This document provides an earnings presentation summary for Teekay Tankers for Q4 2023 and full year 2023. Some of the key highlights included strong financial results for 2023 with record adjusted net income and free cash flow generation. Teekay Tankers is now debt free with a net cash position. Spot tanker rates remained high in 2023 and have continued at firm levels in early 2024 supported by positive tanker market fundamentals. The presentation discusses factors impacting tanker trades in a tight market and how Teekay Tankers accomplished key goals in 2023 such as transforming their balance sheet, strong operational performance, and creating shareholder value.
Teekay Tankers presented its third quarter 2022 earnings. Key points include:
- Adjusted EBITDA of $91.8 million, up $33.4 million from last quarter due to higher spot tanker rates.
- Spot tanker rates remained elevated in the third quarter and are expected to stay high in the winter months.
- Changing trade patterns from the Ukraine conflict have increased mid-sized tanker demand and rates.
- Low levels of new tanker orders and an aging fleet imply minimal fleet growth through 2025, supporting tanker fundamentals.
Teekay Tankers presented its Q3-2020 earnings and provided an outlook. Key highlights included generating $46.2 million in adjusted EBITDA and $31.2 million in free cash flow for Q3. Spot tanker rates weakened in Q3 due to COVID-19 impacts but rates secured on fixed contracts averaged $37,600 per day. The tanker orderbook is at a 24-year low of 7% of the existing fleet, positioning the market for improved fundamentals. Teekay Tankers has $470 million in liquidity and aims to further reduce debt.
Teekay Tankers reported financial results for the first quarter of 2022, with adjusted EBITDA of $17.5 million, up from $9.7 million in the previous quarter. Spot tanker rates strengthened in late Q1 due to the Russian invasion of Ukraine, and have improved significantly in Q2 to date. The company completed $288 million in refinancings in Q1, increasing liquidity. With 46 vessels trading on the spot market and low fleet growth expected, the company is well positioned to benefit from a strengthening tanker market.
Teekay Tankers held an earnings presentation to discuss their Q4-2019 results and outlook. Some key points include:
- Q4-2019 adjusted EBITDA and adjusted net income significantly increased compared to Q3-2019 due to higher tanker rates.
- Over $100 million in asset sales were completed in Q4-2019 to strengthen the balance sheet.
- Spot tanker rates in Q4-2019 were the highest in four years but near-term weakness is expected due to coronavirus and returning COSCO vessels.
- The presentation provided sensitivity analyses showing substantial upside to earnings and cash flow at sustained high tanker rates.
- Teekay Tankers reported strong financial results in Q2 2020, generating $125.8 million in free cash flow and reducing net debt by $181 million. Spot tanker rates remained high in Q2 driven by oil trade and floating storage, but have weakened in Q3.
- 13 of Teekay Tankers' vessels are currently fixed at an average rate of $39,100 per day, providing earnings visibility. The company has no debt maturities until 2023 after refinancing four vessels.
- Tanker demand is expected to gradually improve in the second half of 2020 as OPEC+ returns supply and refinery throughput increases, while the unwinding of floating storage returns ships to the
Teekay Tankers presented its Q1-2019 earnings and outlook for Q2-2019. Key highlights included adjusted EBITDA of $63.4 million for Q1, up slightly from Q4-2018. Recent financing transactions increased liquidity. Spot tanker rates have remained resilient despite near-term headwinds, though Q2 seasonally weaker. Tanker demand is expected to increase in the second half of 2019 due to IMO 2020 and increased oil demand and trade flows. The orderbook remains low relative to the existing fleet, keeping fleet growth constrained over the extended period.
- Teekay Tankers reported strong financial results in Q2 2019, with adjusted EBITDA of $36.2 million, up from $16.6 million in Q2 2018. However, it reported an adjusted net loss of $12.1 million.
- Tanker market fundamentals were improving in Q2 2019 compared to the prior year, with higher tanker rates, though seasonal weakness affected Q3 2019. Rates are expected to increase later in the year.
- The company has a significant portion of its fleet employed on short-term charters, providing exposure to improving spot tanker rates. It expects revenues and depreciation to increase in Q3 2019.
Teekay Tankers reported its Q4-2016 earnings. Key highlights included generating adjusted income of $5.1 million and free cash flow of $34.2 million. The dividend was maintained at $0.03 per share. Net debt to capitalization was reduced from 50% to 47%. Spot tanker rates increased in Q4-2016 due to seasonal factors and increased oil exports, though have since softened. Teekay Tankers expects revenues to decrease in Q1-2017 due to fewer spot revenue days from vessel sales and employment changes, while expenses are also expected to decrease from timing of repairs and maintenance.
Teekay Tankers reported financial results for Q2 2018 and provided an outlook for Q3 2018. Key highlights include:
- Generated $16.6 million in cash flow from vessel operations and an adjusted net loss of $28.7 million in Q2 2018.
- Signed term sheets for $110 million in additional liquidity through sale-leaseback and working capital loan financings.
- Secured a one-year time charter contract expected to generate $6.4 million in fixed revenue.
- Spot tanker rates were lower in Q2 2018 due to OPEC cuts but an inflection point is expected later in 2018 as tanker market fundamentals improve.
