Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — FY2015 Earnings Presentation
16 slides from Teekay Tankers's earnings presentation, Feb 19, 2016
Slide 1: Teekay Tankers Q4 and Fiscal 2015 Earnings Presentation
TEEKAY TEEKAY TEEKAY TANKERS Q4 AND FISCAL 2015 EARNINGS PRESENTATION February 19, 2016
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: future divid
Slide 3: Recent Highlights
Recent Highlights • Q4-15 Financial Results ○ Generated adjusted net income1 of $48.5 million, or $0.31 per share, versus adjusted net income of $18.6 million, or $0.21 per share in Q4-14 ○ Generated free cash flow1 of $74.0 million, or $0.48 per share, versus $31.7 million, or $0.35 per share in Q4
Slide 4: Dividend Increase
Dividend Increase Rewarding shareholders while continuing to build financial strength • Distribute 30% to 50% of quarterly adjusted net income, while maintaining minimum quarterly dividend of $0.03 per share ○ Significantly increased dividend from $0.03 per share to $0.12 per share in Q4-15 • New di
Slide 5: Expanding Strategic Presence in US Gulf
Expanding Strategic Presence in US Gulf • Building upon recent ship-to-ship transfer business acquisition and expanding US Gulf presence with: ○ Acquisition of two purpose-built lightering Aframax tankers ○ In-charter of a purpose-built lightering vessel for five years at attractive rate • Vessel ac
Slide 6: Secured New Debt Facility
Secured New Debt Facility • Completed ~$900 million debt facility in January 2016 which includes both term loan and revolving credit facility components ○ 1.4 times oversubscribed ○ Used to refinance 36 existing vessels ○ Replaces five facilities including TNK’s two bridge loans which matured in Jan
Slide 7: 2015: Strongest Crude Tanker Rates In Years
2015: Strongest Crude Tanker Rates In 7 Years Low fleet growth and surging demand gave rise to rate volatility Annual Average Crude Tanker Rates 2015 Crude Tanker Rates 60,000 Suezmax Aframax 2015 50,000 Suezmax 2014 40,000 USD/day 2013 2012 30,000 2011 20,000 Aframax 2010 10,000 2009 0 0 10,000 20,
Slide 8: 2016: Strong Demand Fundamentals Intact
2016: Strong Demand Fundamentals Intact Low oil prices are positive for tanker demand Rising Global Oil Demand 2016 Stock build vs. Spare Storage Capacity 97.0 400 96.5 350 Million bbl / day 96.0 300 New Capacity - Million Barrels China 95.5 250 New Capacity - 95.0 200 Other 150 Available US 94.5 10
Slide 9: New Trade Routes for Mid-Size Tankers
New Trade Routes for Mid-Size Tankers US import / export changes & Panama Canal expansion create opportunities • The US is now free to export surplus light sweet crude to markets in Europe and Asia • Volume of trade dependent on relative pricing between US crude and international grades (exports wil
Slide 10: Fleet Utilization Remains High in 2016
Fleet Utilization Remains High in 2016 Demand growth is sufficient to largely offset higher tanker fleet growth 8% Tanker Demand Growth Tanker Supply Growth Fleet Utilization 92% % Supply / Demand Growth 90% 6% % Fleet Utilization 88% 4% 86% 2% 84% 82% 0% 80% Source: Clarksons / Internal Assumptions
Slide 11: Q1-16 Spot Earnings Update
Q1-16 Spot Earnings Update • Spot rates averaged significantly higher year-on-year in Q4-15 • Strong demand fundamentals lead to continued strength in Q1-16 $50,000 $50,000 $41,430 $39,433 $40,580 $40,000 $40,000 $31,575 $30,708 $30,000 $30,000 $28,393 $26,627 $26,468 $27,120 $25,677 $24,899 $21,884
Slide 12: 2015 Year in Review
2015 Year in Review Building our brand, our capabilities and our financial strength Focusing on core segments, aligning sea and shore capabilities to drive our operational excellence Expansion and modernization of our fleet • Invested ~$1 billion in 19 modern Suezmax, Aframax and LR2 tankers • Reduc
Slide 13: Appendix
APPENDIX 13
Slide 14: Fleet Employment Profile
Fleet Employment Profile In-Charter Portfolio Aframax 2008 $18,600 Aframax 2008 $16,750 Aframax 2008 $15,600 $18,500 Aframax 2008 $19,500 Optional Period Aframax 2009 $17,750 Aframax 2008 $17,750 Aframax 2008 $22,000 Aframax 2008 $12,000 (1) $13,000(1) Aframax 2003 $22,000 Optional Period Aframax 20
Slide 15: Drydock & Offhire Schedule
Drydock & Offhire Schedule Teekay Tankers March 31, 2016 (E) June 30, 2016 (E) September 30, 2016 (E) December 31, 2016 (E) Total 2016 Total Total Total Total Total Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Segment Days Days Days Days Days Spot Tanker 1 10
Slide 16: Q4-15 vs. Q3-15 Results
Q4-15 vs. Q3-15 Results Q4-15 Adjusted Q3-15 Adjusted ($’000’s, except share and per share data) (unaudited)(1) (unaudited)(1) Comments Net revenues 157,907 122,781 • $40m increase from the Principal vessels acquired during Q3-15 and Q4-15; • $2m increase from a full quarter impact of the full servi