Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2024 Earnings Presentation
18 slides from Teekay Tankers's earnings presentation, Oct 31, 2024
Slide 1: Teekay Group Q3-2024 Earnings Presentation
Teekay Group Q3-2024 Earnings Presentation
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements included in this presentation, other than statemen
Slide 3: One Teekay: Simplified Structure
One Teekay: Simplified Structure Teekay Group has taken several important steps to streamline the organization Today Going Forward Strong, Supportive Sponsor Teekay Teekay Corporation (TK) Corporation (TK) Fully-integrated Group Operating Platform Teekay Teekay Australia Shore-based Teekay Tankers (
Slide 4: Q3-24 TK Highlights
Q3-24 TK Highlights Returning capital to shareholders Adj. Net Income(1) Adj. EPS(1) $21.1 million $0.23 per share • Agreed to sell Teekay Australia for $65 million in cash and transfer management services companies for net working capital value to TNK • Allocating up to $230 million of cash: o Retu
Slide 5: Q3-24 TNK Highlights
Q3-24 TNK Highlights Q3-24 vs. Q3-23 Spot Rates Historically strong quarterly performance Adj. Net Income(1) Adj. EPS(1) Adj. EBITDA(1) 35,000 36,600 35,900 31,000 $63.5 million $1.84 per share $75.9 million • Agreed to acquire Teekay Australia for $65 million in cash Suezmax Aframax / LR2(2) o Esti
Slide 6: Teekay Australia
Niche Market Long-Term Contracts Asset / CAPEX Light TEEKAY AUSTRALIA OPERATING SINCE 1997 Accretive • Services: crew management, technical management, asset management, and procurement primarily for the Australian Government • A leading employer of Australian seafarers Growth Potential • Currently
Slide 7: Near-term Outlook
Near-term Outlook Spot tanker rates remained firm in Q3; anticipating TNK’s Third Quarter Average Mid-Size seasonally higher rates in Q4 Tanker Spot Rates 50 ‘000 USD / Day 40 • Spot tanker rates in Q3 were amongst the highest on record, 30 albeit lower compared to Q2 due to seasonal factors: 20 o L
Slide 8: Long-term Outlook
Long-term Outlook Tanker demand and supply fundamentals remain positive Tanker Demand Drivers Tanker Supply Drivers + Global oil consumption is at a record high with projected growth of + Major shipyards have over 3 years of forward cover (earliest delivery 1.2 mb/d in 2024 and 1.3 mb/d in 2025 driv
Slide 9: Fleet Profile Drives Value Creation
Fleet Profile Drives Value Creation Last 12-month FCF per share of $13.29 per share(1) FCF Per Share Spot Rate Sensitivity Next 12 Months (1,2,3) • Low FCF break-even of approximately $14,000 per day(3) 50% $25 45% Last 12 months $20 40% Annualized FCF Yield spot rate Annual FCF/Share • Significant
Slide 10: Appendix
Appendix 10
Slide 11: TK Sum-of-the-Parts (SOTPs)
TK Sum-of-the-Parts (SOTPs) TK SOTP Value In millions Total TNK investment (10.64M Class A and B shares and TNK’s closing share price $509 of $47.85 per share on October 30, 2024) (1) Teekay Australia (2) 65 Pro forma Teekay Parent cash position – September 30, 2024 (3) 224 TK equity value 798 # of
Slide 12: Fleet In-charters
Fleet In-charters 450 $40,000 400 $35,000 350 $30,000 300 $25,000 Ship Days 250 $20,000 200 $15,000 150 $10,000 100 $5,000 50 0 $0 Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezm
Slide 13: Fleet Out-charters
Fleet Out-charters(1) 100 $60,000 90 $50,000 80 70 $40,000 60 Ship Days 50 $30,000 40 $20,000 30 20 $10,000 10 0 $0 Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suez
Slide 14: Q4-24 Outlook
Q4-24 Outlook Q3-24 in Q4-24 Outlook(1) thousands Income Statement Item adjusted basis(1) (expected changes from Q3-24) Net decrease of approximately 15 spot revenue days, primarily due to the redelivery of three in-chartered tankers between Q3-24 and Q4-24, as well as the sale of one tanker in Q4-2
Slide 15: Adjusted Net Income
Adjusted Net Income(1) Q3-24 vs. Q2-24 (In thousands of U.S. dollars) Q3-2024 Q2-2024 Statement Item Variance Comments (unaudited) (unaudited) Revenues 243,278 296,590 (53,312) Voyage expenses (93,984) (100,097) 6,113 (2) Decrease primarily due to lower overall spot TCE rates, the redelivery of two
Slide 16: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income Q3-24 (In thousands of U.S. dollars) Statement Item As Reported Appendix A As Adjusted Items (1) Revenues 243,278 - 243,278 Voyage expenses (93,984) - (93,984) Net revenues (2) 149,294 - 149,294 Vessel operating expenses (38,091) - (38,091) Time-charter hire
Slide 17: Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Free Cash Flow Free cash flow (FCF) represents (In thousands of U.S. dollars) net income, plus depreciation and amortization, loss on sale of Three Months assets, unrealized losses from Ended derivatives, non-cash items, FCF September 30, from equity-acco
Slide 18: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2024 (A) June 30, 2024 (A) September 30, 2024 (A) December 31, 2024 (E) Total 2024 (E) Total 2025 (E) Total Total Total Total Total Total Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hir