Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2023 Earnings Presentation
18 slides from Teekay Tankers's earnings presentation, May 1, 2023
Slide 1: Teekay Tankers First Quarter 2023 Earnings Presentation
Teekay Tankers First Quarter 2023 Earnings Presentation May 11, 2023
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 report, other than statements of
Slide 3: Recent Highlights
Recent Highlights Financial Update Capital Allocation Tanker Market Total adjusted EBITDA(1) of $205.8 Generated $193.8 million of FCF(2) Spot tanker rates in Q1-23 were the million, up $25.7 million from Q4-22 in Q1-23 highest ever recorded for the first quarter of the year and remain firm, Adjuste
Slide 4: Spot Tanker Rates Remain Elevated, Though Volatile
Spot Tanker Rates TNK’s First Quarter Average Mid-Size Tanker Rates Benchmark Crude Tanker Spot Rates Remain Elevated, VLCC Suezmax Aframax Though Volatile 70 140 Spot tanker rates in Q1-23 were the 120 60 highest on record for a first quarter due to a number of factors: 100 • Record high US Gulf cr
Slide 5: Q2-23 To-Date Spot Rates
Q2-23 To-Date Spot Spot Rates Rates 80,000 70,000 Historically strong spot rates continued in early Q2-23 60,000 50,000 Rate ($/day) Currently eight vessels chartered-in at an average of $24,300 per day, 40,000 mark-to-market value of 67,300 approximately $68.3 million(2) 30,000 62,400 58,500 55,900
Slide 6: Strong US and Russian Crude Oil Exports Supporting Mid-Size Tanker Demand
Strong US and Russian Crude Oil Exports Monthly US Crude Oil Exports Monthly Russian Crude Oil Exports Supporting Mid-Size Total Exports 3-month moving average Total Exports % to Asia Tanker Demand 4.7 3.6 100% US crude oil exports at a record high of 4.0 mb/d in Q1-23 with some 4.5 weeks reaching o
Slide 7: Strong Oil Demand Growth in 2023 Led by China
Strong Oil Demand Growth in 2023 Led Global Oil Demand 2023 Oil Demand Growth by Region by China China Asia (Ex-China) Other Non-OECD 102 2.0 Global oil demand projected to grow +2.0 mb/d by 2 mb/d in 2023 with 90% of growth coming from non-OECD led by a post- 100 1.8 COVID rebound in China 1.6 Chin
Slide 8: Low Tanker Fleet Growth Through 2025
Low Tanker Fleet Growth Through 2025 Favourable Orderbook Dynamics Tanker Demand Set to Outstrip Fleet Supports an Extended Supply Growth in 2023 / 24 Market Upturn Orderbook as % of fleet Shipyard forward cover Tonne-Mile Demand Growth Fleet Supply Growth Tanker orderbook as a proportion of 60 6 th
Slide 9: High Operating Leverage Positions TNK for Significant Free Cash Flow Generation
High Operating Leverage Positions TNK for Significant Free Cash Flow Generation FCF Per Share Spot Rate Sensitivity Next 12 Months (1,2,3) 100% 51 vessels (96% of the fleet) trading in the spot market coupled with $35.00 90% positive fundamentals positions the Company to generate significant 80% cas
Slide 10: Updated Capital Allocation Plan
Updated Capital Allocation Plan 2022 capital allocation plan focused 1. Continued focus on financial strength for future fleet reinvestment on improving balance sheet strength. Since the beginning of 2022: FCF(1) generation of $482 million 2. Return capital to shareholders Net debt(2) reduced by
Slide 11: Appendix
Appendix 11
Slide 12: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Profile(1,2,3) 200 150 $ Millions 100 143 50 22 29 29 29 29 0 Remaining 9 months of 2024 2025 2026 2027 2023 Declared Sale Leaseback Purchase Options Scheduled Repayments incl. Capital Leases (1) Purchase options of $143 million is expected to be paid with exist
Slide 13: Fleet In-Charters
Fleet In-Charters 700 35,000 600 30,000 500 25,000 400 Ship Days 20,000 300 15,000 200 10,000 100 5,000 0 0 Aframax / Aframax / Aframax / Aframax / Aframax / Aframax / Aframax / Aframax / Aframax / Aframax / Aframax / Aframax / Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax
Slide 14: 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
Slide 15: Q2-23 Outlook
Q2-23 Outlook Q1-23 in Q2-23 Outlook(1) thousands Income Statement Item adjusted basis(1) (expected changes from Q1-23) Increase of approximately 240 net revenue days, consisting of an increase of 255 spot days and a decrease of 15 fixed days, primarily due to three in-chartered tankers that were de
Slide 16: Adjusted Net Income
Adjusted Net (In thousands of U.S. dollars) Income(1) Q1-2023 Q4-2022 Statement Item Variance Comments Q1-23 vs Q4-22 Revenues (unaudited) 394,647 (unaudited) 368,145 26,502 Voyage expenses (124,187) (131,989) 7,802 Net revenues (2) 270,460 236,156 34,304 Increase primarily due to higher overall spo
Slide 17: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of (In thousands of U.S. dollars) Income Statement Item As Reported Appendix A Reclassification for As Adjusted Q1-23 Items (1) Realized Gain/ Loss on Derivatives Revenues 394,657 - (10) 394,647 Voyage expenses (124,187) - - (124,187) Net revenues (2) 270,470 - (10) 2
Slide 18: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2023 (A) June 30, 2023 (E) September 30, 2023 (E) December 31, 2023 (E) Total 2023 (E) 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 Spo