Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q4 2012 Earnings Presentation
15 slides from Teekay Tankers's earnings presentation, Feb 21, 2013
Slide 1: Fourth Quarter and Fiscal 2012 Earnings Presentation
Fourth Quarter and Fiscal 2012 Earnings Presentation February 21, 2013
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: tanker market fun
Slide 3: Recent Highlights
Recent Highlights • Q4-12 Results ○ Generated Cash Available for Distribution (CAD)(1) of $0.13 per share, a slight increase from Q3-12 ○ Reported adjusted net loss of $0.09 per share ○ Declared quarterly dividend of $0.03 per share • Continued focus on fixed-rated coverage with 2013 at ~42% • Compl
Slide 4: Q4-12 Results
Q4-12 Results • Q4-12 CAD(1) per share maintained at similar levels to Q3-12 ○ Stronger winter spot rates did not develop until late in Q4-12 ○ Lower OPEC oil production weighed on crude tanker demand ○ Increased demand for product tankers led to higher LR2 product tanker rates Q4-12 (2) Q3-12 (2) C
Slide 5: Tactical Fleet Management
Tactical Fleet Management • Recent transactions have maintained fixed-cover for fiscal 2013 at ~42% while providing additional upside through extension options Time-charter Out Vessel Built Firm Period Rate Per Day Start Date Esther Spirit 2004 12 months $14,250 Early December Time-charter In Vessel
Slide 6: Vessel Impairment Charge
Vessel Impairment Charge • Across the shipping industry, vessel values have fallen by more than 50% over the last five years • The continued multi-year low market and the expectation of a delayed market Suezmax Asset Values recovery has contributed to reduction in $120 OMI 5-Year 10-Year estimated f
Slide 7: 2012 Tanker Market – A Year of Two Halves
2012 Tanker Market – A Year of Two Halves 2012 Tanker Spot Earnings Suezmax Aframax 1H-2012 2H-2012 LR2 0 5,000 10,000 15,000 20,000 25,000 USD / Day Source: Clarksons • Large crude tankers enjoyed a relatively strong 1H-2012 but a weak 2H ○ 1H-12 rates supported by imports for crude storage, high O
Slide 8: Asset Prices – Nearing The Bottom
Asset Prices – Nearing The Bottom • 20-25% decline in asset prices in 2011 with a further 15% in 2012 • Vessel sales in Q4-12 point towards a bottoming-out of prices • Newbuilding prices likely at or near the bottom ○ Strengthening Korean Won vs. US Dollar ○ Steel prices bottomed out; potential to r
Slide 9: Gradual Recovery Starting Late 2013 / 2014
Gradual Recovery Starting Late 2013 / 2014 Fleet Utilization Tanker Demand Growth Tanker Supply Growth 92% 8% 90% 7% 88% 6% Growth Rate Utilization 86% 5% 84% 4% 82% 3% 80% 2% 78% 1% 76% 0% • 2012 / 13 projected to be the trough in terms of tanker fleet utilization and rates • Improvement in rates f
Slide 10: Shift in Global Refining Driving Long Haul LR2 Product Tanker Demand
Shift in Global Refining Driving Long Haul LR2 Product Tanker Demand Refinery Capacity Additions / Reductions 2012-17 -0.6 mb/d +2.9 mb/d -0.4 mb/d To Asia / Pacific +1.9 mb/d +0.9 mb/d North American refining capacity remains flat as US East Coast / Caribs closures are balanced by expansion project
Slide 11: Positioned for Growth
Positioned for Growth • Total liquidity at December 31, 2012 of ~$327 million • No financial covenant concerns • Low debt amortization payments through 2016 ($ millions) $400 Total Liquidity $327 $300 Millions $200 $301 $100 $26 21.1 21.4 17.0 19.7 $0 31-Dec-12 2013 2014 2015 2016 Cash Undrawn Lines
Slide 12: Q1-13 CAD Outlook
Q1-13 CAD Outlook • Overall, average spot bookings in Q1-13 to-date, similar to Q4-12 (based on approximately two-thirds of days booked in the quarter) ○ Aframax: $10,800 per day (vs. $13,400 per day in Q4-12) ○ LR2: $15,400 per day (vs. $15,900 per day in Q4-12) ○ Suezmax: $13,400 per day (vs. $11,
Slide 13: Appendix
TEEKAY TANKERS LTD. = Appendix
Slide 14: Teekay Tankers Fleet Employment
Teekay Tankers Fleet Employment Name Class Y/Built BM Breeze Aframax 1999 In-Charter Kareela Spirit Aframax 1999 Everest Spirit Aframax 2004 Fixed-Rate Coverage (estimated) Star Lady Aframax 2005 In-Charter FY 2013 42% Donegal Spirit LR2 2006 Limerick Spirit LR2 2007 Galway Spirit LR2 2007 Ganges Sp
Slide 15: Teekay Tankers 2013 Offhire Schedule
Teekay Tankers 2013 Offhire Schedule March 31, 2013 June 30, 2013 September 30, 2013 December 31, 2013 Total 2013 Vessel Vessel Vessel Vessel Vessel Note(1) Drydocked Total Offhire Drydocked Total Offhire Drydocked Total Offhire Drydocked Total Offhire Drydocked Total Offhire SPOT Suezmax (2) 1 38 -