Teekay Tankers Ltd. · NYSE:TNK
Teekay Tankers — Q3 2018 Earnings Presentation
18 slides from Teekay Tankers's earnings presentation, Nov 15, 2018
Slide 1: Teekay Tankers Q3-2018 Earnings Presentation
TEEKAY TANKERS Q3-2018 EARNINGS PRESENTATION November 15, 2018
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, among other things, statements regardi
Slide 3: Recent Highlights
Recent Highlights • Q3-18 Financial Results ○ Total cash flow from vessel operations(1) of $27.8 million and adjusted net loss(1) of $18.0 million, or $0.07 per share • Crude spot tanker rates strengthened counter-seasonally in Q3-18 and have continued to increase in Q4-18 to- date • Completed three
Slide 4: Crude Tanker Market Recovery From Q3-2018
Crude Tanker Market Recovery From Q3-2018 Tanker supply / demand balance has reached an inflection point Aframax Rates Suezmax Rates 5-year range 5-year avg. 2018 5-year range 5-year avg. 2018 55,000 55,000 50,000 50,000 45,000 45,000 40,000 40,000 35,000 35,000 USD / Day USD / Day 30,000 30,000 25,
Slide 5: Crude Oil Supply On The Rise
Crude Oil Supply On The Rise Both OPEC and non-OPEC contributing to cargo supply growth 44.4 OPEC + Russia Crude Oil Production • OPEC + Russia have collectively added 44.2 a net 1.4 mb/d of crude oil production to Million Barrels per Day 44.0 1.4 mb/d increase the market since Q2-2018 43.8 since Ap
Slide 6: Fleet Supply Growth Set to Ease
Fleet Supply Growth Set to Ease ~2% average annual tanker fleet growth projected 2018-2020 Total Tanker Fleet Growth • Low tanker fleet growth during 2018- Deliveries Scrapping Net Growth (% of Fleet) 2020 as the orderbook rolls off and as tanker scrapping remains high 50 10.0% 40 7.6% 8.0% • Shipya
Slide 7: Q4-18 Spot Earnings Update
Q4-18 Spot Earnings Update $19,900 20,000 $19,000 $17,000 $15,800 $ per day $13,700 $12,500 10,000 - 2 3 Suezmax 1 Aframax LR2 Q3-18 Actual Q4-18 to-date Suezmax Aframax LR2 Q4-18 spot ship 2,437 1,541 715 days available Q4-18 % booked 59% 54% 42% to-date (1) Combined average spot TCE rate including
Slide 8: TNK Offers Significant Upside in a Tanker Market Recovery
TNK Offers Significant Upside in a Tanker Market Recovery FCF1 Per Share Spot Rate Sensitivity2 $1.50 Current average spot rate3,4 FCF1 Per Share $1.00 $0.50 Q4-18 to-date4,5 Q3-184 $0.00 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Average Mid-Sized TCE4 (1) Free cash flow (FCF) represents net i
Slide 9: Appendix
APPENDIX 9
Slide 10: Debt Repayment Profile
Debt Repayment Profile $520 $480 $11 $440 $24 $400 $26 $360 $320 $ Millions $280 $240 $200 $392 $160 $17 $17 $120 $20 $22 $25 $80 $3 $13 $5 $102 $102 $40 $74 $25 $- Q4-18 2019 2020 2021 2022 Balloon Payments Repayments (Loans) Capital Leases Revolver Amort (1) Pro-forma debt repayment profile as at
Slide 11: Fleet Employment – In-Charter
Fleet Employment – In-Charter1 300 250 Ship Days 200 150 100 50 - Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Aframax Days 131 180 182 184 130 91 91 92 92 59 - Aframax Rates 19,922 18,000 18,000 18,000 19,973 22,750 22,750 22,750 22,750 22,750 - Aframax Da
Slide 12: Fleet Employment – Out-Charters
Fleet Employment – Out-Charters1 300 250 Ship Days 200 150 100 50 - Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Suezmax Days 153 90 91 35 - - - - - - - Aframax/LR2 Days 217 90 13 - - - - - - - - Suezmax Rates 17,400 17,500 17,500 17,500 - - - - - - - Afram
Slide 13: Q4-18 Outlook
Q4-18 Outlook Income Statement Item Q4-18 Outlook (expected changes from Q3-18) Decrease of approximately 95 net revenue days in TNK, mainly due to drydockings for various vessels and the redelivery of one in-chartered vessel to its owner in late Q3-18, partially offset by one in-chartered vessel wh
Slide 14: Consolidated Adjusted Statement of Loss
Consolidated Adjusted Statement of Loss Q3-18 vs Q2-18 (In thousands of U.S. dollars) Q3-2018 Q2-2018 Statement Item Comments (unaudited) (unaudited) Voyage revenues 175,796 171,659 Increase primarily due to higher spot TCE rates in Q3-18 compared to Q2-18. Voyage expenses (83,048) (86,933) Decrease
Slide 15: Consolidated Adjusted Statement of Loss
Consolidated Adjusted Statement of Loss Q3-18 (in thousands of U.S. dollars) Statement Item As Reported Appendix A Reclassification for As Adjusted Items (1) Realized Gain/ Loss on Derivatives Revenues 175,915 - (119) 175,796 Voyage expenses (83,048) - - (83,048) Vessel operating expenses (52,161) -
Slide 16: Consolidated Adjusted Statement of Loss
Consolidated Adjusted Statement of Loss Q2-18 (in thousands of U.S. dollars) Statement Item As Reported Appendix A Reclassification for As Adjusted Items (1) Realized Gain/ Loss on Derivatives Revenues 171,659 - - 171,659 Voyage expenses (86,933) - - (86,933) Vessel operating expenses (52,652) - - (
Slide 17: Drydock & Offhire Schedule
Drydock & Offhire Schedule Teekay Tankers March 31, 2018 (A) June 30, 2018 (A) September 30, 2018 (A) December 31, 2018 (E) Total 2018 Total 2019 Total Total Total Total Total Total Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Vessels Off-hire Segment Days Day
Slide 18: Bringing Energy to the World
BRINGING ENERGY TO THE WORLD