Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2013 Earnings Presentation
14 slides from Teekay Tankers's earnings presentation, May 9, 2013
Slide 1: First Quarter 2013 Earnings Presentation
First Quarter 2013 Earnings Presentation May 9, 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 • Q1-13 Results – Generated Cash Available for Distribution (CAD)(1) of $0.10 per share – Reported adjusted net loss of $0.04 per share – Declared quarterly fixed dividend of $0.03 per share • Outperformed industry benchmarks in all spot tanker segments • Strong fixed-rate charter
Slide 4: Strong Fixed-Rate Cover
Strong Fixed-Rate Cover Name Class Y/Built Kareela Spirit Aframax 1999 Star Lady Aframax 2005 $12,250 In-Charter BM Breeze Aframax 2008 $11,100 In-Charter Donegal Spirit LR2 2006 Limerick Spirit LR2 2007 Galway Spirit LR2 2007 Ganges Spirit Suezmax 2002 Trading in Fixed-Rate Coverage (estimated) Yam
Slide 5: TNK Performing Well in a Challenging Tanker Market
TNK Performing Well in a Challenging Tanker Market 35,000 Tanker Spot Rates 30,000 Suezmax Aframax LR2 25,000 USD / Day 20,000 15,000 10,000 5,000 0 Jul-12 Jun-12 Aug-12 Sep-12 Dec-12 Jan-13 Apr-12 Oct-12 Nov-12 Mar-13 May-12 Apr-13 Feb-13 Source: Clarksons / Internal Estimates Aframax TCE / day ($)
Slide 6: Fleet Utilization
Better Supply / Demand Balance From 2014 Fleet Utilization Tanker Demand Growth Tanker Supply Growth 92% 8% Demand / Supply Growth 90% 7% Fleet Utilization 88% 6% 86% 5% 84% 4% 82% 3% 80% 2% 78% 1% 76% 0% Source: Platou / Internal Estimates • Improved tanker supply / demand balance in 2014 due to: –
Slide 7: Fuel-Efficient LR2 Newbuildings
Fuel-Efficient LR2 Newbuildings • In April, TNK ordered four Long Range 2 (LR2) product tanker newbuildings for a fully built-up cost of ~$47 million each • Delivery beginning in late 2015/2016 into an expected firming market • Expected to reduce fuel consumption by 20- 30% (savings of up to $7,000/
Slide 8: LR2 Market Expected to Drive Newbuild Option Value
LR2 Market Expected to Drive Newbuild Option Value LR2 Fleet Change Forecast LR2 Fleet Utilization Forecast Removals Deliveries Net Fleet Growth 100% 50 95% Percent of Supply Number of Vessels 40 30 90% 20 85% 10 80% 0 -10 75% -20 70% Source: Clarksons / Internal Estimates Source: Poten • Refining c
Slide 9: Update on Investment in Term Loans
Update on Investment in Term Loans • In July 2010, invested in two $57.5 million, three-year first- priority ship mortgages yielding 10% per annum, secured by two 2010-built VLCC tankers – Income from the term loans has been approximately $30 million since initiated • Borrower is facing financial di
Slide 10: TNK Financial Profile
TNK Financial Profile • Total liquidity at March 31, 2013 of ~$294 million • No financial covenant concerns • Low debt principal repayments through 2016 Total Liquidity $400 $294 $300 Millions $200 $100 21 21 17 20 $0 31-Mar-13 Q2-Q4 2013 2014 2015 2016 Cash Undrawn Lines Scheduled Principal Repayme
Slide 11: Q2-13 Cash Available for Distribution Outlook
Q2-13 Cash Available for Distribution Outlook • Overall, average spot bookings in Q2-13 to-date, similar to Q1-13 (based on approximately 40% and 65% of days booked in the quarter for Suezmax/Aframax and LR2 segments, respectively) ○ Suezmax: $12,300 per day (vs. $13,800 per day in Q1-13) ○ Aframax:
Slide 12: Appendix
Appendix TEEKAY TANKERS 12
Slide 13: TNK Drydock Schedule
TNK Drydock Schedule March 31, 2013 (A) June 30, 2013 (E) September 30, 2013 (E) December 31, 2013 (E) Total 2013 Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Offhire Offhire Offhire Offhire Offhire Drydocked Drydocked Drydocked Drydocked Drydocked Segment Days Days Days Day
Slide 14: TEEKAY TANKERS
TEEKAY TANKERS 14