Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2011 Earnings Presentation
11 slides from Teekay Tankers's earnings presentation, Aug 11, 2011
Slide 1: Q2 2011 Earnings Presentation
Q2 2011 Earnings Presentation August 11, 2011
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: tanker marke
Slide 3: Teekay Tankers' Key Attributes Still Strong
Teekay Tankers’ Key Attributes Still Strong » Fully-supported dividend; policy unchanged since IPO in Dec. 2007 (1) » Earned adjusted net income of $4.3 million, or $0.07 per share and generated (2) $13.2 million of Cash Available for Distribution after Reserves » Declared a dividend of $0.21 per sh
Slide 4: Details of Time-Charter In/Time-Charter Out Arrangement
Details of Time-Charter In/Time-Charter Out Arrangement » Teekay Tankers has time-chartered out 2 owned Aframaxes: Ship Name Built Firm Period Charter Type Time-charter rate per day Everest Spirit 2004 12 months Fixed-rate $17,200 Kanata Spirit 1999 12 months Fixed-rate $17,250 » And concurrently ti
Slide 5: Near-term Fixed-profit with Optionality to Upside
Near-term Highlights Fixed-profit from with Optionality to Upside Accretive Transactions $25,000 Exercise Options ~$3,000 profit per $20,000 Tanker Rates day for 2 ships per day $15,000 $10,000 Tanker Rates Do Not Exercise Options $5,000 Sep‐11 Feb‐12 Apr‐12 Jul‐12 Sep‐12 Feb‐13 Apr‐13 Jul‐13 Aug‐11
Slide 6: Profile of TNK's Tactical Fleet Management
Profile of TNK’s Tactical Fleet Management Name Y/ Built Dwt Time-charter-in Firm Period Kaveri Spirit 2004 149,985 Ashkini Spirit 2003 165,200 Pro Forma Coverage Iskmati Spirit 2003 165,209 Trading in Fixed Spot Sanko Brave 2003 106,000 Teekay Pools Stavanger Bell 2010 105,000 Q3-Q4’11E 60% 40% Eri
Slide 7: Q3 2011 Dividend Matrix
Q3 2011 Dividend Matrix » For Q3-11 to-date, average spot bookings are down from the previous quarter (based on ~45% days booked) • Aframax: $11,000 per day (vs. $16,411 per day in Q2-11) • Suezmax: $10,000 per day (vs. $17,544 per day in Q2-11) Q3 2011 Dividend Estimate Suezmax Spot Rate Assumption
Slide 8: No Relief From Vessel Oversupply During Q2-2011
No Relief From Vessel Oversupply During Q2-2011 Q3-2010 Q4-2010 Q1-2011 Q2-2011 Source: Clarksons » Tanker supply continued to outweigh demand as newbuildings entered the market » Negative seasonal impact of refinery maintenance and lower oil demand » N. Sea field maintenance / Libyan supply disrupt
Slide 9: Long Term Outlook – Tanker Orderbook Continues to Shrink
Long Term Outlook – Tanker Orderbook Continues to Shrink » Only 3.5 mdwt of new tanker orders placed through the start of 2011 • On track for the lowest annual level of new tanker ordering since 1985 » Owners deterred by relatively high tanker newbuilding prices versus T/C rates • Rising steel costs
Slide 10: Long Term Outlook – On Track For Recovery From End-2012
Long Term Outlook – On Track For Recovery From End-2012 Tanker Demand Growth Tanker Fleet Growth 8% 7% Demand Range Supply Range 6% % Growth 5% 4% 3% 2% 1% 0% 2009 2010 2011E 2012E 2013E Source: Platou / Internal estimates Global Floating storage Lack of storage, Moving towards Tanker market recessi
Slide 11: TNK Financial Strength is a Competitive Advantage
TNK Financial Strength is a Competitive Advantage » Low spot tanker cash flow breakeven » Net Debt/Cap: 38.6% below $0 / day in 2011 » Minimal principal payments through 2015 » June 30, 2011 total liquidity: $294 » Committed Term Sheet signed for VLCC million $350 newbuilding Total $300 Liquidity $2