Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2018 Earnings Presentation
17 slides from Teekay Tankers's earnings presentation, May 17, 2018
Slide 1: Q1-2018 Earnings Presentation
TEEKAY TANKERS Q1-2018 EARNINGS PRESENTATION May 17, 2018
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 completi
Slide 3: Recent Highlights
Recent Highlights • Q1-18 Financial Results ○ Generated total cash flow from vessel operations(1) of $22.3 million and recorded adjusted net loss(1) of $22.0 million, or $0.08 per share • Term sheet signed for sale- leaseback transaction for 7 mid- sized tankers ○ Expected to improve liquidity by $3
Slide 4: Continuing to Strengthen Our Financial Position
Continuing to Strengthen Our Financial Position • Signed term sheet for sale-leaseback transaction for 7 mid-sized tankers which is expected to provide approximately $36 million in additional liquidity o Average bareboat rate of $7,200 per day o Attractive purchase options after year 3 o Also refina
Slide 5: OPEC Supply Cuts Weigh on Tanker Demand
OPEC Supply Cuts Weigh on Tanker Demand Continued spot rate weakness in Q1-18 Q1 Average Earnings Earnings (Last 12 Months) 25 Suezmax Aframax Suezmax Aframax 40 $39 $36 20 ‘000 USD / day ‘000 USD / day 30 $31 $28 $27 15 $23 $22 20 $19 10 $15 $14 $12 $13 10 5 0 0 Source: Teekay Tankers Source: Clark
Slide 6: Tanker Supply Fundamentals Improving
Tanker Supply Fundamentals Improving High tanker scrapping & past the peak of mid-size fleet growth Quarterly Tanker Scrapping Mid-Size Deliveries vs. Scrapping Deliveries Orderbook 9 140 7.0% Scrapped Reaching Age 20 Mid-Size Fleet Growth (%) Highest quarterly 120 6.0% 8 scrapping total since 1982
Slide 7: Oil Markets Are Rebalancing
Oil Markets Are Rebalancing Tight oil market leaves room for more OPEC supply in 2H-18 2018 Oil Demand Growth Forecast Adjustments OECD Oil Stocks vs. Crude Price 1.65 68 120 OECD Oil Inventories Brent Crude 0.2 mb/d increase in 2018 oil demand 66 1.60 growth forecast since July 2017 100 Brent Crude
Slide 8: Q2-18 Spot Earnings Update
Q2-18 Spot Earnings Update 20,000 $15,100 $12,500 $12,800 $12,000 $11,100 $10,600 10,000 - Suezmax 1 Aframax 2 LR2 Q1-18 Actual Q2-18 to-date Suezmax Aframax LR2 Q2-18 spot ship 2,513 1,340 595 days available Q2-18 % booked 56% 52% 50% to-date (1) Combined average spot TCE rate including Suezmax RSA
Slide 9: Appendix
APPENDIX 9
Slide 10: Improved Debt Maturity Profile
Improved Debt Maturity Profile $500 $16 $450 $18 $400 $350 $300 $ Millions $250 $391 $200 $20 $20 $150 $12 $19 $16 $17 $100 $11 $90 $50 $78 $102 $102 $25 $15 $- 2018 2019 2020 2021 2022 Repayments Balloon Payments Capital Leases ( incl. 7 SLB Vessels) Revolver Amortization (1) Pro forma debt maturit
Slide 11: Current Stock Price Offers Significant Leverage to a Market Recovery
Current Stock Price Offers Significant Leverage to a Market Recovery • $5,000 per day increase in spot FCF Per Share Spot Rate Sensitivity1,2 tanker rates equates to $0.32 in $2.50 annual FCF per share • Return to mid-cycle tanker rates $2.00 equates to approximately $1.00 in $ Per Share $1.50 FCF p
Slide 12: Fleet Employment – In-Charter
Fleet Employment – In-Charter1 350 300 Ship Days 250 200 150 100 50 - Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Aframax/LR2 Days 243 157 92 90 91 92 92 91 91 92 92 60 - Aframax/LR2 Rates2 15,716 17,489 22,750 22,750 22,750 22,750 22,750 2
Slide 13: Fleet Employment – Out-Charters
Fleet Employment – Out-Charters1 900 800 700 Ship Days 600 500 400 300 200 100 - Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 (2) VLCC Days 81 - - - - - - - - - - - - Suezmax Days 182 74 - - - - - - - - - - - Aframax/LR2 Days 673 523 230 90
Slide 14: Q2-18 Outlook
Q2-18 Outlook Income Statement Item Q2-18 Outlook (expected changes from Q1-18) Increase of approximately 130 net revenue days in TNK, mainly due to full operations of the two in-chartered vessels that were delivered to us in Q1-18 and one additional calendar day in Q2-18 compared to Q1-18. Revenues
Slide 15: Consolidated Adjusted Statement of Loss
Consolidated Adjusted Statement of Loss Q1-18 (in thousands of U.S. dollars) Statement Item As Reported Appendix A Reclassification for As Adjusted Items (1) Realized Gain/ Loss on Derivatives Revenues 168,485 - - 168,485 Voyage expenses (79,993) - - (79,993) Vessel operating expenses (52,995) - - (
Slide 16: Drydock & Offhire Schedule
Drydock & Offhire Schedule Teekay Tankers March 31, 2018 (A) June 30, 2018 (E) September 30, 2018 (E) December 31, 2018 (E) Total 2018 Total Total Total Total Total Vessels Vessels Vessels Vessels Vessels Off-hire Days Off-hire Days Off-hire Days Off-hire Days Off-hire Days Segment Spot Tanker 4 74
Slide 17: Bringing Energy to the World
BRINGING ENERGY TO THE WORLD