Teekay Tankers reported its highest quarterly results in more than 10 years for Q1-2020. The company generated over $140 million in free cash flow and reduced its net debt by over 20% from the previous quarter. Spot rates for mid-size tankers were the highest since 2008 due to factors like floating storage demand related to the oil price war between Russia and Saudi Arabia. The company secured additional fixed-rate time charter contracts at attractive rates. While medium-term uncertainty remains, Teekay Tankers is well positioned with a low fleet growth outlook and improving financial strength.
Teekay Corporation Fourth Quarter and Business Outlook 2015 Presentation
Teekay Corporation held a presentation on its Q4-2015 earnings and business outlook. It reported generating $401.4 million in cash flow in Q4-2015, up 30% year-over-year. For fiscal year 2015, it generated $1.4 billion in cash flow, up 35% over 2014. Teekay temporarily reduced its dividend to $0.055 per share to allow its two MLP subsidiaries, Teekay Offshore Partners and Teekay LNG Partners, to retain cash flows of around $450 million annually to fund growth projects without issuing new equity. This will increase the subsidiaries' distributable cash flow per unit in the future once projects are completed. Teekay
Teekay Tankers Ltd. Fourth Quarter and Fiscal 2015 Earnings Presentation
Teekay Tankers reported strong financial results in Q4-2015 compared to Q4-2014. The company generated adjusted net income of $48.5 million versus $18.6 million in the prior year quarter. Free cash flow increased to $74.0 million from $31.7 million. Looking ahead, tanker demand fundamentals are expected to remain strong in 2016, driven by oil demand growth and fleet utilization. The company recently acquired vessels and expanded its presence in the US Gulf to capitalize on growing oil trade in the region.
The presentation provides an outlook for Teekay Tankers' Q1 2022 financial results. Net revenues are expected to decrease due to fewer available spot shipping days from vessel sales and more scheduled drydocking days. Time-charter hire expenses will increase slightly due to a new in-chartered vessel. Depreciation expenses will decrease as a result of vessel sales. General and administrative costs will be up modestly. Overall, financial results are forecasted to decline compared to Q4 2021 due to reduced spot shipping activity. However, the company maintains a strong liquidity position and outlook for tanker market recovery remains positive.
Teekay Tankers presented its third quarter 2021 earnings. Key highlights included:
- Adjusted EBITDA of ($15.8) million, down from the previous quarter, due to weak spot tanker rates.
- Pro forma liquidity of $209 million providing financial resilience.
- Tanker market fundamentals remain positive with an expected recovery, supported by increasing oil demand and tight fleet supply.
- Spot tanker rates improved in early Q4 but remained weak in Q3 due to oil demand impacts from COVID variants and OPEC+ supply cuts.
- Teekay Tankers reported an adjusted net loss of $40.7 million for Q4-2020, compared to an adjusted net income of $3.1 million in Q3-2020. This was primarily due to lower spot tanker rates in Q4-2020.
- The company reduced its net debt by $419 million in 2020 to $510 million through strong cash flows and asset sales. It had liquidity of $373 million as of December 31, 2020.
- Spot tanker rates remained weak in Q4-2020 due to the second wave of COVID-19 and oversupply of tankers returning from floating storage. Rates are expected to improve in the second half of 2021 as oil
Teekay Tankers presented its third quarter 2022 earnings. Key points include:
- Adjusted EBITDA of $91.8 million, up $33.4 million from last quarter due to higher spot tanker rates.
- Spot tanker rates remained elevated in the third quarter and are expected to stay high in the winter months.
- Changing trade patterns from the Ukraine conflict have increased mid-sized tanker demand and rates.
- Low levels of new tanker orders and an aging fleet imply minimal fleet growth through 2025, supporting tanker fundamentals.
Teekay Tankers presented its Q3-2020 earnings and provided an outlook. Key highlights included generating $46.2 million in adjusted EBITDA and $31.2 million in free cash flow for Q3. Spot tanker rates weakened in Q3 due to COVID-19 impacts but rates secured on fixed contracts averaged $37,600 per day. The tanker orderbook is at a 24-year low of 7% of the existing fleet, positioning the market for improved fundamentals. Teekay Tankers has $470 million in liquidity and aims to further reduce debt.
Teekay Tankers reported financial results for the first quarter of 2022, with adjusted EBITDA of $17.5 million, up from $9.7 million in the previous quarter. Spot tanker rates strengthened in late Q1 due to the Russian invasion of Ukraine, and have improved significantly in Q2 to date. The company completed $288 million in refinancings in Q1, increasing liquidity. With 46 vessels trading on the spot market and low fleet growth expected, the company is well positioned to benefit from a strengthening tanker market.
Teekay Tankers held an earnings presentation to discuss their Q4-2019 results and outlook. Some key points include:
- Q4-2019 adjusted EBITDA and adjusted net income significantly increased compared to Q3-2019 due to higher tanker rates.
- Over $100 million in asset sales were completed in Q4-2019 to strengthen the balance sheet.
- Spot tanker rates in Q4-2019 were the highest in four years but near-term weakness is expected due to coronavirus and returning COSCO vessels.
- The presentation provided sensitivity analyses showing substantial upside to earnings and cash flow at sustained high tanker rates.
- Teekay Tankers reported strong financial results in Q2 2020, generating $125.8 million in free cash flow and reducing net debt by $181 million. Spot tanker rates remained high in Q2 driven by oil trade and floating storage, but have weakened in Q3.
