Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2011 Earnings Presentation
9 slides from Teekay Tankers's earnings presentation, May 12, 2011
Slide 1: Q1 2011 Earnings Presentation
Q1 2011 Earnings Presentation May 12, 2011
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: tanker marke
Slide 3: Recent Highlights
Recent Highlights » Declared a dividend of $0.25 per share for Q1-11, up from $0.22 per share in the previous quarter • Payable on May 27th to all shareholders of record on May 20th » 62% of Q1-11 revenues days earned avg. of $24,243 per day on fixed-rate time-charters, significantly above average s
Slide 4: Profile of TNK’s Tactical Fleet Management
Profile of TNK’s Tactical Fleet Management Name Y/ Built Dwt Kaveri Spirit 2004 149,985 Ashkini Spirit 2003 165,200 Pro Forma Coverage Kanata Spirit 1999 113,000 Trading in Iskmati Spirit 2003 165,209 Teekay Pools Fixed Spot Helga Spirit 2005 115,500 Q2 2011 59% 41% Erik Spirit 2005 115,500 Q2-Q4 20
Slide 5: Q2 2011 Dividend Matrix
Q2 2011 Dividend Matrix » For Q2-11 to-date, average spot bookings are up slightly from the previous quarter (based on ~50% days booked) • Aframax: $18,000 per day (vs. $17,182 per day in Q1-11) • Suezmax: $21,000 per day (vs. $18,870 per day in Q1-11) Q2 2011 Dividend Est. Suezmax Spot Rate Assumpt
Slide 6: Volatility During Q1-11; Vessel Supply Continues to Hurt Rates
Volatility During Q1-11; Vessel Supply Continues to Hurt Rates Suezmax Spot Average Aframax Spot Average 70,000 Q2-2010 Q3-2010 Q4-2010 Q1-2011 60,000 50,000 USD / Day 40,000 30,000 20,000 10,000 Source: Clarksons 0 Jun-10 Jul-10 Nov-10 May-10 Jan-11 Aug-10 May-11 Apr-10 Sep-10 Oct-10 Feb-11 Mar-11
Slide 7: Declining Secondhand Prices Presents Acquisition Opportunities
Declining Secondhand Prices Presents Acquisition Opportunities Newbuilding vs. Secondhand Price Aframax Newbuildings Out of the Money 90 Avge. Order Price Avge. Resale Price 90 Aframax NB Aframax 5-yr 80 75 80 80 50 67 67 70 USD millions 64 63 USD Millions 70 60 60 60 50 53 53 52 50 50 40 44 40 38 3
Slide 8: Decline in New Tanker Orders Positive for Long Term Recovery
Decline in New Tanker Orders Positive for Long Term Recovery New Vessel Orders vs. Deliveries 100 Tanker Deliveries Tanker Orderbook New Tanker Orders 90 Avalanche of 80 ships ordered 70 2006-08… …largely delivered by end-2012 Million DWT 60 50 40 30 20 10 0 2004 2005 2006 2007 2008 2009 2010 2011 2
Slide 9: TNK Financial Strength is a Competitive Advantage
TNK Financial Strength is a Competitive Advantage » Low spot tanker cash flow breakeven » Net Debt/Cap: 37.8% below $0 / day in 2011 » Minimal principal payments through 2015 » March 31, 2010 total liquidity: $298 » Dividend yield: 10.4%* million $350 Total Liquidity $300 $250 $200 Undrawn Lines $27