Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2013 Earnings Presentation
13 slides from Teekay Tankers's earnings presentation, Nov 7, 2013
Slide 1: Third Quarter 2013 Earnings Presentation
Third Quarter 2013 Earnings Presentation November 7, 2013 TEEKAY TANKERS 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 crude oi
Slide 3: Recent Highlights
Recent Highlights • Q3-13 Results – Reported adjusted net loss of $0.05 per share – Generated Cash Available for Distribution (CAD)(1) of $0.10 per share – Declared quarterly fixed dividend of $0.03 per share • Fixed-rate cover for the 12 months commencing October 1, 2013 maintained at approximately
Slide 4: Investment in VLCC Mortgage Loans
Investment in VLCC Mortgage Loans A Elephant B Elephant1 C Elephant Mortgagee Teekay Tankers Teekay Tankers Teekay Corp Commercially and Technically Managed by Teekay a Pending a Current Status Trading Spot Detained Trading Spot Avg daily earnings since Teekay took over mgmt $15,000 N/A $18,000 • TN
Slide 5: STX Newbuilding Orders - Status Update
STX Newbuilding Orders - Status Update • In October 2013, TNK exercised its option to purchase four additional newbuildings under the STX Offshore & Shipbuilding (STX) contract – Options exercised to preserve rights under the contract • TNK has not made any installment payments for the LR2 newbuildi
Slide 6: Q3-2013 Tanker Market Update
Q3-2013 Tanker Market Update Crude Spot Rates Product Spot Rates 30 19 Suezmax Aframax VLCC LR2 MR 25 17 15 ‘000 USD / Day '000 USD / Day 20 13 15 11 10 9 5 7 0 5 Source: Clarksons • Crude tanker rates recovering in Q4-13 from lows in Q3-13 – Seasonal low in refinery throughput pressured crude tanke
Slide 7: Positive Winter Crude Tanker Market Outlook
Positive Winter Crude Tanker Market Outlook Global Average Suezmax and Aframax Earnings 40000 35000 Historical winter uptick 30000 $ / day TCE 25000 20000 15000 10000 5000 2009 2010 2011 2012 2013 0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Source: Clarksons Winter rates typically stronger
Slide 8: Attractive Crude Tanker Supply Fundamentals
Attractive Crude Tanker Supply Fundamentals Crude Fleet Growth to Slow in 2014 120 Aframax Fleet Growth 100 Removals Deliveries Net Growth 80 • Aframax fleet set to shrink Number of Vessels 60 40 by ~2% in 2014 and ~ 1% in 2015 20 0 • Older Aframax fleet creates -20 potential for increased -40 2009
Slide 9: TNK Financial Profile
TNK Financial Profile • September 30, 2013 total liquidity of ~$226 million – Liquidity will increase further with the realization of the VLCC loans • Low principal repayments through 2016 • No financial covenant concerns $400 Total Liquidity $300 $226m Millions $200 $100 48 7 21 17 $0 30-Sep-13 Q4
Slide 10: Appendix
Appendix TEEKAY TANKERS 10
Slide 11: Strong Fixed-Rate Cover
Strong Fixed-Rate Cover Name Class Y/Built Kareela Spirit Aframax 1999 Erik Spirit Aframax 2004 BM Breeze Aframax 2008 $11,100 In-Charter Donegal Spirit LR2 2006 Limerick Spirit LR2 2007 Galway Spirit LR2 2007 Ganges Spirit Suezmax 2002 Trading in Fixed-Rate Coverage (estimated) Yamuna Spirit Suezma
Slide 12: TNK 2013 & 2014 Drydock Schedule
TNK 2013 & 2014 Drydock Schedule March 31, 2013 (A) June 30, 2013 (A) September 30, 2013 (A) December 31, 2013 (E) Total 2013 Total 2014 Total Total Total Total Total Total Vessels Off- Vessels Vessels Vessels Vessels Vessels Off-hire Off-hire Off-hire Off-hire Off-hire Off-hire hire Off-hire Off-hi
Slide 13: TEEKAY TANKERS
TEEKAY TANKERS 13