Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q4 2024 Earnings Presentation
18 slides from Teekay Tankers's earnings presentation, Feb 20, 2025
Slide 1: Fourth Quarter and Annual 2024 Earnings Presentation
Teekay Group Fourth Quarter and Annual 2024 Earnings Presentation February 20, 2025 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements included in this presentation, other than stateme
Slide 3: Teekay Tankers Q4-24 and FY2024 Highlights
Teekay Tankers Q4-24 and FY2024 Q4-24 vs. Q4-23 Spot Rates Highlights 44,500 Significant cash flow generation despite softer year end rates 37,000 28,400 30,500 Adj. Net Income(1) Adj. EPS(1) FCF(1) Q4-24 $51.8 million $1.50 / share $69.3 million (2) Suezmax Aframax / LR2 Q4-2023 Q4-2024 2024 $354.7
Slide 4: Spot Market Update
Mid-Size Tanker Spot Rates(1) Spot Market Update 5-year range FCF Breakeven (2) Q4 spot tanker rates below expectations but still well 2024 2025 above cash break-even levels • Typical winter market volatility failed to materialize in Q4: 100 o Weak Chinese oil demand weighed on the VLCC market which
Slide 5: Geopolitical Events Expected to Have a Large Influence on Market Direction in 2025
Geopolitical Events Expected to Have a Large Influence on Market Direction in 2025 US Tariffs Potential tariffs on Mexico and Canada War in Ukraine • Mexico and Canada Potential resolution of conflict US Tariffs account for almost 70% Tariffs on China of US crude oil imports • Peace agreement in Ukr
Slide 6: Tanker Market Fundamentals
Tanker Market Fundamentals Underlying fundamentals suggest a balanced market notwithstanding geopolitical events Tanker Demand Drivers Tanker Supply Drivers + Global oil demand projected to grow by around 1 mb/d in 2025 with + Forward shipyard cover remains high at over 3 years with vessels now a re
Slide 7: Well-Positioned For Any Tanker Market Conditions
FCF Per Share Spot Rate Sensitivity Next Well-Positioned For Any Tanker 12 Months (1,2,3) Market Conditions 55% Low cash flow break-even levels, strong balance sheet, and 50% $20 high operating leverage 45% 40% • Low fleet FCF break-even of approximately $14,300 per day(1)(3) Annualized FCF Yield $1
Slide 8: Q&A
Q&A 8
Slide 9: Appendix
: : pros EES St A ppendix
Slide 10: Teekay Corporation Q4-24 and FY2024 Update
Teekay Corporation Q4-24 and FY2024 Update Adj. Net Income(1) Adj. EPS(1) Q4-24 $16.6 million $0.19 / share 2024 $111.9 million $1.23 / share o During 2024, returned $151 million of capital to shareholders o Special dividend of $85 million ($1.00 / share) o Share repurchases of $66 million o Increas
Slide 11: Fleet In-charters
Fleet In-charters 400 $40,000 350 $35,000 300 $30,000 250 $25,000 Ship Days 200 $20,000 150 $15,000 100 $10,000 50 $5,000 0 $0 Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax S
Slide 12: Fleet Out-charters
Fleet Out-charters(1) 100 $60,000 90 $50,000 80 70 $40,000 60 Ship Days 50 $30,000 40 $20,000 30 20 $10,000 10 0 $0 Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Aframax/ Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suez
Slide 13: Q1-25 Outlook
Q1-25 Outlook Q4-24 in Q1-25 Outlook(1) thousands Income Statement Item adjusted basis(1) (expected changes from Q4-24) Decrease of approximately 410 net revenue days, consisting of a decrease of 365 spot days and a decrease of 45 fixed days, primarily due to the sales of three Suezmax vessels and t
Slide 14: Adjusted Net Income
Adjusted Net Income(1)(2) Q4-24 vs. Q3-24 (In thousands of U.S. dollars) Q4-2024 Q3-2024 Statement Item Variance Comments (unaudited) (unaudited) Revenues 228,483 243,278 (14,795) Voyage expenses (94,934) (93,984) (950) (3) Net revenues 133,549 149,294 (15,745) Decrease primarily due to lower overal
Slide 15: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income Q4-24 (In thousands of U.S. dollars) Statement Item As Reported Subtract: Adjusted Items As Adjusted (GAAP) (1) Acquired (Appendix A) (3) (Excluding Operations (2) Acquired Operations) Revenues 258,351 (29,868) - 228,483 Voyage expenses (94,934) - - (94,934)
Slide 16: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income 2024 (In thousands of U.S. dollars) As Adjusted As Reported Subtract: Adjusted Items (Excluding (GAAP) (1) Acquired Statement Item (Appendix A) (3) Acquired Operations (2) Operations) Revenues 1,229,336 (122,642) - 1,106,694 Voyage expenses (405,546) - - (40
Slide 17: Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Free Cash Flow (In thousands of U.S. dollars) Three Months Year Free cash flow (FCF) represents Ended Ended net income, plus depreciation and December 31, December 31, amortization, loss on sale of 2024 2024 assets, unrealized losses from (unaudited) (una
Slide 18: Dry-dock & Off-hire Schedule
Dry-dock & Off-hire Schedule(1)(2)(3) Teekay Tankers December 31, 2024 (A) March 31, 2025 (E) June 30, 2025 (E) September 30, 2025 (E) December 31, 2025 (E) Total 2025 (E) Total Total Total Total Total Total Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels