Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2015 Earnings Presentation
11 slides from Teekay Tankers's earnings presentation, Nov 5, 2015
Slide 1: Teekay Tankers Q3-2015 Earnings Presentation
TEEKAY TEEKAY TEEKAY TANKERS Q3-2015 EARNINGS PRESENTATION November 5, 2015
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 • Q3-2015 Financial Results ○ Generated adjusted net income1 of $40.3 million, or $0.30 per share, versus adjusted net income of $2.6 million, or $0.03 per share in Q3-14 ○ Generated free cash flow1 of $59.4 million, or $0.44 per share, versus $16.2 million, or $0.19 per share in Q
Slide 4: Execution of Strategic Acquisitions
Execution of Strategic Acquisitions Suezmax fleet and ship-to-ship transfer business • Successfully bid on the Principal Maritime fleet at an attractive price • Assimilation of twelve Suezmaxes into the TNK platform in just nine weeks • Accelerating drydocks in order to maximize long-term earnings ○
Slide 5: Continuing to Deliver Shareholder Value
Continuing to Deliver Shareholder Value FCF1 Per Share Spot Rate Sensitivity Financial Leverage 80% $3.00 72% $2.50 70% 65% $2.00 $ Per Share 60% $1.50 53% $1.00 50% $0.50 40% $0.00 Q3-2013 Q3-2014 Q3-2015 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Aframax Equivalent TCE Net Debt to Book Capita
Slide 6: Rates Remained Historically Strong in Q3-15
Rates Remained Historically Strong in Q3-15 Q3 Crude Tanker Earnings Crude Tanker Rates 80,000 50,000 Aframax Suezmax VLCC 45,000 70,000 40,000 Q3-2010 60,000 35,000 50,000 USD/day Q3-2011 USD/day 30,000 40,000 Q3-2012 25,000 Q3-2013 30,000 20,000 Q3-2014 20,000 15,000 Q3-2015 10,000 10,000 5,000 0
Slide 7: Strong Winter Tanker Market Expected
Strong Winter Tanker Market Expected Rising Global Oil Demand Rates Typically Spike in Dec / Jan 96.0 *average mid-sized tanker rates 50 2011 2012 2013 95.5 45 2014 2015 95.0 40 94.5 35 Million bbl / day $'000 / day 94.0 30 25 93.5 20 93.0 15 92.5 10 92.0 5 1Q2015 2Q2015 3Q2015 4Q2015E 2016E Source:
Slide 8: Q4-15 Spot Earnings Update
Q4-15 Spot Earnings Update • Spot rates averaged significantly higher year-on-year in Q3-15 • Spot rates bookings to-date are stronger than Q4-14 • Recent strengthening in the Suezmax and Aframax markets will bring Q4-15 rates above Q3-15 rates $45,000 $40,400* $40,000 $34,782 $34,900* $35,000 $33,5
Slide 9: Appendix
APPENDIX 9
Slide 10: Fleet Employment Profile
Fleet Employment Profile In-Charter Portfolio Aframax 2008 $18,600 Aframax 2009 $15,750 $17,750 Aframax 2008 $18,500 $19,500 Optional Period (1) Aframax 2008 $12,000 Optional Period Aframax 2008 $16,750 Aframax 2008 $15,600 Aframax 2008 $22,000 Aframax 2003 $22,000 Optional Period Aframax 2002 $18,9
Slide 11: Delivery Schedule for Principal Maritime Fleet; Drydock & Offhire Schedule
Delivery Schedule for Principal Maritime Fleet No. Vessel Name Delivery Date 1 Beijing Spirit* 08-17-15 2 Atlanta Spirit* 09-03-15 3 Moscow Spirit* 09-08-15 4 Athens Spirit 09-09-15 5 Seoul Spirit* 09-21-15 6 London Spirit* 09-21-15 7 Barcelona Spirit* 09-23-15 8 Rio Spirit 09-24-15 9 Los Angeles Sp