Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q4 2013 Earnings Presentation
14 slides from Teekay Tankers's earnings presentation, Feb 20, 2014
Slide 1: Fourth Quarter and Fiscal 2013 Earnings Presentation
Fourth Quarter and Fiscal 2013 Earnings Presentation February 20, 2014 TEEKAY TANKERS 1
Slide 2: Forward Looking Statements
Forward Looking Statements This release 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 crude oil and
Slide 3: Recent Highlights
Recent Highlights • Q4-13 Results – Reported adjusted net loss of $0.03 per share – Generated Cash Available for Distribution (CAD)(1) of $0.12 per share – Declared quarterly fixed dividend of $0.03 per share – Recorded a $14.9 million reversal of the loss provision on investment in term loans • Joi
Slide 4: Investment in Tanker Investments Ltd.
Investment in Tanker Investments Ltd. • In Q1-14, Teekay Tankers and Teekay Corporation jointly created and co-invested $25 million each in Tanker Investments Ltd. (TIL), equating to a 10% equity interest each – Initial fleet consists of 4 Aframaxes and 4 Suezmaxes with over $100 million currently a
Slide 5: Investment in VLCC Mortgage Loans
Investment in VLCC Mortgage Loans • All vessels securing the investments in term loans are under Teekay Tankers management and generating positive cash flow in the spot market • Due to an increase in tanker vessel values, Teekay Tankers recognized $2.0 million of interest income and recorded a $14.9
Slide 6: Mid-Size Tanker Spot Rates Hit 5-Year High
Mid-Size Tanker Spot Rates Hit 5-Year High 160 Aframax Suezmax 140 ‘000s USD / day 120 100 80 60 40 20 0 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Source: Clarksons • Aframax / Suezmax spot rates hit 5-year highs in Jan’14: • Record high Chinese crude
Slide 7: Stable Product Tanker Earnings
Stable Product Tanker Earnings 20 20 LR2 (TNK Actual) LR2 (Clarksons) MR (TNK Actual) MR (Clarksons) 18 18 16 16 ‘000s USD / Day ‘000s USD / Day 14 14 12 12 10 10 8 8 6 6 Source: Clarksons / TNK Source: Clarksons / TNK 4 4 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q1-2014* to d
Slide 8: Improving Demand Fundamentals
Improving Demand Fundamentals IEA’s 2014 Oil Demand Forecast by Report Date 92.6 92.5 Million Barrels Per Day 92.4 ~0.6 mb/d increase 92.3 92.2 92.1 92.0 91.9 91.8 91.7 Source: IEA 91.6 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Oil Market Report Date • The global economic recovery is g
Slide 9: Higher Fleet Utilization Starting in 2014
Higher Fleet Utilization Starting in 2014 Tanker Demand Growth Tanker Supply Growth Fleet Utilization 92% 8% 90% 7% 88% 6% 86% 5% 84% 4% 82% 3% 80% 2% 78% 1% 76% 0% 2008 2009 2010 2011 2012 2013 2014E 2015E Source: Platou / Internal Estimates • Improvement in rates expected from 2014 onwards due to
Slide 10: Q1-14 Spot Earnings Update
Q1-14 Spot Earnings Update • Overall, average spot bookings for Q1-14 to-date are higher than Q4-13 (based on approximately 65% and 75% of days booked in the quarter for Suezmax/Aframax and LR2 segments, respectively) o Suezmax $34,300 per day (vs. $15,200 per day in Q4-13) o Aframax $25,300 per day
Slide 11: Appendix
Appendix TEEKAY TANKERS 11
Slide 12: Fleet Employment Update
Fleet Employment Update Kareela Spirit Aframax 1999 Kyeema Spirit Aframax 1999 BM Breeze Aframax 2008 12,000 In-Charter Donegal Spirit LR2 2006 Limerick Spirit LR2 2007 Galway Spirit LR2 2007 Ganges Spirit Suezmax 2002 Trading in Fixed-Rate Coverage (estimated) Yamuna Spirit Suezmax 2002 Teekay Pool
Slide 13: TNK 2014 Drydock Schedule
TNK 2014 Drydock Schedule March 31, 2014 (E) June 30, 2014 (E) September 30, 2014 (E) December 31, 2014 (E) Total 2014 Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Off-hire Off-hire Off-hire Off-hire Off-hire Off-hire Off-hire Off-hire Off-hire Off-hire Entity Segment Days D
Slide 14: Teekay Tankers
TEEKAY TANKERS 14