Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2021 Earnings Presentation
15 slides from Teekay Tankers's earnings presentation, Aug 5, 2021
Slide 1: Teekay Tankers Second Quarter 2021 Earnings Presentation
Teekay Tankers Second Quarter 2021 Earnings Presentation August 5, 2021
Slide 2: Forward Looking Statement
Forward Looking Statement 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, among other things, statements reg
Slide 3: Recent Highlights
Recent Highlights Financial Results Balance Sheet Market Activity Strength Total adjusted EBITDA(1) of ($6.8) Pro-forma Liquidity of $274 million Continued weak freight market million, down from $15.9 million as at June 30, 2021(2) conditions in Q2-21 and early Q3-21 in Q1-21 Net debt to capitalizat
Slide 4: Persistent Weak Spot Tanker Rates
Persistent Weak Spot Benchmark Crude Tanker Spot Rates Aframax Time Charter Rates Tanker Rates VLCC Suezmax Aframax 1-year TC Rate 3-year TC Rate Spot rates remained very weak in Q2- 25 35 21 and into early Q3-21: • Rising OPEC+ production offset by an increase in Middle East domestic 20 consumption
Slide 5: Q3-21 To-Date Spot and Charter Rates
Q3-21 To-Date Spot Spot Rates Charter Rates 15,000 Weak Q3-21 to-date Suezmax spot rates partially due to a timing issue of incurring additional bunker 10,000 Rate ($/day) expense to reposition unfixed 7,800 vessels 6,400 Majority of 2021 drydocking 5,600 program will be completed by the 11,100 5,00
Slide 6: Key Indicators Remain on Track For a Tanker Market Recovery
Key Indicators Remain on Track For a Tanker Market Recovery Oil demand is recovering as Trend Feb-21 May-21 Aug-21 vaccination programs are rolled out, (Feb-Aug) though COVID-19 remains a key downside risk Global Oil Demand Relative to pre-COVID Levels(1) -7.9 mb/d -5.1 mb/d -3.3 mb/d ✓ OECD oil inv
Slide 7: Strong Financial Foundation
Strong Financial Foundation Pro-forma Liquidity & Debt Repayment Profile(1,2,3) $274 million of pro-forma liquidity(1) provides financial 300 274 resilience in weak spot market environment 250 43 Net debt to capitalization of 36% as at June 30, 2021 200 $ Millions Term sheets signed to refinance eig
Slide 8: Appendix
Appendix 8
Slide 9: Fleet In-Charters
500 450 Fleet In-Charters(1) 400 Ship Days 350 300 250 200 150 100 50 - Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Aframax/LR2 Days 138 184 270 273 275 367 316 273 222 184 Aframax/LR2 Rate 18,417 17,425 17,700 17,700 17,789 18,061 18,169 18,317 18,394 18,475 Afra
Slide 10: Fleet Out-Charters
400 Fleet Out-Charters(1) 350 300 Ship Days 250 200 150 100 50 - Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Aframax/LR2 Days 272 188 180 103 - - - - - - Aframax/LR2 Rates 23,385 25,478 25,625 24,915 - - - - - - Aframax/LR2 Days Aframax/LR2 Rates (1) Based on exis
Slide 11: Q3-21 Outlook
Income Statement Item Q3-21 Outlook(1) Q3-21 Outlook (expected changes from Q2-21) Increase of approximately 120 net revenue days, comprised of an increase of 145 spot days and a reduction of 25 fixed days, primarily due to one in-chartered tanker that is expected to be delivered in Q3-21, fewer dry
Slide 12: Adjusted Net Loss
(In thousands of U.S. dollars) Adjusted Net Loss(1) Q2-2021 Q1-2021 Statement Item Variance Comments (unaudited) (unaudited) Q2-21 vs Q1-21 Revenues 123,332 142,777 (19,445) Decrease primarily due to a number of vessels returning from time-charter out contracts earning lower spot rates compared to p
Slide 13: Consolidated Adjusted Statement of Loss
Consolidated Adjusted Statement of (In thousands of U.S. dollars) Loss Q2-21 Statement Item As Reported Appendix A Reclassification for As Adjusted Items(1) Realized Gain/ Loss on Derivatives Revenues 123,420 - (88) 123,332 Voyage expenses (71,773) - - (71,773) Vessel operating expenses (43,129) - -
Slide 14: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2021 (A) June 30, 2021 (A) September 30, 2021 (E) December 31, 2021 (E) Total 2021 Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Off-hire Days Off-hire Days Off-hire Days Off-hire Days Off-hire Days Segment Spot Ta
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