flow (In thousands of U.S. dollars) Free cash flow (FCF) represents Three Months Ended net income, plus depreciation and June 30, amortization, unrealized losses from 2024 derivatives, non-cash items, FCF (unaudited) from equity-accounted inv
Slide 14: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2024 (A) June 30, 2024 (A) September 30, 2024 (E) December 31, 2024 (E) Total 2024 (E) Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Off-hire Days Off-hire Days Off-hire Days Off-hire Days Off-hire Days Segment Spo