Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q2 2016 Earnings Presentation
13 slides from Teekay Tankers's earnings presentation, Aug 4, 2016
Slide 1: Teekay Tankers Q2-2016 Earnings Presentation
TEEKAY TANKERS Q2-2016 EARNINGS PRESENTATION August 4, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This release 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: crude oil and ref
Slide 3: Recent Highlights
Recent Highlights • Q2-16 Financial Results ○ Generated adjusted net income(1) of $31.6 million, or $0.20 per share, and free cash flow(1) of $59.6 million • Dividend of $0.06 per share for Q2-16, representing 30% of adjusted net income • Completed sale of non-core MR product tanker for proceeds of
Slide 4: Counteracting a Lower Rate Environment
Counteracting a Lower Rate Environment 2016 Aframax Rates 2016 Suezmax Rates 5-year range 5-year avg. 2016 5-year range 5-year avg 2016 50,000 80,000 45,000 70,000 40,000 60,000 35,000 50,000 30,000 25,000 40,000 20,000 30,000 15,000 20,000 10,000 5,000 10,000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 5: Positive Long-Term Supply Outlook
Positive Long-Term Supply Outlook Fleet Profile and Orderbook Orderbook vs 15+ Year Fleet 160 300 Suezmax Orderbook 140 Aframax Orderbook 250 26 Number of Vessels 120 Number of Vessels Suezmax Fleet 15 Years 200 39 100 Aframax Fleet 16 Years 80 150 52 17 Years 246 18 Years 60 44 100 19 Years 40 26 2
Slide 6: Focus on Total Shareholder Return
Focus on Total Shareholder Return • Continued balance sheet delevering through reduction of net debt in Q2-16 • Rewarding shareholders through variable cash dividend o Q2-16 dividend of $0.06 per share, representing 30% of adjusted net income FCF and Dividend Yield1,2,3 Financial Leverage2,3 80% Afr
Slide 7: Q3-16 Spot Earnings Update
Q3-16 Spot Earnings Update $40,000 $31,000 $30,000 $23,600 $23,800 $21,000 $20,000 $17,900 $18,100 $10,000 $- Suezmax Aframax RSA LR2 Q2-16 Actual Q3-16 to-date Suezmax Aframax LR2 Q3-16 spot ship 1,767 857 687 days available Q3-16 % booked 45% 39% 40% to-date 7
Slide 8: Appendix
APPENDIX 8
Slide 9: Fleet Employment Profile
Fleet Employment Profile In-Charter Portfolio Aframax $22,000 (1) Aframax $13,000 Aframax $22,000 Optional Period Aframax $22,750 Aframax $18,900 Optional Period (2) LR2 $16,000 LR2 $20,500 Optional Period Out-Charter Porfolio Fixed-rate coverage for 12 months ended: Aframax $29,000 June 30, 2015: 2
Slide 10: Q3-16 Outlook
Q3-16 Outlook Income Statement Item Q3-16 Outlook (expected changes from Q2-16) Decrease of approximately 380 net spot revenue days in TNK, mainly due to redeliveries of three net in- chartered vessels in Q3-16. Revenues (1) Approximately 42% of Q3-16 spot revenue days for Aframaxes and Suezmaxes fi
Slide 11: Consolidated Adjusted Line Items
Consolidated Adjusted Line Items Q2-16 (in thousands of U.S. dollars) Income Statement Item As Reported Appendix A Reclass for As Adjusted Items (1) Realized Gain/ Loss on Derivatives Revenues 129,863 - 126 129,989 Asset impairment (6,420) 6,420 - - Interest expense (7,341) - (1,276) (8,617) Realize
Slide 12: Drydock & Offhire Schedule
Drydock & Offhire Schedule Teekay Tankers March 31, 2016 (A) June 30, 2016 (A) September 30, 2016 (E) December 31, 2016 (E) Total 2016 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 - 50
Slide 13: Bringing Energy to the World
BRINGING ENERGY TO E WORLD 13