Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2022 Earnings Presentation
17 slides from Teekay Tankers's earnings presentation, Aug 1, 2022
Slide 1: Teekay Tankers Second Quarter 2022 Earnings Presentation
Teekay Tankers Second Quarter 2022 Earnings Presentation August 4, 2022
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 Total adjusted EBITDA(1) of $58.1 High operating leverage with 49 Oil supply chain disruptions related million, up $40.6 million from Q1-22 vessel trading in the spot market to Russia-Ukraine conflict are proving supports continued ba
Slide 4: Significant Increase in Mid-Size Tanker Spot Rates in Q2-22
Significant Increase in Mid-Size Tanker Spot Benchmark Crude Tanker Spot Rates Rates in Q2-22 VLCC Suezmax Aframax Return of spot rate volatility following 80 Russia’s invasion of Ukraine in late Feb-22 with rates in Q2-22 averaging Q2-22 significantly higher both quarter-on- 70 Suezmax: $23,285 / d
Slide 5: Q3-22 To-Date Spot Rates
Q3-22 To-Date Spot Spot Rates Rates 40,000 35,000 Q3-22 to-date rates are strong during what is traditionally a 30,000 seasonally weak quarter Rate ($/day) 25,000 Q3-22 to-date rates are 3-5x higher compared to last year’s Q3 rates. 20,000 35,600 35,400 15,000 29,600 25,300 25,100 26,700 10,000 5,00
Slide 6: Russia-Ukraine Tonne-Mile Impacts Proving to be Durable for Mid-Size Tankers
Russia-Ukraine Tonne-Mile Impacts Proving to be Durable Changing Crude Oil Trade Patterns Following Russia’s Invasion of Ukraine for Mid-Size Tankers Short-haul movements of Russian crude oil into Europe -700,000 b/d have continued to fall and are expected to decline further once the EU’s ban on Rus
Slide 7: Robust Tanker Supply / Demand Fundamentals For Next 2-3 Years
Robust Tanker Supply / Demand Fundamentals Tanker Demand Set to Outstrip Fleet Growth in 2022 / 23 Mid-Size Deliveries (as per Current Orderbook) For Next 2-3 Years Demand Growth Fleet Growth 100 Aframax Suezmax Number of Vessels 8 80 Tanker demand growth is projected to significantly outstrip suppl
Slide 8: High Operating Leverage and Improved FCF Per Share Rates Enable Balance Sheet Deleveraging
High Operating Leverage and Improved FCF Per Share Spot Rate Sensitivity Net Debt(5) to Balance Sheet Rates Enable Balance Next 12 Months(1,2) Capitalization Sheet Deleveraging $20.00 $700 High operating leverage coupled $18.00 $630 48% with recent market strength enables balance sheet improvements
Slide 9: Appendix
Appendix 9
Slide 10: Manageable Debt Repayments
Manageable Debt Repayments Debt Repayment Profile(1,2) 150 100 $ Millions 34 50 69 62 63 64 36 0 Remaining 6 months of 2023 2024 2025 2026 2022 Scheduled Repayments incl. Capital Leases Balloon Payments (1) Excludes working capital loan facility which is expected to be continually extended for perio
Slide 11: Fleet In-Charters
450 400 Fleet In-Charters(1) 350 Ship Days 300 250 200 150 100 50 - Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Aframax/LR2 Days 341 368 427 364 314 230 182 182 118 92 Aframax/LR2 Rate 18,782 19,138 19,144 19,488 19,743 20,330 20,850 20,850 19,647 18,700 Aframax/L
Slide 12: Fleet Out-Charters
400 Fleet Out-Charters(1) 350 300 Ship Days 250 200 150 100 50 - Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Aframax/LR2 Days 92 92 1 - - - - - - - Aframax/LR2 Rates 18,000 18,000 18,000 - - - - - - - Aframax/LR2 Days (1) Based on existing charters excluding exten
Slide 13: Q3-22 Outlook
Q3-22 Outlook Income Statement Q2-22 in Q3-22 Outlook(1) thousands Item adjusted basis(1) (expected changes from Q2-22) Decrease of approximately 130 net revenue days, comprised of a reduction of 15 spot days and 115 fixed days, primarily due to more dry-docking days in Q3-22 compared to Q2-22, as w
Slide 14: Adjusted Net Income (Loss)
Adjusted Net Income (In thousands of U.S. dollars) (Loss)(1) Q2-2022 Q1-2022 Statement Item Variance Comments (unaudited) (unaudited) Q2-22 vs Q1-22 Revenues 242,689 173,995 68,694 Voyage expenses (126,980) (101,622) (25,358) (2) Net revenues 115,709 72,373 43,336 Increase primarily due to higher ov
Slide 15: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of (In thousands of U.S. dollars) Income Statement Item As Reported Appendix A Items Reclassification for As Adjusted (1) Q2-22 Realized Gain/ Loss on Derivatives Revenues 242,389 - 300 242,689 Voyage expenses (126,980) - - (126,980) Net revenues (2) 115,409 - 300 115
Slide 16: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2022 (A) June 30, 2022 (A) September 30, 2022 (E) December 31, 2022 (E) Total 2022 (E) 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 Spo
Slide 17: Slide 17