Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q4 2008 Earnings Presentation
12 slides from Teekay Tankers's earnings presentation, May 15, 2009
Slide 1: Fourth Quarter 2008 Earnings Presentation
T E E K A Y T A N K E R S L T D. Fourth Quarter 2008 Earnings Presentation May 15, 2009 www.teekaytankers.com
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: the Company’
Slide 3: Highlights
Highlights f Fourth quarter of 2008: f Generated Cash Available for Distribution of $18.8m f Declared fourth quarter dividend of $0.72 per share, bringing 2008 dividend to $3.39 per share f Earned net income of $13.0m, or $0.52 per share (excluding unrealized loss on an interest rate swap of $13.8m,
Slide 4: Sponsorship From Teekay Corporation Proving Valuable
Sponsorship From Teekay Corporation Proving Valuable TNK’s spot vessels gain scale benefits from trading in Teekay pools f Gemini Suezmax Pool: f 42 vessels f Includes leading names in tanker industry such as Teekay, Frontline, NAT, HMM and Koenig f Teekay Aframax Pool: f 30 vessels TNK benefits fro
Slide 5: Active Fleet Management has Provided Significant Forward Fixed-rate Charter Cover
Active Fleet Management has Provided Significant Forward Fixed-rate Charter Cover Fleet Coverage Name Y/ Built Dwt (by Revenue Days) Fixed Spot Narmada Spirit 2003 159,200 2009E 62% 38% Falster Spirit 1995 95,400 Trading in 2010E 41% 59% Kanata Spirit 1999 113,000 Teekay Pools 2011E 27% 73% Sotra Sp
Slide 6: TNK Charter Mix Expected to Outperform Spot Market
TNK Charter Mix Expected to Outperform Spot Market f TNK fixed-rate time-charters now outperforming the spot market in both Aframax and Suezmax sectors f Fixed-rate cover sets a “floor” under TNK dividends TNK Suezmax TCE Rates TNK Aframax TCE Rates $50,000 $50,000 $45,000 $45,000 (USD per day TCE)
Slide 7: TNK Can Pay a Dividend in Any Spot Market Environment
TNK Can Pay a Dividend in Any Spot Market Environment Q2 2009 Estimated Dividend Suezmax Spot Rate Assumption (TCE basis per day) Per Share* $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $0 $0.09 $0.13 $0.16 $0.20 $0.26 $0.31 $0.36 $5,000 $0.14 $0.18 $0.21 $0.25 $0.31 $0.36 $0.41 (TCE basis per
Slide 8: Dividend Payout Enhanced by Favorable Debt Profile
Dividend Payout Enhanced by Favorable Debt Profile f Minimal principal payments until 2013 f Low average cost of debt ~4%* f No financial ratio or hull covenant concerns f Liquidity of $78.1m as at March 31, 2009 Principal Payments Revolver Reductions 16 $14.5 14 12 $ millions 10 $10.9 8 6 $3.6 $3.6
Slide 9: Tanker Market Dynamics
Tanker Market Dynamics BALANCE OF 2009 – Weak Outlook 2010 – Emerging Recovery? Demand Demand f Global oil demand shrinking as GDP f Potential for economic recovery beginning growth turns negative for the first time in 2010 since World War II f Economic stimulus and low energy prices f OPEC cutbacks
Slide 10: TNK Represents a Compelling Value Proposition
TNK Represents a Compelling Value Proposition TNK NAT* Current Share Price (1) $11.96 $32.95 Current Yield (2) 20% 11% On-the-water Fleet (3) 11 vessels 13 vessels % of Fleet on Fixed-rate 64% 8% Time-charter (3) Spot TCE Cash Flow Approx. $10,000 Below zero (Dividend) Breakeven (4) per day (5) Esti
Slide 11: Appendix
Appendix www.teekaytankers.com
Slide 12: Q4 2008 Cash Available for Distribution
Q4 2008 Cash Available for Distribution Three Months Ended December 31, 2008 (unaudited) Net loss (847) Add: Depreciation and amortization 5,917 Unrealized loss from interest rate swap 13,811 Less: Other non-cash items (34) Cash Available for Distribution 18,847 Less: Reserve for debt principal repa