Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2023 Earnings Presentation
17 slides from Teekay Tankers's earnings presentation, Nov 2, 2023
Slide 1: Third Quarter 2023 Earnings Presentation
Teekay Tankers Third Quarter 2023 Earnings Presentation November 2, 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 Market Activity Total adjusted EBITDA(1) of $106.1 million, compared to Highest third quarter spot rates in 15 years despite $91.8 million in Q3-22 reduced exports from OPEC+ and seasonal factors Adjusted net income(1) of $76.6 million, or $2.24 per Spot tanker rates have
Slide 4: Q3-23 Spot Rates Remain Firm, Exhibiting Normal Seasonality
Q3-23 Spot Rates Remain Firm, Exhibiting TNK’s Third Quarter Average Mid-Size Tanker Spot Rates Benchmark Crude Mid-Size Tanker Spot Rates Normal Seasonality Suezmax Aframax Spot rates historically strong despite 50 100 falling in the second half of the quarter due to reduced OPEC+ 90 45 exports and
Slide 5: Q4-23 To-Date Spot Rates
Q4-23 To-Date Spot Spot Rates Rates 90,000 $83,900 80,000 $72,900 Exercised a one-year extension 70,000 option for one chartered-in vessel. Currently eight vessels chartered-in 60,000 Rate ($/day) at an average rate of $25,400 per 50,000 day, mark-to-market value of approximately $56 million(2) 40,0
Slide 6: Conditions in Place For Another Strong Winter Tanker Market
Conditions in Place For Another Strong Saudi / Russian Crude Oil Exports Global Refinery Throughput Winter Tanker Market Saudi Arabia Russia 2022 2023 Crude oil export volumes have 12 85 recovered from Q3-23 lows and are set to rise further during Q4-23: 11 • Russian crude oil exports +0.4 mb/d 10 8
Slide 7: Tanker Fleet Supply Fundamentals Remain Very Strong
Tanker Fleet Supply Favourable Orderbook Dynamics Low Tanker Fleet Growth Through 2026 Fundamentals Remain Very Strong Orderbook as % of fleet Historic Forecast* Shipyard forward cover 60 6 7% The tanker orderbook remains near historic low levels and shipyard capacity is limited: 6% • Tanker orderbo
Slide 8: Creating Significant Shareholder Value and Strategic Optionality
Creating Significant Shareholder Value and Strategic Optionality 96% of the 53-vessel fleet trading in the strong spot market • Generated $98 million of FCF(1) in Q3-23 • Based on LTM average realized spot rates, annualized FCF(1)(2) forecast is approximately $18.27 per share, resulting in a FCF yie
Slide 9: Appendix
Appendix 9
Slide 10: Debt Repayment Profile
Debt Repayment Profile Debt Repayment Profile Scheduled debt repayments are related to the eight remaining 30 vessels in sale-leaseback arrangements, which have purchase options available in Q1-24 20 $ Millions 10 21 21 21 21 5 0 Remaining 3 months of 2024 2025 2026 2027 2023 10
Slide 11: 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 Suezmax Suezmax Suezmax
Slide 12: 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 Suezmax Suezmax Suezmax
Slide 13: Q4-23 Outlook
Q4-23 Outlook Q3-23 in Q4-23 Outlook(1) Income Statement thousands adjusted (expected changes from Q3-23) Item basis(1) Decrease of approximately 115 spot market revenue days, primarily due to more scheduled dry dockings in Q4-23. Net revenues (2) 172,584 Refer to Slide 5 for Q4-23 booked to-date sp
Slide 14: Adjusted Net Income
Adjusted Net (In thousands of U.S. dollars) Income(1) Q3-2023 Q2-2023 Statement Item Variance Comments (unaudited) (unaudited) Revenues 285,858 370,646 (84,788) Q3-23 vs Q2-23 Voyage expenses (113,274) (118,082) 4,808 (2) Net revenues 172,584 252,564 (79,980) Decrease primarily due to lower overall
Slide 15: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income (In thousands of U.S. dollars) Statement Item As Reported Appendix A As Adjusted Q3-23 Items(1) Revenues 285,858 - 285,858 Voyage expenses (113,274) - (113,274) Net revenues (2) 172,584 - 172,584 Vessel operating expenses (36,366) - (36,366) Time-charter hir
Slide 16: Reconciliation of Non-GAAP Financial Measure – Free Cash Flow
Reconciliation of Non- GAAP Financial Measure – Free Cash Flow (In thousands of U.S. dollars) Three Months Ended September 30, 2023 (unaudited) Net income - GAAP basis 81,366 Add: Depreciation and amortization 24,565 Proportionate share of free cash flow from equity-accounted joint venture 1,180 Les
Slide 17: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2023 (A) June 30, 2023 (A) September 30, 2023 (A) December 31, 2023 (E) Total 2023 (E) Total 2024 (E) Total Total Total Total Total Total Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hir