Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2014 Earnings Presentation
15 slides from Teekay Tankers's earnings presentation, May 15, 2014
Slide 1: First Quarter 2014 Earnings Presentation
First Quarter 2014 Earnings Presentation May 15, 2014 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 • Q1-14 Results – Reported adjusted net income of $0.20 per share, compared to a net loss of $0.04 per share in Q1-13 – Generated Cash Available for Distribution (CAD)(1) of $0.36 per share, compared to $0.10 per share in Q1-13 – Declared quarterly fixed dividend of $0.03 per share
Slide 4: Profitable Monetization of Term Loan Investment
Profitable Monetization of Term Loan Investment • In late-March 2014, TNK exercised its rights under the security documents and assumed full ownership of two VLCC vessels, which previously secured its $115 million investment in term loans • In early-May 2014, TNK sold the vessels to Tanker Investmen
Slide 5: Strategic Acquisition of Tanker Operations
Strategic Acquisition of Tanker Operations • In Q2-14, TNK agreed to acquire a 50% joint venture interest in Teekay Corporation’s commercial and technical management operations (Teekay Operations) for $15.6 million • TNK will pay Teekay in equity at a price of $3.70 per share • The transaction will
Slide 6: Fleet Employment Shifting to Spot Market
Fleet Employment Shifting to Spot Market Kareela Spirit Aframax 1999 Kyeema Spirit Aframax 1999 BM Breeze Aframax 2008 $12,000 In-Charter 3rd Party Vessel, TBN Aframax 2008 $15,750 In-Charter Donegal Spirit LR2 2006 Limerick Spirit LR2 2007 Galway Spirit LR2 2007 Fixed-Rate Coverage (estimated) Gang
Slide 7: Q1-14 Freight Market Review
Q1-14 Freight Market Review Q1 Spot Tanker Rates Mid-Sized Tanker Rates At 5-Year High in Jan’14 40 140 Aframax Suezmax Aframax Suezmax 35 120 30 100 ‘000 USD / Day ‘000 USD / Day 25 80 20 60 15 40 10 20 5 0 0 2009 2010 2011 2012 2013 2014 Source: Clarksons Source: Clarksons • Crude tanker rates str
Slide 8: Q2 / Q3 Crude Shipping Market Outlook
Q2 / Q3 Crude Shipping Market Outlook Global Refinery Throughput • Expect a seasonally weaker crude 79 tanker market in Q2 and Q3 due 78 to scheduled refinery maintenance 77 mb/d 76 • However, rates are expected to 75 average higher than in the same 74 period of 2013 due to tightening 73 supply / de
Slide 9: Shrinking Mid-Size Tanker Fleet
Shrinking Mid-Size Tanker Fleet Suezmax Fleet Growth Aframax* Fleet Growth 60 15% 120 15% 50 100 40 10% 80 10% Number of Vessels Number of Vessels 30 60 20 5% 40 5% 10 20 0 0% 0 0% -10 -20 -20 -5% -40 -5% -30 -60 Source: Clarksons / Internal Estimates Source: Clarksons / Internal Estimates -40 -10%
Slide 10: Higher Fleet Utilization Starting in 2014
Higher Fleet Utilization Starting in 2014 Tanker Demand Growth Tanker Supply Growth Fleet Utilization 92% 8% 90% 7% 88% 6% 86% 5% 84% 4% 82% 3% 80% 2% 78% 1% 76% 0% 2014E 2015E 2008 2009 2010 2011 2012 2013 Source: Platou / Internal Estimates • Improvement in rates expected from 2014 onwards due to
Slide 11: Q2-14 Spot Earnings Update
Q2-14 Spot Earnings Update • Overall, average spot bookings for Q2-14 to-date are significantly higher than Q2-13 (based on approximately 55% and 70% of days booked in the quarter for Suezmax/Aframax and LR2 segments, respectively) o Suezmax $17,200 per day (vs. $12,150 per day in Q2-13) o Aframax $
Slide 12: 2014 Investor Day
2014 Investor Day TEEKAY TANKERS 12
Slide 13: Appendix
Appendix TEEKAY TANKERS 13
Slide 14: TNK 2014 Drydock Schedule
TNK 2014 Drydock Schedule Teekay Tankers March 31, 2014 (A) June 30, 2014 (E) September 30, 2014 (E) December 31, 2014 (E) Total 2014 Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Off-hire Off-hire Off-hire Off-hire Off-hire Off-hire Off-hire Off-hire Off-hire Off-hire Segmen
Slide 15: TEEKAY TANKERS
TEEKAY TANKERS 15