Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2018 Earnings Presentation
16 slides from Teekay Tankers's earnings presentation, Aug 2, 2018
Slide 1: Teekay Tankers Q2-2018 Earnings Presentation
TEEKAY TANKERS Q2-2018 EARNINGS PRESENTATION August 2, 2018
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 completi
Slide 3: Recent Highlights
Recent Highlights • Q2-18 Financial Results ○ Generated total cash flow from vessel operations(1) of $16.6 million and recorded adjusted net loss(1) of $28.7 million, or $0.11 per share • Signed term sheets for new financings amounting to $110 million in additional liquidity ○ Total pro-forma liquid
Slide 4: Financing Initiatives Amount to $110 million in Additional Liquidity
Financing Initiatives Amount to $110 million in Additional Liquidity • Signed term sheet for sale-leaseback transaction for 6 mid-sized tankers, which is in addition to the signed term sheet for the sale- lease-back transaction for seven mid-sized tankers previously announced(1) • Signed term sheet
Slide 5: OPEC Cuts Continued to Impact Rates in Q2-18
OPEC Cuts Continued to Impact Rates in Q2-18 …but June / July has seen the return of some mid-size tanker rate volatility Q2 Average Earnings Earnings (Last 12 Months) 25 Suezmax Aframax Suezmax Aframax 40 $39 20 $34 30 ‘000 USD / day ‘000 USD / day $31 15 $24 20 10 $16 $16 $17 $15 $12 $12 $13 $12 1
Slide 6: Tanker Market Fundamentals Improving
Tanker Market Fundamentals Improving On track for an inflection point in the tanker market later in 2018 Tanker Demand Tanker Supply • Global oil demand remains robust • 15 mdwt tankers scrapped in 2018 YTD; (+1.6 mb/d in 2018 / +1.5 mb/d in 2019) on track for a record scrapping year • Global oil in
Slide 7: Q3-18 Spot Earnings Update
Q3-18 Spot Earnings Update 20,000 $14,200 $14,000 $12,750 $12,100 $10,900 $10,700 10,000 - Suezmax 1 Aframax 2 LR2 Q2-18 Actual Q3-18 to-date Suezmax Aframax LR2 Q3-18 spot ship 2,382 1,432 638 days available Q3-18 % booked 39% 37% 31% to-date (1) Combined average spot TCE rate including Suezmax RSA
Slide 8: Appendix
APPENDIX 8
Slide 9: Improved Debt Maturity Profile
Improved Debt Maturity Profile Pro-forma liquidity of $190 million as of June 30, 2018 $500 $450 $48 $400 $28 $350 $ Millions $300 $250 $200 $362 $150 $9 $9 $24 $26 $100 $4 $50 $12 $102 $102 $45 $51 $12 $30 $- 2018 2019 2020 2021 2022 Repayments Balloon Payments Capital Leases Revolver Amortization
Slide 10: Current Stock Price Offers Significant Leverage to a Market Recovery
Current Stock Price Offers Significant Leverage to a Market Recovery FCF Per Share Spot Rate Sensitivity1,2 • $5,000 per day increase in spot $2.50 tanker rates equates to $0.32 in $2.00 annual FCF per share • Return to mid-cycle tanker rates $ Per Share $1.50 equates to approximately $1.10 in annua
Slide 11: Fleet Employment – In-Charter
Fleet Employment – In-Charter1 350 300 Ship Days 250 200 150 100 50 - Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Aframax/LR2 Days 158 92 90 91 92 92 91 91 92 92 60 Aframax/LR2 Rates 17,858 22,750 22,750 22,750 22,750 22,750 22,750 22,750 22,750 22,750 22,
Slide 12: Fleet Employment – Out-Charters
Fleet Employment – Out-Charters1 900 800 700 Ship Days 600 500 400 300 200 100 - Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Suezmax Days 198 107 90 91 27 - - - - - - Aframax/LR2 Days 524 233 90 13 - - - - - - - Suezmax Rates 17,978 17,465 17,500 17,500 17
Slide 13: Q3-18 Outlook
Q3-18 Outlook Income Statement Item Q3-18 Outlook (expected changes from Q2-18) Decrease of approximately 180 net revenue days, mainly due to drydockings for various vessels and redelivery of two in-chartered vessels to their owners in Q2-18 and Q3-18, partially offset by one additional calendar day
Slide 14: Consolidated Adjusted Statement of Loss
Consolidated Adjusted Statement of Loss Q2-18 (in thousands of U.S. dollars) Statement Item As Reported Appendix A Reclassification for As Adjusted Items (1) Realized Gain/ Loss on Derivatives Revenues 171,659 - - 171,659 Voyage expenses (86,933) - - (86,933) Vessel operating expenses (52,652) - - (
Slide 15: Drydock & Offhire Schedule
Drydock & Offhire Schedule March 31, 2018 (A) June 30, 2018 (A) September 30, 2018 (E) December 31, 2018 (E) Total 2018 (E) Total Off-hire Total Off-hire Total Off- Total Off- Vessels Vessels Vessels Vessels Vessels Total Off-hire Days Segment Days Days hire Days hire Days Spot Tanker 1 36 1 54 5 15
Slide 16: Bringing Energy to the World
BRINGING ENERGY TO THE WORLD