- 13 of Teekay Tankers' vessels are currently fixed at an average rate of $39,100 per day, providing earnings visibility. The company has no debt maturities until 2023 after refinancing four vessels.
- Tanker demand is expected to gradually improve in the second half of 2020 as OPEC+ returns supply and refinery throughput increases, while the unwinding of floating storage returns ships to the
Teekay Tankers presented its Q1-2019 earnings and outlook for Q2-2019. Key highlights included adjusted EBITDA of $63.4 million for Q1, up slightly from Q4-2018. Recent financing transactions increased liquidity. Spot tanker rates have remained resilient despite near-term headwinds, though Q2 seasonally weaker. Tanker demand is expected to increase in the second half of 2019 due to IMO 2020 and increased oil demand and trade flows. The orderbook remains low relative to the existing fleet, keeping fleet growth constrained over the extended period.
- Teekay Tankers reported strong financial results in Q2 2019, with adjusted EBITDA of $36.2 million, up from $16.6 million in Q2 2018. However, it reported an adjusted net loss of $12.1 million.
- Tanker market fundamentals were improving in Q2 2019 compared to the prior year, with higher tanker rates, though seasonal weakness affected Q3 2019. Rates are expected to increase later in the year.
- The company has a significant portion of its fleet employed on short-term charters, providing exposure to improving spot tanker rates. It expects revenues and depreciation to increase in Q3 2019.
Teekay Tankers reported its Q4-2016 earnings. Key highlights included generating adjusted income of $5.1 million and free cash flow of $34.2 million. The dividend was maintained at $0.03 per share. Net debt to capitalization was reduced from 50% to 47%. Spot tanker rates increased in Q4-2016 due to seasonal factors and increased oil exports, though have since softened. Teekay Tankers expects revenues to decrease in Q1-2017 due to fewer spot revenue days from vessel sales and employment changes, while expenses are also expected to decrease from timing of repairs and maintenance.
Teekay Tankers reported financial results for Q2 2018 and provided an outlook for Q3 2018. Key highlights include:
- Generated $16.6 million in cash flow from vessel operations and an adjusted net loss of $28.7 million in Q2 2018.
- Signed term sheets for $110 million in additional liquidity through sale-leaseback and working capital loan financings.
- Secured a one-year time charter contract expected to generate $6.4 million in fixed revenue.
- Spot tanker rates were lower in Q2 2018 due to OPEC cuts but an inflection point is expected later in 2018 as tanker market fundamentals improve.
Teekay Tankers reported its highest quarterly results in more than 10 years for Q1-2020. The company generated over $140 million in free cash flow and reduced its net debt by over 20% from the previous quarter. Spot rates for mid-size tankers were the highest since 2008 due to factors like floating storage demand related to the oil price war between Russia and Saudi Arabia. The company secured additional fixed-rate time charter contracts at attractive rates. While medium-term uncertainty remains, Teekay Tankers is well positioned with a low fleet growth outlook and improving financial strength.
Teekay Corporation Fourth Quarter and Business Outlook 2015 PresentationTeekay Corporation
Teekay Corporation held a presentation on its Q4-2015 earnings and business outlook. It reported generating $401.4 million in cash flow in Q4-2015, up 30% year-over-year. For fiscal year 2015, it generated $1.4 billion in cash flow, up 35% over 2014. Teekay temporarily reduced its dividend to $0.055 per share to allow its two MLP subsidiaries, Teekay Offshore Partners and Teekay LNG Partners, to retain cash flows of around $450 million annually to fund growth projects without issuing new equity. This will increase the subsidiaries' distributable cash flow per unit in the future once projects are completed. Teekay
Teekay Tankers reported strong financial results in Q4-2015 compared to Q4-2014. The company generated adjusted net income of $48.5 million versus $18.6 million in the prior year quarter. Free cash flow increased to $74.0 million from $31.7 million. Looking ahead, tanker demand fundamentals are expected to remain strong in 2016, driven by oil demand growth and fleet utilization. The company recently acquired vessels and expanded its presence in the US Gulf to capitalize on growing oil trade in the region.
Teekay Tankers reported its Q3-2018 earnings and provided an outlook for Q4-2018. Some key points:
- Q3-2018 revenues decreased from the prior quarter due to fewer available ship days from drydockings and vessel redeliveries. Spot tanker rates have increased since Q3-2018.
- Expenses are expected to increase in Q4-2018 due to planned maintenance and interest costs associated with recent financing transactions.
- The company completed three financings in Q3-2018 that added approximately $100 million in liquidity.
Teekay Corporation reported its Q2-2018 earnings. Some key highlights:
- Consolidated cash flow from vessel operations was $164.2 million. Adjusted net loss was $21.6 million.
- Teekay Parent secured a one-year charter extension for the Banff FPSO to August 2019. Cash flow from its three directly-owned FPSOs provides upside exposure to rising oil prices.
- Teekay LNG continues executing its portfolio of growth projects delivering through 2020, which are expected to increase annual cash flow by $240 million.
