Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2017 Earnings Presentation
18 slides from Teekay Tankers's earnings presentation, Nov 9, 2017
Slide 1: Teekay Tankers Q3-2017 Earnings Presentation
TEEKAY TANKERS Q3-2017 EARNINGS PRESENTATION November 9, 2017
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: expected fin
Slide 3: Recent Highlights
Recent Highlights • Q3-17 Financial Results ○ Recorded adjusted net loss(1) of $14.0 million, or $0.08 per share, and generated cash flow from vessel operations(1) of $20.6 million • Declared dividend of $0.03 per share for Q3-17, consistent with dividend policy • TNK’s four largest shareholders and
Slide 4: Strategic Benefits of Proposed Merger with TIL
Strategic Benefits of Proposed Merger with TIL Consistent with TNK’s strategy of Establishes TNK’s market leading increasing shareholder value by presence in key markets, which is investing and operating throughout expected to result in improved vessel the tanker cycle utilization, triangulation opp
Slide 5: Expected Financial Benefits of Proposed Merger
Expected Financial Benefits of Proposed Merger ACCRETIVE TO ATTRACTIVE STRENGTHEN COST EARNINGS VALUATION BALANCE SHEET SYNERGIES Merger expected to 18 vessel fleet acquired Expected to strengthen Potential to generate be immediately at right point in Teekay Tankers’ balance ~$3 million of annual ac
Slide 6: Independent Proxy Advisory Firms Support
Independent Proxy Advisory Firms Support • Glass Lewis and Institutional Shareholder Services (ISS) recommended shareholders vote “FOR” the proposed charter amendment to permit the merger with TIL • Date of special meeting of Shareholders set for November 17, 2017 • A NON-VOTE IS A VOTE AGAINST o We
Slide 7: Tanker Rates Recovering From Q3 Lows
Tanker Rates Recovering From Q3 Lows Aframax rates in October are the highest in nine months 40 Q3 Crude Tanker Earnings 45 Earnings (Last 12 Months) 35 Suezmax Aframax 40 Suezmax Aframax 30 $33 35 ‘000 USD / day ‘000 USD / day 30 25 $27 25 20 $21$20 20 15 $16 15 10 $14 $12 $11 $11$12 $10 10 $9 $9 $
Slide 8: Tanker Supply Growth Easing, Setting the Stage for a Recovery
Tanker Supply Growth Easing, Setting the Stage for a Recovery Mid-Size Tanker Deliveries vs. Scrapping • There has been a significant uptick in 7 scrapping in 2H-2017 driven by: Scrapping Deliveries 6 o Low freight rates Vessels Reaching 20 Years Orderbook o Increase in scrap prices 5 Net Growth o U
Slide 9: Supportive Oil Market Fundamentals for 2018
Supportive Oil Market Fundamentals for 2018 Oil demand remains strong; rising US exports positive for ton-miles Evolution of IEA’s 2017/18 Oil Demand Growth Forecast • Global oil demand remains strong 1.7 2017 Growth Forecast 2018 Growth Forecast o 1.6 mdwt growth forecast for 2017 1.6 1.5 o 1.4 mdw
Slide 10: Q4-17 Spot Earnings Update
Q4-17 Spot Earnings Update 30,000 20,000 $15,100 $13,400 $12,800 $13,000 $11,800 $10,600 10,000 - 2 Suezmax 1 Aframax RSA and FSL LR2 Q3-17 Actual Q4-17 to-date Suezmax Aframax LR2 Q4-17 spot ship 1,414 603 368 days available Q4-17 % booked 50% 46% 41% to-date (1) Combined average spot TCE rate incl
Slide 11: Appendix
APPENDIX 11
Slide 12: Fleet Employment – In-Charters
Fleet Employment – In-Charters1 350 300 Ship Days 250 200 150 100 50 - Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Aframax/LR2 Days 94 90 91 92 92 90 91 92 92 91 91 92 92 Average Aframax/LR2 Rate 22,628 22,750 22,750 22,750 22,750 22,750 22
Slide 13: Fleet Employment – Out-Charters
Fleet Employment – Out-Charters1 900 800 700 600 Ship Days 500 400 300 200 100 - Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 VLCC Days (2) 92 90 81 - - - - - - - - - - Suezmax Days 347 198 101 59 - - - - - - - - - Aframax/LR2 D
Slide 14: Q4-17 Outlook
Q4-17 Outlook Income Statement Item Q4-17 Outlook (expected changes from Q3-17) Increase of approximately 240 net revenue days in TNK, mainly due to the additional revenue days (540 days) from the expected merger w ith TIL in December, partially offset by the expected drydockings of various vessels,
Slide 15: Consolidated Adjusted Statement of Loss
Consolidated Adjusted Statement of Loss Q3-17 (in thousands of U.S. dollars) Statement Item As Reported Appendix A Reclassification for As Adjusted Items (1) Realized Gain/ Loss on Derivatives Revenues 91,238 - 234 91,472 Voyage expenses (18,303) - - (18,303) Vessel operating expenses (40,958) - - (
Slide 16: Drydock & Offhire Schedule
Drydock & Offhire Schedule Teekay Tankers March 31, 2017 (A) June 30, 2017 (A) September 30, 2017 (A) December 31, 2017 (E) Total 2017 Total 2018 Total Total Total Total Total Total Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Segment Days Day
Slide 17: Information about the Merger and Where to Find It
Information about the Merger and Where to Find It TThis communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed merger o
Slide 18: Bringing Energy to the World
BRINGING ENERGY TO THE WORLD