Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2016 Earnings Presentation
14 slides from Teekay Tankers's earnings presentation, May 19, 2016
Slide 1: Teekay Tankers First Quarter 2016 Earnings Presentation
TEEKAY TANKERS FIRST QUARTER 2016 EARNINGS PRESENTATION May 19, 2016
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: expected higher r
Slide 3: Recent Highlights
Recent Highlights • Q1-16 Financial Results ○ Generated adjusted net income1 of $46.0 million, or $0.29 per share, versus adjusted net income of $39.0 million, or $0.34 per share in Q1-15 ○ Generated free cash flow1 of $66.2 million, or $0.42 per share, versus $53.0 million, or $0.46 per share in Q1
Slide 4: Q1-16 Tanker Earnings Remained Strong
Q1-16 Tanker Earnings Remained Strong However, earnings down y-o-y due to seasonal factors Q1 Crude Tanker Earnings Global Refinery Throughput (2016) 60 82 Suezmax Aframax Suezmax 10-yr avg. Aframax 10-yr avg. 50 81 ‘000 USD / day 40 80 mb/d 30 79 20 10 78 0 77 Source: 90% Clarksons Source: IEA Q1-1
Slide 5: Tanker Supply / Demand Outlook Unchanged
Tanker Supply / Demand Outlook Unchanged High OPEC supply and rising oil demand to support rates through 2016 60 Tanker Fleet Growth 8% Global Crude Supply & Demand 50 98 6% 40 % Fleet Growth 97 30 4% Total DWT 96 20 95 2% Mb/d 10 94 0 0% 93 -10 -2% 92 -20 91 -30 -4% Scrapping Forecast Scrapping For
Slide 6: Financial Highlights – Adjusted Net Income
Financial Highlights – Adjusted Net Income Q1-2016 vs. Q4-2015 2.7 3.5 8.5 1.9 1.0 0.5 13.8 $ Millions 48.5 46 Changes in Revenues Changes in Expenses Q4-15 Adjusted Decrease in Increase in Employment Decrease in Decrease in TC Increase in Other** Q1-16 Adjusted Net Income Spot Rates Revenue Days Ch
Slide 7: Financial Highlights
Financial Highlights • Rewarding shareholders through variable cash dividend o Q1-16 dividend of $0.09 per share equating to 30% of adjusted net income • Generating strong cash flows with low break-even of ~$10,000 per day • Focus remains on total shareholder return through dividend payments and bal
Slide 8: Q2-16 Spot Earnings Update
Q2-16 Spot Earnings Update • Rates 2016 to-date have remained robust, albeit lower than 2015 highs • Strong demand fundamentals to be supportive of tanker rates through 2016 $50,000 $50,000 $39,400 $38,800 $40,000 $40,000 $35,800 $33,700 $33,800 $30,700 $29,000 $30,000 $27,500 $30,000 $24,900 $23,70
Slide 9: Appendix
APPENDIX 9
Slide 10: Fleet Employment Profile
Fleet Employment Profile In-Charter Portfolio Aframax $18,600 Aframax $16,750 Aframax $15,600 Aframax $17,750 Aframax $17,750 Aframax $22,000 Aframax $12,000(1) $13,000(1) Aframax $22,000 Optional Period Aframax $22,750 Aframax $18,900 Optional Period LR2 $16,250 LR2 $16,000(2) LR2 $20,500 Optional
Slide 11: Drydock & Offhire Schedule
Drydock & Offhire Schedule Teekay Tankers March 31, 2016 (A) June 30, 2016 (E) September 30, 2016 (E) December 31, 2016 (E) Total 2016 Total Total Total Total Total Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Segment Days Days Days Days Days Spot Tanker - 50
Slide 12: Q1-16 vs. Q4-15 Results
Q1-16 vs. Q4-15 Results Q1-16 Adjusted Q4-15 Adjusted ($’000’s, except share and per share data) (unaudited)(1) (unaudited)(1) Comments Net revenues 152,127 157,907 Decrease is primarily due to lower average realized Q1-16 spot TCE rates, decrease in full service lightering and lightering support ne
Slide 13: Q2-16 Outlook
Q2-16 Outlook Income Statement Item Q2-16 Outlook (expected changes from Q1-16) Decrease of approximately 200 net spot revenue days in TNK, mainly due to redeliveries of six in-chartered vessels in Q2-16 and later half of Q1-16. Net revenues Approximately 60% of Q2-16 spot revenue days for Aframaxes
Slide 14: Bringing Energy to the World
BRINGING ENERGY TO E WORLD