Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2008 Earnings Presentation
9 slides from Teekay Tankers's earnings presentation, May 15, 2008
Slide 1: First Quarter 2008 Earnings Presentation
T E E K A Y T A N K E R S L T D. First Quarter 2008 Earnings Presentation May 15, 2008 www.teekaytankers.com 1
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: the Company’
Slide 3: First Quarter Highlights
First Quarter Highlights f Earned net income of $14.0m, or $0.56 per share f Generated Cash Available for Distribution of $17.6m f Declared our first full quarter dividend of $0.70 per share f Payable May 30 f Record date May 23 f Acquired 2 Suezmax tankers from Teekay in April 2008 3 www.teekaytank
Slide 4: Tactical Management of Fleet
Tactical Management of Fleet Name Y/ Built Dwt Narmada Spirit 2003 159,200 Kareela Spirit 1999 113,100 45% of the fleet operating in the spot market through the Kyeema Spirit 1999 113,300 Teekay’s Aframax and Suezmax (Gemini) Pools Nassau Spirit 1999 107,100 Sotra Spirit 1995 95,400 Erik Spirit 2005
Slide 5: Reasons Why the Market is Strong
3 Reasons Why the Market is Strong… f Reason #1 : Strong tanker demand growth driven by higher oil volumes and growing average transportation distances f Rising demand in China / developing Asia which accounts for ~70% of 2008 global oil demand growth. Q1-08 China’s crude imports up ~15% year on yea
Slide 6: Reasons Why the Market is Strong
3 Reasons Why the Market is Strong… f Reason #2 : Limited 2008 tanker supply growth f Conversion sales continue across all tanker segments => Q1-08 tanker fleet growth of only 0.6% from end of 2007 f Record high scrap prices (at ~ / > USD 700 / ldt) encouraging scrap sales f Expecting slippage in de
Slide 7: Reasons Why the Market is Strong
3 Reasons Why the Market is Strong… f Reason #3 : Operational Constraints f Increased discrimination against single-hull tankers f Infrastructure bottlenecks fLimited shore tank capacity fFloating storage fStretched repair yard availability f Temporary Factors fStrikes, weather fStockpiling in China
Slide 8: Fleet Utilization Driving Spot Rates
Fleet Utilization Driving Spot Rates Utilization Suezmax Spot Rates 80,000 94% 70,000 93% 60,000 92% Suezmax Spot Rates 50,000 91% (USD / Day) Utilization 90% = Full Fleet Utilization 40,000 90% RHS 30,000 89% 20,000 88% 10,000 87% 0 86% 2004 2005 2006 2007 Q1-08 Source : CRS / Platou 8 www.teekayta
Slide 9: Significant Growth Opportunities
Significant Growth Opportunities f Over 1,500 crude oil 3rd party tankers in the world acquisitions f Over 450 product tankers in the world S ND DE f 6 Aframaxes VI Teekay owns DI 32 other f 3 Suezmaxes NG tankers SI f 12 Product tankers EA suitable for CR TNK to acquire f 10 Newbuilds IN 2 more f T