- Teekay Tankers signed term sheets for $110 million in additional liquidity to improve its financial position as tanker rates are expected
Teekay Tankers reported strong financial results in Q4 2018, with cash flow from vessel operations of $62.3 million, up from $27.8 million in Q3 2018. Spot tanker rates hit three-year highs in Q4 2018 due to seasonal volatility and a structural shift in fundamentals. The company completed $40 million in financing transactions and signed a term sheet for a $25 million sale-leaseback transaction. While OPEC supply cuts may slow tanker demand in the near term, non-OPEC production growth led by the US is expected to increase tanker demand in the second half of 2019 and into 2020. Tanker fleet utilization is forecast to strengthen due to demand growth
- Teekay Corporation reported financial results for the fourth quarter and full year of 2021. Q4 results were stronger than Q3 due to a modest improvement in spot tanker rates. However, full year 2021 results were lower than 2020 due to a weak tanker market.
- Teekay completed the sale of its interests in Teekay LNG to Stonepeak, generating $641 million in proceeds. Teekay is now largely debt free with a net cash position over $300 million.
- Looking ahead, Teekay expects a decrease in Q1 2022 adjusted net income versus Q4 2021 primarily due to fewer spot tanker days and the sale of its LNG interests. However, tanker
Teekay Tankers reported a Q3-17 adjusted net loss of $14.0 million and cash flow from vessel operations of $20.6 million. It declared a $0.03 dividend and entered agreements to sell two older tankers. It also announced a $45 million share repurchase program. The presentation discussed the strategic benefits of Teekay Tankers' proposed merger with Tanker Investments Ltd, including modernizing its fleet and establishing a market-leading presence. It noted supportive factors for tanker rates such as easing fleet growth and strong oil demand and exports. Spot tanker rates have improved in Q4 so far.
Similar to Teekay Tankers Q4-23 and Annual 2023 Earnings Presentation (20)
Teekay Corporation reported financial results for the first quarter of 2022. GAAP net income was $0.9 million compared to an adjusted net loss of $0.5 million. Total adjusted EBITDA was $41.8 million. The sale of the Teekay Gas Business in January 2022 decreased earnings, which was partially offset by higher earnings from Teekay Tankers due to increased spot tanker rates and lower costs. Teekay also expects to largely offset the remaining costs of decommissioning the Hummingbird FPSO unit through its upcoming sale.
Teekay Tankers reported financial results for Q1-2018 and provided an outlook for Q2-2018. Key points include:
- Generated $22.3 million in cash flow from vessel operations and an adjusted net loss of $22.0 million in Q1-2018.
- Signed a term sheet for a sale-leaseback of 7 tankers expected to improve liquidity by $36 million.
- Spot tanker rates were at cyclical lows in Q1-2018 but fundamentals point to improved rates in late 2018/2019 as fleet growth slows and oil demand increases.
- Q2-2018 is expected to see higher revenues from more operating days and a rise in expenses,
- Teekay Tankers reported an adjusted net loss of $5.9 million for Q4-2017 and generated $32.1 million in cash flow from vessel operations.
- In Q4-2017, Teekay Tankers completed a strategic merger with Tanker Investments Ltd, increasing its fleet by 18 vessels, and completed a $270 million debt refinancing for 14 former-TIL vessels.
- While tanker rates are currently at cyclical lows, fundamentals including slowing fleet growth and rebalancing of the oil market signal a tanker market recovery in late-2018.
Teekay Tankers reported an adjusted net loss of $7.1 million in Q2-2017. It declared a $0.03 per share dividend. The company agreed to a share-for-share merger with Tanker Investments Ltd., which owns 18 mid-sized tankers, to modernize its fleet and realize cost synergies. The merger is expected to be 10% accretive to earnings per share and strengthen the balance sheet by decreasing leverage and increasing liquidity by $100 million. Spot tanker rates were at 4-year lows in Q2-2017 due to high fleet growth and OPEC supply cuts, but a recovery is expected in late 2018 as scrapping increases and oil supply
The proposed merger between Teekay Tankers Ltd. (TNK) and Tanker Investments Ltd. (TIL) will create the largest publicly-listed mid-sized tanker company. The merger is expected to be accretive to TNK's earnings per share, strengthen its balance sheet and liquidity position, reduce its average fleet age, and lower its cash breakeven rates. The combined fleet will total 62 vessels consisting of tankers from both companies operating under the Teekay brand.
Teekay Tankers reported financial results for Q1-2017 and provided an outlook for Q2-2017. Key highlights include:
- Generated $7.0 million in adjusted net income and $34.4 million in free cash flow for Q1-2017.
- Spot tanker rates were lower in Q1 compared to previous years due to high fleet growth and OPEC supply cuts.
- Signed a sale-leaseback deal for 4 Suezmax tankers that will increase liquidity by $30 million.
- Expect revenues to decrease in Q2 due to the redelivery of some in-chartered vessels, while expenses are forecast to be lower.
Teekay Tankers reported adjusted net loss of $1.5 million for Q3-2016. Spot tanker rates reached 3-year lows in Q3 due to seasonal factors but have improved in Q4 with stronger oil demand and returning oil supply. While fleet growth remains elevated in 2017, fundamentals point to a more positive tanker market in 2018 with moderating fleet growth and increasing oil supply and demand.
Teekay Tankers reported its Q2-2016 earnings. Some key highlights include:
- Generated $31.6 million in adjusted net income and $59.6 million in free cash flow.
- Paid a dividend of $0.06 per share, representing 30% of adjusted net income.
- Sold a non-core product tanker for $14 million, with delivery expected in mid-August.
- Increased fixed-rate charter coverage to 30% for the next 12 months.
