Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2008 Earnings Presentation
10 slides from Teekay Tankers's earnings presentation, Aug 7, 2008
Slide 1: Second Quarter 2008 Earnings Presentation
T E E K A Y T A N K E R S L T D. Second Quarter 2008 Earnings Presentation August 7, 2008 www.teekaytankers.com 1
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: the Company’
Slide 3: Second Quarter Highlights
Second Quarter Highlights f Earned net income of $22.0m, or $0.88 per share f Including specific items which increased net income by $5.0m or $0.20/share f Generated Cash Available for Distribution of $22.4m f Declared second quarter dividend of $0.90 per share f Payable Aug. 22 f Record date Aug. 1
Slide 4: Tactical Management of Fleet
Tactical Management of Fleet Name Y/ Built Dwt Narmada Spirit 2003 159,200 Kareela Spirit 1999 113,100 By mid Q3, 55% of the fleet Kyeema Spirit 1999 113,300 operating in the spot market through Teekay’s Aframax Kanata Spirit 1999 113,000 and Suezmax (Gemini) Pools Sotra Spirit 1995 95,400 Ganges Sp
Slide 5: Estimated Cash Available for Distribution
Estimated Cash Available for Distribution Estimated Cash Avail. Suezmax Spot Rate Assumption (TCE basis per day) for Dist'n Per Share* (Annualized) $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 Assumption (TCE basis $25,000 $2.16 $2.39 $2.60 $2.82 $3.03 $3.23 $3.40 $3.57 Aframax S
Slide 6: Q2-08: Strongest Second Quarter On Record
Q2-08 : Strongest Second Quarter On Record Million B/D Middle East OPEC Crude Output (LHS) Suezmax Average Rates (RHS) USD / Day 22.0 140,000 21.5 120,000 RHS 100,000 21.0 80,000 20.5 60,000 20.0 40,000 19.5 20,000 19.0 0 Q1-04 Q3-04 Q1-05 Q3-05 Q1-06 Q3-06 Q1-07 Q3-07 Q1-08 Q3-08 to Source : IEA /
Slide 7: Combination of Volume and Distance Driving Tanker Demand
Combination of Volume and Distance Driving Tanker Demand 6 1,450 Chinese Crude Oil Imports Went Up By 100%... 5 …But Ton-Mile Demand Increased By 133% 1,200 China Crude Imports - Billion Ton-Miles 4 Million B/D 950 3 700 2 1 450 LHS RHS 0 200 2003 1H-08 Source: China Customs / Teekay Classification
Slide 8: Scrapping / Conversions Constraining Fleet Supply Growth
Scrapping / Conversions Constraining Fleet Supply Growth 1H 2008 Actual 2H 2008 Estimate* Scrapping Conversions Fleet Net Net Type End-2007 Deliveries Scrapping Conversions Change Deliveries (Only IMO (Sold but Change Mandated) yet to leave) VLCC 504 16 3 11 +2 20 1 15 +4 Suezmax 316 8 1 4 +3 9 - 10
Slide 9: Rates Spike – A Result of a Stretched World Tanker Fleet
Rates Spike – A Result of a Stretched World Tanker Fleet Utilization Suezmax Spot Rates 100,000 96% 90,000 95% 80,000 94% Suezmax Spot Rates 70,000 93% (USD / Day) Utilization 60,000 92% 50,000 91% 90% = Full Fleet Utilization 40,000 90% RHS 30,000 89% 20,000 88% 10,000 87% 2004 2005 2006 2007 Q1-08
Slide 10: Significant Growth Opportunities
Significant Growth Opportunities f Over 1,500 crude oil 3rd party tankers in the world acquisitions f Over 450 product tankers in the world S ND DE f 7 Aframaxes VI Teekay owns DI 32 other f 6 Suezmaxes NG tankers SI f 10 Product tankers EA suitable for CR TNK to acquire f 10 Newbuilds IN 2 more f T