Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q4 2016 Earnings Presentation
16 slides from Teekay Tankers's earnings presentation, Feb 23, 2017
Slide 1: Q4-2016 Earnings Presentation
TEEKAY TANKERS Q4-2016 EARNINGS PRESENTATION February 23, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements (as defined in Section 21E of the U.S. Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements regarding: vessel
Slide 3: Recent Highlights
Recent Highlights • Q4-16 Financial Results ○ Generated adjusted income(1) of $5.1 million, or $0.03 per share, and free cash flow(1) of $34.2 million • Dividend of $0.03 per share for Q4-16, consistent with dividend policy • Decreased net debt to capitalization from 50% in Q3-16 to 47%(2) in Q4-16
Slide 4: Seasonal Uptick in Rates During Q4-16
Seasonal Uptick in Rates During Q4-16 2016 Aframax Rates 2016 Suezmax Rates 5-year range 5-year avg. 2016 5-year range 5-year avg 2016 50,000 60,000 50,000 40,000 40,000 30,000 30,000 20,000 20,000 10,000 10,000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 5: Near-term Tanker Market Cycle
Near-term Tanker Market Cycle* 2015 MARKET CYCLE 2016 2014: Market recovery 2018: Beginning of next market upturn: • Increased scrapping due to aging fleet with upside from regulations • Mid-sized fleet growth 2% • Rebound in OPEC 2017: Weaker market production 2011-13: • Strong oil demand growth Ma
Slide 6: 2018 and Beyond: Positive Supply Factors
2018 and Beyond: Positive Supply Factors Lack of newbuilding orders and aging fleet to limit supply growth 160 Mid-Size Fleet & Orderbook Age Profile Suezmax Aframax Small 2018 / 19 • Aging fleet: potential for more 140 Age 15 or older by 2020 orderbook scrapping 120 o 1/3 of mid-sized fleet reaches
Slide 7: 2018 and Beyond: Positive Demand Factors
2018 and Beyond: Positive Demand Factors Long-haul trade growth Americas Europe Asia 4.4 -0.1 -0.6 2.4 Supply Demand -0.2 -0.4 Supply Demand Supply Demand Africa & Middle East 2.0 Latin America OPEC policy dependent Supply Demand 0.6 0.3 Supply Demand Note: Figures in million barrels per day (m/bd)
Slide 8: Changing Market: TNK Well-Positioned
Changing Market: TNK Well-Positioned TNK has the agility to respond to changing market conditions Changing Market Conditions TNK Well-Positioned Increased fixed-rate Softening freight cover; strengthened market in 2017 balance sheet Increasing U.S. Strengthened STS exports operations in U.S. Gulf OP
Slide 9: Q1-17 Spot Earnings Update
Q1-17 Spot Earnings Update $30,000 $26,200 $22,400 $20,100 $20,000 $19,200 $17,500 $13,900 $10,000 $- 1 Suezmax Aframax 2 LR2 Q4-16 Actual Q1-17 to-date Suezmax Aframax LR2 Q1-17 spot ship 1,337 1,187 450 days available Q1-17 % booked 62% 55% 49% to-date (1) Combined average spot TCE rate including
Slide 10: Appendix
APPENDIX 10
Slide 11: Fleet Employment – In Charters
Fleet Employment – In Charters 600 500 Ship Days 400 300 200 100 - Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Aframax Days 540 335 259 116 90 91 92 92 90 91 92 92 LR2 Days 90 50 - - - - - - - - - - Aframax Rates 19,200 19,300 19,600 21,600 22,800
Slide 12: Fleet Employment – Out Charters
Fleet Employment – Out Charters1 700 600 500 Ship Days 400 300 200 100 - 2 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 VLCC Days (2) 90 91 92 92 90 81 - - - - - - Suezmax Days 510 455 323 254 124 91 88 - - - - - Aframax Days 675 597 506 455 360 339
Slide 13: Q1-17 Outlook
Q1-17 Outlook Income Statement Item Q1-17 Outlook (expected changes from Q4-16) Decrease of approximately 430 net spot revenue days in TNK, mainly due to changes to vessel employment and the sale of three vessels, with one vessel delivered to the new owner in Q4-16 and two vessels to be Revenues del
Slide 14: Consolidated Adjusted Line Items
Consolidated Adjusted Line Items Income Statement Item As Reported Appendix A Reclassification As Items (1) for Realized Adjusted Gain/ Loss on Derivatives Revenues 117,704 - 932 118,636 General and administrative expenses (4,437) 495 - (3,942) Loss on sale of vessels (6,271) 6,271 - - Interest expe
Slide 15: Drydock & Offhire Schedule
Drydock & Offhire Schedule Teekay Tankers March 31, 2017 (E) June 30, 2017 (E) September 30, 2017 (E) December 31, 2017 (E) Total 2017 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 30
Slide 16: Bringing Energy to the World
BRINGING ENERGY TO THE WORLD