The document is the first quarter 2016 earnings presentation for Teekay Tankers. It discusses Teekay Tankers' financial results for Q1 2016 including generating $46 million in adjusted net income. It also discusses positive tanker market fundamentals expected through 2016 due to factors like rising oil demand and OPEC supply. The presentation provides an outlook on tanker supply/demand trends and notes earnings remained strong in Q1 despite some negative impacts from weather and refinery maintenance.
The document shows spot rates in USD per day for Suezmax, Aframax, and LR2 tankers from 2015 to 2017 by quarter according to Clarksons data. Suezmax rates increased from 2015 to 2016 but declined in 2017. Aframax rates declined from 2015 to 2016 but increased in 2017. LR2 rates increased each year from 2015 to 2017.
Teekay Tankers reported strong financial results for Q3 2015, with adjusted net income of $40.3 million compared to $2.6 million in Q3 2014. The company generated $59.4 million in free cash flow for the quarter. Teekay Tankers recently acquired 12 Suezmax tankers and a ship-to-ship transfer business, expanding its fleet. Spot tanker rates were higher in Q3 2015 than the previous year, but softened in August and September due to seasonal maintenance, though remained strong historically. The company expects rates and cash flow to increase in Q4 2015 and Q1 2016.
Teekay Tankers acquired 12 Suezmax tankers from Principal Maritime in late Q3-2015 and early Q4-2015. Eight of the vessels are undergoing drydocking, including modifications to improve fuel efficiency. The acquisitions were financed and have been accretive to earnings and free cash flow per share. Spot tanker rates remained strong in Q3-2015 compared to historical levels, though softened seasonally, and are expected to increase further in Q4-2015 and Q1-2016 due to higher oil demand and potential weather delays.
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2. This presentation contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended. All statements included in this report, other than statements of historical fact, are forward-looking statements.
When used in this report, the words "expect", "believe", "anticipate", "plan", "intend", "estimate", "may", "will" or similar words are intended to identify forward-
looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are
qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date hereof and are based on
current expectations and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from such forward-looking
statements. Forward-looking statements contained in this release include, among others, statements regarding: the timing of and our expectations regarding the
repurchase of certain vessels following exercise of related purchase options; estimated changes in global oil demand and supply, and the various contributing
factors thereto and impacts thereof; geopolitical events and the impact thereof on our industry and our business; management's view of the strength of the tanker
market and the tanker rate environment, and the Company's ability to benefit from strong spot tanker rates, generate significant free cash flow and create
shareholder value; crude oil and refined product tanker market fundamentals; forecasted changes in global oil supply and the factors contributing thereto; the
outlook for the global economy, driven by various factors; forecasts of worldwide tanker fleet growth or contraction, vessel scrapping levels, and newbuilding
tanker orders, including the factors contributing thereto and the timing thereof, and the Company’s general outlook on tanker supply and demand fundamentals;
management’s expectation regarding free cash flow and other financial statement items; anticipated drydock, equipment installation and off-hire schedules; and
the Company's liquidity and market position.
The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and
uncertainties, and that should be considered in evaluating any such statement: potential changes to or termination of the Company's capital allocation plan or
dividend policy; the declaration by the Company's Board of Directors of any future cash dividends on the Company's common shares; the Company's available
cash and the levels of its capital needs; changes in the Company's liquidity and financial leverage; changes in tanker rates, including spot tanker market rate
fluctuations, and in oil prices; changes in the production of, or demand for, oil or refined products and for tankers; changes in trading patterns affecting overall
vessel tonnage requirements; non-OPEC+ and OPEC+ production and supply levels; the status of Russia's invasion of Ukraine and related sanctions, and import
and other restrictions; the impact of geopolitical tensions and conflicts, including the Hamas-Israel war, and changes in global economic conditions; greater or
less than anticipated levels of tanker newbuilding orders and deliveries and greater or less than anticipated rates of tanker scrapping; the potential for early
termination of charter contracts on existing vessels in the Company's fleet; the inability of charterers to make future charter payments; delays of vessel deliveries;
changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations and the impact of such changes; increased
costs; and other factors discussed in Teekay Tankers’ filings from time to time with the United States Securities and Exchange Commission, including its Annual
Report on Form 20-F for the fiscal year ended December 31, 2022. The Company expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change
in events, conditions or circumstances on which any such statement is based.
Forward-Looking
Statements
2
3. 3
Recent Highlights
Financial Market Activity
Adjusted net income(1) of $99.5 million, or $2.91 per
share, compared to $76.6 million, or $2.24 per share in
Q3-23
2023 Adjusted net income(1) of $500.5 million, or $14.65
per share, compared to adjusted net income of $217.1
million, or $6.39 per share, in 2022
For every $5,000 above TNK’s FCF(2) breakeven of
approximately $16,000 per day, expected to generate
$2.50(3) of annual FCF per share
Agreed to repurchase eight vessels currently on sale-
leaseback arrangements for $137 million. After
completion in Q1-24, TNK is expected to be debt free
Declared fixed quarterly dividend of $0.25 per share
Highest annual average mid-size tanker spot rates in
TNK’s history during 2023
Spot rates remain firm at the start of 2024 with
continued volatility
Positive tanker supply and demand fundamentals
remain intact and signal ongoing market strength over
the next 2 to 3 years
Sold two 2004-built Aframaxes for total proceeds of
$46.5 million, recording a combined gain on sale of
approximately $21.9 million
(1) These are non-GAAP financial measures. Please see Teekay Tankers’ Q4-23 earnings release for definitions and reconciliations to the comparable GAAP measures.
