Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2024 Earnings Presentation
16 slides from Teekay Tankers's earnings presentation, May 1, 2024
Slide 1: Teekay Tankers First Quarter 2024 Earnings Presentation
Teekay Tankers First Quarter 2024 Earnings Presentation May 9, 2024
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 $150.9 million, compared to Second highest first quarter spot rates in TNK’s history $127.2 million in Q4-23 Spot rates remain firm into Q2-24 Adjusted net income(1) of $132.3 million, or $3.86 per share, compared to $99.5 milli
Slide 4: Strong Spot Rates in Q1-24 With Strength Continuing Into Q2
Strong Spot Rates in Q1-24 With Strength TNK’s First Quarter Average Mid-Size Tanker Rates TNK’s Monthly Mid-Size Tanker Spot Rates Continuing Into Q2 Suezmax Aframax Fleetwide FCF Breakeven Second strongest first quarter mid- 65 60 size tanker spot rates in TNK history 60 Spot rates supported by a
Slide 5: Q2-24 To-Date Spot Rates
Q2-24 To-Date Spot Spot Rates Rates 60,000 Currently eight vessels chartered-in 50,000 at an average rate of $25,400 per day, mark-to-market value of 40,000 Rate ($ / Day) approximately $54 million(2) 30,000 57,600 47,300 50,100 48,800 45,100 43,900 20,000 10,000 0 Suezmax Aframax / LR2 (1) Q2-2023
Slide 6: Trans Mountain Expansion (TMX) to Provide a New Source of Aframax Demand
Trans Mountain Expansion (TMX) to Provide a New Source of Aframax Demand TMX Terminal 590 kb/d of crude oil for export on Aframaxes from The TMX pipeline commenced KEY Vancouver (around 1 operations on May 1st 2024, with first vessel loading per day)(1) cargos expected later in the month Aframax Rou
Slide 7: Strong Medium-Term Tanker Market Outlook
Strong Medium-Term Small Orderbook, Aging Fleet Tanker Demand / Supply Growth Tanker Market Tonne-Mile Demand Growth Outlook Orderbook (% of Fleet) Average Age Fleet Supply Growth The tanker orderbook is small by 50% 14 8 historic standards at 9% of the fleet, delivering over the next 3 years 45% 13
Slide 8: Creating Shareholder Value
Creating Shareholder Value 51-vessel fleet continuing to create significant shareholder value in strong tanker market • 98% of the fleet is in the strong spot market • Generated $156 million of FCF(1) in Q1-24 • Based on LTM average realized spot rates, next 12 months annual FCF(1)(2) would be appro
Slide 9: Appendix
Appendix 9
Slide 10: Ship Days: 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 11: Ship Days: Fleet Out-Charters
Fleet Out-Charters(1) 100 45,000 90 40,000 80 35,000 70 30,000 60 Ship Days 25,000 50 20,000 40 15,000 30 10,000 20 5,000 10 0 0 Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Aframax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Suezmax Sue
Slide 12: Q2-24 Outlook
Q2-24 Outlook Q1-24 in Q2-24 Outlook(1) Income Statement thousands adjusted basis(1) (expected changes from Q1-24) Item Decrease of approximately 225 net revenue days, consisting of a decrease of 195 spot days and a decrease of 30 fixed days, primarily due to more scheduled dry dockings, the sale of
Slide 13: Adjusted Net Income
Adjusted Net Income(1) (In thousands of U.S. dollars) Q1-2024 Q4-2023 Statement Item Variance Comments Q1-24 vs Q4-23 (unaudited) (unaudited) Revenues 338,343 313,291 25,052 Voyage expenses (116,531) (118,828) 2,297 (2) Increase primarily due to higher overall spot TCE rates and fewer scheduled dry-
Slide 14: Consolidated Adjusted Statement of Income
Consolidated Adjusted Statement of Income (In thousands of U.S. dollars) Statement Item As Reported Appendix A As Adjusted Q1-24 Items (1) Revenues 338,343 - 338,343 Voyage expenses (116,531) - (116,531) Net revenues (2) 221,812 - 221,812 Vessel operating expenses (37,495) - (37,495) Time-charter hi
Slide 15: Reconciliation of Non-GAAP Financial Measure – Free Cash Flow
Reconciliation of Non- GAAP Financial Measure – Free Cash Flow (In thousands of U.S. dollars) Free cash flow (FCF) represents Three Months Ended net income, plus depreciation and March 31, amortization, unrealized losses from 2024 derivatives, non-cash items, FCF (unaudited) from equity-accounted in
Slide 16: Drydock & Off-hire Schedule
Drydock & Off-hire Schedule(1)(2)(3) Teekay Tankers March 31, 2024 (A) June 30, 2024 (E) September 30, 2024 (E) December 31, 2024 (E) Total 2024 (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