Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2011 Earnings Presentation
11 slides from Teekay Tankers's earnings presentation, Nov 10, 2011
Slide 1: Third Quarter Earnings Presentation
Third Quarter Earnings Presentation November 10, 2011
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 » Fully-supported dividend; policy unchanged since IPO in December. 2007 • Earned adjusted net income of $1.3 million, or $0.02 per share1 and generated $9.1 million of Cash Available for Distribution 2 • Declared a dividend of $0.15 per share for Q3-11 • Payable on November 28th t
Slide 4: Increasing Fixed-Rate Exposure
Increasing Fixed-Rate Exposure » Teekay Tankers has recently secured two new fixed-rate Aframax charters: Ship Name Built Firm Period Charter Type Time-charter rate per day Helga Spirit 2005 36 months Fixed-rate $18,200 Kyeema Spirit 1999 24 months Fixed-rate $17,200 » Locking in fixed rates signifi
Slide 5: Fleet Employment – Fixed vs. Spot
Fleet Employment – Fixed vs. Spot Name Y/ Built Dwt Time-charter-in Firm Period Kaveri Spirit 2004 149,985 Ashkini Spirit 2003 165,200 Trading in Coverage Iskmati Spirit 2003 165,209 Erik Spirit 2005 115,500 Teekay Pools Fixed Spot Nassau Spirit 1999 107,100 Q4’11E 60% 40% Kareela Spirit 1999 113,10
Slide 6: Q4 2011 Dividend Matrix
Q4 2011 Dividend Matrix » For Q4-11 to-date, average spot bookings are down from the previous quarter (based on 45% days booked for Aframax and 33% days booked for Suezmax) • Aframax: $5,000 per day (vs. $10,704 per day in Q3-11) • Suezmax: $11,800 per day (vs. $8,582 per day in Q3-11) Q4 2011 Divid
Slide 7: Spot Rate Volatility Provides Upside in Q4-2011
Spot Rate Volatility Provides Upside in Q4-2011 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Source: Clarksons » Q3-11 rates extremely weak due to vessel oversupply and seasonal / one-off factors: • North Sea production outages and lack of Libyan exports hurt demand in the Atlantic • Heavy refinery maintenance p
Slide 8: Asset Prices Continue to Fall
Asset Prices Continue to Fall Source: Clarksons » Crude tanker asset prices have declined by ~20-25% on average since the start of the year » Liquidity in the secondhand market remains low, particularly for modern assets • Only 10 crude tankers aged 5 years or less sold in 2011 to date (<20% of all
Slide 9: Tanker Orderbook is Shrinking Due To Lack Of New Orders
Tanker Orderbook is Shrinking Due To Lack of New Orders Orderbook has halved since Q3-08 Source: Clarksons » Pace of new tanker ordering remains extremely low: • Only 4.5 mdwt of new conventional tanker orders placed in 2011 to date • Lowest level of new orders since 1985 » Owners deterred by relati
Slide 10: Long Term Outlook – On Track For Recovery From End-2012
Long Term Outlook – On Track For Recovery From End-2012 Tanker Demand Growth Tanker Fleet Growth 8% Demand Range Supply Range 7% 6% % Growth 5% 4% 3% 2% 1% 0% 2009 2010 2011E 2012E 2013E Source: Platou / Internal estimates Global Floating Slowdown in Moving towards Tanker market recession; storage d
Slide 11: TNK Remains Financially Strong and Well Positioned for a Spot Tanker Market Recovery
TNK Remains Financially Strong and Well Positioned for a Spot Tanker Market Recovery » Low spot tanker cash flow » Net Debt/Cap1: 30.6% breakeven: < $0 / day in 2011 » Minimal principal payments » September 30, 2011 total liquidity: through 2015 $292m (unchanged) » Committed Term Sheet signed for VL