(2) Free cash flow (FCF) represents net income, plus depreciation and amortization, unrealized losses from derivatives, non-cash items, FCF from equity-accounted
investments and any write-offs or other non-recurring items, less unrealized gains from derivatives, other non-cash items, dry-docking expenditures and other capital
expenditures. This is a non-GAAP financial measure. See appendix slide 17 for the reconciliation to the comparable GAAP measure.
(3) Annualized FCF for 12 months ending December 31, 2024 assuming 50 vessels continue to operate in the spot market.
4. 0
5
10
15
20
25
30
35
40
45
50
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
‘000
USD
/
Day
TNK’s Annual Mid-Size Tanker Spot Rates
4
2023 Market Strength
Continuing in 2024
0
10
20
30
40
50
60
70
80
‘000
USD
/
Day
TNK’s Monthly Mid-Size Tanker Spot Rates
Suezmax Aframax Fleetwide FCF Breakeven
Source: Internal
Feb’24 figures reflect 77% of days booked for Aframax
and 82% of days booked for Suezmax
Source: Internal
Average mid-size tanker spot rates
during 2023 were the highest since
TNK’s inception:
• Strong oil demand growth of 1.9 mb/d
as China ended COVID lockdowns
• Increase in crude oil exports from
non-OPEC+ countries, including
record high US crude oil exports
• Stretching of the mid-size tanker fleet
due to the EU ban on Russian crude
oil imports and the subsequent
rerouting of Russian volumes on long-
haul trades to India and China
• Low levels of tanker fleet growth
Spot rates have remained firm at the
start of 2024 due to a combination of
strong underlying fundamentals,
seasonal factors, and longer voyages
due to regional disruptions
5. 55,900
67,300
37,000
44,500
50,100 50,900
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Suezmax Aframax / LR2
Rate
($/day)
Spot Rates
Q1-2023 Q4-2023 Q1-2024 To-Date
Q1-24 To-Date Spot
Rates
Currently eight vessels chartered-in
at an average rate of $25,400 per
day, mark-to-market value of
approximately $60 million(2)
Suezmax Aframax / LR2(1)
Q1-24 spot ship days
available
2,245 2,130
Q1-24 % spot ship
days booked to-date
68% 67%
5
(1)
(1) Earnings and percentage booked to-date include Aframax RSA, non-RSA voyage charters and full-service lightering (FSL) for all Aframax and LR2 vessels
whether trading in the clean or dirty spot market.
(2) Mark-to-market is the present value of difference between TNK’s chartered-in rates and the current average published time charter rates for similar periods
from Clarksons, Braemar, Galbraiths and Poten & Partners on February 16, 2024, multiplied by the remaining days of each chartered-in agreement,
including extension option on one Aframax in 2024.
6. Underlying
Fundamentals
Remain Very Strong
6
Source: EIA
Robust Global Oil Demand Growth Low Tanker Fleet Growth
Tanker Tonne-Mile Demand Set to Outstrip Fleet Supply Growth in 2024 / 25
88
90
92
94
96
98
100
102
104
2019 2020 2021 2022 2023 2024 2025
MB/D
0
1
2
3
4
5
6
7
8
2022 2023 2024 2025
%
Growth
Tonne-Mile Demand Growth Fleet Supply Growth
-4%
-2%
0%
2%
4%
6%
8%
10%
-20
-10
0
10
20
30
40
50
2019 2020 2021 2022 2023 2024 2025
Million
DWT
Deliveries Scrapping Net Growth (RHS)
Source: Clarksons / Internal Estimates
Source: Clarksons / Internal Estimates
Global oil demand is expected to
grow by 1.4 mb/d in 2024 and 1.3
mb/d in 2025
Extremely low levels of tanker fleet
growth expected in both 2024 and
2025 due to a small orderbook and
an aging tanker fleet:
• 9 mdwt of new tankers expected to
deliver in 2024, the lowest level of
annual deliveries since 1997
• Tanker orderbook is 7% of the fleet,
delivering over the next 3.5 years
• Tanker scrapping / removals
expected to increase with 23% of the
mid-size tanker fleet aged 20 years
or older by the end of 2025
Compounding impact of year-on-
year tonne-mile demand growth
outstripping fleet supply growth
supports high fleet utilization and
spot rates
7. 7
Events Impacting Tanker Trades, Creating Volatility in an Already Tight Market
Changing seaborne trade increases complexity and supply chain inefficiency, creating additional tanker demand
Trans Mountain Pipeline
590 kb/d pipeline expansion will
provide a new source of Aframax
demand from the second half of 2024
with up to 30-35 loadings per month.
Panama Canal Delays
While not a major transit point for crude
oil tankers, the inability to transit the
Panama Canal limits tanker owners’
ability to reposition ships between the
Pacific and Atlantic Basins
Red Sea Attacks
Diversion of vessels via the Cape of Good Hope adds
significantly to tanker tonne-mile demand
(50% reduction in Bab el-Mandab tanker transits vs. 2023 avg.)
