Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q1 2012 Earnings Presentation
12 slides from Teekay Tankers's earnings presentation, May 17, 2012
Slide 1: First Quarter 2012 Earnings Presentation
First Quarter 2012 Earnings Presentation May 17, 2012
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: Recent Highlights
Recent Highlights » Declared a dividend of $0.16 per share for Q1-12, up from $0.11 per share in the previous quarter • Payable on June 5th to all shareholders of record on May 29th » 55% of Q1-12 revenue days earned avg. of $21,000 per day on fixed-rate time-charters, above average spot TCE of $17,
Slide 4: Strategic Acquisition of 13 Tankers From Teekay Corp.
Strategic Acquisition of 13 Tankers From Teekay Corp. » Teekay Tankers will acquire 13 conventional tankers from Teekay Corporation for a total purchase price of approximately $455 million • 7 mid-size conventional oil tankers and 6 product tankers with average age of 7 years • 9 of the thirteen ves
Slide 5: Pro Forma Fleet Employment
Pro Forma Fleet Employment Name Class Y/Built Fixed-Rate Coverage (estimated) Erik Spirit Aframax 2005 Kareela Spirit Aframax 1999 Pre- Post- Nassau Spirit Aframax 1998 Transaction Transaction Ashkini Spirit Suezmax 2003 12 months Commencing Iskmati Spirit Suezmax 2003 Trading in July 1, 2012 29% 43
Slide 6: Q1-12 Dividend Calculation
Q1-12 Dividend Calculation (USD thousands, except shares outstanding and per share amounts) Three Months Ended March 31, 2012 (unaudited) Net income for the period 4,137 Add: Depreciation and amortization 10,738 Amortization of debt issuance costs 155 Less: Unrealized gain on interest rate swaps (1,
Slide 7: Q2-12 Dividend Outlook
Q2-12 Dividend Outlook » Average spot bookings in Q2 to date are down from the previous quarter (based on ~50% days booked) • Aframax: $9,500 per day (vs. $12,700 per day in Q1-12) • Suezmax: $19,500 per day (vs. $25,200 per day in Q1-12) Q2-2012 Estimated Suezmax Spot Rate Assumption (TCE per day)
Slide 8: Positive Tanker Fundamentals in Q1-2012
Positive Tanker Fundamentals in Q1-2012 1. Global oil production reached a record high of over 90.5 mb/d 2. OPEC crude supply grew by 1.0 mb/d to a 3.5 year high of over 31 mb/d • Replacement for non-OPEC supply outages (Sudan, Syria, North Sea) • Higher levels of OPEC production = longer voyage dis
Slide 9: Crude Tanker Market Outlook
Crude Tanker Market Outlook High OPEC supply leading to increased tonne-milesF Fas supply is dampened by scrapping 31.5 30 Large Tanker Scrapping** 100 OPEC Crude Prodn. * “Call on OPEC” crude Million Barrels per Day 31.0 25 90 80 2012 YTD scrapping Number of ships Suezmax TCE 30.5 ‘000 USD / Day 20
Slide 10: Product Tanker Market Outlook
Product Tanker Market Outlook Product tanker tonne-miles set to growF Fas LR2 fleet growth falls away LR2 Supply Outlook 40 Deliveries 35 Removals 30 Number of Vessels Expected Deliveries 25 Expected Removals Net Change 20 15 10 5 0 -5 -10 2008 2009 2010 2011E 2012E 2013E Source: CRS / Estimates » G
Slide 11: Strong Financial Position
Strong Financial Position » March 31, 2012 total liquidity of approximately $400 million, pro forma for 13-vessel acquisition » Average cost of debt remains at approximately 3.7% » Low principal repayments through 2016 » No financial covenant concerns Total Liquidity $500 ~ $400 ($ millions) $400 $4
Slide 12: 2012 Investor Day
2012 Investor 2012 Investor Day Day 12