Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2019 Earnings Presentation
19 slides from Teekay Tankers's earnings presentation, Aug 1, 2019
Slide 1: Teekay Tankers Q2-2019 Earnings Presentation
Teekay Tankers Q2-2019 Earnings Presentation August 1, 2019
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 Q2-19 Results Strong full service Tanker Market lightering results Total adjusted EBITDA(1) of U.S. crude exports averaged a Tanker rates higher y-o-y in $36.2 million, up from $16.6 record high 3.0 mb/d in Q2-19 Q2-19 million in Q2-18 Rising U.S. crude exports Beginning of Q3-19 a
Slide 4: Strongest Q2 TCEs Since 2016
Strongest Q2 TCEs Q2 Average TCEs TCEs (Last 18 Months) Since 2016 Suezmax Aframax Suezmax Aframax 40 50 Seasonal weakness at the $39 start of Q3, but increased 45 year-on-year volatility indicates a tighter supply / $34 40 demand balance 30 $31 ‘000 USD / day 35 ‘000 USD / day 30 $24 20 25 $20 $17
Slide 5: U.S. Gulf Lightering Boosts Aframax Results
U.S. Gulf Lightering Boosts Aframax U.S. Crude Oil Exports Q2-2019 TNK Aframax TCEs vs. Results Benchmarks 4.0 25 Asia U.S. crude oil export growth leading to increased 3.5 Europe lightering demand Americas 20 3.0 Canada ‘000 USD / day 2.5 MB/D Projection 15 2.0 10 1.5 1.0 5 0.5 0.0 0 Clarksons Peer
Slide 6: Q3-19 Spot TCEs Update
Q3-19 Spot TCEs $20,000 Update $15,800 $15,600 $13,700 $12,800 $12,500 $12,200 TCE $10,000 $0 Suezmax Aframax LR2 Q3-18 Actual Q3-19 to-date Suezmax Aframax LR2 Q3-19 spot ship 2,567 1,915 710 days available Q3-19 % booked 37% 37% 32% to-date (1) Combined average spot TCE rate including Teekay Suezm
Slide 7: Market Outlook
Market Outlook Demand / supply balance Demand Drivers Supply Drivers expected to tighten later in the year leading to increased volatility and higher rates + Global refinery throughput projected to be + Tanker orderbook stands at 8.7% of the 2.4 mb/d higher in 2H-19 vs. 1H-19 existing fleet size (lo
Slide 8: Tanker Fleet Utilization Forecast
Tanker Fleet Tanker Fleet Utilization Forecast Utilization Forecast Demand Supply Fleet Utilization 12% 94% Fleet utilization set to approach 90% in 2020 10% 92% % Supply / Demand Growth % Fleet Utilization 8% 90% 6% 88% 4% 86% 2% 84% 0% 82% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 9: Save The Date
Save The Date October 2, 2019 \a Grand Hyatt Hotel, New York 8:00 - 8:30 am 8:30 - 11:30 am To RSVP: For more information, and to request a 1x1 investor meeting: Registration Presentations (1x1s to follow) +1 604 609 6437 emily.yee@teekay.com
Slide 10: Appendix
Appendix 10
Slide 11: TNK Offers Significant FCF Upside in Tanker Market Recovery
TNK Offers Significant FCF1 Per Share Spot Rate Sensitivity2 Upside in Tanker Market Recovery $1.50 Mid-cycle rates3,4 $ Per Share $1.00 $0.50 $0.00 10,000 15,000 20,000 25,000 30,000 35,000 Average Mid-Sized TCE3 (1) Free cash flow (FCF) represents net income, plus depreciation and amortization, un
Slide 12: Debt Repayment Profile
Debt Repayment Debt Repayment Profile Profile $520 $480 $12 $440 $27 $400 $12 $360 $320 $280 $ Millions $240 $200 $402 $160 $12 $120 $25 $6 $80 $31 $12 $0 $102 $30 $40 $51 2 $31 $32 $- $15 1 2019 2020 2021 2022 2023 Balloon Payments Repayments (Loans) Capital Leases Revolver Amort (1) Repayments are
Slide 13: Fleet Employment – In Charter
700 Fleet Employment – In Charter1 600 500 Ship Days 400 300 200 100 - Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Aframax/LR2 Days 489 478 364 364 368 368 181 91 63 - - Aframax/LR2 Rates 19,119 20,076 21,188 21,188 21,188 21,188 21,482 21,000 21,000 - - A
Slide 14: Fleet Employment – Out-Charters
300 Fleet Employment – Out-Charters1 250 200 Ship Days 150 100 50 - Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Suezmax Days 2 92 92 91 91 35 - - - - - - Aframax/LR2 Days 138 118 46 46 46 46 8 - - - - Suezmax Rates 20,753 22,750 22,750 22,750 22,750 - - -
Slide 15: Q3-19 Outlook
Q3-19 Outlook Income Statement Item Q3-19 Outlook (expected changes from Q2-19)(1) Increase of approximately 170 net revenue days, mainly due to fewer scheduled dry dockings and more calendar days in Q3-19. Revenues Refer to Slide 6 for Q3-19 to-date spot tanker rates. Increase of approximately $1.0
Slide 16: Adjusted Net (Loss) Income
Adjusted Net (Loss) (In thousands of U.S. dollars) Income1 Q2-2019 Q1-2019 Statement Item Variance Comments Q2-19 vs Q1-19 (unaudited) (unaudited) Revenues Decrease primarily due to lower overall spot TCE rates and more scheduled dry dockings, partially 202,248 232,488 (30,240) offset by more full s
Slide 17: Consolidated Adjusted Statement of Loss
Consolidated Adjusted Statement of (In thousands of U.S. dollars) Loss Statement Item As Reported Appendix A Reclassification for As Adjusted Q2-19 Items (1) Realized Gain/ Loss on Derivatives Revenues 202,277 - (29) 202,248 Voyage expenses (92,668) - - (92,668) Vessel operating expenses (53,600) -
Slide 18: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule Teekay Tankers March 31, 2019 (A) June 30, 2019 (A) September 30, 2019 (E) December 31, 2019 (E) Total 2019 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 Spot Tanker 3 10
Slide 19: Slide 19