Suezmax Deviation Example:
Iraq-Greece via Suez Canal (4,000 nm, 13 days @ 12.5 kts)
Iraq-Greece via CoGH (12,000 nm, 40 days @ 12.5 kts)
Americas Oil Supply Growth
>1 mb/d of crude oil supply
growth from the USA, Brazil,
Guyana, with volumes heading
primarily to Europe and Asia
Russian Crude Oil Exports
Mid-size tanker demand should
continue to benefit from long-haul
Russian crude oil flows to India and
China, primarily via the shadow
fleet. Red Sea diversions could add
further to tonne-miles
8. 8
TNK’s 2023 Key
Accomplishments
Record earnings and cash flow
generation
Balance Sheet Transformed
Strong Operational
Performance
Creating value for our
Shareholders
Best Financial Year in TNK’s History
• Adjusted net income of $500.5 million(1)
• Generated $575.2 million of FCF(2)
Net Debt Free
• Net Cash of $226.3 million(3) at end Q4-23 vs. Net
Debt of $345.4 million(3) at end Q4-22
• 19 vessels repurchased from sale leaseback
financings
Operational Excellence
• 99.8% Fleet availability
• 0 Loss Time Injury
Returning Capital to Shareholders
• Fixed quarterly dividend of $0.25 / share
• $1.00 / share special dividend in Q1-23
• Established $100 million share buyback program
Financial Flexibility
• Refinanced 19 vessels into new $350 million
revolving credit facility
• Expect to be debt free with 23 unencumbered
vessels by end Q1-24
Lucrative In-Charters
• One 7-year chartered-in newbuild delivered
• Extended four chartered-in vessels
• 8-vessel time chartered-in portfolio average rate of
$25,400 is well below current spot market rates
(1) This is a non-GAAP financial measures. Please see Teekay Tankers’ Q4-23 earnings release for definitions and reconciliations to the comparable GAAP measures.
(2) Free cash flow (FCF) represents net income, plus depreciation and amortization, unrealized losses from derivatives, non-cash items, FCF from equity-accounted investments and any
write-offs or other non-recurring items, less unrealized gains from derivatives, other non-cash items, dry-docking expenditures and other capital expenditures. This is a non-GAAP
financial measure. See appendix slide 17 for the reconciliation to the comparable GAAP measure.
(3) Net cash and net debt are non-GAAP financial measures and represent (a) cash and cash equivalents and restricted cash, less (b) short-term debt, current and long-term debt and
current and long-term obligations related to finance leases.
(4) Total shareholder return based on the change in share price from January 3, 2023 ($28.70) to February 21, 2024 ($57.94) plus a total of $1.00 per share of fixed quarterly dividends
and a $1.00 per share special dividend paid for Q1-23.
Since the beginning of 2023, total shareholder return of 109%(4)
9. 9
Creating Shareholder
Value
Continuing to create shareholder
value in strong tanker market as
98% of the 51-vessel fleet trading in
the strong spot market
• Based on LTM average realized
spot rates, annual FCF(1)(2)
forecast is approximately $16.30
per share, resulting in a FCF yield
of approximately 28%(3)
(1) Free cash flow (FCF) represents net income, plus depreciation and amortization, unrealized losses from derivatives, non-cash items, FCF from equity-accounted investments
and any write-offs or other non-recurring items, less unrealized gains from derivatives, other non-cash items, dry-docking expenditures and other capital expenditures. This is
a non-GAAP financial measure. See appendix slide 17 for the reconciliation to the comparable GAAP measure.
(2) For 12 months ending December 31, 2024 assuming 50 vessels operating in the spot market.
(3) Free Cash Flow (FCF) yield is equal to forecasted annual FCF divided by TNK’s closing share price on February 21, 2024 of $57.94.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
$22.00
$24.00
$26.00
Annualized
FCF
Yield
Annual
FCF/Share
FCF Per Share Spot Rate Sensitivity Next 12 Months (1,2,3)
Average Mid-size Tanker Spot Rates
Last 12 month Avg Spot Rate
Q1-24 Avg to-date Spot rate
11. 5
137
0
50
100
150
200
250
300
2024 2025 2026 2027
$
Millions
Debt Repayment Profile
Scheduled Repayments incl. Capital Leases Declared Sale Leaseback Purchase Options
11
Debt Repayment
Profile
Gave notice to exercise repurchase
options on remaining eight vessels
in sale-leaseback arrangements for
$137 million
• The vessels are expected to be
repurchased by end Q1-24
• TNK will be debt free after the
repurchases
14. Q1-24 Outlook
(1) Changes described are after adjusting Q4-23 for items included in Appendix A of Teekay Tankers’ Q4-23 Earnings Release (see slide 16 of this earnings presentation for the
Consolidated Adjusted Line Items for Q4-23).
(2) Net revenues is a non-GAAP financial measure. Please refer to the Teekay Tankers Q4-23 Earnings Release for a definition and reconciliation of this term. 14
Q4-23 in
thousands
adjusted basis(1)
Q1-24 Outlook(1)
Income Statement
Item
(expected changes from Q4-23)
Net revenues (2)
194,463
Decrease of approximately 115 net revenue days, consisting of a decrease of 60 fixed days and a decrease
of 55 spot days, primarily due to the redelivery of one tanker from out-charter contract in the first half of Q1-
24, the sale of two tankers at the end of Q4-23 and during the first half of Q1-24, as well as fewer calendar
days, partially offset by fewer off-hire days in Q1-24 compared to Q4-23.
Refer to Slide 5 for Q1-24 booked to-date spot tanker rates.
