Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2013 Earnings Presentation
16 slides from Teekay Tankers's earnings presentation, Aug 8, 2013
Slide 1: Second Quarter 2013 Earnings Presentation
Second Quarter 2013 Earnings Presentation August 8, 2013 TEEKAY TANKERS 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 crude oi
Slide 3: Recent Highlights
Recent Highlights • Q2-13 Results – Generated Cash Available for Distribution (CAD)(1) of $0.07 per share – Reported adjusted net loss of $0.08 per share – Declared quarterly fixed dividend of $0.03 per share • The 50% owned VLCC newbuilding, Hong Kong Spirit, delivered in June 2013 and commenced a
Slide 4: Strong Fixed-Rate Cover
Strong Fixed-Rate Cover Name Class Y/Built Kareela Spirit Aframax 1999 Erik Spirit Aframax 2004 BM Breeze Aframax 2008 $11,100 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 Suezma
Slide 5: Q2-2013 Tanker Market Update
Q2-2013 Tanker Market Update Spot Tanker Rates 30 Suezmax Aframax LR2 25 ‘000 USD / Day 20 15 10 5 Q3-12 Q4-12 Q1-13 Q2-13 0 Source: Clarksons • Crude tanker rates weakened in Q2-13 due to both structural and seasonal factors – Reduced US crude imports & lower Middle East OPEC oil production – Sprin
Slide 6: Period of Rapid Crude Tanker Fleet Growth Coming to an End
Period of Rapid Crude Tanker Fleet Growth Coming to an End Mid-Size Tanker Deliveries & Orderbook 30 Aframax Suezmax Number of vessels 25 Orderbook 20 15 10 5 0 Source: Clarksons • Lack of ordering has reduced the size of the crude tanker orderbook – Suezmax orderbook of 42 vessels = 9% of Suezmax f
Slide 7: Winter and 2014 Crude Tanker Market Outlook
Winter and 2014 Crude Tanker Market Outlook Seasonal Uptick in Tanker Demand During 2H-2013 92.5 Global Oil Demand • Seasonal improvement in tanker demand during 2H-2013 from: 91.5 – 1.5 mb/d higher global oil demand MB/D Source: IEA 90.5 – Winter weather delays 89.5 • Narrowing Brent / WTI spread c
Slide 8: Positive Product Fundamentals Despite Orders
Positive Product Fundamentals Despite Orders Product Tanker Demand Fundamentals Remain Positive… 2.5 Refining Capacity Growth • Global refining capacity set to 2.0 Asia Middle East China grow with more oil being refined “close to the wellhead” MB/D 1.5 1.0 • Refinery closures set to continue 0.5 in
Slide 9: Investment in VLCC Mortgage Loans - Background
Investment in VLCC Mortgage Loans - Background • In July 2010, TNK invested in two $57.5 million, three-year first-priority ship mortgages yielding 10% per annum, secured by two 2010-built VLCCs • While final maturity was due July 8, 2013, the last interest payment TNK received was in January 2013 •
Slide 10: Investment in VLCC Mortgage Loans – Going Forward
Investment in VLCC Mortgage Loans – Going Forward • TNK’s cash break-even for each VLCC is approximately $10,000 per day (OPEX plus interest) compared to the average VLCC tanker spot rate of approximately $15,500 per day since May 2013, when TNK took over management of the vessels from the Borrowers
Slide 11: STX Newbuilding Orders - Status Update
STX Newbuilding Orders - Status Update • In early-April, TNK ordered four fuel-efficient Long Range 2 (LR2) product tanker newbuildings from Korean shipbuilder, STX Offshore & Shipbuilding (STX) • In late-May, STX commenced a voluntary corporate restructuring program with its lenders – Review of ref
Slide 12: TNK Financial Profile
TNK Financial Profile • June 30, 2013 total liquidity of ~$256 million – Expected to increase by $123 million with the realization of the VLCC loans • Low principal repayments through 2016 • No financial covenant concerns $400 Total Liquidity $300 $256m Millions $200 $100 11 21 17 28 $0 30-Jun-13 2H
Slide 13: Q3-13 Spot Earnings Update
Q3-13 Spot Earnings Update • Overall, average spot bookings for Q3-13 to-date are similar to Q2-13 (based on approximately 50% and 65% of days booked in the quarter for Suezmax/Aframax and LR2 segments, respectively) o Suezmax $10,600 per day (vs. $12,150 per day in Q2-13) o Aframax $14,500 per day
Slide 14: Appendix
Appendix TEEKAY TANKERS 14
Slide 15: TNK 2013 Drydock Schedule
TNK 2013 Drydock Schedule Teekay Tankers March 31, 2013 (A) June 30, 2013 (A) September 30, 2013 (E) December 31, 2013 (E) Total 2013 Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Offhire Offhire Offhire Offhire Offhire Drydocked Drydocked Drydocked Drydocked Drydocked Segmen
Slide 16: TEEKAY TANKERS
TEEKAY TANKERS 16