Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2023 Earnings Presentation
15 slides from Teekay Tankers's earnings presentation, Aug 3, 2023
Slide 1: Teekay Tankers Second Quarter 2023 Earnings Presentation
Teekay Tankers Second Quarter 2023 Earnings Presentation August 3, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements included in this report, other than statements of
Slide 3: Recent Highlights
Recent Highlights Financial Market Activity Total adjusted EBITDA(1) of $184.5 million, compared to Spot tanker rates remained very firm in Q2-23 driven by $58.4 million in Q2-22 strong Chinese and Indian crude oil imports and firm crude oil exports from Russia and the United States Adjusted net inc
Slide 4: Spot Rates Averaging Well Above Historical Levels
Spot Rates Averaging TNK Quarterly Spot Rates (Average of Aframax and Suezmax Rates) Well Above Historical Levels TNK Quarterly Spot Rates Historical Q3 Spot Rates Spot tanker rates remained very 70,000 strong during Q2-23: • Crude oil imports into India and China 60,000 at a record high • Russian c
Slide 5: Q3-23 To-Date Spot Rates
Q3-23 To-Date Spot Spot Rates Rates 70,000 60,000 Extended period for two charter-in vessels. Currently eight vessels 50,000 chartered-in at an average of Rate ($/day) $25,000 per day, mark-to-market 40,000 value of approximately $64 million(2) 30,000 57,600 50,100 48,300 20,000 42,800 33,200 36,600
Slide 6: Tanker Demand and Supply Fundamentals Remain Strong
Tanker Demand and Supply Fundamentals Remain Strong Oil Supply / Demand Voyage Distances Fleet Supply Positive outlook for the next 2-3 years is driven by durable supply • Global oil demand set to reach a • Around 90% of Russian crude • Tanker orderbook as a % of the and demand fundamentals record h
Slide 7: Continuing to Create Significant Shareholder Value
Continuing to Create Significant Shareholder Value FCF Per Share Spot Rate Sensitivity Next 12 Months (1,2,3) 96% of the 53-vessel fleet trading in the strong spot market 60% $25.00 • Last four quarters, generated $17.62 per share of FCF(1) 50% Annualized FCF Yield • Based on Q2-23 average realized
Slide 8: Appendix
Appendix 8
Slide 9: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Profile(1) 100 $ Millions 50 57 21 21 21 21 12 0 Remaining 6 months of 2024 2025 2026 2027 2023 Declared Sale Leaseback Purchase Options (2) Scheduled Repayments incl. Capital Leases (1) Repayment profile based on current drawn amounts. (2) Purchase options tota
Slide 10: Fleet In-Charters
Fleet In-Charters 700 35,000 600 30,000 500 25,000 400 Ship Days 20,000 300 15,000 200 10,000 100 5,000 0 0 Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax
Slide 11: Fleet Out-Charters
Fleet Out-Charters(1) 100 60,000 90 50,000 80 70 40,000 60 Ship Days 50 30,000 40 20,000 30 20 10,000 10 0 0 Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax
Slide 12: Q3-23 Outlook
Q3-23 Outlook Q3-23 Outlook(1) Income Statement Q2-23 in thousands (expected changes from Q2-23) Item adjusted basis(1) Decrease of approximately 50 spot market revenue days, primarily due to more scheduled dry dockings in Q3-23, partially offset by more calendar days in Q3-23 compared to Q2-23. Net
Slide 13: Adjusted Net Income
Adjusted Net (In thousands of U.S. dollars) Income(1) Q2-2023 Q1-2023 Statement Item Variance Comments (unaudited) (unaudited) Revenues 370,646 394,647 (24,001) Q2-23 vs Q1-23 Voyage expenses (118,082) (124,187) 6,105 (2) Net revenues 252,564 270,460 (17,896) Decrease primarily due to lower overall
Slide 14: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of (In thousands of U.S. dollars) Income Q2-23 Statement Item As Reported Appendix A Reclassification for As Adjusted Items (1) Realized Gain/ Loss on Derivatives Revenues 370,646 - - 370,646 Voyage expenses (118,082) - - (118,082) Net revenues (2) 252,564 - - 252,564
Slide 15: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2023 (A) June 30, 2023 (A) September 30, 2023 (E) December 31, 2023 (E) Total 2023 (E) 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 Spo