Refer to Slide 13 for a summary of fleet out-charter employment.
Vessel operating expenses (36,612)
Increase of approximately $1 million, primarily due to the timing of maintenance activities, partially offset by
the sale of two tankers at the end of Q4-23 and during the first half of Q1-24.
Depreciation and amortization (24,627)
Decrease of approximately $1 million, primarily due to the sale of one tanker and the classification of another
tanker as held-for-sale in Q4-23.
Interest income 3,058
Increase of approximately $2.5 million, primarily due to interest income earned on expected higher cash
balances during Q1-24.
15. Adjusted Net
Income(1)
Q4-23 vs Q3-23
(1) Refer to slide 16 for the Q4-23 reconciliations of non-GAAP financial measures to the most directly comparable financial measures under United States generally accepted
accounting principles (GAAP). For the Q3-23 reconciliation, please refer to the Q3-23 earnings presentation.
(2) Net revenues is a non-GAAP financial measure. Please refer to the Teekay Tankers Q4-23 Earnings Release for a definition and reconciliation of this term. 15
(In thousands of U.S. dollars)
Statement Item
Q4-2023
(unaudited)
Q3-2023
(unaudited)
Variance Comments
Revenues 313,291 285,858 27,433
Voyage expenses (118,828) (113,274) (5,554)
Net revenues
(2)
194,463 172,584 21,879 Increase primarily due to higher overall spot TCE rates, partially offset by more scheduled dry-
dockings in Q4-23.
Vessel operating expenses (36,612) (36,366) (246)
Time-charter hire expenses (19,822) (19,378) (444)
Depreciation and amortization (24,627) (24,565) (62)
General and administrative expenses (10,849) (10,700) (149)
Income from operations 102,553 81,575 20,978
Interest expense (4,141) (6,440) 2,299 Decrease primarily due to lower interest payments related to the repurchase of four sale-leaseback
vessels at the end of Q3-23 and lower loan cost amortization resulting from the write-off of
capitalized financing costs related to the same repurchase of four sale-leaseback vessels, as well
as the voluntary cancellation of one revolving credit facility in Q3-23.
Interest income 3,058 3,119 (61)
Equity income 516 666 (150)
Other expense (824) (82) (742)
Income tax expense (1,617) (2,227) 610
Adjusted net income 99,545 76,611 22,934
16. Consolidated
Adjusted Statement of
Income
Q4-23
(In thousands of U.S. dollars)
16
(1) Please refer to Appendix A in Teekay Tankers Q4-23 Earnings Release for a description of Appendix A items.
(2) Net revenues is a non-GAAP financial measure. Please refer to the Teekay Tankers Q4-23 Earnings Release for a definition and reconciliation of this term.
Statement Item As Reported Appendix A
Items (1)
As Adjusted
Revenues 313,291 - 313,291
Voyage expenses (118,828) - (118,828)
Net revenues (2) 194,463 - 194,463
Vessel operating expenses (36,612) - (36,612)
Time-charter hire expenses (19,822) - (19,822)
Depreciation and amortization (24,627) - (24,627)
General and administrative expenses (10,849) - (10,849)
Gain on sale of vessel 10,360 (10,360) -
Income from operations 112,913 (10,360) 102,553
Interest expense (4,141) - (4,141)
Interest income 3,058 - 3,058
Equity income 516 - 516
Other income (expense) 965 (1,789) (824)
Income tax expense (1,617) - (1,617)
Net income 111,694 (12,149) 99,545
17. 17
Reconciliation of Non-
GAAP Financial
Measure – Free Cash
Flow (In thousands of U.S. dollars)
Three Months Ended Year Ended
December 31,
2023
December 31,
2023
(unaudited) (unaudited)
Net income - GAAP basis 111,694 513,671
Add:
Depreciation and amortization 24,627 97,551
Proportionate share of free cash flow from equity-accounted joint venture 1,031 5,490
Unrealized loss on derivative instruments — 3,709
Less:
Realized gain from early termination of interest rate swap — (3,215)
Gain on sale of assets (10,360) (10,360)
Equity income (516) (3,432)
Other (1,789) (1,789)
Dry-docking and capital expenditures (14,243) (26,428)
Free Cash Flow 110,444 575,197
18. Drydock & Off-hire
Schedule(1)(2)(3)
18
(1) Includes vessels scheduled for drydocking, ballast water treatment system installation, and an estimate of unscheduled off-hire.
(2) In the case that a vessel drydock & off-hire straddles between quarters, the drydock has been allocated to the quarter in which majority of drydock days occur.
(3) Vessel count only reflects the vessels with drydock and/or ballast water treatment system installation related off-hire.
Teekay Tankers December 31, 2023 (A) March 31, 2024 (E) June 30, 2024 (E) September 30, 2024 (E) December 31, 2024 (E) Total 2024 (E)
Segment
Vessels
Total
Off-hire Days
Vessels
Total
Off-hire Days
Vessels
Total
Off-hire Days
Vessels
Total
Off-hire Days
Vessels
Total
Off-hire Days
Vessels
Total
Off-hire Days
Spot Tanker 4 145 1 55 8 260 6 200 - 10 15 525
Fixed-Rate Tanker - - - - - - - - - - - -
Other - Unplanned Offhire - 15 - 32 - 37 - 37 - 36 - 142
4 160 1 87 8 297 6 237 - 46 15 667