Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2012 Earnings Presentation
11 slides from Teekay Tankers's earnings presentation, Nov 8, 2012
Slide 1: Third Quarter 2012 Earnings Presentation
Third Quarter 2012 Earnings Presentation November 8, 2012
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: tanker marke
Slide 3: Recent Highlights
Recent Highlights • Generated Q3-12 Cash Available for Distribution(1) of $0.12 per share, down from $0.15 per share in Q2-12 • Declared Q3-12 dividend of $0.02 per share ○ Payable on November 26th to all shareholders of record on November 19th • Reported Q3-12 adjusted net loss of $0.09 per share •
Slide 4: Q3-12 Results
Q3-12 Results • Q3-12 CAD per share decreased due to a combination of: ○ Seasonally weak spot tanker rates ○ Lower average fixed-rate time-charter hire rates ○ Higher than usual drydock schedule which resulted in 115 more days offhire in Q3-12 vs Q2-12 • With completion of 13-vessel acquisition in J
Slide 5: Recent Time-Charter Transactions
Recent Time-Charter Transactions • Strong customer relationships and operational performance continue to provide opportunities for fixed-rate contract coverage • In-charter continues to provide spot optionality in advance of an expected stronger winter market Time-charter Out Vessel Built Firm Perio
Slide 6: Teekay Tankers' Fleet Employment
Teekay Tankers’ Fleet Employment Name Class Y/Built Nassau Spirit Aframax 1998 Kareela Spirit Aframax 1999 Everest Spirit Aframax 2004 Fixed-Rate Coverage (estimated) Esther Spirit Aframax 2004 Star Lady Aframax 2005 Pre-Matterhorn Spirit Inclusive of Matterhorn Donegal Spirit LR2 2006 Trading in ti
Slide 7: Q4-12 CAD and Dividend Outlook
Q4-12 CAD and Dividend Outlook • Average spot bookings in Q4 to-date remain relatively unchanged from Q3 (based on ~40% days booked) ○ Aframax/LR2: $14,700 per day (vs. $12,100 per day in Q3-12) ○ Suezmax: $13,000 per day (vs. $14,100 per day in Q3-12) Q4-2012 Estimated Suezmax Spot Rate Assumption
Slide 8: Tanker Fleet Utilization Declined ~5% In Q3-12
Tanker Fleet Utilization Declined ~5% In Q3-12 Fleet Utilization Suezmax Spot Rates Aframax Spot Rates LR2 Spot Rates 88% 40 87% 35 86% % Fleet Utilization 30 ‘000 USD / Day 85% 84% 25 83% 20 82% 15 81% 10 80% 79% 5 78% 0 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Source: Plat
Slide 9: Expect Winter Market Upturn Later In Q4
Expect Winter Market Upturn Later In Q4 30 Aframax Spot Rates • Winter rate spikes typically start in 2009 2010 2011 2012 December based on weather delays: 25 ○ Turkish Straits transit delays – ‘000 USD / Day 20 currently ~3 days waiting time ○ Baltic Sea ice – winter 2012 marks 15 first full season
Slide 10: Balanced Supply / Demand Outlook for 2013
Balanced Supply / Demand Outlook for 2013 Tanker Demand Growth 2013 Fleet Growth Forecast ~3.5% Tanker Fleet Growth 6% Supply Range • Fleet growth heavily weighted 5% Demand Range towards VLCC / Suezmax • Acceleration of 1st generation d/hull % Growth 4% scrapping could lead to lower growth 3% • Ves
Slide 11: Strong Financial Position
Strong Financial Position • September 30, 2012 total liquidity of approximately $383 million • No requirement to raise additional equity • Low principal repayments through 2016 • No financial covenant concerns Total Liquidity ($ millions) $400 $383 $300 Millions $200 $357 $100 $26 $17.4 $21.1 $21.4