Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2022 Earnings Presentation
17 slides from Teekay Tankers's earnings presentation, Nov 1, 2022
Slide 1: Teekay Tankers Third Quarter 2022 Earnings Presentation
Teekay Tankers Third Quarter 2022 Earnings Presentation November 3, 2022
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 Financial Results Balance Sheet Market Activity Total adjusted EBITDA(1) of $91.8 High operating leverage, with 48 Changing trade patterns from the million, up $33.4 million from Q2-22 vessels (98% of the fleet) trading in conflict in Ukraine have benefited the spot market, support
Slide 4: Counter-Seasonal Strength in Rates During Q3-2022
Counter-Seasonal TNK’s Third Quarter Average Mid-Size Tanker Rates Benchmark Crude Tanker Spot Rates Strength in Rates VLCC Suezmax Aframax During Q3-2022 60 80 70 Tanker rates continued to firm during Q3-22, counter to normal 50 60 seasonal trends, with average mid- size tanker spot rates the highe
Slide 5: Q4-22 To-Date Spot Rates
Q4-22 To-Date Spot Spot Rates Rates 50,000 45,000 Q4-22 to-date spot rates improved 40,000 as we move into a seasonally stronger quarter 35,000 Rate ($/day) 30,000 Overall, Q4-22 to-date spot rates are approximately 3x higher than 25,000 last year’s Q4 rates 44,700 20,000 40,000 35,900 36,600 37,400
Slide 6: Strong Winter Market Expected as EU Sanctions on Russian Oil Enter Into Force
Strong Winter Market Expected as EU EU Imports of Russian Crude are Falling... …To be Replaced by More Distant Sources Sanctions on Russian EU Imports of Short Haul Russian Crude Oil EU Imports of Medium / Long Haul Crude Oil Oil Enter Into Force Baltic Sea Black Sea West Africa US Gulf Middle East
Slide 7: Absence of Newbuild Orders Pushing the Tanker Orderbook to Record Low Levels
Absence of Newbuild Orders Pushing the Tanker Orderbook to Annual Tanker Newbuild Orders Tanker Demand Set to Outstrip Fleet Growth in 2022 – 24 (Last 35 Years, Ranked) Record Low Levels Tonne-Mile Demand Growth Fleet Supply Growth 2006 Fleet supply fundamentals to 2025 2008 7 continue to look very
Slide 8: High Operating Leverage and Strong Rates Creating Shareholder Value
High Operating FCF Per Share Spot Rate Sensitivity Next 12 Months (1,3) Leverage and Strong Rates Creating $22.00 $750 Shareholder Value $20.00 $700 $650 48 vessels (98% of the fleet) trading $18.00 $600 Annual Total FCF in Millions in the spot market positions the $16.00 $550 Company to generate si
Slide 9: Appendix
Appendix 9
Slide 10: Manageable Debt Repayments
Manageable Debt Repayments Pro Forma Debt Repayment Profile(1,2,3) 100 $ Millions 50 61 62 63 64 15 0 Remaining 3 months of 2023 2024 2025 2026 2022 Scheduled Repayments incl. Capital Leases (1) In September and October 2022, the Company made $44.9 million in prepayments to a term loan related to fo
Slide 11: Fleet In-Charters
500 450 Fleet In-Charters 400 350 Ship Days 300 250 200 150 100 50 - Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Aframax/LR2 Optional Days - 23 91 146 230 273 273 198 45 - Aframax/LR2 Days 368 407 364 314 230 182 182 118 92 90 Aframax/LR2 Rate (incl. Options) 19,1
Slide 12: Fleet Out-Charters
300 Fleet Out-Charters(1) 250 200 Ship Days 150 100 50 - Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Aframax/LR2 Days 92 - - - - - - - - - Aframax/LR2 Rates 18,000 - - - - - - - - - Aframax/LR2 Days (1) Based on existing charters excluding extension options and ex
Slide 13: Q4-22 Outlook
Q4-22 Outlook Income Statement Q3-22 in thousands Q4-22 Outlook(1) Item adjusted basis(1) (expected changes from Q3-22) Increase of approximately 140 net revenue days, all of which are spot days, primarily due to fewer dry- docking days in Q4-22 compared to Q3-22, as well as a full quarter of operat
Slide 14: Adjusted Net Income
Adjusted Net (In thousands of U.S. dollars) Income(1) Q3-2022 Q2-2022 Statement Item Variance Comments (unaudited) (unaudited) Q3-22 vs Q2-22 Revenues 279,766 242,689 37,077 Voyage expenses (135,013) (126,980) (8,033) (2) Net revenues 144,753 115,709 29,044 Increase primarily due to higher overall s
Slide 15: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of (In thousands of U.S. dollars) Income Statement Item As Reported Appendix A Reclassification for As Adjusted Q3-22 Items (1) Realized Gain/ Loss on Derivatives Revenues 279,386 - 380 279,766 Voyage expenses (135,013) - - (135,013) Net revenues (2) 144,373 - 380 144
Slide 16: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2022 (A) June 30, 2022 (A) September 30, 2022 (A) December 31, 2022 (E) Total 2022 (E) Total 2023 (E) Total Total Total Total Total Total Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hir
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